Wireless data warehousing: American Mobile Satellite nabs Ardis operation

American Mobile Satellite Corp. added a wireless data component to its cache last week when it purchased Motorola's Ardis two-way data messaging unit for $100 million incash and stock.

Ardis has the oldest wireless data network in operation, developed by Motorola and IBM in the 1980s and commercialized in 1990. The company operates a nationwide RF packet data network that provides mobile data offerings to vertical market segments such as trucking and field service (see figure).

The wireless data operation proved to no longer be a good fit for Motorola because of its manufacturing focus and its interests in areas that some deem competitive with Ardis.

"Motorola invests in technology-particularly networks-from a start-up standpoint, then spins them off," said Mike McGee, vice president of marketing and client services at Ardis. "We're getting to a point where we're competing with some of their customers, particularly in the two-way paging space."

American Mobile Satellite, on the other hand, gains a land-based data component with the acquisition.

"American Mobile Satellite really addresses the No. 1 issue we hear from our customers, which is how to expand our coverage," McGee said. Ardis had already begun bundling connectivity to the satellite network into a dual-mode service for the long-haul transport market segment, he added.

American Mobile Satellite could not be reached for comment.

One industry analyst wondered about the end-customer economics of seamless satellite and terrestrial service.

"On paper, they really complement each other in terms of coverage," said Ira Brodsky, president of Datacomm Research. "What would be ideal is if they could come up with one radio modem that can do both satellite and Ardis, but I'm afraid that's going to be a $2000-plus item."