Wireless opens up to IP: Cisco, Motorola alliance aims for faster deployment

Migrating wireless networks to full Internet protocol-based networks moved closer to reality at last week's Wireless '99 show. The buzz over IP started with an announcement that Motorola and Cisco Systems are together investing $1 billion during the next four to five years as part of an alliance aimed at delivering IP-based networks to the wireless industry.

"Cisco and Motorola have formed an alliance to create the convergence of the Internet and wireless," said Moe Grzelakowski, vice president and general manager of marketing for Motorola's network solutions sector.

The alliance will develop road maps for all wireless technologies on how to evolve to an IP platform. Many vendors today that tout IP-based networks in the wireless world essentially offer to build a connection from a circuit-switched wireless network to the IP-based Internet, Grzelakowski said. The Motorola/Cisco partnership, however, aims to create total IP-based wireless networks, some of which may completely eliminate switching centers.

Since its acquisition of Bay Networks, Nortel Networks also is throwing its weight behind IP networks, said John Roth, vice chairman and CEO of Nortel. The company will devote almost all of its research and development efforts this year-$1.3 billion-to IP. Developing the role that IP will play in wireless networks will be a major piece of that research, Roth said.

Nortel has dubbed its wireless IP concept Mobile Webtone, which aims to allow customers to assume they will have access to the Web regardless of their location. The idea comes from the basic assumption that most U.S. consumers expect to hear a dial tone when they pick up any phone.

Within five years Roth aims to reduce operators' cost of sending a megabit of information from 37 cents, which is typical today, to 4 cents. He expects to see operational commercial IP-based wireless systems in about two years.

Operators are expressing interest in using IP, especially because it will lower operating costs. Sprint PCS already has offered to do trials with Motorola and Cisco. "We can give them a great test bed," said Keith Paglusch, senior vice president of technical services and network operations for Sprint PCS. He has discussed IP networks with both Motorola and Nortel.

In addition to reducing costs, IP networks will help operators create new services faster and easier than they can with circuit-switched networks, which almost necessitate use of the intelligent network. The intelligent network "really flopped," Grzelakowski said. Developing and deploying new services using intelligent networks can take around a year, she added. Operators "see service after service popping up [on the Internet] without the hassle." Wireless operators hope migrating to IP will allow them to create services just as easily.

CINCINNATI BELL CREATES NEW UNITS Cincinnati Bell is developing two new business units-ZoomTown.com and KSM Consulting/Cincinnati Bell Network Solutions. ZoomTown will combine the company's ADSL-based on-line community and its ISP group. The latter will act as systems network integrator and consultant.

SPRINT PCS EXPANDS AFFILIATES Through a series of new affiliation agreements, Sprint PCS will introduce its wireless service in 16 new states. The company now has more than 45 million pops in 30 states.

CABLE MODEM MILESTONE Motorola will announce this week that it has shipped 500,000 cable modems worldwide and enough infrastructure to support 4 million cable modem users. The total includes more than 250,000 modems in the last 5-1/2 months.

SBC Communications continued filling out its national-local strategy last week, selecting Williams Communications as its primary long-distance carrier in a 20-year deal that calls for the regional Bell operating company to make a 10% equity investment in the company. That transaction, not to exceed $500 million, will occur in tandem with Williams' previously announced initial public offering.

"We will be a major provider of traffic on the Williams network, and we will have a voice in product development and design," an SBC spokesman said.

The ball is already rolling, said Gordon Martin, senior vice president of network services at Williams. Williams is "working on the technology, planning and support for SBC's national-local launch," he said.

Williams will sell SBC-branded products to customers out of region and, when SBC gets long-distance relief, in-region. Williams also can wholesale SBC products to other carriers, with SBC's approval. "SBC gets the final word on that, so our products are not sold to a main competitor of ours," the SBC spokesman said.

Investing in an existing network to connect its local networks, rather than building its own, is a wise choice, said David Cooperstein, senior analyst at Forrester Research. "There is plenty of capacity out there. It doesn't make sense for them to think about building network infrastructure when you have Qwest, Williams and Enron building infrastructure."

SBC's alliance with Williams comes shortly after the expiration of SBC's partnership with Sprint, which was awarded after passage of the Telecom Act of 1996 and ended late last year.