Ericsson’s BLIP localizes the Internet

(Telephony) Ericsson has launched the next phase of its Bluetooth offering with its Bluetooth™ Local Infotainment Point™ (BLIP) product. BLIP is a stand-alone platform that uses Bluetooth technology to let users get information via their mobile phones and personal digital assistant (PDA) devices.

Any user wishing to tap into BLIP-generated information will need to use a mobile device that contains an embedded Bluetooth chip. That is something of a problem right now, as the only devices that currently qualify are Palm Pilots and Compaq Ipaqs with a small add-on Bluetooth plug. However, Ericsson, citing a study published by Merrill Lynch last year, believes as many as 80% of mobile phones will be Bluetooth-enabled by 2003.

According to Ericsson, BLIP works via a system of information points that are scattered throughout a metro or trading area. Each information point has a signal radius of about 10 yards, and as many as 10 BLIP devices can operate within this radius without interference.

When users come upon one of these information points, they can access stored information via their Bluetooth-enabled mobile device. Ericsson envisions a number of applications for the technology. For instance, BLIP chips could be embedded in advertising panels, via which users could download a movie trailer or find out everything they wanted to know about a featured product.

Or, travelers could download information about their destination, get information on departure and arrivals, or rebook their trips via BLIP information points located at bus stations, train depots, and airports.

Users theoretically could get product specs, download discount coupons, and place orders at any retailer featuring a BLIP information point, without ever entering the establishment. If they do enter, they would be able to make their purchase using their BLIP-enabled mobile device.

While acknowledging that BLIP-enabled applications are forward-looking, Bryan Prohm, senior analyst for Gartner Dataquest, wonders if they are feasible.

“You have to have it everywhere, in order for this to be an advantageous product to have in your hand,” he explained. “The reality is that the market isn’t buying technology, it’s buying handsets and applications. If those services aren’t there, except for that one taxi stand in downtown Stockholm, [BLIP] isn’t going to happen.

Prohm said a BLIP rollout might be slow, considering the suggested pricing for both the information points and BLIP-enabled mobile phones. According to an Ericsson spokeswoman, each information point goes for 5000 Swedish crowns, or about $500. The spokeswoman added that Ericsson will introduce its first BLIP phone--a GPRS-based unit--this summer, with a cost that will be substantially less than the company’s R380 Palm Pilot phone that sells for $600.

“This suggests to me that Ericsson has kind of lost its way as far as trying to price products for the mass market,” Prohm suggested.

Even if BLIP doesn’t take off right away--or at all--it still might have some value, Prohm said.

“Ericsson … is looking for some sort of platform to dominate in and stand on. Ericsson is saying, ‘Look, we still make interesting products.’ It’s a way for them to demonstrate that they still have the ability in house to develop and bring to market some cutting-edge, pretty cool stuff, even if the market for it is going to be limited.”