Bluetooth Not Falling Out

Despite some recent disappointments, the Bluetooth sky isn't falling. First, CeBit (www.cebit.de) show organizers tried to create the world's largest Bluetooth network, but the much-hyped demo failed. More recently, Microsoft, citing a lack of viable Bluetooth hardware and software (www.microsoft.com), announced that it was leaving the technology out of its new Windows XP operating system, opting to support 802.11x instead.

With the seemingly wide support from developers and manufacturers that Bluetooth has, many were surprised by Microsoft's decision. Several analysts and media outlets warned that the decision likely would slow the technology's once-strong momentum and widespread adoption.

But Skip Bryan, Ericsson Technology Licensing global area manager for the Americas market (www.ericsson.com), said Bluetooth adoption still is on track.

“We are without that support today, and it's unfortunate that our timing and their timing could not coincide a little closer,” he said. “But if you think about the largest categories of Bluetooth use in terms of volumes of products, it's going to be cell phones, PDAs and headsets.”

Joyce Putscher, Cahners InStat (www.instat.com) principal analyst, Bluetooth, said the decision isn't a big hit because most Bluetooth products won't be Windows-based.

“Bluetooth is not relegated only to computing,” she said. “It's not relegated to any one application; it's very far-reaching.

Major handset manufacturers are definitely still on the Bluetooth ship.

A Motorola (www.motorola.com) spokesperson said the vendor is talking to major medical and printing-industry players because it believes these industries will be among the first to adopt Bluetooth.

Ericsson is testing wireless payment functionality with its Bluetooth-enabled R520 handset. Ericsson and Eurocard will test the feasibility of implementing systems that enable purchases with Bluetooth phones.

Nokia (www.nokia.com) anticipates that Bluetooth will enable wireless entertainment applications such as chatting with nearby phones and multiplayer games that don't require a call to play.

“People are racing as fast as they can to mature their products,” Bryan said. “People are in that finalization phase, making sure they've interpreted the spec correctly and that we're going to arrive at full inter-operability. It's business as usual.”

And most analysts agree that the Bluetooth business is good.

“There's still a bright future for Bluetooth,” Putscher said, adding that her new forecast shows about 1 billion units shipped in 2005.