Bridging International Gaps

ith the number of wireless subscribers overseas expected to triple in the next five years, wireless communications is indeed a global phenomenon, according to Tom Tesluk, Tesluk Consulting president.

"The greatest opportunities lie in the rest of the world," he said. "It's an extremely active market."

As worldwide deregulation opens new doors and stirs up interest in the global arena, carriers of all sizes have the opportunity to explore new markets and technology as well as the chance to maximize revenue, said Dan Hunt, Nortel Caribbean and Latin America president. But entering the international market is not always easy. 1998 was not a banner year for many companies simply because of international economic troubles. In addition, cultural differences always can be roadblocks to smooth international developments.

Recognizing these opportunities and challenges, PCIA added an international agenda to PCS '98. The show hosted 5,000 international delegates and featured PCS Latin America as well as Taiwan and Korean pavilions on the exhibit floor. The conference also featured sessions focusing on economic and global strategies, which offered carriers advice on how to cross domestic boundaries successfully.

Entering the Global Market Large carriers such as BellSouth and AirTouch already have proved that international endeavors can pay off. Although many smaller carriers also are interested in overseas opportunities, most hesitate about jumping into the global arena. If you are unsure how to approach the global market, simply start from the beginning. First, assess your organization's needs carefully, Tesluk said. This means deciding what role and responsibilities your current management team will have in the project. You also must determine the company's core competencies and create a time horizon of how long you expect to stay in the international market.

Next, you must evaluate carefully the markets in which you are interested. If you are starting from scratch, you should focus on one market at a time and pace yourself. One small failure can lead to a mountain of difficulties, said Victor Pavlenko, Formus Communications vice president of business development.

If you are unsure of what to expect, a consultant can help you move forward. However, as you evaluate various markets, it is important that you visit the country firsthand. Don't rely solely on consultants or junior staffers. You should meet with the U.S. Embassy staff and local regulators in person, Tesluk said.

Once you've pinpointed a market, it is time to create teams and build relationships within those markets. For example, you will need a local accountant, public relations firm and, most importantly, a good, well-respected local legal advisor. Although international veterans agreed that legal counsel is the critical ingredient in international endeavors, all of these relationships will be key to entering local markets. They will help you gain market knowledge and understand local politics, according to Hunt. Most importantly, they will bridge the cultural differences and help you understand cultural issues. This is an important role considering these cultural differences can have an impact on whether your venture succeeds or not.

"You could make big mistakes without knowing it," said Brad Dye, PageMart vice president of international networks.

Basic skills such as listening will go far in global markets. You don't want to go in as the ugly American who knows everything, Dye warned. So educate yourself by reading a few books and learning to speak their language. Even the Internet can be a good networking tool, Dye said. It will allow you to reach small countries and small companies in a cost-effective way. You also should meet with the U.S. Embassy staff as soon as possible to help you gather information. It can be a good resource and provide recommendations for some of your developing relationships.

Creating Alliances Once you've secured support services, begin the search for key strategic partnerships and alliances to help you fulfill your business plans. According to Tesluk, these relationships are essential for providing local distribution channels, managerial talent, political talent and capital. In return, your potential partners will be looking to you for access to technology and capital, operations know-how, global purchasing power and financial expertise. The key to success lies in building these joint ventures and partnerships, but Amy Stephan, Teleworx vice president, said carriers often take this process for granted. There is a true art to creating successful international alliances, she said.

"Be just as careful in selecting a business partner as a spouse," Dye agreed. "There are sharks in the water, and you need to be aware of that."

Establish a profile of an ideal partner early on. When you are ready to actually start talking to candidates, you already should know what characteristics you are looking for in a partner. For example, good potential candidates will have previous experience at joint ventures, a background in providing services, retail distribution expertise, a strong management team, a credible business development path, political connections and access to capital.

Also look for mutual trust, similar values, goals and financial strategies, compatible corporate cultures and philosophies, and senior executives with cross-cultural skills and prior success with strategic alliances, Pavlenko added.

As you evaluate your potential partner, Hunt said you also should make sure you have common objectives so that the companies are strategically aligned. To avoid conflicts down the road, clearly define the boundaries and know what role each company expects to have in the business from day one.

Partnering means a lot of talking, Tesluk said. You will educate each other, share philosophies on what is important and compare management philosophies.

"Look for chemistry or a complete lack thereof," he added.

Once you've found your partner, check it out from all angles. Go outside the closed circle and talk to former partners. Find out its history, Tesluk advised.

Global Success The final step is to put it all in writing. Despite common business sense, Tesluk said, many companies wait until after business already is operational to do this. Before business begins, you should have a variety of written documents such as a memorandum of understanding, which will serve as a blueprint for the final agreement, a statement of basic principles of what you're doing and how the equity will be divided.

Although you should let the lawyers run the negotiations, Tesluk said it is important that you maintain direct contact with your counterpart to reassure you are committed. Don't leave all communications to your project manager.

In the end, Nortel's Hunt said it all comes down to the basic principles of trust, commitment, experience and integrity. Remember that partnerships are the cornerstone to success; you need to focus on that and stay involved. Overall, the global market may seem daunting, but international veterans said it can be done successfully.

Vendors are continuing to find worldwide growth for wireless local loop (WLL) applications. Ed McAvoy, AML Communications executive vice president of marketing, said continuous R&D is critical to staying ahead of the growing WLL market. As a result of AML's R&D, the company is offering a B-CDMA amplifier specifically designed for European WLL infrastructure and basic telephony services. The company's latest high-power, compact amplifier is for the 3.5GHz range.

Spectrian also has introduced a high-power amplifier for the WLL market. The SC-5000W W-CDMA 2.37GHz to 2.4GHz amplifier features redundancy, two power configurations, several antenna configurations and an integrated platform.

Hughes Network Systems is expanding its WLL systems across the world, including a project in India that will be operational within the next year. The company also is focused on preparing for third generation and enhancing its WLL products to address these high-end needs.

Brian Bolliger, Lucent Technologies technical manager, agreed that as the demand for third generation increases, so will the demand for fixed-wireless applications. For now, the company is implementing its range of WLL products across the world in Peru, Poland, South Africa and Sweden.

STM Wireless integrates WLL and satellite technology into one solution. The turnkey system combines DAMA satellite technology and DECT WLL into one cell for a cost-effective solution (around $1,000 per subscriber). The product, currently under trials, will be available early next year. It will offer a low-power, low-density, bandwidth-efficient option for carriers regardless of spectrum choice.

World Access also is focusing on making WLL an economic alternative, especially for small- to mid-size applications in rural and suburban markets. President Joseph Forbes said the company has several projects under way as it continues deploying its WLL-2000 turnkey system in places such as Africa and Latin America.

Other vendors are recognizing the opportunities domestically. Traditionally, Tadiran Telecom Networks has focused on the international market for its WLL products, but once its merger with ECI is complete during first quarter 1999, the company will push WLL systems in the United States.

And SCC Communications announced a 911 data-management service specifically for carriers using fixed-wireless architectures. 911Connect WLL is designed as a flexible architecture that can accommodate any WLL technology.