Stalled in Second

HSCSD was touted as the solution to crawling data rates. Now, however, with obvious spectrum, billing and marketing challenges, the technology is stuck in low gear.

When high-speed-circuit-switched data (HSCSD) originally rolled out, its numbers were like the latest Italian sports car. With data rates up to 57.6 kb/s, GSM providers had an easy-to-implement, high-speed data solution. Despite its initial promise, though, HSCSD presents considerable obstacles for those providers that take on its challenge. With limited terminal availability and spectrum demands, HSCSD soon may fade from providers' minds in favor of GPRS and EDGE.

Too Good to Be True?
Long ago, data crawled across wireless connections at 9.6 kb/s. HSCSD's 14.4 kb/s rate was a significant hurdle in itself, but the added advantage was the capacity to weave together up to four time slots to reach a mach-speed of 57.6 kb/s. HSCSD "allows a direct connection from the switch to an IP router, and then the router itself connects to an IP network," explained Mike Walters, Nokia system marketing manager for North America.

In addition to quickening e-mail, fax, file-transfer and Web-browsing time, HSCSD applications can include mobile videophony, downloading of MP3 music files, mobile TV and streaming video. HSCSD was designed to narrow the gap between the capabilities of PCs and mobile phones.

"Virtually anything you could do at home, you could do on HSCSD," Walters said.

HSCSD's case gets more optimistic when the vendors pitch minimal upgrades and cost for deployment.

"Adding HSCSD to a GSM network is not a major ordeal and should be relatively inexpensive," Walters said.

Software upgrades are required for BTS, BSC and MSC systems, in addition to a hardware upgrade of the inter-working function of the MSC. With an IP connection, most providers will elect to build a firewall to guard the complete package.

Though HSCSD promises faster connections, providers should not develop any misconceptions about its applications.

"Some applications like surfing the Internet are probably not going to be any fun over HSCSD," Walters said. "What I (would) have on my phone is hardly comparable to my 21-inch monitor at home."

The information may get to the HSCSD user faster, but it won't have the fancy packaging. The technology better serves the exchange of important information for mobile business. Executives could send and receive large files while away from the office. Mobile salespeople could send orders back to their offices for immediate processing. Auto-insurance claims could be sent from the accident site.

The first hurdle HSCSD poses is its consumption of already-scarce spectrum.

"It was difficult for the providers to see HSCSD as a real business plan because it takes up so much of their limited spectrum," said Walters.

With one data transmission taking up to four timeslots, less space exists for actual calls. To accommodate this, vendors developed a system that would allocate time slots to data connections on an as-available basis. The system would grant all four slots if they were available and also take slots away if needed to complete other calls. This causes a constant flux in the data rate and creates a billing nightmare. Providers would have to decide whether to charge for time used per voice slot or one flat rate for the ability to use up to four slots.

"It's difficult for an operator to say 'I'm going to sell you this package, and you're going to have a 57.6 kb/s connection, but you're only going to get it part of the time,' "Walters said.

The Strategic Implications of Computing and the Internet upon the Wireless Industry: The Competitive Blur Through 2008, a study by Shosteck Associates, examines the wireless-data revolution and the technologies that will allow wireless to compete with personal computing. The study has a negative perception of HSCSD's potential with consumers: "Both the procedure and the products would be less than user friendly."

HSCSD trials revealed another fragile element of its capabilities: mobility.

"If you're going to use higher data-rate connectivity in a mobile environment, you're pretty much going to have to sit still," Walters warned.

Puttering in Europe & Asia
Outside of the United States, where GSM is the standard, some providers have implemented HSCSD despite its challenges. U.K. provider Orange launched its HSCSD service in August. A credit-card-size adapter runs a mobile phone on the Internet at 28.8 kb/s. In October, new Nokia phones will not require the adapter for HSCSD use. Orange also will deliver wireless video-phones just in time for Christmas.

Sonera has had a "cheerless experience" with HSCSD, according to the Shosteck report. HSCSD has been available from Sonera since June 1999. The Shosteck study describes HSCSD as an "orphan technology" because of the unavailability of terminals custom-made for it. Limitations on HSCSD will be a "critical factor until Nokia has their 6210 model in the market," related Niko Kettunen, Sonera product manager.

Promised last year to be available in 3Q00, the 6210 terminals will ship this month, according to Megan Matthews, Nokia spokesperson. Nokia's Card Phone 2.0 served in the mean time; available since January, it was the first HSCSD terminal on the market.

"The situation is bizarre. On the one hand, the infrastructure division of a company is delivering HSCSD product. On the other hand, the terminal division does not deliver product, thus eviscerating the value of the infrastructure," the Shosteck report read.

Vendors such as Nokia and Ericsson may have been reluctant to produce the terminals due to HSCSD's minimal demand. Nevertheless, the service is a success with Finnish business customers "who are delighted to have better speed, but for whom prices are not critical," Kettunen said.

Waiting for GPRS
Some GSM providers are ignoring HSCSD in favor of the potential of GPRS and EDGE. Kettunen explained that Sonera's HSCSD deployment experience has emphasized the need for realism in the provider's schedule for evolution toward GPRS and EDGE.

Only one American service provider has purchased HSCSD technology. SolCommunications owns Nokia's HSCSD solution, but does not offer it commercially, stated Walters. VoiceStream, the largest American GSM provider, is focused on GPRS development, according to Betsy Rogers, VoiceStream spokesperson. Rogers did note, though, that Voice Stream will continue to review HSCSD for possible future applications.

Those few providers who have HSCSD technology usually have a specific application or customer in mind. Orange has insurance companies and ambulance crews targeted for its forthcoming videophone. The industry majority, however, has declined HSCSD because" it's difficult for a carrier to see where they're going to make money," revealed Walters.

Overall then, HSCSD is not likely to be the high-speed solution for providers.

"If they're not doing it already, it ain't coming, Walters said. "We actually have had some U.S. customers talk about it, and when we start talking about the problems, it changes most of their minds," said Walters. However, "it's not a point of they're not going to do anything. GPRS is a primary interest of most of the carriers in the U.S. right now."