DUAL-MODE D-DAY

As cellular and Wi-Fi networks converge, network operators are calculating their optimum market and technology tactics.

The last 12 months have seen the first U.S. launches of converged service offerings based on dual-mode Wi-Fi/cellular handsets. Although only three major carriers have launched such services to date, their offerings provide substantial variety in terms of target markets, underlying technology and overall strategic goals.

Not surprisingly, the first carriers out of the gate are those that lack either nationwide wireless or nationwide wireline resources and who view converged offerings as a way of capturing business that otherwise might go to more diversified competitors. Among the primarily wireline carriers are Embarq, which targets commercial users with its Smart Connect Plus service, and Cincinnati Bell, which calls its converged residential offering Home Run. On the wireless carrier side, T-Mobile also targets residential users with its converged HotSpot@Home offering.

For end users, dual-mode offerings save costs by enabling cellular calls to be shifted to a Wi-Fi network linked to a broadband connection so that they do not eat up precious monthly wireless minutes. Dual-mode phones also may work in some areas where cellular coverage is poor — a problem some customers encounter in their own homes. Enhanced productivity also may be a hook, particularly for people who use their cell phones for business.