Living the Wireless Life

The wireless presence at the International Consumer Electronics Show in Las Vegas last month was a perfect reflection of the current state of the industry: a palpable presence that showed promise, but a little frustrating for the masses of users. At the same time, the annual gathering of consumer electronics vendors left no doubt that wireless connectivity has become a checklist item for household electronics of the future.

For the uninitiated, CES can be a bit overwhelming. With more than 140,000 people descending on multiple sites around America's adult playground and massive plasma displays (one model in stores allegedly by the end of the year measures 102 inches diagonally) seemingly everywhere, it takes a little work to get noticed. But increasingly, wireless carriers and vendors are making the event a critical stop on their trade show circuits.

Verizon Wireless chose the venue to announce its first 3G consumer data service, which will include gaming, video and broadband media service. Perhaps wanting to join in the over-hyped excitement that typically flows from CES, Verizon Wireless CEO Denny Strigl proclaimed the rollout “the biggest announcement from the wireless industry in 2005.”

The launch initially will include three EV-DO handsets: the LG VX8000 and one each from Samsung and UTStarcom/Audiovox that weren't quite ready for introduction at CES. Like the LG model, both likely will include video capability and a heavy emphasis on imaging in general, which is becoming almost obligatory for new wireless devices. Samsung, trying to cover the market from every angle and perhaps creating as much confusion among a widening array of devices, announced two dozen new models of handsets during CES, including the SPH-A800, which it claims is the first phone to come with a 2 megapixel camera. The model will be offered by Sprint, which itself made a minor splash in Las Vegas by announcing that it would offer over-the-air software upgrades.

The goal, according to the company, is to keep customers' mobile operating systems up to date without costing the carrier customer-service dollars.

That's becoming increasingly important as handsets morph into multi-use devices. In fact, if there's a wireless conclusion to be drawn from CES, it's that the line between wireless handsets and what are increasingly being referred to as “lifestyle devices” is becoming more difficult.

Case in point: one of several “concept phones” from Sanyo that drew plenty of gawking. The tri-folding devices (think tri-fold wallets) can morph into multiple functions, moving from Wi-Fi handset to traditional mobile handset to PDA to Internet access device to small-screen entertainment device depending on the way it's folded.

According to booth personnel, the phone cost around $30,000 to develop and likely won't be showing up in carrier showrooms anytime soon. Like concept cars at auto shows, the units were meant more to gauge reaction from retailers.

Likewise, Benq, a company better know for display technology, trotted out a heavy dose of marketing toward “the digital lifestyle.” While not introducing any handsets, the company's exhibit was a mélange of home devices such as a PDA phone that was meant to show how consumers no longer recognize a physical demarcation point between work and home life.

Following hard on a idea that had its origination in the wireline world of triple-play services (IP-based voice, data and video), carriers seem even more intent on wrapping wireless elements into their new converged services.

During his keynote address designed more to introduce IP video service, SBC Communications Chairman and CEO Ed Whitacre said the company would take full advantage of its Cingular ownership to integrate the wireless and wireline experience. For example, the company's initial push into wireline video will include the ability to record TV shows onto the hard drive of their set-top box.

“If you're running late, you can use your cell phone to tell your [digital video recorder] to record a show that might otherwise miss,” he said.

And while the company wasn't demonstrating the ability to do such functions yet, Dan York, vice president of programming for SBC, who was hired to develop content for the wireline product and forge relationships with Hollywood studios, clearly is thinking in the direction of converged services.

“The programming companies have been incredibly receptive to the idea,” he said. “There's plenty of content for wireless and there's a rush to create more. Look at Asia and Europe — I don't think a lack of content is going to be a problem.”

More in the here and now, Wi-Fi has become cemented its place among mainstream technologies by being integrated into virtually every household device. (Ironically, one of the biggest complaints from those at the show was the inability to use the Las Vegas Convention Center's in-house 802.11 network due to heavy traffic.)

But while there was plenty of buzz around a Wi-Fi-enabled refrigerator, retail dealers were also getting their first looks at 802.11 handsets. Vonage made its own aggressive move into the wireless market, unveiling a UTStarcom Wi-Fi handset that could be used anywhere the user can find a hot spot. From a network perspective, the F1000 handset itself acts as an analog telephone adapter in a phone in a Wi-Fi bridge. The device, which is planned to hit retail at under $100, will be compatible with 802.11a, b and g networks and will be provisioned to operate over the emerging 802.11n.

“You want to be able to do just a software download when something changes,” said Matt Deatrick, vice president of retail channel sales for Vonage. “The chip guys have gotten smart about that.”

The company plans to roll out up to 5000 units by the end of March with a full service launch sometime this summer. Pricing on the service will be the same as its traditional VoIP packages. Similar to its wireline service, the phone will have a 10-digit number attached to it and will register with Vonage's server when it locates a hot spot. In fact, the company expects most people to look at the device as a home phone that can be taken anywhere.

“We're focusing on giving the consumers more choice and this is just another option,” said Lou Holder, vice president of business development for the company.