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BBC News Online: Business


Saturday, 18 December, 1999, 02:13 GMT

The future is mobile


Nokia mobile phone

By BBC News Online's Kevin Anderson

Companies are rushing to unplug the internet, creating a wireless World Wide Web not only for mobile phones but also for a host of present and predicted devices.

IBM, Motorola, Nokia, Ericsson, Qualcomm and the telecommunications providers such as Sprint, AT&T, Bell Atlantic and Nextel are touting the wonders of a wireless web.

Mobile phone providers are developing this service to differentiate themselves in an increasingly competitive market, said Ben Linder, vice president of marketing for Phone.com.

Phone.com licenses its micro-browser to 26 mobile phone manufacturers around the world and sells its server software to telecoms providers.

Slow start

While the industry hype has reached a fever pitch, sales have yet to take off in the US.

"It's not even the early adopters phase," said Jonathan Haller, vice president of telecom business intelligence with Current Analysis, a technology consultancy based in Virginia. "It hasn't resonated with the public yet."

Right now, Mr Haller sees no compelling applications of wireless web access that make these web-enabled phones a "must-have".

And barriers still exist to widespread adoption of the technology in the US, including:

  • Slow 14.4 Kbps connection speeds
  • Small screens on phone handsets
  • Limited content

    Sprint PCS, which provides wireless web access, said that only about 40 sites were accessible through their mobile phone handsets at the time the service launched in September.

    "I think we're in the very early stages, just as the internet was four years ago," said Eddie Holds, a wireless market analyst with Current Analysis.

    "A lot of people are talking about. They are very excited, but once they use it, their typical reaction is, 'is that it?'" Mr Holds said.

    Explosive growth ahead

    Despite this slow start, Wall Street, wireless providers and industry analysts believe the wireless data will be the next area of explosive expansion in the internet economy.

    "I think we're going to see significant growth in wireless internet demand in the next 12 months," Mr Holds said.

    And "by 2001, it will start taking off with break-neck speeds," said Darryl Sterling, a wireless analyst with the Yankee Group.

    As digital technology brings about a convergence in communications, "wireless will play a very important part in that," Mr Sterling said.

    By 2002, industry watchers estimate that more than 100 million mobile phones with some kind of internet access, and by 2003, an estimated 1 billion mobile phones will be in use around the world.

    The promise of a huge market is driving a rapid rollout in services and content. Whereas there were about 40 sites in the US compatible with the web-enabled phones in September, Mr Linder of Phone.com estimates that there are closer to a thousand around the world.

    The Wireless Application Protocol has emerged as a content standard for wireless devices much in the way HTML is for the World Wide Web, Mr Linder said. The standard will make it easier for content providers to port their content to wireless devices.

    The personal network

    Wider adoption of wireless web services will also lead to a greater array of services.

    Mr Sterling envisages a personal network with universal messaging capability where all e-mail, voice, traffic and short-messaging service traffic will be available to a user through myriad of electronic devices.

    "Whether he is using his desktop computer, a laptop computer, a wireless web-enabled phone or a handheld computer, he will have access to his messages, his schedule and his files anywhere.

    "In that environment, wireless becomes a primary access mechanism," he said. "You can do what you want, do anything you want from where ever you want."

    And as the services develop, it will allow users to do many of the things they already do on the wired web.

    Mr Linder already trades stocks from his phone, and recently he was shopping for a book in a "brick and mortar store".

    He found the book for $30 in the store, but was able to access Amazon.com from his phone. In 30 seconds, he had found that Amazon were selling the book for $10 less. Because his credit card and shipping information were stored from previous buys, he was able to complete his purchase with his phone.

    Business to Business

    Mr Holds of Current Analysis also thinks that as with e-commerce in general, there will be a growing emphasis on business applications.

    He gives the example of someone in the building trade at a work site. With a web-enabled mobile phone, they might be able to order two tons of bricks to be delivered from their main office.

    The web application will be integrated with inventory management software and show the bricks removed from the inventory and allocated to the work site.

    "It is not trying to do something cute and new on the wireless phone that I never thought about doing. I'm already used to using that solution in the enterprise," he said.


    Related to this story:
    BBC deal with Vodafone (16 Dec 99 | Business)
    Wap - wireless window on the world (08 Dec 99 | Sci/Tech)
    Ericsson and Microsoft hook up (08 Dec 99 | Business)
    BT, Microsoft ally on wireless Internet (27 Oct 99 | The Company File)


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