Wireless race lacks direction

From...

by Cathleen Moore

(IDG) -- Ready or not, here it comes. As businesses in the United States untangle the technology behind wireless data transmission, analysts are predicting a deluge of devices in the coming years that can deliver Web content to smaller form factors, wherever they may roam.

In spite of all the hype over wireless data access, only a handful of U.S. companies have taken the plunge to wireless-enable their Web sites. The reasons why have more to do with what's gone wrong in the wide world of wireless Web surfing than what's gone right.

No single standard

As opposed to Europe, which has sensibly backed the GSM (Global System for Mobile communications)standard, U.S. carriers use CDMA (Code Division Multiple Access), TDMA (Time Division Multiple Access), and GSM in their networks. Having different standards in use requires Web developers to duplicate their work to support each protocol and to support specific types of devices that use each protocol. Carriers and device manufacturers have, for the most part, agreed to support the WAP (Wireless Application Protocol), but WAP-compliant phones and pagers have yet to be seen in the market.

Slack user demand

Unlike Europe or Asia, where land lines are difficult to get and Internet access is expensive, the United States enjoys a huge base of Web-connected PCs and numerous low-cost ISPs. That spells lower demand for Web access via cell phones in the market and price sensitivity to per-minute cell phone charges (see,"Who are the players?" link below)

"In places whre telecom charges are really high, wireless has taken off simply because it is more available and less expensive than wireline [alternatives], "says Scott Weiss, an analyst at Hurwitz Group, in Framingham, Mass.

A niche market

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Even as packaged Web applications tout their support of wireless capabilities, boardroom executives in most companies have yet to come up with a compelling business case and ROI numbers for investing in a wireless infrastructure. As Weiss explains, "Wireless still hasn't really captured the imagination of the business community yet. A lot of companies are waiting for the killer app."

In spite of the murky waters, some companies, such as those in the financial services and travel industries, have found the customer service benefits are worth wading in for.

For example, banks and brokerages have deployed systems for servicing up real-time stock quotes and enabling transactions on cell phones. Getting an early start will help those businesses prepare for increased demand for wireless access in the years to come. The number of Web-enabled handsets is projected to surge in the next five years. The Yankee Group predicts that 60 percent of the U.S. population will be able to access data via their mobile phones by 2005.

"In certain vertical industries, wireless date[could] become a big asset to the raw business structure," says Knox Bricken, an analyst of wireless services at The Yankee Group, in Boston.

Cutting wires

Despite the wrangling over standards and development platforms, many companies have experimented with wireless applications, believing that an early exposure to the technology will translate into a competitive edge in customer service down the road. For most, the Palm handhelp PDA (personal digital assistant) has been the focus of early development because it has a large installed base of loyal users and uses a single standard, called Web Clipping. Wells Fargo Bank and Bank of America are both in the process of deploying services for the Palm device and have ambitious plans to expand their projects over time.

Wells Fargo's wireless system will, by year's end, give U.S. customers the ability to check balances, transfer funds, and get alerts and stock quotes via Web-enabled phones or Palm VII devices. Bank of America, also ramping up its customer-facing efforts, later this year will roll out a wireless service in select U.S. markets that will allow customers to conduct transactions on a variety of wireless devices. An earlier pilot program in California provided access to bank information via Palm VII devices and was popular with users, bank officials say.

Other industries forging ahead with wireless incluse the shipping and airline industries, in which uninterrupted access to account information and schedules spells happier customers.

In late September, United Parcel Service will roll out a program that allows customers to track packages, find drop-off locations, and learn the status of shipments via most Internet devices. Those services are currently offered on Palm VII devices; the new service will work woth one-and two-way pagers, WAP-enabled phones, Research in Motion pagers, and PDAs. And UPS will extend the service internationally early nex year.

"We want UPS functionality available on any device. Where you really impact the marketplace is when you can hit all handheld devices," says Robert Conner, director of interactive marketing at UPS, in Atlanta.

To gain an edge in customer service, United Airlines is currently testing a system that will send alerts regarding flight delays, gate information, or upgrade status to a customer's preferred device. The system is currently available via PCs and Palm devices, and the pilot program will extend the service to Web phones and other devices. United intends to push more functionality to wireless phones and devices, eventually allowing customers to change and book flights via a Web phone.

Getting professional help

For businesses new to wireless applications and leery of messing with a working infrastructure, a new breed of integrators are prepared to help them out. WASPs (wireless application service providers)as well as specialized software vendors and system integrators have emerged that can create and deploy wireless solutions on customer Web sites with minimal fuss. Some WASPs will even host a device-ready version fo a company's Web site on their own systems for a monthly subscription fee. In addition, a trusted technology integrator can manage carrier relations and customer sercice issues pertaining to device support.

When adding support for wireless devices, for example, both Bank of America and Wells Fargo leaned heavily on 724 Solutions, which translates the banks' content to device-friendly formats and serves it up in real time. Early adopter UPS agreed that a technology partner was essential, especially for nationwide deployments, and got its wireless system up and running with help from systems integrator Air2Web.

"There are over 300 carriers [in the United States]. Just working through that can be quite a maze. Working with an integrator, Air2Web, helped UPS to provide the content to our customers much sooner than what we could have done," UPS' Conner says.

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Who are the players
(InfoWorld.com)
Wireless data access via cell phone to skyrocket
(Computerworld)
Intel launches wireless Internet initiative
(IDG.net)
Wireless buys may fuel GSM
(InfoWorld.com)
Ericsson, Nokia score GSM deals in Asia
(IDG.net)
Nokia to supply second GPRS network to Taiwan
(IDG.net)

Hurwitz Group, Inc.

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