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ABOVE THE NOISE  

Killing time with a handheld

Cell phone vendors are taking on the handheld market with your boredom in mind

By Mark Jones
March 28, 2003
 

Wireless is a rare bright spot in a world that has too much unproductive time on its hands. Downtime is bad. Multitasking is good.

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We only have to consider airline travel to prove the point. You typically spend 30 minutes in a taxi, 20 minutes standing in line for check-in and security screening, and another 30 minutes waiting at the gate. That’s almost an hour and a half, and you’re not even in the air and safely offline.

So imagine the effect of being able to kill all that time by seamlessly accessing your corporate data and applications wirelessly without your notebook.

Some of these capabilities exist today. But when it comes to handheld devices, the trouble is that we still rely on legacy voice networks to carry our data.

Of course, that’s not surprising — the carrier industry’s main business is to sign up and keep subscribers. According to the Cellular Telecommunications & Internet Association (CTIA), the number of cell phone subscribers worldwide rose 10 percent to

141 million in 2002, generating revenue of $76.5 billion, a rise of 17 percent from 2001.

These are respectable figures. But in the long term, carriers will not be able to rely solely on traditional cell phone usage. New usage patterns will force carriers to shift more of their emphasis to high-speed wireless networks such as 802.11.

These usage patterns are driven primarily by your desire to kill time. You could wander aimlessly through an airport or complete sales call reports, schedule appointments, search the company database, and manage IT system performance in real time.

Some carriers are trying to get their heads around how to help us kill time. Nokia executives told me that a few carrier executives were snooping around the show floor at CTIA Wireless in New Orleans searching for ways to bring more data access to cell phone customers.

But the carriers have a dilemma. On the one hand, they want to tap into enterprise user demand for high-speed data by offering access to 802.11b (and later .11g). On the other hand, wireless hot spots threaten to undermine the revenues they enjoy from transmitting across CDMA and GSM networks.

The CTIA reports that data-only revenues from traditional cell phone networks is expected to exceed $1 billion this year. Carriers don’t easily part with that sort of money.

Ultimately, user demand and device preferences will force the issue. The great face-off between PDAs with voice capabilities and cell phones accessing enterprise data is shaping up.

As handheld platforms mature, developers are building richer applications beyond voice, PIM, and e-mail functionality. As a result, the next frontier is a race to create handheld devices that allow you to seamlessly roam between Wi-Fi and existing carrier networks. You get to choose the fastest and most cost-effective network for enterprise data.

In my estimation, cell phone handset makers have the upper hand. They have strong R&D muscle and a huge customer base that regularly acquires new devices, thanks to carrier subsidies. Even screen size is growing and being used more effectively with PDA-style pens. A cell phone has another advantage: the “American Express rule.” You never leave home without it.





 


 
Mark Jones is executive news editor at InfoWorld.
 

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