3G Wireless Holds Opportunities, Threats for WirelineOperators

Posted: 07/1999

3G Wireless Holds Opportunities, Threats for Wireline
Operators
By Keith Shank

Third-generation wireless technology (3G) is on its way, and wireline operators need to
be ready. If you’ve been thinking of 3G as simply high-speed wireless data, you’re going
to be unprepared for the coming communications evolution.

That’s because 3G is about more than just wireless data. It’s about access–access to
the communications network by any means, in any place, with the same services and features
no matter what kind of access technology is used. That access can be wireline, wireless or
Internet protocol (IP), but it must be transparent to users, who should be more aware of
the services they receive than how those services are being delivered.

Unfortunately for wireline carriers, access is increasingly wireless. People thrive on
mobility. They don’t like to be tied to one location. The explosion in wireless
telecommunications is proof of that. If people can get the same services via their
wireless phones as they get via their wireline phones at a comparable cost, generally
they’ll choose wireless. Already, we’re seeing consumers using their wireless phones as
their only phones. Even when it comes to data, people would prefer not to have to look for
a place to plug in to connect.

And it’s not just while on the move that wireless has an advantage. For instance,
Bluetooth technology, a growing global industry standard, facilitates a wireless link
between communicators and information appliances (computers) so plugs and outlets no
longer are an issue.

Where does this leave wireline operators? Wireline is part of the communications
backbone and will continue in that role for some time. For the time being, wireline
operators have a leading role in providing data access. Wireline still offers the best way
to access data at high speeds and carry data at a high capacity. When full 3G wireless
comes to fruition, though, even the data advantage will begin to slip. With data rates of
up to 384 kilobits per second (kbps), even at high-speed mobility and always-on IP access,
3G will shift most consumer-level data access to wireless.

To avoid becoming niche players, wireline operators will have to find a way to
integrate with wireless. To do this, they should start to work now with wireless
operators–whether the wireless side of the same organization or by teaming with a
separate wireless operator–to provide a package of combined service capabilities and
transparent coverage. Convergence is the key theme. Consumers want one-stop shopping for
communications services, getting wireline, wireless and data services in one place.
Operators need to work together to provide a common look and feel for all services,
features and customer support. Whether customers are using wireless, wireline or IP
telephony, they should enjoy the same activation process, the same kind of billing and the
same kinds of services and features. When customers use services and features, they should
have a similar experience, whether they’re accessing services using wireless, wireline or
IP. This seamless service makes customers feel comfortable, which means they’re more
likely to use the services.

The coming of 3G wireless should serve as more of a wake-up call than as a warning
siren for wireline operators. But now is the time for wireline operators to prepare
themselves and find a new role to play in the unwired future. The key is remembering that
it’s all about communication for end users, who care little about how that communication
gets to them, as long as they get it wherever they are.

Keith Shank is director of strategic marketing and business development for the Network Operators Group of Ericsson Inc., Richardson, Texas. He can be reached at [email protected]