(keitai-l) The Gospel of 3G vs. non 3G [Was: 802.11 for voice]

From: Benjamin Kowarsch <benjk_at_mac.com>
Date: 08/12/01
Message-Id: <p04330106b79c51f7d676@[10.0.1.2]>
>so much for Benjamin Kowarsch's "oh, just let
>a buncha WLANs gel and we can kiss the
>  mobile/wireless operators goodbye."

Very funny you quote me saying something I never said - neither 
directly as quoted, nor indirectly as I suspect you may later claim 
to have meant.

The whole point is that WLAN telephony has a good chance of becoming 
a successful *coexisting* low cost alternative, not despite but 
*because* of it's "flaws".

Try to liberate yourself from a few assumptions we are all too 
willing to take for granted ...

Assumption #1: Any alternative wireless phone system will have to 
wipe out any other system or it can only be a total failure - 
coexistence of cheap with cheerful is impossible.

The examples of PHS in China shows that there can be coexistence 
between two different mobile telephony services. An very cheap system 
with limited mobility (PHS cannot be used out of town in China) 
coexists with a more expensive system with high mobility (cellular).

There is no reason why a VoIP over WLAN could not coexist with 
cellular as a low cost mobile option and thereby have an impact on 
cellular tariffs. The mobility trade-off is made up for by the lower 
cost. Depending on situation and user there would be uses for either 
service.

Assumption #2: Mobile telephony *must* have automatic hand-over 
between cells while a call is in progress or nobody will want to use 
it.

If you are sitting in a coffee shop and you have just ordered some 
coffee and cake, you know you will be there for a while - if at the 
same time, you can make a phone call there for a fraction of the cost 
of a call from your cell phone, then the chance is that you will make 
that cheap call although you know that it is going to cut off if you 
walk out there.

If the calls are cheap enough, people are easily coerced into giving 
up a bit of mobility. That's what happened with PHS in the early 
years. People knew that the chance of a dropped call was high if they 
were moving around while a call was in progress. Many people 
therefore gave up using PHS in favour of cellular, but many others 
did accept that flaw in return for cheaper calls.

Who says that a viable service needs to be hi tech ? As long as it 
has a significant cost advantage most people do not  mind flaws. Less 
than twenty years after the introduction of cheap but unstable and 
unreliable desktop computers [compared to what was standard then], 
Compaq, the No.1 in this field bought both DEC and Tandem, the No.1s 
in their respective field of high availability computers. Today, most 
people don't mind if computers crash - "Just reboot and hit the save 
button more often" is the accepted paradigm. "It's cheaper that way - 
that's all that matters", even IT professionals say.

Likewise, if WLAN VoIP telephony can offer a significant cost 
advantage not all but most people can be coerced into accepting "Just 
hit redial and don't move around to much" as the going paradigm.

Assumption #3: Any mobile telephony service *must* have full 
geographic coverage.

Once upon a time people were used to having to find a public phone 
box in order to be able to make a call while out of the house/office. 
And still today there is quite a number of people out there who use 
pagers or no mobile communications tools at all and for whatever 
reason rely on public phones.

If there are a sufficient number of WLANs available in coffee shops, 
bars, hotel lounges, office buildings then a WiFi device, used for 
email and organizer tasks combined with a VoIP telephony application 
can be seen as a kind of portable public phone. Again, if it is 
significantly cheaper to make a phone call from that WiFi-PDA phone, 
not everybody, but many people would choose WLAN VoIP and not use the 
more expensive cell phone, even if it means the extra inconvenience 
of first having to check whether there is coverage.

The important thing is to have base stations in places where people 
spend a little while anyway and are not just passing through.

Assumption #4: Any mobile telephony service can only be offered if 
the entire network is owned by one entity and administered as one 
entity.

On the Internet many companies offer services even though they do not 
control the last mile and their customers may use various different 
suppliers and methods to access these services each time they log on.

Likewise, a VoIP service company could offer services, without owning 
any WLAN base station themselves. One day, a customer may use their 
services from within an airport lounge where the WLAN is operated by 
the airline and comes as a free service to frequent flyers. Another 
day, that same customer may use the very same services from a hotel 
lounge where the WLAN is operated by the hotel and access charges are 
put on the hotel bill. Yet another day, that customer may use the 
services from a coffee shop where the coffee shop operates the WLAN 
and time limited access comes as a throw in with each consumption, 
i.e one cappuccino gives you 15 minutes WLAN access time.

Assumption #5: WLANs can only be used for telephony if their sole 
purpose is telephony.

In the aforementioned examples each WLAN operator has a different 
motive to roll-out and operate a WLAN. The airline wants to improve 
their frequent flyer program, the hotel wants to improve their hotel 
service and the coffee shop wants to encourage people to visit and 
consume more coffee. None of them needs to have a viable telephony 
business case to roll out and operate their WLAN - in fact they need 
not and will not have any intention for any telephony service at all.

Yet customers could use those WLANs to access VoIP services and the 
WLAN operators could become agents of the VoIP service company, like 
today news agents sell phone cards.

Assumption #6: VoIP cannot work because of technical limitations ...

a) bandwidth on the Internet

Who says that phone calls have to go all the way over the public 
Internet ? As long as the pipe from WLAN operators to the VoIP 
service's switching centre is big enough it doesn't matter. From the 
switching centre calls could be routed and delivered conventionally.

My buddy called me from London the other day and told me that he's 
got a calling card where he can call me here in Tokyo from London for 
about 4p (ca.6 yen) per minute. The quality of our 1 hour 20 mins 
call was excellent at all times. That calling card service may or may 
not use VoIP between switching centres, but the fact is that they use 
the incumbent telcos for the last mile on both ends. A VoIP service 
operator could offer the same kind of pricing using WLAN as a last 
mile either at the originating or the terminating end or both.

Please, anyone on this list, don't try to tell me if you could call 
your buddies or parents back home for 6 yen per minute from your PDA 
or notebook while having a cup of coffee at Doutor's you wouldn't 
feel like going there more often and use that service.

b) IP address unknown by callers

Who says that callers need to know the IP address of the phone they 
are calling ? Who says they even need to know that the called party 
is on VoIP ? As long as the VoIP service company makes this 
transparent to users it doesn't matter. There are various 
technologies around to accomplish this.

c) called party not always online

Who says that a called party has to be reachable all the time ? Like 
with cellular mobile telephony calls can be diverted to a voice mail 
box and messages can be retrieved either conventionally or delivered 
as email. Furthermore, calls could also be delivered to a 
conventional phone when a called party is offline.

d) WLAN power consumption

Who says that demand could not drive development of better power 
management ? When cellular phones started out, they were bulky 
battery draining bricks. Less than ten years later they are tiny and 
quite power efficient.


For anybody who believes that VoIP is not viable as a technology, 
just check out how many long distance services transparently use VoIP 
already for transit. Also, Cisco and Ericsson have a system intended 
for shopping malls which is based on VoIP with a GSM air interface. 
At present there is an IP/SS7 gateway somewhere down the line, but I 
happen to have met the Cisco product manager in San Jose and they see 
SS7 as an interim and firmly believe that eventually there will be 
all VoIP networks. So don't laugh just yet at VoIP, it's a serious 
contender.

With WLAN, all I can see is ..

- for anybody thinking out of the box there are quite a number of 
interesting possibilities
- infrastructure is going to be rolled out anyway without any VoIP 
aspirations by the builders

therefore it seems pretty obvious that there will be various 
companies using various business models to try and exploit this 
emerging infrastructure and not all but some of those are likely to 
come up with something viable and succeed.

Most interesting I find, however, the double standards with which 
technologies are appraised.

On one side I am being urged to believe that *no matter what pricing 
model*, people are going to watch TV on their mobiles simply because 
of mobility - "it is there all the time" - and despite a trade-off in 
quality.

On the other side, that same gospel also tries to convince me that 
public telephony would not be used over WLAN other than by a very few 
hi tech freaks even if it was to be *significantly cheaper* simply 
because of a trade-off in mobility.

In other words, people will always choose increased mobility even in 
situations where mobility is not required and where this means 
significantly higher and unnecessary cost.

I am sorry, but this defies both logic and experience.

So, if neither logic nor experience is behind the reasoning, I'm 
afraid to say the only thing left as a motive is 3G Bias ...

- If it's 3G it's good and will take off beyond anybody's imagination 
no matter what.
- If it's not 3G it's ridiculous and can't possibly work no matter what.

Of course everybody who believes in the gospel will vehemently deny 
this and rush to argue otherwise. However, no matter what they may 
say, there is this bias aftertaste.

Don't take my word for it - Try an experiment. Whenever there is an 
argument, just for fun, play the devil's advocat and try to determine 
to what extend the 3G related technology is found acceptable on the 
merits of being 3G while the non 3G technology is ridiculed on the 
grounds of not being 3G. I would be very surprised if a person 
capable of thinking out of the box would not find a significant level 
of bias in favour of 3G, being the latest gospel.

kind regards
benjamin

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Received on Sun Aug 12 23:12:49 2001