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

From: Benjamin Kowarsch <benjk_at_mac.com>
Date: 08/13/01
Message-Id: <p04330107b79d4430bf6d@[10.0.1.2]>
>>  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).

>That's fine, but in either case, you have operators, right?  This isn't
>the scenario you imply when you say [direct quote]:

>>  "But operating a bunch of loosely connected WLANs is always
>>   going to be a lot cheaper than operating cellular infrastructure, so
>>   there will be a limit how far mobile operators can lower their tariffs to
>>   stay competitive."

>Which I took to mean: "WLANs with no particular central organization
>can take over the urban mobile arenas."

Make that into "WLANs with no particular central organisation can be 
used as an alternative last mile infrastructure by low cost telephony 
service providers and thereby have an impact on the 
telecommunications landscape, including tariffs" and will I agree 
with the interpretation.

There are two levels to this - one is the last mile infrastructure - 
the other are the services delivered over it.

The WLANs (representing a transport medium) can be loosely connected, 
meaning they are owned and run by different companies in different 
places for different reasons, most likely telephony is not a driver 
for them.

The services that are delivered over those WLANs are a different 
matter, they need not be under the control of the WLAN operators and 
can still be viable.

>cf. mobile phones, you're mostly talking about a "quasi-mobile" (seated)
>user base.

That is what I would think of as the most likely scenario, yes.

The point however is that there is a strong likelihood that the 
mobile service landscape as a whole will develop into a scalable 
spectrum of services. One one end of that scale you would have 
services with less or no mobility and higher bandwidth and/or lower 
cost, such as for example VoIP via FTTH, CATV/ADSL or WiFi etc. On 
the other end of that scale you have services with the highest 
mobility and availability with lower bandwidth and higher cost, such 
as for example Satellite mobile and 3G cellular.

Which service you choose will then depend on the situation. It is 
even imaginable that the infrastructure will ultimately do the 
scaling for you transparently. It is also imaginable that SDR will 
bring about compact and cost effective devices that can use a large 
range if not all of the services on that scale.

Sure, this isn't going to happen overnight - it will take some time. 
However, on the way there, companies will try to exploit emerging 
transports such as WLAN and also others. I agree that those who use 
existing business and marketing models have a good chance to fail, 
but others who adapt or invent new models are likely to be more 
successful. Some will come up with viable formulas and their models 
are destined to get a place on that above mentioned scale.

I also agree, that when the new players have succeeded in coming up 
with a viable model, the incumbents will rush in and claim their 
chunk of the new market segment.

My argument is therefore not to say some coffee shop startups are to 
take over the communications industry. My point is that promising 
technologies will be exploited and viable models that may come out of 
it stand a good chance to eventually make their way into the 
mainstream infrastructure, even if they looked ridiculous within a 
mainstream context when they started out in the first place.


There are a number of good reasons why VoIP over WLAN is a serious contender:

- WLANs are being rolled out, public and private.
- There is a large number of people with PDAs.
- WiFi interfaces for PDAs are likely to become a mainstream item.

All this without any telephony in mind !

However, I could imagine that some vendor of WLAN base stations, will 
eventually come up with a combo-base station that is both a WLAN base 
station and a cordless telephony base station in one box with the 
ability to switch between VoIP and POTS. Combine this with a 
telephony application for PDAs that uses the capabilities of such a 
combo base station and you might have a hot selling product that 
makes its way into many home and office environments.

Users of this combo box might still use their cordless phones for 
telephony and their PDAs and notebooks for LAN. But more and more PDA 
users might find it compelling enough to download the telephony 
application onto their PDA and use the PDA for telephony. Initially 
they would make phone calls from their PDA using VoIP to the combo 
box and POTS from the combo box into the public telephone network.

This would set the background of opportunity for companies to provide 
VoIP gateway services to PDA users, which could ignite the 
development of a new market segment. Initially, those PDA users would 
make telephone calls via VoIP from their PDA via the combo box to the 
VoIP gateway service provider and from there into the public 
telephone network. Initially this would all be within the limits of 
one's home or office WLAN. Important to note, with a combo box there 
would always be the ability to fall back to POTS.

Eventually those users who make calls from home and from their office 
via their PDAs via WLAN using VoIP gateway providers would start 
using the same service within public WLANs. Eventually, this could 
create enough momentum for phone makers to build devices that look 
more like mobile phones but use VoIP over WLAN, perhaps a combo user 
device that is both a cordless phone and a VoIP/WLAN phone.

People always say that cellular phones and PDAs will merge into one 
device that uses cellular infrastructure for connectivity and this is 
widely accepted as a likely scenario. While I believe that to be a 
valid scenario, I also see the possibility of a similar scenario 
where PDAs and cordless phones merge into one device that uses 
cordless infrastructure for connectivity.

In fact I could imagine a modular device that can be a PDA/cellular 
combo or a PDA/cordless combo depending on what RF module is 
inserted. Unified messaging service providers are likely to step in 
to provide follow-me services to deliver incoming calls transparently.

I am not saying that this is how it is going to happen nor that any 
of this will happen at all. However, this is one likely scenario that 
illustrates how public WLAN telephony could emerge without anybody 
actually intending to build a public WLAN telephony network.

Experience tells us that technology booms often emerge this way: 
unintentionally. Various conditions fall into place and something new 
that few people predicted comes out of it. BTW, i-mode is one such 
example.

I agree, it would be difficult to plan and successfully execute a 
telephony revolution based on VoIP over WLAN, at least if it is not a 
complementary service but the only intended revenue earner.

However, I believe that the conditions are almost there for VoIP over 
WLAN to emerge "by accident" as a viable addition to the 
communications landscape that will impact existing services and 
business models.

That is what I meant by "loosely connected".

kind regards
benjamin

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Received on Mon Aug 13 13:41:41 2001