3G Wireless Holds Opportunities, Threats for Wireline Operators

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 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 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, they’ll generally 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. 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 that plugs and outlets are no longer 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 up to 384K data rates, 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 work now with wireless operators – whether the wireless side of the same organization or by teaming with a 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.

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About the author: Keith Shank is director of strategic marketing and business development for the Network Operators Group of Ericsson Inc. He develops strategies for Ericsson’s wireless and wireline activities and for using strategic alliances and external technology provisioning to enhance the company’s business solutions. Shank joined Ericsson in 1987 and has served in a number of management positions, most recently as director of TDMA/AMPS product management. Before joining Ericsson, Shank spent 11 years as a senior engineer for Compucon Inc.