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About the authors
Russell Shaw Russell Shaw is a specialist in mobile computing, telephony, networking and covers these fields regularly for numerous print and online publications. Russ writes the popular IP Telephony blog on ZDNet and contributes regularly to The Industry Standard blog as well. Author of seven books, Russ' latest book is Wireless Networking Made Easy.
John Yunker John Yunker is president of Byte Level Research. He closely tracks emerging wireless technologies and their impact on consumers and carriers alike. Over the years he has written a number of major reports on technologies such as Wi-Fi, WiMAX and cellular technologies.
About this blog
Unwired studies emerging wireless technologies and how they complement and conflict with one another. Technologies covered include: Wi-Fi, WiMAX, Ultra-Wideband, Zigbee, EV-DO, UMTS, HSDPA and whatever else comes along.
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July 15, 2004

NTT Taking Wi-Fi Baby Steps

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Posted by John Yunker

Japanese communications giant NTT DoCoMo just announced the coming release of the N900iL, a dual network 3G FOMA handset that will also operate on Wi-Fi networks.

ntt_wland_phone.jpg

However, this phone is clearly only designed for corporate users, preferably those who spend most of their time on campus. Why? Because the phones won't operate on public Wi-Fi networks (with the possible exception of an NTT network). A company needs to install a special server that will allow the phone user to switch between Wi-Fi calls and 3G calls, as well as browse the Internet. The features look pretty nifty, but anyone hoping to make a free call from a Starbucks is out of luck.

Now I am fully aware that mobile operators don't want to support devices that will cannibalize their voice business. Operators lives and die by "minutes of use" - the more minutes a subscriber uses, the more revenue for the operator. And yet minutes of use is such a short-sighted way to view a subscriber.

Consider wired VoIP. AT&T has embraced VoIP knowing full well that it will eat away at its long-distance business. AT&T wisely figures that if anyone is going to cannablize AT&T's business, it might as well be AT&T. I recently signed up to AT&T's CallVantage service and have been very pleased so far. The interesting thing in my mind is that now that long distance is unlimited as part of my plan, I find my minutes of use are a great deal higher than when I paid by the minute. We are quickly headed toward a flat-rate communications world whether mobile operators like it or not.

I'm not surprised to see mobile carriers resist supporting VoIP over Wi-Fi devices. In the US, however, I'm quite confident that even though most operators will resist supporting VoIP, one bold operator will push ahead and leave the rest behind. My prediction is that T-Mobile will be the first carrier to support VoIP (with limitations) followed by Verizon Wireless and Nextel

As for NTT DoCoMo. This new phone will make a great walkie talkie for corporate campuses, but will ultimately prove too limiting to users who actually go on a business trip or two. Motorola and Nokia will also be releasing phones that support Wi-Fi - perhaps they will find an operator willing to take more than a baby step.

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