|
An INTERTEC®/PRIMEDIA Publication MAR, 49
<br /> TELEPH ,,,- . A
<br /> www.internettelephony.com CARRIERS, CONVERGENCE &COMPETITION
<br /> ®ETWORKS
<br /> cn
<br /> w
<br /> J Metricom suits up for national play
<br /> W
<br /> High speeds and flat rates differentiate operator
<br /> NANCY GOHRING
<br /> M etricom is implementing some Cahner's In-Stat Group. Cellular digi- ny had to work with 1300 munici-
<br /> changes that should make its tal packet data (CDPD) offers lower palities to gain buildout rights in
<br /> attractive concept even more data speeds, and many CDPD opera- the 14 cities where it hopes to build
<br /> attractive—to both investors and tors charge based on the volume of by the second quarter. "It's a painful
<br /> potential customers. The mobile data that users transmit, making it process," Firth said.
<br /> wireless data service provider recent- difficult for users to predict expenses. Metricom recently changed its Car-
<br /> ly tweaked its focus and soon will Until operators deploy third gen- get customer from consumers to
<br /> implement a second generation tech- erasion networks, few can compete business people, trimming some dis-
<br /> nology. It's also seeking partners to with Metricom's offering. tribution costs and continuing a
<br /> support future growth plans. "Metricom has a window of rapid rate of customer acquisition.
<br /> Ricochet II, the new technology,
<br /> will offer 128 kb/s data rates at
<br /> mobile speeds of up to 70 miles per I__E2 i
<br /> hour. The current system, which .:;. Metrocell radios
<br /> • offers 28 kb/s rates, consists of pole treet 15R {'
<br /> top radios, fixed usually on street u oles ''
<br /> lamp poles, which can only listen or j P
<br /> talk. "They can't do both simultane-
<br /> ously,"ously,"said John Wernke,senior vice
<br /> president of marketing and sales. t
<br /> .4Network
<br /> The new system, which will still
<br /> �ntercon nectton,
<br /> use the unlicensed channels in the
<br /> 900 MHz frequency band,will listen Modem radio ��'fac�lrtyp�
<br /> and talk at the same time. In addi- Computer device
<br /> tion, radios will communicate with
<br /> other pole-top radios and a wireless
<br /> access point using the licensed wire- opportunity,"said Nagi Jaffery,wire- Attracting the current 27,000 cus-
<br /> less communications services spec- less analyst for Dataquest. If it can tomers with only three cities built is
<br /> trum—the 2.3 and 2.4 GHz fre- deploy widely before the 2003 time quite impressive, especially com-
<br /> quencies. "We added capacity by frame, it has a chance of being suc- pared with other data networks with
<br /> dual-banding them," Wernke said. cessful. In fact, Dataquest projects near national coverage. "Despite the
<br /> Ricochet II also will eliminate that Metricom will have 1.2 million fact that they have limited reach,
<br /> some latency issues on today's net- subscribers by 2003. they have been quite successful in
<br /> work. Currently, information hops Metricom offers service today attracting customers,"Jaffery said.
<br /> two to three times along pole tops only in San Francisco, Seattle and Metricom recently announced a
<br /> before it reaches the wireless access Washington, D.C. The company relationship with NationsBanc
<br /> point. Using the higher frequencies intends to change out the existing Montgomery Securities for assis-
<br /> allows most connections to be made slower speed systems there and tance in finding strategic partners,
<br /> with only one hop. build out in 50 cities within two mainly to obtain financing.
<br /> The new high data speeds, cou- years. That's no small feat, though. In February 1998, Paul Allen's
<br /> pled with a flat pricing scheme, sets In order to build out in a region, investment company, Vulcan
<br /> Metricom apart from competitors. Metricom must negotiate with town Ventures, invested $55.8 million in
<br /> Users pay$29.95 a month for unlim- councils for permission to hang Metricom for a 49.5% ownership.
<br /> • ited use without roaming charges. radios on utility poles. Backing by such a high-profile
<br /> "Speed and the bucket are Although Metricom has it easier investor should help convince pos-
<br /> Metricom's biggest advantage," said than traditional mobile operators sible suitors of Metricom's value,
<br /> Fran Firth, senior analyst for that must build towers, the compa- Firth said. ::
<br /> Reprinted with permission from the March 29, 1999 issue of Telephony.®
<br /> Copyright 1999, Intertec Publishing,A PRIMEDIA Company,Overland Park,KS.All rights reserved.
<br />
|