Wireless Carriers - Which One is Best For Your Business?

Index

1. The Transition from Voice to Data
2. Early Data Systems
3. A New Ballgame
4. Wireless Packet Data Evolution
5. Determining Device and Data Requirements
6. Choosing the Best Data Network

Wireless Packet Data Network Evolution

Public networks, specifically those operated by the cellular carriers, recently gave birth to second generation wireless packet data in North America. Packet data networks allow the transmission of high speed data to and from devices that are always-connected to the network. This is exactly the same fundamental enabling technology that was created when we went from dial-up internet access to high-speed, always-on / always-connected internet access, now available at your home or business with cable modems, ADSL lines, etc.

Being always-on implies that a circuit-switched call does not need to be established and held-up for the duration of each data conversation. Going back to the dial-up modem comparison, when you wanted to check your email on your home PC, your modem would first have to dial a phone number and establish a connection with the internet. Once connected, a data conversation (consisting of a series of data transmissions) would occur. The phone call would remain in place for the entire data conversation. Once you finished checking your email, the phone call would be terminated. That is called a circuit-switched call. These circuit switched connections are very inefficient and slow, as they waste time while the connection is established, then hold up valuable resources for the entire duration of the call.

When your cable modem or ADSL line was installed, the difference was as dramatic as the advent of color TV. The modem was always connected, allowing incoming messages to come into your PC whenever they were sent. No manual connection needed to be established first. The cable modem had immediate access to the network but would only communicate with the network when needed. Instead of holding up the entire connection and tying up valuable resources, the cable modem is packet switched, using resources only for the actual duration of each data transmission.

In a packet switched medium, that email (or any other data) you send is broken into packets, with each packet containing the digital equivalent of an envelope and a letter. Each envelope has the address of where it is going, as well as its return address, in case it doesn't find its destination. The letter is the actual content of your data. In addition to the envelope and letter, each packet contains sophisticated error correction information to ensure reliability. This error correction automatically resends any data that didn't get to its destination due to poor wireless network coverage.

First Generation Packet Data Networks

Packet data networks have been available for several years, however these networks, which include CDPD, (Cellular Digital Packet Data) ARDIS and Mobitex, have been more regional than national networks. The lack of spectrum and other factors prevented these networks from building out true national coverage footprints. Even in core urban centers where these networks are in operation, they did not typically have sufficient in-building penetration to satisfy the needs of many field-centric organizations, such as courier and service companies.

The regional footprints of these early packet networks kept adoption rates below the critical mass needed to drive hardware and airtime costs to the level where the product could enter the mainstream. Contributing to the high cost was the lack of standard Internet access to the host side of the wireless connection. Instead, business users desiring to transmit data from an office application to the field would require an expensive dedicated private circuit, such as a frame relay connection. The alternative was to use a mobile modem in the office, which was cumbersome, with costly airtime charges. 

The lack of consistent spectrum and the absence of a global standard or even national standard kept the modem manufacturers from achieving reasonable economy of scale. CDPD, for example, had extensive coverage in certain geographic regions, whereas Mobitex and Ardis were more focused in others. These issues, combined with slower data speeds and a lack of integrated voice / data devices kept packet data dispatch from really taking hold.

Second Generation Packet Data Networks

A new era of wireless connectivity is upon us with the recent introduction of second generation packet networks. All of the issues preventing the growth of first generation networks are behind us. Wireless data has come into the mainstream, thanks to the roll-out of combined voice and packet data networks that are based on global standards.

In North America, Nextel and their Canadian equivalent, Clearnet (now Telus Mobility) were the first to launch second generation packet data service over a wide area cellular system. This took place less than 2 years ago, using iDEN technology created by Motorola. By the time the wrinkles were out, network-wide coverage was available and the ink dried on the price plans, the year 2001 was upon us. The iDEN system allows non-circuit switched (always-on) connectivity at speeds of 19.2 Kilobits per second.

In 2004, several other North American carriers launched competing packet services, some employing the the generation 2.5 GSM, called GPRS and others employing generation 2.5 CDMA, called 1XRTT. As we speak, these new networks are being deployed throughout North America.

All 3 new protocols offer integrated voice (cellular) and data services with always- on, always-connected high-speed packet data technology. All 3 protocols use global standards (arguably) and will offer national coverage footprints, factors which will lead to dramatically increased adoption rates.

Please refer to the chart below for a brief history review

Cellular Network Migration