Subject: [NEXTEL-1] PTT Interoperability Progressing

From: [email-masked]
Date: Tue, 02 Sep 2003 12:58:28 -0400

PTT Interoperability Progressing

More service providers are starting to
offer push-to-talk services, but the real
revenue-generating capabilities may
have to wait for interoperability between
networks.

By Sue Marek

September 1, 2003

Verizon Wireless' launch of a push-to-talk walkie-talkie-like service last
month ushered in what could be the beginning of a new wave of competition
among U.S. wireless operators. Unlike the majority of the data apps that
carriers have launched that promise to add a few dollars to a subscriber's
monthly average revenue per user, push to talk is, at least initially, being
packaged as a high-end service, one that could significantly increase
carriers' subscriber revenues.

Nevertheless, PTT still has a few kinks to work out before it can become the
revenue-generating beast that wireless operators are hoping for. Perhaps the
biggest kink of all is interoperability and the inability of subscribers
from one PTT service to connect to other carriers' subscribers.

FULL POTENTIAL?

Like short messaging service, some proponents believe PTT must be
interoperable among different carrier networks for the service to reach its
full potential. Currently, Verizon customers who subscribe to the carrier's
PTT service can only connect with other Verizon subscribers who also have
the service and a PTT handset, which now consists of only the Motorola v60p
handset.

With other wireless carriers expected to follow Verizon's PTT launch in the
weeks and months ahead, interoperability is likely to become more critical
in the next few months. "We do believe interoperability is a top priority
for the industry to realize the full potential of PTT," says John Burns, CEO
of Sonim Technologies, an enabler of push-to-talk service for wireless
networks.

The company, along with fellow PTT equipment makers such as Ericsson, Nokia,
Siemens and others, has defined a specification, which is being submitted
for standardization for use on networks using the GSM evolution path.
Ericsson, Nokia and Siemens announced their efforts to define specifications
for direct-call push-to-talk service over GPRS last February at the GSM
World Congress in Cannes, France.

Although Burns says this standard initially was developed for GSM networks,
he believes the standardization process will encompass CDMA networks.
Verizon's PTT offering uses the carrier's CDMA2000 1XRTT network equipped
with Motorola PTT infrastructure gear from the company's recently acquired
Winphoria division. Although Verizon's PTT system is proprietary, Burns says
he believes the operator will at some point upgrade to a standards-based
solution, whether it uses Motorola equipment or another manufacturer. "The
inclination of all operators is that this service should be interoperable
between services and different handsets," Burns says.

NEXTEL'S STRATEGY

But not all carriers are convinced PTT interoperability is the future.
Nextel Communications, the originator of push-to-talk with its Direct
Connect service, believes it's too premature to discuss the possibilities of
interoperating with other carriers' PTT services. Unlike Verizon, which is
marketing its PTT service as an additional application for customers,
Nextel's Direct Connect functionality is the focus of its entire service
offering. "iDEN is designed from the bottom up to handle push to talk," says
Nextel spokeswoman Rebecca Gertsmark. "It is built into every layer of our
network." Gertsmark adds that while there are both pros and cons to
interoperability, it's too early for Nextel to say whether interoperability
is part of its future. "Our customers are used to a specific high level of
quality. It's not as easy as just delivering it and making it available.
It's more than just an application for Nextel."

For those that are intent on interoperability, exactly how important is
having standards-based equipment? Some say it isn't that big of a deal.
"Vendors will make standardized components that will work on AT&T and
Cingular's networks. Verizon and Sprint may have to buy devices produced at
lower scale because of standardization," says Adam Guy, senior analyst with
The Yankee Group. "It's not a huge deal."

FIRST MOVERS

Still, most agree PTT interoperability is the next step once the various
carrier PTT systems' are deployed. Although Verizon has a bit of a jumpstart
on the competition, analysts say that may not mean much in the long term. "I
don't know if first-mover advantage is a big deal. But in the period before
interoperability, the carrier with the bigger installed base will likely
have the easiest time attracting subscribers to the service," Guy says.

But don't expect PTT interoperability to be facilitated by a third-party
service firm similar to how SMS achieved interoperability in the United
States. Burns says the real-time nature of PTT makes that type of scenario
unappealing and unlikely. "Because this is a real-time service offering, the
importance of this is more crucial," Burns says.

Plus, like SMS, PTT proponents believe that eventually wireless customers
will want to connect with customers in other regions of the world, thus
another reason for carriers to implement standards-based systems. "I believe
this year we will see PTT take off in the U.S. and next year there will be
interoperability across continents," Burns says. And while he admits this is
a bold prediction, he says there is a concerted effort by wireless operators
to get this service up and running across various networks. "Soon the
extended market for PTT will become a reality," he says.

http://www.wirelessweek.com/index.asp?layout=article&articleid=CA319419&spacedesc=Departments&stt=000

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