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HUGHES, AT&T COLLABORATE ON AIREACH OFFICE

1998 may be the year for introductions of next-generation wireless office systems that allow for seamless handoffs between the office system and a carrier’s macrocellular system.

Hughes Network Systems Inc. and AT&T Wireless Services Inc. announced a strategic marketing agreement last week calling for AT&T Wireless to provide wireless airtime and service to customers with HNS supplying a complete hardware, software and performance management platform through its new AIReach Office system.

Ericsson Inc. is expected to announce this week at the Wireless ’98 show in Atlanta its intention to create a new wireless division that will sell these next-generation wireless office systems to carriers and expects to announce an agreement with a wireless carrier. Similar announcements from other manufacturers at the show may be forthcoming. Most likely the announcements would involve Time Division Multiple Access technology, which is most compatible with these types of systems, say experts.

Hughes’ AIReach system includes a network of low-power pico cells to provide wireless coverage throughout a building or campus area and integrates the wireless capabilities with most private branch exchange, Centrex or Key office telephone systems, said Hughes. The system will operate on either 800 MHz or 1900 MHz frequencies using the Interim Standard-136 protocol. Seamless handoff will occur between the AIReach Office system and the external wireless mobile network, allowing universal wireless service that includes voice and data communications.

Michael Radovich, senior product manager with AT&T Wireless, said the company plans to bundle airtime packages that would include flat-rate pricing for the office system and regular rate plans for mobile service. The company currently offers a wireless office service that does not allow customers to use their handsets away from the office.

“It really is a pre-emptive strike for AT&T Wireless since TDMA has the technical capability to do this that GSM and CDMA don’t have,” said Bob Egan, research director with the Gartner Group in Stamford, Conn. “It really sets the stage to substitute wireless for wireline.”

“It’s obviously a good idea to give carriers a way to lock in high-end business users. Everyone wants that segment,” said Jane Zweig, vice president with Herschel Shosteck Associates Ltd. in Wheaton, Md.

Egan predicts that announcements of wireless office systems using Global System for Mobile communications technology and Code Division Multiple Access technology are on the horizon, but the technical capability may be more problematic.

“It’s very difficult technically for CDMA. The focus for CDMA [carriers] is to get the networks out. The second half of 1998, they will work on getting in-building penetration, and in 1999 they’ll probably start looking at in-building solutions. AT&T has a running start.”

In related news, Hughes announced it is placing all of its product lines under the AIReach name to eliminate market confusion.

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