As the broadband market begins to sizzle, carriers are shifting from the comfort of tried technologies to the speed of alternatives. But challenges abound.
So while Verizon Wireless announced its nationwide launch of CDMA2000 1x EV-DO, many carriers, including Verizon, are mulling future services that will require higher speed as data picks up momentum.
The rhetoric, claim analysts, will borrow from the past when it was not just about services, but technologies. Technologies like Flarion’s OFDM, IP Wirelesss’ technology, Wi-Fi service and 802.20 are providing speeds, cost attractions and a simplicity that other technologies may not match.
So intense will the battle become that it may alter carrier strategies. “If data adoption accelerates, carriers without broadband will build alliances with those that have,” remarked Martin Dunsby, vice president and chief operating officer at inCode Telecom.
The enterprise space, where businesses hanker for differentiating applications, is driving the movement. Going forward, analysts expect enterprises to demand speeds higher than current familiar protocols can offer.
The question of “how much is going to be enough bandwidth for enterprises” will unleash this battle for broadband supremacy, Dunsby said, adding he does not see one technology dominating the marketplace. Instead, Dunsby thinks carriers will pick from the potpourri of available protocols and use each where it best suits a carrier’s interest.
Nextel Communications is trialing Flarion’s OFDM, which offers greater speed than EV-DO. The carrier has yet to make any open commitments, but analysts believe that if it opts for the newer technology, it could trigger a momentum for alternative technologies. Nextel has taken leadership during the past few years with its business models, including the adoption of its walkie-talkie-like offering known as push-to-talk.
Part of the attraction for alternative protocols are the delays with W-CDMA, which might push companies like Cingular Wireless L.L.C. and AT&T Wireless Services Inc. to seek alternatives. Both companies already have launched EDGE, which likely gives them enough time to reap its benefits before executing another migration strategy.
However, while the move to UMTS service has been sometimes bumpy, alternative technologies have their own challenges, said Phil Marshall, senior analyst with the Yankee Group.
“There’s still a lot of work to be done with existing technologies,” said Marshall, adding that it depends on the level of support the new technologies get from service providers.
Other analysts hold the same view. “No one is na
