PageMart Wireless Inc. launched a narrowband personal communications services network in Austin and San Antonio, offering a guaranteed-receipt alphanumeric message service called Scout.
This makes PageMart the first paging carrier since SkyTel Communications Inc. to operate a ReFLEX paging network and the first ever to offer commercial service using the ReFLEX 25 protocol. Other carriers offer guaranteed messaging services, also called 1.5-way paging, but resell airtime for it from SkyTel, which operates a ReFLEX 50-based two-way network. PageMart has agreements to resell SkyTel’s guaranteed messaging service, but chose not to do so.
“This is a terribly exciting event for us,” said John Beletic, PageMart’s chairman and chief executive officer. “The magnitude of this is enormous.”
The Scout Guaranteed Messaging Service uses Motorola Inc.’s ReFLEX 25 two-way paging technology, allowing the pager to notify the network of its location at all times-called registration-and to validate message receipt-called confirmation. If the network is unable to locate the pager, such as when the unit is turned off or out of range, the message is stored for up to 96 hours until that signal is received. Thus, the customer is virtually assured that he or she at some point will receive any message sent.
Glenayre Technologies Inc.’s Wireless Access Group will provide PageMart its AccessMate guaranteed messaging alphanumeric pager for the service. Glenayre also built the ReFLEX 25 system and is under contract to complete the system nationwide
According to PageMart, the local coverage area for the service is identical to its one-way paging coverage, encompassing 30 cities in a 462-square-mile area. “I think it’s probably obvious that the one-way network was built to meet the customers’ needs,” Beletic said. “The same arguments used to build the size of the one-way network can be used to (justify) the size of the two-way network.”
This is an important qualification. Back when SkyTel initiated its network, analysts faulted the carrier for launching NPCS services that lacked the same footprint as its one-way services. This omission was largely to blame for the company’s initial failures. Since then, SkyTel has solved its coverage issues and is now enjoying great success with those services.
“The introduction of a guaranteed messaging service over such a large local footprint is an important industry milestone,” said Ross Buckenham, PageMart president. “Forward-looking corporations need to know that their wireless network assures message delivery and accuracy without compromising coverage.
At this time, the service is available only in the Austin and San Antonio markets, but Beletic said he hopes to have the ReFLEX 25 network completed and providing service nationwide by the fourth quarter. To date, the company has spent $250 million on the network and plans to spend another $85 million to complete it, Beletic said. PageMart hopes to offer full interactive two-way, pager-to-pager messaging on the system once nationwide build out is complete.
Carriers such as MobileMedia Corp., AirTouch, TSR Wireless L.L.C. and Paging Network Inc. also have announced plans to build ReFLEX 25 networks.
“This is definitely a second-generation protocol,” Beletic said. “This is clearly the protocol of preference.”
Other NPCS networks currently operational include those of
PageNet and Conxus Communications Inc., which offer voice messaging based on InFLEXion technology. Conxus is in the process of adding ReFLEX 25 technology to its existing InFLEXion network.
“This is the tail that will eventually wag the dog,” Beletic said. “Our belief is that the rapid growth of alphanumeric paging will be served primarily by NPCS networks,” and that NPCS services will eventually outpace one-way.
Analysts back up this claim, pegging NPCS services as paging’s primary growth driver for the next five years. A Yankee Group study determined the paging market should double in size to 76.4 million by the end of 2002, attributing the lion’s share of this increase to NPCS services. The Strategis Group predicts there will be 8.4 million NPCS paging units in use by 2001 and that guaranteed messaging will make up 31 percent of all NPCS services. Frost & Sullivan expects NPCS revenues to reach about $2.5 billion by 2000 and up to $9 billion by 2004.
Beletic said PageMart had been testing ReFLEX 25 infrastructure for more than two years before launching it commercially. “We wanted to have it right before we rolled out,” Beletic said. He added that the company will extend the service to another two cities in the next two weeks and plans to keep announcing launches throughout the summer.
Despite the milestone achieved, PageMart has somewhat downplayed the launch, perhaps holding back the hype until its nationwide coverage is secure.
“Our logic is that this is primarily a buildout,” Beletic said. “The focus this year is very much on construction. Next year will be focused on selling.”
