Mobile Data Magazine

37980MDM1_Cover(1) 2001-01-24 12.14 Sida 1

MOBILE DATA MAGAZINE

NO. 1 2001.

AR, AT, AU, BU,

BR, BE, CA, CL,

CO, DE, DK, FI,

FR, GB, IN, ID,

IE, IT, KR, CN,

LB, MX, NL, NO,

PE, PL, SG, SE, 1 TR, US, VE. MDM www.ericsson.se/mobitex FROMFROM ANAN INVESTORINVESTOR PERSPECTIVEPERSPECTIVE p.10 p.10

GUEST PROFILE: DELIVERING WHAT USERS WANT p.5

COOPERNET SET TO SHINE p.6

MOVING TO THE NEXT LEVEL p.14

LARGEST-EVER MOA MEETING p.22

GO SMART, GO RUGGED, GOBOOK p.23

LEARNING FROM ASIA p.26 37980MDM1_Content(2-3) 2001-01-24 13.32 Sida 2

2 CONTENTS...JANUARY 2001

5 GUEST PROFILE: INVESTING DAVID NEALE AND JACK BARSE The chairman and the executive director of IN MOBITEX the Mobitex Operators Association share their views on investment opportunities in wireless data and the new business models for Mobitex. 10 FROM AN INVESTOR PERSPECTIVE

Mobitex has significant strengths and offers many opportunities for investors. A profitable investment, however, requires carefully choosing applications and matching them to user expectations. With innovative devices and strong applications, Mobitex is attracting powerful players and fast approaching the tip- 6 ping point. BUSINESS NEWS · CooperNet set to shine · Redefining parking 14 MOVING TO · Communications for Melbourne commuters THE NEXT · An integrated strategy for Pirelli · Energy costs under control LEVEL Police increase property recoveries · Swedish Mobitex operator Mowic is taking the next Queensland network inaugurated · step in its development and preparing to invest in Cingular Wireless to excell · new market segments with significant potential. Mowic and its owners is willing to take risks and expects substantial paybacks.

22 16 LOGISTICS MARKET NEWS FOR THE NEW · Largest-ever MOA meeting ECONOMY · Go smart, Go rugged, GoBook · Watch out for Wave 2001 By helping a small Dutch courier to implement a · Awards for UK partners wireless solution, RAM Mobile Data Netherlands is · Maxon announces Palm V cradle moving up the value chain and becoming an ASP. In · World’s smallest packet-data modem the process, both the operator and the customer are · FieldService@RAM helping to create logistics for the new economy. · Mowic targets security sector 17 FUNDING A WIRELESS DATA PIONEER RIM (Research in Motion) is now reaping the rewards of its tremendously successful wireless handheld devices that are taking the North American market by storm and changing users’ lifestyles. 37980MDM1_Content(2-3) 2001-01-24 13.33 Sida 3

CONTENTS...JANUARY 2001 3

STRATEGY: DESTINY IS IN OUR HANDS 18 Mobitex continues to leverage its strengths as a narrowband packet data technology that is now opening up a mass market for interactive services. Ericsson is also enhancing the technology in a number of ways to prepare for millions of users.

OUTLOOK: LEARNING FROM ASIA 26 “Don’t wait for tomorrow’s technology to make the mobile Internet a success,” is the message from Swedish venture capital fund Startupfactory’s CEO Staffan Helgesson, who sees many lessons to be learned from Asia.

28 WANDA WAVE Harried as usual, Wanda gets a call from a young entrepreneur with a new mobile service concept.

Mobitex operators & associations featured in this issue: LINKS BellSouth Wireless Data, US: www.bellsouthwd.com Cingular Wireless, US: www.cingular.com Intec, Korea: www.intectelecom.co.kr Mowic, Sweden: www.mowic.se RAM Mobile Data, Netherlands: www.ram.nl RAM Mobile Data, Belgium: www.ram.be RAM Mobile Data, UK: www.ram.co.uk Ericsson Mobile Data Design AB United Wireless, Australia: www.uw.com.au S:t Sigfridsgatan 89 Companies and organizations featured in this issue: S-412 66 Gothenburg AOL, US: www.aol.com Sweden Austar, Australia: www.austar.com phone: +46-31-344 00 00, fax: +46-31-344 60 33 CNI, Korea: www.cni.co.kr Mobitex information: Dotwap, Australia: www.dotwap.com www.ericsson.com/mobitex, www.mobitex.org Itronix, US: www.itronix.com Mobitex e-mail addresses at Ericsson: Maxon UK: www.maxon.co.uk Marketing and sales [email protected] Mobitex Operators Associations: www.mobitex.org Customer support [email protected] Clyrcom, Australia: www.nomadicglobal.com Mobitex training center [email protected] Palm Inc, US: www.palmpilot.3com.com Ericsson links: Queensland ambulance, Australia: www.ambulance.qld.gov.au Ericsson: www.ericsson.com Research In Motion RIM, Canada: www.rim.net Ericsson’s website for Network Operators: Schlumberger, France: www.schlumberger.com www.ericsson.com/wireless Startupfactory, Sweden: www.startupfactory.com Ericsson Mobitex: www.ericsson.com/mobitex Tardis transcommunications, UK: www.tardismobile.com 37980MDM1_Business(4-9) 2001-01-23 15.35 Sida 4

4 PUBLISHERS’S NOTE MOBITEX HAS LEGS!

Mobitex has life! With all due respect to MOA chairman works provide superb coverage. While dealers are waiting David Neale, the conclusion in his address to the largest- for WAP and GPRS phones, consumers are buying wire- ever MOA meeting held recently in Gothenburg is looking less handhelds for Mobitex by the thousands each week, more and more like an understatement for every day that and the world’s largest media company and Internet serv- passes. ice provider is making its services available on Mobitex. Would you bet on Mobitex? What kind of return do Can you spell opportunity? you expect on an investment? What is the economic life- For people who thought that Mobitex was old and for time of a Mobitex network? What is the product life cycle others who are still waiting for the savior to come, the for a wireless PDA? What is the asset value of a mobile world must be very confusing. According to the experts, Internet service? How much are consumers willing to pay it wasn’t supposed to happen like this. Meanwhile, con- for wireless data? sumers are voting with their feet, and as far as we can see, We don’t pretend to be able to answer all of these they’re running for Mobitex devices. questions. In this issue of Mobile Data Magazine, howev- So, does Mobitex have life? It certainly does. In fact, er, we are taking an unusual approach. Instead of focus- in today’s market and at the dawning of the mobile ing on a market or an application segment for our theme, Internet age, Mobitex has almost everything going for it. we are trying to look at Mobitex from an investor’s per- Mobitex has legs. Now the only question is: When are you spective and to show that Mobitex technology provides going to start running? profitable investment opportunities for many parties. You will find some surprising conclusions in our investigation of how to profit from Mobitex. Today, everyone seems to be talking about the mobile Internet and 3G mobile systems. Ushering in this new age will be GPRS and WAP, portrayed by proponents as a marriage made in heaven. Meanwhile, as Ericsson senior vice president Torbjörn Nilsson so rightly observes, the mobile Internet is here today. It’s an everyday thing, and in large parts of the world, it’s running on Mobitex. Smart people seize the day by taking advantage of existing technology and running with it. Look at what’s out there. Packet data is already here, and Mobitex net- Pontus Lindqvist

MDM NO.1 2001 / POSTAL ADDRESS: Ericsson Mobile Data Design AB S:t Sigfridsgatan 89, SE-412 66 Gothenburg, Sweden, e-mail [email protected], Internet www.ericsson.se/mobitex. PUBLISHERS: Pontus Lindqvist. EDITOR: Ingrid Wallgren, tel: +46 31 344 64 40, e-mail [email protected]. CONTRIBUTOR AND EDITORIAL CONSULTANTS: Alan Sheats, Eva Jonsson-Wallin, Bugli Company AB Stockholm, Sweden, e-mail [email protected]. LAYOUT: Peter Menke, Citat Solutions/Annika Rehn, Citat Media Production. WEB LAYOUT: Henrik Kool. PRINTED BY: Alfredssons Offset AB, Bollebygd, Sweden. PRE PRESS & REPRINTS: Citat Media Production AB, Gothenburg, Sweden, e-mail [email protected]. MOBILE DATA MAGAZINE: is published under Swedish press law by Ericsson Mobile Data Design AB in cooperation with The Bugli Company. The opinions expressed in Mobile Data Magazine are not necessarily those of Ericsson Mobile Data Design AB. Mobile Data Magazine is distributed to the international telecommunications community in more than 50 countries. 37980MDM1_Business(4-9) 2001-01-23 17.45 Sida 5

GUEST PROFILE 5

At the MOA meeting in Gothenburg, Sweden, Mobile Data Magazine took the opportunity to talk to MOA chairman David Neale and executive director Jack Barse about the future prospects for Mobitex and its attractiveness for investors.

s Mobitex an attractive investment JB: What is particularly interesting today is levels that will be successful. As the tide rises, I in today’s market? that we see companies like CNI and its partners the Mobitex boat is extremely well positioned DN: If we look at it in terms of the survivabili- in Korea and Tardis in the UK re-investing in and can take advantage of it faster. In a market ty of Mobitex technology, I would say that the existing networks. There is no capital to do the where deliverables and demonstrable proof of prospects are very good. The irony of today’s same old thing. Instead they are investing in concept are key, Mobitex remains the technol- situation is that everyone wants to be in packet new business models. ogy to beat. data, which is where Mobitex has been for years, JB: Profitable Mobitex networks will have one so we are now experiencing new interest in What are these new business models? leading application that will quickly make them Mobitex as an investment vehicle. RIM, for DN: There are basically two new models. In one positive cash flow. One recent example of such an example, is very well-funded. Nettech, which case, system integrators are becoming applica- investment is CooperNet in Brazil, where wire- recently changed its name to Broadbeam and tion service providers. Broadbeam is an excel- less EFT/POS (Electronic Funds Transfer/Point- attracted USD 30 million in funding, is another lent example of that model in which Nettech’s of-Sale) will be the killer application. Coopernet example of a company working with Mobitex traditional business as a system integrator is has one of the most solid business cases for that has shown financial strength. being taken to another level. In the other case, Mobitex that I have ever seen. JB: The mobile Internet obviously represents a resellers are becoming virtual network opera- tremendous opportunity for Mobitex. The buzz tors. AOL is the best example of that, but it’s a What about competition from other and noise in the market is mostly being created trend that’s happening everywhere. technologies? by the cellular operators and the cellular infra- JB: I believe that this shows that the Mobitex DN: Other technologies are coming, but structure companies. The problem is that the market is moving to another level of maturity. deployment will be slower than some people expectations they’re setting exceed their Historically, many operators had very narrowly expect. Networks will be built-out for GPRS ability to deliver on their promises. Add to focused vertical applications with a low number and 3G, but the operators will still be the that the fact that those companies are funda- of users and high ARPU (average revenue per SEND/END voice guys. Whatever technolo- mentally voice companies and are not inclined user). That was followed by what I call a “field gy, applications remain the key. Mobitex has to become data experts. On the other hand, of dreams” model in which each operator had much more life than people are aware of. We Mobitex is a proven, cost-effective and reliable one business unit for each of a number of broad- have fantastic devices, incredibly good appli- technology with coverage, terminals and appli- ly defined market segments. We are moving cations and strong developer support. I would cations available now. We’re working hard to away from that now and going towards a next- estimate a strong market advantage for show customers why we say that Mobitex can generation business plan in which operators are Mobitex extending over at least the next three deliver what others only promise. We’ve got a moving up the value chain and partnering with to four years. lot going for us. other companies that have strong brands and JB: We think it’s going to take a pretty long existing customer relationships. time before other technologies can offer the Are Mobitex networks profitable? same sorts of services that are available in DN: New networks are obviously not profitable What is a profitable Mobitex investment in Mobitex today; and by then we’ll be on our yet, but they will be much sooner than 3G net- today’s market? own next generation. Today, Mobitex has the works. Many established networks, however, are DN: There are any number of profitable largest community of users, the strongest now cash-flow positive, which means that they investments in today’s market, because interest community of companies, and is growing are reporting an operating profit and paying in wireless data continues to accelerate. There faster than anything else. Users know who can down the investment in the network. are many companies working at many different deliver – and it’s Mobitex. 37980MDM1_Business(4-9) 2001-01-23 17.46 Sida 6

A new Mobitex operator is moving • There is currently no provider quickly to open up a vast market of similar wireless data services in Brazil. Employing a somewhat in Brazil. unusual business structure and • Unlike many other markets offering services precisely matched with well-developed telephone MOBILE to local requirements, CooperNet networks, wireless data services is setting its sights high and plan- in Brazil will be cost-competitive ning for rapid growth. with fixed services. Cooperativa Nacional de • The Mobitex network is expec- BUSINESS Transmissão de Dados Ltd ted to be more reliable than the (CooperNet) has been granted existing landline network. NEWS concessions by the Brazilian gov- • There is significant unsatisfied ernment to provide wireless data demand for data communications services on the 900 MHz band in services in the targeted cities. the cities of Sao Paulo, Rio de • Due to the high efficiency of Wireless POS (point-of-sale) Janeiro and Curitiba. Together, the Mobitex network, the initial and EFT (electronic funds transfer) these cities and the states for capital expenditure required is applications are the most impor- which they are the capitals modest relative to the market tant in CooperNet’s initial busi- account for nearly 60 percent of coverage that can be obtained in ness plan. UNT has concluded Brazil’s economic output. Sao Paulo and Rio de Janeiro. negotiations with the Commercial As Coopernet notes in its Association of Sao Paulo, the most business plan, this service area has powerful and important associa- some unique prerequisites. COOPERATIVE tion of its kind in Brazil, with • Sao Paulo and Rio de Janeiro are BUSINESS more than 25,000 member organ- among the world’s largest cities, izations, including the country’s with populations of 15 million ORGANIZATION 500 largest companies. and 10 million, respectively. For CooperNet and its backers, “Our expectations over the this constitutes a compelling next five years are that we will business case. To realize this achieve 25 percent market pene- potential, however, CooperNet is tration for ATMs and nearly 50 employing a somewhat unusual percent for POS applications,” COOPERNET business structure that will allow says Simão Brayer, President of the new Mobitex operator to CooperNet, adding that this move quickly and to deploy ser- represents a potential of more SET TO vices efficiently. than 350,000 subscribers. CooperNet is organized as a Because the network will cooperative, in which the engi- cover densely populated urban neering company Universal areas, interactive applications will Network Technology S/A (UNT) undoubtedly play an important will act as the operating company role in building CooperNet’s busi- SHINE and cooperative members will ness. The new operator expects to deploy services. UNT, which is certify devices from Palm and an associated company formed by RIM for use on its network and is the same group of investors actively seeking partnerships with behind CooperNet, will build companies that will provide inter- and operate the Mobitex net- active services and content. work, which when completed in the second half of 2001 will com- BRILLIANT prise 55 base stations in the three cities. The cooperative members, BUSINESS PLAN on the other hand, will deploy “We believe that CooperNet has services and applications and pay a brilliant business plan and that subscriber fees. the new Brazilian operator has According to this organiza- put an organization in place with tional structure, the cooperative the necessary expertise to execute members will be responsible for it,” says Jack Barse, executive both applications and sub- director of the Mobitex scribers. The new operator has Operators Association. “We wel- carefully targeted end users and come them to the Mobitex com- applications, however, and has munity and are confident that already signed a number of they will achieve success in their important agreements. targeted market.” 37980MDM1_Business(4-9) 2001-01-23 17.47 Sida 7

BUSINESS NEWS 7

REDEFINING WIRELESS COMMUNICATIONS FOR FORPARKING THE INFORMATION MELBOURNE AGE COMMUTERS

Maxon, a UK-based manufactur- and restaurants and print addi- The Intelligent Network from er of Mobitex modems, is helping tional useful information on the Australian Mobitex operator Schlumberger to redefine park- parking ticket. United Wireless is providing the ing for the information age. The integrated Stelnet wireless data link for the recent- According to the terms of a Navigator is the key to the new ly commission Positions of recent order, Maxon will supply parking terminal. A simple con- Trains Systems (POTS) in 5,000 of its DM200 radio trol wheel, mounted at the same Melbourne. POTS will enable modem for installation in level as the display, enables the Bayside Trains operational and Schlumberger’s Stelnet and other user to select menu items and to maintenance staff to monitor and parking meter systems in click for the next page of infor- manage the network of trains, Belgium, the Netherlands and mation, which can be displayed resulting in an increased level of Great Britain. First out is the in English, French, Dutch or efficiency, improved train sched- Belgian city of Gent. German. When not being used uling and enhanced customer “Gent is a forward-looking to display information, the ter- service to rail commuters in the city ready to implement new minal will display parking tar- Melbourne area. ideas and new technology to bet- iffs and instructions on how to The system captures real- ter serve our residents and the use Stelnet. time train location and logistics “The United Wireless many visitors to the city,” says Like the Stelio parking ter- data from within the suburban Network will ensure that Bayside Ward de Bruyker for the City of minals, Stelnet is connected to a electrified rail network and trans- Trains has fast and easy access to Gent. “Schlumberger has helped central server via Maxon’s modem mits it via the Mobitex network to the operational information and us to solve the problem of put- and the Mobitex network operat- a central database for processing data they need,” says United ting useful information at the ed by KPN RAM Mobile Data and distribution. Some 650 elec- Wireless CEO Peter Clark. “We fingertips of the most common Belgium. In addition to provid- tronic rail tags, which have been are delighted to be able to con- visitor to Gent, the motorist, ing a wireless communications mounted on sleepers on tracks tribute to the enhanced services thus helping them to make bet- link for downloading information throughout Melbourne’s network that will be delivered to ter use of our facilities and to updates to the terminal, Mobitex of 15 metropolitan lines, detect Melbourne’s rail passengers as a make their visit a more enjoyable also allows parking operators to trains as they pass. More than result of the new Position of experience.” dramatically reduce costs, since 70,000 real-time reports are sent Trains system.” The new Stelnet system each terminal generates detailed to the POTS server via the United builds on Schlumberger’s warnings and reports to the serv- Wireless network each day. www.uw.com.au proven Stelio parking terminal er where a central control pro- by integrating a Navigation gram notifies service engineers, Information Server with a com- thus optimizing maintenance. pletely intuitive user interface and a color display. This pro- www.maxon.co.uk vides an ideal public access www.schlumberger.com point for accessing a wide range of local information. The Stelnet parking terminal can display maps and routes to shopping areas, tourist attrac- tions, exhibitions and hotels, advertising for local theaters 37980MDM1_Business(4-9) 2001-01-24 12.08 Sida 8

8 BUSINESS NEWS

AN INTEGRATED STRATEGY FOR PIRELLI

Tire supplier Pirelli had a serious maintained a workforce of 200 problem in the UK. Its distribu- mobile tire fitters dispatched tion and service unit was suffering from multiple locations, who per- substantial losses due to inefficient formed thousands of tire fitting operation. The service unit needed jobs each year. to be re-engineered to increase “This was a business unit efficiency and to bring it more in drinking at the Last Chance line with market requirements, Saloon,” recalls Andrew Fitton, which included a contract service chief executive officer of Tardis model. Otherwise, the unit would Transcommunications. “The con- have to be shut down. sequences of not re-engineering Pirelli’s customers consist and streamlining this operation primarily of transport companies would have been devastating and and other distributors who oper- undoubtedly resulted in Pirelli ate large fleets of vehicles. being eliminated from the UK Although maintenance, includ- market over time.” center, the mobile tire fitters are “TruckWeb allowed Pirelli ing changing tires as necessary, is The solution that Pirelli cre- dispatched to provide roadside to significantly streamline opera- planned and scheduled at regular ated together with Tardis is called service, while at the same time tions,” says Andrew Fitton. “With intervals, most of Pirelli’s cus- TruckWeb and involved creating collecting fleet service inspection the new system, 80 service depots tomers require roadside service. a new centralized headquarters data. Each tire fitter’s vehicle is could be closed, and Pirelli’s fleet To serve these customers, Pirelli for the whole of UK. From this now equipped with a Radix could be reduced by 10 percent. FW200 computer, a docking cra- Today, Pirelli’s tire fitters provide dle with a radio modem and an more and improved service in less Costs: Savings: in-vehicle color printer. The vans time, and the unit as a whole is Hardware USD - 1 000 000 80 depots closed with stocks, are tracked in real now profitable.” Software USD - 400 000 10% fleet reduction time and linked via the RAM Annual running USD - 120 000 10% fleet reduction Mobile Data Network to an www.ram.co.uk, www.tardismobile.com Business is now profitable and service to customer improved. AS400 stock system back at head office.

KEEPING ENERGY COSTS UNDER CONTROL Swedish Mobitex operator Mowic project, the electricity meters of schedule, the contract will run for becoming a fiercely competitive has entered a new strategic meter- approximately 16,000 residential seven years. segment. The fact that Mowic reading project together with customers will be read automatical- “Although this is not the was selected over competing tech- Schlumberger Technologies and ly. The meter data will be transmit- first time Mowic’s network has nologies confirms the commercial Gothenburg Energy in the city of ted over power lines to a concentra- been used for meter readings, it is viability of our concept and shows Gothenburg. The project involves tor and then forwarded over the the first time it has been used for that Mobitex is the best and the wireless Mobitex communication Mobitex network to Schlumberger residential electricity customers,” most cost-effective solution for within an AMR (automatic meter and then to Gothenburg Energy. notes Björn Sabel, marketing secure wireless communication in reading) solution for electricity Once the 16,000 customers are manager at Mowic. “With the real time.” and district heating. connected, which will take about continued deregulation of the Within the framework of this three years according to the project energy market, however, this is www.mowic.se 37980MDM1_Business(4-9) 2001-01-24 12.09 Sida 9

BUSINESS NEWS 9

NEW JERSEY POLICE INCREASE PROPERTY RECOVERIES

In Fairfield, New Jersey, police Fairfield police chief Edward C. agement system, which in turn officers are now using US Facas. “We find that our officers connects to an online imaging Mobitex operator BellSouth are able to perform their jobs database. Wireless Data’s network and the more effectively by having direct latest wireless data technology to wireless access to multiple crimi- www.bellsouthwd.com fight crime. Fairfield police offi- nal databases.” cers are being equipped with During routine license and vehicle-mounted laptop PCs that registration checks, or when offi- allow them to rapidly query the cers notice a suspicious vehicle, New Jersey Division of Motor they are able to enter information Vehicles, the New Jersey state into their vehicle-mounted lap- police criminal justice and the tops to wirelessly search for out- FBI National Crime Information standing warrant data, stolen CINGULAR WIRELESS TO EXCEL Center (NCIC) databases over vehicle reports and suspended BellSouth’s Intelligent Wireless licenses. The officers quickly The joint venture announced last Network using PacketCluster® receive a full report and are pre- April by US operators SBC and Patrol softwareTM from pared for potentially dangerous BellSouth to combine their wire- Cerulean Technology. situations before they step out of less assets was officially launched “We have seen an increase of their vehicles. on October 5, 2000. Cingular approximately 25 percent in the Fairfield intends to expand Wireless, as the new venture will number of warrant-related arrests its use of wireless data over the be called, thus becomes a single and in stolen property recoveries, Mobitex network by integrating source for nationwide wireless including vehicles, due to wire- the PacketCluster Patrol software voice, Internet and data service less data transmission over with their computer-aided dis- in 42 of the nation’s top markets. the BellSouth network,” says patch and in-house records man- “Cingular is a name that shows the importance of the individual customer, as well as the unity of this joint venture,” says Cingular Wireless president QUEENSLAND NETWORK and CEO Stephen Carter. “It is about simplifying the wireless INAUGURATED industry, offering personal service and standing out among the On November 30, 2000, the tioning system has an accuracy of rest of the industry.” Queensland Ambulance Service less than five meters, allowing The new company serves (QAS) officially inaugurated its precise coordination of emergency more than 19 million customers new private Mobitex network. responses between dispatchers and approximately 190 million Participating in the ceremony and ambulance operators. potential customers in 38 states, were Stephen Robertsson, the “Everyone is extremely the District of Columbia and two Minister of Emergency for pleased with the system,” reports US territories. The company will Queensland, and media represen- Per-Erik Sundström, manager have annual revenues of about tatives from the press and TV. for after-market sales at Ericsson USD 12 billion, making it one of The new network, which Mobile Data Design, who was the US’ 150 largest companies. L was described in a previous issue also present at the inauguration. The new name will be of Mobile Data Magazine, cur- “The benefits of being able to evident in all aspects of the rently consists of 20 base stations quickly dispatch ambulances to company’s business. The Cingular serving 350 ambulances, of the scene of an accident were Interactive senior executive team which about 290 are on active immediately apparent. Ambu- will remain in place. Mobitex duty at any one time. lance personnel, who often work operations will continue as a sep- The QAS system includes under great stress, also regard the arate business unit, to be called automatic vehicle location (AVL), system as very user-friendly.” Cingular Interactive. as well as logging, dispatching and reporting of all vehicle and www.ambulance.qld.gov.au www.cingular.com personnel movements. The posi- 37980MDM1_Theme(10-21) 2001-01-23 17.01 Sida 10

FROM AN INVESTOR PERSPECTIVE Market analysts and venture capitalists continue to regard mobile Internet and wireless data communications as a promising area for investment. Although markets are down sharply, compared with a year ago, and prospects throughout much of the technology sector are bleak, this area remains a bright spot. 37980MDM1_Theme(10-21) 2001-01-23 17.03 Sida 11

CUSTOMER PERSPECTIVE 11 “There are a tremendous number

ot all mobile Internet and wireless presented in a SWOT chart that summarizes of companies data ventures receive funding, and strengths, weaknesses, opportunities and threats N many business plans that once made that are generally considered important by that can use wire- investors take out their check books are no investors and that will be decisive in securing longer viable. funding for any wireless data venture. less data to be Where do companies working with As this chart shows, Mobitex presents sig- Mobitex technology stand in this new invest- nificant strengths and can provide significant more competitive” ment climate? The success factors that make opportunities, but profiting from Mobitex also Mobitex a profitable investment have never been demands addressing its weaknesses and the adequately described in Mobile Data Magazine. threats to the technology. Mobitex is an avail- ness partners can deliver customized solutions For this reason, we are taking a somewhat differ- able, proven and highly reliable technology that based on their technology, experience and ent approach with our theme for this issue. offers a large number of turnkey products and expertise that are extremely cost-effective and Instead of presenting an application area or mar- services that can be rapidly deployed to meet a competitive. In all successful cases, however, the ket segment, such as the m-commerce theme in substantial and rapidly growing demand in the investment decision is based on a sound business our most recent issue, we will examine Mobitex market. Whether or not a Mobitex investment case that is rooted in detailed knowledge of the from an investor’s perspective. is profitable, however, depends critically on market, realistic expectations about demand, The objective of any investment is naturally choosing the applications and services for which applications and services that deliver real value to make a profit. However, an investment in it is best suited and carefully matching their for customer companies and end users. Mobitex, or any other technology, can take many functionality to user expectations. forms. A small courier service, such as Holland Mobitex is a narrowband wireless data tech- Parcel Express, may invest a relatively modest nology for dedicated packet-switched networks. MATCHING amount in a turnkey solution for handling cus- Ericsson has positioned Mobitex as the most cost- APPLICATIONS TO tomer requests. Operators, such as Sweden’s effective technology for the greatest number of Mowic or Brazil’s CooperNet, on the other hand, wireless data applications. It is not suitable for STRENGTHS are planning a national network to serve hundreds wireless multimedia, and it does not compete One of Mobitex’ greatest strengths is that it is of thousands of users that will require an invest- with voice-centric cellular systems. Investors who extremely cost-effective. It was specifically ment of millions of dollars. Between these two are aware of these limitations and correctly under- designed for sending many messages at low extremes, there is an almost infinite spectrum of stand the technology’s strengths will find that it cost. In BellSouth Wireless Data’s network, both young start-ups and established companies offers many profitable investment opportunities. for example, users send an average of 500 mes- that are developing software, terminals and serv- As the examples in this and previous sages per month, many of which are e-mails, ices for Mobitex from which they expect to make issues of Mobile Data Magazine show, many yet these users are charged only USD 40 per a profit. This article cannot hope to describe the companies are profiting from Mobitex. month for an extensive messaging service. business case for all of these ventures, but it will Speaking at the Wave 2000 conference last Compare this with SMS, which offers poorer show how to profit from Mobitex. spring in San Diego, former BellSouth service (short messages versus Internet e-mail) Wireless Data CEO Bill Lenahan reported that at much higher cost, and the Mobitex advan- more than 50 percent of the end-user compa- tage is clear. IDENTIFYING nies investing in vertical applications running “The message is always delivered, and the STRENGTHS AND on BellSouth’s Mobitex network reported pay- response is virtually instantaneous,” says back times of 12 months or less. Dimitris Alexander at Mobile City, 299 Broad OPPORTUNITIES There are a tremendous number of compa- Street 1007 NY, explaining to a customer why Mom-and-pop shops that grow from one loca- nies that can use wireless data to be more com- he was recommending Mobitex and RIM’s

tion to several and then go on to expand to petitive, and Mobitex operators and their busi- BlackBerry over a two-way paging device. In his national chains relying solely on their own resources and financing are not an anachronism characteristic of the old economy. In the new STRENGTHS OPPORTUNITIES economy, however, and particularly in fast grow- • Absolutely reliable transactions • Attracting new services and devices ing markets, risk capital is essential to leverage • Ideal for e-mail and instant messaging • Accelerating demand for wireless market growth and build a successful business. • Immediately useful devices and services • Available now Today, despite the technology stock market • Proven technology • Short pay-back time for companies using wireless data • Extensive expertise in delivering custom applications • New business models slump, there is no shortage of venture capital, • Extremely cost-effective for suitable applications (ASP and virtual network operators) but investors have become wary and need to • Extensive partnerships already in place understand the strengths and weaknesses of the WEAKNESSES technology in which they are investing. THREATS In today’s wireless communications • Low awareness of technology • Unsuitable for wireless multimedia • Momentum for GPRS and 3G market, there are a number of available and • Inadequate promotion • User expectations emerging technologies that present different opportunities. As a technology, Mobitex can be 37980MDM1_Theme(10-21) 2001-01-23 16.58 Sida 12

12 CUSTOMER PERSPECTIVE

cal of vertical wireless data applications. addition, they can replace older and bulkier ter- Many Mobitex operators, such as RAM minals for receiving service and dispatch orders Mobile Data UK, which was recently in many vertical applications. All the devices acquired by Tardis Transcommuni- support a WAP browser, as well as other con- cations, believe that their expertise in nectivity options, meaning that they can access building business solutions can add a variety of Internet-based information services, value to these classical applications as well as corporate data via an enterprise WAP- and enable new ways of working, gateway, for example. A current trend is that even in traditional industrial sectors. wireless banking and other m-commerce servic- “Accelerating business is the es are being offered on these devices. killer app for us,” says Tardis CEO Andrew Fitton. “Today RAM is sell- ATTRACTING NEW ing wireless data service, but the future lies in business solutions. The INVESTMENTS network is one element in the solution, The combination of a proven and cost-effective not the solution itself.” wireless data technology and readily available wireless handhelds designed for consumers has NEW HORIZONTAL created considerable interest among service and content providers. This has in turn given rise to MARKETS two new business models. New handheld devices and services are playing a The AOL Mobile Communicator service, in opinion, even though he was forced to send the crucial role in rejuvenating traditional vertical which AOL is acting as a reseller to its customers customer to another retailer because the RIM markets and opening new horizontal markets. of BellSouth Wireless Data’s service, is one exam- device was temporarily out-of-stock, the cus- This trend started about two years ago with the ple of the virtual network operator role, which in tomer should not settle for less. introduction of the RIM 950 Wireless Handheld, this case allows AOL to expand its popular Mobitex is a proven and reliable technology, a breakthrough product that was quickly fol- instant messaging service to new user groups. offering high reliability that makes it the first lowed by the Palm VII Connected Organizer, RAM Mobile Data Netherlands provides an choice for financial services and public safety which also uses the Mobitex network for wireless example of the ASP role (applications service applications, for example. Although consumers data communications. More recently, the RIM provider), whereby the Dutch operator is using and e-mail users also value these features highly, 957 Wireless Handheld, the Clyrcom Palm V its innovative Track&Trace service to move up they are an absolute prerequisite for many busi- Wireless Cradle, the TWM III handheld from the value chain and act as an application service nesses and public authorities that demand that CNI and the forthcoming Palm V wireless cradle provider for small to mid-size businesses. transactions must complete without dropped from Maxon have expanded the number of hand- connections and that emergency messages must held devices for Mobitex, and even more devices be delivered instantaneously. can be expected over the coming months. The defining features of these devices are ACCELERATING that they are truly tiny, being either handheld or wearable, that they can operate for weeks on BUSINESS a standard battery, and that they are consumer Mobitex has always been strong in traditional products in the truest sense, meaning that they vertical markets, such as transportation, field are immediately useful and deliver an “out-of- service, telemetry and pubic safety, but its box experience” that includes an intuitive inter- unparalleled messaging capabilities are adding face and over-the-air activation. While it would a new dimension to these classical applications. be an exaggeration to say that these products In today’s customer-focused organizations, dis- were an overnight success, sales in North tinctions between blue-collar workers in the America two years after the introduction of the field and white collar workers in the office are first devices are now running at about fading. Whether it is drivers and dispatchers, 15 – 20,000 units per week, meaning that the or field service engineers and call handling same number of new subscribers are being agents, workers need access not only to cus- added to Mobitex networks. With the recent tomer orders and service requests, but a wealth introduction of an AOL-branded RIM 950 of other information. wireless handheld as the AOL Mobile Increasingly, these customer-focused virtual Communicator device, sales can be expected to There are many Mobitex enabled devices/terminals that can teams need new forms of communication in further accelerate. access Internet-based information, as well as corporate data, which messaging and interactive applications The new devices are ideal not only for e- a market that is expected to grow substantially over the com- add a new dimension to the classical paradigm of mail, but also interactive (near real-time) mes- ing years. For investors is attractive to pick investments customer order processing and dispatching typi- saging and instant messaging (chatting). In objects that are on the growth curve when it takes off. 37980MDM1_Theme(10-21) 2001-01-23 16.59 Sida 13

CUSTOMER PERSPECTIVE 1311

“With this new investment, with Austar’s fixed broadband operations. We United Wireless believe that the available market for interactive wireless applications and services will GOING THE is once again in total at least 50,000 users over the next two DISTANCE IN BRAZIL years and consist largely of the user groups Bennett & Moloney is a US venture capital that Austar and its content partners wish to fund with about USD 500 million under start-up mode” target for broadband services. This, in turn, management. Recently, the company took will provide sufficient business to prolong the an equity stake in Universal Network economic lifetime of the network by many Technology (UNT) and CooperNet, the years to come” Australian Mobitex operator United newly started Mobitex network in Brazil Wireless provides an illustrative example of the “We were already involved in the credit- synergy that these business models can create REACHING THE card business in Brazil through partnerships and how the availability of new products have TIPPING POINT with local terminal manufacturers,” says motivated new investments from the owners. Jim Moloney, managing director at Bennett Partnerships, such as those forged in Australia United Wireless had operated an established & Moloney. “We saw that Mobitex offered between Austar, United Wireless, Clyrcom Mobitex network and had built a solid and a significant advantage in the EFT/POS and dotWAP are common in the Mobitex steadily growing business based largely on tra- market primarily because it is extremely community and an essential factor in deliver- ditional vertical applications. Austar, United cost-effective and provides a compelling ing the solutions and providing the applica- Wireless owner, which is a cable TV operator, alternative to the poor fixed network tions and services on which a successful busi- saw an opportunity. Austar had already had an infrastructure.” ness is built. In the US, as another example, a installed base of largely rural cable TV sub- As described in a separate article, partnership between BellSouth Wireless Data scribers but was moving into broadband ser- CooperNet will build out its network using and Palm Computing that is unparalleled in vices for which the initial take-up would be wireless POS as the lead application in Brazil’s the wireless industry resulted one of the most largely among urban subscribers. largest cities. The objective is to put in place successful products introduced to date. “Austar realized that Mobitex was a bul- a fixed wireless infrastructure that will enable Many people in the Mobitex community let-proof technology and that the timing was the new operator to capture a market share like to talk about the tipping point. When a right to move into a horizontal market with a that may be as great as 25 percent for ATMs technology is adopted by enough people and new device, such as the Palm V Wireless and 50 percent for credit-card terminals over is backed by the right players, it becomes Cradle,” says United Wireless CEO Peter the next five years. unstoppable. Mobitex is at the tipping point Clark. “With this new investment, United “We believe that the potential is in a number of markets and fast approaching Wireless is once again in start-up mode and in there, but we can realize a return on our it in many others. a unique position to benefit from synergies investment with a much smaller market share,” says Jim Moloney. “We are prepared to go the distance and stay with it as long as it takes.” Although Bennet & Moloney’s investment entitles the firm to board representa- tion, Jim Moloney believes firmly in a hands-off approach to management. “UNT has a very capable management team, and we will defer to them in deciding how quickly to build out the network and other aspects of running the business,” says Jim Moloney, adding that his firm is confident that UNT has the expertise to deliver the service that customers expect and that the investment will be profitable over time. “This is not your typical telecom investment where we intend to burn money and build out the network as fast as possible. Our decision was based on old- fashioned principles like cash flow. They may not be popular among other venture There are a number of available and emerging technologies from Ericsson and other suppliers that capitalists, but that’s what we believe in,” present different opportunities. Mobitex operators will not be alone in the market. It is therefore concludes Jim Moloney. essential to choose the applications and services for which the technology is best suite and to carefully match functionality to user expectation. 37980MDM1_Theme(10-21) 2001-01-24 11.56 Sida 14

Poised to take the next step in its development, Swedish Mobitex operator Mowic is looking forward to significant opportunities and a number of challenges in its market. Comprehensive network coverage has been established in Sweden’s three largest cities, Stockholm, Gothenburg and Malmö, and the major roads between these cities. Customers have already signed on in key market segments, such as telemetry and logistics, and Mowic is now ready to take its business to the next level. 37980MDM1_Theme(10-21) 2001-01-24 11.57 Sida 15

CUSTOMER PERSPECTIVE 15

he company was formed in 1997 by a whom have received the devices from their small group of private investors. Since employers and use them heavily in their work. Tthat time, Mowic has been working hard “We are also very impressed with the prod- to build its network and to grow with its major ucts and services that CNI and Intec Telecom customers. One such customer is Birka Energy, have created in Korea and are engaged in negotia- which uses the Swedish operator’s Mobitex net- tions to introduce them in Sweden,” says Tomas work for a meter-reading application. As a Rehn. “The recently launched TWM III opens up result of this contract, Mowic has built out its a whole new ballgame for the Mobitex communi- network in Stockholm and the vicinity so that it ty, and we hope that all operators recognize this now provides excellent indoor coverage. opportunity. We have seen what happened with Mowic is now pursuing an aggressive busi- subscriber growth in US when mobile Internet ness plan in which the market is defined in five applications were introduced. We see a similar major segments. During the first quarter of opportunity with the right device for 400 MHz. 2001, Mowic will be preparing a new share “CNI has the design expertise and the man- issue for a private placement. Through this tar- ufacturing capability to produce such a device, geted share issue, the company expects to raise but it will require an up-front commitment for a fundings, which will be used to expand the net- relatively large order,” continues Tomas Rehn. work and to establish offices in Gothenburg and “We are optimistic about the negotiations with other locations. CNI, but it is becoming increasingly clear that we need to get other 400 MHz operators on board.” CONFIDENT ABOUT MARKET PROSPECTS “We have seen INVESTING IN NEW “We felt that there were two paths forward,” says MARKET SEGMENTS Mowic chairman and principal investor Gary what happened with Although both the Palm V cradles and the TWM Johansson. “Either we could continue growing in III are WAP devices, Mowic does not intend to small increments in pace with customer contracts, subscriber growth in position itself as a wireless ISP or build its busi- or we could increase the pace and go after a greater ness on the mobile Internet. Instead, the compa- number of customers. We are very confident US when mobile ny is focusing on mobile user communities of pro- about our business and the prospects for the fessional people who need to exchange informa- future, so it really wasn’t a very difficult decision.” Internet applications tion and access corporate data on the move. In Principal investor Gary Johansson is a many cases, this will involve a WAP and IP-based working chairman, who in addition to being a were introduced” solution, but this will simply be a means toward venture capitalist is a telecom industry veteran. the end of serving a mobile community. President Tomas Rehn feels that this combina- Mowic also plans to invest in wireless pay- tion is invaluable for the company. ment solutions, even though fixed lines for such “Fast growth is not possible without applications are readily available and relatively financing, but for a start-up company, it is step up the pace is the availability of new wire- inexpensive in Sweden. “There are many cases important that the investors understand the less devices for the 400 MHz band that will where a wireless payment terminal at sporting technology and the market” says Tomas, adding enable interactive applications and services to events and exhibitions would be a very attrac- that the Mowic chairman and board of directors be deployed. tive alternative,” says Tomas Rehn. “Today, peo- have been invaluable not only as financiers, but “These devices are absolutely critical for ple are also increasingly concerned about credit also as a sounding board. our business going forward,” emphasizes Mowic card fraud, and restaurants and other establish- “Technical expertise is essential when president Tomas Rehn. “We see major new mar- ments able to complete a credit-card transaction investing in a start-up company,” agrees Gary ket segments opening up in point-of-sale appli- while the card remains in the customer’s sight Johansson. “But it is also necessary to maintain cations, positioning services and what we like to can provide a higher level of service.” the right balance. The board can’t get too call mobile communities. To realize the poten- Tomas Rehn and Gary Johansson are aware involved. After all, the president is the one who tial in these segments, we simply have to pro- that substantial investment will be required to is running the company.” vide small, low-power devices and excellent realize the potential in the new market seg- indoor coverage.” ments that Mowic is targeting. Despite being DEVICES ESSENTIAL At present, Mowic is evaluating devices the first Mobitex operator to face competition from a number of suppliers, including Clyrcom in the form of commercial GPRS service, Mowic FOR SUCCESS and Maxon, which have announced plans to pro- is confident that Mobitex offers compelling Although Mowic intends to continue to devel- duce a wireless Palm V cradle for the European advantages with respect to security, cost and op its business in the established market seg- market. These are attractive devices for the capacity. With the new share issue during the ments of telemetry, property monitoring, trans- Swedish Mobitex operator, since there are some spring, Mowic’s management will be ready to port and logistics, a key factor in the decision to 200,000 Palm V users in Sweden, many of take the young company to the next level. 37980MDM1_Theme(10-21) 2001-01-24 12.04 Sida 16

“Without transport, everything comes to a halt,” says Gerrit van Dijk of the Dutch Society for Transport and Logistics (Transport en Logistiek Nederland). “With the rise of the Internet and e-commerce, the number of small deliveries is increasing. Customers want short delivery times and accu- rate information about how far their deliveries have progressed.”

errit van Dijk believes that effcient IT NIMBLE COURIER FOR solutions can make the delivery chain clear G and transparent and that e-commerce THE NEW ECONOMY makes it easier for transport companies and Holland Parcel Express is an example of a cus- freight forwarders to organize and coordinate tomer using Mobitex to operate more efficient- their operations. The transport and logistics infra- ly in this new environment. Working together structure is thus vital for the new economy. with C-Track, this small courier company has RAM Mobile Data Netherlands, realizing equipped 20 vehicles with units that register that the old-world transport infrastructure is not only speed, but also fuel and oil levels, as not up to the task, has taken this advice to well as GPS equipment for tracking the vehi- heart. Having previously launched its successful cle’s location. This information is then sent over Track&Trace service (see Mobile Data Magazine the Mobitex network and made available to the OFFENSIVE STRATEGY 2/99), the Dutch operator decided to make fur- company’s order handlers. The Track&Trace service is one example of how ther improvements to help small to mid-size Small parcel deliveries can now be handled RAM Mobile Data Netherlands is migrating to transport and logistics companies operate more much more rapidly and efficiently. Both vehicle a new role as an ASP (Application Service efficiently in the new economy. operating costs and administrative costs have Provider). In addition, the Dutch operator is “One of the ways in which we have been significantly reduced, thus increasing the looking for opportunities to act as an ASP for expanded the capability of the Track&Trace company’s profitability. In addition, because other types of dedicated, business-critical data, service is to link it to the GSM network using logged data for each vehicle can be accessed at any such as meter readings or asset tracking. This is SMS messages, thus allowing the service to be time, maintenance and fueling can be more pre- a change that Peter Groot considers essential in used throughout the whole of Europe,” says cisely planned, thus eliminating stress for drivers. today’s market. Peter Groot, director corporate marketing at “For companies like Holland Parcel “In our view, simply increasing data traffic RAM Mobile Data Netherlands. Express, the use of onboard computers and is a defensive strategy,” says Peter “We are pur- mobile data communications facilitates auto- suing an offensive strategy that will allow us to matic route planning and makes the company move up the value chain and derive greater rev- “The transport and more effective and responsive in a rapidly enues from services.” changing market,” says Peter Groot. “The new This is also a move that is receiving full sup- digital economy does not do away with the need port from KPN Mobile, which last year acquired logistics infrastruc- to transport goods. Instead, it demands using RAM Mobile Data Netherlands. “KPN manage- the information infrastructure to improve trans- ment realizes that RAM Mobile Data possesses ture is thus vital for port and logistics systems so that they are able strategic expertise in wireless data solutions and to function more flexibly and handle more and that this expertise is vital in delivering greater the new economy” smaller deliveries more efficiently.” added value as an ASP,” concludes Peter Groot. 37980MDM1_Theme(10-21) 2001-01-24 12.06 Sida 17

CUSTOMER PERSPECTIVE 17

pany was instrumental in developing several RIM (Research in Mo- protocols and connectivity products that established its reputation as a technology leader. tion) is a pioneer in wire- Major milestones were achieved in 1997, when Intel took an equity stake in the company less data communica- and an IPO (initial public offering) was implemented, and earlier this year when Nortel also tions and was one of the made an equity investment. Today, RIM employs more than 800 people and operates a first companies to adopt state-of-the-art 36,000 square foot manufactur- ing facility, as well as a research and develop- Mobitex technology. ment center and corporate headquarters occupy- ing 56,000 square feet.

BRIGHT FUTURE The future for the Canadian company looks very bright. According to a study by the International Data Corporation (IDC) published in February 2000, the number of wireless device users with access to inbound and outbound ounded in 1984, the company has grown information services and Internet messaging it will offer as an AOL-branded device with steadily and achieved many milestones will increase a whopping 728 percent from 7.4 AOL software, to its users. F on its way to becoming the leading glob- million in 1999 to 61.5 million by 2003 in the In addition to Mobitex, RIM supplies al developer and manufacturer of wireless hand- United States alone. products for other technologies. The company is helds, PC Card and OEM radio modems for the If the success achieved by RIM’s products also developing next-generation products and narrowband wireless data industry. Today, the to date is any indication, a large proportion of intends to enter international markets, particu- company is well capitalized, profitable and list- these users will select a RIM device. Recently, larly in Europe and South America. More ed on both the Toronto (TSE: RIM) and Nasdaq two major agreements were signed. In the first, important goals, however, are satisfying the (RIMM) stock exchanges. BellSouth Wireless Data contracted RIM to tremendous demand for its products in North By 1988, RIM was exclusively focused on supply 150,000 RIM 950 and 75,000 RIM 957 America, increasing the BlackBerry user base wireless data and had become the first wireless wireless handhelds over a 12-month period and completing development work on a Java data developer in North America. These were starting in March 2001. In the second, AOL platform that will allow additional applications early days for Mobitex, and the Canadian com- (America Online) selected the RIM 950, which and services to be added to the devices. 37980MDM1_Theme(10-21) 2001-01-23 16.51 Sida 18

DESTIN Y IS IN OUR HANDS

After being hailed as the next big thing for so many years, wireless data is finally showing signs of explosive growth. 37980MDM1_Theme(10-21) 2001-01-23 16.52 Sida 19

TECHNOLOGY/STRATEGY 19

“Mobitex will remain the first f course, for people who have been work- ture,” continues Tomas Rehn. “Mobitex can ing with Mobitex for years, it is hardly choice for guarantee absolutely reliable connections and O surprising that it has taken some time to that transactions will complete.” bring the market to this level or that many seem- At this point in time, Mobitex retains its ingly promising technologies have fallen by the business-critical cost advantage over GPRS. Tomas Rehn believes wayside. Unlike cellular voice calls, wireless data that this will continue to be the case, since infra- is not a commodity service, and building a suc- applications” structure costs for Mobitex are lower than for cessful business with wireless applications and GPRS, but he does not rule out the possibility services requires a different business model than that GPRS operators may try to win customers those currently found in the cellular industry. by offering low prices. However, GPRS opera- Predictinag how this dynamic market will tors have not yet established pricing models, and develop over the next few years and what mar- only time will tell whether or not Mobitex will ket share Mobitex will capture is difficult for continue to have a cost advantage. several reasons. Expectations surrounding the this market over the next few years, however, “Capacity is a potentially more serious mobile Internet are one source of difficulty. will undoubtedly be GPRS. In Sweden, Mowic problem,” notes Tomas Rehn. “Cellular net- WAP (Wireless Application Protocol) over cir- became the first Mobitex operator in the world works have the advantage in terms of coverage, cuit-switched cellular has not lived up to the to face such competition when GSM operator but they are already heavily overloaded. initial hype surrounding this technology. Today, Europolitan began commercial GPRS service on Operators cannot guarantee how many channels many people believe that the combination of December 1, 2000. or time slots users will be allocated for data, so WAP and GPRS (General Purpose Radio “We do not view GPRS as a significant capacity may be a problem. When traffic peaks, Service) will finally deliver a more satisfying threat,” reports Mowic president Tomas Rehn for example at a conference when everyone user experience. from Stockholm. “In our view, Mobitex has such comes out for a break and takes out their cell Of course, third-generation (3G) mobile compelling advantages with respect to reliabili- phones to make a call, it may be impossible to systems, such as WCDMA (Wideband Code ty, price and capacity and we remain confident get a data connection. Mobitex, on the other Division Multiple Access), which are further that our service will remain the first choice for hand, will not shut users out.” out on the horizon, are widely expected to the business critical applications and segments Mowic’s early experience will undoubtedly deliver multimedia and a rich Web browsing that we target. generalize to other Mobitex markets. Reliability experience over a wireless device. In the mean- “At Mowic, we have concluded that relia- should remain the primary differentiating fea- time, however, users are still waiting. bility is the most important differentiating feature when alternative wireless technologies are

RETAINING THE ADVANTAGE According to an IDC (International Data Corporation) market study from February 2000 presented by RIM in its 1999 annual report, the number of wireless device users with access to inbound and outbound information services and Internet messaging will increase from 7.4 million in 1999 to 61.5 million by 2003 in the United States alone. This is an interesting study because it is based on a narrower definition of wireless Internet access that avoids the difficult issues of WAP, Web browsing and mobile Internet. In fact, the kinds of services included in the study are ideal for a narrowband technology, such as Mobitex. Mobitex will naturally not be alone in this market. Restricting the focus to a narrower range of wireless services also delivers a more satisfying user experience than over a circuit- switched cellular phone. In addition to Mobitex, there are two-way paging services, as well as other packet-switched services, such as CDPD (Cellular Digital Packet Data), which Tomorrow’s multi-service networks will also support multiple access. Regardless of the access method chosen or where the seems to be gaining some ground again. The content comes from, everything will be available everywhere, and the device’s capabilities will determine what is possible. primary competition for Mobitex operators in 37980MDM1_Theme(10-21) 2001-01-23 17.43 Sida 20

20 TECHNOLOGY/STRATEGY

to make Mobitex more competitive in today’s networks, this will facilitate the introduction of “Enhancements will market. Ericsson is committed to ensuring that a state-of-the-art GPRS node called WPP Mobitex remains the most cost-effective tech- (Wireless Packet Platform). further increase nology for the greatest number of applications, Although introducing a GPRS core node and planned enhancements over the next few in the Mobitex network is a radical step, WPP years demonstrate this commitment. will deliver significant benefits. WPP is the coverage, capacity These enhancements began with an ini- packet-data switching engine of the GPRS tiative called NTE (Network Topology Server Node (GSN), which is not only a core and speed” Enhancement) that introduced sub-networks component of the GPRS system, but a key and release R14N, which included an component in the migration of Ericsson’s GSM improved radio protocol that significantly system to 3G and WCDMA. As such, it is a increased battery life and coverage. Current platform in which considerable resources have and planned work includes NTE-II, multi- been invested and that will be maintained by channel base stations, ADR (Adaptive Data many people within Ericsson. considered. In addition, Mobitex can and must Rate), and a new backbone network. Together, Put simply, WPP brings wireless packet retain a cost advantage, compared with GPRS, these enhancements will further increase data into the core network. The WPP, which even though some operators may temporarily coverage, capacity and speed, while providing was designed by Ericsson Mobile Data Design lower prices to gain subscribers. Coverage, final- a backbone network for multi-service access as a core component for next-generation wire- ly, will always be an area where service providers that supports end-to-end IP solutions. less networks, is a multi-processor, multi-task- must constantly strive to satisfy customers. In addition, Mobitex networks will become ing platform that provides more than enough scalable from small campus networks serving performance for growth and telecom-grade a single organization to extremely large redundancy. In a next-generation network, LEVERAGING national networks able to accommodate WPP and GSN will support a packet backbone TRADITIONAL millions of subscribers. network architecture capable of carrying multiple services. In the Mobitex network, it will STRENGTHS provide a host connection point at the backbone Mowic’s confidence in the capacity of Mobitex to MOVING TO THE NEXT level, thus superceding the current IAS meet the competition provided by GPRS under- GENERATION (Internet Access Server) and X.25 implementa- scores another important point. Although wire- tions at this level. less Internet access and messaging are important With NTE-II, node addressing is being intro- Ericsson is also upgrading and redesigning in creating a horizontal or mass market, duced, and the number of sub-networks is being Mobitex base stations. A new enhanced base sta- Mobitex’ traditional strength lies in vertical scaled up. At the backbone level, bridges will tion for 800 MHz is now undergoing field testing markets, such as transport and logistics, public be implemented between network nodes to cre- and will soon be available commercially. This will safety, telemetry and point-of-sale applications. ate network clusters. In addition to allowing be followed by a new multi-channel base station These are areas where growth will continue to be Mobitex-agnostic connectivity between access that will significantly increase radio cell capacity. strong and in which Mobitex’ reliability features will be decisive competitive factors. In Brazil, for example, new Mobitex operator CooperNet has built a very strong business case on POS (point-of-sale) applications and expects to capture a market share of 25 percent for ATMs and nearly 50 percent for POS applications. Naturally, there are unique prerequisites for these applications in a country like Brazil, but the fact remains that security and reliability are crucial. Banks and customers demand that transactions must complete. There must be no risk that a connection will be dropped between the credit and debit phases of a transaction.

CONTINUOUS IMPROVEMENT Significant enhancements of Mobitex technology and the network architecture are continuous- In addition to allowing Mobitex-agnostic connectivity between access networks, NTE-II will facilitate the intro- ly being made to meet customer demands and duction of a state-of-the-art GPRS node called WPP (Wireless Packet Platform). 37980MDM1_Theme(10-21) 2001-01-23 17.44 Sida 21

TECHNOLOGY/STRATEGY 21

“Many of these enhancements are PREPARING FOR At current prices, this would generate USD 30 to 35 million in revenue to AOL in being driven by the MILLIONS OF USERS 2001 and USD 160 to 165 million in 2002,” Many of these enhancements are being driven writes Blodget. North American by the North American market, where growth in both traditional vertical markets and new DETERMINING OUR market, where growth horizontal markets is explosive. In North America, for example, Mobitex Subscribers are DESTINY beeing added at a rate of 15,000 – 20,000 each Combined with BellSouth Wireless Data’s in both traditional week. The US operator recently signed an agree- other subscribers, this could well add up to ment with RIM calling for delivery of 150,000 more than four million Mobitex subscribers in vertical markets and RIM 950 and 75,000 RIM 957 wireless hand- the US alone by the end of 2003. If so, this helds over a 12-month period starting in March would amount to a five-percent share of the new horizontal 2001. BellSouth Wireless Data and RIM also wireless data market predicted in the IDC reached a breakthrough agreement with study mentioned above. markets is explosive.” America Online (AOL) that will further acceler- “We are working hard on all fronts to ate Mobitex growth. prepare the Mobitex network for millions of According to this agreement, the US subscribers and to deliver industry-leading per- Internet media giant will offer a version of the formance in terms of capacity, connectivity, scal- RIM 950 wireless handheld to be called the ability and cost-efficiency,” says Folke Bergqvist AOL Mobile Communicator. The AOL-branded director technology at Ericsson Mobile Data device will contain proprietary software allow- Design, adding that he expects Mobitex to ing users to access portions of AOL’s services, remain the technology to beat in most applica- including Internet e-mail and instant messag- tion segments for the foreseeable future. ing. Merrill Lynch analyst Henry Blodget pre- “Mobitex is extremely well positioned on dicts in a research note that the AOL Mobile the curve as market growth accelerates. Over Communicator will be a big hit. the next few years, there will be millions of “We estimate that AOL could sign users, and determining our share of that market up 300,000 plus subscribers from RIM is largely up to us. As the numbers show, a few and future device manufacturers by the end percentage points are going to make an enor- of 2001 and 1.1 million by the end of 2002. mous difference,” concludes Folke Bergqvist. 37980MDM1_PNews(22-28) 2001-01-23 17.33 Sida 22

MOBILE MARKET Left: Ed Mc Gaw, director systems & technology, United Wireless. NEWS Right: George She, director system technology, BellSouth Wireless Data.

LARGEST-EVER UK operator RAM UK, Björn Sabel from Swedish operator MOA MEETING Mowic and Won Baek from Korean operator Intec, as well as Pontus Lindqvist from Ericsson On October 22 – 24, the Mobitex Mobile Data Design. There was a Operators Association (MOA) general consensus that Mobitex is held its largest-ever meeting in extremely well positioned to bene- Gothenburg, the home of fit not only from the growth of the Ericsson Mobile Data Design and mobile Internet, but more general- the birthplace of Mobitex. This ly from rapidly increasing demand highly successful meeting was for wireless communications. both very productive and Australia’s Clyrcom Com- extremely informative. Not sur- munications demonstrated its prisingly, the MOA organizers wireless Palm V cradle, while and the Ericsson hosts who Intec’s parent company CNI arranged the meeting received introduced its TWM III wireless very high marks for their efforts. handheld that will be used for “Seeing over a hundred peo- stock trading and other interac- ple at a MOA meeting was sim- tive services. The MOA meeting ply overwhelming,” says Jack also featured presentations of a Barse, executive director of From left to right: Waldo Villasana, projects engineer T-link, Telcel, Venezuela. Won Baek, CEO Intec Korea. Pontus Lindqvist, general manager Mobitex Ericsson. number of business cases de- MOA. “It made me realize that scribed elsewhere in this issue Mobitex really has arrived and number of potential operators comprehensive sessions program. and product demonstrations in a that we are on the verge of some- where present. From his vantage point as an separate exhibition area. The pre- thing momentous.” “For us, this was really a fan- industry leader and a member of sentations are available for down- The MOA meeting dele- tastic meeting,” says Per-Erik Ericsson corporate management, loading on MOA’s Web site. gates represented 17 countries Sundström, manager for after- Torbjörn Nilsson offered a fascinat- The meeting concluded with and 15 Mobitex operators. A market sales at Ericsson Mobile ing and insightful chronicle of the a competitive update on GPRS by Data Design. “MOA meetings development of the mobile Ericsson’s Bengt Didner, who was have always been an important Internet. In his view, the Mobitex accompanied by Rich Pullin, who forum for the Mobitex communi- devices, i-mode phones and SMS described the UK operator’s strat- ty, but this time there was a real and WAP services that are now egy and positioning with respect dialogue between operators and being used to access the Internet to other technologies. suppliers that was very construc- are more than adequate proof that “Overall, participants rated tive and bodes well for the future.” this new era in communications the meeting as outstanding and “When we look back in a few has begun and that Mobitex users clearly indicated that they wish years time, we will realize that the are fortunate to be on the leading to see such meetings continued as mobile Internet is here today,” edge of the curve. an annual event, so my guess is emphasized Torbjörn Nilsson, The unique position that that this was the greatest-ever Ericsson senior vice president for Mobitex enjoys today was a theme MOA meeting until next year,” Left: Jack Barse, executive director MOA. marketing and strategic business in several other presentations, concludes Jack Barse. Right: Torbjörn Nilsson, senior vice president, development in a presentation that including those by MOA chairman Marketing & Strategic business dev. Ericsson. was one of the highlights of the David Neale, Rich Pullin from www.mobitex.org 37980MDM1_PNews(22-28) 2001-01-23 17.34 Sida 23

MARKET NEWS 23 WATCH OUT FOR WAVE 2001

Cingular Interactive (formerly 14-16, 2001, with optional BellSouth Wireless Data) recent- developer workshops on May 17, ly announced that two renowned at The Aladdin Resort in Las high-tech industry executives, Vegas, Nevada. Sponsors Guy Kawasaki of Garage.com include: Ericsson, Palm, RIM, and Carl Yankowski of Palm, Panasonic, Melard Technologies, Inc., will headline WAVE 2001. Siebel Systems, MDSI, Clyrcom, This Wireless Alliances and Geoworks, Sybase and many Vision Exchange conference is more. This year’s conference one of the wireless data indus- should easily top last year’s try’s most anticipated annual record breaking attendance, so events. The conference, which make sure that you register early will feature its strongest line-up for this important event. GO SMART of industry leading speakers and GO RUGGED sponsors ever, will be held May www.bellsouthwd.com GOBOOK

Itronix, a manufacturer of communications. The GoBook ruggedized, wireless mobile is a fully featured computer and AWARDS computing solutions, recently is built to withstand the rigors introduced the GoBook. Billed and changing needs of remote FOR as the first notebook to combine field use. It sustains extremes the latest PC technology, inte- for water, shock and tempera- UK PARTNERS grated communications plus ture. Further enhancing its use affordable toughness, the in the field, the GoBook GoBook offers unparalleled per- includes a glow-in-the-dark UK Mobitex operator RAM Mobile formance at an affordable cost. keyboard and a three-button Data recently held a partner confer- With a 650 MHz Intel touchpad, as well as carrying ence at which several companies Pentium III or Celeron processor, handles and straps. were recognized for exceptional per- 64 – 245 MB RAM, hard drive The GoBook supports a formance over the past year. Isotrak sizes up to 20 GB, a 12.1” TFT variety of wireless connectivity received awards for both the largest display, a media bay for an 8X options, including Mobitex, increase in business and the highest CD ROM, floppy drive or second CDPD, GSM and wireless LANs, number of units over the network. battery, built-in speakers, head- through Itronix’ new Common In the most innovative products set and microphone jacks, the Radio Module Architecture that category, three companies received GoBook is a smart computer that allows users to easily upgrade awards: Motor Trade Software for provides all the performance and radio modems or change net- its Turbo Track product, APD for a features users expect of a main- works in the field. The GoBook National Ports version of the stream notebook PC. is also the first computer of its IMDN PNC Service used by police Unlike mainstream prod- kind to be shipped with forces throughout the UK, and ucts, however, the GoBook is Bluetooth, the new short-range Terrafix for its development of a designed and manufactured by radio standard for inter-device Mobitex API for the Psion Epoc 32 Itronix, a company that has communications. operating system. built its reputation on ruggedized products with integrated www.itronix.com www.ram.uk 37980MDM1_PNews(22-28) 2001-01-23 17.35 Sida 24

24 MARKET NEWS

MAXON ANNOUNCES PALM V CRADLE

Maxon, a UK-based manufactur- available for use on 420 MHz er of mobile communications network in the UK and 450 equipment and a leading supplier MHz networks in Europe and of Mobitex modems, announced other parts of the world. recently that the company is Although product specifications developing the DM 210 P wire- have not yet been finalized, the less cradle for the popular Palm V DM 210 P is expected to deliver organizer that is scheduled for the same radio and Mobitex per- release in March 2001. The DM formance characteristics as the 210 P will feature a battery life of DM 210. 20 hours for low user requirements and 15 hours for heavy user www.maxon.co.uk requirements with a standby time of 30 hours. An extended battery option will be available. The new unit will be based on the recently released DM 210 modem, meaning that it will be

WORLD’S SMALLEST RADIO PACKET MODEM Communication Network Inter- power-saving increments, while that Intec will be launching for face (CNI) of Korea, which is the receiver sensitivity is a full –115 wireless POS and m-commerce parent company of Mobitex oper- dB (BLER <10%). applications. ator Intec, recently introduced The RPM3 is powered by a The RPM3 is currently the RPM3 Radio Packet Modem. standard 4.2 V power supply available in a 900 MHz version Measuring just 58 x 47 x 9 mil- requiring no DC/DC converter. for use on Mobitex networks in limeters and weighing only 35 Connectors include an RS-232C Korea, North America and South grams, the RPM3 is the world’s serial port, a 20-pin host connec- America. Versions with same smallest and lightest OEM radio tor and an antenna connector. form factor for 800 MHz and for modem for Mobitex. In addition to being offered 400 MHz for use in Asia, Europe, The RPM3, which is as an OEM Mobitex modem with and Australia are currently under certified by the US Federal low cost and high functionality, development. For more informa- Communications Commission the RPM3 is used in CNI’s tion or to place orders please (FCC) and was recently approved recently introduced TWM III contact Mr. CALI Kim, for use on BellSouth Wireless wireless PDA that was featured Tel: +82 2 330 5623 Data’s network, uses Mobitex for in Intec’s recent re-launch of its Fax: +82 2 330 5780 the radio protocol and the native Mobitex network. It is also being e-mail: [email protected] MASC for the host protocol. included in the AirPOS wireless Output power is variable from EFT/POS (Electronic Funds www.cni.co.kr 2.0 W down to 0.03 W in seven Transfer/Point of Sale) terminal 37980MDM1_PNews(22-28) 2001-01-23 17.36 Sida 25

MARKET NEWS 25 FIELDSERVICE@RAM Inspired by the success of the Track&Trace service, KPN RAM Mobile Data Belgium is launching a similar service to be called FieldService@RAM. The new service will enable even small service organizations to take advantage of wireless data communications for dispatching customer service requests and handling technical queries from the field without having to make large investments in equipment and application development. Instead, the customer only needs to have an Internet connection, a portable terminal for each driver and a subscription with KPN RAM Mobile Data. The service includes the ability to control in real-time the activities in the field, the ability to assign the right person with the right skill to a customer, place orders for spare parts, automatic invoicing from the field as the assignment is completed, and the an application service provider,” also developed here in Belgium in 30-50% of time spent for doing possibility to follow-up opera- says Marc de Buyser, managing our organization.” the same task. The service can be tions statistically. director at KPN RAM Mobile This new service will enable delivered with additional services “The FieldService@RAM Data Belgium. “It is web-based field-service organisations to such as installation, helpdesk concept is part of our strategy to and similar in concept to the operate more efficiently, often assistance and training of staff. deliver greater value to the cus- Track&Trace service, and the new resulting in better customer serv- tomer and to take on the role of FieldService@RAM service was ice and sometimes a reduction of www.ram.be

MOWIC TARGETS SECURITY SECTOR Swedish Mobitex operator Mowic alarms, burglary alarms, meters, toring of premises is a market is launching Mowi Larm, a range equipment sensors, etc. over the segment with tremendous poten- of products for its PMD 8000 Mobitex network. The unit also tial,” notes Björn Sabel, market- network that offers customers a has four relay outputs and can be ing manager at Mowic. “This is new concept for remote monitor- programmed remotely over the also an area where Mobitex’s ing and measurement data. Mowi wireless data network. A similar- security features are key selling Larm is compatible with virtually configured unit called the points, and we are therefore ly all existing security and alarm Mowi Larm 1011 provides a con- extremely optimistic about the systems. The basic Mowi Larm nector for an optional card reader prospects for Mowi Larm.” 1010 unit can transmit up to for passage control. eight fixed inputs from fire “Remote control and moni- www.mowic.se 37980MDM1_PNews(22-28) 2001-01-24 12.10 Sida 26

Startupfactory is one of the leading Swedish venture capital firm with offices in Stockholm and Helsinki that is focused primarily on the mobile Internet.

“We don’t have to wait for tomorrow’s technology”

he company currently has about ten start- What role should operators take in The mobile Internet is extremely popular ups in its portfolio. Although none of providing mobile services? Is i-mode a recipe for success for other oper- Tthese companies currently work with ators or is its popularity due to factors that Mobitex, Startupfactory’s CEO Staffan Operators have a key role. In Japan, for exam- are unique to Japan? Helgesson is very familiar with the technology ple, with i-mode and other mobile services, it and its capabilities, which is not surprising, is very much up to the operator to drive Obviously the high cost of fixed Internet since former Ericsson CEO Sven-Christer development, and that includes which fea- connections in Japan and the difficulty of Nilsson is one of the company’s principals. tures mobile phones contain. On the other handling Japanese characters on mobile Mobile Data Magazine talked to Staffan hand, operators should not attempt to pro- terminals are two very important factors Helgesson shortly after he and his colleague Lars vide content. Their role in providing services underlying i-mode’s success. Those are not Christensson returned from a trip to Asia on is to make it easier for content providers to factors in Europe or the US, so i-mode which they studied a number of mobile services. develop services. would obviously not be as successful in those 37980MDM1_PNews(22-28) 2001-01-24 12.11 Sida 27

OUTLOOK 27

important. The i-mode service operates at 9.6 kbit/s, which is the same speed as today’s GSM network. What NTT DoCoMo has shown is that it is possible to create attractive and profitable services using today’s technology.

What can mobile Internet providers learn markets. Operators in other parts of the services as possible. In mobile Internet, no one from Mobitex? world, however, would do well to learn from owns the customer, and all parties will benefit Once again, it is a question of using available NTT DoCoMo. by creating a bigger market. technology. The Palm VII, for example, is a Another important point, particularly for fantastic device. The Americans are incredibly good at leveraging existing technology and cre- What are the Japanese doing that other the new GPRS services, is that operators need ating a breakthrough product. We don’t have operators should follow? to create intuitive and reasonable pricing models. Mobile services obviously have to deliver to wait for tomorrow’s technology to make the Take contracts, for example. In Europe and value, but users have to feel that they are pay- mobile Internet a success. There is plenty of the US, operators often end up negotiating a ing a reasonable price for the value they receive. existing technology that can be profitably separate contract with every content and service Over the next few years, Asia will take the deployed today. provider, which is very cumbersome. Who wants lead in developing content and services. to provide service or content when you don’t know how or what you’re going to get paid? Will mobile Internet services drive devel- NTT DoCoMo, on the other hand, has In what types of services is Startupfactory opment of terminals towards PDAs and a standard contract for i-mode that regulates investing? handheld PCs? all aspects of the relationship between the We work with entrepreneurs in the IT and tele- Terminals are obviously extremely important, operator and the service provider, including com industry with special focus on enabling but we must not let terminals prevent us from how revenues will be shared. They provide technologies and applications for the mobile using existing technology. Even the simplest standard templates and API’s for i-mode ser- Internet. We support talented, driven entrepre- mobile phone without WAP or any other vices. There is a Web site where developers neurs who are aiming for global leadership. We mobile Internet features can access the Internet can get help. Putting up an i-mode service choose our portfolio companies carefully, select- via an IVR (Interactive Voice Response) sys- is easy in Japan, because the operator has set ing only those that match well with our areas of tem. Having said that, I believe that we will see a standard. That’s an example that more expertise. For the right companies, we invest in an increasingly segmented terminal market. operators should follow. If mobile Internet the seed and startup phases There will obviously be a wide range of prod- services are to be successful, operators simply One example of an exciting company that ucts to suit the needs and preferences of young have to make it easier for content providers we are backing is Picofun, which is the leading people, housewives, students and many other to create services. mobile Internet community games developer. groups. The mobile Internet will mean differ- Picofun distributes their games via operator ent things for different people. portals and independent mobile portals to the Are there other differences between i-mode end user’s mobile phone. The target market is and other mobile Internet services that are people with a young mindset that have mobile important? Internet access and who like entertainment. “The most successful The fact that fixed Internet connections are Picofun launched the world’s first multi- expensive in Japan and thus limit Internet user WAP game in May 2000, Picofun operators will be usage is in some ways an advantage. In Europe Football, and was also first to make it available and the US, people are trying to figure out how for both GSM and GPRS. Picofun is the those who partner to shrink conventional web pages so that they McKinsey Venture Cup 2000 winner, and was can be displayed on a mobile terminal. In E-challenge 2000 finalist, a pan-European with other content Japan, on the other hand, people are looking at competition to select the hottest Internet & existing services for i-mode and trying to wireless companies in Europe. According to develop them into something bigger. Time magazine, Picofun is one of Europe’s 50 and service hottest tech firms. What other advice can you offer to others providers to offer wishing to launch mobile Internet services? Will the introduction of GPRS mean a One of the most important points is that oper- breakthrough for the mobile Internet? users as wide a ators should not try to lock users into their own GPRS will obviously be important, particular- systems. The most successful operators will be ly because it is a packet-data service and the range of services as those who partner with other content and serv- user is always connected, but experience from ice providers to offer users as wide a range of Asia also shows that speed is not necessarily possible” 37980MDM1_PNews(22-28) 2001-01-23 17.39 Sida 28

WANDA WAVE

Where you want to be

“Wanda! I’ve got a great idea! It’s a new wireless data ser- more than one occasion. Perhaps I was being unfair by con- vice that’s going to make us both rich,” said a voice on the centrating on the venture capitalists and market makers and other end of the phone that I recognized as my nephew ignoring the story right here in my own family. David. Frowning slightly over this interruption, I tried to “Great, Wanda! I know you’re going to think it’s a re-focus my thoughts. My nephew was a sweet boy, but an brilliant idea, and I’m sure I can count you in from the SMS message coming in simultaneously on my cell phone start. Now when can I expect the check?” said David, reminded me that someone more important was probably speaking so fast that I felt slightly dizzy. trying to get in touch with me. “Not so fast, David!” I said, finally letting myself relax “Wait a minute, David! You’re a student. You don’t and focus my thoughts on David’s proposal. “Tell me more have any money,” I said, feeling my frustration mount. A about this new wireless service and how it will be hosted. I beep sounded, indicating that new data had arrived on my mean, the name is intriguing, but what does it do for me?” handheld. The venture capitalists that I was working with “It tells you where you want to be right now,” said for the articles on investing in Mobitex moved pretty fast, David slowing down to a pace that he obviously thought and David was slowing me down. appropriate for a 30s-something who needed to be stepped “That’s why I’m calling you, Aunt Wanda!” said David through things slowly. “We put together a profile like the in a voice that told me he was putting on his most charm- one you just opened. Then, based on your location, we try ing smile. “My new wireless service is called ‘Where you to suggest places for you to visit, or even just to think about want to be,’ and it’s on your phone right now. Just check visiting. Our focus groups have found the service both that SMS message that came in a few seconds ago.” entertaining and relaxing during a busy day.” “Please, David! I have a job to do,” I countered, already “OK. Then I just have one final question. Why a cap- pressing the buttons on my phone to retrieve the SMS mes- puccino at Wayne’s,” I asked. sage. Of course, now that I knew that it was from David, I “We know that you’re planning to go skiing Italy, and figured that it wasn’t important, but I was nonetheless sur- that particular Wayne’s has some really nice posters from prised to be informed that I wanted to be at Wayne’s sip- the Italian Alps. Of course, they’re also one of our sponsors, ping a cappuccino. which brings me back to my original question about an “Yes, I know, Wanda, and I’m sure you’re making lots investment,” said David. of money as a consultant, too,” said David with what I “Yes, about my investment,” I said, wondering how to detected as a slight note of irony in his voice. “But if you’d let David down gently. “That skiing trip is going to cost me just check the e-mail I sent you and open up the attachment a bundle, so I thought maybe if you’re issuing options…” that shows you the form for your personal profile, we could start talking about why I called, which is to ask you to help finance my new wireless Internet service.” “All right, David. I’ll open it,” I said, trying to hide my exasperation. David was a very bright student, and he had certainly demonstrated an entrepreneurial spirit on