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[Technology Report]

$ell Phones: The Unstoppable Market


Advances in style and substance continue to raise stakes and sales in the handset industry.

Louis E. Frenzel  |   ED Online ID #15838  |   June 29, 2007

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Dual-Mode Phones
If you feel out of touch, you'll appreciate the growing number of dual-mode phones that offer the usual cell-phone service plus voice over Wi-Fi or voice over wireless local-area network (LAN). With this feature, users can make calls via any Wi-Fi access point in an enterprise system or via any public hotspot if their cell service is spotty or unavailable.

Dual-mode technology also gives you another way to get e-mail or access the Internet. Enterprise customers are prime candidates for dual-mode phones. Cellular coverage inside big buildings often can be marginal, while Wi-Fi access points are almost ubiquitous. The dual-mode phone could serve as the employee's only company phone.

Facilitating this trend is the relatively new Generic Access Network (GAN) standard. Previously known as Unlicensed Mobile Access (UMA), this system implements seamless handover and roaming between the normal cell-phone wide-area network (WAN) using the licensed spectrum and a wireless LAN typically using Wi-Fi 802.11a/b/g on the unlicensed spectrum.

GAN is the standard of the Third Generation Partnership Project (3GPP) that standardizes 3G WCDMA. The system works with GSM/GPRS and WCDMA networks. The unlicensed segment may be Wi-Fi or Bluetooth. This system enables regular GSM/WCDMA cell-phone services over a hotspot or other Wi-Fi access points.

Putting Wi-Fi in a handset significantly increases the power burden. Frequent recharges may be worth it, though, for users who need to stay connected. Wireless carriers used to hate this option, but they seem to have changed their position as they find ways to make some extra dollars. For T-Mobile with its 8000 hotspots, this is a good business decision. AT&T and Sprint Nextel are considering such service, but it remains to be seen if Verizon will follow suit.

Femto Cells
A femto cell is a small 3G cellular basestation designed primarily for the home or small business. It's part of the evolution of ever-smaller cellphone basestations, as they shrink in size and price to improve in-building or hostile environment connections. Standard basestations are now called macro cells. Meanwhile, the smaller micro and pico cells, which have been around a few years, make sure handsets stay connected in crowded buildings or "urban canyons."

As for the femto cell, it will help consumers with poor or no cell-phone service at home get a connection. Back-haul will come via the consumer's DSL or cable TV broadband connection.

Femto cells may also be part of a combination cell-phone basestation and Wi-Fi home networking router box. They're still in the evaluation and development stages—carriers still must figure out how to deploy them and make additional income. Look for these to become a niche out beyond 2010.

Near-Field Communications
NFC uses the near field (magnetic field of an electromagnetic radio wave) to connect wireless devices no more than a few inches apart. It's being incorporated into cell phones so the handset can be used like a smart card for credit-card charges with any type of purchase.

This trend is growing quickly, as more retail establishments install smart-card/NFC readers and back-office systems. Consumers are finding this a significant convenience and time-saving feature. It makes mobile banking a reality when no branch banks or ATMs are available. NFC will eventually be useful as a way to provide entry to, or payment for, other services like transportation and entertainment.

Location-Based Services (LBS)
Most phones are supposed to have GPS or some other location capability to meet the E911 emergency location mandate. However, these features can also be used to provide other location-related services. Sprint Nextel and Verizon offer maps and location services similar to the latest GPS receivers. Eventually, all cell phones will incorporate GPS and all carriers will provide some type of location service, if they can figure out how to make extra income.

Built-In FM Radio
FM radio isn't as retro as you may think. Everyone still listens to it in some form. Putting an FM radio in a handset has become inexpensive and easy thanks to the arrival of single-chip FM radios. Silicon Laboratories also offers an AM and FM single-chip receiver that could be popular if the antenna problem is solved successfully. It will be interesting to see if this trend will eventually include digital satellite radio or HD radio on the AM and FM bands.




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