WASHINGTON – Bell Atlantic Mobile President Dennis Strigl predicts that wireless data will account for a greater proportion of system operators’ business in coming years, but cautioned industry against over reaching itself.
“Frankly, I don’t think most people have any idea of what we have here and how quick this market will move,” said Strigl, the keynote speaker at the Wireless Datacomm conference held earlier this month in Washington, D.C.
BAM, a subsidiary of Philadelphia-based Bell Atlantic Corp., is a leading proponent of cellular digital packet data, or CDPD, technology.
The police department in Groton, Conn., recently installed a BAM wireless data network. Others like it have been operating for months in Baltimore, Washington, D.C., and Pittsburgh. As such, Strigl said local and regional applications are relatively easy to implement, enabling carriers to serve customer needs today. The applications also can evolve toward creating a national data network.
“Once our customers understand what we have and what to do with what we have, when back-room entrepreneurs start using our products, when they understand what the systems are capable of transmitting, customers will tell us what to do with the products and services that we provide,” said Strigl.
Rather than waiting for an industry standard for wireless data to be proclaimed, according to Strigl, wireless carriers should move ahead with CDPD technology today. Strigl said he hopes CDPD technology will become the industry standard and that personal communications services licensees will adopt it as well.
Initially, cellular operators devoted too much attention to high-end voice customers at the expense of wireless data development, Strigl charged. The marketing strategy for wireless data will be different than it was for cellular voice, stated Strigl. Instead of pushing image, he noted, BAM intends to sell solutions to problems now.
Partnering with firms that have different expertise has helped BAM develop wireless data, Strigl noted, adding that strategy should work well for other carriers. In addition, Strigl said cellular companies have sufficient capacity to offer wireless data and voice services but conceded it is an engineering challenge to do both.
Strigl made some candid observations about the personal communications services that will compete against cellular service offered by the BAM-Nynex Corp. partnership. “In the old days in the cellular business, I don’t think there was nearly enough competition,” said Strigl. “Now, the (Federal Communication Commission) has seen fit to fix that situation. That’s where PCS comes in. I think we’ll see it at lower prices than what we see today.”
Strigl says he anticipates up to six wireless competitors in each market. “I think it will be difficult early on for any PCS provider to be as competitive as a cellular carrier, but in the longer term I wouldn’t write anybody off,” said Strigl.
Manufacturers, he predicted, will produce wireless phones in coming years that operate between 800 MHz cellular and 2 GHz PCS systems.
Noting early, high-stakes bidding for a broadband PCS license in New York by Craig McCaw, who with his brother sold their cellular dynasty to AT&T Corp., Strigl said, “You will see people who understand the wireless business getting spectrum, and I can tell you that bodes well for competition.”
