AT&T Wireless Services Inc. and BT Wireless announced the first phase of their strategic alliance designed to create seamless mobile communications services worldwide for global travelers and multinational companies.
The carriers nine months ago announced the alliance called Advance, which complements the companies’ cooperation in the Internet and landline international markets. The two wireless companies aim to grow roaming revenues by directing as much traffic as possible onto their networks around the world, develop more simple roaming packages to stimulate usage and negotiate with other operators on the basis of pooled roaming volumes.
Until GSM/TDMA handsets become available in the first half of next year, the new offering won’t look drastically different than what AT&T Wireless offers global customers today. AT&T Wireless provides a service called CellCard, which allows customers to obtain a SIM card and handset to facilitate roaming in international Global System for Mobile communications markets.
The new offering, called WorldConnect, is about 75 percent cheaper than the CellCard offering and provides a two-way roaming gateway between AT&T Wireless and BT Wireless properties, meaning BT Wireless customers can rent a Time Division Multiple Access handset to roam in the United States, said Jordan Roderick, head of AT&T Wireless’ international activities. Calls made and received appear on the customer’s home wireless bill using the same home-calling-area phone number.
“From a BT Wireless perspective, we’ll be coming into the U.S. for the first time,” said Terry Valeski, chief marketing officer for BT Wireless. “You have major cities and everywhere coverage in the U.S. market as opposed to the more spotty GSM service.”
AT&T Wireless and BT Wireless have the protocol converter between their TDMA and GSM systems in place as well as a billing system able to convert billing records between the two companies. The companies also have hammered out a number of international roaming agreements. Roaming is now available in about 100 different countries. The two carriers cover about 1 billion potential customers with about 60 million combined customers today.
The companies now are waiting for the GSM/TDMA handsets, which Siemens AG and Motorola Inc. have publicly committed to build and have commercially ready by the first half of 2001.
In addition, BT Wireless has launched a corporate e-mail service based on Microsoft Outlook for its business customers using the AT&T PocketNet brand. Seamless data services, however, won’t come until carriers build out data-intensive networks. AT&T Wireless and BT Wireless are moving toward the same core Internet Protocol network with AT&T Wireless’ migration to Enhanced Data rate for GSM Evolution (EDGE) technology in the United States and BT Wireless’ migration to General Packet Radio Service technology for its GSM properties.
“We aim to have global roaming of data at the very start,” said Roderick.
Global roaming is not a large priority for most U.S. operators since usage is very low, said Phil Redman, senior analyst with Gartner Group, a firm that consults large corporations on wireless purchases.
Nextel Communications Inc. has introduced a GSM/integrated Digital Enhanced Network handset for roaming with Europe. U.S. GSM operators have hammered out numerous deals with their European counterparts, while other operators have rental services in place.
“It’s recognized as a small market,” said Redman. “When asked about international services, carriers usually say that one out of every 1,000 users have a need for international service. If they do, there’s not usually one carrier that can offer services for all of their needs … No one has found the right combination to meet the needs of all international roaming customers.”
However, global wireless services are quickly becoming a key piece for many telecom operators wanting a global play in all segments of the telecommunications market. AT&T Corp. and British Telecommunications plc already have undertaken a variety of global initiatives within the last two years, including Concert, a $10 billion global venture designed to serve multinational businesses, carriers and Internet service providers. Global telecommunications companies want to be the full-service provider to the 500 or so global accounts available worldwide, say analysts.
