Despite highly publicized launches of consumer-oriented products and services, the mobile enterprise market remains a hotly contested segment for wireless carriers as evident by numerous announcements made during the past several weeks. However, analysts warn that carriers need to refine their efforts if they want to see solid financial returns on their initiatives.
Verizon Wireless expanded its mobile enterprise offering with a new wireless e-mail application, new data pricing for its high-speed data network and the long-rumored launch of palmOne’s Treo 650 smart phone.
The new e-mail application, provided by Intellisync Corp. and branded by Verizon Wireless as Wireless Sync Workgroup and Wireless Sync Enterprise Server, allows behind-the-firewall e-mail, calendar, contact and tasks to be pushed to mobile handsets.
Wireless Sync Workgroup is designed to handle up to 20 users, while Wireless Sync Enterprise Server is designed to support thousands of users. Wireless Sync Workgroup also allows enterprises to secure mobile devices and disable lost or stolen devices using over-the-air technology.
Verizon Wireless said the e-mail applications would also be available this summer on the Samsung Corp. SCH-i730 smart phone, which uses Microsoft Corp.’s Windows Mobile Pocket PC Second Edition software.
Analysts noted the new software was a good move by Verizon Wireless in that it provided a solid foothold for large enterprise customers, but noted rival carriers have already launched similar services.
“Although Wireless Sync Enterprise Server is a welcome enhancement, Verizon Wireless is late to market with a behind-the-firewall BES alternative,” noted industry research firm Current Analysis. “Cingular and Sprint have been offering a Seven-based server product for nearly a year. Verizon customers with non-[Research In Motion Ltd.] devices have not been able to do any centralized management devices or enforce any security policies.”
Verizon Wireless also lowered the price for unlimited monthly access to its CDMA2000 1x NationalAccess network from $80 per month to $60 per month. The carrier noted the network is available to thousands of cities and towns across the country and provides network speeds of between 60 kilobits per second and 80 kbps with bursts of up to 144 kbps.
The pricing change differentiates the carrier’s 1x network from its higher-speed EV-DO BroadbandAccess network, which remains priced at $80 per month and offers network speeds of between 400 kbps and 700 kbps with bursts of up to 2.4 megabits per second. The EV-DO network covers 32 markets across the country. EV-DO devices are backward compatible to the 1x network.
Most carriers continue to charge between $70 and $80 per month for unlimited access to their high-speed data networks, although T-Mobile USA Inc. charges only $30 per month for access to its nationwide GPRS network.
Verizon Wireless also said it expects to introduce new data pricing options this week for its BlackBerry and PDA/smart-phone data plans. The new plans will provide 10 megabytes of data transmission for $30 per month and unlimited access for $50 per month. Customers who add data plans to the carrier’s America’s Choice calling plans starting at $40 per month will also receive $5 per-month discounts on their data plans. Verizon Wireless currently charges $40 per month for 5 MB of data transmission on BlackBerry devices, $30 per month for the same 5 MB on other smart phones and $50 for unlimited access on all devices.
The Treo 650 device, which was initially launched exclusively by Sprint Corp. last year and was recently added by Cingular Wireless L.L.C., is available from Verizon Wireless for $400 with a two-year contract. The device is compatible with Verizon Wireless’ 1x network.
Despite losing its Treo 650 CDMA-exclusivity, Sprint announced the national market launch of its Business Mobility Framework, which is designed to extend corporate applications to mobile workers using location-based services, messaging and geographic notifications.
Sprint said the BMF features presence and location notification, allowing applications to be alerted when a device is turned off or when it crosses a specified geographical boundary. The product is designed for applications involving asset tracking, fleet management and mobile-worker dispatch.
Sprint said it has teamed with Microsoft to provide the location-based technology for the offering. The MapPoint Location Server provides the latitude and longitude of a device on the network and supports Extensible Markup Language and Simple Object Access Protocol. The MLS also provides a single platform for developers to connect to multiple wireless networks.
Sprint is also readying the launch of its EV-DO network, which should help the carrier garner additional traction with enterprise customers looking to further mobilize their work forces. The carrier is expected to begin rolling out the network next month.
Verizon Wireless and Sprint are not alone in the recent attention afforded enterprise customers.
Cingular announced earlier this month a deal with Sony Corp. to embed an EDGE modem in Sony’s business-centric T-Series notebook computers. The device, which is expected to launch next month, will also include an 802.11b/g radio for wireless local area networks and a Bluetooth radio for short-range wire replacement.
Nextel Communications Inc., which is seen by many as the leading wireless enterprise carrier due to its Direct Connect walkie-talkie service, added Wi-Fi and wireline broadband capabilities through a pair of roaming agreements with Boingo Wireless Inc. and Wayport Inc. The deals provide access to more than 7,000 Wi-Fi hot spots across North America and wired broadband access in more than 150,000 hotel guestrooms.
Analysts noted that while carriers have recently ratcheted up their enterprise efforts, few have come up with a complete package that not only serves enterprise needs, but also add meaningful financial results for the operator.
“There has been a lot of action, but not a lot of traction with these offerings,” said Roger Entner, Ovum vice president of wireless telecom. “Most of these offerings bring little real value to carriers since they often have to provide bargain-basement pricing in order to compete. I think the carriers are more excited with gaining a big-name client than they are in actually making money from them.”
Entner added that carriers would be better off tempering their scattered enterprise efforts in favor of a more focused approach.
“Carriers need to find a way to bundle their enterprise offerings with wireless data strategies that are designed specifically for a company,” Entner said. “Otherwise they appear as just another face in the crowd.”
