The mobile industry has seen considerable growth over the past 10 years fueled by consumers flocking to the advances made in mobile devices and the corresponding lowering of costs associated with owning such devices. However, with wireless penetration nearing 100% in the United States, and far exceeding that amount in a number of Asian and European markets, the industry is looking for different device types to help continue fueling growth.
A number of prognosticators have forecast tens of billions of devices will be connected to mobile networks in the coming years, with many of those being current consumer electronics that will see their usability blossom with the addition of mobile connectivity. One company that has played in the space since its inception is Option Wireless Technology, which following a recent slump in its operations, appears set to reignite growth on the back of this explosion of connected devices.
Option’s CEO and founder Jan Callewaert recently provided RCR Wireless News with some insight into how the company sees the space and its position in the market evolving.
RCR Wireless News: What are some of the biggest challenges for Option in the market at this time?
Jan Callewaert: The mobile broadband space is in a time of rapid change and intense competition – moving from 3G to 3.5G and, gradually, to 4G at the same time as a multitude of embedded connected devices appear. This represents a great opportunity to deliver on the promise of ubiquitous connectivity. Option’s goal has been to work on solutions that deliver “anytime, anywhere, easy access to information.” This is what we have been doing since 1986 and are now in a strong position to help companies, carriers and manufacturers, bring those solutions and products to market faster than any other company. One key challenge for Option is to continue delivering differentiated solutions in a highly competitive market and to make sure that the “time to market” is right.
RCRWN:M Ericsson made a big splash with its “50 billion connected devices by 2020” claim a year or so ago. How does Option see the world of mobile connections developing?
JC: Mobile connected devices are clearly a huge opportunity. The opportunity can also be found in different industries: automotive, health-care, machine to machine, mobile computing devices, household appliances, etc. We are still in the very early stages of the transition to connected devices – many advances are still required to fully realize the whole potential. Device design, integration and certification, software integration, usability, service activation, provisioning and management as well as advancements in business models are necessary for this future potential to be realized. We came up with some of the solutions already like our GTM601 embedded module, the size of a nickel, superior heat-dissipation (ideal for fan-less thin devices) and very low power consumption. But also in the software arena we’re making very good progress looking at our uCAN connection management software.
RCRWN: What sort of challenges do you see with the possibility of an increasing number of devices or appliances containing mobile Internet access and consumers’ willingness to pay for such connections?
JC: We could name a few: the relevancy of the information to start with. If the content is not relevant to the user they will not buy it. The cost of network connection is another important factor that still needs more attention. And then there is the business model: how do we provide value to everybody: user, carrier, manufacturers of devices, etc. Carriers are exploring new business models so that consumers can manage multiple connected devices. These new models are emerging now but will evolve and mature over time. The practical usability must also be improved so that “it just works” and the friction of user configuration and control is eliminated.
RCRWN: What sort of impact has the move towards LTE as the standard for the next generation networks had on your operations?
JC: Option is well positioned for the transition to LTE as the 4G standard. We have been on the forefront of technology changes before: from 2G to 2.5G to 3G to 3.5G. LTE is next in line. Having said that: devices must now support at least three separate radio technologies and often over seven different antenna and band configurations. Engineering usable solutions is, as stated earlier, what we have been doing all along and are still doing. This is a key competitive strength at Option.
RCRWN: How have wireless carriers in general reacted to this broadening of devices that can connect to their networks, but are not necessarily being sold through their direct sales channels?
JC: Very positively. In North American all the major carriers are putting focused efforts toward embracing these new models. While there are new challenges to be addressed with the new models, Option is very well qualified to help carriers connect these new devices to their networks. Carriers everywhere are focused on making their infrastructure as profitable as possible. More devices, means more connections, which means more revenues. Option has developed some innovative software solutions that will enable carriers to efficiently connect and manage these new devices while at the same time protecting them from applications that potentially misbehave and impact network availability and performance as was seen in several carrier incidents last year.
