L.M. Ericsson led the stampede of companies that introduced Bluetooth products in the past few weeks, but some industry experts believe it will be several years away before consumers embrace Bluetooth products.
“All the talk is based on technology, not on the use of the technology,” said Phillip Redman, senior analyst with the Gartner Group.
From the CommunicAsia show in Singapore, company after company announced new partnerships and technologies, including chipsets, PC cards and mobile phones, all in the name of Bluetooth. Ericsson unveiled two handsets-the triple-band, Wireless Application Protocol-enabled T36 and the triple-band General Packet Radio Services R520. However, Ericsson said neither will be available until the fourth quarter of this year or the first quarter of 2001.
“The middle to end of next year we’ll see more products, but they will be add-ons. Integrated products are still 18 to 36 months away. The other end is, where is it going to be used? The adoption part is going to be slow, ” Redman said.
Bluetooth originally was developed by Ericsson as a wireless cable replacement technology that could be embedded in mobile devices and allow these devices to communicate with each other within a 10-meter range. Ericsson and other members of the Bluetooth Special Interest Group created the Bluetooth specification in 1998 and officially released it in July 1999.
Since then, a steady stream of Bluetooth products have been in development, but only a handful, including headsets and wireless earpieces from Ericsson, have made it to fruition. This creeping pace is one a several obstacles the Bluetooth community is facing in its push to get Bluetooth devices in the hands of consumers.
Perhaps Bluetooth’s biggest problem is the frequency in which it operates. Wireless local area networks and Bluetooth both operate in the 2.4 GHz frequency band. Interference between the two is a problem, and consequently Redman said he thinks some wireless LAN operators might try to ban Bluetooth. At the same time, opportunity exists for wireless LANs-which operate under the Institute of Electrical and Electronics Engineers’ 802.11 protocol-and Bluetooth devices to work together.
This potential interoperability raises concerns as to whether Bluetooth has enough capacity, Redman said. Bluetooth supports data rates up to 1 Megabit per second, which is adequate for most device-to-device transmissions, but is inadequate for larger data files.
“It’s going to be interesting to see if Bluetooth can handle that type of capacity,” Redman said. “Those companies that are looking to extend their LAN will probably go to the 802.11 standard.”
Another obstacle standing in Bluetooth’s way is the cost of the chipsets. A Bluetooth-enabled phone today costs $25 to $30 more than a non-equipped phone.
The Yankee Group said it believes the economics of Bluetooth are such that the industry is more than a year away from commercial viability.
“Chipsets must decline from their current level of $25 to less than $15,” said The Yankee Group in its report, “Wireless State of the Union: The New `Integrated’ Wireless Industry.”
“Volume is going to control costs, and as volume increases, the costs will decrease,” Redman said.
Little doubt exists that someday Bluetooth will be a widely used technology, but Redman warned much of the Bluetooth chatter today is hype.
“Beyond the technology there needs to be serious discussions about the user applications,” Redman said.
Some practical Bluetooth applications that have emerged from the clutter include in-home communication. “Bluetooth is best suited for devices that travel in and out of the home, and others that only must be on the network occasionally … For example, Bluetooth may be the most effective connectivity option for a refrigerator that only accesses the network once a day for 20 seconds to contact a maintenance center and provide its diagnostics,” according to The Yankee Group.
Swedish Railways announced it is working with Ericsson to conduct trials with Bluetooth technology in public environments. Bluetooth access will be provided on the central railway in Stockholm and on an X 2000 express train.
“We envision that Bluetooth access will make it possible for people while on trains to reach not only our services, but also public information resources and information resources at their work,” said Tony Nyden, manager of information technology and infrastructure at Swedish Railways.
Passengers will be able to book tickets, confirm seat reservations and access their corporate network, among other things, Ericsson said.
