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An INTERTEC®/PRIMEDIA Publication MARCH 29, 1999
<br /> TELEpHriwNy .
<br /> www.internettelephony.com CARRIERS, CONVERGENCE &COMPETITION
<br /> ©ETWORKS
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<br /> J Metricom suits up for national play
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<br /> High speeds and flat rates differentiate operator
<br /> NANCY GOHRING
<br /> finetricom is implementing some Cahner's In-Stat Group. Cellular digi- ny had to work with 1300 munici-
<br /> changes that should make its tal packet data (CDPD) offers lower palities to gain buildout rights in
<br /> attractive concept even more data speeds,and many CDPD opera- the 14 cities where it hopes to build
<br /> attractive—to both investors and tors charge based on the volume of by the second quarter. "It's a painful
<br /> potential customers. The mobile data that users transmit, making it process," Firth said.
<br /> wireless data service provider recent- difficult for users to predict expenses. Metricom recently changed its tar-
<br /> ly tweaked its focus and soon will Until operators deploy third gen- get customer from consumers to
<br /> implement a second generation tech- eration networks, few can compete business people, trimming some dis-
<br /> nology. It's also seeking partners to with Metricom's offering. tribution costs and continuing a
<br /> support future growth plans. "Metricom has a window of rapid rate of customer acquisition.
<br /> Ricochet II, the new technology,
<br /> will offer 128 kb/s data rates at HOW RICOCHET WORKS
<br /> mobile speeds of up to 70 miles per
<br /> III hour. The current system, which a
<br /> offers 28 kb/s rates,consists of pole-
<br /> ,Metrocell radios
<br /> top radios, fixed usually on street treef
<br /> lamp poles,which can only listen or
<br /> lights u oles
<br /> talk. "They can't do both simultane- Wired
<br /> ously,"said John Wernke,senior vice ' access Internet,intranets,
<br /> president of marketing and sales. point LANs, ISPs
<br /> The new system, which will still • - ':-.'t
<br /> use the unlicensed channels in the '
<br /> 900 MHz frequency band,will listen ,EgModem radio — -
<br /> and talk at the same time. In addi- , Computer device
<br /> tion, radios will communicate with
<br /> other pole-top radios and a wireless
<br /> access point using the licensed wire- opportunity,"said Nagi Jaffery,wire- Attracting the current 27,000 cus-
<br /> less communications services spec- less analyst for Dataquest. If it can tomers with only three cities built is
<br /> trum—the 2.3 and 2.4 GHz fre- deploy widely before the 2003 time quite impressive, especially corn-
<br /> quencies. "We added capacity by frame, it has a chance of being suc- pared with other data networks with
<br /> dual-banding them," Wernke said. cessful. In fact, Dataquest projects near national coverage. "Despite the
<br /> Ricochet II also will eliminate that Metricom will have 1.2 million fact that they have limited reach,
<br /> some latency issues on today's net- subscribers by 2003. they have been quite successful in
<br /> work. Currently, information hops Metricom offers service today attracting customers,"Jaffery said.
<br /> two to three times along pole tops only in San Francisco, Seattle and Metricom recently announced a
<br /> before it reaches the wireless access Washington, D.C. The company relationship with NationsBanc
<br /> point. Using the higher frequencies intends to change out the existing Montgomery Securities for assis-
<br /> allows most connections to be made slower speed systems there and tance in finding strategic partners,
<br /> with only one hop. build out in 50 cities within two mainly to obtain financing.
<br /> The new high data speeds, cou- years. That's no small feat, though. In February 1998, Paul Allen's
<br /> pled with a flat pricing scheme, sets In order to build out in a region, investment company, Vulcan
<br /> Metricom apart from competitors. Metricom must negotiate with town Ventures, invested $55.8 million in
<br /> • Users pay$29.95 a month for unlim- councils for permission to hang Metricom for a 49.5% ownership.
<br /> ited use without roaming charges. radios on utility poles. Backing by such a high-profile
<br /> "Speed and the bucket are Although Metricom has it easier investor should help convince pos-
<br /> Metricom's biggest advantage," said than traditional mobile operators sible suitors of Metricom's value,
<br /> Fran Firth, senior analyst for that must build towers, the compa- Firth said. :e:
<br /> Reprinted with permission from the March 29, 1999 issue of Telephony®
<br /> Copyright 1999, Intertec Publishing,A PRIMEDIA Company,Overland Park,KS.All rights reserved.
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