America's 3rd Generation (3g) Wirless Race 10/2001

What does it mean for the customer?

With all the unknowns surrounding 3G, why would companies rush to develop applications for a technology with competing standards and loads of implementation difficulties? The answer is in the possibilities presented by 3G. Potential applications range from streaming video, full-scale multimedia, and integrated voice and data services. 3G enabled devices, such as PDAs and mobile phones, will serve the functions of a video camera, computer, radio, pager, stereo, and telephone combined. Consumers will be able to combine voicemail and email messages in a single mailbox. They will be able to read or have their email read to them by their mobile device.

Mobile Internet services provide perhaps the biggest attraction for mobile customers. Applications such as web browsing, email, stock tracking, and airline reservations are just the tip of the iceberg. Mobile window-shopping, videoconferencing, and global roaming will be included in the next generation of applications. Mobile Commerce (m-Commerce or m-Business), the concept of carrying out financial transactions seamlessly over mobile devices will help to spread the growth of 3G services. Wireless application providers are banking that the following services will become widely popular among mobile users.

• m-shopping - The ability to browse and make purchases on the Internet via a mobile device.
  
  
• Audio and video downloads - With the recent emergence of high quality compression protocols, such as MP3, music and video will be easily downloaded to a mobile device. The consumer will then be able to watch video or listen to music on their handheld.
  
  
• Playing games/meeting others - 3G will permit interactive, real time game playing. Users will be able to interact with others from across the globe. Mobile users will likely access game sites hosted by service providers.
  
  
• Location aware alerts - Third generation wireless devices will be "location aware". This means that the devices will have the capacity to identify their exact physical location. This will be accomplished through either a built-in Global Positioning System (GPS) or through the process of "triangulation" between network base stations. Application and service providers will use this information to provide the user information that is relevant to their location. For example, an airline service might send a passenger directions from their hotel to the correct terminal.
  
  Such services offer huge potential in the areas of mapping, driving instructions, parking locations, retail-outlet identification, localized advertising, traffic reporting, weather, and more. These services are also expected to one-day overlap with transactional capabilities. If someone can locate a parking spot, why not reserve and pay for it in advance? As a consumer walks through the mall they may receive sale notifications, matching their profile, from the stores they pass.
  
  
• Virtual Ticketing - Experts predict that 3G technology will eventually allow consumers to use their mobile device to gain entry to anything from airport check-in to a theatre or cinema. However, the events of September 11th, 2001 will hamper any quick advancement in this form of "virtual airline ticketing". The concept behind virtual ticketing works like this: The customer purchases a ticket over the mobile Internet and is issued a virtual pass. A compatible device at the gate or entrance reads the handheld's virtual pass.
  
  
• Multimedia messaging - 3G enabled phones and PDAs will be able to send and receive messages that incorporate text, video, photos, animation, sound, and video clips. Many expect that mobile devices will soon begin to incorporate the functions of a camera or video camera.

However, the current lack of availability of mobile devices that can handle such applications has slowed the implementation of 3G services. Currently some 3G enabled handsets cost around $300, add to that a monthly service fee and it makes some consumers hesitant to rush out and get the newest devices. Equipment manufacturers aren't the only ones who need to speed up 3G development. Application developers must also get work in order to make up for the current lack of 3G applications available for handhelds. However, one can hardly blame these manufacturers for the delayed development and release of products. Demand drives supply, and until a sufficient 3G network is established in the U.S., there will be little demand.

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