for Aether Systems, DCI Summit on Wireless, August 2000 

WHILE CONSUMERS SLOWLY MOBILIZE,

DEMAND FOR WIRELESS DRIVEN BY BUSINESS SECTOR

In today’s rapidly evolving technology marketplace, businesses and consumers are looking for new ways to accomplish old tasks. However, as we’re all constantly bombarded with new choices and new promises that technology products will be the genuine “next big thing,” it’s hard to determine which promises to believe. Recognizing which technologies are here to stay and will impact our daily lives – save time, money or keep us connected to family, friends and useful information – has been a challenge for the American consumer who hears a lot of hype yet sees the NASDAQ continue to sag with broken tech promises.  Like other technologies just taking off, wireless has some people scratching their heads and waiting.

In reality, wireless technologies are building momentum in the business arena and already are fulfilling their promise.  The temporary disconnect that consumers in the U.S. face is based on their expectations that they should experience the same look, feel and performance from a handheld device that they enjoy from a Web browser on their PC.  Although the wireless industry hasn’t achieved the aesthetics consumers expect, there are many viable applications running on wireless devices and solving problems for businesses across all industries.  Businesses are able to see past the current physical limitations as wireless devices contribute to their bottom line—making them faster, more flexible and more competitive. As industry continues to build a convincing case for wireless solutions, the consumer market will follow, contrary to what some researchers and pundits suggest.

Ovum Research predicts 322 million users of wireless phones with web-surfing capabilities, and 373 million wireless shoppers, by 2004. Furthermore, in Europe and Asia, where the GSM wireless standard reigns and an entire generation of kids are learning to surf the Web on handheld devices, bypassing the PC altogether, the wireless market is surging. Despite the lag in the United States to adopt wireless capabilities, Current Analysis wireless researcher Eddie Hold says U.S. wireless providers now “have an opportunity to take a giant leap forward, overtaking and possibly surpassing Europe” in adoption and implementation of wireless.

While some companies talk the talk of “you will” to consumers, other wireless infrastructure and services companies, are walking the “you can” walk with businesses, large and small, who already understand and are experiencing bottom line benefits of integrating wireless technology into their enterprises… today. 

For example, Aether Systems has developed a wireless transportation and logistics system for Office Depot’s 100,000 daily shipments that gives businesses the ability to check real-time status of their packages via www.officedepot.com; for drivers to capture electronic signatures confirming delivery; and for Office Depot to offer superior customer service.

Healthcare providers are using wireless technology to send and receive the most up-to-date patient information from any location inside or outside of the hospital. The transportation logistics and delivery industries are using wireless systems to communicate with geographically scattered mobile fleets, to monitor inventories and track deliveries. Retail, government, field service and other industries also are implementing wireless technologies to reduce costs, minimize errors and increase productivity.

Even the Navy has jumped on board. Last month, the Navy struck a deal with Aether to provide sailors with advanced mobile computing devices.  Commenting on the partnership, Naval Surface Force Commander Henry C. Giffin said wireless technologies not only increase combat readiness, but they also enhance the quality of service. “As we build the Navy of the future, we have to look for new and innovative ways of doing business, and I think this is a significant step in building the 21^st century Navy.”

Another way in which wireless applications will permeate the consumer market is that those same businessmen and women who use wireless handhelds during the workweek will be inclined to use more mass-market devices on the weekends. The cell phone first appeared as an expensive “productivity tool” for business use, with most people first encountering them through their employer, says Patrick Callinan of Forrester Research. Similarly, most of us first began using email through our jobs, demonstrating not only that business use often leads to personal use, but also that consumers are becoming more comfortable with the concept and use of Internet tools. In fact, email has eclipsed word processing and game playing on home computers indicating that the Internet has already become a significant part of our lifestyle. Forrester’s claim that three out of every four US households will have at least one Internet-capable device by 2005 reinforces this browser-centric view.

This is a good sign for wireless. Because, while average consumers continue to get comfortable with wireless, the gap will steadily close while long-established, trusted companies continue moving mission-critical operations and data onto wireless platforms. An amateur investor might have misgivings about trading securities over his or her Palm Pilot. But that same investor might begin to feel confidence after reading about Morgan Stanley Dean Witter’s TradeRunner, believing that if a company so widely recognized is confident using wireless, the technology must be mature enough for the individual user.

The future of business clearly is in wireless.  For consumers, it may take longer than expected before the average American embraces the idea of surfing or purchasing from the wireless Web or buying a soda from vending machines with a handheld device. According to technology analyst firm Forrester Research, there is demonstrated latent demand in the consumer market.  Meanwhile, businesses – from financial services and manufacturing to healthcare and public safety – are relying on wireless devices to make an immediate positive impact to their workforce productivity and their bottom line.