News

This will be a big week for IBM in wireless ...

by Guy Kewney | posted on 22 April 2002


Nokia and IBM today announced that the two companies have signed an agreement to join forces "to expedite public wireless LAN roll outs." But there are more deals pending ...

Guy Kewney

Nokia isn't the only wireless giant to link up with IBM this week, and we expect to hear more announcements over the next five days, with Cisco and Monzoon high on the short-list of possible names, as Big Blue decides the world is ready for 802.11 in all its forms.

The deal with Nokia gives IBM engineers access to Nokia's SIM (subscriber identity module) technology for authentication. "It means that IBM Global Services will act as a system integrator of Nokia's wireless LAN infrastructure products in order to provide public wireless LAN solutions worldwide," said IBM.

But it's not exclusive on either side. IBM is almost certain to announce a deal with Cisco for the enterprise space (as opposed to the public consumer deal with Nokia) and Nokia, for its part, will continue sales of its Operator Wireless LAN solution through its existing sales channels. If there is a deal under negotiation with Ericsson (and there is, sources say) it is some way off being ready for public announcement.

IBM has done quite a few pioneering projects with wireless LAN in public spaces, including trial sites at airports around Europe; and one partner in these projects is Monzoon which was the joint contractor for Zurich airport. Other similar partners can be expected to be named in Europe.

IBM is also very excited about China as an opportunity for WLAN broadband. "It looks like China will miss the WAP nightmare, and also avoid the stage of installing 56 kilobit modems everywhere, and will go straight for WiFi broadband," said IBM's comms manager, Wynne Morris. "But the regulatory issues are all being thrown down."

Morris said: "A year ago, we were looking at this space, and saying that there was no need for this, because 3G phones were due out in 2003, 2004; and both the Governments of Europe and the big telcos were blocking it. Now, suddenly, we have the UK Government leading the way, after the Nordics of course! - and BT of all people announcing that they will promote public access WLANs; and at the same time, the hype is dying with 3G and it's looking like 2006, 2007."

IBM "does not see WLAN technolgy cannabilising third generation phones," however. A senior executive accepted that the spread of WLAN was going to provide broadband access in the prime metropolitan areas, and that by the time 3G camee along, it would be costly, but said that nonetheless, IBM saw the two technologies as "complementary." The exec added: "Exactly how they will find the money for 3G is a bit of a conundrum, but all our research seems to show that the two technolgies will work together."

At Nokia, they talked about an "opportunity to widen the accessible market for the Nokia Operator Wireless LAN solution and better serve a growing customer demand;" and Paavo Aro, General Manager, Wireless LAN Systems, Nokia Networks predicted: "The public wireless LAN service is on the verge of major growth in demand, especially from business users. Forecasts have predicted that more than 100,000 hotspots will be in operation globally within the next four years."