News
Issue #2002 - 42 (November 2002)
(Updated Nov. 5, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

"Good Old" Mobitex Network Gets Installed in China, In Spite of 3G

Mobitex Operators Association Says - Mobitex Not Only Chugs Along But Expands

SEOUL, October 23, 2002 - Two new wireless data network that will operate in the People's Republic of China were formally introduced today at the annual meeting of the Mobitex Operators Association (MOA), the worldwide trade and business development organization for the Mobitex wireless data technology. Also at the four-day meeting being held at the Sheraton Walker Hill Hotel & Towers, the Korean device and applications provider CNI (Communications Network Interface, Inc.) showcased its newly launched TWMK mobile messenger and "Mobitalk" communications service targeted to young adults. 

Telecom Digital has now officially launched its Mango Mobitex-based network and "Mango Tango" service in Hong Kong. Mango Tango provides bilingual e-mail, WAP, SMS, Personal Information Management and games. The Mango network, which covers 98 percent of outdoor areas in Hong Kong, also supports a host of enterprise applications.

"Mobitex continues to grow around the world at a time when next generation cellular networks have failed to gain market momentum," noted MOA President Andrew Fitton. "In addition to China, two new Mobitex networks have made their debut in Brazil in the past 12 months and we're seeing strong interest from prospective Mobitex network operators in every region of the world. 

Sky Networks Communications Group is deploying a Mobitex-enabled wireless data network initially capable of serving nearly three quarters of a million subscribers in Beijing, Shanghai, and other major cities in the northern regions of the country. A presentation at the meeting outlined several innovative applications including telemetry, public safety, and public transportation which Sky Networks is deploying for new customers.

"Mobitex's growth goes beyond the deployment of new networks," Mr. Fitton said. "During the past four years, our subscriber base has tripled and network usage worldwide has quintupled. All of this activity is a testament to the fact that Mobitex is a proven wireless technology that's built solely for data, is ideally suited for business use, and presents customers and network operators alike with numbers of key advantages."

Mobitex, developed by Swedish communications giant Ericsson, is a leading international open standard for dedicated wireless data with 30 public and private networks providing coverage in 24 countries worldwide. Mobitex is an all-digital, packet-switched radio technology that provides for a single integrated network that is cellular in design with distributed intelligence. It provides an always-on, highly secure environment, the highest levels of reliability, fast data delivery in seconds, the longest battery life in the wireless industry, true push functionality and extensive, seamless coverage.

CNI's new, state-of-the-art TWMK mobile messenger and Mobitalk made its debut at the Seoul meeting and was distributed to each of the nearly 100 attendees to be the first to experience the power of the new service. Mobitalk, which operates on the TWMK and is targeted to the under 30 market, features such capabilities as access to multiple POP3 e-mail accounts, the ability to chat through such services as messaging, instant messaging and SMS, and games. 

The TWMK and Mobitalk service is commercially available in Korea now. The device and service also are being developed for future deployment on Mobitex networks worldwide.

The Mobitex Operators Association (MOA), headquartered in Bethesda, MD USA, is the worldwide trade and business development organization for Mobitex wireless data network operators, hardware manufacturers and customers. MOA is dedicated to expanding the global reach of Mobitex, developing and maintaining international standards for Mobitex, and promoting the continued development of applications, service, solutions and devices for Mobitex networks around the world. 

For more information: http://www.mobitex.org

MobileInfo Comments and Advisory: We were pleasantly surprised to find that Mobitex network is not only alive, but it is growing. As a result, we interviewed Jack Barse, Executive Director of MOA who filled us in on the status of Mobitex. In this day and age when 3G is the buzz word, 143 Kbps wireless data speed is considered insufficient for sending MMS messages with video clips and 1-5 MHz band is  spectrum requirement for new breed of wireless networks, Mobitex's 8 Kbps speed is considered awfully slow on the first glance. But a more reasoned analysis of "what does work" shows that Mobitex wireless network has a respectable place in the enterprise, even today. Here are some facts for enterprise wireless IT professionals to consider:

• There are over one million Mobitex subscribers around the world, with a majority of them (70%, according to Jack Barse) in USA. The number of networks and subscribers are growing.
• Some of the most mission-critical business applications including Blackberry messaging are still running on Mobitex. We also mean financial POS transactions, dispatch, CRM, telemetry and public safety queries where amount of data flow is limited and response time requirements are stringent. We do agree with our 3G enthusiasts that Mobitex is not meant for wireless entertainment and MMS. 
• Mobitex network is supported by a good variety of handheld wireless data devices - Blackberry, Palm, laptops and function-specific Symbol devices.  
• Mobitex networks are turning in a profit for most of the operators. While Cingular witnessed a loss in their cellular subscriber base in 2001, their Mobitex subscriber numbers did, in fact, increase. And for Ericsson, Mobitex business unit (approximately 150 people) is quite profitable business unit.
• Measly 8 kbps speed of Mobitex is quite adequate for many online POS and financial transactions when the application dialogue is fine tuned. It returns the required information to these queries without the superfluous and low-value graphics in most cases in 10-12 seconds. Of course, Mobitex network is not suitable for large file transfer type applications. 
• Since it is an all digital packet-switched data-only network, users do not have to compete for the same bandwidth with voice subscribers. Since it has been around for over ten years,  it is also a very reliable network and provides good coverage in those areas where it is available.
• Mobitex is a survivor at a time when 3G plans have been derailed quite a bit, GSM/GPRS uptake is slow, CDPD networks are being discontinued and Motient network based on Motorola's Datatac technology is having business continuance problems. Only Nextel's iDen network seems to be doing well.
• While we want 3G initiatives to succeed, want more wireless capacity to be unloaded in the market and like integrated voice/data devices to meet the needs of mobile professionals who do not want to carry two devices, we also are pragmatic in recommending that wireless IT professionals should consider Mobitex-like pure data networks for tactical solutions to their business problems. 

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.