the voice of seamless mobility

AS BRITISH TELECOM PLC AND THE RBOCS throw their weight behind the idea of seamless mobility between cellular and Wi-Fi/wireline networks, VoIP over Wi-Fi may go mainstream as early as next year and likely by 2007.

To date, widespread VoWi-Fi deployment has been held up by a lack of appropriate handsets, the inability to migrate outside a hotspot or from network to network without having to restart a call, and a dearth of big carrier support. Now, however, dual-mode cellular and VoWi-Fi handsets finally are coming to market, and Texas Instruments Inc. has produced a reference design for VoIP and Wi-Fi chips to simplify handset development. The Wi-Fi Alliance has created a Wi-Fi/Cellular working group, and the Unlicensed Mobile Access (UMA) Consortium has approved seamless handoffs between cellular and Wi-Fi networks. And a handful of the big telcos are beginning to offer voice over cellular and Wi-Fi services.

The BT Fusion Motorola v560 Handset

ABI Research senior analyst Philip Solis says VoWi-Fi could become prevalent by 2007. “It provides natural synergies and extra revenue opportunities where there are linkages joining wireless and wireline companies such as SBC and Cingular,” he says. “So it’s a tool for bundling that also provides cheaper services to consumers.”

But probably the most watched effort in this space comes from BT. After more than a year of rumors, BT finally took the wraps off a cordless convergence strategy in June. Originally code-named Bluephone, the Motorola Inc.-created BT Fusion clamshell handset uses Bluetooth and traditional cellular networks.

Available to 400 customers now, with a wide-release launch planned for next month in England, the service will integrate Wi-Fi and be accompanied by several consumer-focused GSM/Wi-Fi handsets by next summer. The ultimate goal is to provide VoIP over Wi-Fi when subscribers are at their homes and in their offices, and to switch to cellular when users are on the go. Expanding the strategy, BT expects to launch Wi-Fi phones for large businesses next year, and has plans for a handset range from equipment manufacturers such as Nokia and Samsung.

The BT Home Hub and BT Fusion Motorola v560 Handset

The British behemoth says BT Fusion initially is targeted at the carrier’s high-speed DSL users. The phone uses a BT broadband connection and the UMA convergence standard, so calls from home are originated using the customer’s broadband service and a Bluetooth base station. BT is adopting an MVNO strategy for the mobile portion of its offer, providing access via a wholesale relationship with Vodafone Group.

ABI Research sees the move as a bold one. “Not only has BT opted to ultimately go all-IP (no more costly switched infrastructure), but it has decided to become a mobile virtual network operator, and the Bluephone is its secret weapon to exploit the mobile communications market, cater to its core fixed telecom market and do away with the logistical challenges and financial expense of a mobile network,” it noted in a research note. Solis adds that BT’s VoWi-Fi solution will have a much better range than the Bluetooth radio installed in most mobile handsets. “Cellular coverage is far from ideal indoors,” he points out. “Most people would greatly prefer to have one phone that works just as well in the depths of a large building as it does outdoors. Moreover, it’s a cheaper way for carriers to transmit calls.”

The carrier hopes to break down one barrier to adoption by offering lower-than-mobile rates and sweetening the pot with free stuff. Customers receive a free handset and a free Bluetooth/soon-to-be-Wi-Fi hub for the home that can support up to six phones, and three at once. As for rating plans, there are two: BT Fusion 100 offers 100 free minutes for approximately $18 per month. BT Fusion 200 offers 200 free minutes at roughly $27 per month. Charges for additional minutes, and out-of-network, international and mobile calls, will vary. Users still need a BT Broadband DSL subscription and will continue paying for a traditional wired phone line.

But for all the hoopla surrounding BT’s launch of BT Fusion, the service is rather limited in its reach. According to Ovum, subscribers of BT Fusion can use the service only to call fixed lines within England. Calls to mobiles and international calls from home are the same as BT Mobile’s prices, i.e. more expensive than BT’s fixed-line prices. “We believe that this will act to dampen demand,” says Ovum.

With the pricing concerns, multiple access charges and soft service launch, the analyst community is taking a “wait and see” approach to BT Fusion’s success.

Back on the home front, BellSouth Corp. and co-owned dependent Cingular Wireless have announced market trials of a solution that integrates IP, cellular and Wi-Fi. While an initial trial is being conducted in Atlanta at the office of advertising firm Grey Worldwide, the idea is to offer a widespread service that takes VoIP over Wi-Fi out of the enterprise and into the home. The trial involves the use of a converged device that connects with a WLAN, IP network or an external cellular network, depending on the location of the user, and offers a unified mailbox for home and work.

“Wireless is becoming a more critical part of business communications infrastructure every day and innovative solutions that address these growing needs will be the future winners in the marketplace,” says Keith Cowan, vice president, marketing and product management at BellSouth.