The way we communicate and do business is undergoing fundamental change. Driving that change is the incredible power of the Internet and the vast reach and accessibility of wireless communications. The result is an industry that is changing as rapidly as the systems, products and services we offer customers. The vision of universal telephone access has now been joined by the goal of universal access to the Internet. This means bridging the digital divide. But what is the true vision of the wireless Internet?
The anytime, anywhere aspect of wireless communications combined with the service content available on the Internet is transforming the way we all live and work. It is creating a virtual community for each of us that is at the same time both individual and global. In Latin America, individuals will be purchasing a Wireless Application Protocol (WAP) enabled phone before buying a personal computer. In some countries, the cellular phone has become the only phone, especially in rural areas where wired hookup can be difficult and take a long time.
Imagine conducting bank transactions, answering e-mail, surfing the Web, taking college courses and participating in video conferencing from a single device. When you integrate high-speed data transport, Internet access and multimedia into one integrated, end-to-end solution, anything is possible. This is where the wireless Internet is going. Today, there are some 300 million wireless voice communications users around the world, another 200 million wired Internet users. By the middle of the next decade, both of these categories will have a billion users and there will be more mobile devices connected to the Internet than fixed devices and terminals.
Internet growth in Latin America is exploding and has not reached total market penetration. A Jupiter Communications study says that by 2005, Internet users in Latin America will jump to 66.6 million people from 10.6 million in 1999. That number represents only a 12% market penetration. Almost 70% of all Internet users in Latin America are located in Brazil, Argentina, Mexico and Chile, but still the potential for e-commerce is huge, especially business-to-business e-transactions. Some estimates value this e-commerce potential at US$ 40 billion next year.
The merging of wireless and Internet technology into a mobile Internet represents the greatest turning point in the history of communications. For users everywhere, the wireless or mobile Internet will mean access to information without restrictions of time or location. For network operators and service providers, it offers a huge array of attractive new business opportunities with solid, continuing revenue streams.
Integrated end-to-end communications solutions that integrate networks, access devices, content, applications and services are key for global businesses. It means bringing the wireless Internet into reality through new Internet protocol (IP)-based communications architecture, such as Motorola’s Aspira, that provides interfaces to every major wireless protocol such as CDMA, TDMA, GSM, EDGE, iDEN, as well as proprietary protocols. These networks are designed to operate as open systems, with interfaces to the universal IP standard, providing transparent access to virtually an unlimited range of applications and services. This flexibility is intended to allow operators previously locked into a specific protocol to migrate to the new technology without discarding their previous investments. This is a big factor in third world countries where investment capital is limited.
Such architecture will help power the wireless Internet and should become the backbone for the rapidly growing e-commerce community. It combines powerful new technology with peer-to-peer, packet-based architecture that is designed to allow any device to communicate with any other device. The flexibility of this approach helps reduce equipment costs while increasing system capacity, call quality, and the availability of value-added services.
For many Latin Americans, their $200 wireless handset will be their first Internet experience. But the real beneficiaries of wireless technology will be the many sharp, young business people who are already comfortable with the Internet and will now be able to get things done while away from the office. Whether in the office, at home, on the road or in a hotel room, cell phones and wireless devices will soon become critical for success and a key element for mobile commerce (m-commerce). Web-enabled cell phones are likely to become the most widely available form of Internet access, making m-commerce the next major battleground for the e-consumer.
The Latin American population has an insatiable need to communicate. Wireless Web portals will deliver preset websites on a wireless phone and also provide corporate users with access to a company Intranet. This will be the wave of the future, since in Latin America there are more cell phones than PCs.
Jose R. Figueroa is vice president and general manager of the network solutions sector for Motorola’s Latin American and Caribbean region.