A perfect pair; Digital Edge: In the past, marriages between wireless and PDAs weren't exactly made in heaven. now they're in it for better, not worse

Entrepreneur,  March, 2002  by Mike Hogan

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YOU'D THINK THEY'D GO TOGETHER like peanut butter and jelly-- wireless communications and PDAs. Who doesn't want to surf the Web or grab messages on the road?

But past attempts to slap these two together have attracted few diners. Was it the concept or the implementation? More like implementation and price, says Kevin Burden, an industry analyst for IDC in Framingham, Massachusetts.

Early adopters of wireless PDA ventures paid an extra $200 to $400 for wireless hardware and $40 to $50 per month for Web access--on top of charges from their phone carriers. What they got was info that, according to Burden, "you can find in any daily newspaper."

Nor has the idea of phoning home from a PDA rung any bells yet, despite favorable reviews for crossovers like Kyocera's Smartphone and Handspring's VisorPhone add-on. One problem is that most businesspeople prefer their Snickers-sized cell phones over anything with a decent-sized display and comfortable data input. Yes, you can phone service to your boxy PDA, but how do you use it in public without looking like a geek? And there's face grease, which can muck up your display.

Despite the challenges, proponents are looking past the obstacles to IDC's predictions that PDA sales will triple to 14.3 million by 2005. Companies like Handspring hope to get a slice of the $110 million in annual handset sales expected by then.

So, what has changed?

A Killer Instinct

For one thing, the so-called "killer app" for wireless PDAs has arrived. Analysts say the quick acceptance of Research in Motion's BlackBerry demonstrates the business value of wireless e-mail.

Mundane? Maybe, but addictive as well, says Peter Belman of Motient-- BlackBerry's packet-data network provider--in Reston, Virginia. RIM's "thumbtyper" adds simplicity to portable e-mail by allowing you to maintain a faster pipeline to collegues that's more reliable than phone calls.

To pave the way, Motient will launch new wireless modems for Palm handhelds and Pocket PCs. Compaq just announced a similar device for iPAQ handhelds that includes a phone. And Palm is about to ship an integrated wireless PDA.

Likewise, network providers like AT&T, Cingular, Sprint and Verizon are building packet-data channels to bring Internet services and always-on e-mail to PDA and handset owners. They'll focus on the Palm OS, then other portable OSes, says Tole Hart, senior analyst for Dataquest/Gartner in Stamford, Connecticut. By 2003, they will cover about 90 percent of U.S. population centers. Hart expects the number of packet-data subscribers to skyrocket from 2.8 million in 2001 to 97.9 million by 2005.

Hart and Burden see ROI in those applications that transmit company information to mobile workers as well as applications for mobile industries. But for data mining or even Internet access to be of value, providers must do more than squish information into a PDA display as they did in the past, warns Burden.

Handspring's Treo 18o PDA/phone may be the best indication of how well PDAs and phone service go together. Issues like form factor and getting face oils on the display sunk the Visor-Phone, say Handspring executives, but Treo is slimmer than most PDAs, and its earpiece is in a flip-up lid that keeps the screen away from your face. Treo's Palm functionality integrates well with its clear-sounding phone, and one of its four quick-launch buttons can be set to always-on e-mail.

Wireless or Just Unwired?

But are any wireless implementations worth your time and money? The answer depends on your need, budget and patience level.

The premium on wireless won't be disappearing soon, although service providers might. By year-end, you may be able to find data and voice services with the same wireless provider.

Analysts suggest trying some add-in modems, then upgrading when the next generation of built-in wireless PDA arrives. Pioneers, as usual, may take some arrows.

But if you can make one sale off the geek chic of something like a Treo, you'll recoup your wireless PDA investment in no time flat.

Wire You Waiting?

WIRELESS AND HANDHELDS ARE A PERFECT MATCH. NOW FIND THE PDA THAT
PERFECTLY MATCHES YOU.

COMPANY/                                                       STREET
MODEL               WEB SITE            FEATURES                PRICE

Compaq Computer     www.compaq.com      Wireless modem and      $350
IPAQ Pocket PC                          GSM/GPRS phone for       to
Wireless Pack                           iPAQ Pocket PCs         $450

Handspring          www.handspring.com  Wireless PDA with       $399
Treo 180                                GSM/GPRS phone       ($599 color
                                                              version)

Motient             www.motient.com     Wirless modem           $179
Mobile Modem                            add-on (Palm m500        to
for palm VX                             version due mid-        $279
                                        year)

Motorola            www.motorola.com    Color PDA with full     $649
Accompit 009                            QWERTY keyboard and
                                        GPS/GPRS phone

Palm                www.palm.com        Wireless PDA for        $449
palm 1705                               always-on e-mail
                                        and web access

Research in Motion  www.blackberry.net  Always-on e-mail        $499
BlackBerry 957                          with rudimentary
                                        PIM