inCode Reveals Top 10 Wireless Predictions for 2005; Increased Competition Drives New Developments in Wireless Voice, Data and Video For Carriers, Manufacturers and Enterprises

Business Wire, Nov 19, 2004

SAN DIEGO -- Although competition in the U.S. wireless market already is greater than in many of the country's other telecommunications sectors, the battle for customers will intensify even more in 2005. Industry economics will force at least one additional consolidation among U.S. wireless network operators next year, but remaining operators will see no competitive relief. Non-traditional players -- multimedia companies with powerful content and cable TV arms, major brands with private-label wireless services and even equipment vendors -- will muscle into the wireless marketplace with attractive subscriber offerings. Those are some of the key points from the Top 10 Wireless Predictions issued today by inCode, a global wireless technology and business consulting firm.

"The map of wireless companies as we know it could be redrawn," says Jorge Fuenzalida, East Coast Director of inCode's Technology and Strategy Group. "Conglomerates with huge content portfolios will challenge wireless network operators for control of the wireless 'pipe,' forcing carriers to provide differentiated, compelling services for enterprises and consumers. In addition, the warm, decades-long relationship between carriers and equipment vendors is cooling as manufacturers use music delivery and exclusive offers to attract wireless customers and marginalize carriers."

To strike back, wireless carriers can strengthen their competitive advantage with these weapons:

--New classes of premium, one-to-one and one-to-many voice services that generate new revenue streams and leave plain-vanilla, commoditized voice behind

--Service-level agreements that ensure quality of service, not just quality of the network providing it, to attract and retain high-value enterprise customers

--Better in-building coverage and "seamless mobility" -- across the hallway as well as down the highway

--High-quality audio and video service with music, TV news and programming on mobile phones

In addition, the special role that wireless has played in public safety and homeland security will become even more important and visible. More government funding finally will be available for identifying the location of mobile subscribers who dial 911, enabling first responders to send help faster. inCode expects progress on technology issues that hinder implementation of a national citizen alert system over cellular. Further, use of Radio-Frequency Identification (RFID) tags -- electronic seals that detect tampering -- will enhance homeland security and speed container movement through international ports.

(The full text of inCode's Top 10 Wireless Predictions for 2005, including a bonus prediction, follows this release.)

About inCode

inCode (www.incodewireless.com), a global wireless technology and business consulting firm, develops and implements high-impact strategies and solutions that increase the profitability and performance of wireless networks. In addition, inCode guides enterprises in harnessing the power of wireless communications for productivity and competitive advantage. inCode's innovative Next Generation Wireless Technology Lab enables wireless carriers and enterprises to test advanced wireless solutions prior to making major capital investments.

Founded in 1998 by wireless business veterans and technology pioneers, inCode understands where the wireless world is going and how to get there first. Headquartered in San Diego, California, inCode has offices in Atlanta, Georgia; Maidenhead, United Kingdom; Paris, France; and Sao Paulo, Brazil. inCode is an ISO 9001 certified company.

inCode Top 10 Wireless Predictions for 2005

(Plus a Bonus Prediction)

1. The Role of Wireless in Public Safety Takes Center Stage

The key public-safety communications tool for decades, wireless becomes even more significant in the wake of the 9-11 Commission report, which highlighted weaknesses in U.S. telecom infrastructure. Behind-the-scenes issues, including priority access for first responders, network interoperability and reliability, spectrum requirements for public safety and critical infrastructure concerns move to the forefront. That's not to mention implementation of a national citizen alert system over cellular. In addition, more government funding will finally be available to increase Phase II wireless E911 compliance, eventually benefiting location-based services. In the interest of homeland security, the government will move closer to allowing Radio-Frequency Identification (RFID) tags on containers that pass through customs at international ports and national borders. Use of these electronic seals that detect tampering also would speed container movement, benefiting shippers and trade. Did we say that wireless in public safety is important?

2. Wireless 411 Directory Gets a Wobbly Start, but Wins Over Small

Businesses

Opposition to a full-blown white pages directory of wireless subscribers is widespread and strong with Verizon leading the charge. Based on privacy and spam concerns, it's unlikely that this project will get far. However, a Yellow Pages cellular directory, in which home-based and small-business owners can purchase listings, proves popular and profitable. Think of all those small-biz subscribers who are away from their offices most of the day -- electricians, consultants, limousine drivers, pet groomers, florists, etc. Their cell phone is their primary mode of voice communication and a Yellow Pages listing is valuable to them.