Net-based phone created

Electronic News, Jan 19, 1998 by Will Wade

San Jose, Calif.--Symbol Technologies has combined two underused technologies to create a new communication device that it hopes will create a new market. The NetVision phone system merges wireless LAN components with a method of sending voice signals in digital format across an internal data network, and the result is a wireless phone handset that does not rely on phone carriers.

"This looks like an ordinary cell phone, and it works like an ordinary cell phone but with one big advantage," said Fred Heiman, Symbol's executive VP. "You don't pay long distance charges for calls within your internal data network."

The concept behind the device is a simple marriage between two existing tech- nologies. Wireless LAN (WLAN) systems are in operation on a small scale, and allow users to access the In-ternet and E-mail through a standard data network while roaming throughout a building with their notebook computers. They require access point units placed throughout a building, and generally provide coverage for about 20,000 to 30,000 square-feet, depending on a building's architecture and the amount of data traffic.

Sending audio information over a network is a newer concept. The idea is to turn analog voice signals into digital data, break it into packets, and then transmit them across the network like any other file or E-mail message. The technique is known as voice over IP (VoIP), because it uses Internet protocol to route the digital voice data to the correct location.

Symbol Partners With Cisco

Combining the two creates a wireless phone that can roam throughout a build- ing, and can both send and receive audio messages across a network. Symbol has also announced a partnership with Cisco Systems, which has created a gateway connection that allows standard telephone connections to be routed into the data network. This means the NetVision can also be used for calls over regular telephone lines, although these would incur standard phone charges.

By themselves, neither technology has really taken off. WLANs have seen limited deployment, and many critics suggest there is not a huge demand to carry notebooks around the building, although the technology might be con- venient in meetings. VoIP is getting a lot of attention these days, but some analysts say the format is not quite perfected for real-time voice traffic and can lead to irritating delays in a conversation.

But Mr. Heiman says real uses for the NetVison will overcome any resistance to deploying WLANs, and that the advantages to sending voice through a network will overcome what he says will be minor sound delays. "Heavy traffic on a network might delay a voice call, but that's the price you pay for a free phone call," he said. The company states the system can support up to 25 phone calls using a single access point. Each access point can handle a total of about a megabit-per-second of traffic, and delays under normal usage may be about a tenth of a second.

"This is major innovation," noted Craig Mathias, principal analyst at the Far- point Group. "It's so obvious it's like getting hit over the head, and it extends the utility of a WLAN."

Corporate Users Holding Back

Mr. Mathias said that corporate users have not been willing to justify the expense of installing a WLAN just to allow users to access the Internet during meetings. "But everyone uses the telephone; it's a lot more important than the computer," he added. "Most people are mobile at least part of the time, and when they are away from their communications tools then productivity goes down."

The jury remains out on whether VoIP technology can deliver crisp audio, but Mr. Mathias predicted numerous applications and a strong demand for the device. "This is exciting stuff, and you can look forward to this combination of WLAN and VoIP becoming a growing trend," he said.

Symbol has targeted the NetVision at numerous markets which require users to be mobile, such as healthcare, warehouses, express mail services and retail outlets. Mr. Heiman also expects to see companies adopt the system. The NetVi- sion will be priced at about $500 to $600 per handset, in volume. The interior components include a CODEC from DSP Group, and other parts from Lucent Tech- nologies. The data transmission follows the international H.323 WLAN standard. The company plans to test the device this spring, and move into full produc- tion by summer.

Not only are cell phones and cordless phones among the fastest growing con- sumer applications, but PBX phone systems are starting to appear in retail applications and hospitals. While some $150 million in wireless PBX equipment was sold in 1996, Mr. Heiman said these systems only offer mobility, while the NetVision also provides cost-savings by avoiding phone carrier charges.

"Companies may not switch from a PBX system they have already installed, but if given the choice they will probably choose the NetVision," he said. "With free phone calls, this will eventually pay for itself."

Could Spur Use Of WLANs