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On top of the wireless world
Ira Kalb (irakalb@KalbAssociates.com)
President, Kalb & Associates
1 May 2001 In the conclusion of this two-part article, we hear from several more developers working for innovative companies in Finland; they shared with us their thoughts on wireless development, where it's going, and what's developing in Scandinavia that keeps it at the forefront of wireless technology. dW staff also got to talk with Dr. Martti Tiuri, Chairman of Finland Parliament's Committee of the Future. Olli-Pekka Mutanen
COO, Multilizer Inc
Why is Finland considered a leader in wireless technology?
Finnish-made mobile phones and their user interfaces effectively
serve users around the world. Because we Finns are a marginal language group,
we understand the importance of considering non-English speaking end-users.
We know that a mass product speaks the language of its user. Because the wireless
revolution did start here much before it did in the Silicon Valley, this
speed-to-global-market business is still a dream on the other side of the
ocean, but I believe that our current lead is diminishing all the time.
Who are the important wireless players in Finland?
There are several important players, including all of the participants
of the Wireless Finland Partnership Program -- Akumiitti, Arcus Software,
AVS Technologies, Multilizer, Popsystems Oy, and WapIt, just to
name a few of them.
What does Multilizer do that might be of interest to wireless developers
around the world?
Multilizer Inc. is the leading provider of software globalization
technology for enterprises to accelerate their global business. The main
product, MULTILIZER® Software Globalization Framework, is an enterprise-level
solution for adapting user interfaces of PC, mobile/PDA, and Internet software
to operate in the users' own language worldwide. It helps enterprises achieve
faster time-to-global-market, cut software internationalization costs,
and achieve higher quality for international releases of their software.
In the U.S., we are looking for partners and investors with the capability
to speed up global market penetration. Multilizer has over 2,000 corporate
users worldwide, including Ericsson, Intel Corp., and Xerox, and is a privately-held
company whose investors include Holtron Capital Partners I and Miraimon
M 2000 technology funds.
What do you see as being the current and future trends?
Information technology and software will diffuse widely through the
Internet, and personal wireless devices will be used by a multitude of people of different nationalities.
According to IDC, over 50% of Internet users are already located outside
the United States.
"In the future, the product lifetime and development
cycles of wireless and PDA devices will continue to shorten, already being
very short (typically less than one year or only a few months).
Rapid introduction of the product to only one market no longer suffices
due to the increasingly global [nature of the Internet]. "The [globalization] of the Internet, wireless, and PDA environments
has also raised the complexity level of software projects. In addition
to Windows and UNIX, software is also produced in growing numbers for new
platforms and operating systems -- EPOC, PalmOS, Windows CE, and other
producer-specific operating systems (and we should not forget WAP and
i-mode)." Eero Koivisto
Eero has been working in the telecommunications industry
in Finland for several years and is currently studying at UCLA.
E-mail:
eero@ucla.edu.
Why is Finland considered a leader in wireless technology?
There are several factors that contribute to this trend:
- Finland is the home of Nokia, a world leader in mobile communications
infrastructure products and systems, and the world leader in mobile phones.
- Finland has had a deregulated telecommunications market from
the very beginning that has spurred competition. For example, at some point
during the 1930s there were around 800 operators, and there are still over
40 operators in the market. Because of the multi-operator environment,
open standards and interoperability between different operators’ networks
have been vital issues. This has driven technology development and competition.
- Nokia and other Nordic telecommunications equipment producers
have been developing wireless standards and technology since the late 1960s
to early 1970s. The analog NMT (Nordic Mobile Telephone) service, first-generation
cellular network technology, was the first interoperable, comparatively
low-priced, mobile network in the Nordic countries (Finland, Sweden, Norway,
Denmark, and Iceland) with excellent coverage and a unique feature of international
roaming. NMT and Nokia’s belief in digital technology laid the groundwork
for the head start in GSM (Global System for Mobile communications), a
second-generation (digital) mobile phone technology. Nokia and other
Nordic companies developed and put a lot of resources into GSM, which paid
off, and helped it become a huge success worldwide. This has given Finland and the Nordic
countries a lead in the wireless industry now when higher data rate mobile
services, (GPRS -- General Packet Radio Service), and 3G (3rd Generation)
mobile communications, are just around the corner.
- Post-secondary education in technology has had a solid base
in Finland for a long time. Therefore, a skilled workforce has been readily
available, which has been a critical factor in the success.
- Mobile telecommunications operators are very advanced in Finland
and they are at the forefront of development and provisions of mobile services
to their customers.
- The success of Nokia has helped other companies jump on the
wireless bandwagon at an early stage: subcontractors, wireless content
developers, etc.
- Therefore, Finland has the highest penetration of mobile phones
in the world. This penetration is over 70% at the moment and some resources have predicted that
it will reach 80% by the end of 2001. Also, the Finns have been on the forefront
in adopting new mobile data services, such as the SMS (short message service)
with which you are able to, for instance, send text messages to other users,
or download ringing tones and logos from wireless service providers.
Who are the important wireless players in Finland?
- Mobile handset and infrastructure suppliers: Nokia
- Mobile telecommunications operators: Sonera (formerly
Telecom Finland), Radiolinja, and Finnish 2G
- Wireless middleware/security suppliers: Sonera SmartTrust
-- a leading provider of comprehensive security and service management
solutions for mobile and Internet e-services; and F-Secure -- a leading,
strategic provider of powerful data security solutions, including wireless
solutions.
- Mobile portals/services: Sonera Zed -- an international
pioneer in the environment of mobile communications, and it leads the field
in personalized wireless information services for consumers; Iobox
-- a pioneering Pan-European wireless portal with 3 million registered
users. Iobox is currently a subsidiary of Terra Mobile.
- Mobile technologies and solutions: Elektrobit -- develops
world-class wireless solutions; WapIT -- builds advanced technologies for
world-class mobile applications and services.
What do you see as current and future trends?
In the near future, higher data rates will be available to mobile
handsets, which means that a whole new range of IP-based services can be
provided to the end-users. GPRS, 3G, Bluetooth, and WLANs will be the driving
technologies in the near future. They will be able to provide personalized
Internet and intranet content and services to the mobile handsets for consumers
and increase efficiency for businesses, because mobile workers [will be]
able to access important information anywhere, anytime. Localized services
will also provide new, useful services to the end-users. I see WAP (Wireless Application Protocol) as an important stepping-stone
to the higher bandwidth technologies -- GPRS, 3G, Bluetooth -- in the wireless
handsets and the advanced services that can be provided to the mobile handsets.
This provides a great opportunity to observe consumer perceptions and learn
from their experiences in preparation for the new, high-bandwidth services.
In addition, WAP-compatible content is exploding, so there will be more
and more services available for WAP users. The amount of WAP users is also
increasing rapidly. Useful services are the key drivers for the end-users’
adoption of new wireless technologies. Wireless handsets will have "always on" data connections to the Internet
and intranets. This means that there will be a need to include more software
on the handset. This, in turn, requires efficiency in terms of processor
and power usage. Therefore, software (for example, middleware) in mobile handsets
must be lean and economical. Ilkka Aura
Sonera Corp
Note: The following statements are Mr. Aura's personal
opinions, and do not represent official positions or views of the Sonera
corporation.
Why is Finland considered a leader in wireless technology?
The Finnish market has long been extremely deregulated and mobile
communication costs are among the lowest in the world. Also, Nokia and
Ericsson agreed early on joints standards that they would both support.
First, this was Nordic Mobile Technology (NMT), and then Global System
for Mobile communications (GSM). Instead of fighting on Scandinavian home
turf, these companies agreed to co-operate in Scandinavia and fight against
the Asian and North American players. Also, Finns are very technology savvy. The Finnish government has also promoted active R&D in wireless
technologies -- providing financing and development programs for companies
developing new services and applications.
Who are the important wireless players in Finland?
The biggest operator is Sonera with a 60%-plus market share
in mobile communication. Second largest operator is Radiolinja Ltd.
The Swedish company Telia entered the Finnish market three years ago. There
are also two virtual mobile operators in Finland utilizing Sonera's network,
but selling services using their own brands. Nokia is, of course, important in the handset market. Finland is a
natural live laboratory for some of the merging products. There is a large number of small startups that play an important role
in creating new services and applications.
What does Sonera do that might be of interest to wireless developers
around the world?
In Finland, Sonera operates as both a network and service operator.
Globally, Sonera is a leading communication operator creatively uniting
mobile communication, the Internet, and service provider know-how. The
Sonera vision is to create a global communication operator providing also
transaction and content services. Sonera has been a pioneer in numerous ground-breaking technologies
and services, such as using a mobile phone to pay for vending machine transactions,
location-based services, and IP telephony. "Whereas some operators are talking about mobile value-added services,
these services represent 11% of Sonera's domestic mobile communication
revenue. Sonera is well beyond the "brochure-ware"
phase, and its commitment to this space ensures new innovations
and service launches.
What do you see as current and future trends?
Short message services will remain the most important delivery and
presentation method for the next 12 months. WAP will be emerging, but will
not gain a strong hold until it can provide better graphics with animation
and support color and audio. The evolution of better graphics and processing
power in handsets will further boost the acceptance. The current WAP format
with existing phones is still too rudimentary for mass markets. The mobile phone is a communication device and messaging will remain
the "killer application" in the near term. SMS, e-mail, instant messaging,
and multimedia messaging will be the most used services. As soon as processing
and data speeds improve, downloadable objects like games, multimedia messaging,
and small over-the-air applications will be the important next wave.
Which of the emerging standards will become the ones that most people
use?
This will vary a great deal between different markets. In GSM markets,
operators will upgrade their networks to Global Packet Radio System (GPRS)
before moving on to UMTS. As long as services are circuit switched,
adoption will remain low, services slow, and pricing high. Packet-based
services are a must for mass market acceptance. Packet switched networks
will provide always on availability, high speed, lower pricing, and carrier-grade
back-end functionality. Third-generation networks will allow a wider range of mobile terminals.
Mobile terminals will evolve to be almost like the remote controls of our
lives. They will include such features as calendar, messaging center,
(digital) wallet, access devices to doors, and remote control to home devices.
PDAs, pocket PCs, game consoles, and in-vehicle terminals and other mobile
terminals will explode the use of mobile data networks. Eero Teerikorpi
President, Capslock
Why is Finland considered a leader in wireless technology?
Nokia has clear worldwide leadership in mobile hand sets, and it is
a very strong vendor in mobile networks. Finland has a high penetration
rate in cell phones -- over 80%; combined with high cell phone usage...
and SMS and WAP services. Users are from school children to business people,
and Finland is the first real m-commerce society [providing] mobile entertainment.
The Government of Finland has been very favorable [toward] wireless technology
and one [example of] this is the decision to hand out 3G licenses for free.
Who are the important wireless players in Finland?
Nokia is the leader in the technology. Sonera and Radiolinja
(world’s first GSM operators) are the strongest operators; and new upstart
DNA Finland is interesting. Capslock and similar new mobile startups are
very important to build more value for wireless society with real mobile
applications. Finland is considered a mobile laboratory for many foreign
companies -- IBM, HP, Siemens, Compaq, and even Ericsson all have mobile
technology offices in Finland.
What does your company do that might be of interest to wireless developers?
Capslock offers mobilizing technology [Capslock Mobilizer] that
allows [users] to publish existing client-server applications and Web site-to-mobile
devices (smart phones, PDAs, etc.); mobile security technology [Capslock
SWAT], which provides true end-to-end security for all wireless TCP/IP
communication; Java technology-based architectures, both mobilizing and
mobile security, that work in many platforms -- code once, run on any platform.
What do you see as current and future trends?
Currently, SMS is very strong, and will become stronger with mobile
fun via icons and ring tones, but also in real productivity solutions for
communication; WAP hype is over, but it will re-emerge as a very successful
technology when packet-based networks [GPRS, EDGE, UMTS] are a reality.
GPRS is real by the year's end... for 3G, we have had to wait longer than
expected or hoped. There will be strong competition between UMTS and Wireless
LAN [802.11b]. Both will find their places eventually [different usages].
Location-based services; instant messaging with
text, graphics, video;
secure transactions like banking, shopping, and electronic wallet; and
phones will become Personal Trusted Devices, or PTDs.
Which of the emerging standards will become the ones that most people
use?
- SMS is already huge in Europe; the U.S. will follow
- GPRS and Wireless LAN
- Eventually WAP... it will transform to more HTML/XML-oriented
than current versions with WAP 2.0 and XHTML support, which is based on
HTML 4.0
- PDA usage will grow in Europe.
How can wireless developers use your products to benefit themselves
and Capslock?
Capslock offers an excellent suite of solutions for both wireless-enabling
existing applications, as well as securing wireless connections; these
technologies can be licensed very cost-effectively, and for those
who currently have no adequate resources for wireless initiatives, Capslock
also offers the best of breed professional services to implement secure
mobile applications and to expedite the successful implementation.
Anything else you think is important?
Despite the current, somewhat negative, sentiment on the wireless marketplace,
this wireless world will become very huge and any company -- whether a
technology provider or technology user not outlining their wireless strategy
right now -- will miss a significant opportunity and will lose business
to those who are already moving into this space. Markus Jokinen
New Innovations, Iobox -- a Terra Mobile company
Why is Finland considered a leader in wireless technology?
Nokia itself is recognized as the leader in mobile telecommunications.
Nokia's strong presence has boosted several private and publicly listed
companies as partners and subcontractors in both software and hardware.
There are several dozen wireless companies developing software and hardware
solutions for the wireless world. Finnish telecom’s cluster now consists
of over 300 SMEs, and the Finnish IT sector has some 3000 companies --
a lot for a country with 5.2 million people. Finland was the first country
in the world to grant licenses for 3G [March 18, '99]. These networks are
expected to be ready by year 2002 (UMTS). Nokia was first in NMT
and GSM, and is focusing on technologies such as WAP, 3G, and IP. Another reason is the 75% mobile phone penetration in Finland. Finns
want to have the latest gadgets and use the newest killer applications.
Overall, they are very demanding clients for the equipment and service
providers, and thus offer an excellent test market for new innovative products.
Several international brand name firms, like Hewlett Packard and Razorfish,
have already benefited from this, and have set up base in Helsinki for
their test laboratories. There is a strong focus from both the government and from Nokia on R&D (R&D spending is 2.8% of the GDP). As a result, Finnish universities
have been producing an excellent supply of cellular technology specialists.
Who are the important wireless players in Finland?
- Nokia
- Sonera, for Telco
- Terra Mobile-Iobox, the first startup to penetrate successful
Pan-European presence within just 1.5 years of its founding
- SpringToys, for mobile entertainment solutions
- Digia, the official Symbian EPOC development center
What does your company do that might be of interest to wireless developers
around the world?
Terra Mobile-Iobox is the leading pan-European mobile portal
with over 3.6 million registered users. Its headquarters is split between London
and Madrid. Additional sales and marketing offices are in Helsinki, Stockholm,
and Munich. Iobox’s Development Center in Helsinki is an R&D center
for 3G, WLAN, and Bluetooth services. Iobox was founded in Helsinki in
January 1999, and acquired by the Spanish Terra Mobile in July 2000. The
parent firms are Telefonica Moviles and Terra Lycos and employ
over 200 people from 13 nationalities. Our
objective is to become the world's leading mobile portal. We are currently
expanding to other countries in Europe and Latin America.
What do you see as current and future trends?
Digital high-speed hotspots based on WLAN and Bluetooth are
emerging now even before we see UMTS networks in place. End users will
be using services according to available bandwidth -- GPRS with limited
bandwidth and graphics while walking on the streets, and WLAN or Bluetooth
with streaming video services in restaurants. PDAs are becoming increasingly wireless with a greater amount of telephony
support being built in. These devices will have the same kind of "open
platforms" (for example, EPOC, Wince) as smartphones, which means that it is the
user, not the handset manufacturer or operator, who will control the application
portfolio."
Which of the emerging standards will become the ones that most people
use?
"Bluetooth and WLAN hotspots -- especially Bluetooth hotspots -- are
targeted for mass markets. Bluetooth phones will also allow WML push services
effects so that when a user walks into a shopping mall that has a Bluetooth
network, the user will automatically receive local content and advertising,
and be able to conduct m-commerce transactions. MHP (Multimedia Home Platform) for DigiTV is another emerging standard.
Mobile terminal manufacturers are adapting MHP part of their browsers.
Nokia f.ex. is developing a DigiTV set-top-box, which includes a Bluetooth
base station. This means that every Finnish home with DigiTV will have
a Bluetooth hotspot where residents can access the network through their
mobile phone via Bluetooth and DigiTV.
How can wireless developers use your products to benefit themselves
and Iobox?
We are launching our own PDA software shop [in which] Iobox [will
act] as a distributor selling developers software. We are also launching
a Virtual Java (J2ME) open developer zone and forum where users can use
our wireless infrastructure and platform to develop and send applications
to their smartphones. Estimated launch dates are end of Q2. Martti Tiuri, PhD
Chairman of the Committee of the Future, Finnish Parliament
 | Contact information is not provided because of the large
volume of contacts Dr. Tiuri receives. |
Why is Finland considered a leader in wireless technology?
- Finland has more mobile telephones per capita than other countries
-- Austria and Sweden are in the same class.
- Finland is second after the U.S. in computers connected to the Internet.
- Nokia is a world leader in mobile telephone business.
- Northern countries invented the mobile telephone and got an early
start.
- Finland has a long tradition in radio engineering.
- The first application of radio waves in Finland (a radio transmission
from Kotka to an island in the Gulf of Finland in 1900 by Russian engineer
Popov) happened at the same time as Marconi developing radio.
- The first professorship in radio engineering was founded in Finland
in 1922.
- Finland has always had private telephone companies (the first was
started in 1882) in addition to the state-owned company. Finland has
several innovative ICT companies (Nokia, Sonera, F-Secure, Jippii Group,
Elcoteq, etc).
- About 11% of all new university students (3% of the age group) are
studying ICT.
Who are the important wireless players in Finland?
The important wireless players in Finland are, according to market
value, Nokia, Sonera, Elisa Communications (formerly the Helsinki telephone
company), Comptel, Teleste, Stonesoft, F-Secure, Jippii Group, YLE (state-owned
Finnish Broadcasting company), and Digita (digital broadcasting distribution
company owned by YLE and a French company). In addition, there are many
small interesting ICT companies, such as Benefon, making mobile telephones.
As Chairman of the Committee of the Future in the Finnish Parliament,
do you have any special wireless interests?
Gerontechnology is an interesting technology assessment project of
the Committee. It studies the use of new technology, such as mobile telephones,
in helping aging people to live at home.
What do you see as current and future trends?
Current trends in Finland are companies that have opened offices in
several small towns due to the shortage of educated people in big cities.
Nokia and other companies are also recruiting educated people from India
and China. YLE and Digita are looking for new applications of digital TV. Viewing the wireless future from the top of the wireless world
While nobody can be certain which wireless standards will emerge and
dominate, there seems to be considerable agreement from these interviewees
and other wireless experts that the U.S. is in the "horse and buggy" stage
in the wireless marketplace. Once the technology advances to the
point where wireless networks can reliably deliver high-bandwidth at high
speeds, the wireless marketplace will explode at all levels, from infrastructure
to content. There will be a ubiquitous TCP/IP-based wireless network that
will connect all sorts of wireless devices, such as wrist watches, mobile
phones, household appliances, moving vehicles, computers, audio/visual
equipment, and just about anything electronic, over wireless networks.
To get a good idea of what the wireless future will bring, we can take
a virtual or real trip to the top of the wireless world and watch what
the Finns and Swedes are doing; they are building the future there today. About the author
Ira Kalb is a consultant, author, part-time professor, and President of Kalb & Associates, an international consulting and training firm. He teaches courses in marketing, sales, management, and business systems for major universities and organizations around the world. He is also an artist and a woodwind musician who served on the Board of Directors of the Jazz Bakery --a non-profit corporation showcasing world-class musical talent in a world-renowned venue. He an be reached at irakalb@KalbAssociates.com. |
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