Wireless Data Without the Modem

As if people needed another excuse to whip out their cell phones, the second-largest US wireless carrier launches a Net service linking mobile phones and laptops. Others are expected to follow with similar offerings. By Joanna Glasner.

Cell phones, already a well-established tool for annoying fellow commuters, now have a new use.

On Thursday, AirTouch Communications, the second-largest US wireless carrier, rolled out a service that links cell phones to laptop computers to provide mobile access to the Internet. The service, initially available in only a few regions, will be available in most major US markets by early next year.

AirTouch's plunge into wireless data comes as mobile carriers across the nation are putting together similar services, using devices ranging from screen phones to palmtop computers, to provide anytime access to email, news, and work communications.

For the most part, industry watchers say it's too early to predict which sorts of wireless data applications are most likely to catch on in the US market. The United States has generally lagged in the data push behind Europe, where telecoms have been quicker to push data-equipped phones into the market.


See also: Vodafone Has the AirTouch- - - - - -

"This is the first major company to come out with true email and Internet access in the United States," said Ray Jodoin, a wireless analyst with Cahners In-Stat Group. "And for the first time, we're going to start looking competitive with Europe."

AirTouch is betting that business types will be the biggest users of its mobile Internet service. The company estimates that about a fifth of US workers spend a high percentage of their work week away from the office, creating a high demand for mobile applications.

What's more, the cell phone and Net surfing crowds overlap quite a bit, with the cell phone market actually growing at a faster pace than the market for Internet access services. And so-called wireless data applications have been the mantra of the mobile communications industry in recent months.

Although no wireless data product has caught on in a really big way in the United States, a few applications on the market or still in development are trying to cultivate a space.

The recently unveiled Palm VII, for example, provides mobile access to some customized Web applications, and is rolling out the service across the United States this year. A soon-to-be-launched Qualcomm phone will incorporate the Palm III operating system. And sales of wireless modems have been on the rise at US retailers.

AirTouch, acquired earlier this year by UK wireless carrier Vodafone, is pitching its laptop service as a system for cell phone users who don't want to buy a separate device or service plan for data. Initially, the company plans to offer the mobile Net service as part of its regular mobile phone plan. Customers will pay the same for minutes spent online as they do for minutes spent talking on their phones.

Like most wireless data offerings, AirTouch's service won't be particularly fast -- about 14.4 Kbps, or the speed of a dial-up modem, circa 1995. The speed is expected to pick up, however, as more competition enters the market.

In the meantime, Jodoin sees the offering as a popular one in a few areas, though it won't be replacing the wireline connection anytime soon.

"I can't envision myself standing around in an airport terminal pulling up Yahoo, but I sure can envision myself pulling up email before getting on a plane."