Kitsap Peninsula Business Journal
4-2-2004
Wireless, cable may end up partners
in battle with Bells

Although the mobile dimension has yet to emerge in the deal, the agreement between Time Warner and LogicaCMG may put wireless on the side of the cable operators in the evolving battle for customers between Bell and cable players.

LogicaCMG has deployed its voice and video messaging solution to Time Warner Cable’s launch of a residential Voice over Internet Protocol service. The trial service, known as Digital Phone, takes off in Portland, Maine.

As yet, the service has not extended to wireless. Time Warner is still quiet on its future decisions, said Keith Cocozza, director of corporate communications at the company.

Once cable VoIP takes off in the United States, “It will be tough for the fixed-line operators to compete,” said Ed Rerisi, director of research at Allied Business Intelligence.

The disadvantage to the fixed-line operator is the cable companies would not need to charge for long-distance, the bread and butter of the Bell companies.

LogicaCMG already has launched the solution on the wireless networks of Hutchinson 3G in the United Kingdom, Italy, Australia, Hong Kong, Thailand, Sweden and Austria.

“These networks have picked up traffic from the fixed-line carriers,” remarked Wim Parie, vice president of marketing at LogicaCMG, on the success of the solution outside the United States.

Rerisi said it might provide a bigger challenge to the Bell players. Already, more consumers are doing away with their wireline phones and using their wireless devices as the only source of communication.

But analysts say the Bell companies, who are parents of some of the wireless carriers like Cingular Wireless L.L.C. and Verizon Wireless, may not cave in easily. Already, some wireless carriers are bundling services with their parents.

The LogicaCMG solution is network agnostic and can work not only on cable and wireless networks, but also on fixed-line systems, which makes messaging interoperable among all the available systems, including the Wi-Fi arena. It also lends itself to a variety of devices including personal digital assistants, wireless notebooks, high-end phones, WAP phones and wireline phones. Rerisi said the availability of service in all three pipes may over-whelm consumers, but the need to save money on long-distance charges may narrow their message avenues to the platforms of the cable companies.

Rerisi explained that the trend could bring other messaging enablers like Comverse to the market.

Parie said the stage is set for cable players to take advantage of VoIP, which is somewhat new but rapidly evolving because its quality of service is comparable to fixed-phone service.

“This will create a lot more capabilities in the broadband environment,” said Parie, explaining that multimedia service, short message service and host of other applications will be available to consumers.

“This enables operators to maximize the potential of their existing infrastructure as they can add applications from the uOne product suite to existing email and access platforms,” said LogicaCMG.

Hutchison 3G first launched LogicaCMG’s solution, known as uOne Solution portfolio in March in the United Kingdom.