3GSM Cannes: Components of the Well-dressed Booth

by By: Peter Jarich
Principal Analyst, Wireless Infrastructure

This year marks the final appearance of the 3GSM World Congress in Cannes. When it moves on to Barcelona next year, we can all expect some major changes: more hotels, cheaper flights, different accents. Yet, some things will doubtless remain the same: the weather, the parties, the yachts.

Still, no matter where it's held, the GSM world's number one "meet and greet" will remain a showcase for wireless infrastructure vendors to highlight their products, their capabilities, and their visions for 3G. With booths (and boats) larger than most houses, equipment providers will use the occasion to demonstrate their understanding of the wireless market's requirements - today and tomorrow. Messaging will be planned well in advance. Vendors telling the right story will depict themselves as competent partners, ready to help cellcos deliver advanced, revenue-generating services. Vendors telling the wrong story will depict themselves as "out of touch."

With so much on the line, it's a good thing that vendors still have a year to plan for Barcelona.

All joking aside, the 3GSM World Congress is an undeniably important event for wireless infrastructure vendors and their messaging...every year. The wrong messaging might not lose them any established customers, but the right message could help to build mindshare and position them as a capable partner for new deployments going forward. So, what topics will vendors need to address this year in order to tell a good story? What display "pods" can we expect to see in the well-dressed 3GSM booth this year? To be sure, there's lots of room for debate here. Nevertheless, several topics stand out, topics that should be particularly important to operators and vendors alike.

Pod #1: HSDPA

HSDPA is 3G as it was originally promised (i.e., mobile data with throughput beyond 384 kbps). It should be no surprise then that operators have taken an active interest in it. Operators that have moved slowly on WCDMA will make a leap directly to HSDPA. Operators with WCDMA networks in place will need HSDPA in order to compete. Vendors looking to grow their 3G revenues (and that's all of them) will have HSDPA on display.

Pod#2: IMS

High speed data is great, but selling "dumb" data pipes is a low-margin business. Operators are looking to new IP applications as a way to grow their ARPU. In addition, as part of the 3GPP specifications, IMS represents a standard architecture for delivering and managing these applications. The reality, however, is that IMS has transcended the GSM world. Operators (fixed-line and mobile) have already begun to deploy the foundations of IMS networks. Those which haven't are forming their plans.

Pod#3: IMS Applications

Ultimately, IMS is about applications. IP-based applications such PoC, Push to Video, mobile gaming, and unified messaging...all leveraging common presence, location, and subscriber profile information. It's a lofty goal, but, now that operators have begun to deploy IMS networks, they need to start planning for the next step.

Pod#4: Fixed-Mobile Convergence

The proverbial "triple play" of voice, video, and data has been replaced by the "quadruple play," adding mobility into the mix. Technically, and metaphorically, "home run" may be more appropriate. The point being, there is money out there for operators that can deliver multimedia services seamlessly across fixed and mobile networks. BT's Fixed-Mobile Convergence Alliance and operator participation within the UMA signal that cellcos see value in the opportunity. Whether via WiFi-cellular roaming or messaging applications, vendors will need to signal that they understand.

Pod#5: WiFi

Remember the good old days when 3G and WiFi were viewed as competitors? Well, those days are all but over. Hotspots have proven their mettle in the home, enterprise, and café, but 3G remains the option for ubiquitous coverage and for users that don't want to lug laptops around with them. As the threat has dissipated, however, operators will look to leverage the economics and scale of WiFi in some way. It's too useful to be ignored, and the poor in-building penetration of WCDMA or HSDPA at 2.1 GHz makes it even more attractive.

Pod#6: Content Differentiation

As operators deal with a myriad of new 3G applications and services, they will want to treat some content differently. Streaming audio and video will be given away free as a promotion ("limited time only"). "Adult" content will be limited to adult users. Prepaid users may get no access to advanced services. Whatever the plan or business model, operators will need tools for deep packet inspection and tools that can make use of the data they collect.

No matter how big their booth - or outdoor demo area, or yacht, or cruise ship - it's unlikely that every major wireless vendor in Cannes will go into great detail on each of these topics. It's a lot to ask. What's more, some vendors will want to dedicate resources (and floor space) to other topics. For example, daring ones will bring their WiMAX stories to the world's biggest GSM show. However, any vendor attempting to position itself as a credible 3G player - one with the vision and tools to help operators make money from their 3G network investments - will want to be prepared on all fronts.

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