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Net APPLIANCES: Access Made Easy

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VoicenData Bureau
New Update

The

world has got addicted to the Internet and e-mail. And India is

no exception. This has led to an unprecedented growth of

appliances that offer cheap wireless Internet access. In a way,

it is the information appliance revolution. More and more

companies are joining the bandwagon with mobile, handheld

devices which can be used for sending and receiving mails and

accessing the Internet apart from providing several value-added

services. Non-PC appliances will pose a major challenge to the

PC as a dominant way to access the Net.

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According

to an IDC study, sale of information appliances will exceed that

of PCs by 2004-2005. It says that these appliances will gain

popularity with the growth of Internet and customers’ desire

for more access. It predicts that by 2002, PC shipments will

grow to 56 million units while Internet appliances will leap to

almost 42 million units, capturing 50 percent of the market.

Forrester Research predicts that breakthrough to widespread

consumer adoption will arrive with what it calls "smart

packets"–easy-to-use and narrowly focussed devices that

are tightly bundled with services. According to Gartner, the

market for these products will start to mature around 2002 and

will enter into the mainstream after 2005. To reach a mass

market, the report said, devices will need to cost no more than

$300 if purchased or $30 per month if leased as part of a

service. This will transform the way information is disseminated

world-wide.

Mobile

Internet




The key to all these changes is mobility or wireless
connectivity. The concept of mobile Internet is finally

translating into reality and is catching up. Smart cellphones

and next-generation Personal Digital Assistants (PDAs) that talk

to one another via wireless communication systems and an

explosion in e-commerce is bound to take centre stage in the new

millennium. Global System for Mobile communication (GSM)

services are becoming affordable enough for wireless modems to

be built into information appliances. Business at the speed of

thought is all set to become a reality–good news for the

e-commerce industry. The dream of making transactions while on

the move will be made possible with these soon-to-be available

devices. The growing demand for converged mobile communication

services is becoming the driving force behind the industry’s

changing focus.

Pros and Cons

The Benefits 

  • Small and mobile information appliances can be used in places where PCs cannot go
  • Can fit into the corporate network to participate in transactions together with conventional PCs and servers
  • With cheap wired and wireless connections to the Internet, they can be useful alternatives to the PC

Limitations 

  • Due to storage limitations, applications on appliances are much more restricted as compared to desktops
  • E-mail dedicated gadgets do not allow users to open up file attachments such as photos
  • Internet access can be restricted to specially formatted text and images that fit on smaller screens 
  • Accessing HTML pages can give a lot of headaches because of the format
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New

Initiatives, New Vision




As the world moves from Wireless Application Protocol (WAP) to
General Packet Radio Service (GPRS) and to the 3G technologies,

information-related appliances are in for a big boom.

International Mobile Telecommunication 2000 (IMT-2000), the ITU’s

3G vision, encompasses a variety of environments such as terrestrial and satellite and a variety of applications and

services such as cellular, fixed wireless access, etc.

The

IMT-2000 services are due to commence in Japan in 2001 and in

Europe by 2002. WAP Forum is another initiative aimed at

providing wireless access to information using a WAP phone. Its

primary goal is to bring together companies from all segments of

the wireless industry value-chain to ensure product interoperability and growth. As the market develops, a wide

variety of interactive WAP-services will be available, such as

banking, ticket booking, information and shopping. (For more

information on WAP, turn to page 46)
Nokia, Ericsson,

Motorola are some of the key players in the WAP phone segment.

Another important

development that is likely to give a fillip to the growth of

information appliances is Nokia's teaming up with Psion,

Ericsson, Motorola, and Matshusita (Panasonic) to creat a joint

venture–Symbian. Symbian is working on the development of an

open operating system called EPOC, that turns voice-oriented

handsets into mediaphones and wireless information devices. This

will function as a common platform for applications in devices

made by different manufacturers.

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Cost and

Compatibility




Though affordability is an issue, these appliances will be much
cheaper than their closest cousin–the PC. Most companies

planning to foray into this segment have promised cost-effective

appliances. Compatibility of these devices is another issue.

Hopefully this will be solved with increasing trend towards an

international standard. India is bound to benefit from these

rapid changes, and these appliances will become available once

they are globally launched.

The Players

and the Strategy




Many big names are trying to cash in on these new opportunities.
From the software giant Microsoft to the chip manufacturer

Intel, everybody wants to make an entry into this segment and

tap the mammoth market. The list is increasing by each passing

day. Cisco, Philips, Sun Microsystems, Nokia, IBM, 3Com, Nortel,

and HP are some of the names who are all set to take the plunge.

Intel

Corp. outlined its Web appliance strategy at the Consumer

Electronics Show in Las Vegas in January this year. It promised

to deliver easy-to-use Web appliances and provide appliance

management software, services packages, and family of branded

appliances. Intel’s strategy is aimed at providing three major

components–appliance management capabilities, services package

building blocks, and a family of Intel-branded Web appliances

designed for accessing the Internet–to telecom operators and

service providers, who will offer them to consumers. Intel looks

forward to a significant business opportunity to bring the

Internet through new devices in the home. Its strategy is to

provide telecom operators and service providers with a

cost-effective platform on which they can offer services and

remotely manage the new appliances.

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Intel demonstrated

prototypes of various Web appliances, which it will sell to

service providers and e-commerce companies. The first such

products will be available in mid-2000 and will integrate

Internet access with telephony features such as call management

and unified messaging. Intel has signed an agreement with

Telcordia Technologies, Inc. for providing such services.

Microsoft Corp. has joined

hands with the industry to provide the simple and low-cost

MSN-based Web companions that deliver instant one-click access

to the Internet. Microsoft promises to make everyday Web

experience available any time, anywhere on any device. This has

been designed for consumers who want an easy and affordable way

to browse the Web and communicate with others and accomplish

everyday tasks online. MSN-based Web companions bring the rich

Internet experience that a PC provides in a lightweight,

streamlined new format, featuring instant power-on, a single

user interface, and easy-to-find controls. As one of the first

entrants in this category of Internet access devices, Microsoft

has received support from Acer Inc., Philips Electronics,

Thomson Multimedia and Vestel USA. All of them are working to

design MSN-based Web companions. Beta versions of some models

have already been released. The product will be available in

mid-2000.

Alcatel’s Internet

Screenphone, still in development stage for release late this

year, supports a touch screen and Internet access. Its address

book can hold up to 1,000 entries, and, of course, you can dial

entries with a click. Users can customize the home page and use

their own ISP or one that will come with the phone. The package

will be priced at less than $400.

Nortel Networks is gearing

up for an April 2000 release of its PowerTouch 452 phone, a $350

device that will have a built-in 100-name address book, a

wireless keyboard, and enough memory for offline e-mails. The

device uses the Analog Display Services Interface–a telephone

standard–but can connect to Internet e-mail or Web content

through gateway services.

These information appliances are targeted

initially at the corporate users but soon will make an entry

into the home segment. It will be mobility coupled with growing

e-business opportunities that will be the main driver to the

growth of these appliances in the coming months. As these

devices gain universal acceptability, people will start using

these for infotainment as well. This will lead to a networked

world where devices can easily communicate to make life and work

simpler.

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