WIRELESS SOLUTION: Invisible Nature Of Connectivity

Services are invisible. How do you sell them?" was the challenge Harry

Beckwith, well-known marketing guru and author, faced a decade ago. "I

could not show the service doing anything, because services are invisible.

Services are just promises that somebody will do something. How do you sell

that?" After years of working, he wrote a book "Selling the

Invisible".

Today, ‘invisible services’ are well accepted and have become a part of

our life in metros. But majority of the delivery mechanisms for these ‘invisible

services’ are still based on either ‘physical transportation’ or ‘physical

media’.

Wireless revolution, which includes many technologies, is just around the

corner. When this development reaches its maturity, it would make transportation

and the media totally invisible.

Due to this, many physical structures can disappear, literally, into the thin

air. At the same time, it could be a great technical triumph. But one should pay

attention to the deeper impact on many existing physical, economic and social

structures.

Solution providers have to mentally accept and accommodate this totally

invisible nature of connectivity and the changes associated with it. We are

moving closer to the new reality with plans to deploy next revisions of wireless

technologies.

Presently, end-users lay a lot of stress on security issues related to

wireless. It can be viewed as their mental block and perceived discomfort,

rather than a real security concern.

PRESENT STRUCTURE



There are various connectivity levels and hence the service distribution

structures today are established with top-down and centralized approach. In such

a scenario, the operator owns the infrastructure and users generally are

subscribers.

Down the chain there is very little or no value-addition. In case of wired

connectivity, the only value-addition that partners provide is in terms of

laying the neighborhood cable and managing its upkeep.

Worldwide, Wi-Fi has taken the bottoms-up approach. In this approach, the

neighborhood networks are implemented. Later, management, commercial structure

and value-added services are packaged separately.

While cellular wireless and Wi-Fi operate at separate frequencies, it is

technically possible to integrate these through billing and authentication

services. But across the globe, integration of these services is very limited.

Therefore, as on today, the wireless market is fragmented. But this is

considered by most as a transition stage.

WIRELESS WAVE BRINGS THE CHANGE



The wireless wave is becoming stronger day by day. Slowly, it is expected to

redefine the existing distribution channel and the way business was done. A

strong reason for this is the inherent independence on physical links, which

will obviously get dissolved.

On the whole, several changes can challenge the present arrangements in terms

of the value addition down the distribution channel. These changes may be forced

by the pressure building from two sides – the aggressive top-down approach of

major wireless operators and the slow bottoms-up approach of Wi-Fi. This would

lead to a very competitive, and hence, very creative environment for solution

providers.

One reason is that the wireless connectivity can be established without

involving "regular routes". The dark horse is Wi-Fi, which encourages

totally disrupting methodology of neighborhood networks. Traditionally, Wi-Fi

has been a catalyst in forming small users in the neighborhood. These groups can

be shops in a mall or owners of apartments in residential complexes. These

groups share existing services and can create group-specific new services.

In response to this new situation, the opportunities may have to be addressed

in unconventional methods and that enables solution providers with strikingly

unusual characteristics. With the advent of wireless proliferation, these

models, which might appear unusual today, may become very common in the future.

NEW DISTRIBUTION MODEL



Today, mobility or roaming is one of the top five driving factors of any

business on earth. Presently, various wireless technologies are addressing this

demand. Roaming is defined as the ability to use many wireless service providers

while maintaining a business relationship with only one.

It is difficult to state exact models, as they do not depend only on

technologies. In fact, technologies are offering lot of flexibilities, so users

and solution providers can be very creative in evolving workable models.

The equipment cost in a Wi-Fi setup is very low and comparatively, the

vertical integration cost for commercial services is high. For that purpose, it

is easier to integrate Wi-Fi with WISP for billing and integration of other

specialized services.

So far, it is rare to find WISP providing service in a residential

neighborhood. This is because the WISP model turns out to be expensive to

residential users. At the same time, WISP provides wider coverage and provides

more roaming possibilities.

WISP is a broad category. There are many sub-categories: Wide Area WISPs,

Hotspot WISPs and Community WISPs. Depending on their core business, they can be

identified as ISP WISP, franchising WISP, operator neutral WISP, Mobile Carrier

WISP etc.

Since financial profitability is always a common objective, it is best to try

out various combinations. Solution providers can ensure a suitable position in

the services chain depending on what value-adds they are offering. These could

include value proposition to customers, distribution-channel relationship,

infrastructure or commercial aspects like billing and collection.

DIFFERENT MODELS AND MODULES



Different models will create different modules, placing the ownership in

different manner to create financial profitability. This extreme flexibility may

lead to the performance of some interesting channel functions. some of these

would be:

Service provider without end-customers: The service provider could be

physically situated anywhere and can serve all customers across the network. The

customer may not directly subscribe for the service from the ‘real provider’.

But he will buy the service as a part of some package offered by the access

provider. In short, the real service provider may not have any direct

relationship with end-customers.

Wireless partner without a network: A channel partner can function as a

bandwidth reseller. He can buy a bulk bandwidth from satellite and simply

re-transmit or re-distribute it to others. Or the wireless partner could just

manage a repeater location. In both cases, he does not own any network or direct

end-customer relationship.

Collecting money for services provided by others: In a specific location like

a mall or other public place access-providing channel can be present. Having

provided access at a very strategic location, customer pays immediately to the

channel. The charge may include both, access and services costs. Here the

solution provider collects money for the services.

THINK FLEXIBLY



With the availability of wireless technologies, distributors and solution

providers can create flexible business models. If you think little deeper and

look around, today you will find similar models working in different sectors.

In the near future, Wi-Fi and WISP models are expected to grow rapidly. As

their market focus is mutually exclusive, they are getting implemented,

independent of each other. Integration at some point of time and in some form is

inevitable. It is technically very much possible, during which, newer models are

expected to evolve.

The successful implementation and speed of evolution would solely depend on

many nontechnology factors. The factors such as legally binding laws, the role

of FCC and TRAI, social and political dimensions would decide future course of

developments.

MILIND KAMAT is an independent

consultant