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Forget 3G? -- Could Bytemobile's new data optimization solution deliver 3G benefits without the need to invest in 3G infrastructure?

by Nicki Hayes, January 31, 2002

According to brokerages such as Merrill Lynch and CMG, 2.5G is where it is. They claim we don't need 3G. Vodafone UK's installation of Bytemobile's Macara platform, a flexible and comprehensive data optimization solution that claims to deliver a 3G experience on 2G and 2.5G networks could prove them right. Nicki Hayes, WDN's European correspondent investigates


Earlier this week Bytemobile Inc signed a software and hardware supply agreement with Vodafone Limited, the U.K.'s leading mobile operator. Apparently, Vodafone has installed Bytemobile's Macara platform, a flexible and comprehensive data optimization solution with capabilities for integrating future services, as a key component of its GPRS wireless network. But could such optimization software provide a real alternative to 3G?


The technology

Bytemobile's data optimization solution Macara effectively hot-rods existing networks to deliver a 3G experience. It does this by introducing a new network element-a wireless optimization service node (WOSN). Situated directly in the carrier's network data path, the Macara WOSN dynamically improves the delivery of IP-based data on wireless networks and significantly improves bandwidth utilization.

Depending on the type of file sent, acceleration gains of up to 7X have been realized for transfer times, and compression improvements - measured as file transfer size reductions - of up to 10X have been realized. These improvements can translate to deferred outlays of significant capital for 3G and other network enhancements by the carriers - apparently.

The technology sound bite

"The intelligence of the Macara platform enables it to understand and monitor the characteristics of a packet data network, optimizing and solving transmission problems. In practical terms, this means more robust connections and higher data throughput than previously possible," said Bytemobile cofounder Dr. Constantine Polychronopoulos, vice president of strategic alliances. The business benefits

Such enhanced data speeds will, predictably, improve the customer experience, which will in turn promote greater adoption and usage of wireless data products and services. Macara also promises improved security and scalability for data services and the ability to easily integrate emerging services such as wireless instant messaging. Additional services allow carriers to extend the "trusted domain" of enterprise customers throughout their network; these services include network-initiated virtual private networks (VPNs); virtual local area networks (VLANs); network address translation (NAT); and authentication, authorization and accounting (AAA). Such services are crucial to delivering the fast growth enterprise market to carriers, and, let's face it - most of them were pretty late in targeting this lucrative segment and could do with a boost.

The business sound bite

" Our technology allows mobile carriers to differentiate their data services by providing a better user experience for their customers. With our Macara platform, Vodafone is now providing enhanced data services-faster access speeds and intelligent compression-over their existing networks," said Steve Livingston, senior vice president of North American sales and global marketing for Bytemobile. The key points

Many believe that a key barrier to the adoption of wireless services is the sheer inconvenience factor of having to configure them from your handset. Macara resides on the network and is IP in IP out. It requires no modification to either applications or data, is agnostic to network air interface, transparent to the end-user and requires no client-side software.

Macara also increases the bandwidth available to carriers without using new spectrum or incurring additional costs, effectively delaying the need for financially challenged carriers to invest in 3G technology.

Macara could deliver first-to-market advantages of a number of different wireless services. In fact, Bytemobile claims it could allow carriers to leapfrog the deployment of MMS (multimedia messaging service) by delivering better performance for existing wireless data messaging systems. Early delivery of this type of service alone could provide access to an enormous new revenue stream, predicted to be worth more than 760 euros by 2005 in Europe alone (Durlacher and Eqvitec). Mind you, such services require compatible handsets and to my knowledge all such handsets in the pipeline are for 3G networks.

Prognosis

If Bytemobile's reported claim of "little heavyweight competition" is true - it says Ericsson and Nortel have both tried to develop similar technologies and gave up - then this start up that recently secured a $29m round of series B funding is well positioned to enjoy a period of fast growth.

However, unless Macara can add value to 3G services too, such growth could be short-lived. It is the new generation of multi-media services that will bring in the 3G bucks, not just the technology itself. Such services can not be delivered without new hardware, such as multimedia handsets. Such hardware is being developed for 3G networks. Perhaps this is why the likes of Nortel and Ericsson have chosen to focus on delivering 3G compatible solutions?

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About the author:
Nicki Hayes is a freelance writer and corporate communications consultant specialising in business to business internet issues. She has contributed editorial to a number of publications including Unstrung.com, Guardian Online, Financial Times, Banking & Financial Training, eAI Journal and Secure Computing. Nicki is also the European correspondent for The Wireless Developer Network. Nicki is based in Dublin, Ireland and also has a base in Cambridge, UK. Through her consultancy, Hayes-Singh Associates, she has access to a number of technical writers and PR consultants throughout Ireland and the UK.

About the WirelessDevNet (www.wirelessdevnet.com):
The Wireless Developer Network is an on-line community for information technology professionals interested in mobile computing and communications. Our mission is to assist developers, strategists, and managers in bridging the gap between today's desktop and enterprise applications and tomorrow's mobile users communicating via wireless networks. We are interested in supporting the deployment of these evolving technologies through high-quality technical information, news, industry coverage, and commentary. This information is provided within a true on-line community that supports developer/vendor dialogue through message boards and user-submitted tips, articles, links, and software downloads.

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