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Which
ISP do you think is the worlds most popular, measured
by number of customers? Its not one of the business-class
heavyweights featured in this months survey, though
they do carry most backbone traffic. Not even consumer king
America Online, which held the top spot right up until this
summer. With more than 30 million subscribers, the biggest
ISP in the world is now NTT DoCoMo, the wireless unit of Japans
dominant carrier.
Known as i-mode, DoCoMos service contradicts
all the familiar Internet dogma. It makes money by charging
for content, not through ads or e-commerce. It succeeded in
the face of a decade-long economic depression. (The Japanese
tech bubble burst back in 1989, and it really is just a coincidence
that DoCoMo sounds like dotcom.) Most importantly, i-mode
can only be accessed via cell phone.
The service is aimed mainly at consumers, but businesses use
it too. An i-mode phone can give a salaryman instant access
to his corporate network and e-mail on the road, without even
requiring him to boot up his PC. Support for i-mode has also
become vital to every Japanese company that wants to do business
on the Web. In 2000, cell phones overtook PCs as the dominant
Internet access method, proving that the wireless Web is real-at
least in Japan.
Elsewhere, its a different story. Though Americas
big five mobile operators offer services based on the Wireless
Application Protocol (WAP), superficially similar to i-mode,
their customers are mostly uninterested. Even Europeans, the
worlds most enthusiastic cell phone fans, havent
taken to WAP. Nearly every handset sold in Europe has the
technology built in, but few people bother to use it.
What went wrong with WAP, and right with i-mode? Every expert
points to something different: i-modes reliance on Internet
standards rather than a whole new protocol stack, the large
number of content providers signed up with DoCoMo, or even
cultural differences between Japan and the rest of the world.
But the most important reason for i-modes success is
Japans cellular standard, which lets users stay connected
to the Web nearly all the time without racking up the hefty
per-minute charges faced by their WAP counterparts.
Always-on connections are now making their way to the Wests
digital cell phones, and so is i-mode. DoCoMo has aggressively
pushed its technology outside Japan, striking deals with operators
worldwide. So far the most important is with AT&T Wireless,
in which DoCoMo now owns a larger stake than AT&T itself.
But this doesnt mean that WAP is beaten: Its still
supported by an overwhelming majority of cellular operators,
who have a new version ready to roll. WAP 2.0 has plundered
many of i-modes best features, and will be built into
most cell phones in 2002. The question is, should it also
be built into your network?
Cell Cultures
The i-mode phenomenon is often written off as purely cultural.
Japan is different, says Jake Sullivan, vice president
of technology at 2Roam, a wireless ASP that hosts sites for
both i-mode and WAP. Theres little penetration
of the fixed Internet, and its very difficult to get
a landline. Others point out that the Japanese spend
a lot of time out and about, whereas Americans are more likely
to be sitting in cars or watching TV. And Japanese cities
are among the worlds most crowded, making it easy for
DoCoMo to provide cellular coverage: Its network reaches more
than 99 percent of Japans surface area and virtually
the entire population.
A look at other mobile Internet services suggests that there
is something special about Japan. Behind i-mode, the worlds
next most successful ISPs are run by J-Phone and KDD, DoCoMos
competitors. Their rival (and incompatible) J-Sky and EZweb
systems, respectively, have each notched up more than 8 million
subscribers, the kind of number that non-Japanese operators
only see in projections from the most bullish analysts. EZweb
is even based on WAP, proving that the protocol can be successful
under the right conditions.
However, most of the aforementioned cultural factors that
favour i-mode adoption apply equally to many other countries.
Take Finland, often held up as the showcase wireless society:
Most phones are cellular, and wired telephony is considered
distinctly retro. Yet few Finns access the Internet by phone,
even though Telecom Finland (now renamed Sonera) deployed
the very first WAP service and still wins awards from the
WAP community for its innovation. Customers can use their
phones to buy from vending machines or access location-based
guides-but they dont.
The main difference between Sonera and DoCoMo isnt their
home markets culture, or even WAPs and i-modes
networking protocols and markup languages-its the cellular
systems themselves. Whereas Soneras network is based
on the Global System for Mobile Communications (GSM), the
same standard used throughout Europe and most of the world,
Japan has its own unique standard called Personal Digital
Cellular (PDC). Though the details of these systems are complex
and perhaps of interest only to radio engineers, PDC has one
advantage familiar to all data networkers: packet switching.
Thanks to packet switching, users can remain connected to
a network without consuming any bandwidth. DoCoMo keeps its
i-mode subscribers online continuously (except during voice
calls), and only charges them for the data they actually send
and receive. GSM operators cant do this because their
circuit-switched networks require that a phones entire
bandwidth capability be dedicated to a connection. Users are
billed accordingly, paying for each minute that they spend
online. Some try to save money by repeatedly disconnecting,
but this adds a delay of between three and 30 seconds every
time the phone reconnects. On an already-slow 9.6Kbit/sec
link, thats too long to wait before a page even begins
to load.
Americans shouldnt ignore GSM, despite its reputation
as a European technology. Its now the most widespread
cellular standard in the United States, the favoured choice
of three large operators. Cingular and Voicestream both run
GSM networks already, and AT&T Wireless is building one.
The next most popular system is Code Division Multiple Access
(CDMA), which Sprint PCS and Verizon use. Though theoretically
more advanced, this suffers from the same problem: Its
circuit-switched, making it very inefficient for WAP, i-mode,
or any other services that send data in small bursts.
Most GSM and CDMA operators have begun to adapt their networks
for packet data, through upgrades often called 2.5G.
These are seen as an intermediate step to true third-generation
(3G) networks, which will be entirely packet-switched, even
carrying Voice over
IP (VoIP). Originally planned to enable data rates of 100Kbits/
sec or more, they would make cut-down versions of the Web
unnecessary. Instead of i-mode or WAP, mobile users would
enjoy similar services to those available through a desktop
PC. But like so much in the wireless world, these plans proved
to be overly optimistic.
The most heavily promoted 2.5G technology is the General Packet
Radio Service (GPRS), an upgrade to GSM already deployed by
most of Europes network operators (Sonera was the first,
completing its upgrade nearly a year ago). The first phones
and data cards shipped this summer, offering speeds of about
30Kbits/ sec-a long way from the 171.2Kbits/sec originally
touted by vendors. Many in the industry now doubt that GPRS
will ever reach anything near its theoretical maximum, as
prototype terminals generated such high levels of microwave
radiation that they risked bursting into flames.
Standard Error
Though wireless operators now say that mobile multimedia will
have to wait for 3G or even 4G, technologies such as GPRS
will still have a great impact. Its a huge improvement
over what weve had in the past, says Boris Fridman,
chairman and CEO of Broadbeam, a wireless software company.
With packet switching, services such as WAP and i-mode are
finally practical outside of Japan.
Unfortunately for WAP, lack of a packetized Physical layer
isnt the only thing holding it back. Though often described
as a standard, its really a collection of proprietary
technologies cobbled together.
Its origins lie in a project at former carrier Omnipoint,
which wanted a wireless Internet service but couldnt
choose between four competing proposals. The vendors behind
these decided to pool their resources, but Omnipoint had disappeared
by the time a compromise system was ready. It was ultimately
taken over by Voicestream, ironically the only major operator
that doesnt yet offer WAP.
The fudged standard resulted in confusion and
incompatibility. WAP 1.0 through 1.2 (the present version)
required that every site be tested with every phone, and sometimes
rewritten to suit different devices. Two companies have even
claimed patents on parts of it: Geoworks for the menu-based
user interface, and Openwave for a method of transmitting
new content notifications through a narrowband channel (the
equivalent of putting a hyperlink in an e-mail).
Even when it worked, WAPs deviation from the familiar
Internet put extra barriers in its way. It replaced the entire
TCP/IP stack with new protocols of its own, requiring a special
server called a WAP gateway to convert between them . Encrypted
traffic had to be decrypted at the gateway, which gave the
gateway owner (the mobile operator) tremendous power. Any
company using WAP to carry sensitive information had to set
up its own private gateway and force all users to dial it
directly, or else strike a deal with every mobile operator
that customers or employees might go through.
To anyone setting up a WAP site, the most obvious difference
was that all sites had to be coded using WAPs own Wireless
Markup Language (WML). WAP gateways didnt convert between
WML and HTML; they dealt only with protocols. Though other
conversion tools were available, their output wasnt
something that anyone with a reputation to uphold would post
on the Web.
Many sites were coded by hand, and WML is harder to learn
than HTML. Despite the name, its really more of a programming
than a markup language, complete with loops and variables.
As an Extensible Markup Language (XML) variant, its
also less forgiving than HTML of errors and sloppy syntax:
Omitting even one tag can mean that an entire page fails to
display.
Far from a mass-market Web service, developers found WAP more
reminiscent of pre-PC hobbyist computing. File sizes were
limited to only 1Kbyte, crippling one of WMLs genuinely
useful innovations: the ability to place several pages of
cards into one file, or deck. Some
WAP browsers even lacked the most rudimentary text-display
feature of all: word-wrap. Pages had to be made to fit the
smallest possible cell phone, even though some users might
view them on a clamshell PDA with a widescreen display.
DoCoMo took the opposite approach: Instead of standardising
the proprietary, it used Internet standards in its own service.
Web pages are marked up in Compact HTML, a subset of the full
language. This makes converting sites from the regular Web
easy, and hand-coding even easier. (Its really just
HTML, with the more complicated features taken out.) Pages
will even display perfectly well in a regular Web browser.
Like WAP, i-mode uses its own (proprietary) mid-layer protocols
instead of TCP/IP, but it retains the Webs Application
layer, HTTP. This means that its gateways are transparent
to Secure Sockets Layer (SSL), the security protocol used
by most e-commerce sites. Data can be encrypted all the way
from a phone to a Web server, with DoCoMo unable to peek inside
in the way that WAP operators can. However, many site owners
still strike agreements with DoCoMo, because its billing model
enables everyone involved to make money.
Too Cheap to Meter?
New Economy pundits talked for years about micropayments,
small electronic transactions of around one cent. The hope
(and hype) was that these would enable Web content providers
to charge surfers very small amounts whenever they read a
page, eliminating the need for advertisements and allowing
literally anyone to go into business as a publisher. The problem
has always been that the Web lacks a billing system, and credit
card processing fees exceed the value of the transactions.
Phone companies do have billing systems which routinely record
calls costing only a few cents. DoCoMo has extended its own
billing infrastructure to i-mode, so that customers pay for
Web content through their phone bills. Content providers can
charge whatever they like per month (forewarning users in
advance, of course), with DoCoMo collecting the money for
them and taking a 9 percent commission. This percentage is
higher than the cut taken by Visa, MasterCard, or even American
Express, but theres no minimum charge. And its
much lower than the traditional publishing industry, in which
authors are very lucky if they get to keep 9 percent.
But DoCoMos system isnt perfect. Its based
on monthly subscriptions, so its not quite the click
here and be charged a nickel to read the next page model
that some micropayment advocates want.
Site owners have also complained that DoCoMo acts as a censor,
refusing to bill for sites that compete with or criticise
its own. There are rumours that it might start charging a
fixed fee in addition to the 9 percent, which could put small
content providers out of business. But it does permit many
sites to operate that otherwise would not: The banner ads
that finance a site like Networkmagazine.com simply couldnt
fit on a mobile phones small screen.
The rest of i-modes billing is also based on service
provided, not time spent online. E-mail, Intranet access,
and browsing free sites (although some sites charge a subscription
fee, there are still plenty of personal home pages and corporate
storefronts that dont) all cost about two cents per
kilobyte. DoCoMo itself offers special value-added services
at prices ranging from five cents for a new ring tone to 50
cents for a stock trade. The charges are deliberately low,
but they mount up to fat profits if each customer makes several
transactions a day.
Billing is crucial to DoCoMos expansion plans. The other
aspects of i-modes success are easily copied: packet
switching is coming everywhere, and the Internet standards
that the system is based on are by definition open to all.
Theres nothing to stop other operators from setting
up a copycat i-mode-style service, as its two competitors
in Japan did.
J-Phone chose Internet protocols and its own HTML-based Multimedia
Markup Language (MML), which includes more advanced graphics
features than i-mode. KDD was perhaps more clever, deploying
WAP but adapting the protocol so that it could access pages
written in compact HTML as well as WML. This gave its users
access to many i-mode sites, though not the paid-for content.
The original i-mode looks rather humble next to these two,
but DoCoMo isnt worried: The network is already overloaded,
and it would prefer that users migrate to new 3G services.
Mail Merge
The WAP Forum, the alliance of vendors and carriers that controls
WAP, has followed KDDs lead. WAP 2.0 adds compatibility
with more Internet standards, including Compact HTML, SSL,
and even TCP/IP (which i-mode does not support). Perhaps most
importantly, it will include a way for servers to push data
to clients, and a primitive kind of Computer Telephony (CT).
Push
has a bad reputation on the Web, but its vital to e-mail.
Most mobile operators have already tried to run e-mail over
WAP, building interfaces that allow customers to check certain
Web-based systems or (more usefully) any POP3 account . All
approaches share the same weakness: Users have no way of knowing
whether theyve received a message until they actually
dial in. Push would forward e-mails immediately and enable
other services, such as real-time calendar updates.
There are some non-WAP systems that allow push, most obviously
paging. In the United States, Cingular and AT&T Wireless
both provide e-mail and corporate network access over their
Mobitex and CDPD systems. These are already packet-switched
and offer wider coverage than WAP, but were designed for a
low-bandwidth era. Theres no voice, and per-second data
throughput is often measured in bits, not kilobits.
The Short Message Service (SMS) is a type of push technology,
built into all GSM and some CDMA phones. Its wildly
popular in Europe, even though messages are text-only and
restricted to around 100 characters, so Americas mobile
operators are now beginning to offer it. Some have even made
SMS interoperable with desktop instant messaging, the only
Internet service that has grown as fast as i-mode. (The two
arent really comparable, though, because i-modes
users are all paying customers, whereas instant messaging
services are free.)
DoCoMo has offered Internet-compatible e-mail since the beginning,
but this year it ran into problems as spammers and virus writers
attacked i-mode. In July 2001, the company cut its charges
for downloading e-mail, in response to customer complaints
about unsolicited advertising. It even admits that two-thirds
of i-mode users found spam so annoying and expensive that
they were forced to change their e-mail addresses at least
once.
Worse, the combination of spam and CT has led to a dangerous
virus epidemic. A malicious user can send a message to an
i-mode phone that makes it dial a phone number, often a premium-rate
one. The most serious such script was used to orchestrate
a Denial of Service (DoS) attack on the police, with thousands
of phones simultaneously making hoax calls.
The possibility of abuse isnt the only reason that some
people oppose adding new features to WAP. The mighty GSM Association
is worried that so many options could further confuse an already-fragmented
system. In June 2001, it published what it called the M-Services
Initiative, a set of guidelines for GPRS mobile data.
This wasnt an attempt to replace WAP, as some of the
media claimed at the time, but an attempt to put it under
some kind of control.
M-Services was endorsed by a long list of phone vendors and
mobile operators, with WAPs four putative father companies
at the top. They dont wish to capitalise on every option
outlined in the complex WAP 2.0, but rather desire a set of
rules to enforce compatibility, both with each other and the
wider Internet. And they know that if their own association
doesnt lay down these rules, NTT DoCoMo will.
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