New venture aims to capitalise on emerging markets for GSM technology
Today's GSM market is dominated by the voice-phone handset production of Nokia, Ericsson and Motorola, who between them have around 65% of market share worldwide.
However, PA Consulting Group have concluded that this environment will change over the next five years. The management and technology consultancy - 25th largest in the world by revenue, and known as a leader in the field of wireless telecommunications - points to the growing importance of two entirely new GSM markets, as GSM connectivity is used in non-telecommunications products, and UMTS, the third generation sister technology to GSM.
PA's Technology arm has set up a new venture to capitalise on these developments. The company - called UbiNetics - will focus on both of these new markets.
In the first place, UbiNetics will be developing off-the-shelf GSM technology solutions for data-centric applications and specialist voice terminals. The solutions will meet the need for GSM connectivity in innovative new products, such as:
- Snack-vending machines that use wireless communication to request refills, servicing, and to warn of faults or vandalism. These solutions will be used where a wired connection would not be commercially viable
- Wireless communication to be included in personal computers, laptops, palmtops and Personal Digital Assistants (PDAs) - removing the need for business-people to use a tangle of cables to dial into a company network while working away from the office
- Applications within cars that also draw on wireless technology, with so-called in-car telematics. For example, as well as today's navigation devices, tomorrow's smart car will be able to 'speak' to its own service centre
- Utility meters that use wireless data to send meter readings to water, gas and electricity utility companies and allow, for example, tariff changes (including peak-time and off-peak charges), or remote control of appliances.
The PA venture is seeking to provide manufacturers of all the above applications, and more, with the wireless technology they need. President of the new venture, Ali Pourtaheri, said:
''Automotive manufacturers, for example, are not GSM experts; neither are vending machine manufacturers. Such companies will need solutions that provide GSM functionality with minimum investment in developing the technical competency. Some will want a module that they can simply plug and play. UbiNetics will provide them with a complete off-the-shelf solution.''
PA will design and develop the GSM solution building on Texas Instruments' (TI) leading baseband solution. The TI GSM product includes hardware and in-house-developed layer 1 software, both proven through multiple Final Type Approvals (FTAs) and millions of handsets produced. The associated GSM layer 2&3 protocol stack software is provided by Condat GmBH.
Texas Instruments are the world leaders in digital signal processing (DSP) solutions and have DSP devices in more than half of all the digital cellular phones currently in the market. Condat are a leading supplier of Telecommunication Software with over nine years' experience in GSM and a product-offering including GSM protocol stacks and test systems for handset and network manufacturers as well as for network operators.
Said Mr Pourtaheri:
"PA have the GSM systems integration and product development know-how and the ability to deliver and support complete solutions in the marketplace."
In addition to its GSM focus, UbiNetics will design predeveloped products for UMTS (Universal Mobile Telecommunications Systems), the next or 'third generation' system that will eventually complement GSM on a global basis.
Mr Pourtaheri stated:
"The UMTS market is complex, but we understand both the technology involved and the market itself. Our UMTS demonstrator shows the level of our technology understanding, and we are in an excellent position to offer products and services that meet the needs of semiconductor, terminal and infrastructure vendors and the operator community."
The new venture is a wholly owned subsidiary of PA Consulting Group, the global management and technology consultancy. Jon Moynihan, the Executive Chairman of PA, said:
"The wireless communications market is one of the most dynamic business sectors in the world today. This new venture will help build us a leading position in this market.
Our existing Wireless Technology Consulting Practice will continue to focus on in-depth technology consultancy to the wireless communications marketplace and development of bespoke solutions, while the new venture will concentrate on the development of off-the-shelf products and intellectual property in these specific niches.
Our rationale for having a separate venture is that product development requires a different business model from the traditional way consultancies operate. Product development requires significant investment, and a differing approach to organising and marketing the product.
The new venture has the investment and commitment to develop the key technologies needed. At PA, we see it as an important step in meeting the needs of tomorrow's wireless communications market."
