InformationWeek

CDPD Its Time Has Come

New products based on cellular digital packet data technology may finally take the communications world by storm

The communications industry for years has touted cellular digital packet data (CDPD), a standards-based technology for transmitting digital data over the airwaves. But until now, there's been more talk than action, with cellular carriers offering limited services. That should change in 1995 when a flood of CDPD products and services is expected to hit.

The CDPD Forum, a group of cellular carriers and equipment makers, forecasts that commercial CDPD services will roll out in 50 metro areas in the first quarter of 1995. The forum also expects to showcase a customer with a commercial application that interoperates across multiple carrier regions, according to Rand Baldwin, executive director of the group in Santa Clara, Calif.

Despite delays in getting CDPD to market, interest among corporate users has been growing. A year ago, the Yankee Group Inc., a Boston consultancy, found that fewer than 10% of communications managers surveyed were considering CDPD. In a recent survey, 23% said they're considering CDPD. This year, Baldwin says, coverage areas will increase "exponentially." CDPD Forum membership now represents 95% of the U.S. cellular market and 57% of the Canadian market. The forum, Baldwin notes, is one of CDPD's biggest proponents.

Dramatic Growth
Overall demand for wireless data services is growing dramatically. The Yankee Group estimates the wireless data market will increase from about $700 million in 1994 to $3.8 billion in the ye ar 2000.

Much of that growth is expected to come from CDPD. "Most customers already are familiar with cellular technology and see CDPD as an upgrade to existing cellular networks," says Roberta Wiggins, an analyst with the Yankee Group. "Even if they don't understand the intricacies of CDPD, they view it as a reliable alternative with a viable future when compared with other wireless network alternatives."

Unlike other wireless technologies that use radio frequencies or satellite communications, CDPD leverages today's cellular infrastructure, including current cellular network equipment, allowing customers to send and receive data using existing cellular systems. CDPD also interfaces with land-line data networks and is based on popular networking protocols such as TCP/IP. Further, CDPD provides for data transmission at speeds of 19.2 Kbps, while other wireless data services have top speeds of only 8 Kbps.

Companies are considering CDPD for applications that are too costly for other wireless data ser vices, such as remote utility reading, package and vehicle tracking, and remote management of vending machines. By the year 2000, analysts expect millions of companies will use CDPD for mobile office applications, personal communications, access to corporate computing resources, field service, and logistics management.

Proponents believe CDPD will take off once carriers expand their offerings. McCaw Cellular Communications Inc., before it was acquired by AT&T, originally promised to make CDPD available in more than 100 markets by the end of 1993. But so far, the McCaw unit's AirData service is available in only six cities. The division still plans a broader rollout but won't say when.

AT&T Wireless Network Systems, which offers cellular switching and transmission equipment to other cellular carriers, has unveiled a network management interface for its CDPD product. AT&T has worked with several companies to provide CDPD services, including GTE Mobilenet in Houston, Bell Atlantic in the Washi ngton/Baltimore area, and Nynex in New York. Bell Atlantic has launched commercial CDPD services in Washington/Baltimore, Pittsburgh, and limited sections of Philadelphia and northern New Jersey.

Testing Testing
Other CDPD tests are under way. Long-distance carrier Sprint is installing CDPD equipment for an oil and gas company pilot test in New Mexico. Nynex Mobile Communications is testing CDPD in New York and plans to offer service in early 1995. Ameritech Inc. has services in Chicago, Detroit, and St. Louis and will expand to Wisconsin and Ohio in 1995. GTE has commercial service in San Francisco and Houston and will roll out CDPD service to other major markets this year.

Several potential CDPD users are eager to test it. In a BellSouth Cellular pilot, Indiana Gas Co. in Indianapolis uses CDPD to dispatch service trucks. Rick Schach, director of applications development for Indiana Gas, says 20 to 30 trucks will be equipped with prototype mobile system devices to automate dispatc hing and cut travel time. The system will include equipment in each cell and a switching center to track, verify, and identify the location of dispatch vehicles and route data.

Indiana Gas has used radio network frequencies to dispatch service vehicles. But the company realized that growing demand for information would mean leasing additional radio towers or building its own towers throughout its service region. While testing a new technology presents some problems, Schach says the payoffs can be substantial. If the system works as promised, Indiana Gas hopes to expand its cellular efforts to marketing personnel and executives.

If the dispatch application is successful, software development partner IBM Integrated Systems Solutions Corp. "will market the software to other companies and pay us royalties," Schach adds.

Finger On The Pulse
Another early user of CDPD is the cardiology center at Emory University in Atlanta. "It's our job as an academic health-care center to try new t hings, and CDPD seems like a good fit," says Jeffrey Dunbar, administrator of the health communications project at the university.

Emory's cardiology staff will use the CDPD system to send medical data, such as changes or additions to patient records or vital statistics, to Emory's mainframe or any host computer on the Internet. "We will see how well the CDPD system works with other devices," Dunbar says. "We want to be sure the cellular transmissions doesn't interfere with other equipment on the floor."

The Emory trial will begin in the spring and last 12 to 18 months. Dunbar sees the system as a big step toward streamlining the upkeep of patient records, and enabling health-care professionals to access to patient information from any location in the hospital. In the long run, the hospital even sees opportunities to provide medical services to patients in rural parts of Georgia via telemedicine. As with Indiana Gas, the services will be evaluated for commercial deployment to hospitals and health-care facilities.

These and other tests will help determine whether CDPD will eventually become the primary technology used by mobile workers to transmit and receive data.

Comments on this story?