InformationWeek

Barnesandnoble.com realized that creating those capabilities wouldn't be enough to attract customers without an aggressive marketing plan. So it quickly cut deals with four major wireless services providers-AT&T, Omnisky, Sprint PCS, and Verizon Wireless-to have its name listed on the main menus of the operators' phones. That way, its site was just a few clicks away from potential customers who may want to enter the Web address from tiny keypads.

What nontechnical development convinced Robert Albert, director of mobile strategies for Barnesandnoble .com, that the time was right to launch its wireless blitzkrieg? "My parents bought their first cell phone," he says. "Whenever your parents get new technology, you know it's going mainstream. Which made me say to myself, 'Wow, wireless IS ready for prime time.'"

The retail firm isn't alone in applying wireless technology for business gain. Airlines, truckmakers, vehicle navigation vendors, and financial-service companies are starting to roll out offerings. The first hosted wireless auction sites and marketplaces have emerged. And businesses are opening the gates of their internal applications and back-end systems to mobile workers.

The use of wireless technology is growing rapidly. Case in point: A Finnish rock band is downloading songs to its fans on wireless devices-part of an emerging trend in Europe and Japan to morph wireless phones into entertainment and game devices, which are being produced by Nintendo, Sega, and Sony. The United States, so accustomed to being in the forefront of technology, lags behind Europe and Asia in wireless implementation.

Why is our planet quickly becoming a wireless world? The installed base of wireless voice phones is skyrocketing, as is the use of personal digital assistants, which set the stage for more data-capable units. Mobile capability is expanding beyond cellular phones, PDAs, and pagers to specially equipped notebook computers, and task-specific handheld devices.

The pervasiveness of wireless devices makes it easier to justify the business reasons for implementing apps using the technology. Companies are discovering that it's a competitive advantage to have employees in touch with important data while on the road. Wireless technology is also becoming a revenue generator, delivering information that facilitates sales.

The total number of wireless subscribers in North America will more than double between 2000 and 2004, from about 89 million to 191 million, according to Ovum, an international consulting and research firm. In Europe, the growth rate is similar, from 162 million subscribers this year to 380 million by 2004, Ovum says. Growth for the installed base of mobile terminals is also substantial. In Europe, the number will increase from 129 million in 2000 to about 247 million in 2004. In North America, that figure will increase from 98 million to 194 million, Ovum says.

What the market forecasts don't show is that companies face numerous obstacles in putting wireless to work, including technical, educational, strategic, and marketing challenges. For example, putting Web content in multiple markup languages and formats for different devices is a huge task. Couple that with low-bandwidth wireless networks and the job becomes even tougher.

"Providers must create easy-to-use services that can get by with the limited bandwidth of U.S. operators' wireless networks," says Mark Lowenstein, executive VP of the Yankee Group's wireless practice. "It's a delicate dance in that complexity will alienate these same potential users.''

Despite the obstacles, companies in several vertical markets are moving ahead with wireless technology. One of the biggest users is the retail industry. Before wireless services were available, customers had to visit stores, call toll-free numbers, or log on to a Web site (from a nonwireless computer) to buy products. Now, retailers are supporting wireless access to their E-commerce Web sites and using locator services to drive customers to their storefronts. "All this is beginning to change as companies and customers realize that using mobile devices is not like surfing the Web on a PC," says Lowenstein.

Vicinity Corp., for example, is helping retailers direct customers to their stores through wireless devices. Companies send a list of all their stores to Vicinity's database. When a user clicks on a given brand listed in a mobile device and keys in his or her location, the closest stores are displayed along with directions. The user can also click on the store and the wireless device will then call that store.

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