Traditional retail chains that pioneered sales over Web sites are finding wireless to be a much-needed third sales channel. Customers can buy products with wireless devices, or they can be directed to a Web site. "The marketing deals [we made] with the carriers will make the sites more accessible to the masses," says Barnesandnoble.com's Albert. Barnesandnoble.com also decided to use wireless to help boost revenue for its brick-and-mortar stores by launching store-locator services. "Wireless presented us with profound new business opportunities that we're taking advantage of," he says.

The airline industry is hoping for the same success and innovation. Long assailed for sub-par customer service, airlines are starting to use wireless technology to deliver timely flight data and booking services. For example, Continental Airlines Inc. has launched a Web site add-on called Flight Status Notification System. Travelers sign up on the company's Web site to receive E-mail updates on their cell phones and pagers one, two, three, or four hours before their flights' scheduled departures. The updates inform travelers whether their flights are on time or canceled; they receive the gate number prior to reaching the airport, speeding up travel time.

"Customers in our focus groups asked for it and we figured, 'Why not?' It's easier for both sides for fliers to get this information wirelessly rather than having to call us," says Anna Adamo, manager of E-markets for Continental. She adds that the airline provides the service because it requires minimal text, which matches well with the small display screens of wireless devices. The free service was launched in late spring and is available only on Palm VII devices.

Other sectors of the transportation industry are also harnessing wireless technology. For instance, automakers are using it in an effort to transform vehicles into mobile offices. General Motors Corp.'s navigation systems subsidiary, OnStar Communications, will provide drivers voice access to the Internet, starting with 30 of its 2001 models due to hit dealers' lots this fall. "We see this not only as an alternative to calling our service center for information but also as an opportunity to give drivers an easy tool to access travel information and then open this up to content providers," says Bruce Radloff, CIO at OnStar. "The voice interaction is what makes this capability so appealing."

The OnStar service provides airbag deployment notification, remote door unlocking, location services, stolen-vehicle tracking, and remote diagnostics. The price ranges from $199 to $399 a year, depending on the services selected.

Company research shows that OnStar users want more. They're looking for hands-free, voice-activated capabilities that include personal calling and voice-based, personalized Web information. OnStar is banking on its market research to validate the services: There are 75 million cellular phone users in the United States today, and 50% to 80% of the calls are made from vehicles.

With the new services, drivers will set up profiles from their desktop PCs that are then kept on servers in OnStar's service centers. With a hands-free, voice-activated interface, OnStar subscribers will use voice prompts, such as "Start my E-mail" or "Start my stock quotes" to receive information via the Internet. The service will convert Internet text to speech and read the information via synthesized voice.

The automotive industry is racing to develop such services because cars are becoming peoples' mobile offices, says Thad Malesh, director of North American forecasting at J.D. Power and Associates. "People are spending more and more time in vehicles because of travel and traffic," he says. "They want to stay in touch with their offices and customers. The pace of business is picking up, and they have to have voice and data communications capabilities."

Auto manufacturers are taking note, developing systems that are finding their way into luxury cars and high-end SUVs. "Given demand, the quicker they're offered in a broader range of vehicles, the quicker companies recoup their R&D investments and start boosting their bottom line," Malesh says.

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