Calls made through cellular, wi-fi convergence

By Leo Magno, INQ7.net

BARCELONA, Spain--The emergence of VoIP (Voice over Internet Protocol) as an alternative to traditional phone networks has long been discussed, but at the 3GSM World Congress held here, a compromise has been struck between the cellular network and wireless fidelity (wi-fi).

Word has been spreading that wireless voice calls may, in the future, be routed through Internet traffic instead of the cellular network. Through wireless local area networks (WLANS) or wi-fi, people are able to make calls via their computers. But since you cannot carry your PC around the mall or place your notebook next to your ear, wouldn’t it be good make VoIP calls using a mobile phone?

A mobile way of making calls using a converged cellular and IP network was shown at the 3GSM World Congress. A live demonstration was made by Nokia using unlicensed mobile access (UMA), where a call from a GSM network switched over to a wi-fi connection seamlessly. The hybrid GSM-WLAN phone used was the Nokia 6136.

Imagine you’re at a mall or at home with a wi-fi connection. You can use the hybrid phone to make calls using VoIP. Then, when you move away from the wi-fi range, the call would be handed over, without dropping, to the GSM network used by your cell phone.

The call cost would drop dramatically since you do not pay extra minutes while in range of the wi-fi access (which, we are assuming, is already paid for). You would only pay for the minutes used when you move out of range of the wi-fi hotspot. This increases mobile service availability, decreases subscriber call cost and, for the operator, decreases the costs related to network deployment.

Hybrid or converged devices like the Nokia 6136 shows a complementary way of using VoIP and cellular, whereas before VoIP was seen as a threat to both cellular and landline. Here, we see the cellular side and the Internet side meshed together into a core network.

On the user end, you’d have an expanded range of mobility, according to Kai Oistamo, executive vice president and general manager for mobile phones at Nokia.

“You can use wi-fi where the GSM signal is weak because each wi-fi access point or base station acts as a connecting tower as if it were a cell site,” he said.

If the user already has access to a wi-fi network at home or outside, wi-fi is used to include voice calls, bringing down the total call cost and optimizing the use of the hotspot.

On the operator end, said Oistamo, operators can introduce new service plans with competitive prices when the phone is used at home or at wi-fi hotspots.

“This means less cost and less congestion for operators,” said Oistamo, as the traffic is rerouted through the Internet instead of through the cellular network.

This is made possible by Nokia’s Unified Core Network solution for converging Internet and cellular networks, of which UMA is a key part. UMA technology enables the use of broadband and unlicensed access technologies such as wi-fi to expand mobility for users of voice and data services. It can also be an alternative approach to extending cellular indoor coverage (where signal is weak indoors) and to areas unserviced by the cellular network but have wi-fi coverage.

In the Philippines, mobile operators Smart Communications and Globe Telecom have both cellular and wireless Internet networks and could theoretically deploy such a converged GSM/wi-fi service.

“That innovation is inevitable, thus telcos have to make the most out of them for the benefit of the consumers,” said Jones Campos, assistant vice president for public relations at Globe. “Affordability and superior service is also crucial. It should be easy to use.”

Ramon Isberto, public affairs head of Smart, had the same concerns.

“This will be rolled out in the country but to really catch on, the technology should be easy to use,” he said.

And, since wi-fi would soon allow people to use hybrid handsets to make VoIP calls, the “right business model” would help it fare better in the country, Isberto said. He added that American operator Vonage, which has been commercially offering VoIP services via mobile, has not reported significant revenues from the service.

Vonage is offering mobile calls via Internet for 14.99 dollars a month.

“How to make money is the issue with VoIP,” said Isberto.

Smart currently offers its own wi-fi service with Smart WiFi, coupled with broadband wireless networks through Meridian Telekom and the Internet services of its parent company, the Philippine Long Distance Telephone Co.

Globe, on the other hand, offers Internet and data services via GlobeQuest. GlobeQuest head Jesus Romero said that hybrid GSM/wi-fi phones and converged services are promising.

“We think this is good because it will expand the base of those who can use VoIP over wi-fi,” said Romero.

But will the number of hotspots in the Philippines and the technology itself become an issue, bearing in mind that wi-fi was not designed to carry voice?

“The technology will not be an issue,” Romero said. “If they launch that phone, operators should provide the services around it. The services should leverage on the technology.”

Romero added that such a technology may actually spur the growth of wi-fi in the country.

“Wi-fi is now used mainly for browsing,” he said. “With voice, it will increase the usage and the number of hotspots.”

Is Globe looking at deploying such converged services?

“Definitely we will introduce it when it comes to the market,” Romero said.

Elsewhere, European operator Orange has announced that it will be using the Nokia 6136 to offer a converged GSM/wi-fi service.

With a report from Erwin G. Oliva