Wireless Industry Sees Rapid Growth and Innovation in the Late 1990s

Strategic Insights -

The late 1990s were a period of significant growth and innovation in the wireless industry, with major players such as Ericsson, Nortel Networks, and AT&T Wireless Services making significant strides in improving network capacity, introducing new technologies, and expanding services to meet the increasing demand for wireless communication. The industry saw the emergence of new technologies such as Time Division Multiple Access (TDMA) and third-generation (3G) mobile services, which promised faster data rates and more sophisticated services. Companies such as Movilnet and Ericsson signed significant agreements to expand and modernize their networks, and industry leaders like Clive Woodlock were appointed to drive the adoption of new technologies and standards.

Key Takeaways:

  • The Universal Wireless Communications Consortium (UWCC) appointed Clive Woodlock as its director for the Asia Pacific Region, with a focus on implementing the TDMA standard in the region.
  • Ericsson presented its visions and strategies for next-generation networks at a special event in New York City, where 10 wireline operators had already selected its next-generation solutions during 1999, worth more than USD 800 million.
  • AT&T Wireless and Ericsson created an overlay system in the Miami market to boost network capacity by adding new radio hardware and making efficient use of available spectrum.
  • Nortel Networks secured a supply agreement with AT&T for wireless network equipment and services worth up to USD 600 million over three years.
  • Movilnet and Ericsson signed a USD 200 million frame agreement to expand the Movilnet TDMA network and introduce EDGE technology, paving the way for third-generation (3G) mobile services.

Statistics:

  • The demand for AT&T's wireless voice and data services was increasing rapidly, with hundreds of thousands of new customers added each month.
  • Ericsson estimated that its next-generation solutions claimed more than 35 percent of the world market worth over USD 800 million.
  • The overlay system created by AT&T Wireless and Ericsson increased network capacity by adding new radio hardware and making efficient use of available spectrum.
  • Nortel Networks expected to supply TDMA ANSI-136 wireless equipment and services in Arizona, California, Nevada, Oregon, and Washington.
  • The Movilnet TDMA network had already been modernized from analog to digital technology since 1995.

Sources:

  • Business Editors (Dec. 21, 1999)
  • Ericsson (Get Insp(w)ired event)
  • AT&T Wireless Services
  • Nortel Networks (supply agreement with AT&T)
  • Movilnet (agreement with Ericsson)