U.S. wireless carriers are starting to hit some roadblocks as they install cellular telephone networks using a technique called General Packet Radio Service, or GPRS. It's led some industry insiders to believe carriers are slowing their plans to roll out networks nationwide by the end of the year.
The latest sign of trouble with the technology surfaced this week when wireless equipment maker Sierra Wireless put on hold a shipment of GPRS laptop modem cards to AT&T Wireless. Sierra Wireless Chief Executive David Sutcliffe said he knows of no reason why the card, which has been certified for use by a Canadian AT&T Wireless subsidiary, isn't passing muster. An AT&T Wireless representative has declined comment.
The development has helped conjure up more speculation that carriers using GPRS--such as VoiceStream Wireless, AT&T Wireless and Cingular Wireless--are having problems with their plans to crisscross the nation's biggest cities with these networks. All three carriers deny there are any major technological problems like those that European carriers had two years ago while building their GPRS networks--problems that have left many in near financial ruin.
But many industry insiders say otherwise. "GPRS should have been low-hanging fruit," said John Diehl, president and chief executive of PrairieComm, which makes cell phone chips. "But there's been a lot of stumbling."
tive has declined comment.
The development has helped conjure up more speculation that carriers using GPRS--such as VoiceStream Wireless, AT&T Wireless and Cingular Wireless--are having problems with their plans to crisscross the nation's biggest cities with these networks. All three carriers deny there are any major technological problems like those that European carriers had two years ago while building their GPRS networks--problems that have left many in near financial ruin.
But many industry insiders say otherwise. "GPRS should have been low-hanging fruit," said John Diehl, president and chief executive of PrairieComm, which makes cell phone chips. "But there's been a lot of stumbling."
"GPRS phone rollouts haven't been as successful," said Research in Motion Chief Financial Officer Dennis Kavelman. RIM is selling a GPRS version of its popular BlackBerry pager in Europe and the United States. "GPRS is incredibly complex. There have been delays all across the board," he said.
Openwave Systems Chief Financial Officer Alan Black started the year thinking it would be a busy one for GPRS. He was expecting 250 wireless carriers worldwide building wall-to-wall GPRS networks in their coverage areas. But now he thinks the number of GPRS networks completed in 2002 will be less than 100.
"Operators are investing in GPRS on a slower pace than once thought," Black said.
Sutcliffe believes U.S. carriers have set more realistic expectations. "I don't sense momentum has decreased, just that people's expectations are getting more realistic," he said.
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