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<td style='padding:0cm 0cm 0cm 0cm'>
<p class=MsoNormal><b><font size=4 color=black face=Verdana><span
style='font-size:13.5pt;font-family:Verdana;mso-bidi-font-family:Tahoma;
color:black;font-weight:bold'>Bridging Cellular and Wireless</span></font></b><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:Tahoma;
color:black'><o:p></o:p></span></font></p>
</td>
</tr>
<tr>
<td style='padding:0cm 0cm 0cm 0cm'>
<p class=MsoNormal><b><font size=2 color=black face=Verdana target="_blank"><span
style='font-size:10.0pt;font-family:Verdana;mso-bidi-font-family:Tahoma;
color:black;font-weight:bold'>Local area wireless and cellular networks will
eventually appear to merge. There's a nice business opportunity in making
that possible.</span></font></b><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
</tr>
<tr>
<td style='padding:0cm 0cm 0cm 0cm'>
<p class=MsoNormal><i><font size=2 color=black face=Verdana target="_blank"><span
style='font-size:10.0pt;font-family:Verdana;mso-bidi-font-family:Tahoma;
color:black;font-style:italic'>By <a
href="http://lw9fd.law9.hotmail.msn.com/cgi-bin/compose?mailto=1&msg=MSG1061826249.13&start=105438&len=35140&src=&type=x&to=rafen%40rafeneedleman%2ecom&cc=&bcc=&subject=&body=&curmbox=F000000001&a=dd1791b5f75e981cc37d05435d363a16"><font
size=1 face=Tahoma><span style='font-size:8.5pt;font-family:Tahoma'>Rafe
Needleman</span></font></a>, August 25, 2003</span></font></i><font size=1
color=black face=Tahoma><span style='font-size:8.5pt;font-family:Tahoma;
color:black'><o:p></o:p></span></font></p>
</td>
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<p class=MsoNormal><font size=1 color=black face=Tahoma><span style='font-size:
8.5pt;font-family:Tahoma;color:black'><br>
</span></font><i><font size=2 color=black face=Verdana target="_blank"><span
style='font-size:10.0pt;font-family:Verdana;mso-bidi-font-family:Tahoma;
color:black;font-style:italic'>Dear Readers: I am taking the month of September
off for my honeymoon. I'll be back in October, but my column will be put out by
a different publisher, so Thursday's column will be my last for Business 2.0.
If you're an e-mail subscriber to What's Next, you'll automatically receive the
new column when it starts. If you're not, but you'd like to be added to the
mailing list, please drop me a line: rafen@rafeneedleman.com. Thanks!</span></font></i><font
size=2 color=black face=Verdana><span style='font-size:10.0pt;font-family:Verdana;
mso-bidi-font-family:Tahoma;color:black'> <br>
<br>
In April I hosted an event where four <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=214be1976a4c8eef8e36545ec08faf90&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c14915%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>Wi-Fi</span></font></a> companies pitched their business
models to an audience of <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=096601af6c374b9bf82ee2458596b53e&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c193%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>venture capitalists</span></font></a>. In August I handled
a similar event for cellular-application companies. Afterward I wondered, Did
we really need two different events? <br>
<br style='mso-special-character:line-break'>
<![if !supportLineBreakNewLine]><br style='mso-special-character:line-break'>
<![endif]><o:p></o:p></span><!--Begin Fact Box--></font></p>
<table border=0 cellspacing=0 cellpadding=0 align=right width=170
style='width:127.5pt;mso-cellspacing:0cm;background:#990000;mso-table-anchor-vertical:
paragraph;mso-table-anchor-horizontal:column;mso-table-left:right;mso-table-top:
middle' target="_blank">
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<td valign=top style='padding:.75pt .75pt .75pt .75pt' target="_blank">
<div align=center>
<table border=0 cellspacing=1 cellpadding=0 width="100%" style='width:100.0%;
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<tr>
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target="_blank">
<div target="_blank" size="2">
<p class=MsoNormal align=center style='text-align:center'><b><font size=1
color=white face=Arial target="_blank"><span style='font-size:8.5pt;
font-family:Arial;color:white;font-weight:bold'>FAST FACTS</span></font></b><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</div>
<div target="_blank">
<p class=MsoNormal align=center style='text-align:center'><b><font size=2
color=white face=Arial target="_blank"><span style='font-size:10.0pt;
font-family:Arial;color:white;font-weight:bold'>BridgePort Networks</span></font></b><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</div>
<div target="_blank">
<p class=MsoNormal align=center style='text-align:center'><font size=1
color=white face=Arial target="_blank"><span style='font-size:7.5pt;
font-family:Arial;color:white'><a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=265ed14d557f67198f2e656f5609db8a&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebridgeport%2dnetworks%2ecom"
target="_blank"><font size=1 color=white face=Tahoma target="_blank"><span
style='font-size:8.5pt;font-family:Tahoma;color:white'>www.bridgeport-networks.com</span></font></a></span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</div>
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<tr>
<td width="20%" style='width:20.0%;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>CEO</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td width="80%" bgcolor="#e5d7a4" style='width:80.0%;background:#E5D7A4;
padding:2.25pt 2.25pt 2.25pt 2.25pt' target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>Tom Carter</div>
<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>HQ</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>Seattle</div>
<o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>FOUNDED</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>February 2003</div>
<o:p></o:p></span></font></p>
</td>
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<tr>
<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt' target="_blank">
<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>EMPLOYEES</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>10</div>
<o:p></o:p></span></font></p>
</td>
</tr>
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<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt'>
<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>FUNDING</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>Privately funded to
date, currently raising $10 million venture round</div>
<o:p></o:p></span></font></p>
</td>
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<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt'>
<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>PROFITABLE?</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>Projected for 2005</div>
<o:p></o:p></span></font></p>
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<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt' target="_blank">
<p class=MsoNormal><font size=1 color="#990000" face=Tahoma target="_blank"><span
style='font-size:7.5pt;font-family:Tahoma;color:#990000'>MARKET</span></font><font
size=1 color=black face=Tahoma><span style='font-size:8.5pt;font-family:
Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
<td bgcolor="#e5d7a4" style='background:#E5D7A4;padding:2.25pt 2.25pt 2.25pt 2.25pt'
target="_blank">
<div target="_blank" size="-2">
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'>Cellular/Wi-Fi
integration</div>
<o:p></o:p></span></font></p>
</td>
</tr>
<tr>
<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt'>
<p class=MsoNormal><![if !supportEmptyParas]> <![endif]><font size=1
color=black face=Tahoma><span style='font-size:8.5pt;font-family:Tahoma;
color:black'><o:p></o:p></span></font></p>
</td>
<td style='padding:2.25pt 2.25pt 2.25pt 2.25pt'>
<p class=MsoNormal><![if !supportEmptyParas]> <![endif]><font size=2
color=black face="Times New Roman"><span style='font-size:10.0pt;
color:black;mso-color-alt:windowtext'><o:p></o:p></span></font></p>
</td>
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</table>
</div>
<p class=MsoNormal><font size=1 color=black face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma;color:black'><o:p></o:p></span></font></p>
</td>
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</table>
<p class=MsoNormal><font size=2 color=black face=Verdana><!--End Fact Box--><span
style='font-size:10.0pt;font-family:Verdana;mso-bidi-font-family:Tahoma;
color:black'>On the face of it, the answer is obvious: The cellular network is
radically different from the Wi-Fi network (if you can even call it that).
Cellular communication is routed by a few companies; Wi-Fi is a free-for-all.
Cellular data <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=f1520c026445af3dc7b6c7b4c3708437&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c4716%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>bandwidth</span></font></a> is limited; Wi-Fi speed is
generally very good. Cellular's range is miles; Wi-Fi's is feet. And most
important, companies know how to bill for cellular. Wi-Fi billing is all over
the map, from free to absurdly expensive. <br>
<br>
For wireless innovators, picking the underlying network is probably the most
critical decision. If we are to believe the latest projections, there will soon
be more <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=dda3cea6e30fc1140fcebb86cbe578f1&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c3748%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>cellular phone</span></font></a> on Earth than atoms in the
universe, which will certainly appeal to companies in the business of wireless
apps. However, the cellular value chain is largely controlled by stodgy
cellular companies, and it restricts businesses from reaching customers or
making good money from them; Wi-Fi has none of those limitations. <br>
<br>
A few companies have tried to bridge the gap between Wi-Fi and cellular -- not
with applications, but with infrastructure. Back in April I wrote about two of
them, ipUnplugged and Padcom. Both make it possible for a data connection to
stay alive as it hops from cellular to a <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=e559dae58a2d57497abd0baa8a384dbb&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c4420%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>local area network</span></font></a> link. But data isn't
the most important battleground for the Wi-Fi/cellular connection. Voice is. <br>
<br>
That's where an interesting startup, BridgePort Networks, comes in. This
company makes a gateway device that can transfer a cellular voice call to a
Wi-Fi connection (or vice versa). You can't currently buy a phone that contains
both a cellular and a Wi-Fi radio, but <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=81c7a359982ae15f49861d603630a786&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c1660%2c6775%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>Motorola</span></font></a> (<a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=607179cca5baf5330939b85edecb5c3f&lat=1061872716&hm___action=http%3a%2f%2fqs%2emoney%2ecnn%2ecom%2fapps%2fstockquote%3fsymbols%3dMOT"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>MOT</span></font></a>), LG Electronics, and other companies
are working on such devices, and Texas Instruments (<a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=1d101c7342175316dd9dd1153f7ad670&lat=1061872716&hm___action=http%3a%2f%2fqs%2emoney%2ecnn%2ecom%2fapps%2fstockquote%3fsymbols%3dTXN"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>TXN</span></font></a>) has a <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=75fb0fe7bafaaf7cfefc5aa08855081c&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c1660%2c16565%2cFF%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>PDA</span></font></a> concept code-named WANDA, for
wireless any-network digital assistant. <br>
<br>
Given the differences between cellular and Wi-Fi, BridgePort's gateway has to
quickly accomplish a lot to manage the handoff from one network to another.
However, it's worth noting that when the cellular companies started to roll out
digital cellular on top of their analog networks, they built some of this
technology into their networks and dual-mode phones. The phones could then make
a second connection in the background so a call could seamlessly hop from
digital to analog midconversation. The cellular/Wi-Fi phones will do a similar
thing. <br>
<br>
Once the handoff-technology issue is solved, though, the real challenge
emerges: billing and access control. The cellular carriers charge a lot for a
cellular call, because they own the airwaves and transmission equipment and
they subsidize phones that, without roaming agreements, can't work on other
networks. Not so with Wi-Fi: A Wi-Fi product can connect to any Wi-Fi network.
But the cellcos are surely looking at Wi-Fi as a great way to offload traffic
from their overloaded cellular equipment. So BridgePort and the cellular
companies will have to figure out a way to do handoffs based not just on which
available network has a better signal at the moment, but also on the
potentially complex economics surrounding equipment and network ownership and
the cost of using particular Wi-Fi connections. <br>
<br>
Since Wi-Fi also reaches deep into office buildings, where cellular often has
problems, BridgePort's technology could be very attractive to enterprise
customers and thus to cellular carriers that serve them. I expect to see the
service and dual-mode phones first offered to businesses, not individuals. <br>
<br>
And if dual-mode devices (phones, PDAs, and <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=8f1eb9d79d3ae0b1329b84a980f7a9b2&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c43297%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>laptops</span></font></a>) do eventually get traction,
BridgePort will end up as a primo <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=617a7c3654f3c978068880f3960918b8&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwebguide%2f0%2c%2c189%2c00%2ehtml"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>acquisition</span></font></a> candidate. Some cellular
hardware companies, like Motorola, are working on dual-mode equipment for the
core of the network, but others are sitting on the sidelines, waiting to see if
this trend has legs. Obviously, BridgePort is betting that it does. If the
company is right, it'll be snapped up by some cellular or networking company
that wasn't gutsy enough to make the bet when BridgePort was. <img border=0
width=15 height=14 id="_x0000_i1025" src="cid:image001.gif@01C36BE6.A1C72960"
target="_blank"><br>
-<a href="mailto:rafen@rafeneedleman.com"><font size=1 face=Tahoma><span
style='font-size:8.5pt;font-family:Tahoma'>Rafe Needleman</span></font></a> <br>
<br>
What's Next: <a
href="http://64.4.8.250/cgi-bin/linkrd?_lang=EN&lah=629de3e03cd70586dc47438d20b5fa19&lat=1061872716&hm___action=http%3a%2f%2fwww%2ebusiness2%2ecom%2fwhatsnext"
target="_blank"><font size=1 face=Tahoma><span style='font-size:8.5pt;
font-family:Tahoma'>http://www.business2.com/whatsnext</span></font></a></span></font><span
class=EmailStyle15><font size=2 color=black face=Arial><span style='font-size:
10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'><o:p></o:p></span></font></span></p>
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