Spending on the two types of semiconductors was essentially a tie in 2010, when wireless chips totaled .2 billion and spending on PC chips was .8 billion, according to IHS iSuppli’s calculations. But the growth in 2011 was all wireless, as you can see in the chart below.

The rise of mobile devices, which sold in record numbers last year, is responsible. “Wireless will continue to generate the most growth during the next two years,” said IHS iSuppli semiconductor analyst Wenlie Ye. “A substantial portion of the segment’s increase will be due to rising tablet sales, although mobile handsets like smartphones will continue to account for the lion’s share of semiconductor segment in the wireless area.”

And who’s spending the most on semiconductors for tablets? You won’t be too surprised to find out it’s Apple, the world’s biggest seller of touchscreen tablets. Last year Apple spent .6 billion on chips for tablets, more than any other OEM. The next closest — though “close” is a relative term here — was Apple frenemy-in-chief, Samsung, which spent 3.2 million on tablet chips. HTC was in third with 9.2 million.

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The problem isn’t congestion, it’s a stagnation.

A study Friday noted that the top one percent of wireless users consume half of all the data. Meanwhile, Public Knowledge on Friday launched a web site designed to help consumers understand their data caps. On Thursday Leap Wireless’ CEO said the company would begin offering data sessions in addition to its regular tiered data plans. Under that scenario a user might buy a data plan just like he would buy pre-paid minutes on an as-needed basis after reaching his cap. All these bits of news are linked by one key problem: wireless data is in high demand, but it’s also expensive to deliver.

And the tension between what consumers want from their wireless networks and what operators want to give them is leading to stories that harp on congestion, new pricing models and consumer advocacy around high-priced plans. But it’s time to stop trying to address that tension solely with new types of rate plans, and customer education. If we want wireless data to become ubiquitous and deliver on the promise of connectivity, the industry needs to address its costs and educate consumers on those costs in a transparent way.

Part of the problem is just a matter of physics — airwaves can only carry so many bits per hertz — but other aspects of the high cost are related to policy and the reluctance of the industry to embrace, or even talk about, technologies that will help them deliver wireless at a lower price per bit. Right now, sending a bit over the cellular airwaves costs a lot more money than it does to send that same bit over fiber or even DSL. How much more depends on if you are in a populated city or out in rural America (it also depends on if you are in America) as well as the type of network the bit is sent over (i.e., LTE, CDMA or HSPA). But broadly speaking it’s at least 200x more expensive to use cell networks according to analyst Chetan Sharma. He estimates that number will drop over time to 100x, but clearly that’s still a huge disparity.

Not all bits are equal (or as expensive). So let’s rethink the network.

Fortunately, not all data has to travel over the gilded cellular pipes. Smart consumers already use Wi-Fi networks for streaming video and movies, but ideally this will become more automated. This means operators must include Wi-Fi in their networks, and actively shunt certain types of traffic to those networks when available. In short, we need application-aware wireless networks that send traffic to the cheapest, but most appropriate network the application can use and the consumer will accept.

This means when I stream YouTube videos, my carrier routes me over to Wi-Fi if it’s available but my email and voice calls stay on 3G if the Wi-Fi is weak. As a consumer I would advocate Wi-Fi as the default network with carriers switching me over to a cellular plan only when absolutely necessary, much like upstart Republic Wireless tries to do. Buying cell phone plans becomes a little more complicated, perhaps involving a short questionnaire that a consumer fills out ranking what types of traffic he needs to get instantaneously versus the traffic he is willing to compromise on.

This new type of plan also means that consumers may have to accept lower quality service for streaming video, might end up paying for access to a carrier Wi-Fi network and will need to accept their operators monitoring the applications they use. There’s a role for developers here in building tools that help consumers see exactly what their operators are doing, and the FCC should stay active in enforcing the spirit of the network neutrality rules. I have a hard time believing that carriers could behave well enough for me to trust them with something like this — just look at their historical stances on Wi-Fi, or the recent questions around Google’s Wallet service on Verizon’s network, but something has to give and I don’t think it will be the operators.

We want what we want. Until we have to pay for it.

CTIA says ladies like their mobile data.

Despite the cost of wireless plans, we want and will use wireless data. On Friday, the CTIA put out a study noting how women use the wireless network for an increasing amount of stuff. And articles offering a word of caution about viewing the Superbowl on your mobile phone get that while it may make you bust through your data cap, people will watch bits of a big game on the go. That very idea was unthinkable a few years ago, but mobile has changed our surfing, shopping and even our TV watching habits.

Carriers have moved forward in delivering faster networks that can deliver between 5 and 12 Mbps down — enough for video, voice and even the most demanding web services — but their current cost models don’t match up with the usage expected and advertised on the networks they’re building. Consumers look at carriers’ pricing, their marketing (which shows customers streaming video on their phones) and their comments in the press about high costs for mobile data and congestion, and recognize that carriers are not telling the whole truth. If network resources are such a precious commodity, then why not price data so it costs more at peak times? Or why even encourage video on the LTE network?

But when will that disconnect between the ease of using a service and the high cost of that service start to change or curtail consumer behavior? In short, when will a user suddenly think, “Maybe I shouldn’t use my phone for this, right now?” In a mobile-first world, will wireless become a second-class access technology, or will carriers adapt their networks and their cost structures in time?

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Republic Wireless’ love affair with Wi-Fi.

Republic Wireless has made Wi-Fi the linchpin of its mobile service with a cellular network provided by Sprint as its backup. Customers will join the service by paying 9 to get a phone and then a month after that with no contracts. There’s a 30-day window for someone to return the phone and get their money back. So how does this work?

By default all calls, data and texts are sent via Wi-Fi networks when possible, and switch only to cellular if no Wi-Fi access is available. That’s one reason for the low price on the service, as most people can access an existing Wi-Fi network in their home or office for free. Brian Dally, the general manager of Republic says he expects at least 60 percent of the traffic to go over Wi-Fi networks. But he assures me that when he says unlimited data that it does extend to the 3G portion of the service as well.

Om said this sounds a lot like UMA, the technology that T-Mobile used for its Home Zone products and that many people loved. But Dally said Republic is not using the Kineto technology that UMA is based on, and that the user experience won’t be quite seamless when it comes to switching from one network to the other. At the moment users will hear a tone in the middle of a call signaling the change in networks, but the call will continue. That’s better than it cutting off entirely, but Dally says he’s still looking for feedback on the user experience and invited me to check back in a few weeks on the forums to see what users think.

Cheap matters but hardware does too.

To ensure the primacy of Wi-Fi, Republic had to build software that puts Wi-Fi first. It chose to do this using the Android OS not only because the platform is hot but it also allows developers to access the hardware. The first phone for the system will be the LG Optimus. If that’s not optimal, Dally promises that more phones are coming but he was mum about the timeline and particular devices.

The  LG Optimus Android smartphone runs the Gingerbread version of Android and will come preloaded with the Republic software. A first-time user will be asked to put in his Wi-Fi network and then for information on other Wi-Fi access points. The phone will remember that information. Users will also be able to download apps to help manage authentication and payment for Wi-fi networks if they want, but Republic won’t preload any of that onto the handset.

The use of Sprint as the network partner means the phone uses Sprint’s CDMA network, so it won’t roam internationally. And, if Sprint coverage doesn’t work well in your area, think carefully about taking it up. We expect Kevin Tofel to take the handset through its paces later this week.

Is it too good to be true?

The idea of disrupting the cellular world is not a new one, and while VoIP calling over Wi-Fi has come a long way, the quality of experience can be sub par. Dally agrees that delivering better quality of service on Wi-Fi is something he hopes will happen, but he’s also confident that today’s Wi-Fi networks and the ubiquity of access is enough to make this service viable.

And beyond providing cheap mobile service, Dally espouses some of the same ethos that his parent company Bandwidth.com shares– The idea is to take telecommunications from the realm of a few large carriers and make it more egalitarian and IP-based. “The phone prefers WiFi because its ubiquitous and cheap and it’s not controlled by a few large companies,” Dally said. Bandwidth.com owns an IP network (which Republic will use to connect calls) that currently provides VoIP services to Skype, Google Voice and other IP voice providers.

Between Bandwidth.com’s network, Sprint and your home Wi-Fi points, Dally believes he has a service. And given the emphasis on public in all of the company’s branding, I’m wondering if there’s a Fon element to be found here, where members can sign up to share their hot spots. And while today Republic isn’t signing partnerships with existing hot spot and access providers such as the AT&T-owned Wayport, Boingo or even iPass, Dally doesn’t rule them out in the future. Such partnerships which would give it even more flexibility to default to Wi-Fi coverage.

So it’s possible that Republic could flip the mobile phone model so cellular connections and pricing goes the way of satellite phone pricing — expensive and suitable only for a select few who roam the uninhabited wilds. I’ll be eager to see how this experiment plays out. The beta starts Tuesday with Republic offering to ship a cluster of handsets every Friday based on a first come first served basis.

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Continue reading Republic Wireless to offer unlimited calls, SMS and data for per month

Republic Wireless to offer unlimited calls, SMS and data for per month originally appeared on Engadget on Thu, 03 Nov 2011 04:56:00 EDT. Please see our terms for use of feeds.

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While, Pi declined to say how far off something like this is, Ted Rappaport, director of the Wireless Networking and Communications Group with the University of Texas and the host of the conference said he imagined this sort of technology being about 5 years out. Indeed, Pi showed ways that a test network using millimeter wave broadband could be built today. Of course, to build a fully functioning mobile broadband network, many elements have to come together–some of which are out of Samsung’s control.

For example, the airwaves have to be available in the millimeter wave band, which sits between 3 GHz and 300 GHz. Pi estimates there are 250 gigahertz of spectrum available in these bands, and some of them are already licensed for broadband services. For example, the FCC has regulated spectrum in the LMDS band for fixed wireless broadband, but a change to allow mobile wireless broadband might be easy to implement.

Once the spectrum is in place, radios can follow. There have been plenty of advancements in radio technology in some of the millimeter wave bands, that means radios can be produced cheaply using conventional semiconductor manufacturing methods and materials. But there are engineering challenges associated with building a wireless network in the higher frequencies–problems posed by water, trees and oxygen.

Because of the peculiarities of physics and working at higher frequencies building a network using higher frequencies will require news ways of engineering networks. They may alos require greater power consumption, both on the device and at the base station. At higher frequencies the spectrum tends to falter when it hits water, sometimes oxygen molecules and trees, not to mention buildings and walls. Pi says Samsung is looking at using beam-forming to deliver bits over that spectrum, and large portions of his presentation dealt with how those might be built and arrayed. Here’s an earlier version of his presentation for the truly nerdy.

However, the rewards of overcoming these challenges in a cost effective way are apparent. As the chart above illustrates, the opportunity here is to deliver multiple gigabits per second on wireless networks (see chart). Mobile broadband demand won’t abate anytime soon, so figuring out ways to deliver faster speeds on relatively unoccupied spectrum is already an imperative for the industry. Pi mentioned the gap that carriers face when it comes to delivering data, and how a lack of profitability could threaten the industry.

Pi however, took a far more practical and innovation-friendly view on the looming revenue gap for carriers, saying, “Don’t expect you can make a thousand times more money just by carrying a thousand times more traffic.” Indeed, the cellular industry doesn’t follow the same cost curve that Moore’s Law has allowed for computing, but given user demand, it may have to get closer. Millimeter broadband may help.

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Color us a yellow shade of mendacious, but if we designed something that works 99.999999999997 percent of the time, we’d probably round off and give ourselves a big ol’ 100 percent A+. We’d probably throw in a smiley faced sticker, too. Computer scientist Holger Hermanns, however, is a much more honest man, which is why he’s willing to admit that his new wireless bike brake system is susceptible to outright failure on about three out of every trillion occasions. Hermanns’ concept bike, pictured above, may look pretty standard at first glance, but take a closer look at the right handlebar. There, you’ll find a rubber grip with a pressure sensor nestled inside. Whenever a rider squeezes this grip, that blue plastic box sitting next to it will send out a signal to a receiver, attached to the bike’s fork. From there, the message will be sent on to an actuator that converts the signal into mechanical energy, and activates the brake. Best of all, this entire process happens will take just 250 milliseconds of your life. No wires, no brakes, no mind control. Hermanns and his colleagues at Saarland University are now working on improving their system’s traction and are still looking for engineers to turn their concept into a commercial reality, but you can wheel past the break for more information, in the full PR.

Continue reading Wireless bike brake system has the highest GPA ever

Wireless bike brake system has the highest GPA ever originally appeared on Engadget on Mon, 17 Oct 2011 06:30:00 EDT. Please see our terms for use of feeds.

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Well, look at Ma Bell now, wishing it’d all just go away. Tied up in lawsuits, the company has filed motions to dismiss the two complaints brought by Sprint and C Spire Wireless (formerly Cellular South), which seek to block AT&T’s acquisition of T-Mobile. In the filings, it’s argued that the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger “if AT&T would agree not to engage in facilities-based competition in Mississippi.” Ma Bell goes on to state, “This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition.” Given the latest maneuver (which smacks heavily of PR spin), there’s no doubt that lawyers for Sprint and C Spire will have a bit of homework for the weekend.

AT&T asks court to dismiss lawsuits filed by Sprint and C Spire Wireless originally appeared on Engadget on Fri, 30 Sep 2011 20:22:00 EDT. Please see our terms for use of feeds.

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There’s a 13,000-square-mile section of West Virginia known as the Quiet Zone where there’s no WiFi, no cell service, and strict regulations placed on any device that could pollute the airwaves. Those unique conditions are enforced (and aided by the surrounding mountains) to protect the radio telescopes in the area from interference, and it’s hardly anything new — as The Huffington Post notes, Wired did an extensive profile of the zone back in 2004 (the area itself was established in 1958). But as the BBC recently reported, the Quiet Zone is also now serving as something of a refuge for people who believe that wireless technology makes them sick — a condition sometimes called Electromagnetic Hypersensitivity (or EHS). Those claims are, of course, in dispute by most medical professionals, but that apparently hasn’t stopped folks from calling the local real estate agent “every other week or so” to inquire about a place in the zone.

West Virginia’s ‘Quiet Zone’ becomes refuge for those on the run from wireless technology originally appeared on Engadget on Thu, 15 Sep 2011 15:12:00 EDT. Please see our terms for use of feeds.

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