Mobile Internet Service Providers

Mobile Internet service providers (MISPs) are critical components of the emerging mobile application infrastructure since they provide users with wireless Internet access. Examples of MISPs include network operators, such as AT&T, Sprint, and Verizon, and pure-play participants such as Palm.Net, GoAmerica, and OmniSky. These companies offer mobile users continuous wireless Internet or corporate intranet access regardless of location.

The MISPs' focus is on making the customer's wireless experience useful and reliable. They do so by providing a simple-to-use service that offers a comprehensive mobile Internet experience. Typical MISP services include sending and receiving corporate and personal e-mail, instant messaging, navigating the Internet, accessing Internet content optimized for mobile devices, and securely conducting m-commerce transactions.

While the service may be simple for customers to use, it is based on an extremely intricate technology. Consequently, several key issues have affected the evolution of this market in the U.S., including:

• Complex system configurations and poor customer service
• The high and often unpredictable costs associated with using wireless data networks, including roaming charges that are typically assessed when users are outside of their home area
• Limited-coverage areas and disparate wireless networks that do not always work well together, leading to disconnections and other service problems
• Device-dependent wireless service providers, e.g., different providers are needed for accessing the Web, depending on if a cell phone or a Palm is being used

Companies such as GoAmerica, OmniSky, and others are in business to solve many of these problems. For example, GoAmerica provides its subscribers with wireless ISP services across a number of wireless networks, including AT&T and BellSouth. It also provides wireless ISP service to a variety of mobile device platforms, including Palm OS-based computing devices, Research in Motion's interactive pagers, laptop computers, Windows CE-based computers, and WAP-enabled smart phones. The wireless ISP market is becoming increasingly competitive with the widespread adoption of wireless data industry standards, making it easier for new market entrants and existing competitors to introduce services that compete against the market's incumbents.