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Video, iPhone dominate NXTcomm

Industry CEOs preview impact on the industry

By Denise Pappalardo and Jim Duffy, Network World
June 25, 2007 12:02 AM ET
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CHICAGO -- Wireless and video – and wireless video – were dominant subjects at this year’s NXTcomm telecommunications industry conference here.

In keynotes and press conferences, CEOs from major carriers and vendors touted their wireless and video offerings, dismissed those of rivals and forecasted the impact such traffic will have on networks and future network plans.

AT&T’s new Chairman and CEO Randall Stephenson kicked off the show boasting about the impact of Apple’s iPhone, which AT&T has exclusive rights to offer with its wireless service.

The iPhone, one device that combines an iPod, wireless phone and touchscreen PDA, is probably the most hyped and anticipated wireless device since Motorola’s Razr. The device launches Friday, June 29.

Stephenson said that AT&T has received 1 billion inquiries about the iPhone. Of those inquiries, 40% are coming from non-AT&T wireless customers.

“I like AT&T’s position,” Stephenson said, adding that the iPhone will be a “game changer” for the industry.

Companies need to innovate and develop products that customers “can’t wait to get their hands on,” he said.

He said AT&T has expedited the rebranding of all 1,800 Cingular stores to the AT&T name before the launch and has hired more employees to handle the rush.

He also announced the carrier’s new Video Share service that lets wireless users share real-time video with other AT&T wireless customers. Think videoconferencing on the go, not for a corporate meeting but at your kid's dance recital or graduation ceremony.

The service is available in Atlanta, Dallas and San Antonio and will “spread to 160 markets across the U.S.,” Stephenson said. That expansion is expected to be completed by the end of August.

AT&T rival Verizon downplayed the game-changing potential of the iPhone. Instead of competitors scrambling to respond to iPhone, Verizon CEO Ivan Seidenberg says the “burden” is on AT&T and Apple to disrupt the industry.

“We need to let iPhone hit the market and see what the reaction is,” Seidenberg said. “It doesn’t change our game plan. The burden is on [AT&T and Apple] to see if the market will change.”

Seidenberg said Verizon will launch an additional 20 devices between now and year-end. One of those is expected to be the LG Prada, reportedly Verizon’s answer to the iPhone.

Seidenberg said Verizon will benefit from AT&T’s iPhone launch. He said all the hype building around the new device will add excitement and stimulation to the wireless industry.

“We think we’re the premier wireless carrier,” Seidenberg said. “We’ll be a beneficiary in a different way.

“You should buy a ticket to the game and see what happens,” he said.

And what a game it should be, according to Cisco CEO John Chambers, whose keynote followed Stephenson’s. In addition to the iPhone, the game will include Web 2.0, collaboration and video applications pumping up the volume of traffic on IP networks fivefold.

Chambers said these applications have driven up traffic loads on Cisco’s internal networks by 300% to 500% per year. They will also allow 20 broadband-connected homes in the United States in 2010 to generate more traffic than the entire Internet in 1995, he said.

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