Blackberry 1998 Annual Report Download - page 8

Wireless
messaging & RIM
WIRELESS MESSAGING AND RIM
Two-way messaging is replacing traditional
paging for a number of reasons, at the heart of which
are the technical advantages of two-way networks,
significant advances in access device technology, and
customer demand for two-way capability.
The ability to “narrowcast”, or register a messaging
device for specifically addressed transmissions, on a
two-way network tremendously increases network
capacity relative to one-way “broadcast” networks
which transmit messages over every base station in
the network to reach a single customer. The associated
cost advantages are significant, allowing two-way
messaging to be offered at comparable or lower prices
than traditional one-way paging.
At the same time, two-way networks such as the
BellSouth Wireless Data network in the US are
improving their coverage to match the service
standard of one-way networks. These networks
also offer “store and forward” ability so that messages
are never lost, which is a major competitive advantage
over one-way networks.
The size, cost, and battery life of new two-way
messaging products are equivalent to one-way pagers,
making it possible for consumers to choose two-way
messaging without sacrificing any of the benefits of
traditional one-way pagers.
The superior functionality of two-way messaging
is obvious. Consumers want the ability to respond
to messages, to initiate queries for information,
and remotely access e-mail and office intranets.
The demand for these functions is high for vertical
commercial applications such as field sales and service
and trucking and courier services; as well as for
corporate applications such as wireless e-mail, stock
quotes and portfolio management, and maintaining
constant communications with others. Many consumer
applications such as the ability to respond to a page
without using a wired telephone or cellular phone, and
the ability to maintain continual two-way contact with
family or friends are also fueling demand.
Largely due to its Internet-compatibility,
packet-switched technology is best
positioned to provide two-way messaging
solutions.
There are many advantages of two-way packet
switched technology – where data is broken down into
“packets” and then reassembled at its destination –
which render it ideally suited to two-way messaging
applications. Relative to circuit-switched cellular and
broadband PCS technologies which were primarily
designed for voice applications, packet-switched
technology is inexpensive and more efficient for
messaging. Cellular and PCS phones dependent on
circuit-switched technologies must transmit and
receive constantly during a call session, which occupies
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The wireless messaging industry is rapidly evolving, and RIM is positioned to be a primary beneficiary of this evolution.
Two-way paging – a core RIM technology – is poised to grow especially fast. Experts are forecasting that two-way
paging and guaranteed delivery paging subscribers will easily surpass one-way subscribers and dominate the market
within a decade.
0
20
40
60
80
100
1997 1998 1999 2000 2001 2002 2003
One-way Two-way Total
Source: The Yankee Group
Subscribers
GROWTH OF TWO-WAY PAGING
US Wide Area Paging Forecast
(Subscribers in Millions)