A text message initially travels wirelessly from a handset to the closest base-station tower and is then transferred through wired links to the digital pipes of the telephone network, and then, near its destination, converted back into a wireless signal to traverse the final leg, from tower to handset. In the wired portion of its journey, a file of such infinitesimal size is inconsequential. Srinivasan Keshav, a professor of computer science at the University of Waterloo, in Ontario, said: “Messages are small. Even though a trillion seems like a lot to carry, it isn’t.”

Perhaps the costs for the wireless portion at either end are high — spectrum is finite, after all, and carriers pay dearly for the rights to use it. But text messages are not just tiny; they are also free riders, tucked into what’s called a control channel, space reserved for operation of the wireless network.

That’s why a message is so limited in length: it must not exceed the length of the message used for internal communication between tower and handset to set up a call. The channel uses space whether or not a text message is inserted.

Professor Keshav said that once a carrier invests in the centralized storage equipment — storing a terabyte now costs only $100 and is dropping — and the staff to maintain it, its costs are basically covered. “Operating costs are relatively insensitive to volume,” he said. “It doesn’t cost the carrier much more to transmit a hundred million messages than a million.”

The more important thing is to understand that adequate competition is the key.  It is not as easy as the NYT writer tries to show to calculate the real costs of an SMS.   Much better to create enough competition to preclude collusive behavior.  That will prevent collusive price fixing and high prices.  And will preclude the need for expensive cost studies.

The new softswitch – which upgrades Telecom Cook’s core wireless network to more efficient, IP-based technology in order to reduce costs and enable value-added services such as integrated SMS, voicemail, GPRS and pre-paid calling, has been in deployment since September 2007, and the final network cutover was accomplished last week. The UltraWave solution includes an overall expansion of the network’s capacity to 15,000 from 8,000 GSM subscribers.

Read the full story here.

(Background info: This group of islands in the South Pacific Ocean, about one-half of the way from Hawaii to New Zealand was named after Captain Cook, who sighted them in 1770. After being administrated by Britain and New Zealand, in 1965, residents chose self-government in free association with New Zealand. Total Area: 237 sq km, population: 21,750: The World Fact Book, CIA)

Nangi Village, where Mahabir Pun was born, rests high in the Himalayan foothills of western Nepal. Here and in surrounding Myagdi District live the Pun Magar, whose men have soldiered for generations across the globe as Gurkhas. Yet, their worldly careers have done little to change their sleepy homeland, so far from the traffic patterns that knit together the rest of the world. Indeed, Nangi is seven hours’ hard climb from the nearest road. No telephone lines have ever reached it. Despite this, these days the people of Nangi are definitely connected to the world outside. Wireless Internet technology has made this possible. Mahabir Pun has made it happen.

Pun passed his boyhood grazing cattle and sheep in mountain pastures and attending a village school that had no paper or pencils or books. Wanting more for his son, Pun’s father moved the family to Nepal’s lowlands, where, in Chitwan, Pun finished high school and became a teacher, working for twelve years to help his younger siblings through school. Finally, a timely scholarship led him to a bachelor’s degree at the University of Nebraska at Kearney. Then, in 1992, after more than twenty years away, Pun returned home to Nangi, determined to make things easier for other youths than they had been for him.

Nangi’s leaders were busy establishing a village high school. Pun eagerly joined in. Once a month, he made the two-day trip to the nearest major town of Pokhara to check his e-mail and maintain his links to friends abroad. This led, in 1997, to the donation of four used computers from Australia. Powering them with hydro generators in a nearby stream, Pun began teaching computer classes at the high school. More computers followed, but it proved impossible to get a telephone connection to Pokhara and the Internet.

Pun e-mailed the British Broadcasting Corporation, asking for ideas. In 2001, the BBC publicized his dilemma and within a year volunteers from Europe and the United States were helping him rig a wireless connection between Nangi and the neighboring village of Ramche, using TV dish antennas mounted in trees. Some small grants soon led to the construction of improvised mountaintop relay stations and a link to Pokhara. By 2003, Nangi was online.

As word of Pun’s project bounced around the World Wide Web, backpacking volunteers carried more and more donated computers, parts, and equipment into the hills. Meanwhile, Pun expanded the wireless network to embrace twelve villages-distributing a hundred computers to local schools, connecting them to the Internet, teaching teachers how to use them, and then tinkering and troubleshooting until everything worked.

Today, connectivity is changing Myagdi. Using the district’s “tele-teaching” network, good teachers in one school now instruct students in others. Doctorless villagers use Wi-Fi to consult specialists in Pokhara. Village students surf the Net and are learning globe-savvy skills. Pun himself is using the Web to e-market local products such as honey, teas, and jams and to draw paying trekkers to campsites that he has outfitted with solar-powered hot showers. In parallel projects, villagers in Nangi have themselves added a library, a health clinic, and new classrooms for the high school.

Pun, now fifty-two, is both self-effacing and charismatic. “I’m not in charge of anything,” he says. Yet, he seems to be the driving force of much around him. Eventually, he says, the people of Myagdi District will have to carry on for themselves. In the meantime, he hopes to play his unique role indefinitely. “As long as I can walk,” Pun says happily, “I can do this.”

In electing Mahabir Pun to receive the 2007 Ramon Magsaysay Award for Community Leadership, the board of trustees recognizes his innovative application of wireless computer technology in Nepal, bringing progress to remote mountain areas by connecting his village to the global village.

http://www.rmaf.org.ph/Awardees/Citation/CitationPunMah.htm

The project is the largest of a new breed of wireless networks being built across the country. They are taking advantage of the falling cost of providing high-speed Internet access over radio waves as opposed to cable or telephone lines.

The project will cover 1,500 square miles in 38 cities in San Mateo, Santa Clara, Alameda and Santa Cruz Counties, an area of 2.4 million residents. Its builders, going by the name Silicon Valley Metro Connect, said the service would provide free basic wireless access at speeds up to 1 megabit a second — which is roughly comparable to broadband speeds by telephone — in outdoor areas. Special equipment, costing $80 to $120, will be needed to bolster the signal enough to bring it inside homes or offices.

Full story.

“Despite WiFly’s ubiquity — with 4,100 hot spot access points reaching 90 percent of the population — just 40,000 of Taipei’s 2.6 million residents have agreed to pay for the service since January. Q-Ware, the local Internet provider that built and runs the network, once expected to have 250,000 subscribers by the end of the year, but it has lowered that target to 200,000.

That such a vast and reasonably priced wireless network has attracted so few users in an otherwise tech-hungry metropolis should give pause to civic leaders in Chicago, Philadelphia and dozens of other American cities that are building wireless networks of their own.

Like Taipei, these cities hope to use their new networks to help less affluent people get online and to make their cities more business-friendly. Yet as Taipei has found out, just building a citywide network does not guarantee that people will use it. Most people already have plenty of access to the Internet in their offices and at home, while wireless data services let them get online anywhere using phones, laptops and P.D.A.’s.”