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MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

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Page 1: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

MOBILE DATA SERVICES AT THE

BORDER OF 2G AND 3G

NETWORKS

Research Seminar on Telecommunication Business II16 March 2004

István DUDÁS

Page 2: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 2

Table of Contents

High speed data technologies: HSCSD, GPRS, EDGE

Investments and revenues End-user services Market positioning and pricing Case study: EDGE in Hungary The future role of EDGE

Page 3: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 3

Evolution of Mobile Networks

Page 4: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 4

The Operation Principal of GSM

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Page 5: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 5

High Speed Circuit Switched Data

The data rate of each timeslot is increased to 14.4 kbps

Four timeslots can be assigned to one user A maximum data rate of 57.7 kbps Advantage:

No major modification is needed in GSM network Disadvantage:

It is still circuit switched, not suit really data traffic

Page 6: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 6

The Operation Principal of HSCSD

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Page 7: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 7

General Packet Radio System

Major modifications are needed in GSM systems

New network elements (SGSN, GGSN) A maximum data rate of 115 kbps is available,

avarage data rate is around 40 kbps Advantage:

User is charge for the bits transfered Disadvantage:

New mobile terminals are needed

Page 8: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 8

GPRS architecture

Page 9: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 9

Enchanced Data for Global Evolution

8-PSK – a new channel coding method – is introduced instead of GMSK

A maximum speed of 348 kbps data rate can be achieved

Advantage: Easy to deploy in the network

Disadvantage: The rate of return might be low

Page 10: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 10

Investments and revenues of EDGE I.

A GPRS capable network is required The same spectrum, cells and bearers can

be applied as in case of GSM/GPRS In most cases only software upgrade is

needed BTS and BSC can be upgraded remote To cut on investment costs the EDGE

service cab be introduced in urban areas A medium penetration of EDGE capable

cell phones is favourable

Page 11: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 11

Investments and revenues of EDGE II.

A higher level of utilisation throughout the network can be reached

Profitability is on the rise New services, new subscribers

Page 12: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 12

End-user Services enabled by EDGE

All services of GPRS is available just faster: MMS, WAP Game, ring tone, image downloading Audio streaming

New services and applications Video streaming

Faster Internet access

Page 13: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 13

Market Positioning and Pricing Issues I.

The strategies has to be significantly divers for oparators not having and having UMTS licences

Charging strategy depending on local market

Operators without 3G licence: Offer GPRS service EDGE as a premium service Reach as high coverage as possible

Page 14: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 14

Market Positioning and Pricing Issues II.

Operators with 3G licence: EDGE to be positioned between GPRS and

UMTS Same charging strategy as in case of GPRS

(„pay for bits transfered”) Higher fees Same fees

Demand for high data rates can be mapped (easier positioning of UMTS)

Page 15: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 15

EDGE in Hungary

Mobile penetration in Hungary: 78.9% No 3G licence granted yet EDGE service launched in November

2003 in parts of the capital (inner city) No extra fees for EDGE subscribers Services:

Video streaming service (News channel) WAP 2.0

Page 16: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Mobile Data Service Providing 16

The Future of EDGE

EDGE is the most cutting-edge technology for GSM/GPRS networks

Operator without 3G licence are still able to offer UMTS like services

Operators with licence have to decide whether it worth to deploy EDGE to their networks.

EDGE and UMTS are going to be on market side by side as supplementary services

Page 17: MOBILE DATA SERVICES AT THE BORDER OF 2G AND 3G NETWORKS Research Seminar on Telecommunication Business II 16 March 2004 István DUDÁS

Thank you for your attention!