the edge option for gsm operators

8/6/2019 The EDGE Option for GSM Operators

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Paul Lambert Groupe Mirande Consulting Ltd [email protected]

The EDGE Option for GSM Operators

Sponsored by the EDGE Operators Forum

The EDGE Option for GSM Operators EDGE Operators Forum1


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Table of Contents

Executive SummaryIntroductionCurrent Position of EDGEFinancial Benefits of EDGE

Radio Access Network (RAN)Core Network

Antenna SitesSpectrum UtilizationApplicationsEnd-Use Devices

The Cost of Upgrading to EDGEApplication development and supportStatus of EDGE market

OperatorsInfrastructure vendorsHandset vendors



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Executive Summary

Within todays critical business environment the right choice of technology platform could mean thedifference between success and failure.

Whether driving business value from existing GSM infrastructure and spectrum, or complementing aWCDMA network deployment, EDGE should be the technology of choice. Obtaining a three-foldincrease in data rates and significant spectrum efficiencies for data traffic, EDGE within a GPRSenabled environment delivers distinct advantages over GSM and GPRS, not least for the operator.

Using EDGE to introduce new services over an existing GSM/GPRS network substantially improvesoperators' revenue streams, at the same time reducing operators investments in networks as capacityprovided by EDGE is clearly more cost-efficient.

Moreover, the co-ordination of deployment and optimisation of GSM for voice services (e.g. AMR) alongwith EDGE for packetized data services provides operators with maximum flexibility and utilization oftheir available spectrum on a common 200 KHz radio carrier system.

This service synergy is also true with regards EDGE being used as a WCDMA complement. It has beensuggested that deploying a nationwide WCDMA/EDGE network will both deliver a 50% reduction inCAPEX over deploying a nationwide WCDMA network, and provide a faster Return On Investment onCAPEX.* The co-ordinated deployment of GSM/EDGE and WCDMA will also be critical to achievingbroad market introduction of initial 3G services globally, with EDGE serving as a recognised ITUstandard option for in-band 3G deployment.

*Northstream Positioning EDGE in a 3G world published by Baskerville Communications

Introduction

Over the past 18 to 24 months the role of EDGE has been defined, enhanced and developed. No longerseen as apossible technology, today EDGE is a reality, impossible to ignore.

EDGE is the technology, which will both complement future WCDMA deployment strategies andenhance existing GSM/GPRS resources, and allow an operator to deliver 3G services today.

Within this White Paper the current status of EDGE will be discussed and an overview given as to whatrole EDGE will play in today, and tomorrows wireless networks.

The current position of EDGE

EDGE is both a migratory technology - which is available to enhance existing GSM and GPRSinvestments to deliver greater network capacity and higher end-user data rates and a technologywhich will complement future WCDMA networks. Indeed networks which support both WCDMA andEDGE will offer greater value to the network operator - and to the end-user.

The substantial investments already made in existing GSM networks has lead the industry to questionhow best to utilize the infrastructure and skills already in place and how best to prepare for futuretechnology deployments.



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The ability of EDGE to utilize existing resources - infrastructure and spectrum - is seen as a majoradvantage for the technology, and a key driver. For example, by deploying EDGE to enhance a GPRSnetwork, efficiencies can be demonstrated with the support of greater data capacity with the existingspectrum - 800, 900, 1800 or 1900 Mhz. These efficiencies will also have an effect on voice capacity, byfreeing-up channels which can be then used for use for voice traffic.

However, substantial voice capacity gains can be made by utilizing Adaptive Multi-Rate (AMR) voicecodecs. Although not directly linked to the deployment of EDGE, the use of AMR within existing GSMnetwork spectrum will deliver substantial increases in voice capacity, and with the future rollout of EDGEAMR (EAMR) codecs, further increases will be experienced.

EDGE is also an essential complementary stepping-stone en-route to WCDMA and integrated cellularnetworks.

Using EDGE to provide high-speed coverage outside the first stage WCDMA enabled areas, such asmain metropolitan areas, will increase the adoption of 3G services and applications in the market. Goingforward using EDGE to provide enhanced services in support of WCDMA coverage, perhaps in areas of

lower traffic density, will ensure EDGE as a musttechnology and gives a network operator who deploysEDGE a distinct advantage within the marketplace.

Being able to deliver standardized applications and services, from whatever technology platform, withcontrolled QoS is a shared industry vision. A unified, enhanced RAN, supporting the differenttechnologies is the key to this goal.

EDGE Phase II, often associated with GERAN (GSM/EDGE Radio Access Network), will offer greateralignment with UTRAN (UMTS Terrestrial Radio Access Network). As defined in 3GPP Rel. 4 and 5,GERAN will be able to deliver comparable QoS features as UTRAN and will support Voice Over IP(VoIP) - laying the foundation for one enhanced RAN.

Figure 1. Source: EDGE Operators Forum

The Financial Benefits of EDGE

As highlighted previously the need to reduce business risk and make the best use of existing resourcesis of paramount importance within todays business environment.

GSM based networks have become the standard within the cellular landscape. As EDGE is a GSMbased technology - and provides an enhancement for GPRS at little additional cost - it is considered thebest way in which to capitalize on existing resources.

Radio Access Network (RAN) In most cases GPRS enabled base stations and BSCs can

be simply upgraded to EDGE by way of relatively low-cost software and hardware upgrades,which will prolong the life cycle of the deployed RAN elements.



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Core Network As EDGE is a GPRS enhancement there is very little modification to becompleted within a GPRS enabled core network, thus enhancing the sunkcore networkinvestment.

Antenna Sites There is no requirement for additional antenna sites when deploying EDGE.Assuming high-quality linear amplifiers with high RF output power are used within the BTS, thecoverage pattern will be the same as the existing GPRS deployment, so protecting existing siteinvestment.

Spectrum Utilization EDGE triples the GPRS data capacity whilst using the existing GSMspectrum and offers up to three times the GPRS data rate to the end user. An independentreport has suggested EDGE is spectrally the most efficient radio technology for dataapplications requiring up to 100Kb/s throughput (compared to CDMA and WCDMA), and onlyWCDMA is spectrally better for higher throughputs. *

Applications GPRS enabled applications and services will generally not require any

additional investment to become EDGE compatible. This is also valid for known WCDMAapplications.

End-Use Devices The business benefits of deploying GSM based end-user devices, asopposed to other technologies, such as CDMA 1x, is clear when economies of scale are takeninto consideration. Also the cost of including EDGE within a device has a minimal impact onprice, when compared to a GPRS compatible device with similar features and functions.

Although the financial benefits of EDGE can be apportioned to individual network elements as outlinedabove, one of the main business drivers is that EDGE forms an essential part of the overall GSMevolution towards a seamless multi-radio GSM/GPRS/EDGE/WCDMA network. As mentionedpreviously GSM is the main standard for cellular communications worldwide and the business benefits

of deploying an industry standard technology can be seen in nearly every aspect of a networkdeployment, from end-user devices, to applications to hardware.

Figure 2. Source: EMC World Cellular Database and Ericsson

* GSM, GPRS and EDGE Performance: Evolution Towards 3G/UMTS Published by John Wiley



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The cost of upgrading to EDGE

Operator driven studies have indicated that for a GSM operator to upgrade a GPRS capable network forEDGE working is approximately 7 - 15% of total initial GSM investment. It is worth noting that this basiccalculation cannot, and should not, be used as a de-facto figure, as it is dependant on the starting pointof the operator for instance, whether they have an EDGE capable network.

For a GSM operator there will always be a basic requirement to enhance their networkinfrastructure to improve service over time. This may include the introduction of AMR, apacket layer via GPRS and other enhancements which will make best use of their existinginfrastructure and investment. It is also worth considering that if new base stations areinstalled they will be delivered EDGE ready, especially if they are from a mainstreammanufacturer. This program of improvements will, by definition, move the operator towardsa network infrastructure which can then be upgraded to EDGE at very little incrementalcost.

Operators who will be deploying EDGE alongside WCDMA to provide high-speed services

from day-one of operation can expect to spend 50% less CAPEX by adopting thiscombined strategy - rather than building one nationwide WCDMA network. Using EDGEas a WCDMA complement, rapid introduction of 3G services can be achieved, coveringmore of the population. In short, using EDGE along-side WCDMA, time-to-market andtime-to-revenue will be decreased.

CAPEX savings can also be achieved for a GPRS operator upgrading to EDGE. Bydeploying EDGE, additional data capacity will be created with less Transceiver Units(TRU) within the RAN, eventually leading to less cell sites.

Application development and support

Many of the known WCDMA applications, as understood today, will also be suitable to be used in anEDGE deployment. Although EDGE will be slower in upper-bandwidth speed to the end-user, industryfigures suggest that 90% of users will require 52Kb/sec and only 10% will require more than 164Kb/sec.The term bandwidth snob has been used to describe those who suggest that mobile access should beproportionally faster than Internet access is at home - the vast majority of consumers connect to theInternet through a wired modem at speeds below 64Kb/sec.

Although end-user bandwidth is a critical driver, promoting standards based application developmentshould also be considered important. As EDGE is a GSM based technology, application developmentand support is open, recognized, standardized and non-proprietary in nature.

Figure 3 indicates the type of applications which will be enabled by EDGE Phase I. Further applicationsrequiring even higher data rates and capacity will be enabled by EDGE Phase II and beyond, as EDGEevolves in step with WCDMA on a common core network.



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8 16 32 64 128 256

2001

2002

2003

2004

Launchyear

- Chat

- Telemetry

monitoring

- Personal security

- EMS

- Location based info

- Basic ringtones

- SMS

- Voice

- Auction

- Instant messaging

- Fleet managem.

- Advanced ringtones

- E-wallet

- Directory services

- Email without att.

Intranetaccess

Sales force

automationERP

integrationPersonalCalender

ShoppingMMS

Internet

browsingUnified

MessagingScreen

SaversBookings

Banking

- Distributed games

- File transfer/ download

- Video clip download

- Music/Audio download

- Picture download

- Email with attachment

- Video conferencing

- Video streaming- Audio streaming

Bandwidthrequirements (kbps)

Selection of European Operators Service Roadmaps

Enabled

byED

GE


Figure 4. Source EDGE Operators Forum



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Status of EDGE market

Operators

During 2002 the industry has seen an increase in EDGE activity. Although this has not manifested itselfin numerous network operators publicly stating their EDGE intentions, it should been seen as a verypositive indication.

In mid-2002 there were a total of thirteen network operators worldwide who have publicly announcedthey intend to deploy EDGE networks. The first network operators to do so were based in NorthAmerica. With a TDMA legacy there was a need for these operators to migrate towards a more widelyadopted technology platform, namely GSM/WCDMA. However as the necessary spectrum for fullWCDMA services is not readily available within the region, a high-speed complementary technologywhich was available was decided upon, that being EDGE.

Currently six large network operators in North America have stated their intentions to deploy EDGE,

they are;

- AT&T Wireless (USA)- Cingular Wireless (USA)- Dobson Communications (USA)- Microcell (Canada)- Rogers Wireless (Canada)- Voicestream (USA)

Within other parts of the world the following have announced EDGE plans;

- BTC Mobility (Bermuda)

- Batelco (Bahrain)- Singtel Optus (Australia)- TAC (Thailand)- Telcel (Mexico)- Telecom Personal (Argentina)

It should be understood that this list of operators does not demonstrate the full commitment to EDGE,especially within Europe and Asia. Many network operators within these regions are currently involvedin WCDMA deployments, under very difficult market conditions, and this is by necessity leading them tofocus on the delivery of WCDMA licence obligations. However many of the key network operators inEurope and Asia are considering EDGE as a WCDMA complement and are purchasing EDGE readyinfrastructure, and the EDGE Operators' Forum (EOF) has seen a marked increase in this activity on a

global basis. The EOF endorsed by the GSA, GSMA and 3G Americas global industry groups - is acooperative global industry partnership amongst major operators and vendors that have commerciallycommitted to deploy EDGE as part of the GSM evolved solution for 3G service delivery.

It is expected during 2003 many more key network operators will be in a position to publicly announcetheir EDGE plans.



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Infrastructure Vendors

All of the major GSM infrastructure vendors have stated their commitment to the EDGE technologyroadmap by delivering EDGE capable infrastructure. They are;

- Ericsson- Nokia- Nortel Networks- Siemens

It is worth noting that much of the GSM infrastructure already deployed is considered EDGE capable.However for equipment which does require additional hardware and/or software to become EDGEcompatible, upgrading such equipment, such as BTSs, can usually be done quickly and cheaply.

Terminal Vendors

Today there are a variety of terminal vendors who are committed to delivering EDGE compatible

devices to the market, including;

- Motorola- Nokia- Novatel- Samsung- Siemens- Sierra Wireless- Sony Ericsson

All EDGE devices naturally support GSM and GPRS dynamically, and work on multiple GSM spectrumbands, e.g. 800/1900Mhz, 900/1800Mhz or 900/1800/1900Mhz. It is expected that most, if not all,

GPRS terminals will soon support EDGE, and within a few years WCDMA terminals will not onlyincorporate GSM/GPRS but also EDGE

The first EDGE capable devices arrive to markets at the end of year 2002. Many new models will beintroduced in 2003, and during 2004 all new GSM/GPRS devices are predicted to support EDGE.

GSM/GPRS/EGPRS (EDGE)AMR

2002 2003

100%

2004

EDGE in new GSM/GPRS terminals

GSM/GPRS/EGPRS (EDGE)AMR

2002 2003

100%

2004

EDGE in new GSM/GPRS terminals




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Conclusions

Today the position of EDGE as a technology evolution of GSM is clear. Initially promoted as analternative to WCDMA and generally a niche technology, EDGE is now regarded as a key enabler forGSM/EDGE and WCDMA operators alike.

Being able to drive business value from existing GSM infrastructure and spectrum is one of the mainadvantages, and along-with the ability of EDGE to reduce CAPEX, timeto-market and time-to-revenue,with regards the delivery of nationwide high-speed data services, EDGE is a musttechnology.

Additional EDGE Material

The Future of EDGE New opportunities and business models ARC Group www.arcgroup.comGiving operators a new EDGE Ericsson - www.ericsson.com/products/white_papers.shtmlGSM operators can gain an edge with EDGE GSA www.gsacom.com

GSA Operators Zone for GSM/3G operators (registration required) -www.gsacom.com/opzoneNokia - www.nokia.com/networks/systems_and_solutions/Positioning EDGE in a 3G world Northstream www.northstream.seGSM, GPRS and EDGE Performance: Evolution Towards 3G/UMTS www.wiley.com

Acronyms

3GPP - Third-Generation Partnership ProjectAMR - Adaptive Multi-RateBSC Base Station Controller

BTS Base Station TransceiverCAPEX - Capital expenditureEDGE - Enhanced Data rates for GSM EvolutionEAMR EDGE Adaptive Multi-RateGERAN - GSM/EDGE Radio Access NetworkGPRS - General Packet Radio ServicesGSM - Global System for Mobile communicationsIMT-2000 - ITU initiative for a global standardized 3G wireless networkITU - International Telecommunication UnionRAN Radio Access NetworkTRU - Transceiver UnitUTRAN - UMTS Terrestrial Radio Access Network

VoIP Voice Over IPWCDMA - Wideband Code Division Multiple Access

http://www.gsacom.com/gsm_3g/request_opinion_004.htmhttp://www.gsacom.com/gsm_3g/request_opinion_004.htm

the edge option for gsm operators

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