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Definition of UMTS

3G Definition of UMTS UMTS : Universal Mobile Telecommunications System Third generation of mobile telephone (revolutionary next step after analogue and digital wireless technologies, with an expected impact similar to the internet)

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Definition of UMTS

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  1. 3G

  2. Definition of UMTS • UMTS : Universal Mobile Telecommunications System • Third generation of mobile telephone (revolutionary next step after analogue and digital wireless technologies, with an expected impact similar to the internet) • Will provide broader band transmission (up to 2Mbps), thus playing a major role in realising the convergence of telecoms, IT and broadcasting domains • High data transmission for fast mobile connection to Internet / Intranet applications, regardless of location • Electronic multimedia • Real-time full motion video transmission • Virtual office environment (usage of voice/data/video services at the same time) • Integrated voice, data (and video) handsets • Will also offer the significant advantage of using bandwidth on demand (higher efficiency) • Although essentially an European Standard, UMTS will be designed to allow roaming and interworking with other networks of IMT-2000 (VHE-Virtual Home Environment), as well as with existing GSM networks • Potentially a technology for providing Wireless Local Loop services

  3. Technology evolution • 2002 : commercial launch? • UMTS will provide broader band (as compared to GPRS), but it is not clear yet if at launch or later, and how cost-competitive UMTS will be vis-à-vis GSM/GPRS • Network planning expected to be complex due to CDMA characteristics • Breadth of applications and size of demand • IP based applications perceived as the first to take-off. • Unclear whether UMTS will be attractive only for selected, sophisticated customers or will reach a mass penetration • Pricing system • How to migrate from a minute-based to a bit-based system • Regulation • It will influence competition and economics, but no regulatory standards • Operator economics • Very likely, network economics will make reaching a national coverage with UMTS difficult • Even though UMTS is apparently adapt for Wireless Local Loop solutions, there are no indications of its cost-competitiveness against alternative technologies • The evolution toward content-based applications could significantly change the industry value system and the sharing of the revenues

  4. Next generation wireless technologies, are coming… TD Wireless Technologies Road Map Evolution ... 1999 2000 2001 2002 2003 2004 2005 Circuit GSM Ph2 HSCSD1 HSCSD2 EDGE 9.6 Kbps 28.8 Kbps(1x3 9.6Kbps) 57.6 Kbps(1x4 14.4Kbps) 144 Kbps Switching Technology SMS 384 Kbps EDGE Packet GPRS UMTS1 UMTS2 115 Kbps 2 Mbps 384 Kbps 144 Kbps 384 Kbps 144 Kbps Urban areas, low mobility High mobility, suburban areas Rural areas • Some industry representatives are betting that data revenues will reach 50% of mobile operators’ revenues by 2005

  5. A mix of applications not distinct from GPRS could make UMTS useless to end-customers Categories of UMTS applications Speed(Kbit / Sec) Switching Services Categories Bit Flow Examples of Applications Voice 16 Circuit Symmetric • Voice calls • Audio on Demand Simple Messaging 14.4 Packet Symmetric • Low speed alarm / telemetry • Virtual Banking • SMS Switched Low Speed Data 64 Circuit / Packet Symmetric • Interpersonal messaging • Traffic telematics Increasing Customer Sophistication • Remote surveillance / diagnostic • Web browsing • On-line newspapers • Games on demand • File transfer (DB access) Medium Speed Multimedia 384 Packet Asymmetric • Remote surveillance / diagnostic • On-line shopping • Photo journalism • Games on demand • Narrow cast TV 2.000 Packet Asymmetric High Speed Multimedia High Interactive Multimedia 144 Circuit Symmetric • Video conferencing • Collaborative working Source: Monitor Analysis • What will convince customers to migrate to UMTS? • higher speed for the same applications? At what price differential, if any? • Or a wider set of applications, most of them requiring higher speed? But which applications? • Or a different approach to customization of contents/applications to any single user’s needs? • How important will be the role of the operator in nurturing the developers of contents and applications?

  6. Mistakes in identifying and targeting the segments of early adopters with the highest consumption will be fatal for UMTS operators • “Today’s users of corporate intranets and Internet are likely to be early customers for mobile multimedia as delivered by UMTS” UMTS Forum • “A segment of “young” pioneers is likely. They have been brought up with Internet and multimedia, and they will be happy to have them on their cellular phone” Ericsson CustomerSegments Definition Most UsedApplications Exampleof Applications Business Users • Subscribers to a Wide Area mobile network whose bill is paid by their employer • Voice • High interactive multimedia • High speed data • Virtual office on one line • Video-telephony • Internet / Intranet fast access Consumers Users • Subscribers to a Wide Area mobile network who pay the bill themselves • Voice • Low speed data • Banking / E-Commerce Cordless Multimedia SystemUsers • Business/Residential Users who generate mobile traffic on a local-area base station (pico-cell) • Voice • High interactive multimedia • Medium / high speed data • Collaborative working inside offices • Users in home base stations / in pico-cell in shopping malls Machine to Machine • Usage which does not involve people setting up the transmission (although they may cause it) • Medium / high speed data upload • Credit card swipe terminals • Remote cameras • Telemetry Source: Quotient Communications. • Understanding the economics of different segments will be a critical step

  7. Successful development of UMTS will require a paradigm shift: existing competencies will not be sufficient • Under-estimating the implications of a more complex value system is risky • Players from other industries conquer significant leadership positions on the value system and reduce the piece of the cake for telecom operators • Unfocused or untimely alliance/partnership strategy reduce distinctiveness of applications • New operators working with a content-based paradigm aggressively cut transport price • The replication of the Internet business model zeroes value of content (and therefore the “intermediation” fee for the pure network operator) Content Creation Application Servers Network Transport SW/HWInterface End-UserManagement • UMTS Operator • Nokia, Ericsson,... • UMTS Operator Voice/Video-conference Inter-personal Messaging • UMTS Messaging Center (managed by UMTS operator) • UMTS Operator • Nokia, Ericsson,... • UMTS Operator • Traffic information aggregator (WWW, Operator server,…) • UMTS Operator • Nokia, Ericsson,... • Blankpunkt (Car Screen Terminal) • UMTS Operator • Car Screen Producer • Content Aggregator • Highways • Police Traffic Telematics • Banks / credit cards companies • Portals (AOL) • WWW sites (manufacturers, shopping malls,…) • UMTS Operator • Nokia, Ericsson,... • Smart Card Producers/ Distributors • UMTS Operator • Banks / Credit Cards • Portals / WWW site companies • Smart Card Distributors • Goods manufacturers On-line Shopping

  8. Anyway, it is still unclear if end customers will require UMTS performance at the moment of its commercial launch 2005 (at latest) 1997-98 1999 2000 2001 2002 UMTS Phase I (Basic deployment) UMTS Phase I (Full commercial) Technology Basic 2G HSCSD USSD GPRS EDGE* Enhance Data Rates over GSM Evolution (circuit and packet switched) Circuit Switched Data + Messaging Circuit Switched Data Interactive Messaging Packet Switched Data (Internet-like IP services) Packet Switched Data HSCSD Packet Switched Data HSCSD Features • Rural outdoor: 144-384 • Urban/suburban (outdoor): 384-512 • Indoor/low range outdoor: 2000 From X hundred ( GSM phase 2+)to 2Mbps depending on backbone network technology 64 Speed (Kbits/s) 9.6 57.6 (4x14.4) 100-150 384 64 *Likely to be introduced mainly by operators who will not have a UMTS license • The GSM Phase 2 technologies will represent a natural migration toward UMTS “The existing operators will have to educate their customers to use 3rd Generation services, by progressively introducing more powerful GSM-based technologies” Nokia • However, depending on the relative pricing and the distinctiveness of the new UMTS applications (allowing simultaneously multiple services provision, spectrum on demand, high degree of service flexibility, etc.) the same GSM technologies could delay UMTS adoption or not • The interests of the existing operators will significantly influence the rapidity of UMTS development

  9. UMTS compared with the existing and future fixed/mobile technologies 2G 2.5G 3G GSM CDMAOne PDC DAMPS GSM II+ (GPRS) [2000] IS-95 B Rural Areas Vehicular + Suburban Pedestrian UMTS (W-CDMA) [2002-5] CDMA 2000 IS-136 HS EDGE [2001-2] Wireless LAN Mobility Indoor-Cordless Fixed Wireless ISDN B-ISDN Wireline 9.6 kbps 64 k 144 k 384 k 2 Mbps Data Rate per User (bits/second) • Not yet clear whether UMTS network will be really capable of providing 2 Mbps in 2002 or later

  10. Higher Data Rates are Needed video clip report photo UMTS video clip GSM 2+ web report photo video clip web report e-mail photo ISDN video clip PSTN web report e-mail photo video clip web e-mail photo report GSM Ph1 0 10 sec 1 min 10 min 1 hour Transmission Time

  11. Frequency Plans for 3rd Generation UMTS TDD UMTS TDD DECT UMTS DCS 1800 UMTS EUROPE IMT-2000 TDD IMT-2000 IMT-2000 PHS JAPAN PCS unlicensed PCS PCS USA 1800 1850 1900 1950 2000 2050 2100 2150 2200 Frequency band in MHz • Harmonized frequency plans in Europe and Japan according to ITU decision. • US plan is incompatible because of 2nd generation frequency allocations. • Mixing the two frequency plans would mean more guardbands and lower • spectral efficiency.

  12. However, the definitive setting of standards is still far to be achieved: in Europe Commercial Services should not start before 2002 1997 1998 1999 2000 2001 2002 Japan (ARIB/TTC) Europe (ETSI) ITU - IMT2000 Selection of Radio Technology Freezing of Network Standards Freezing of Radio Standards Commercial Service • NTT DoCoMo (in Japan) will be the first to introduce UMTS in March 2001 • Pushed by lack of a global standard for mobile voice services and spectrum scarcity on its existing systems • Will take the “risk” of starting its network deployment and testing without complete specification of the ETSI standards • Already successfully tested 2 Mbps transmission in W-CDMA field trials in Oct. ‘96

  13. Docomo has announced its UMTS launch (spring 2001) • Market • Initially a very focused, data/video-driven customer base (likely to be business) • 2.5 million customers (5% of existing base at 2001) • Eventually a mass market • 360 million customers, including vehicles, PDAs, and pets! • Services • Mainly a development of existing services (IP, GPS positioning) • Video progressively taking the lead • NetworkImplementation • Focused initially to highly populated, business oriented cities (Tokyo, Nagoya, Osaka) • Able to provide high speed data and video since the start (but 2 Mbps only after 2003) • Around $ 850 Mn invested by 2001 • Multi-mode (PHS-PDC-UMTS) terminals for at least 10 years (time required to reach national coverage with UMTS) • KeySuccessElements • User-friendly, multipurpose inexpensive terminals • Appeal of content

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