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

Mobile Data Service Providing 3 Evolution of Mobile Networks

Mobile Data Service Providing 4 The Operation Principal of GSM TCh CCh

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

Mobile Data Service Providing 6 The Operation Principal of HSCSD TCh CCh

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

Mobile Data Service Providing 8 GPRS architecture

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

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

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

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

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

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)

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

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

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