The wireless communications business has experienced an exceptional growth during the last 10 years. This growth has been particularly remarkable in those markets in which GSM was the dominant standard, Europe and Asia Pacific. GSM economies of scale and its fundamental characteristics such as global roaming and competitive short message services (SMS) helped this boost. Current global volumes were not expected in any existing forecast. Figure 5 displays the evolution of the cellular subscribers worldwide from 1991 and shows several forecasts for the coming years, which indicate that the cellular subscriber growth rate is expected to continue growing during this decade.
During the 1990s, with the introduction of second-generation (digital) standards, voice telephony went wireless. The 1990s was also the decade of the Internet take off, with Internet-based multimedia services (MMSs) becoming increasingly popular and the web becoming the ‘de facto’ world information database. Second-generation (2G) cellular standards were, however, not designed to support these new Internet-based services and applications. Third-generation (3G) standards are meant to become the vehicle for Internet based multimedia and other data services to go wireless as well.
Key drivers of UMTS market:
There are operators who did not obtain licences to operate a 3rd Generation network, either due to not having been selected or having decided not to bid for the licences. A good alternative technology to UMTS is that of EDGE, which allows users to have reasonable quality of multimedia services over the GSM network.
In summary, the advantage of 3G to mobile operators is the new revenue generation that would steam from services offered to users. With data services becoming more important day by day and mobility becoming an essential part of life, it is most likely that these new mobile data and internet services will draw many users. The reason why many operators were willing to pay such large sums of money for 3G licences speaks for itself. They predict that revenue that will be obtained from 3G services and applications will sometime down the road, make their investments worthwhile and reap profits for them.
In addition, if a technology offers high performance differential with low incremental complexity and it is available quickly, it is likely that the sales effort needed will be low. Conversely, if the technology offers a more limited performance-complexityavailability combination, the technology could still be marketed, but a more intensive sales and marketing effort will be needed. Often, technologies that do offer significant incremental performance but also demand high complexity implementation do not achieve market success. Optimisation of the four parameters: sales and marketing effort, performance, complexity and availability will contribute to success.
During the 1990s, with the introduction of second-generation (digital) standards, voice telephony went wireless. The 1990s was also the decade of the Internet take off, with Internet-based multimedia services (MMSs) becoming increasingly popular and the web becoming the ‘de facto’ world information database. Second-generation (2G) cellular standards were, however, not designed to support these new Internet-based services and applications. Third-generation (3G) standards are meant to become the vehicle for Internet based multimedia and other data services to go wireless as well.
Key drivers of UMTS market:
- Growth in the market for fixed networked multimedia services.
- Increasing demand for rapid and remote access to information.
- eCommerce and transaction based applications.
- Appropriate regulatory framework.
- Advances in spectrum efficient radio technologies and data compression techniques.
- Development of open UMTS standards.
- Improvement in user interface design and display technologies.
- Reduced size, power, and cost of mobile devices.
- Early of exploitation of GPRS and GSM services.
- Security and fraud issues.
- High cost and limited availability of spectrum.
- High cost of UMTS technology.
- Poor coverage and incomplete roaming.
There are operators who did not obtain licences to operate a 3rd Generation network, either due to not having been selected or having decided not to bid for the licences. A good alternative technology to UMTS is that of EDGE, which allows users to have reasonable quality of multimedia services over the GSM network.
In summary, the advantage of 3G to mobile operators is the new revenue generation that would steam from services offered to users. With data services becoming more important day by day and mobility becoming an essential part of life, it is most likely that these new mobile data and internet services will draw many users. The reason why many operators were willing to pay such large sums of money for 3G licences speaks for itself. They predict that revenue that will be obtained from 3G services and applications will sometime down the road, make their investments worthwhile and reap profits for them.
In addition, if a technology offers high performance differential with low incremental complexity and it is available quickly, it is likely that the sales effort needed will be low. Conversely, if the technology offers a more limited performance-complexityavailability combination, the technology could still be marketed, but a more intensive sales and marketing effort will be needed. Often, technologies that do offer significant incremental performance but also demand high complexity implementation do not achieve market success. Optimisation of the four parameters: sales and marketing effort, performance, complexity and availability will contribute to success.
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