Comparision 2g-3g

7/27/2019 Comparision 2g-3g

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Wireless operators around the globe are launching or preparing to launch packet data services overmobile networks. Deploying packet data is a cost-effective way for mobile carriers to balance the

network resources required to sufficiently meet the needs of the growing market for voice services andthe potentially large mobile data market. The path to high-speed packet data differs greatly, however,

between GSM and cdmaOne networks. GSM operators require a new data backbone, base station

upgrades and new handsets to offer packet data services. Packet data in cdmaOne networks is standardand was built into the IS-95 standard from its inception. All cdmaOne handsets and base stations arepacket data capable today, and the networks utilize standard Internet protocol (IP) based equipment.

GSM is circuit- based, requiring a new packet data backbone and new handsets, the commercial launchof which has been delayed until early 2001.

In order to take advantage of higher speed packet data, the GSM and cdmaOne upgrade paths includehigher speed handsets, which will be commercially available within the next 12 to 18 months. The next

major upgrade for GSM is GPRS, which is 2.5G, while the next major upgrade for cdmaOne is 1X, whichis 3G. We will examine some of the critical factors affecting an operator's ability to migrate to higher

speed services and to implement a packet backbone. One of the most critical factors is the forward and

backward compatibility of the handsets--the capability of an older handset to operate on an upgradednetwork and the capability of a newer handset to operate on an older network. The commercialavailability of the packet capable handsets is the second crucial factor. The Second factor is the cost and

ease of integration of the packet data network and the ability for third parties to implement services onthese data backbones to offer high-speed Internet services.

Defining the market

Currently, mobile data rates are low on both GSM at 9.6 kbps with Circuit Switched Data and cdmaOne

95A networks at 14.4 kbps in either circuit or packet switched modes. These speeds are far lower thanthose available to a typical user of a PSTN wire-line network. However, we are now entering a period

that will see new and faster non-voice mobile services. For example, anticipating an increased demandfor data services, Korean and Japanese operators SK Telecom, Hansol, DDI and IDO have already

implemented commercial cdmaOne 95B packet data at speeds of 64 kbps.

Packet data

Equipment

requirements

GSM CSD (CircuitSwitched Data)

GPRS (GeneralPacketRadio Service)

EDGE (Enhanced Data rates forGSM Evolution)

IMT-2000 CDMADirectSpread (CDMA DS)

HandsetNo packet datacapability -Single-Mode phones

New handsetsGPRS-- enabled handsets

will work on GPRS enablednetworks and 9.6Kbps onGSM networks using CSD-Dual Mode phones

New handsetsEDGE-- handsets will work at upto 384Kbps on EDGE enablednetworks on GPRS enablednetworks and 9.6Kbps on GSM

networks using CSD-Tri-Modephones

New handsetsCDMA DS handsets will

work at up to 2Mbpsand only on 3Gnetworks-Quad-Modephones

Infrastructure No packet datacapability

New packet overlay/backbone needed for

Further backbone modificationsrequired

New infrastructure rollout with existing


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circuit switched network interconnect

TechnologyPlatform

Current GSMTDMATechnology

GSM TDMA platform withadditional packet overlay

Modulation changes required toGSM TDMA platform

New CDMAinfrastructure

The GSM data evolution path will always require new network infrastructure and new phones. Every one

of the future GSM data services from GPRS to EDGE to WCDMA (and High Speed Circuit Switched Dataand Wireless Application Protocol) requires the purchase of a new mobile phone to take full advantage

of the enhanced functionality, but all handsets will still be able to operate on the GSM network, allowingvoice and CSD at 9.6Kbps. The GSM roadmap for handsets is not forward and backward compatible.

This means that GPRS handsets will not work on EDGE or 3G CDMA DS base stations. A GSM carriermust make new investments in base stations for GPRS, EDGE and 3G CDMA DS, while the packet

backbone may only need minor modifications after deploying GPRS. GSM also requires theimplementation of IP based network elements to allow a packet overlay onto a circuit switched network.

The links between the existing GSM network infrastructure entities and the IP backbone are comprisedof proprietary hardware such as the Gateway GPRS Service Nodes (GGSNs) that link the Internet to the

IP backbone. These are MODIFIED IP routers.

Using standard IP routers would have given network operators and corporate customers vendor choice,interoperability, economies of scale with existing purchasing patterns and the like. The biggest issue

with GGSNs is that new pieces of equipment raise security concerns with IT departments. This can

hinder the deployment of a mobile data application due to the need for integration and testing. Sincenetwork operators are interested in the data traffic, this barrier to the sale presents a challenge for the

corporate work force. Discussions with suppliers of both standard IP routers and GGSNs have indicatedthat a GGSN will typically cost three to four times more than the equivalent IP router, presenting

another sales barrier. Network operators are likely to subsidize the GGSN element- perhaps even givingit away free of charge with a minimum number of GPRS phone sales.

The use of the proprietary GGSNs in the GPRS solution also has other cost implications for networkoperators and third party developers. GGSNs will not realize the same economies of scale of the

Internet network elements that the cdmaOne solution does. Corporations all over the world areimplementing standard routers in their corporate landline Intranets and for standard Internet access. IT

departments are building knowledge and skills with standard IP network equipment. The addition of anew version of a router -GGSNs-- will require IT employees to learn new non-standard router

configurations specific to each GGSN vendor. We believe that this will hinder the implementation ofGPRS in corporate environments.

The cdmaOne packet data implementation, on the other hand, utilizes standard routers, which are thesame ones used in the landline Internet. The same IT professionals working on a corporate landline

Intranet could transfer the same skills to a mobile Intranet based on cdmaOne. This will result in

greater revenues for operators and lower costs for corporations. Operators will not need to be integralin developing every application that is used on its network, and corporations will require fewer

resources to develop applications.


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GPRS will also eventually require Mobile IP in order to offer full mobility within the Internet. WithoutMobile IP, the GPRS network will not be able to identify a node such as a portable computer that has a

standard IP address. For example, GPRS subscribers with portable computers will not be able to log intoa corporate network using GPRS alone. The GPRS network will require Mobile IP to allow the corporate

network to authenticate the IP address of the portable computer. Since Mobile IP requires more network

resources, this may lead to a reduction in the volume of data available on each packet as the transportlayer information increases. The implication is that GPRS networks will be less efficient than cdmaOnenetworks. cdmaOne uses Mobile IP as its transport layer.

Packet DataEquipment

requirements

95A 95BIMT-2000 CDMAMulti-carrier 1X(MC 1X)

IMT-2000 CDMAMulti-carrier 3X(MC3X)

Handset

Standard95A handsets willwork on all future

networks: 95B, 1Xand 3Xat 14.4Kbps-Single-Mode phone*

Standard inchipsets199995B handsets will workon 95A networks at

14.4Kbps and 95B, 1Xand 3X systems atspeeds up to 114Kbps-Single-Modephone

1X standard in chipsets in20011X handsets will work on95A networks at 14.4Kbps,

95B Networks at speeds upto 114 Kbps and 1X and 3Xnetworks at speeds up to307Kbps-Single-Modephone

New handsets3X handsets will work on 95Anetworks at 14.4Kbps, 95B

networks at speeds up to 114Kbpsand 1X networks at speeds up to307 Kbps and 3X networks at2Mbps-Single-Mode phone

Infrastructure StandardNew software in BSC(Base Station

Controller)

1X requires new software inbackbone and new channel

cards at base station

Backbone modificationsNew

channel cards at base stations

Technology

Platform

CDMA CDMA CDMA CDMA

cdmaOne is based on IP standards, giving it an inherent advantage over GPRS. Current cdmaOne

phones have the standard IP protocols built into the handset, and cdmaOne networks use IP addressingwithin the network without the need for an additional IP layer being added to the packet transport

layer. This allows for a high degree of backward and forward hardware compatibility for networkoperators looking to implement new higher speed data services and evolve to 3G, which is an IP-based

standard.

Today's cdmaOne networks already incorporate an IP gateway referred to as the Inter-Working Function

(IWF). This is essentially a standard IP router built into the network, routing IP packets without theneed for them to be handled by an analog modem. The IWF receives information from the mobile phone

in Point to Point Protocol (PPP) format and assigns a temporary IP address for that session. Expertsestimate the cost for rolling out a full network upgrade for 45 million POPS from GSM to GPRS is about

US $125 million. Adding packet data to a CDMA network is far less expensive: less than $5 milliondollars. cdmaOne phones and base stations already have IP protocols built in. Having the IP gateway as

a standard feature NOW therefore represents a significant advantage to cdmaOne network operators.The cdmaOne configuration is based on existing corporate infrastructure standards. Certain network

infrastructure manufacturers have stated that their new cdmaOne infrastructure allows theincorporation of ANY standard router from any manufacturer into the IWF. A standard RADIUS server

undertakes billing information and authentication in the network, and messaging is handled using SMTP.


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Integrating high speed cdmaOne data in a corporate network will be much easier than with GPRS, asthe infrastructure of cdmaOne is based on what is considered to be standard corporate infrastructure

components. Since there is backward and forward compatibility in the cdmaOne handsets, any handsetcan operate on any cdmaOne network, (assuming the same frequency or the use of multi-band phones)

of that cdmaOne network (95A, 95B or 1X) at the highest available speed possible by both the handset

and network. For example, 1X handset will be capable of 14.4 Kbps on a 95A network and 64 Kbps on a95B network. A 95A handset will operate on a 95A, 95B or a 1X network, but only at 14.4Kbps.

* Across the raw air link; assumes 8 concatenated channels. With GPRS, the figures also assume noerror correction on data transferred.

^ Indicates initial/ current support (4 slots for GPRS)

" The typical data rate available to an individual user

We can see from this analysis that the maximum theoretical speeds available over GPRS are in fact

higher than 95B but less than 1x-but in initial commercial implementations we expect 95B tooutperform GPRS. KT Freetel, and Hansol in Korea, commercially launched 95B in 1999 while DDI and

IDO of Japan launched commercial service in 2000. Several, but not all, of the GPRS networkinfrastructure vendors are planning to support the maximum eight channels in their technical

implementations. GPRS has a disadvantage in that the initial GPRS capable mobile terminals areexpected to support only a maximum of four simultaneous channels. GPRS and voice both use the same

traffic channels, meaning that that both voice and data are competing for the same resource. Networkoperators, wherever they are in the world, are reluctant to dedicate channels or assign priority to data

over voice. Because of real world limitations the typical bandwidth available to a GPRS user is expectedto be less than 30 kbps, similar to the wire-line data transfer rates in 1999 and below today's 95B.

EDGE has a maximum theoretical data rate of 384 kbps, but EDGE works in a similar way to GPRS inthat this would require all 8 timeslots-which is unlikely-- to be available to a single user who would also

need to be given priority over voice. As such, the theoretical maximum is once again an irrelevantfigure to an end user. We expect uses to get 114 kbps data rates.

We estimate that CDMA 1X will allow approximately 90% throughput of the implemented bandwidth tothe application layer and therefore offers a typical user rate of 130 kbps, five times the typical data rate

available to a GPRS user. It should be noted that the144 kbps rate is symmetrical.

Summary


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From this analysis, we can see that the packet data design that is standardized in the network and

handsets of the cdmaOne standards technology facilitates easier and therefore less expensive packetdata implementation than GPRS from a network operator, handset, application developer and

corporation's point of view. All cdmaOne handsets are packet data capable and work on allimplementations of cdmaOne networks. Phones do however remain a significant barrier to the

widespread uptake of higher speed data services on both GSM and CDMA networks.

Any network operator who is facing the decision of which network to buy should consider the upgrade

paths of each network. GSM networks were not designed for packet data-- a GPRS upgrade adds thiscapability but at a higher cost than cdmaOne. Also, the GPRS network is not based on standard IP

network elements, which will result in a more complicated integration than the cdmaOne packet data

solution that was designed with standard IP in the handsets and with standard IP elements in thenetwork. These standard elements will follow the cost curves of the Internet network elements.

Additionally, GPRS and EDGE dedicate network resources to data taking capacity away from the GSMvoice network which could cause network congestion. CDMA is a voice and data solution where voice

and data share the same resources. 1x also increases data speeds to 144 kbps and doubles the voicecapacity of current cdmaOne systems

By incorporating standard IP protocols and network IP routing, cdmaOne sensibly maximizes theleverage it gains from the considerable economies of scale conferred by the Internet. This will allow

cdmaOne carriers to offer the equivalent Internet services as GPRS and EDGE operators with a loweroverall investment in equipment and human resources and without decreasing voice capacity. Network

operators will more readily find the skills to integrate equipment and develop services because the sameIP elements are used on the landline Internet.

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Comparision 2g-3g