"MOBILE OPERATORS TOWARDS 3G"

ByMuhammad Usama Aftab

Outline

• What is 3G?• Mobile Networks in Pakistan• From GSM to UMTS • Pakistani Market and 3G• Spectrum and System upgrade• Consumer Behavior and Revenue• Competition with other wireless Tech• Foreign Investment• Market Structure in neighboring

countries• Government point of View• Conclusion

What is 3G?

International Mobile Telecommunications-2000 (IMT-2000), better known as 3G or 3rd Generation, is a family of standards for mobile telecommunications fulfilling specifications by the International Telecommunication Union (ITU) which includes UMTS, and CDMA2000.

What is 3G? …

• The development in 3G is diverged with two projects named:– 3GPP (3rd Generation Partnership Project): it handles the path

followed for the up gradation of GSM to UMTS.– 3GPP2 (3rd Generation Partnership Project 2): it handles the path

followed for the up gradation of IS-95B or CDMA one to CDMA2000.

3G-The Turning Point

Mobile Networks in Pakistan

• The Mobile technologies that Pakistan is using these days are 2.5G,Let’s see how?• Basic GSM network without any GPRS support Nodes is the part of

pure 2G technology. Pakistan is using GPRS/EDGE based mobile networks, that means it is the part of 2.5G Technology. Or you may say that the Core Networks of Mobile Operators has been upgraded to UMTS. Yet the up gradation of RAN side is still a dream for Pakistan’s telecom users…

• Almost all the mobile operators in Pakistan are using GPRS technology, instead of Telenor which is also using EDGE technology for its subscribers.

• Whenever Pakistan will go to 3G it will surely be UMTS, because CDMA one is not much popular in Pakistan.

Mobile Networks in Pakistan …

From GSM to UMTS

• If we talk about how GSM can be converted in UMTS, there are many changes both in the RAN side and Core side.

• In RAN side the entire instruments (i.e. transmitter/receiver) should be changed because UMTS works on entirely changed Bandwidth with different modulation techniques. And on the core networks Data nodes including PCU (Packet control Unit) SGSN/GGSN should be implemented, since these data units are the part of GSM Phase 2+ so the up gradation is not difficult in Core network side, but for RAN side it is all about purchasing the 3G’s Spectrum and its mass deployment.

Pakistani Market and 3G

Main Issue: The main issue that can be faced by Pakistan’s GSM operators for the adoption of 3G could be:

I. Spectrum and system upgradeII. Consumer behavior and RevenueIII. Competition with other Wireless technologiesIV. Foreign investmentV. Market structure in neighboring countriesVI. Government point of view

I. Spectrum and SystemUpgrade

• On the arrival of 3G in Pakistan, a huge investment will have to be done for purchasing of new spectrum and for the infrastructure.

• “In 2004, during the GSM auctions, Telenor and Warid each spent US$291 million for their licenses, and six years later they are still struggling to make a sustainable profit from 2G/GSM voice services. This is a clear example that the market is not yet ready for 3G and that cost management is operators' key priority in Pakistan”, said Joss Gillet, Senior Analyst, Wireless Intelligence

II. Consumer Behavior and Revenue

• Now the 2nd main issue that mobile operators have to face for adoption of 3G will be that will they will get that much revenue from their subscribers that they can overcome their investment.

• Today, most of the telecom revenue comes from voice and to a small extent from value added services such as SMS and ringtone. Other data services such as mobile financial services, mobile web browsing, mobile social networking etc (also known as Mobile 2.0) have not become popular in Pakistan and in other developing countries.

III. Competition with other Wireless Technologies

• Another issue for mobile operators on coming to 3G networks is that they will have a strong competition from Wimax. They have to compete because many wireless broadband companies are giving their services in Pakistan like Wi-tribe, Mobilink Infinity, wateen telecom, Qubee…

• “Pakistan has leapt ahead of the United States and Europe in launching WiMax, a wireless technology targeted at both cell-phone and Wi-Fi users. The technology looks to provide a double-whammy for Pakistani consumers, simultaneously serving both cell phone and Wi-Fi users in a complementary way. While cellular networks have been upgraded by telecoms companies to the tune of billions of dollars, they still only have a limited data transmission capacity.” Said David H. Deans.

IV. Foreign Investment

• Pakistan state’s investment in Telecom market is always limited only Ufone was firstly under the state’s circle and now even it is under the company named “Etisalat”.

• There are 5 big mobile operators– Mobilink (Orascom)– Ufone (Etislat/state)– Telenor– Warid (Wateen)– Zong (China Mobile)

IV. Foreign Investment …

If 3G is launched in Pakistan will there be any foreign investment in Pakistan? Which supports the government’s GDP…It is a big question, because if it is not, 3G may be not adopted…and in this part of the world there are many other BIG Telecom MARKETS present…

V. Market Structure in Neighboring countries

• The biggest of all markets of Telecom in this region of the world is “INDIA”. They really lead ahead from Pakistan in Telecom Market, & new technology adoption.

• Indians have already adopted 3G technology that attracts the foreign investment towards itself.– Reliance Mobile– Bharti– Airtel– Vodafone

V. Market Structure in Neighboring countries …

– Maharashtra– Orissa– Punjab– Jammu Kashmir– Gujrat – Assam – Maharashtra – Kerala and Bihar

3G service has already been introduced in

VI. Government Point of View

• At a recent telecom conference held in Lahore (later Feb) where stakeholders from industry, government and public presented their point of views. It was clear from the discussion that 3G has less to do with technology, more with adoption.

• “After an extensive analysis and discussion, this technology will be launched in the country as the government is resolved to launch 3G or 4G broadband technology in Pakistan,” said Latif Khosa while addressing a seminar on 3G mobile broadband technology as chief guest.

Conclusion

References

• http://www.cellular-news.com/story/28699.php • http://www.pkreaders.com/2010/06/govt-to-launch-3g-

4g-broadband-technology/ • http://www.indiastudychannel.com/resources/114893-G-

service-providers-all-states-India.aspx• http://dhdeans.blogspot.com/2006/06/pakistan-

becomes-wimax-market-leader.html• http://pakistaniat.com/2010/05/03/pakistan-3g-2g • http://www.mobilebusinessbriefing.com/article/pakistan-

eyes-move-to-3g-as-market-shows-signs-of-recovery

Thank You!