To 3G or not to 3G, what was the question?

To understand where mobile data is going, it helps to understand how mobile networks have progressed. Vikki Bland explains what the "G" means, what "G" we're up to and when we can expect the big "3G"...

 

Developmental stages of mobile networks are often called "generations." For example, "first generation" or "1G" mobile networks used analogue technology to transmit voice. These were followed by second generation (2G) networks, which are digital. Being digital means a 2G mobile network has extra capacity, increased voice quality and can transmit data as well.

So-called "2.5G" networks are a stage in between 2G and future 3G networks; they allow data to be transmitted separately to voice. However, it is 3G networks that hold the promise of truly advanced mobile services, including much faster Internet access and the ability to make mobile video calls.

So where are Vodafone and Telecom New Zealand going with their mobile networks?

Presently the companies use competing mobile network technologies - Vodafone uses the 2.5G "General Packet Radio Service" (GPRS) and Telecom uses Code Division Multiple Access (CDMA) and its recent upgrade, 1XRTT, which Telecom calls "Mobile Jetstream." When Mobile Jetstream was launched, Telecom billed it as a 3G mobile network. However, while Mobile Jetstream is technically "3G compliant" it is not yet running at true 3G capacity. Think of it as "2.75G" if you like!

While Vodafone and Telecom will probably launch 3G mobile networks in New Zealand eventually; it is difficult to pin down when this will happen, and how much the services will cost.

The mobile data market is still growing and maturing, so there isn't a lot of return on 3G investment for telcos in the short term. Another barrier is the exorbitantly high cost of 3G radio spectrum, the radio range which carries 3G mobile calls, and which must be purchased from governments or "bought into" with existing commercial owners.

The first sign you'll get from Vodafone will be when they role it out in the Northern Hemisphere.  Global roamers will be the first to benefit, but for the rest of us, best not to hold our breath.  There is a fair way to go before the market is mature enough and the telcos can foresee the return on investment to justify it.

In the meantime, both Vodafone and Telecom are working around any speed bumps by working closely with application developers to use data compression technology and  getting around this problem by building intelligence into the server environment so that only new information is transmitted, keeping costs and transmissions light and quick.

Check out the case studies to the right of companies already benefiting from the current "G" options.

Visit the Mobile Business Research Pavilion

February 2003

By Vicky Bland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Further Reading

Visit the Vodafone exhibit in the Mobile Business pavilion

Visit the Telecom Mobile exhibit in the Mobile Business pavilion

 

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