“The Promise of 3G: Technical Aspects and Market Demand” “

SIEMENS
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““The
The Promise of 3G:
Technical Aspects and
Market Demand
”
Demand”
Bosco
Bosco Eduardo
Eduardo Fernandes
Fernandes
VP
VP SIEMENS,
SIEMENS,
UMTSF
UMTSF CHAIRMAN
CHAIRMAN ICT
ICT GROUP
GROUP
(IT
(IT Media,
Media, Applications
Applications &
& Content)
Content)
Tel.:+49
Tel.:+49 89
89 722
722 25524
25524
Fax.:+49
Fax.:+49 89
89 722
722 24646
24646
ee-mail:bosco.fernandes@icn.siemens.de
-mail:bosco.fernandes@icn.siemens.de
Copyright © 2001 UMTS Forum ICTG All Rights Reserved
ITU Workshop on Licensing Of Third Generation Mobile– 1
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Outline
INTRODUCTION
INTRODUCTION
TECHNICAL
TECHNICAL ASPECTS
ASPECTS
MARKET
MARKET DEMAND
DEMAND
SUMMARY
SUMMARY
Copyright © 2001 UMTS Forum ICTG All Rights Reserved
ITU Workshop on Licensing Of Third Generation Mobile– 2
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The Vision of 3G
Services
GREAT
GREAT PROMISE
PROMISE for
for ConsumersConsumersHigh-speed
High-speed data
data Communications
Communications to
to aa
Variety
Variety of
of value added
Applications Content,
presented on multi
multi mode
mode Devices
Devices
practically
practically anywhere
anywhere in
in the
the world
world
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ITU Workshop on Licensing Of Third Generation Mobile– 3
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INTERNET
INTERNET ACCESS
ACCESS
--mail
Chat,e
mail
Chat,e
Chat,e-mail
Travel
Travel Information
Information
Mobile
Internet
Near
Near Video
Video on
on
Demand
Demand
News
News and
and Sports
Sports
Clips
Clips
Business
Business TV
TV
Audio
Audio on
on Demand
Demand
Information
Information
Fixed
Internet
Broadcasting
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IMPORTANCE
IMPORTANCE OF
OF IP
IP
IP is more than
a Protocol.
IP is ubiquitous.
IP has influenced
many businesses
Copyright © 2001 UMTS Forum ICTG All Rights Reserved
r
ide
ail rce
v
M
o
r
e
E
mm ice P
b ile
Mo e E-Co Serv ccess ent
m
b il
tA
ne t
Mo Inter trane ertain
t
bile ile In le En
o
b
i
M
Mo Mob
ITU Workshop on Licensing Of Third Generation Mobile– 5
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Why
Why has
has the
the Internet
Internet been
been
successful?
successful?
Extremely easy technology to use
Technology was developed
“outside“ telecommunications and
operator industry
-“Packet switching networks can not work in large scale“
AT&T, c.1970
Price and penetration
-“Virtually no-expenses for end-user“, 1960-1995
Not Regulated
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ITU Workshop on Licensing Of Third Generation Mobile– 6
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ARCHITECTURE
ARCHITECTURE OF
OF 3G
3G
NETWORKS
NETWORKS
SERVICES
SUBSYSTEM
FRAMEWORK
OSA
R-SGW
MGCF
MG
MC
Appl.
Server
T-SGW
IM Core
IPv6
CSCF IPv6
MGW
SCP
Gi
HSS(HLR)
GMSC
IPv4
IPv4
MSC
CS Core
MGW
3G SGSN
MSC SERVER
lu
lu cs
cs
GPRS Core GGSN
lu
lu ps
ps
RAN
RAN
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SUMMARY of IMT
-2000 Standards
IMT-2000
-2.4 Mbps
1.8
1.8-2.4
Mbps
CDMA2000
CDMA2000
Functionality & capability
HDR
HDR
CDMA
CDMA
115
115 kps
kps
GSM
GSM
22 Mb/s
Mb/s
CDMA
CDMA
1XRTT
1XRTT
22 Mb/s
Mb/s
UMTS
UMTS
GPRS
GPRS
EDGE
EDGE
TDMA
TDMA
384
384 kps
kps
2G
2001
2002
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Bluetooth
Bluetooth
WLANS
WLANS
>20
>20 Mb/s
Mb/s
2003
2004
2005
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“The nice thing about standards is
That there are so many to choose from“
Today in multimedia rather than
choosing one, one uses all of
them together
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What
What is
is different?
different?
2G differentiator is about Tariffs
3G is about services and Applications,
hence these will be the differentiator
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3G
3G market
market demand
demand
The
The 3G
3G operator
operator role
role will
will change
change from
from
aa simple
-only, direct
simple voice
voice-only,
direct
relationship
relationship with
with the
the user
user to
to one
one
which
which involves:
involves: multiple
multiple partners,
partners,
revenue
revenue sharing,
sharing, and
and third
third parties
parties
also
-user
also targeting
targeting the
the end
end-user
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Ensure
Ensure the
the interoperability
interoperability
√
2G
√
Internet
Access
Instant/Unified
√Instant/Unified
Communications
√
√
UMTS
√
Copyright © 2001 UMTS Forum ICTG All Rights Reserved
2,5 G
√
√
Applications &
Services
Communications
Interactive
Games
√
√
√
Interactive
Multimedia
Advertising
Location
Based
Services
Application
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Migration
Migration from
from 2G
2G to
to 3G
3G
How
How will
will we
we know
know when
when we
we will
will have
have got
got to
to 3G?
3G?
Famous
Famous last
last words
words
“The
“The telephone
telephone would
would be
be used
used only
only to
to inform
inform
people
people of
of the
the arrival
arrival of
of telegrams.“
telegrams.“
1876
1876 Alexander
Alexander G.
G. Bell
Bell invents
invents
the
the phone
phone
Forecasting can have unpredictable results
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ITU Workshop on Licensing Of Third Generation Mobile– 13
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Do not wait for
Killer Applications
Go out and find them
Voice
Data
Video
Appliances + Devices
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SERVICES
SERVICES &
& APPLICATIONS
APPLICATIONS
mobile commerce
„
„
„
„
„
Mobile Banking/Brokerage
Interactive Shopping
Multimedia Booking & Reservation
Mobile Auctioning
and more . . .
mobile portal
„ Personalized application menus
„ Search Engine
„ Banner Ads
„ and more . . .
mobile communication
„
„
„
„
mobile info-services
„ Map based location info service (e.g.
restaurant finder)
„ Map based traffic info
„ Multimedia personal info service
„ and more . . .
mobile entertainment
„
„
„
„
mobile services
„
„
„
„
„
Control of Household Devices
Personal Security Systems
Video Surveillance
Machine-to-machine comms
and more . . .
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Multimedia Messaging
Video Telephony / Video Chat
Fast Internet Access
and more . . .
mobile office
„
„
„
„
„
Audio- Video-Clips
Multimeadia Lottery & Betting
Interactive Games
and more . . .
Personal Organizer
Corporate Directory
Fast Internet-/Intranet Access
Video Conferencing
and more . . .
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USER
USER EXPECTATIONS
EXPECTATIONS
Added
Added Value
Value
here
here
now
now
for
for me
me
Simple
Simple to
to use
use
Affordable
Affordable price
price
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ITU Workshop on Licensing Of Third Generation Mobile– 16
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UNCERTAINTIES
UNCERTAINTIES
European
European network
network Operators
Operators have
have
invested
invested approx.
approx. 313
313 billion
billion Euro
Euro on
on
UMTS
UMTS Licenses
Licenses
In
In addition
addition large
large to
to new
new infrastructure,
infrastructure,
Device
Device Availability,
Availability, network
network development
development
costs
costs
Strategic
Strategic uncertainty
uncertainty on
on product
product // market
market
positioning,
positioning, service
service and
and market
market
segments
segments etc.
etc.
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ITU Workshop on Licensing Of Third Generation Mobile– 17
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Jackpot or Bankruptcy The future of 3G licensees ?
hype
UK / Germany
3G auctions
mobile
multimedia
mass
market
NTT DoCoMo
launch
First successful
network launches
in Europe
de-hype
2000
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2001
2002
2003
2004
ITU Workshop on Licensing Of Third Generation Mobile– 18
time
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‘‘This is not the end, it is not even the
beginning of the end. It is merely the end of
the beginning‘‘
Winston Churchill
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SUMMARY
SUMMARY
More
More communications
communications required
required within
within
Standards
Standards bodies
bodies
Licensing
Licensing policies
policies should
should be
be fair
fair and
and simple
simple
A
A competitive
competitive landscape
landscape encouraged
encouraged
Infrastructure
Infrastructure sharing
sharing should
should be
be allowed
allowed
Very encouraging prospects for 3G
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Thank you for your
attention!!
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www.umts
www.umts-forum.org
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