SIEMENS SIEMENS ““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 SIEMENS SIEMENS 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 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 3 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 4 SIEMENS SIEMENS 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 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 6 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 7 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved Bluetooth Bluetooth WLANS WLANS >20 >20 Mb/s Mb/s 2003 2004 2005 ITU Workshop on Licensing Of Third Generation Mobile– 8 SIEMENS SIEMENS “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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 9 SIEMENS SIEMENS What What is is different? different? 2G differentiator is about Tariffs 3G is about services and Applications, hence these will be the differentiator Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 10 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 11 SIEMENS SIEMENS 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 ITU Workshop on Licensing Of Third Generation Mobile– 12 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 13 SIEMENS SIEMENS Do not wait for Killer Applications Go out and find them Voice Data Video Appliances + Devices Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 14 SIEMENS SIEMENS 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 . . . Copyright © 2001 UMTS Forum ICTG All Rights Reserved 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 . . . ITU Workshop on Licensing Of Third Generation Mobile– 15 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 16 SIEMENS SIEMENS 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. Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 17 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved 2001 2002 2003 2004 ITU Workshop on Licensing Of Third Generation Mobile– 18 time SIEMENS SIEMENS ‘‘This is not the end, it is not even the beginning of the end. It is merely the end of the beginning‘‘ Winston Churchill Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 19 SIEMENS SIEMENS 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 Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 20 SIEMENS SIEMENS Thank you for your attention!! -forum.org www.umts www.umts-forum.org Copyright © 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile– 21