The Promise of 3G: Technical Aspects and Market Demand

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1 The Promise of 3G: Technical Aspects and Market Demand Bosco Eduardo Fernandes VP SIEMENS, UMTSF CHAIRMAN ICT GROUP (IT Media, Applications & Content) Tel.: Fax.: icn.siemens.de Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 1

2 Outline INTRODUCTION TECHNICAL ASPECTS MARKET DEMAND SUMMARY Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 2

3 The Vision of 3G Services GREAT PROMISE for Consumers- High-speed data Communications to a Variety of value added Applications Content, presented on multi mode Devices practically anywhere in the world Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 3

4 INTERNET ACCESS Mobile Internet Chat, Travel Information Near Video on Demand News and Sports Clips Business TV Audio on Demand Information Fixed Internet Broadcasting Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 4

5 IMPORTANCE OF IP IP is more than a Protocol. IP is ubiquitous. IP has influenced many businesses Mobile Mobile E-Commerce Mobile Internet Service Provider Mobile Intranet Access Mobile Entertainment Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 5

6 Why has the Internet been 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, Not Regulated Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 6

7 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

8 Functionality & capability SUMMARY of IMT-2000 Standards Mbps HDR CDMA 115 kps GSM GPRS TDMA EDGE CDMA 1XRTT 384 kps Bluetooth CDMA Mb/s 2 Mb/s UMTS WLANS >20 Mb/s 2G Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 8

9 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

10 What is 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

11 3G market demand The 3G operator role will change from a simple voice-only, only, direct relationship with the user to one which involves: multiple partners, revenue sharing, and third parties also targeting the end-user Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 11

12 Ensure the interoperability UMTS 2G 2,5 G Internet Access Instant/Unified Communications Instant/Unified Communications Interactive Games Applications & Services Interactive Multimedia Advertising Location Based Services Application Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 12

13 Migration from 2G to 3G How will we know when we will have got to 3G? Famous last words The telephone would be used only to inform people of the arrival of telegrams Alexander G. Bell invents the phone Forecasting can have unpredictable results Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 13

14 Do not wait for Killer Applications Data Voice Video Go out and find them Appliances + Devices Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 14

15 SERVICES & APPLICATIONS mobile commerce Mobile Banking/Brokerage Interactive Shopping Multimedia Booking & Reservation Mobile Auctioning and more... mobile info-services Map based location info service (e.g. restaurant finder) Map based traffic info Multimedia personal info service and more... mobile services Control of Household Devices Personal Security Systems Video Surveillance Machine-to-machine comms and more... mobile portal Personalized application menus Search Engine Banner Ads and more... mobile office mobile communication Multimedia Messaging Video Telephony / Video Chat Fast Internet Access and more... mobile entertainment Audio- Video-Clips Multimeadia Lottery & Betting Interactive Games and more... Personal Organizer Corporate Directory Fast Internet-/Intranet Access Video Conferencing and more... Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 15

16 USER EXPECTATIONS Added Value here now for me Simple to use Affordable price Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 16

17 UNCERTAINTIES European network Operators have invested approx. 313 billion Euro on UMTS Licenses In addition large to new infrastructure, Device Availability, network development costs Strategic uncertainty on product / market positioning, service and market segments etc. Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 17

18 Jackpot or Bankruptcy - The future of 3G licensees? hype UK / Germany 3G auctions NTT DoCoMo launch mobile multimedia mass market de-hype First successful network launches in Europe time Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 18

19 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

20 SUMMARY More communications required within Standards bodies Licensing policies should be fair and simple A competitive landscape encouraged Infrastructure sharing should be allowed Very encouraging prospects for 3G Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 20

21 Thank you for your attention!! Copyright 2001 UMTS Forum ICTG All Rights Reserved ITU Workshop on Licensing Of Third Generation Mobile 21

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