Pipeline Publishing, Volume 2, Issue 10
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METAMORPHOSIS 
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By Paul Budde

HSDPA, IMS, and WiMAX

Mobile data is unique.  If the mobile operators would exploit the unique features of mobile (in key user markets such as teenagers) as opposed to wireless, there are plenty of good niche market opportunities. However, operators will need to change their business models in order to successfully tap into these markets.

Around the world, thousands of mobile data entrepreneurs are prepared to have a go at this market. They have the creativity, innovation and eagerness that are lacking in the more bureaucratic and technically-oriented mobile operators. So, if these operators would just step aside, and if a viable business model (linked to better prices) is created for the mobile data companies, then the sky is the limit.

If the operators would pursue mobile data opportunities along these lines, they will indeed come to understand that this will be a completely different market from (wireless) broadband. There will be some collisions and overlaps at the outset, but I am sure these markets can be developed along their own lines.

At the moment, however, the market is still far too confusing for customers. How on earth can we expect them to take the mobile data industry seriously while we continue to bombard them with such a confused array of incompatible products and services?

3¼G already on its way

Before 3G has even been widely introduced we are already seeing a repeat of the 2G scenario. Having delivered the 3G networks to their customers, the vendors are on the move, and are already securing their next level of sales. The 3¼ version is now under development – known as HSDPA (High Speed Downlink Packet Access).

The new technology will increase speeds of the 3¼ G network to between 8 and 10Mb/s. In Stockholm, Ericsson has already deployed a pilot network that delivers 5MB/s.The vendors aim to keep in line with developments on the fixed network, where Digital Subscriber Line (DSL) speeds will be improved along similar lines. Their goal is to deliver to their customers a transparent experience using broadband over the fixed or mobile networks.

It will be interesting to see if commercial applications can be developed based on HSDPA. So far the ideas have not gone much beyond ringtones and music downloads. I am sure that the innovative entrepreneurs out there will be able to come up new applications, but the problem hasn’t been lack of applications, but rather a lack of viable business models.


"WiMAX is already very much an IP-based technology and 3G is not. This means that voice can be added to WiMAX reasonably easily and cheaply..."





By and large the operators have refused good sharing arrangements with content providers (Japan and Korea are exceptions). Instead they have generally opted to go it alone and this has led to very poor mobile data performances. Furthermore, the prices charged for mobile data are nowhere near those charged for fixed netwrks and, unless this changes quite dramatically, we won’t see a large uptake of HSPDA, and it will most likely suffer the same fate as the dozen or so upgrade technologies introduced on 2G networks over the last five years.

The mobile industry is putting on a brave face, telling us that 3G and WiFi/WiMAX are aimed at different markets and won’t compete with each other, that is true but many of the current 3G developments are aimed at wireless broadband; most probably in frustration about the fact that the operators find it difficult to commercially exploit the unique mobile functionalities that 3G has to offer. I remain convinced that, if we do get affordable WiMAX services and end-user equipment, there won’t be much room for 3G broadband, unless they start to follow the affordable Internet model.

WiMAX is already very much an IP-based technology and 3G is not. This means that voice can be added to WiMAX reasonably easily and cheaply, turning it into a real competitor – not just for broadband but also for telephone calls.

HSDPA

High-Speed Downlink Packet Access (HSDPA) is an evolving telephony protocol. It is a packet-based data service in WCDMA downlink with data transmission up to 8-10 Mb/s over a 5MHz bandwidth in WCDMA downlink. Its standards were developed by the 3rd generation partnership project (3GPP).   Release   4   specifications    enable


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