Friday 20 July 2007

3G Networks.........What's the plot???

3G - 3G stands for Third Generation of mobile phones. First Generation mobile phones include Advanced Mobile Phone Systems (AMPS) which were established in the 1960s and laid a strong foundation for establishing rigid cellular networks. Second Generation Mobile Systems include the GSM (Global System for Mobile Communication) and CDMA (Code Division Multiple Access) systems. We are currently in 2.5G. Actually 2.5 G is not a system but this was introduced to bridge the wide gap between 2G and 3G networks. 2.5 G systems enable GPRS and EDGE connectivity. 3G networks provide voice and high speed data services using spread spectrum technologies, thus enabling multimedia services on a cell phone.

Currently we are moving towards 3G networks, but the process seems to be very slow, as it involves procurement of the license from the respective authorities and then establishing the whole network. 3G networks are totally different from the current GSM and CDMA networks. Service providers can't upgrade the existing networks to 3G networks. Also some of the basic models don't even support 3G phones. One aspect which must be taken into consideration by operators before procuring license for 3G is the high risk involved in installing 3G networks. The chances of very less people turning towards 3G are high. This is because India is currently having a boom time in cellular market. Almost everyone is willing to buy a cell phone; so much that you can easily spot a hawker talking on a cell phone. Excluding the business class and upper middle class people, almost everyone is buying the basic model provided by Nokia/Motorola in the range of 2000-4000. The current number of customers having 3G enabled cell phones is in the range of 5-10%.

Several countries have faced problems in establishing 3G networks because of the tremendous license fee incurred by respective authorities. As a result the service providers were financially crippled to establish 3G cellular networks. Also 3G was not that successful in Europe as it was in Japan because of the hype made by companies promising they will enable browsing at 2Mbps. Saying that 3G networks will enable users to access internet at about 2Mbps is clearly an overstatement. Although theoretically it is possible to get a bandwidth of the order of 2Mbps but actually it is a gradual process and when 3G networks are established one can expect to get a bandwidth of around 150Kbps.The networks have to evolve slowly by improving several factors such as cell radius, capacity of base station, hand offs and so on. Japan is currently moving towards 3.5G systems and more than 40 % of Japan's cellular network is covered by 3G. 3G networks were successful in Japan because the licenses to the cellular operators there were provided free of cost under the "National Infrastructure Development Scheme". Such schemes must be implemented in India so that cellular operators are not burdened with the license fee. So, several factors must be considered to ensure that 3G networks are successful in India. 3G systems, if successful in India, would enable excellent voice services and high speed data services and which would be considered as a big leap in India’s development.

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