Interviews With Mobile Computing Vendors

3G GSM TRIALS IN NORTH AMERICA BY MICROCELL CONNECTIONS of MONTREAL
(Notes Based on MobileInfo.com’s Interview with Anthony Shultz, VP Operations in July 2000)

Overview of 3G Trial
Microcell Connexions, Inc, a GSM Operator with head office in Montreal, Canada, has been conducting 3G technical trials during 1999-2000 on behalf of the contributing members of GSM alliance as well as Telesystems International Wireless (TIW), an alliance associated company.

The 3G trials are technology trials to test network coverage, data throughput, handoff and related issues, as against business feasibility trials where customer acceptance is validated. The latter type of business trial will come in future, presumably. The technology trials also include the modeling of network economics based on the results obtained from the testing. The trials have been divided into two phases.

• Contributing Vendors in Phase I

• Nortel Networks responsible for hardware; base station
• Panasonic contributing prototype customer terminal which he described as a large phone set, with a large screen, and built-in video camera

• Contributing Vendors in Phase II

• Ericsson sponsored both the base station equipment and prototype terminal

Phase I terminal equipment (handset) was demonstrated at the recent GSM Congress in Cannes and at the 42^nd Plenary of the International GSM Association in Montreal. The Ericsson equipment, however, has not been formally demonstrated in public.

Actual Trials
The testing portion of both Phase I and II Trials is now complete, and analysis of test data is underway. Montreal was chosen as the trial site for both phases, covering an area of 2.5 to 3km in radius. Downtown Montreal, amidst high-rise structures, was the site for Phase I trials. In contrast, suburban Montreal with its low-rise buildings was the location for Phase II trial. Only a small number of mobile handsets (6 in total) were involved in the trials. The purpose of both trials has been to assess/validate the following:

• Coverage
• Data Rate
• Handoff issues
• Demonstration of potential value added services

Applications that were tested included:

• Voice
• Full motion video conferencing
• Internet browsing
• Downloading of streaming video and audio
• File transfer

Preliminary Results
According to Anthony Schultz, V.P. of Network Planning and Operations at Microcell Connexions in Montreal, the early results have been very encouraging - better than expected. For example, in a mobile setting, the data throughput was in 300 to 400Kbit/s range versus 1 Mbps in a fixed environment. Since only a small number of mobile (6) terminals were involved, no effective throughput projections with a large number of mobile or fixed users are expected to be available. Some mathematical extrapolations might be available.

Microcell Connexion and GSM Alliance expects to release a full report in fourth quarter of 2000.

Potential Application Scenarios
By the end of next three to four years, we can expect advanced applications, especially in mobile commerce – e.g. ordering products from a smart phone; conducting detailed banking transactions; entering stock trade transactions routinely. In the field of healthcare, it is expected that paramedics will be able to transfer vital patient data to the hospital and medical professionals remotely.

In the next ten years, with 3G networks well established with a national footprint, we may expect to see the emergence of a wide range of video data applications in a number of industries.

• Emergency Medical Services - Emergency vehicles could be equipped with terminals that would have the ability to transfer video pictures and data to medical professionals via monitoring devices for advice in real-time.
• Public Safety – Police vehicles responding to a crime scene would have access to surveillance pictures prior to responding to the call.
• Education – While on a field trip, a teacher could present pictures or video images on the relevant subject to their students.
• Insurance – While at a client’s office or residence, a salesperson or adjuster could complete a detailed policy or report by way of the exchange of "intense" data transaction.
• Tourism – For tourists or travellers, a number of location-specific transactions and detailed mapping applications could provide precise directions.

Other 3G Trials
France Telecom and Vodafone may be conducting 3G trials in Europe, but Microcell Connexions executives were not sure.

Deployment of 3G Networks in North America
To date the results of its technical trials will be applied to a business case/marketing plan. According to Anthony Schultz, even though the industry spectrum for 3G is/were available, new base stations and back-office structures will have to be implemented. He expects the commercial roll out of 3G networks in USA and Canada in 3 to 4 years. Obviously, not all areas will be supported fully due to small and sporadic population in certain areas.

Technology
The differences in the technology being employed in GSM 2G, 2.5G and 3G networks are as follows:

Deploying 2.5G Networks
Microcell will be deploying 2.5G (GPRS) and has already chosen its vendors. In his view, Microcell’s approach to deploying a 2.5G network followed by a 3G reflects the intentions of many North American carriers. The packet data technology will provide efficient use of radio spectrum and network resources.

Mr. Shultz could not comment on market data projections, but he did not see any difficulty in supporting market demand.

Advice to IT Professionals
Anthony Schultz advised network affiliates, service providers and IT professionals to establish relationships with 2.5G and 3G network providers to become familiar with the technology and possible services. Microcell will be setting up a Wireless Application Development Forum in the third or fourth quarter of this year so that applications can be developed through its network. This is a Microcell initiative and not a GSM Alliance initiative.

Migration Path
Migration Path from 2G GSM to 3G would involve the following steps:

2G (GSM)  ------>  2.5G GPRS  ------>  EDGE (2.9G)  ------>  Full 3G

In reality, some wireless network providers may skip one of these steps. To employ GPRS and then EDGE will mean some disruption in installation and installing fewer base stations for high population areas only till software-controlled radios are available. With software radios, same base station switching processors may be upgraded with cards or software re-loads. This will reduce the eventual investment needed to make the transition to 3G. GPRS will happen in 2001, with 3G in 4 years by 2004-2005.

3G Network Compatibility with Internet Protocol
Mr. Shultz sees 3G networks being based on IP protocol. Conceptually, even GPRS will interface with IP, HTML and WAP. To mandate IP as a base link protocol for the interim is not realistic – hence there is need for wireless middleware to be provided by software vendors like Broadbeam – MobileInfo comment.

3G Network vis-à-vis Wireless Broadband
A few broadband vendors have commented on wireless broadband negating the need for 3G. Mr. Schultz commented that primary focus for wireless broadband is fixed locations. On the other hand, 3G networks address mobility needs more than fixed location wireless needs. He sees a need for both broadband and 3G networks, as each serves a particular market.

• Broadband: fixed local multipoint distribution service and multichannel multipoint distribution service, with data speeds up to 5-10Mbit/s needed to service the heavy data demand of enterprise systems. Limitations: line-of-sight.
• 3G networks are needed to service lower rates of data when you are mobile. These networks support mobile data speeds, multi pathing and signal fading phenomenon.

In future, both broadband and 3G carriers should be working together to service the needs of the customer. Microcell aims to do just that and is investing in wireless broadband networks as well.

Given the scenario of millions of users browsing the Internet, does Mr. Schultz see a shortfall in spectrum and capacity? In his opinion, the telecommunications field is diverse enough with people using various technologies from wireline to wireless broadband to wireless 3G. Thus it would be very unlikely there would be a shortfall.

MobileInfo.com Advisory on 3G Networks: We would like to make following editorial comments on 3G networks:

1. 3G networks, when fully implemented, will move mobile computing to a new level after five years. Meanwhile, wireless applications should be implemented carefully. Choose your communications middleware vendor who will allow you to migrate to future networks without application-level changes. Continue to invest in optimizing your wireless network traffic – 38 Kbps with GPRS or equivalent non-GSM (TDMA, CDMA alternatives) is a good enough speed for well-designed transaction-based applications. 90% of on-line business applications will be nice with this speed so long as we do not require multi-media functionality.
2. For a reliable production-level national footprint, 3G networks will take longer than industry forecasts. There is significant market development work, business case work for huge investment required and finally engineering work for implementing networks. Each step takes time. First you will see GPRS or Edge in GSM sector. CDMA and TDMA will have their unique technology implementations. By 2004-2005 timeframe, you will see 3G coverage only in high-population areas.
3. User organizations should plan for using the capacity of future wireless networks only after detailed analysis of service provider’s network plans and well-crafted contracts. Perhaps hybrid network strategy is your best bet. No single network technology will meet all your wireless network needs.
4. North America will continue to have multiple technologies and standards – Europe will stay ahead for the next four years.
5. Wireless multi-media applications must be carefully analyzed from business case point of view. Some applications will be affordable. However widespread use of wireless multi-media as a general-purpose application in business will stay as a target opportunity for the next 6-8 years.
6. We also feel that based on queuing theory projections of similar telecommunications systems, effective data rate will drop significantly below 350 Kbps forecasts with large number of users per cell. Nonetheless, 3G will bring a quantum improvement from where we are.
7. If you are a wireless network provider, do plan for these networks. They are going to happen as fast as network service providers can roll them out.
8. If you are a network service provider, price these wireless data services (2.5 G and 3G) low and breakeven period longer. You should be in it for the long haul. Please keep in mind what happened to Iridium.
9. If you are in an end user organization, develop your applications carefully - optimize data stream, user interface, transaction flow, minimize multi-media, allow for wireless network interruptions, disconnected mode,  and persistent transaction recovery. Put your best design team on wireless application - it is not a piece of cake as some would have you believe.

Acknowledgement: MobileInfo.Com thanks Microcell Connexions, Montreal for allowing us to interview Mr. Anthony Schultz, VP of Network Operations and Planning.