GPRS FOR MOBILE DATA: 2.5G: Moving Halfway…to 3G

As the name implies, 2.5G technology was conceived as a stepping-stone from

2nd Generation (2G) i.e. GSM to 3rd Generation (3G) mobile. 3G is soon arriving

in Japan but may happen elsewhere only in 2002-03. In all the talk about 3G, the

importance of 2.5G technologies like General Packet Radio Service (GPRS) seems

to have been underplayed. It offers significant data applications (examples

include news headlines, sports scores and traffic updates) in a channel separate

from voice calls, in an "always-on" mode, and is definitely way ahead

of Wireless Access Protocol (WAP) in performance. Currently, WAP enabled GSM

phones are being used to access the web and to send/receive data, but suffer

from sluggish performance (slow and dropped connections), high airtime cost and

limited content–making the experience not such a pleasant and fruitful one.

Data Friendly Packet Switching

GPRS

is based on "packet switching" (as against "circuit

switching" used by GSM) and is technically capable of delivering 144-170

Kbps. However, the more realistic speeds could initially be 53.6—115 Kbps. The

2.5G’s "always-on" web-access capability, coupled with much faster

data speeds, makes the wireless web experience far easier and more pleasant.

However, users will have to buy new GPRS capable phones/devices to take

advantage of that. It also has the ability to allow operators to charge/bill

users based on the amount of data sent/received per month, as against the time

spent online. As per a survey, a new 2.5G service could boost an operator’s

Average Revenue Per User (ARPU) by 35 percent, depending on the services

introduced. The likely moneymaking services include instant messaging, games and

many business services. The whole business model is thus undergoing a change.

For mobile networks, as voice



becomes a commodity, data would be the differentiator to fight competition.

The Internet and mobile phone revolutions are fast converging into the world

of Mobile Data. Various demand estimates of packet data point in that direction.

Some of them are–Ovum: 407 million users in 2004, ARC: 803 million users in

2005, Mobile Lifestreams: 400 million users in 2004, EMC: 165 million users in

2004. It is reported that 5 billion SMS messages were sent in December.

Why go for GPRS?

Due

to the high costs involved in 3G deployment — in the infrastructure as well as

the new spectrum — the GSM operators are looking towards GPRS. GPRS offers the

simple evolution path for a GSM network upgrading the same infrastructure and

using the same spectrum. With BTSs being GPRS compatible, the key addition is

GPRS Support Nodes (cost of upgrade being only marginal).

Thus, there are many benefits in moving to GPRS till 3G issues are resolved:

• GPRS shares the same radio
  
  resources as GSM (however, in congested cells with a high number of voice
  
  users, the GPRS throughput or data rate may be significantly less than
  
  expected).

• GPRS can deliver the SMS traffic
  
  more efficiently, thereby taking the load off the GSM network.

• GPRS makes use of existing GSM
  
  infrastructure; and being largely a software and architecture process is
  
  easy to implement. GPRS is able to use existing BTS locations with coverage
  
  similar to voice (upto 2 or 3 dB degradation in signal strength).

• It will provide vital experience
  
  in delivering/billing data, a skill required to go to 3G. However, the first
  
  generation GPRS may not support Mobile Terminated GPRS. If the service
  
  provider charges for content delivery, one has to address the issue of
  
  unauthorized content such as advertisements or junk e-mail.

As a wireless solution for the Internet, 2.5G is thus

expected to be far simpler, less costly to implement, and a more satisfying

experience for the user.

Some of the Indian GSM operators are almost concurrent with

those elsewhere (like in Europe and Asia-Pacific) in announcing the

implementation of GPRS.

Learning from the WAP Experience

After WAP’s lack-luster performance, 2.5G may act like

testing or preparation ground for 3G. For instance, the number of WAP users in

Delhi is believed to be less than ten thousand, out of a total cellular

subscriber base of 5.5 lakhs. However, against i-mode’s super success in

Japan, this is difficult to comprehend. Non-availability of WAP handsets is

attributed as a key reason but the WAP experience in already congested networks

is not a very happy one. GPRS will have to address these issues in advance.

The WAP experience has shown that new products are not easy

to launch and can take much longer than expected. Just like GSM, GPRS requires

full agreement on the standards (Release 29/Release 31) as well as

inter-operability & compatibility of GPRS infrastructure and devices.

Another thing to learn from the WAP experience is not to

over-hype the customer expectation. It is critical to tailor the marketing

messages to the product capability. As GPRS cannot replicate the desktop

Internet experience, expectations have to be realistic. This brings in the need

to educate/prepare the customer in advance. Ultimately, the delivery can be

better than the promise.

Different Skill Sets

Besides differences in applications, positioning, pricing and

market segmentation, GPRS requires different skills compared to GSM’s voice

networks. GPRS provides IP delivery as the Internet drives the services used

over GPRS. It therefore requires new technical expertise in IP in addition to

GSM. The IP security subject is vastly different and the IP experience is in

great demand.

GSM taught us that quality and security are two prime

customer considerations and GPRS will not be any different. Customers will

expect from GPRS, a performance quality just like their current

Internet-experience on other devices like desktops. Market success requires not

only simple, easy to use applications but also end-to-end security. Though GSM

is secure, the Internet is not! These issues need to be addressed also.

Partnership Opportunity

Partnerships with Content/Application Providers are becoming

the key to success in the market place. We can learn a lot from "i-mode"

in moving towards mutually beneficial partnerships with content providers, as

operators cannot afford anymore to "go it alone." Need for

personalized content is becoming increasingly critical.

The Terminal Story

GPRS has been in planning for a long time and the delay is

mainly attributed to non-availability of GPRS compatible handsets. Reasons cited

are related to performance and stability. Various other customer needs to be met

include screen size and color resolution, voice/PDA evolution, speed, battery

life, etc. The complexity is likely to make them expensive. Though some models

have appeared now, mass delivery of handsets is expected in the fourth quarter

2001 (3G models are expected to arrive a year later).

From 2.5G GPRS to 3G UMTS

Ultimately, 3G UMTS is planned as a natural evolution path

for GSM operators. Most of the core network elements of GSM and GPRS are likely

to be used for the UMTS network, with core network components like SGSNs and

MSCs being upgraded to 3G capabilities. The databases (HLR) and

services/features servers will also be updated for new 3G subscribers and

services.

3G/UMTS’s unique Virtual Home Environment (VHE) is expected

to allow the multi-system user to experience a common look and feel interface

and a common service execution in all the visited networks. These services will

be personalized for the user, based on the user’s needs. For instance: share

prices, home shopping and travel information, personal banking, video and audio

applications, call control and management and dynamic preferred services tariff

selection.

The key to success would be innovative marketing of

data/Internet services on mobile. But going by the Japanese experience, that

should not be difficult. Some believe that 2.5G may even delay 3G’s arrival.

However, 3G will ultimately prevail because it offers data connection speeds up

to 10 times faster than 2.5G, permitting zippy services such as wireless

videophones and digital music players.

Niraj K Gupta www.telecombyNirajGupta.com