WCDMA: Wide Band Data on the Move

Wide Band Code-Division Multiple Access or WCDMA is the 3G technology that
GSM operators across the world are migrating to in their quest to offer
high-speed data and multimedia content or in other words, mobile broadband
services. WCDMA uses CDMA air interface instead of TDMA. WCDMA is based on CDMA
and is the technology used in UMTS and adopted as a standard by the ITU under
the name "IMT-2000 direct spread".

Most licenses for WCDMA-based networks were awarded between 2000 and 2001.
Japanese operator NTT DoCoMo launched the world's first commercial WCDMA
network in 2001. However most other operators could roll out their networks in
time because of both technical and financial problems. Operators faced financial
problems as they had spent mind-boggling sums on buying 3G licenses. European
operators alone spent more than $133 billion on licenses just before the
telecommunications sector entered an era of worst downturn.

According to UMTS Forum, currently more than 60 3G/UMTS networks using WCDMA
technology are operating commercially in 25 countries. The forum claims that
there are over 100 terminal designs from Asian, European and US manufacturers.
At the start of this year, more than 16 million people worldwide owned 3G phones
based on the Wideband Code Division Multiple Access (WCDMA) standard, according
to the UMTS.

Apart from higher data rates, WCDMA can support greater number of voice and
data customers. One of the major areas of concerns for operators across the
world has been growing network traffic that has been affecting the quality of
service leading. WCDMA can provide a much superior quality of service and take
care of a number quality issues on the network thereby ensuring a superior
end-to-end performance.

WCDMA offers mobile operators significant cost savings as well. Nokia claims
that, depending on the coverage required the capital cost of upgrading an
existing GSM/GPRS network to WCDMA is between 10 and 40 % of the initial cost of
building a GSM 1800 MHz network about the same density as the WCDMA network. The
vendor also claims that once the initial rollout investment has been made,
building additional WCDMA capacity is relatively cheap, costing less than half
the price of an equal voice capacity expansion in a GSM network.

WCDMA also promises other benefits like automatic international roaming,
integral security and billing functions. Operators can migrate from 2G to 3G
while retaining many of their existing back-office systems. It employs a 5 MHz
channel carrier width. This 5 MHz channel carrier provides optimum use of radio
resources, especially for operators who have been granted large, contiguous
blocks of spectrum - typically ranging from 2x10 MHz up to 2x20 MHz - to reduce
the cost of deploying 3G networks.

WCDMA offers mobile operators an opportunity to repeat the success (they had
with consumers) in the enterprise domain. Apart from enhanced user experience,
operators can offer high value broadband data services for businessmen on the
move. Business customers usually appreciate high quality experience and ready to
pay for services that add value to their business. As such, operators can take
their ARPU to new levels by encouraging additional traffic, stimulating new
usage patterns and strengthening customer loyalty.

Ravi Shekhar Pandey