re: CDMA-450
>> CDMA-450 trials offer final hope to NMT-450 operators
Michèle Scanlon
Abigail Browne
EMC Cellular
March 28, 2001
Romanian Trial Under Way
NMT-450 operator Telemobil is currently conducting a CDMA-450 trial in Bucharest following an earlier trial in Budapest, Hungary in November 2000 (). The company has a small cell and mobile switching centre in operation and further infrastructure is still being rolled out. Nothing substantial is expected to happen until Q3 2001 when a commercial launch may be expected. As with the Westel Radiotelefon trial in Hungary, Telemobil is using Lucent-supplied infrastructure and prototype Qualcomm handsets. The Budapest trial focused on RF optimisation and maximisation of coverage, whilst the Bucharest trial will concentrate on the testing of packet data and mobile internet services.
Telemobil is currently in talks with Sendai and another Korean supplier regarding handsets for the commercial launch. Telemobil predicts 60,000 to 100,000 subscribers in the first stages and is aiming for 10% market share. The value of the contract to date is USD 100 million.
What happened to GSM?
Following the withdrawal of Nokia and Ericsson from the proposed GSM-400 option, NMT operators like Telemobil have little opportunities left to them when the operator has no other vested interests outside its own 450MHz licence. The operators may continue to offer NMT-450 services, but in an increasing competitive GSM world, these services demand correct market positioning to continue to attract and retain subscriber bases with 'clunky', and more expensive NMT handsets.
If Telemobil opts for a commercial CDMA-450 service, the network will be an island of CDMA in a regional GSM market. It will be some time before full interoperability is available facilitating roaming, thus the target market is unlikely to be the mass market of the GSM world today.
It is more likely that Telemobil will opt for a niche segment offering unique services, such as the business market offering corporate applications like wireless LAN. If this were the case, it is feasible that Telemobil will not only offer cdmaOne services, but cdma2000 with its higher data rates as well. Telemobil already offers NMT WLL and payphone services, and these are likely to be migrated to CDMA-450 should it become commercially available.
CDMA 1X Trial Goes Ahead In Russia
The NMT-450 operator Moscow Cellular Communications (MCC) received permission at the beginning of March 2001 from the State Committee for Radio Frequencies to conduct a trial IMT-MC (1x) in the Moscow area. The network will operate in the frequency range 453-457.5MHz and 463-467.5MHz. The trial is to take place in Q2-Q3 2001.
Plans make provision for the full development of a switching centre and up to 25 base stations supplied by Lucent Technologies. The work will include tests on electromagnetic compatibility, network configuration and the testing of new services including packet transfer of data at speeds up to 144Kbps. The trial is expected to be concluded by the end of 2001 with commercial deployment anticipated after the trial.The handsets are to be provided by the South Korean company Hyundai. Lucent has stated that it has no plans to conduct additional trials of this technology with other Russian operators.
The move marks what some observers are calling the second attempt by MCC to transfer its network to a digital standard. MCC, which currently has around 100,000 subscribers, first launched plans to build a digital network in May 2000 based on the GSM-400 standard but had to abandon the project when Ericsson, who were to supply infrastructure, withdrew , . Nokia, who had plans to manufacture GSM-400 handsets has also put these plans on hold, focusing instead on possible developments using EDGE at 400MHz .
Urgent Need For A Digital Solution if MCC to Compete
The growth of MCC's subscriber base has been slowing due to a consumer preference for its competitors' digital technologies over NMT-450. The growth of GSM within the last year, and in particular increased roaming opportunities on GSM networks within Russia, have effectively sealed the fate of NMT. NMT networks had held their own in Russia's provinces by maintaining the most comprehensive domestic roaming network, branded SOTEL.
Competitors Not Worried
Press reports suggest that MCC's competitors are reacting calmly to the initiative. The president of MTS commented that the construction of a new network required time which in the highly competitve Moscow market is a valuable commodity. 'We will watch their actions but we scarcely think that they will become serious rivals' he said. In the opinion of 'Vimpelcom''s press secretary MCC faced a complex task - managing a new technology in market crowded with competitors and crowded airwaves.
The Answer to MCC's Problems?
In June 2000 The Ministry of Communications issued Edict No 110 which asked operators to determine the effectiveness of using the 400MHz band for a path to 3G. Two possible standards were examined - GSM and CDMA. After Ericsson's refusal to develop the GSM-400 equipment the go ahead was given to CDMA. Restrictions which limit the mobility of CDMA One (IS-95A) networks in Russia have clearly not been applied to this use of CDMA technology under the family of IMT-MC (3G - cdma2000).
Whilst engineers in the Russian NMT networks have privately expressed their attraction to a CDMA solution other factors have been at play. The GSM lobby has been strong within the communications authorities in Russia, not to mention the largest companies. Nevertheless the key benefit for MCC is that CDMA can be deployed on its current frequency allocation - and it can provide data transfer provision deemed a 'must have' by all operators in the future.
First MCC, then Russia?
If MCC makes a success of the CDMA-450 standard it seems likely that other operators in the SOTEL network across Russia would follow suit.
NMT-450 Networks Of The World
Country Operator Subscribers
Belarus Belcel 18,000
Bulgaria Mobikom 167,990
Croatia Mobtel 78,900
Czech Republic EuroTel 67,000
Denmark TeleDanmark 8,790
Estonia EMT 2,000
Faroe Islands Faroese Telecom 2,140
Finland Sonera 56,000
Georgia Iberiatel 290
Hungary Westel Radiotelefon 84,200
Iceland Iceland Telecom 28,200
Indonesia Mobisel 13,000
Latvia LMT 8,590
Lithuania Comliet 6,110
Malaysia Telekom Malaysia 55,000
Morocco IAM 4,860
Norway Telenor Mobil 118,000
Oman Omantel 2,110
Poland Centertel 120,000
Romania Telemobil 21,310
Russia Moscow Cellular Comms 100,500 CDMA-450 trial
Russia Delta Telecom 78,000
Russia all other NMT 172,530
Slovak Republic EuroTel Bratislava 16,290
Slovenia Mobitel 41,150
Sweden Telia 154,000
Thailand TOT 18,000
Tunisia Tunisie Telecom 14,000
Turkey Turk Telecom 103,700
Ukraine UMC 60,000
Total 1,620,790 <<
- Eric - |
