3G will demand effective leadership
By Dr. Alain Briancon, Chief Technology Officer, InterDigital Communications Corporation
interdigital.com
This article first appeared in CDMA World Focus 2001. Published by Informa Telecoms Group www.informa.com
The next generation of wireless will not only change the user experience, it will change the business model of the global mobile industry as a whole. Once we solve the complexities of the 3G air interface and the supporting infrastructure (at the edge as well as the core of the network), we will move from a somewhat closed architecture of 2G to a more open architecture that creates new business opportunities for equipment manufacturers, operators and others. 3G is a flexible technology platform. It offers OEMs and applications providers the opportunity to design products in a new way, by taking effective advantage of this new environment. A number of open interfaces enable richer solutions and products that can be created and evolved quickly once established. Tremendous opportunities are available in 3G for existing players as well as new entrants who are developing both equipment and applications.
These opportunities will become more apparent as 3G products are introduced over the next several years. It is not surprising that the initial deployment of 3G products is slowing. The complexity of the technology, capital investment required and transition from 2G networks is understandably challenging. The decision by Japan's NTT DoCoMo to defer the launch of its 3G service from May to October 2001 is seen as further proof of the complexities of the 3G transition, and the probabilities of significant delays. The reality, as is so often the case, is much different than this public perception. In fact, the mobile industry is experiencing a period of turbulence but all the evidence suggests that this will be temporary and the long-term future of 3G is brighter than ever.
There is no doubt that 3G technology (W-CDMA) is new and complex so the process of standardisation must of necessity proceed carefully. Nevertheless, the ongoing work of the 3rd Generation Partnership Project (3GPP) is firmly on track. The definitive 3G standard, Release 99, was completed for public diffusion in December 99. This was a key step forward as the release of Release 99 enabled equipment vendors to press ahead with the development of standards-compliant infrastructure and terminals. Since the release of Release 99, 3GPP implementors have continued working on eliminating ambiguities and clarifying key elements.
Many of these ambiguities were resolved in March 2001 for baseline implementation. This is important because it indicates the increased level of activity by the equipment vendors in terms of 3G product development. All of the major vendors are confident that Release 99-compliant infrastructure will be available to operators within the agreed upon timescales, during the second or third quarters of 2002. It is also important to note that operators are continuing their push to be first to market with 3G, indicating their belief that the technology will be on time and will work. 3GPP is continuing its work on 3G and is on schedule to publish Release 5 by the end of 2001. This release will lay the groundwork for the further integration of 3G networks with IP networks and technology, further opening the architecture of the system and the potential for rapid product and service creation.
One of the strongest attributes of 3G W-CDMA is that the architecture can evolve to even higher data rates and richer applications, such as 10Mbit/s services. In fact, the level of confidence in the success of 3G can be gauged by the equipment manufacturers and operators who are already looking beyond the current implementation of the 3G technology. UK operator BT Wireless and Nokia recently successfully completed the first 3G All-IP multimedia rich call over a BT wireless trial network in the UK. Elsewhere manufacturers are investing substantially in driving mobile data speeds beyond the 2Mbit/s promised by 3G towards the10Mbit/s level.
The complexity of 3G technology lies largely in the much higher number of interfaces, functional blocks and subsystems that it has, compared to 2 and 2.5G technologies. This in turn requires the writing of more test scenarios, which in turn affects the standardisation process.
Interestingly, this complexity ultimately works in favour of the operators and end users as it fosters greater competition in the provision of the technology blocks than was previously possible. It also has the effect of stimulating innovation. The major challenge of 3G is that it is a paradigm shift from the virtually closed architecture of 2 and 2.5G to a more open architecture. 3G provides the capability of having many more players because of the large number of open interfaces and this ultimately creates a richer platform for the implementation of new applications and services.
The air interface plays a key role in this environment. Although more complex, involving as it does the management of almost independent logical and physical channels over the air, the W-CDMA air interface is extremely flexible. This flexibility expedites the rollout of new multimedia services which effortlessly mix voice, data and video into a rich new fabric.
The range and variety of the services that will be enabled by 3G will even surprise the most reputable industry visionaries. Effectively the services that will be offered to 3G customers will be limited only by the imaginations of the application development community. Certainly voice will continue to play a key role. In fact, the recently published market study by the UMTS Forum forecasts that 'simple voice' will generate $88 billion of revenue from 3G customers in 2010, out of a total revenue stream of $237 billion. That's a solid business case for voice. However, this also means that about two thirds of the revenues in 2010 (about $149 billion) will be incremental revenues that are generated from new and compelling data and content services.
Voice, as we know it today, will become richer as capabilities such as video, voice browsing, and true multimedia will be added. Multimedia messaging will be a key service for many 3G users. The tremendous popularity of SMS is an early sign of the potential for multimedia messaging in the 3G market. A number of major vendors including Ericsson, Motorola and Nokia, have joined forces in the Wireless Village initiative to encourage the development of instant messaging solutions.
Another key area will be location-sensitive services and there is considerable pressure from operators to move the standardisation of these higher up the time line as they are seen as potentially major revenue generators. As wireless portable devices migrate towards a friendlier user interface, web browsing and e-commerce – using secure high-speed wireless Internet access - will become a huge consumer service. In parallel, we expect business users to rely increasingly on the advantages of mobile intranet and extranet access.
A broad array of companies are working intensively to develop the 3G architecture and applications to enable advanced services. Operators need technology developers, equipment producers and application developers to move quickly to deliver exciting solutions that will allow them to harvest substantial revenues from their 3G investments. Companies that partner effectively are leading the way in delivering 3G solutions by incorporating technology platforms from experienced providers.
As the landscape changes and we experience a shift in architecture from 2 and 2.5 to 3G, new business opportunities will emerge for technology developers, semiconductor producers, equipment manufacturers, operators, application developers and many others. The range and variety of new services that will emerge with effective industry leadership will be endless and will mark a momentous occasion in the history of the mobile industry. The rich fabric that 3G enables will translate into exciting devices and services for us and for our children.
DRIVING 3G DEVELOPMENT THROUGH PARTNERSHIP
InterDigital has formed a broad, long-term strategic partnership with Infineon Technologies aimed at driving the future development of third generation mobile communications. Together the two companies will develop enabling software for 3G which will then be incorporated into Infineon's baseband integrated circuits that will be used in 3G terminals worldwide.
Under the partnership agreement, InterDigital will also utilize Infineon's manufacturing capabilities to design and sell custom ASICs for inclusion in 3G infrastructure and specialised devices. These ASICs will incorporate intellectual property from InterDigital and Infineon. The partnership will leverage the superior technology libraries of both companies along with Infineon's world class manufacturing capabilities and both companies' expertise in air interface design and systems integration.
The two companies plan to market and license the software as an integral part of Infineon's total system solution for UMTS/GPRS dual mode products as well as a standalone product for 3G equipment vendors. The development process will be driven by the superior technology libraries of the two companies and by their world class expertise in air interface design and systems integration.
InterDigital and Infineon will also be developing a high performance software platform for use in UMTS mobile devices. Engineers from InterDigital will be working with their colleagues from Comneon, a wholly owned subsidiary of Infineon, to design and deliver this advanced software in time for the launch of commercial UMTS/GPRS dual mode products in Europe. The jointly developed FDD protocol stack will enable terminal manufacturers to offer superior voice and high-speed data performance in mobile devices such as phones, personal digital assistants, and laptop computers, as well as in automotive/telematic and home-based products. Engineers from InterDigital and Comneon will also provide support for revisions and feature upgrades to the designs to keep pace with technological innovation as the 3G standard firms up.
InterDigital's access to Infineon's comprehensive technology suite and world class manufacturing processes will drive the execution of a critical part of the US vendor's strategy to bring to the market ASICs for the 3G infrastructure and specialised mobile terminal markets.
Infineon is the world's largest supplier of GSM baseband application specific standard products (ASSP) and GSM radio frequency integrated circuits. InterDigital has a strong portfolio of patented TDMA and CDMA inventions and its long term strategy is to leverage this technological expertise and its key intellectual property into creating leading edge third generation solutions. |
