3G Wireless Networks (Archived Report)









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ARCHIVED REPORT:

3G Wireless Networks

by Kathi Vosevich, Ph.D.

Copyright 2011, Faulkner Information Services. All Rights Reserved.

Docid: 00017395
Publication Date: 1111
Report Type: TUTORIAL

Preview

Third generation (3G) wireless
networks are now the norm for most wireless operators around the world.
As with the deployment of second generation (2G) networks, there are
competing standards: the most widely used standard, W-CDMA/UMTS, is
deployed throughout Europe and in many other areas, including the US;
CDMA2000 and its variants have been deployed by operators in the US,
South America, and various Asian countries; the third standard is
TD-SCDMA, deployed only in China. As operators are nearing
completion of 3G rollouts, the question is what is next. Since these technologies will converge on some version of LTE, the 3G race to 4G has the same finish line.

Report Contents:

Executive Summary


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Third Generation or 3G, as the name suggests, refers to the
third generation of mobile telephony or cellular technology.

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However,
operators are already touting 4G with lots of marketing hype, despite
the fact that many experts think only five or six percent of mobile Internet
users will be using 4G by 2015. Thus, 3G is here to stay for the
short-term, at least, if not beyond. As
with 2G wireless networking, there is no single 3G standard; 3G
standards include CDMA2000, Wideband-CDMA/Universal Mobile
Telecommunications System (W-CDMA/UMTS), and Time Division-Synchronous
Code Division Multiple Access (TD-SCDMA), a home-grown standard in
China.

Since
4G is very much still in the process of rolling out, creating an
ecosystem, and building a market, 3G’s outlook seems secure for the
present. “Real” 4G, according to the
purists and ITU’s original prescription, should actually deliver 1 Gbps down and 100 Mbps up while
mobile–and not just in theory. These figures have not yet been hit in
practice. Since most 3G roads (CDMA2000,
W-CDMA, and TD-SCDMA) seem to lead to LTE, the 3G technologies are viable
now and future-proofed for later. When deciding on a 3G technology now,
coverage, availability, and price will be the differentiators.

Description



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Third Generation or 3G, as the name suggests, refers to the
third generation of mobile telephony or cellular technology. However,
operators are already touting 4G with lots of marketing hype, despite
the fact that many experts think only five or six percent of mobile Internet
users will be using 4G by 2015. Thus, 3G is here to stay for the
short-term, at least, if not beyond. Let’s look at a generational
timeline to see how the technology has evolved and where it is today.

The First
Generation (1G) began in the 1980s with the deployment of Advanced
Mobile Phone Service (AMPS) that carried analog voice in the 800 MHz
frequency band. The Second Generation (2G) followed in the 1990s with
two competing digital voice standards: Code Division Multiple Access
(CDMA) and Time Division Multiple Access (TDMA), the latter of which is
used by the Global System for Mobile Communication (GSM). CDMA operated
in the 800 MHz band, whereas TDMA operated in the 900 and 1800 MHz
bands. This digital technology allowed for smaller, less expensive
devices for voice and data transmission and led to an increased demand
for speed and bandwidth. 

Thus, 2.5G emerged, although it was not an official wireless standard, referring to
interim packet switched networks that sent bursts of data as needed
rather than locking up a channel for the duration of an
exchange. Examples of 2.5G networks included Single Carrier Radio
Transmission Technology (1xRTT),
1x Evolution-Data Optimized (EV-DO), 1x Evolution-Data Voice (EV-DV), and 1xEV-DO Revision A

on the CDMA evolutionary roadmap, as well as General Packet Radio Service
(GPRS), Enhanced Data Rates for GSM Evolution (EDGE), and various versions of High-Speed Packet Access (HSPA), including
HSPA+,
on the GSM evolutionary roadmap, with speeds ranging from about 50 to nearly 400 Kbps, depending on the technology.

Under the International
Telecommunications Union (ITU) group of standards belonging to the
International Mobile Telecommunications (IMT)-2000 initiative, 3G was
rolled out early in this century. Japan’s NTT DoCoMo launched the
world’s first 3G network for commercial use in 2001, and South Korea’s
SK Telecom followed in 2002 using 1xEV-DO. Soon 
operators around the world rolled out wireless broadband 3G networks, which support a wide range
of applications for consumers and businesses, including high-speed Internet and
intranet access, streaming media, and mobile TV. 

For the most part, wireless operators chose either the CDMA or
GSM roadmap for building out and enhancing their 3G networks, but both
roadmaps and most carriers are now converging on Long-Term Evolution
(LTE) for their 4G technology. Competition
between the CDMA and GSM 3G paths brought innovation in technologies,
features, and services, as well as lower prices, although international
markets tended more towards GSM. WiMAX, once holding a time to market
advantage over LTE for evolved 3G or 4G, was also poised to be an
option for integrated fixed/mobile wireless services beyond 3G, but
Sprint’s recent change in direction to LTE pushes WiMAX technology more
solidly towards emerging markets.

As
with 2G wireless networking, there is no single 3G standard; 3G
standards include CDMA2000, Wideband-CDMA/Universal Mobile
Telecommunications System (W-CDMA/UMTS), and Time Division-Synchronous
Code Division Multiple Access (TD-SCDMA), a home-grown standard in
China. (TD-SCDMA is considered
an iteration of UMTS with a slightly different radio interface.)

CDMA2000




The
CDMA Development Group (CDG) was founded in 1993 and is comprised of
service providers, infrastructure manufactureres, device suppliers,
test equipment vendors, application developers, and content providers
that jointly define the technical requirements for the evolution of
CDMA2000 and complementary 4G systems. CDMA is a spread-spectrum
technology which means that many users can occupy the same time and
frequency allocations in a given band or space because CDMA assigns
unique codes to each communication to differentiate it from others in
the same spectrum. In other words, each conversation is digitized and then tagged with a code. The mobile phone is
then instructed to decipher only the particular tuned code and plucks the
assigned transmitted conversation.



Spread spectrum tags groups of bits from digitized speech with a unique code
assigned to a particular call on the network. Groups of bits from one cellular
call are combined in a multiplexing process with those from
other calls and are transmitted across a broader band of spectrum and
then reassembled in the right order to complete the conversation. Spreading is
achieved by applying a noise code (also called a chip code) to the data
bits, by increasing the overall data rate, and by expanding the amount of bandwidth
used. Since each call is tagged with a unique code, a specific conversation
can be identified when the spread-spectrum signal is recombined at the receiving
end. For the spread-spectrum system to operate effectively, the receiver must
acquire the correct phase position of the incoming signal. Acquisition is
accomplished by a search of as many phase positions as necessary until one is
found that results in a large correlation between the phase of the incoming
signal and the phase of the locally generated spreading sequence at the
receiver. The receiver also must continually track that phase position so that
lock loss will not occur. The processes of acquisition and tracking are
performed by the synchronization subsystem of the receiver.

CDMA2000
3G builds on 2G technology and introduces enhancements, such as
Orthogonal Frequency Division Multiplexing (OFDM), advanced control and
signaling mechanisms, improved interference management, end-to-end
Quality of Service (QoS), and new antenna techniques–Multiple Inputs
Multiple Outputs (MIMO) and beamforming. Currently, CDMA2000 includes
CDMA2000 1X and CDMA2000 EV-DO standards. CDMA2000 1X supports
high-speed data up to 153 Kbps both up and downlink, whereas EV-DO can
deliver peak data rates beyond 3 Mbps in a mobile
environment.  

W-CDMA/UMTS


W-CDMA
is the air interface for one of the ITU’s family of 3G mobile
communications systems and was developed by the global GSM community as
its chosen path for 3G evolution. GSM networks were designed from the
beginning to be an international digital cellular service. Since it is
based on
digital technology, GSM allows synchronous and asynchronous data to be
transported as a bearer service to or from an Integrated Services Digital Network (ISDN) terminal. Data
can use either the transparent service, which has a fixed delay but no
guarantee
of data integrity, or a non-transparent service, which guarantees data
integrity
through an Automatic Repeat Request (ARQ) mechanism, but with variable
delay.
Supplementary services are provided on top of teleservices or bearer
services,
including such features as caller identification, call forwarding, call
waiting,
and multi-party conversations. There is also a lockout feature, which
prevents
the dialing of certain types of calls, such as international calls. GSM
uses a combination of Time- and Frequency-Division Multiple Access
(TDMA/FDMA)
to divide bandwidth among as many users as possible. FDMA
involves dividing the frequency of the total 25-MHz bandwidth into 124
carrier frequencies of 200-KHz bandwidth. One or more carrier
frequencies are
then assigned to each base station, with each of these carrier
frequencies divided in
time using a TDMA scheme, into eight time slots. One time slot
is used for transmission by the mobile device and one for reception;
they are
separated in time so that the mobile unit does not receive and transmit
simultaneously. Within the framework of TDMA, two types of channels are provided–traffic
channels and control channels. Traffic channels carry voice and data between
users, while the control channels carry information that is used by the network
for supervision and management.  

W-CDMA
enables the continued support of voice, text, and multimedia services,
in addition to richer mobile multimedia, such as music, TV and video,
entertainment, and Internet access. Speeds for 3G W-CDMA theoretically hit
7.2 Mbps, though considerably less in practice. 

TD-SCDMA

The
TD-SCDMA Forum was established in 2000 by China Mobile, China Telecom,
China Unicom, Datang, Huawer, Motorola, Nortel, and Siemens, and
re-named TD Forum in 2009. It was admitted by the 3GPP in 2005. It now
has over 400 members from more than 30 countries covering the entire
value chain. The TD-SCDMA technology itself is based on
spread-spectrum CDMA technology and can dynamically adjust the number of timeslots used for uplink and downlink. In
addition, the Chinese government is very supportive of its build-out plans. TD-SCDMA does not appear to have a market outside
China. It was first
implemented in 2009 by China Mobile; already the largest
market in the world, China’s mobile penetration leaves plenty of room
for growth. However,
connection speeds for China Mobile’s TD-SCDMA 3G network lag those of
China Unicom which are up to eight times faster. 

Current
View


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Currently,
there are more than 336 commercial operators in 123
countries/territories using some form of CDMA2000 3G to provide
service to almost 575 million subscribers, with over 162 million using
CDMA2000 1xEV-DO specifically.
Global W-CDMA
subscriptions (including HSPA) are approaching 950 million, with 300 million
being W-CDMA. China
Mobile has 600 million subscribers, but only 20 million are using
TD-SCDMA. In other words, the subscriber base varies, depending on how
it is sliced, although CDMA2000 technology seems to have the lead as
far as 3G subscribers in general goes. (It currently accounts for 45% of the 3G market worldwide, according to the CDG.) The reality is somewhat difficult to determine because of the many variants along
the 3G migration paths. 

More
granularly, the CDG statistics show that there are 324 commercial
CDMA2000 1X networks, 122 commercial 1xEV-DO Rel. 0 networks, 138
commercial 1xEV-DO Rev. A networks, 9 commercial 1xEV-DO Rev. B networks, with 2,966 devices introduced to the market.
Wireless Intelligence shows 390 W-CDMA networks, 373 HSPA networks, 125
HSPA+ networks, 29 UMTS900 networks, and 36 LTE networks, all included
as some form of W-CDMA. In other words, W-CDMA has the lead as far as
networks go. (TD-SCDMA has only one operator, China Mobile.)

Outlook


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According to the CDG, CDMA2000 serves a diverse set of needs across developed and emerging markets. It is the most
widely used 3G technology in rapidly expanding emerging markets, with
more than 263 operators in over 112 countries worldwide, including
China, India, Nigeria, and Russia, and it is a leading 3G solution in
advanced mobile markets, such as the US, Japan, and South Korea. In
addition, the CDG predicts that CDMA2000 will accumulate up to 711 million subscribers by 2015. Speeds are on the increase, too. EV-DO data throughputs and capacity will increase by a
factor of four with the implementation of EV-DO Rev. B and DO Advanced,
both on the roadmap for the 2012-2013 timeframe. Since CDMA2000
technologies interoperate and coexist with OFDM technologies (such as
802.11n and LTE), they plan to be around in both developed and emerging
markets for the next decade. CDMA2000 will thus remain a leading “core” platform to deliver 4G mobile broadband services.

W-CDMA has a bright
future as well. In India alone, the number of 3G subscribers is
forecast to triple to 400 million by 2015, with W-CDMA accounting for
80% or 320 million of these connections. Moreover, 100% of W-CDMA
operators have launched HSPA, with LTE clearly being the industry
direction for this technology. Forecasts suggest that nearly 2.5
billion W-CDMA subscribers (including HSPA) will be achieved by
2015–this figure blows away the CDMA2000 forecasts.

The
outlook for TD-SCDMA is not so bright by comparison. China Mobile holds
only 44% of China’s combined total of 61.9 million 3G subscribers–and
not all of its subscribers use TD-SCDMA. To remain competitive and
increase its leadership, China Mobile is looking to TD-LTE for its 4G
evolutionary path. If the company can complete its 4G network in the
next couple of years, then it might be able to recall its 2G glory days
when it had 70% of the country’s mobile users.

Since
4G is very much still in the process of rolling out, creating an
ecosystem, and building a market, 3G’s outlook seems secure for the
present. 
“Real” 4G, according to the
purists and ITU’s original prescription, should actually deliver 1 Gbps down and 100 Mbps up while
mobile–and not just in theory. These figures have not yet been hit in
practice. At the end of 2010, Sprint’s
4G services covered 71 US markets and will perhaps reach 130 million
people (POPs) by the end of 2011. As far as 4G subscribers, Sprint had
around 2.4 million at the start of 2011. Verizon launched 4G in 38 markets
and more than 60 airports in December 2010, covering more than 110
million Americans (POPs), with plans to expand to an additional 140 markets in 2011 and
cover its entire 3G network footprint (290 million POPs) by the end of
2013. T-Mobile says it has
America’s largest 4G network and covers over 100 major metropolitan
areas and up to 200 million people (POPs). AT&T’s 4G launch is slated for 2H
2011. The key is the number of 4G subscribers; 3G rules in this regard and will for some time to come.

Recommendations

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3G
technologies and the networks that are based on them are proven at this
point. Much as 2G became a commodity service, 3G is ubiquitous and
transparent to users, and it has become a household name. Real 4G will
offer speeds up to 10 times faster than 3G, but the need for this kind
of speed is just not here yet. Moreover, compared to 3G devices, 4G
devices are sparse. 
4G is also more expensive than 3G, and cost-conscious consumers will
ensure that suffficient coverage is available before outlaying cash on
devices and multi-year contracts. Right now, the coverage is just not
all there. Moreover, data-capped plans will not whet the appetite of
users content with 3G speeds and prices.

Thus, 3G’s outlook is
secure, and usage will continue to grow worldwide. Moreover, since most
3G roads (CDMA2000, W-CDMA, and TD-SCDMA) seem to lead to LTE, the 3G
technologies are viable now and future-proofed for later. When deciding
on a 3G technology now, coverage, availability, and price will be the
differentiators. All 3G standards have technology offerings in China,
but TD-SCDMA clearly will not be a worldwide standard or player in the
global market. CDMA2000 and W-CDMA, on the other hand, compete and win
on various points, such as number of subscribers, operators, devices,
etc., and clearly the global market can support both standards. Since
these technologies will converge on LTE, the 3G race to 4G has the same
finish line. How they get there may be moot.

Web Links

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CDMA Development Group: http://www.cdg.org/
GSM World: http://www.gsmworld.com/

ITU: http://www.itu.ch/

TD-SCDMA Forum: http://www.tdscdma-forum.org/EN/

Third-Generation Partnership Project: http://www.3gpp.org/

UMTS Forum: http://www.umts-forum.org/

About the Author

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Kathi Vosevich, Ph.D., Senior Telecom Analyst for
Faulkner Information Services, is President and CEO of The Dufallu Group, a consulting company that
provides professional research/writing and strategic marketing services.
Formerly, she was the senior manager of strategic communications for Sprint
Global Standards, where she was responsible for messaging related to the
networks. Previous to that, she was on the Office Update team at Microsoft and
Head of Documentation at Titan Client/Server Technologies.

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