Article re-printed with kind permission from GSM Q, June 1999 Issue 14
Very soon we will see non-voice services delivered with data throughputs substantially higher than what is possible today.
By next year many GSM networks will be working at data rates exceeding those of fixed ISDN. With this comes the possibility
for customers to access content on the move, much of it derived from the Internet. The forecasts for non-voice as a
percentage of total traffic are extremely promising; operators are anxious to tap into new revenue streams while
strengthening their customer appeal and loyalty.
Suppliers are equally keen to deliver systems and equipment to support these new capabilities, not just in infrastructure,
but also to ensure that the new terminals designed to exploit these new capabilities will be introduced into the market on
time, and in a competitive form.
The standards are in place and the technology is coming through. Data usage is growing strongly, and a plethora of
multimedia services is just around the corner. Our impression is that there exists considerable uncertainty about non-voice
services investment and migration strategies. The pace of activity is challenging to many, as they seek to broaden and
deepen coverage in highly competitive markets, while trying to influence or come to terms with new technological
possibilities. Operators need to solve their uncertainty by working on network evolution and market development plans, and
involving their suppliers in discussions at each stage.
There is no time to delay. A GSM operator interested in what UMTS could offer immediately has the chance to enter the
wireless data market via HSCSD or GPRS. This will provide a valuable opportunity to understand the market and the
technology, with new revenues ensuring earliest payback and minimal risk. The possibility exists for operators to further
evolve their systems to EDGE and the new W-CDMA access technology.
The message, then, is clear - encourage the application developers to come (and they will!), develop the market, decide your
positioning and prepare your market and network evolution plans, and, most importantly, start now.
Alan Hadden, president GSA
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