No one could define clearly what is 4G. LTE may be 4G, but if you speak
with WiMAX folks they say that they are 4G too. These are lobbies and
they keep influencing government to sell their own tech. 

Subramani 



-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Rahul
Gambhir
Sent: Thursday, February 25, 2010 9:25 PM
To: [email protected]
Subject: [AI] Leapfrog to 4G?


Should the Indian telecom sector skip 3G, being years behind anyway, and
go
directly for 4G technologies? It's a tempting call but there are hurdles
too..  







Bijoy Ghosh 
 
To take it one at a time ....or not. 

Thomas K Thomas

Back in the mid-1990s, when mobile services were launched in India -
more
than 10 years after the first generation (1G) cellular network was
rolled
out by NTT in Japan - cellular operators here had leapfrogged
technology.
Indian mobile service providers had straightaway launched a network that
was
based on second generation (2G) technology i.e. GSM standard; altogether
skipping first generation technologies such as Total Access
Communication
Systems, Advanced Mobile Phone System and C-Nets deployed then by
various
operators in Japan, the US and Europe.

Fifteen years hence, in 2010, Indian cellular operators are facing the
same
question yet again. Should they leapfrog from the existing 2G network to
fourth generation (4G) technology and give third generation (3G) a skip?

There are various 4G technologies that are being developed and adopted
globally. But the most widely talked about is called the Long-Term
Evolution
(LTE) as some operators in Europe and the US have already started
commercial
deployment on this platform.

LTE allows more data to be transferred over the same bandwidth used by
3G
technology and at higher speeds. Compared with the 3 Mbps speed offered
by
third-generation services, LTE can offer speeds of up to 10 Mbps. As a
result, service providers should be able to get more data transfer out
of
their network and possibly lower the cost to run their networks. LTE
allows
operators to introduce exciting services such as HD (high-definition)
video
blogging, HD video on demand, media mobility, online gaming. It brings a
significantly improved business proposition with 2.5 times higher
capacity,
lower cost per bit and media mobility.

Add to this the fact that India is already nine years behind other
countries
when it comes to introducing 3G technology. While operators such as
Vodafone, NTT DoCoMo and AT&T have been offering 3G services in Europe,
Japan and the US, in India the operators are still on plain old GSM
network.
The delay has been primarily due to the fact that the Indian Government
has
already taken four years to discuss and debate various aspects of
auctioning
3G spectrum and still there is no finality.

3G bus missed?

All this makes analysts believe that India may have missed the 3G bus
and
therefore should move to 4G in order to catch up with the rest of the
telecom world. "Indian operators could look at moving straight to
fourth-generation technologies, considering the timing and the current
revenue potential. Why should Indian operators invest in a technology
when
they are unsure of the timing and the revenue potential? The current
data
needs can be taken care through existing 2G and EDGE technologies and
therefore depending on the timing and the business model, Indian
operators
could move to 4G directly," says Marc Chaya, Global Telecommunications
Markets Leader, Ernst & Young.

The Telecom Regulatory Authority of India has also shown interest in
putting
together the policy framework for introducing 4G services. "A number of
countries including Sweden, Norway, the US, Korea and Japan are moving
towards 4G services and therefore India should also be prepared for
introducing the technology at the earliest," says the regulator, which
has
floated a pre-consultation paper seeking the views of the industry.

The TRAI move is being backed by mobile operators including Tata
Teleservices and Reliance Communications. "About 23 operators will be
launching 4G globally this year. 3G was launched in 2001 and we are
already
nine years behind. It should not happen that we are left behind in
adopting
4G technology," says Anil Sardana, Managing Director, Tata Teleservices.
Japan's NTT DoCoMo, which has a stake in Tata Teleservices, is
conducting
trials on LTE in Tokyo and therefore ideally positioned to back the
Indian
company if it decides to deploy 4G technology.

Even new mobile players such as Telenor, which are rolling out their 2G
network, see value in skipping 3G, albeit for a different reason. These
players are investing heavily in setting up their new network and may
not be
in a position to immediately spend more money to buy 3G spectrum in an
auction. "Only two-three operators will get 3G spectrum so the others
can
move to 4G. Even if the Government allocates 3G spectrum by September
2010,
operators will not be in a position to launch the services before mid-
2011.
By that time LTE will be commercially available for operators to deploy.
Since even 3G players will ultimately move to LTE, we are looking at
moving
straight to 4G technology in a year's time," says a Delhi-based operator
that recently launched its GSM services.

Hurdles in the way

However, leapfrogging to 4G may not be all that easy as there are a
number
of stumbling blocks. For one, there is the eternal problem of finding
adequate spectrum. Existing versions of 4G technologies such as LTE need
more bandwidth to support the high-speed data services. "LTE will
require at
least 2x 20 MHz per operator to meet the need for high bandwidth
services.
In India it will be very difficult to find spectrum, that too such big
chunks. Hence, the issue is more of spectrum consultation than of a
technology debate," says a technology consultant backing 3G technology.

There is still no clarity on the spectrum band that is best suited for
4G as
the US and Europe are using different frequency bands. There is no
synergy
between the frequency bands being used elsewhere and India because these
bands have already been given to other local users. Synergy in frequency
band is important to keep the cost of the devices and the network low.
If 4G
services are offered in different bands across the globe then
multiple-band
handsets will come at a premium. In comparison, 3G air waves have been
synergised globally in the 2.1 Ghz band which enables vendors to supply
handsets at less than $100.

Even if the policy makers push for opening up of new bands such as 700
MHz,
this might turn out to be a lengthy process, similar to what happened in
the
case of 3G. "It has taken the Government more than three years to figure
out
spectrum for 3G services in 2.1 Ghz. So what is the guarantee that 4G
will
not meet the same fate? It's okay to talk about leapfrogging to 4G but
it
may not be practical," says an existing mobile player.

The other major issue is that 4G standards are still being evolved
globally.
The International telecommunication Union, the global body which
stipulates
standards for communication technologies, is yet to release the
specifications for true 4G technology called LTE Advanced. Operators
such as
AT&T are still investing in upgrading their 3G networks and have
scheduled
commercial launch of LTE only in 2011.

"Operators in India will have to make a choice on whether to leapfrog or
not, taking into consideration their business model and costs involved
for
consumers. 3G technology has been around for nine years and has a mature
ecosystem to enable cheaper devices and network. 4G, on the other hand,
is
something that will definitely happen in the future, but not today,"
says a
market analyst.

Just like in the case of 1G mobile services, the first 3G network was
also
deployed by Japan's NTT.

Will the Indian operators repeat history and leapfrog a technology first
rolled out by the Japanese? This time the stakes are higher.

http://www.thehindubusinessline.com/ew/2010/02/22/stories/20100222500401
00.h
tm

Thanks
Rahul Gambhir 




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