The cellular market has become highly competitive today. And cellular operators have no option but to build a carrier-class multimedia cellular network and to introduce new services such as wideband real-time multimedia services, high-speed packet data services including browsing of Internet/intranet, and information delivery (news, weather, traffic, finance) via push techniques.

All these put a tremendous pressure on existing operator’s network infrastructure and expertise. This may even call for help of an experienced telecom partner/agency in order to evolve a foolproof and cost-effective network. Notwithstanding the challenges, technology choices for core network, system architectures, and terminals will significantly and sensitively impact the ability to deliver cost-effective services and success in the information society.

The Basics

There are a few basic building blocks of a Cellular Mobile Communications Systems (CMCS). These are Mobile Switching Centre (MSC), Base Station Controller (BSC), Base Stations/Cell sites, access links in various frequency bands (15 GHz/18 GHz, etc.) to interconnect cell sites to BSC, etc., NMS/OSS and long haul backbone (with or without highway coverage) for carrying bulk traffic. The above mentioned network can have a connectivity with DoT/other national and international service providers and operators. If one looks at the 3G-migration path (see Figure 1), the following basic observations can be made:

• MSC, BSC, BTS—hardware and software upgrades/capacity expansion issues.

• Access link and microwave long haul backbone upgrade/capacity expansion issues. Other techniques of capacity expansion can also be thought of.

• NMS (OSS) upgrades/enhancements.

• Compatibility with different vendor products.

• Large number of backoffice issues.

Apart from the above-mentioned upgrades/expansions, it may be necessary to replace the old hardware totally by a new one if it creates any bottleneck in the migration path. It may call for a huge investment in terms of capital investment in the basic cellular infrastructure.

GPRS: the First Step

GPRS is the first logical and significant step on the road to 3G migration. Figure 2 shows how the basic GSM building block will get enhanced (apart from having additional nodes and infrastructure) due to incorporation of GPRS.

In fact before implementing GPRS, one has to look into issues like:

• Status of GPRS testing and trials done elsewhere.

• What is holding back terminal availability, billing, IP address, etc.?

• How to partner with content providers and third party software developers.

• Quality of Service (QoS) for GPRS.

• Roaming with GPRS.

• Fraud and security applications.

Apart from hardware and software upgrades, new applications will to demand increased bandwidth requirements and this will be an ongoing process. This amounts to huge spectrum fee charges to be paid to the Government with the existing rules and guidelines available with the operators. New applications arising out of 3G-migration strategy will call for excellent signal strength conditions. Then a subscriber can execute a call, download lot of data or carry out banking transactions, etc. while on the move (e.g. in a car, train passing through a tunnel) or sitting inside a well-shielded building or even in the car basement.

Working in Phases

There will be a lot of pressure on cellular operators to look for cost-effective and good, technically viable solutions. The task is challenging but not impossible. All these requirements are very capital intensive in nature and may call for large number of innovative approaches. Right approach by the operator and supported by a good vendor can make things happen in a reasonably good time frame. If need be, advice can be taken from outside experts and some of the activities can be outsourced. Infrastructure outsourcing should be considered because the time to market will be a significant and competitive differentiator in the development of 3G networks. Outsourcing of network operation and management, site sharing of network towers and equipment can improve speed to market and also produce cost savings in many circumstances.

To support each and every step of migration path there might be a necessity (depending upon the strategy followed by a particular operator in the initial phases of the network infrastructure implementation) to invest in mediation devices, billing systems, data warehouse, call centres, etc. This is a costly preposition for an operator. If an operator gets into the race for Mergers and Acquisitions (M&A) of other cellular operators, etc., then the issues to be resolved get piled up. But M&As may be of tremendous advantage from the long-term strategic view point apart from increased customer base and excellent long-term revenue stream earnings. But one has to be aware of the fact that the acquired communication infrastructure may be from a totally different vendor and various Network Elements (NEs) may or may not be in a position to be upgraded to cater for the futuristic network requirements. Apart from this there might be NEs compatibility/inter operability issues. Actually, all this has a huge cost attached to it. Apart from this, the acquired network infrastructure should be efficient from operational, maintenance, lifecycle and support/services viewpoint. In fact, few vendors even might have discontinued the production of some of the NEs. In my view, M&As are going to be a challenging and uphill task.

In view of the above-mentioned issues, cellular operators will be interested in taking on the 3G-migration path in a phased manner. Each phase of implementation has to be a well-thought process supported from technical, commercial, and in-depth market research. It might just happen that market research may give a gloomy picture in terms of revenue streams and may suggest on staying away from executing a particular step towards migration. But strategic and competitive advantage may force an operator to go ahead with the proposed plan. It might just happen that a particular operator might be willing to launch a particular service/product in the market place but he may shy away from implementing it because it is yet to be tried out successfully and proven field-worthy elsewhere. A software bug in MSC/BSC, for example, can cause havoc. Apart from the above mentioned issues, there might be a need to overhaul sales and marketing efforts keeping in view the new types of products and services, especially applications being data-centric in nature. Back office work may be difficult to handle if a proper data warehouse is not in place. Adequate market research has to be in place supported by excellent customer care to increase revenue amidst fierce competition. Survival of the fittest (in all spheres of cellular business) will be call of the day as the number of operators increase in a particular telecom circles offering cut-throat competition.