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 Home > V&D100 - 2005 > WCDMA: Wide Band Data on the Move
  V&D100 - 2005
WCDMA: Wide Band Data on the Move
WCDMA capacity is relatively cheap, costing less than half the price of an equal voice capacity expansion in a GSM network
Ravi Shekhar Pandey
Monday, June 13, 2005
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Wide Band Code-Division Multiple Access or WCDMA is the 3G technology that GSM operators across the world are migrating to in their quest to offer high-speed data and multimedia content or in other words, mobile broadband services. WCDMA uses CDMA air interface instead of TDMA. WCDMA is based on CDMA and is the technology used in UMTS and adopted as a standard by the ITU under the name "IMT-2000 direct spread".

Most licenses for WCDMA-based networks were awarded between 2000 and 2001. Japanese operator NTT DoCoMo launched the world's first commercial WCDMA network in 2001. However most other operators could roll out their networks in time because of both technical and financial problems. Operators faced financial problems as they had spent mind-boggling sums on buying 3G licenses. European operators alone spent more than $133 billion on licenses just before the telecommunications sector entered an era of worst downturn.

According to UMTS Forum, currently more than 60 3G/UMTS networks using WCDMA technology are operating commercially in 25 countries. The forum claims that there are over 100 terminal designs from Asian, European and US manufacturers. At the start of this year, more than 16 million people worldwide owned 3G phones based on the Wideband Code Division Multiple Access (WCDMA) standard, according to the UMTS.

As users access the download more data, the relative capital cost of WCDMA becomes more attractive

Source: Nokia

Apart from higher data rates, WCDMA can support greater number of voice and data customers. One of the major areas of concerns for operators across the world has been growing network traffic that has been affecting the quality of service leading. WCDMA can provide a much superior quality of service and take care of a number quality issues on the network thereby ensuring a superior end-to-end performance.

WCDMA offers mobile operators significant cost savings as well. Nokia claims that, depending on the coverage required the capital cost of upgrading an existing GSM/GPRS network to WCDMA is between 10 and 40 % of the initial cost of building a GSM 1800 MHz network about the same density as the WCDMA network. The vendor also claims that once the initial rollout investment has been made, building additional WCDMA capacity is relatively cheap, costing less than half the price of an equal voice capacity expansion in a GSM network.

WCDMA also promises other benefits like automatic international roaming, integral security and billing functions. Operators can migrate from 2G to 3G while retaining many of their existing back-office systems. It employs a 5 MHz channel carrier width. This 5 MHz channel carrier provides optimum use of radio resources, especially for operators who have been granted large, contiguous blocks of spectrum - typically ranging from 2x10 MHz up to 2x20 MHz - to reduce the cost of deploying 3G networks.

WCDMA offers mobile operators an opportunity to repeat the success (they had with consumers) in the enterprise domain. Apart from enhanced user experience, operators can offer high value broadband data services for businessmen on the move. Business customers usually appreciate high quality experience and ready to pay for services that add value to their business. As such, operators can take their ARPU to new levels by encouraging additional traffic, stimulating new usage patterns and strengthening customer loyalty.

Ravi Shekhar Pandey

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