1

Mobile Services

• Cellular networks

• Spectrum

• The structure of the industry

• Second & third generation networks

• Handhelds

• M-Commerce

2

Pre-cellular Mobile Service

3

1984Cellular Service

2 Carriers/market

1994 PCS AuctionsEntry of Competitors

AT&T WirelessSprint, T-Mobile predecessors

Late 1990sConsolidation & Growth

Sprint Nextel, AT&T/CingularVerizon Wireless/Vodafone

Wireless MilestonesIn the U.S.

4

Cellular’s Additional Capacity

5

Spectrum

• What is it?

• Wavelength

• Allocation– Licensed– Unlicensed

• Harmonization

6

Connections Between Mobile & Landline Networks

7

2nd Generation Wireless Services

TDMA GSM CDMA Frequency

PCS X X X 1.7 GHz*1.8 GHz*1.9 GHz* USA

AMPSAnalog

824 to 849 MHz**869 to 894 MHz

DigitalService

X X X 824 to 849 MHz**869 to 894 MHz

Nextel X800-900 Mhz**

8

SS7 & Registers - Tracking Users

9

Third Generation Cellular

• WCDMA– GSM & TDMA– Evolution via:

• GPRS (General Packet radio services)• EDGE (Enhanced data rates for GSM)• HSDPA (High speed uplink packet access)

• CDMA2000– 1x– 1xEV-DO– Rev A

10

U.S. Carriers

• GSM evolving to WCDMA– Cingular Wireless

– T-Mobile

• CDMA2000 1X & EV-DO– Verizon Wireless

– Sprint Nextel• iDEN

• Trialing WiMAX

11

Third generation network architecture - 3GPPfor WCDMA

12

Nextel’s Nationwide Push-to-talk Service

13

What Issues are Carriers Facing?

• $$$

• Roaming

• Capacity

• Billing

• New Applications

14

What do Customers Want?

• Voice– Quality– Pricing– Coverage

• Features

• Data

• Video

15

Third GenerationEconomics

New Handsets Denser base station coverage $$$ for licenses Will companies pay for high-speed data? Will consumers?

16

Figure 8.6Kodiak push-to-talk between cellular networks. Figure courtesy of Kodiak Networks.

17

Handhelds

• Triple mode– WCDMA

– GSM

– GPRS

• Multi-band– 800 megahertz (MHz)

– 1.8 gigahertz (GHz)

18

Handheld Capabilities

• Ring tones• Cameras• Video & games• Battery life• Differentiators• Subsidies

19

Advanced Applications & M-commerce

• Pay by phone

• Multi-media

• Internet access

• Remote Access to Enterprise applications

• Challenges– Spam– Security

20

Mobile Services Summary

• The Significance of cellular service

• Differences between 2nd & 3rd Generation Service

• Impact of governments’ spectrum policies

• Handhelds & user experiences