27-11-2012, 06:00 PM
4G Wireless Systems
[attachment=41394]
Introduction
Consumers demand more from their technology. Whether it be a television, cellular phone,
or refrigerator, the latest technology purchase must have new features. With the advent
of the Internet, the most-wanted feature is better, faster access to information. Cellular
subscribers pay extra on top of their basic bills for such features as instant messaging, stock
quotes, and even Internet access right on their phones. But that is far from the limit of
features; manufacturers entice customers to buy new phones with photo and even video
capability. It is no longer a quantum leap to envision a time when access to all necessary
information — the power of a personal computer — sits in the palm of one’s hand. To
support such a powerful system, we need pervasive, high-speed wireless connectivity.
A number of technologies currently exist to provide users with high-speed digital wireless
connectivity; Bluetooth and 802.11 are examples. These two standards provide very highspeed
network connections over short distances, typically in the tens of meters. Meanwhile,
cellular providers seek to increase speed on their long-range wireless networks. The goal
is the same: long-range, high-speed wireless, which for the purposes of this report will be
called 4G, for fourth-generation wireless system. Such a system does not yet exist, nor will
it exist in today’s market without standardization. Fourth-generation wireless needs to be
standardized throughout the United States due to its enticing advantages to both users and
providers.
Economic Impact
Advantages of 4G
In a fourth-generation wireless system, cellular providers have the opportunity to offer data
access to a wide variety of devices. The cellular network would become a data network on
which cellular phones could operate — as well as any other data device. Sending data over
the cell phone network is a lucrative business. In the information age, access to data is the
“killer app” that drives the market. The most telling example is growth of the Internet over
the last 10 years. Wireless networks provide a unique twist to this product: mobility. This
concept is already beginning a revolution in wireless networking, with instant access to the
Internet from anywhere.
Problems with the Current System
One may then wonder why ubiquitous, high-speed wireless is not already available. After
all, wireless providers are already moving in the direction of expanding the bandwidth of
their cellular networks. Almost all of the major cell phone networks already provide data
services beyond that offered in standard cell phones, as illustrated in Table 1.
Unfortunately, the current cellular network does not have the available bandwidth necessary
to handle data services well. Not only is data transfer slow — at the speed of analog
modems — but the bandwidth that is available is not allocated efficiently for data. Data
transfer tends to come in bursts rather than in the constant stream of voice data. Cellular
providers are continuing to upgrade their networks in order to meet this higher demand by
4G Wireless Systems
Barriers to Progress
This begs the question: Why are cellular providers not moving to 4G instead of 3G? A
marketplace like the cellular industry can be modeled as a game, as seen in Table 2.
There are three basic paths the game can take:
Nobody makes the conversion to 4G All end up upgrading to 2.5G and 3G services.
The upgrades are incremental, and don’t require a complete reworking of the system,
so they are fairly cheap — the equipment required is already developed and in mass
production in other places in the world.
Everyone makes the conversion to 4G The equipment and technology needed for 4G
will be cheap, because of all of the cellular manufacturers investing in it. Cellular
providers will market additional services to its customers.
Some of the players make the conversion to 4G Because not all of the players have
chosen 4G, the equipment will be more expensive than the second scenario. Even
though converters will be able to sell more services to their customers, it will not be
enough to cover the higher costs of converting to 4G.
[attachment=41394]
Introduction
Consumers demand more from their technology. Whether it be a television, cellular phone,
or refrigerator, the latest technology purchase must have new features. With the advent
of the Internet, the most-wanted feature is better, faster access to information. Cellular
subscribers pay extra on top of their basic bills for such features as instant messaging, stock
quotes, and even Internet access right on their phones. But that is far from the limit of
features; manufacturers entice customers to buy new phones with photo and even video
capability. It is no longer a quantum leap to envision a time when access to all necessary
information — the power of a personal computer — sits in the palm of one’s hand. To
support such a powerful system, we need pervasive, high-speed wireless connectivity.
A number of technologies currently exist to provide users with high-speed digital wireless
connectivity; Bluetooth and 802.11 are examples. These two standards provide very highspeed
network connections over short distances, typically in the tens of meters. Meanwhile,
cellular providers seek to increase speed on their long-range wireless networks. The goal
is the same: long-range, high-speed wireless, which for the purposes of this report will be
called 4G, for fourth-generation wireless system. Such a system does not yet exist, nor will
it exist in today’s market without standardization. Fourth-generation wireless needs to be
standardized throughout the United States due to its enticing advantages to both users and
providers.
Economic Impact
Advantages of 4G
In a fourth-generation wireless system, cellular providers have the opportunity to offer data
access to a wide variety of devices. The cellular network would become a data network on
which cellular phones could operate — as well as any other data device. Sending data over
the cell phone network is a lucrative business. In the information age, access to data is the
“killer app” that drives the market. The most telling example is growth of the Internet over
the last 10 years. Wireless networks provide a unique twist to this product: mobility. This
concept is already beginning a revolution in wireless networking, with instant access to the
Internet from anywhere.
Problems with the Current System
One may then wonder why ubiquitous, high-speed wireless is not already available. After
all, wireless providers are already moving in the direction of expanding the bandwidth of
their cellular networks. Almost all of the major cell phone networks already provide data
services beyond that offered in standard cell phones, as illustrated in Table 1.
Unfortunately, the current cellular network does not have the available bandwidth necessary
to handle data services well. Not only is data transfer slow — at the speed of analog
modems — but the bandwidth that is available is not allocated efficiently for data. Data
transfer tends to come in bursts rather than in the constant stream of voice data. Cellular
providers are continuing to upgrade their networks in order to meet this higher demand by
4G Wireless Systems
Barriers to Progress
This begs the question: Why are cellular providers not moving to 4G instead of 3G? A
marketplace like the cellular industry can be modeled as a game, as seen in Table 2.
There are three basic paths the game can take:
Nobody makes the conversion to 4G All end up upgrading to 2.5G and 3G services.
The upgrades are incremental, and don’t require a complete reworking of the system,
so they are fairly cheap — the equipment required is already developed and in mass
production in other places in the world.
Everyone makes the conversion to 4G The equipment and technology needed for 4G
will be cheap, because of all of the cellular manufacturers investing in it. Cellular
providers will market additional services to its customers.
Some of the players make the conversion to 4G Because not all of the players have
chosen 4G, the equipment will be more expensive than the second scenario. Even
though converters will be able to sell more services to their customers, it will not be
enough to cover the higher costs of converting to 4G.