Qualcomm Inc (QCOM)

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MAKING WAY FOR NEXT-GEN MOBILE
Wednesday 14 September 2005
Thailand's mobile phone operators are preparing for multimedia 'third-generation' services

http://www.bangkokpost.com/Database/14Sep2005_data51.php

AIS recently introduced an m-payment service, where new mobile phones embedded with a wireless chip can be used to pay for items at vending machines.

A phone user links to a mobile games site by taking a picture of a 2D barcode printed on the game poster. Such services are expected to be common with 3G networks.
The next generation of mobile services, so called 3G, is making its mark in many parts of the world, and while Thailand is slow to join the new generation it is making preparations.

All five mobile phone operators here _ market leader AIS with 15 million subscribers, DTAC (7.8 million ), Orange/True (3.4 million), Hutch (700,000) and Thai Mobile (around 100,000 users) _ have plans to upgrade their networks to deliver 3G services once the National Telecommunications Commission (NTC) prepares 3G licences, which is expected around December this year.

Once 3G does arrive, expect new services such as video calling, interactive games with rich multimedia and even the ability to watch TV programmes via your mobile phone screen.

Such services are possible because third generation mobile networks will be able to, theoretically, offer data speeds of up to 2Mbps, although in reality this may be somewhat slower. So to download, say, an MP3 song via a 3G network would take only seconds rather than minutes, as is the case with today's network technology.

South Korea's SK Telecom, which introduced 3G services to its 19 million subscribers at the end of 2003, said the faster networks could deliver new digital "lifestyle" and interactive services to mobile users, such as video calls, virtual home environments, video-on-demand and high-resolution mobile games.

The company already offers video calls and music downloads based on a monthly subscription fee, with the service gaining some two million subscribers. It also provides an interactive digital broadcasting service, where users can download their favourite entertainment programmes or watch digital TV at a time of their choosing.



Infrastructure for 3G network


A model shows the latest Nokia N90 3G phone, which supports WCDMA technology. The phone has a 2-megapixel camera with 20-times zoom lens and photo sharing features.
When it comes to infrastructure, the current GSM operators (AIS, DTAC, Orange) will upgrade to a technology called W-CDMA (Wideband Code-Division Multiple Access), while Hutchison CAT Wireless Multimedia, the country's only CDMA 2000 operator, will upgrade to the CDMA 2000 1x EV-DO standard, which it introduced for testing towards the end of last year.

CAT Telecom, which has a 26% share of Hutch, also has its own 3G plans for some provincial areas. It has hired Huawei Technology of China to build 1,600 base stations for CDMA 2000 1xEV-DO in 51 provinces, with an investment of 7.2 billion baht.

CAT Telecom senior executive vice president Sompol Chanprasert claimed that the enhanced network could provide data speeds of up to 3.1Mbps and that it would be the first nationwide 3G network here.

He said it would support voice over IP, video phones and various multimedia and entertainment applications.

"The operation will begin in January next year," he added.

Meanwhile the other government-owned operator, TOT's ThaiMobile, claims that it is the only operator currently with a 3G licence.

Dr Jesada Sivaraks, a spokesperson for Thai Mobile, said the investment for the next generation mobile phone network could be as high as 10 billion baht.

As a result, he suggested that all GSM operators should share the cost of the investment for cell sites, radio access and core networking equipment.

Thai Mobile is a joint venture between TOT Corp (58%) and CAT Telecom (42%). The company was set up in 2000 after the government approved its use of the necessary 1900 MHz radio spectrum, and began operating in 2002.

"Although we are not a market leader, we want to be a technology leader," Dr Jesada noted.

TOT said its mission was to provide a 3G network and that it had already imported some equipment for the purpose and was waiting for a green light from NTC to proceed.

However, NTC may yet halt the implementation plans of Thai Mobile.

NTC deputy secretary-general Tossaporn Ketadisorn said NTC was considering taking back the 3G licence.

He said NTC gave the licence to TOT Corp and CAT Telecom, not Thai Mobile, which he claimed did not have the right to operate 3G services yet.

The NTC is expected to prepare guidelines for operators to submit their requests for 3G licences in December, although the issue is not high on its agenda.

"3G is not yet our priority today," he said, noting that the NTC would rather consider ways to force mobile operators to share their networking resources for 3G.

However, AIS vice president for technology management, Kriengsak Wanichnatee, suggested that NTC did not need to issue regulations concerning network sharing.

"Sharing assets can drive our network costs down so we have agreed with ThaiMobile to co-operate in any investment," he said. "The NTC should rather consider allocating spectrum for 3G, which will be good for every operator," he added.



Spectrum needed


Nokia's N91 mobile phone with 4GB hard disk _ enough space for storing up to 3,000 MP3 songs. It supports 3G technology and will be available here soon.
Meanwhile Qualcomm, the US company behind the CDMA standard, said that the common frequency band used around the world for 3G was 2.1GHz. Qualcomm country manager Kaneungjit Suriyathumrongkul said Thailand should also follow this because it will lead to economies of scale for equipment and handsets.

"Although any frequency can be allocated for 3G networks here, we should follow the global market," she said.

She also suggested that CDMA operators such as Hutch that are using different technology to the GSM operators had an advantage, as their networks can be more easily upgraded to allow for higher speeds.

The Qualcomm country manager said that so-called CDMA 2000 1xEV-DO technology could be upgraded to allow for data speeds of up to 46Mbps, which she said would be introduced by around 2008.

Meanwhile GSM operators that are considering W-CDMA also have an upgrade path to higher speeds. So called HSDPA (high speed downlink packet access) offers download speeds of up to 14 Mbps and could be available within the next two years.

But Ms Kaneungjit said the EV-DO CDMA from Qualcomm would continue to hold the advantage in terms of network scalability and new multimedia services.



Future coverage

In the meantime, Thai operators are mixed in their opinion on the potential of 3G services here.

True president Supachai Chearavanont said 3G would be a "must", but he added that the service would be offered only in the big cities.

"It is not expected for everyone because the network is still voice-based and there is no advantage in many cases over 2G today," he said, noting that in theory, the next generation network can support up to 2Mbps, but in reality the networks would offer a maximum speed of only around 300kbps.

He said that there is already talk of so-called 4G networks, which would offer true high-speed service.

He claimed NTT DoCoMo in Japan was already moving to 4G and that would be the real change in mobile data transmission for users. In May, NTT DoCoMo did a field trial of 4G technology and achieved 1Gbps real-time packet transmissions on the downlink when moving at 20 kilometers per hour.

Meanwhile Ucom, which owns the DTAC mobile network, is more likely to take a "wait-and-see" approach to 3G. Chairman Boonchai Bencharongkul said in this case the group preferred to be a follower.

"We learned from our lessons of being a leader and getting huge losses many times," the chairman said, pointing to the one billion baht it lost on the Phone Point project, another one billion baht from Iridium satellite mobile service and 10 billion baht lost on the Direct2Home broadcasting service.

"We want to focus on services that utilise the existing network today rather than rush into an investment in a new network," Boonchai said.

In his opinion, the NTC was right and either TOT or CAT Telecom should invest in a 3G network and let other operators rent or share this network infrastructure.