Limitations in W-CDMA based 3 G mobile business.

Limitations of W-CDMA based 3 G Mobile business. 

1)  With W-CDMA based 3G, as the data speed increases the coverage area of the cell become smaller and smaller.  For data rates of 2 Mbps and above, a  W-CDMA cell can cover only an area of 10 meter radius ie. about 300 sq. meters. Therefore, to provide 2Mbps data connectivity to an Air port terminal of say, 600 meter square (360,000 Sq.Mtr.), there should be 1200 W-CDMA cells.

It is impossible to connect these by wireless links in cellular technology and therefore, will have to use Optical Fiber cable connectivity / PON up to the Cell terminal.  In this situation the wireless portion of the network is limited to about 10 to 20 meter of the end link. 

2) Another important aspect is that as far as mobility is concerned; with increase in data rate,  the workable speed of movement of user terminal also become lesser and lesser. For 2Mbps and above, the speed of movement will be limited to as low as 10 meters /second, ie. a vehicle moving at 36 K.M per hour. Intricacy of 'hand over' at every 20 to 25 meters is innumerable.

3) The success of any business comes from the volume its products can generate. Volume can be built only when the product is available, accessible and affordable to community who are interested in such products.

The cost of providing wide spread network availability, is going to be enormous which will reflect in the cost of use and in turn in low volume of users. 

Business volume will be generated only if there is large user base using high revenue earning products. Corperates and business community will be interested in Stocks and shares, and short video chats while on the move.  Stocks & Shares trading do not require very high data rate. Other products the corporate and business community are interested in their mobile terminal would be comparatively low value products and the customer volume also will be limited.

The bulk user who are from medium and low income group will  look for products needed for  real time streaming of Video games, Movies and Video conferencing and sending and receiving Videos + Audio etc. 

The users interest can be converted to business volume only if the products are given at affordable cost which is not going to be the case in these current W-CDMA 3G products due to higher CAPEX and OPEX. With the high investment in W-CDMA 3G systems and Networks, and cost of 3G spectrum added to it, it would be difficult to make the 3G business viable.

Most of these features and products could be made available at much cheaper rates via the landline links using Optical Fiber /PON to Home Networks and WiFi and Wimax for the end links for mobility in the premises.  

Another important aspect is that with as the rate increases, the distinguishing factors beteen Fixed and Mobile data networks vanishes limiting these to the type of end link and typer of end user device.   

In the land line part, data links using MPLS technology is evolving as most viable technology for Fixed Line high speed Internet,  3G in its present form will find big competition in the days to come..

Author: Abraham Paul; MD/CEO FCOMNET U.A.E & FUTURE GROUPS,  India.

Ex: V.P. Technical Sales, SIEMENS SPCNL India / Director SIEMENS ICN RHQ , U.A.E,  G.M. BPL Mobile Networks, India, Telecom Engg. Service DOT, India.