Every month, 25 million new subscribers connect to a GSM network, yet there are still several billion people living within GSM coverage areas who have no mobile subscription. What’s more, there is significant growth in voice traffic among existing subscribers.
How can mobile operators complement their 3G strategies to gain the radio network capacity they need in GSM service areas to serve the growing numbers of subscribers, and their higher levels of usage, cost-effectively ... and profitably?
GSM networks already serve over one billion users in more than 200 countries worldwide, and are anticipated to pass the two billion mark some time in 2008. GSM traffic growth for 2005 is expected to match the entire traffic volume for 2001. In many markets, fixed-to-mobile substitution is gathering pace, driven by a lack of fixed lines and the incentive of attractive mobile pricing models with flat rates and 'bucket' plans.
Worldwide, the volume of mobile voice traffic is expected to grow from its current level of just over 2.6 tera-minutes to more than 10 tera-minutes annually over the next five years. This increase in voice traffic will come both from new additions as well as from existing subscribers.
Today's global average monthly usage is 200 Minutes of Use (MoU). In markets such as the USA and parts of south-east Asia, where intense competition has driven the creation of highly attractive mobile pricing models, usage has soared to 800 MoU. Operators who have achieved such usage figures are highly profitable - demonstrating that, with the right approach, network expansion and capacity growth can be a very rewarding strategy.
Therefore, as mobile operators roll out their 3G networks, it makes sense for them to ensure they are making maximum use of their existing investments in GSM.
Traditionally, mobile operators have expanded capacity by adding more radio base station (RBS) sites - entailing additional capital and operating expenditure (CAPEX and OPEX).
Now, Ericsson's new Capacity Growth solutions address GSM operators' need to generate up to 400 per cent more capacity within their existing radio networks. The new advances in software and hardware included in the Capacity Growth solutions enable GSM operators to cater for higher usage and target even low-spending users in a way that is both cost-effective and profitable, while maintaining or enhancing call quality.
There are three main scenarios addressed by the Capacity Growth program: networks with limited spectrum; networks where spectrum is plentiful; and networks where the initial requirement is for wide-area coverage.
For operators with limited spectrum - and the potential for interference problems as traffic grows - there is Frequency Load Planning (FLP). FLP contains powerful algorithms that calculate the times at which different frequencies can be used to avoid interference. This feature is particularly attractive for 'peak sites' in the network which often handle 2.5 times as much traffic than other sites - because of local factors such as planning permission and population density - and are typically capacity bottlenecks. FLP requires no new sites and provides considerable CAPEX and OPEX savings.
For operators with plenty of spectrum, Ericsson Capacity Growth offers ways to configure very large radio cells that take maximum advantage of the spectrum resource and minimize the number of sites needed. Advanced software features enable several RBSs to be synchronized, to create a very large 'virtual' RBS with up to 128 transceiver units per cell. Ericsson also offers filter-combiner solutions with a channel spacing of only 400kHz - providing a 33 per cent improvement in spectrum efficiency. Furthermore, the Ericsson Base Station Controller (BSC) can handle up to 2,048 transceivers - providing hardware efficiency and boosting hand-over performance in dual-band networks through advanced hand-over algorithms handled within the BSC.
Finally, for operators that are building for coverage today, Capacity Growth for Expander provides a way to plan for future capacity growth. Initial coverage based on Expander provides long reach with a minimal number of sites. Ericsson Capacity Growth enables future traffic expansion of more than 2,000 per cent, without the need for new sites.
These radio network enhancements are backed by comprehensive solutions for core and transmission networks, as well as a range of professional services.
GSM still represents a huge growth opportunity. With the right partner and technology solutions, the world's GSM operators can build on their existing success and deliver more voice minutes to more subscribers than ever before - while protecting quality of service and enhancing profitability.
Ericsson hosted a telebriefing on Capacity Growth in June. For further details contact
industry.analysts@ericsson.com