1. 2006 /

News Archive

Migration to WCDMA demands experience

More than 1.5 billion subscribers are connected to the GSM family, 80 percent of the global market, and its position continues to strengthen. Operators using other technologies can now easily migrate to GSM/WCDMA to benefit from the overwhelming economies of scale.

March 24, 2006

The rationale for operators migrating to GSM/WCDMA is economic: it is the most competitive way to deliver the voice and high-speed data services that will be needed to address growth in mobile broadband and mobile voice subscriptions. Last year, more than 90 percent of new subscribers signed up to a GSM/WCDMA network, giving service providers of that technology the opportunity to gain from economies of scale.

 

One of the most important factors in the dominance of GSM/WCDMA is the greater availability of handsets. Terminal variety addresses two areas that will drive future growth: new subscribers will largely come from low-ARPU segments of emerging markets where low-cost terminals are necessary; and more mature markets want higher bit rates and a lower total cost per delivered megabyte. The highest data bit rates and a greater variety of chipsets means handset suppliers for the GSM/WCDMA family provide the wide range of terminals and services that are needed by the various segments of the market.

 

Australian operator Telstra recently made the strategic decision to unify its entire network on GSM/WCDMA. John Gonner, Telstra's executive managing director, wireless, says his customers benefit by having coverage across Australia on one network. "Because 80 percent of the world has GSM coverage, our customers also gain substantial improvements on roaming when they travel,” Gonner says. With a geographic coverage spanning 1.6 million square kilometers, Telstra’s unified network is possibly the largest of its kind.

 

Ericsson leads the market in supporting operators migrating to GSM/WCDMA, including Telstra, who they helped through this process. Mike Wright, head of Wireless Engineering and Operations at Telstra, says: ”We are now able to take services such as enhanced video calling and video streaming, which we previously could only offer to our metropolitan areas, to a much larger population.”

 

According to Hans Vestberg, Executive Vice President and Head of Business Unit Global Services, Ericsson’s role as a prime integrator for many customers – taking them from one technology to the next – has contributed to the company's recent success. For operators looking to evolve their networks, Ericsson has a proven record and is a trusted partner.