The third generation (3G)
The third generation (3G) is the presently in high demand and fashion trend. It has gathered the mobile ability and high speeds of the internet with a better voice quality. The third generation (3G) allows customers to download fast big files such as movies from the internet, to make a video call and play game online.
The Chinese government has the strong support to develop their home-grown standard Time Division Synchronous Code Division Multiple Access (TD-SCDMA), they expect to build up an image of local companies and reduce payments of the mobile technology patent.
In China, equipment companies has rocketed in the telecommunication market, such as Nokia which has already started making mobile phones to support the home-grown third generation (3G) Time Division Synchronous Code Division Multiple Access (TD-SCDMA) technology.
However, the deployment of the Chinese third generation (3G) is attracted it will be having the future.
1. Literature Review
1.1 Definition
3G refers to the third generation of developments in wireless technology, especially mobile communication. The third generation, as its name suggests, follows the first generation (1G) and second generation (2G) in wireless communications. (Dunne, D., 2001. What is 3G technology)
1.1.1 The First Generation
The first generation (1G) period began in the late 1970s and lasted through the 1980s. These systems featured the first true mobile phone systems know at first as cellular mobile radio telephone. These networks used analog voice signalling, and were little more sophisticated than the repeater networks used by amateur radio operators. (What is 3G. Online)
1.1.2 The Second Generation
The second generation (2G) phase began in the 1990s and much of this technology is still in use. The second generation (2G) cell phone features digital voice encoding. Since its inception, the second generation (2G) technology has steadily improved, with increased bandwidth, packet routing, and the introduction of multimedia.
The second generation (2G) is the technology of most current digital mobile phones.
Features includes -Phone calls
-Voice mail
-Receive simple e-mail messages
Speed 10kbsec
Time to download a 3min MP3 song 31-41 min
(What is 3G. Online)
The second generation (2G) networks have two standards which are Global System for Mobile communications (GSM) and Time Division Multiple Address (TDMA). The Global System for Mobile communications (GSM) digital wireless standard has controlled the European market. The Global System for Mobile communications (GSM) has proven to be the great success story of mobile standards it has become the unifying standard in Europe. It is possible to use one phone throughout Western Europe. Because the number of wireless users are in Europe this has greatly strengthened Global System for Mobile communications (GSM)s position as the basis for a potential global standard.
In North America the situation is not nearly so unified. The situation is divided three ways between Global System for Mobile communications (GSM), a Time Division Multiple Address (TDMA)-based system, and a Code Division Multiple Access (CDMA) system called CDMA One. This confusion of standards has resulted in the reduced popularity of cell phones in the US. CDMA One has perhaps the strongest grip on the American market, as well as being popular in Asia.
1.1.3 The Third Generation
3G stands for the third generation of wireless communication technology. It refers to improve the wireless data and voice communications through any of a variety of proposed standards.
The third generation (3G) combines a mobile phone, laptop PC and TV.
Features includes -Phone calls fax
-Global roaming
-Sendreceive large e-mail messages
-High speed Web
-Navigationmaps
-Videoconferencing
-TV streaming
-Electronic agenda meeting remainder
Speed 144kbsec-2mbsec
(What is 3G. Online)
According to the literature, the third generation (3G) is generally considered applicable mainly to mobile wireless it is also relevant to fixed wireless and portable wireless. A third generation (3G) system should be operational from any location on, or over, the earths surface, including use in homes, businesses, government offices, medical establishments, the military, personal and commercial land vehicles, private and commercial watercraft and marine craft, private and commercial aircraft, except where passenger use restrictions apply, portable (pedestrians, hikers, cyclists, campers), and space stations and spacecraft. The third generation (3G) offers the potential to keep people connected at all times and in all places. Researchers, engineers, and marketers are faced with the challenge of accurately predicting how much technology consumers will actually be willing to pay for. Another challenge faced by the third generation (3G) services is competition from other high-speed wireless technologies, and ability to roam between different kinds of wireless networks. The third generation (3G) is a quite new technology in the world, and some countries are still doing the research and development of the third generation (3G) technology. (Lisa. P., 2007. )
The Universal Mobile Telecommunications Service (UMTS) conceived the third generation (3G) concept for high speed networks for enabling a variety of data intensive applications. The third generation (3G) systems include the two main standards which are Code Division Multiple Access 2000 (CDMA2000) and Wideband Code Division Multiple Access (W-CDMA), as well as the other third generation (3G) variants such as NTT DoCoMos Freedom of Mobile Multimedia Access (FOMA) and China developed Time Division Synchronous Code Division Multiple Access (TD-SCDMA).
Wideband Code Division Multiple Access (W-CDMA) is the radio access scheme used for third generation cellular systems that are being rolled out in various parts of the globe. The third generation (3G) systems to support wideband services like high-speed Internet access, video and high quality image transmission with the same quality as the fixed networks. In Wideband Code Division Multiple Access (W-CDMA) systems the Code Division Multiple Access (CDMA) air interface is combined with the Global System for Mobile communications (GSM) based networks. The Wideband Code Division Multiple Access (W-CDMA) standard was evolved through the Third Generation Partnership Project (3GPP) which aims to ensure interoperability between different the third generation (3G) networks.
Code Division Multiple Access 2000 (CDMA2000) is a third-generation (3G) wireless technology that is evolved from existing CDMA 2G technology. Its main features are faster data rates, always-on data service, and improved voice network capacity (more people can use each tower at the same time.
1.1.4 Why do we need 3G systems Do we really need them Could we do without them
One much-quoted reason given to justify 3G is the lack of available channels in current 2G systems especially in urban areas, the capacity limit of the existing 2G systems may be reached in the near future. During peak hours the operators may soon be unable to provide service for everybody in traffic hot spots. But the lack of capacity in 2G systems alone doesnt make the building of 3G systems necessary. Current 2G usage is still mostly voice, and this traffic could be handled quite easily by just adding extra frequency allocations to 2G networks (e.g., from the planned UMTS spectrum). One GSM frequency carrier takes 200-kHz bandwidth and can accommodate 8 traffic channels. Thus one WCDMA 5-MHz frequency carrier could accommodate 25 GSM frequency carriers translating into 200 GSM traffic channels. The true and practical number of traffic channels is lower, as control channels use part of the capacity. One does not really need the enormous 2-Mbps connections of 3G for voice the 13-Kbps rate offered by GSM is quite enough for most applications. We can see that the character of mobile communications will evolve considerably in the coming years, and data in their many forms will become more and more important. Voice will remain an important component in telecommunications, but quite often it will be combined with other types of information to form multimedia applications. The current 2G networks were designed to transfer voice traffic only real time multimedia can be transferred via the GSM phase2 air interface only with great difficulty.
HYPERLINK httpoasis.lynn.edum4opacm4opac.dllinstallationlynncommandsearchsession46c286bb-bf17-11de-98f8-8167558d2753linkedtruestyleresultsquery122Korhonen,20Juha.22attr11003Korhonen, Juha.(2001). Introduction to 3G mobile. Boston, Publisher HYPERLINK httpoasis.lynn.edum4opacm4opac.dllinstallationlynncommandsearchsession46c286bb-bf17-11de-98f8-8167558d2753linkedtruestyleresultsquery122Artech20House,22attr11018Artech House,
1.1.5 3G services
The services provided by UMTS can be divided into four main classes
Teleservices
A teleservice is a type of telecommunication service that provides the complete end-to-end capability for communication between mobile users in accordance with standardized protocols.
Bearer services
Bearer services are basic telecommunication services that offer the capability of the pure transmission of signals between access points. These services can be either circuit switched or packet switched. Bearer services concern only the three lowest layers of the OSI model. They are end-to-end transport services in which the user is responsible for the end-point entities.
Supplementary services
Supplementary services (SS) are services that complement and enhance bearer services and teleservices. They cannot exist without these basic services that is, there is no such thing as a stand-alone supplementary service. A stand-alone service would be either a bearer service or a teleservice, but not a supplementary service. SS usually resides in the switch.
Service capabilities (i.e., support for value-added services).
Service capabilities are a set of building blocks that can be used to implement value-added services. As the value-added services themselves are not standardized, but only the building blocks, it is possible to implement them in a way that produces unique services. Unique services are more likely to attract and hold subscribers than constant price wars among operators with identical services.
(HYPERLINK httpoasis.lynn.edum4opacm4opac.dllinstallationlynncommandsearchsession46c286bb-bf17-11de-98f8-8167558d2753linkedtruestyleresultsquery122Korhonen,20Juha.22attr11003Korhonen, Juha.Introduction to 3G mobile communications electronic resource Juha Korhonen. Boston HYPERLINK httpoasis.lynn.edum4opacm4opac.dllinstallationlynncommandsearchsession46c286bb-bf17-11de-98f8-8167558d2753linkedtruestyleresultsquery122Artech20House,22attr11018Artech House, c2002)
1.1.6 Nokia communicator
The latest Nokia mobile model is N97.
When closed, it resembles a phone, although a quite large one. When open, it looks like a tiny PC. The PC part has all the features a PC has (for communications)
E-mail (SMTP, IMAP4, POP3), MMS, SMS, unified editor
Viewing of email attachments .doc, .xls, .ppt, .pdf
Mail for Exchange
Data Calendar, Contacts, To-do, Notes, E-mail
PC Applications Microsoft Outlook, Outlook Express, Lotus Organizer, Lotus notes
For communication, the N97 gives us- Easy-to-use email client with attachment support for images, videos, music and documents- Support for SMTP, IMAP4, POP3, MMS, SMS. Unified SMSMMS editor- Email web widget- Nokia Email- Mail for Exchange
(HYPERLINK httpwww.nokia.comwww.nokia.com)
1.2 Development of The Third Generation (3G)
The third generation (3G) deployment is not a technical issue, but depends on a regulatory and economic one. The demand of subscriber is the key factor, the expectations of user is being raised for mobile services. And for any successful third generation (3G) license bidder time to market will be critical. The way third generation (3G) is rolled out in a particular market will depend entirely on the business plans of the mobile services, and the license requirements imposed by the regulatory authorities.
1.2.1 in Japan
Japan was the first country to introduce the third generation (3G) into the world. NTT DoCoMo is the largest telecommunication company in Japan, which has launched the worlds first third generation (3G) mobile service based on the Wideband Code Division Multiple Access (W-CDMA) standard. The service named freedom of mobile multimedia access (FOMA). According to CEO of NTT DoCoMo, the company is not limiting its ambitions to the domestic market. This company has expanded into North America and Europe to own their subsidiaries using strategic alliances. Its eight regional subsidiaries announced the subscription for freedom of mobile multimedia access (FOMA). This service led Japanese the third generation (3G) services to consecutively gain the subscription, and the growth is really fast. (3G FOMA subscribers exceed 40 million, 2007. Online)
According to IDC Japans new study Japan 3G Mobile Phone Service Forecast and Analysis 2002-2007, the third generation (3G) service market in Japan is expected to reach 69 million subscribers in 2007, and will account for 77.6 of the 88.9 million subscriptions in the entire cellular phonePHS market. The 3G market is also expected to be worth 6,403.2 billion yen in terms of revenue, accounting for 81.4 of the total market revenue of 7,865.4 billion yen. The ratio of data communication charges in the total monthly usage fee for mobile phone services will increase to 26.1 in 2007. (Japan 3G Users 69 Million, 2003. Online)
1.2.2 in South Korea
South Korea was the second country to get the commercial third generation (3G) service. The South Korean government had intended to make Korea a rival to Japan as a showcase for the third generation (3G) technology. The government chose to adopt multi-standard policy for the third generation services. There are two different standards for the third generation services. Code Division Multiple Access 2000 (CDMA2000) is a continuation of QualComms second generation (2G) Code Division Multiple Access (CDMA) technology. It is known as synchronous mode because the communication between handset and base stations are synchronized based on the same time zone, set by the global position systems (GPS) satellites. On the other hand, Wideband Code Division Multiple Access (WCDMA) is a European standard that does not require the global position systems (GPS) satellites by the US government. In this standard, each bas station needs to have its own code and promises a global roaming which has been the trademark of Global System for Mobile communications (GSM) standard.
Ministry of Information and Communications (MIC) of Korea announced that three licenses would be awarded, two based on Wideband Code Division Multiple Access (WCDMA) and one on Code Division Multiple Access 2000 (CDMA2000). The plan of Ministry of Information and Communications (MIC) was not readily accepted by the countrys three largest operators who all said they would rather install the third generation (3G) networks using Wideband Code Division Multiple Access (WCDMA) technology, because of the greater expense and the risk of backing Code Division Multiple Access 2000 (CDMA2000) which might not be accepted as a global standard. This posed a problem for the government which was pursuing a policy of making Koreas telecommunications industry. Koreas two largest mobile operators which are Korea Telecom (KT) and SK Telecom were subsequently awarded licences to launch Wideband Code Division Multiple Access (WCDMA) networks. Meanwhile, the third largest operator, LG Telecom backed out of the process and the Ministry of Information and Communications (MIC) was left with no one wanting the Code Division Multiple Access 2000 (CDMA2000) license. The government tried to attract a licenses, it would reduce the license fee for a Code Division Multiple Access 2000 (CDMA2000) operator. Korea Telecom and SK Telecom quickly threatened legal action. The communications minister resigned, apologizing for the third generation (3G) licensing problems.
1.3 The Third Generation (3G) Licenses
Clear and stable licensing conditions and policy are well known to potential bidders prior to the commencement of the licensing process are key requirements of an effective licensing framework. The process of the third generation (3G) licensing has taken care by the governments, include the number of licenses to be awarded the conditions, if any, to be attached to the licenses the method by which licenses will be allocated to prospective operators of the third generation (3G) services clear terms for payment. The number of licenses to be awarded is an element of competition policy and can critically determine the success or failure of the third generation (3G) regulatory framework and of the third generation (3G) service provision in general. However, neither governments nor operators have consistently agreed on this number of licenses, For instance, in Europe, the UK government originally proposed to offer four licenses, but under pressure from new entrants, it divided the spectrum into five (unequal) lots. With five existing operators, the Dutch also decided upon five licenses. Germany offered 12 smaller lots, allowing bidders to bid for two or three lots each, allowing for between four and five licenses, Italy offered five identical lots.
(Patrick Xavier., 2001, licensing of the third generation mobile, HYPERLINK httpwww.itu.intosgspuni3GworkshopBriefing_paper.docBriefing Paper 3G)
Licensing policies and procedures must be applied judiciously they influence market entry, and affect competition and market development. Licensing may impose barriers to entry, whether through license costs or through procedures which inadvertently permit increased scope for collusive behavior by existing operators and service providers. While telecommunications is globalizing, with technology making national borders irrelevant in the design and delivery of services, licensing of the third generation (3G) operators remains highly fragmented along national lines. With technological and commercial convergence it is even more important to be vigilant that unnecessary licensing requirements do not constitute barriers to the development of new global innovative services, including global roaming. (Patrick Xavier., 2001)
Indeed, there may well be a disposition to continue the practice of limiting license numbers since, after all, a relatively small supply in relation to the demand for such licenses will support higher auction receipts for government. Certainly, a limitation in the number of licenses awarded will boost the scarcity value of a license. Also there is the related concern that a high license fee imposes a substantial tax (since no cost is involved in supplying the spectrum) on end-users (to the extent that the fee is passed on).
An effective framework for licensing the third generation (3G) operators is crucial to the successful introduction and development of the third generation (3G) services. A licensing framework must recognize and reflect the high levels of investment required for the third generation (3G) network roll out and the significant uncertainty associated with the third generation (3G) business case. The licensing framework should assist the development of new and innovative services rather than act merely as a means of raising revenue.
(Patrick Xavier., 2001)
Some countries delayed the introduction of the third generation (3G) networks because of the huge costs of additional licensing fees, therefore, the mobile operators has to build new networks and license new frequencies. On the other hand, now that over twenty countries have awarded the third generation (3G) licenses and over 70 third generation (3G) infrastructure contracts have been signed, it would seem that Europe is well on its way to offering the third generation (3G) services. Although anticipated infrastructure and handset are expected, coupled with incremental returns on investment for operators, these factors will only postpone the adoption of the third generation (3G) rather than signal its end. Service launches have been postponed even by those expected to be the first to roll-out the third generation (3G) in 2001 such as Japan and South Korea. However, most observers are confident that the third generation (3G) will be deployed. The majority of carriers around the world expect to evaluate their own third generation (3G) options well into 2002 and begin deployment in late 2002 or early 2003.Therefore, while there is widespread confidence that we are migrating to the third generation (3G) space, this will occur much later than first expected.
1.4 Chinese Economy and People
China is a developing country with a population of 1.3 billion people. It covers an area of 9.6 million square kilometers, which makes it the fourth largest country in the world, after Russia, Canada and United States. Despite a population density of 133 people per square kilometer, nearly one third of China is sparsely populated due to harsh geographical conditions. For this reason, universal telecommunications access for remote and less populated areas has been a challenge for both the government and telecommunication operators.
China had an extremely fragile economy after civil wars, foreign invasions and endless political movements at the beginning of the 20th century. This situation lasted until the end of the ten year long Cultural Revolution in the late 1970s. Since then, the Chinese government has taken a relentless stance in reforming its economic system, and has transformed the highly centralized planned economy into a socialist market economy. An open door policy has attracted substantial foreign direct investment in most industries except for telecommunications operation and other politically sensitive sectors. Economic reform efforts are proving effective and successful, and Chinese economy has grown quickly. (Yan, H.,Online)
1.4.1 Chinese Telecommunication Industry
Telecommunication industry is capable of making very rapid development by direction and policy, especially in China. The Chinese telecommunication industry was postponed to develop the infrastructure of teledensity and technology, Chinese operators only could offer switching systems, and the human operators have connected international calls and long-distance calls in the early era. The international telephone service was only available in a limited number of cities. The infrastructure has gotten far behind other foreign telecommunication industries. Furthermore, telecommunications was not treated as a commodity it gave the poor economic returns from telecommunications services. (Yan, H.,Online)
When the Chinese government decided to reform its economic system, it realized that the poorly developed telecommunications infrastructure had seriously deterred foreign investment and had acted as a bottleneck for domestic economic growth. The Chinese government coped with this they gave priority to the development of telecommunications. There are preferential policies were implemented which included the three 90s policy 90 of profit is retained by the local service provider, this mean the tax rate is 10 for telecommunications much less than the other industries 90 of foreign exchange earnings are to be retained by the enterprise and 90 of the central governments investment is considered as un-repayable loans. In addition to these preferential policies, the Chinese government began to implement certain market schemes in the telecommunications sector. The main areas of reform lay in the decentralization of administrative power to lower government echelons, the development of market relations, the delegation of responsibility for performance to enterprise managers and the encouragement of incentive systems. According to this case, the preferential policies and the successful implementation of reform schemes have effectively facilitated the development of telecommunications in China. (Yan. Online)
The enormous telecoms market provided the Chinese government with strong bargaining power to urge foreign vendors to transfer their technology when a trade deal was made between the two parties, especially when a joint venture was to be established. At the same time, the Chinese government has provided favorable support to domestic manufacturers. This support included the assignment of a research grant for research and development (RD), low-interest loans, discounted tax rates and a generous provision of land in high-tech industrial parks. This support has been very effective. In the mid 1990s, several domestic manufacturers were well-established, including Julong, Datang, Zhongxing (ZTE) and Huawei.
These domestic vendors have achieved tremendous success in the manufacturing of transmission and switching equipment. In 1992, the first South Pacific Commission (SPC) switching system of 10,000 lines was made in China with China-owned intellectual property (IP) rights. Since then, under the co-ordination of the government, local manufacturers began to dominate the local market. In 1999, the market share of local vendors in switching equipment rose to over 99. At the same time, more and more local products have been exported to foreign countries. In 1999, the total revenues from exporting telecoms equipment and systems reached US4.66 billion. (Yan, 2002. Online)
In November 1999, the first assembly line for mobile handsets began its operations. In the same year, domestic vendors made a breakthrough by entering the mobile market. In 2000, 10 domestic vendors produced 3.44 million handsets, of which they sold 3.26 million. The total capacity of the mobile switching system that was sold in 2000 reached 5.85 million lines, while sales of mobile base stationed reached 145000 sets. (Yan, 2002. Online)
Chinese manufacturers will not stop at their current achievements. Time Division Synchronous Code Division Multiple Access (TD-SCDMA) of the third generation (3G) standard has extended the ambitions of the Chinese manufacturing industry beyond the second generation (2G) mobile communications.
1.4.2 The 3G market in China
China Unicom, became the official WCDMA operators on September 28 Their service marked Chinas formal entry into the 3G market, the stage of full competition, but it also opened up 3G speed to the development stage. The current number of 3G users are around 2.7 million and it is expected that by the end of the year, Chinas 3G subscribers will reach between 7.5 million -1 billion, obviously creating heavy volume.
3G market will accelerate the need for 3G networks and 3G terminals both relatively mature to start. As China Mobile and China Telecom in the 3G terminal is still in the maturing stage, 3G market is delayed that cause consumers to be in a wait and see phase, waiting for the mainstream and China Unicoms comprehensive official commercial launch of WCDMA.
In the 3G market, China Unicom WCDMA is on the advantages of industry chain and the terminal can get the leading market share, but they do not pay too much financial costs. China Mobile needs terminals on the huge subsidies in order to attract some of the major interest for subsidized customers who are 3G users, since customer demand for the use of 3G value-added services is not very strong.
China Mobile competition is not primarily between the 3G industry chain, but between China Unicoms 3G, China Telecom and China Mobile 3G competition between 2G. From the comparative point of view, there is a small diferrences in the industrial chain of China Unicom and China Mobile 3G. China Unicom is dependent on China Mobile WIFI access that brings the difference apart the 2G Advantage. China Telecom and China Mobile 3G industrial chain between 2G is at a disadvantage compared to the more need to get with China Mobile WIFI the difference between 2G Advantage.
The capital market is in China Unicoms 3G networks and its large-scale operation in WIFI. It will clearly see the networks, tariffs, terminals, businesses, and its difference between the three other operators, industry structure, market competition and changes in the forthcoming show.
Relying on the low tariff WIFI and 3G high-speed fully launched on the basis of the market, China Unicom WCDMA advantage of the industrial chain will be at its fullest and it will be the strong market of the North mobile operator.
(httpwww.chinaunicom.com.hkeninvestorir_data.html)
1.4.3 The 3g consumers in China
For consumers, 3G era is still only interested in services to consumers, rather than what technology is used to provide services. 3G is a very important sign of a reasonable price (cheaper than in the past), for mobile and fixed users with high-speed data transmission. 3G operators will have more time to focus on how to make full use of the advantages of its brand entities, through the service and product differentiation, and flexible user interface to download the application and realized the advantages of 3G. Manufacturers and the fierce competition between operators will drive the development of 3G markets, and consumers will also enjoy more than the 2G era of high-quality, and cheaper telecommunications services and its consumers will be the final winner in 3G era.
For the three kinds of 3G standard, consumers have little difference in awareness levels, had heard of CDMA 2000, TD-SCDMA and WCDMA, the proportion of respondents who were 62, 61 and 58. However, only 6 of the respondents said they are choosing the carrier will be considered in its 3G standard. The study found that 87 of people think that video telephony is the biggest advantage convenience of mobile broadband services via their mobile device to watch TV or other video programs, as well as faster Internet access speeds over the same time consumers are Qi Cheng recognition. Of course, there are nearly 1 4 of the people believe that 3G technology will make future communications costs cheaper.
TNS survey shows that consumers are most concerned for the 3G technology, problem is that tariff issue, there are nearly 3 4 of respondents are concerned that service charges are too high. Network performance is also a hot spot of concern to consumers, covering broad enough (54), network instability, signal poor (50) and network speed, not fast enough (35) and other issues are subject to everyones attention. In addition, consumers need to re-purchase of a new mobile phone is also very concerned about (69).
(HYPERLINK httpit.people.com.cnGB1068429059473570.htmlhttpit.people.com.cnGB1068429059473570.html)
1.4.4 The Third Generation (3G) Standard in China
It is said that the world is looking at China, China is looking at high-tech, high-tech is looking at telecoms, telecoms are looking at mobile, mobile is looking at 3G. Chinese mobile telecommunication is the largest market in the world, actions whichever Chinese mobile telecommunication takes, have attracted the attention of global telecommunications industry. China is promoting the different third generation (3G) mobile standard that is Time Division Synchronous Code Multiple Access (TD-SCDMA) comparing with US and Europe. Europe uses Wideband Code Division Multiple Access (WCDMA) standard, while US prefers Code Division Multiple Access 2000 (CDMA 2000). The new technology of Time Division Synchronous Code Multiple Access (TD-SCDMA) will be a dominant position in the future. This standard has been the main concern in selecting and determining of the Chinese government which will be holding its property right. China has multiplicity choices to choose the third generation (3G) technologies which includes its own standard Time Division Synchronous Code Multiple Access (TD-SCDMA), Wideband Code Division Multiple Access (WCDMA) and Code Division Multiple Access 2000 (CDMA2000). Those third generation (3G) technologies have different technical characters. According to China has different economy, Chinese government will be concern on its different views on economic implications and mobile services of the third generation (3G) development. In contrast with other global standards, Time Division Synchronous Code Multiple Access (TD-SCDMA) has disadvantages in technical maturity and commercial service. (Ken IMAI and SHIU Jingming, October 2007. Online)
Everyone are delighted to join in the digital era, the mobile market is marvellously growing in the world, especially in the developing countries. Wideband Code Division Multiple Access (WCDMA) of the third generation (3G) networks appears to be the huge need in the third generation (3G) markets. Wideband Code Division Multiple Access (WCDMA) networks have covered more than 130 commercial networks in the 60 countries, and nearly 100 million subscribers.
(Corporate brochure 2008. Online)
Chinese Time Division Synchronous Code Multiple Access (TD-SCDMA) standard will be commercial into international market, this standard is based on Global System for Mobile communications (GSM) system, according to Global System for Mobile communications (GSM) system has strong dominant standing in the worldwide, however, Time Division Synchronous Code Multiple Access (TD-SCDMA) has potential ability of growth in the future. The European third generation (3G) development made some problems. Because of the high cost of the licence auction, most operators can not afford it thus making their national telecommunications industry undermined. In some countries, the licenses have been issued too many, the users were scattered to be difficult to promote new business on a large scale. According to the experience and lessons of Europes third generation (3G) development, and the situation of Chinese telecommunication industry, the issuing of third generation (3G) licenses help operators to truly compete in the mobile communication market. (James, D., 2004. Online)
Datang Mobile of Chinese Telecom manufacturer researched and developed Time Division Synchronous Code Multiple Access (TD-SCDMA) standard. The international manufacturers can help Datang to promote this new standard. Ericsson, Nokia, Siemens own the distributed patents of Time Division Synchronous Code Multiple Access (TD-SCDMA) technology. As a leader and promoter of the Time Division Synchronous Code Multiple Access (TD-SCDMA) industry, Datang Mobile and members of the Time Division Synchronous Code Multiple Access (TD-SCDMA) industry alliance are working together to build a complete Time Division Synchronous Code Multiple Access (TD-SCDMA) industry chain incorporating the most innovative technologies. The combination of ACCESS cutting edge products with Datang Mobiles world-leading mobile technologies will bring advanced and mature data solutions for Time Division Synchronous Code Multiple Access (TD-SCDMA) customers, thereby accelerating the successful commercialization of Time Division Synchronous Code Multiple Access (TD-SCDMA) in China and beyond. (Sun, 2005. Online)
Time Division Synchronous Code Multiple Access (TD-SCDMA) marks a milestone for the Chinese telecoms industry, as it is the first telecoms standard proposed by China to be accepted internationally. The long-term efforts of the Chinese government and the industry have finally paid off. Compared with Wideband Code Division Multiple Access (WCDMA) and Code Division Multiple Access 2000 (CDMA2000), Time Division Synchronous Code Multiple Access (TD-SCDMA) has certain distinguishing characteristics. (James, D., 2004. Online)
First, the application of smart antennas and the low chip rate of 1.28 megabits per second (Mbits) can improve the efficiency of spectrum usage significantly.
Second, the application of smart antennas can also enhance antenna gains due to its feature of adaptive beam-forming, or its ability to target and track a specific object with a single beam of signal rather than sending or receiving signals via all dimensions like the current Global System for Mobile communications (GSM) systems, which will significantly save the energy and improve the power efficiency of the base station. Additionally, as smart antennas use an array of small power amplifiers, which are much cheaper than a single high-power amplifier, the cost of base stations can be reduced dramatically. The antenna array can also strengthen the reliability of the base station as the system would continue working even if some of the eight sendingreceiving systems were out of order.
Third, Time Division Synchronous Code Multiple Access (TD-SCDMA) uses two asymmetric bands for uploading and downloading traffic, which is similar to the asynchronous digital subscriber line of the fixed-line broadband system. This is based on the expectation that the third generation (3G) is used mainly for downloading content from wireless portals. Fourth, the application of software-defined radio enables the application of multiple features on the same hardware platform. On the one hand, it will reduce the size and cost of the system and, on the other, it may serve to overcome Chinas weakness in chip-manufacturing technology.
The last and most important feature of Time Division Synchronous Code Multiple Access (TD-SCDMA) is that it can enable a smooth transition from a current Global System for Mobile communications (GSM) system to future third generation (3G) systems. The Time Division Synchronous Code Multiple Access (TD-SCDMA) is designed as a dual-band and dual-mode system. When the third generation (3G) base stations are available, they can be installed in the same place as the Global System for Mobile communications (GSM) base station. In its coverage area, Time Division Synchronous Code Multiple Access (TD-SCDMA) could therefore support both Global System for Mobile communications (GSM) and the third generation (3G) services and in areas that have not been covered by the third generation (3G) base stations, the Global System for Mobile communications (GSM) service would still be available. For this, the handset should be able to accommodate dual band and dual mode. With the application of software-defined radio, this will not be difficult to achieve. (TD-SCDMA forum, 2004. Online)
1.4.5 Chinese Government Support TD-SCDMA Standard
The Chinese government astonished the telecoms industry when it announced some years ago that it planned to develop its own standard, Time Division Synchronous Code Multiple Access (TD-SCDMA), for third generation mobile technology. Vendors in other countries feared that they might be almost entirely cut out of the third generation (3G) market in China. Since then, however, much has changed in the third generation (3G) field, and Wideband Code Division Multiple Access (WCDMA), another third generation (3G) standard, is now regarded as the favourite to gain widespread adoption internationally, including in China. Some observers have therefore expressed doubts that the Chinese standard will move forward. Nonetheless, the Chinese government still seems determined to push forward with Time Division Synchronous Code Multiple Access (TD-SCDMA). It believes that Time Division Synchronous Code Multiple Access (TD-SCDMA) has tremendous potential, and that this technology could catapult Chinas domestic telecoms equipment vendors onto the international stage. (Wei, K., 3G situation in China. Online)
But in terms of communications, Wideband Code Division Multiple Access (WCDMA) surpasses Time Division Synchronous Code Multiple Access (TD-SCDMA) in regard to both data speed and in providing data applications. This makes Time Division Synchronous Code Multiple Access (TD-SCDMA) less competitive overall.
The Chinese government, however, has the power to control the type of services that are launched under other third generation (3G) standards, and thus it can protect domestic vendors and advance their interests. The Chinese government is particular in developing national third generation (3G) standard in the world. The Chinese government has strong power and attitude to control and support the national standard, because they will gain considerable benefit when the standard will be commercial. (Wei, K., 3G situation in China. Online)
According to data from the Ministry of Information Industry, the Chinese government puts a great lot of money into the initial research and development of Time Division Synchronous Code Multiple Access (TD-SCDMA) which needs a lot of investment. Although Siemens helps Datang, it is still difficult to perform.
The government helps to establish a strategy alliance of Time Division Synchronous Code Multiple Access (TD-SCDMA). It is intended to encourage some local and foreign vendors to join. Ministry of Information Industry (MII) supports to arrange extraordinary funds to recruit the best employees such as engineers and scientists who are from international countries. Ministry of Information Industry (MII) tends to bring on the more and more internal and external manufacturers to engage in the alliance. (Wei, K., 3G situation in China. Online)
Therefore, the industry value chain is recently established.
1.4.6 Chinese Operators Attitude
Todays mobile network operators can gain the vital business and market experience of providing high-speed mobile data services by introducing packet switching networks. By the time the new Wideband Code Division Multiple Access (WCDMA), and Code Division Multiple Access 2000 (CDMA2000) wideband radio interfaces are standardized and commercially available, the market of China will already be attuned to the possibilities of the third generation (3G).
Time Division Synchronous Code Multiple Access (TD-SCDMA) was developed by Siemens and Datang, two companies that have been collaborating since 1998, with the strong support of Chinese government. The Time Division Synchronous Code Multiple Access (TD-SCDMA) Forum, an organization that was founded in 2000 and that maintains the standard, currently has more than 200 members. It is still uncertain which operators, if any, will launch third generation (3G) networks using Time Division Synchronous Code Multiple Access (TD-SCDMA) technology. None have yet announced an intention to do so, and current reports and analyses suggest that even in China, operators are more likely to adopt Wideband Code Division Multiple Access (WCDMA) based services than those of Time Division Synchronous Code Multiple Access (TD-SCDMA).
The nations fixed line Telcos, China Telecom and China Netcom, are showing a preference for Wideband Code Division Multiple Access (WCDMA), and China Mobile, one of the worlds largest Global System for Mobile communications (GSM) operator groups, is also following the path to Wideband Code Division Multiple Access (WCDMA), like most other Global System for Mobile communications (GSM) operators. China Unicom, which operates both a Global System for Mobile communications (GSM) network and a Code Division Multiple Access (CDMA) network, is expected to adopt a third generation (3G) standard for the Code Division Multiple Access (CDMA) network. This standard, Code Division Multiple Access 2000 (CDMA2000) is comparatively easy to implement, but offers slower data speeds than Wideband Code Division Multiple Access (WCDMA) does.
The operators of telecommunication are also focused on their different interests of developing the third generation (3G) service. China has four main operators which are China Mobile, China Unicom, China Telecom and China Netcom. Based on the different situation of four operators have the different attitudes of upgrading third generation (3G).
China Mobile is the largest operators in the world based on Global System for Mobile communications (GSM) network. China Mobile has controlled more than half of Chinese mobile market, and has gained the large amount of profits from the exits mobile market. China are going to introduce the third generation (3G) service, it will bring challenge to China Mobile because they will meet more competitors. China Mobile runs Global System for Mobile communications (GSM) network and upgrades the second generation (2G) network to 2.5G, now they have to catch up the new mobile technology that is the third generation (3G) network with the rest of operators. It will cause China Mobile difficulty in handling their huge investments. However, the third generation (3G) is better to offer the data service rather than the voice service, China Mobile is going to take off 2.5G which is also able to provide the data service. They have to take more time to develop the data service in potential markets.
In addition, the shortage of Global System for Mobile communications (GSM)s frequency has to be improved by China Mobile in the near future they have to depend on the frequency of the third generation (3G) networks. According to CEOs speech of China Mobile, they hope to launch Wideband Code Division Multiple Access (WCDMA) network of the third generation (3G) as primary infrastructure to replace Global System for Mobile communications (GSM). This will reduce the money which they will reinvest in the new technology. And they consider that Time Division Synchronous Code Multiple Access (TD-SCDMA) is another choice to support domestic standard and improve networks efficiency.
The third generation (3G) is the kind of new expression to represent the new technology. The third generation (3G) technology will provide wireless broadband services to the mobile phone. It is higher speed than the second generation (2G) is provided, as three times faster. Therefore, the third generation (3G) networks can bring you through every web page, listen to streaming music, watch the video programs, play games and download everything you will like to. The standard of downloading on a mobile phone will be undoubtedly close to a computer that connects through a broadband.
At present, there are three major carriers namely Japan, South Korea and Europe to introduce the third generation (3G) services, and provide the 3G handsets to customers. The third generation (3G) service can be fun when you will use it soon. Let us to conceive a new idea, we are in Dublin and we want to go to cinema, then we can use the third generation (3G) service. Using the GPS (Global Positioning System) to measure the location where we are, then the third generation (3G) service accesses the details of cinemas to define which are nearby and name such as UGC, UCI. And using the database to decide which kind of films we would like to watch, for example, Transformers or Rush Hour.
According to Use the location information and define the choices, the third generation (3G) service would provide our favorite movies and the coming times. In addition, we can use the mobile device such as phone or laptop to buy a ticket which we have chosen to enjoy the movies. That is just the simple example that the third generation (3G) service could be used easily. The third generation (3G) systems will be able to provide high-quality streamed Internet content to the rapidly growing mobile market.
In addition to higher data rates, these systems also will offer what the industry now terms value- added services with a range of unique mobile-specific services such as geographical positioning, user profiling, and mobile payment. The third generation (3G) is promised to offer those kinds of services, and then our daily activities will be affected deeply by the third generation (3G) service.
However, the Chinese government and telecommunication operators have a challenge to access remote and less populated areas as universal telecommunications. Chinese telecommunications industry is sluggishly developing as other industries in early years. The teledensity was very low in China for most cities in addition to international calls being not available. The mobile telecommunication has not yet been implemented in this period. Telecommunications were regarded as luxury that is why only those who are rich and those in the government could use it.
2. Research Methodology
There will be a great variety of research methods to carry out the primary research for this dissertation. In this sector, I will introduce the way how to do the research, how the primary research and secondary research are carried out. I will also explain which data should be obtained and give the limitation of the primary research.
According to the topic of my dissertation which is discussing about the third generation (3G) whether it has future in China, this countrys third generation (3G) foreground includes some uncertainties, because of a complicated market environment especially because of the introduction of Chinese standard that is Time Division Synchronous Code Multiple Access (TD-SCDMA).
2.1 The hypotheses of this research are
1. The different strategies of the Chinese operators will influence the choice of consumers.
2. TD-SCDMA operators will lead the Chinese 3G market.
3. Consumers behaviors will affect the 3G development.
In order to achieve the assignments and find out the valuable information, I made the decision about the research methods I am going to use. I will focus on the market research of Chinese telecommunication which is the demand of the third generation (3G) service in China. A questionnaire is the tool of doing the research which covers the market share, cost, investment, management and branding, popularity and profit return.
Research also has been made on the products receptivity of customers. All data will be carefully analyzed. Market forecast for the third generation (3G) mobile phones has been made and products performance, interface, operation practicability have all been improved accordingly. These efforts have helped the products better accommodate the demand of Chinese market. Moreover, through this research, I can get a general understanding of the performance, the products and the prices in the telecommunication industry.
2.2 Questionnaire
Dalian has been selected as my target city of market research. Dalian City is a Chinese seaside city with an urban population of around 2 million and telecommunication businesses of 2000 or so. According to their nature, they can be classified as comprehensive state businesses and privately owned businesses respectively. With the development of energy sources construction in China as an important energy sources city, telecommunication industry in Dalian has been developed on a flying wheel. The governable income for the urban population has been increased by 10 each year and high-quality and high-level mobile phones and services have been fully developed, among which high technology has become the most representative. This trend has made it a main topic that the third generation (3G) with high efficiency is demanded to be widely applied in telecommunication industry.
My research is carried out with focus on the following
1. To do research in the percentage of telecommunication businesses that has been applying the third generation (3G) mobile phones.
2. To do research in the brands of the third generation (3G) mobile phones that has been applied in Dalian market.
3. To do research in the customers recognition of the third generation (3G) in Dalian market.
5. To do research in the business scale of telecommunication businesses applying the third generation (3G) in Dalian market.
6. To do research for the main reason why the third generation (3G) has not been widely applied by telecommunication businesses in Dalian market.
(See appendix 1)
The reason why I chose Dalian is because it is my hometown. Moreover, as I am very familiar with the city and its environment and I have my family and friends there helping me carry out some interviews through questionnaire and visits and giving me feedback by emails for all the basic data, it makes my research more practical basing on its authenticity.
2.3 Research and Analysis Questionnaire in Dalian Telecom Industry
Object Customers and businesses
Mode Questionnaire by emails
Coverage The telecommunication businesses in Dalian publicized on the internet
2.4 Form of Questionnaire
I designed my questionnaire as a city researcher to make sure that a high rate of response can be obtained. The questionnaire will evaluate the attitude of Chinese people toward wireless application in telecommunication. It was administered to around 150 people. The selected people will be of different occupations and in different age levels. The content covers preferred service types of wireless applications in telecommunication industry, concerns of people toward the wireless services, etc. The questionnaire is in a form of selective questions. Some of the questions are designed as comparative expressions to serve as a supplement. The design of the questionnaire is presented in the appendix 1.
2.5 Method of Investigation and Data Analysis of Questionnaire
I designed the questionnaire and it was sent to my selected Dalian respondents by email. After the treatment of research data analysis with figures and tables, I then obtained research results. I conducted an investigation for these results to make it concise but understandable to many.
Through the questionnaire forms, I had collected information that I want to know about the third generation (3G)s demand of telecommunication in Dalian market which made me able to forecast the third generation (3G) consumption trends for the near future. I will provide promotion recommendations to help the third generation (3G) manufacturers find a suitable marketing strategy.
2.6Investigation Method
a. Object investigated Customers of telecommunication industry in Dalian
b. Investigation form Questionnaire
c. Sampling method Effective recovery questionnaire as a sample
d. Sampling size 120 questionnaires has been send out and 100 questionnaires came back with valid answers
2.7 Limitation of Research
For the questionnaire, because of location and outlay problem, I only sampled 120 enterprises in this research project. And I only got valid response in 100 answer sheet so it wouldnt be 100 to represent the current third generations state in the Dalian market. The result of this research should have some difference between real situations.
3. Research Analysis
In this chapter, I am going to analyze the information which was gathered from the primary research. Those will focus on different perspective from the managers and customers.
Analysis form Questionnaire
Through this data analysis, I want to get an overview of the third generation (3G) whether it has potential market in China from the customers point of view, such as their awareness of the third generation (3G)s capability and interface, and also to understand the needs of customers in the telecommunication market. Get useful information to improve the service, and prove the third generation (3G) has future in China.
3.1 Percentage of Customers Choosing the Third Generation (3G) in Dalian Market
The third generation of Dalian market is currently in initial state, we can view from 100 response answer sheet over than 60 of customers are going to choose using the third generation (3G) mobile phones, and the third generation (3G) market foreground is very large.
75 Chinese customers are using the mobile phone to make phone calls and text messages, 8 of customers have chose Multimedia, and MP3 player is selected by 12 of customers. There are only few people think that Web access is easily used by mobile phones it is only 5.
useFrequencyPercentValid PercentCumulative PercentValidphone call4444.044.044.0text3131.031.075.0multimedia88.08.083.0web55.05.088.0mp3 player1212.012.0100.0Total100100.0100.0
Price and brand become main factors to impact Chinese telecommunication customers to choose the third generation (3G) mobile phones, the appearance is also become an impact factor. The special offer package is the highest percentage which is 32 by making the decision of choosing network provider also the network quality is selected by the 28 customers in choosing network provider.
PercentValidprice2828.028.028.0brand2323.023.051.0appearance1414.014.065.0functional1313.013.078.0maintenance1717.017.095.0others55.05.0100.0Total100100.0100.0
According to survey more than 47 of the customers are subscribing China Unicom as the mobile service provider, and 23 of the customers are subscribing China Mobile. Operators such as China Unicom are focusing on providing a variety of services to prepaid customers thus they are expected to provide the new services by the Chinese telecommunication customers. (see appendix 10)
3.2 Customers Satisfaction and Loyalty in Mobile Service Provider
In this survey, most customers are happy with their mobile service provider which they had used for the past years. They are confident with the service quality of their provider. The people also agree that they like to try new things for the sake of variety.
From the analysis China Unicom is the most famous brand, and has higher value for the most existing customers. This is linked with continuous promotion of China Unicom. It is an advantage to implement a new network and a new technology to the customers. Therefore, it is necessary to increase investment for advertisements in the third generation (3G), and the quality of services for advancing the market shares. This thus answers my first hypothesis is correct that the different strategies of the Chinese operators will influence the choice of consumers.
3.3 Acceptable Level of Customers of Using the Third Generation (3G)
After summarizing the responses, I found out that 73 customers are aware with this new technology of the third generation (3G) in telecommunication market. The main reasons that will be considered to use the third generation (3G) by the customers are as follows special promotion for the mobile phone, variety and appearance of the third generation (3G) mobile phone, customer service, network coverage. The proportion of special promotion for the mobile phone is 28, variety and appearance of the third generation (3G) mobile phone also possesses higher percentage which is 22, customer service 15 and network coverage is 12.
The financial information and sports are the information that the most customers will expect the third generation (3G) can be provided. By the affection of globalization, the branding name is leading consumption of the Chinese telecommunication customers. The most customers are prefer to use hometown network, Time Division Synchronous Code Multiple Access (TD-SCDMA). It is therefore concluded that the Chinese customers intensively desire to support their domestic technology.
Conclusion
The viability of a 3g network in China is a good one wherein its growing population, continued market strength and a strong consumer base will enable it to effectively recoup the loses back of the creation of a 3g network.. The growing population in China will create a demand for newer and better forms of communication in the future, with the current Chinese population estimated at 1.1 billion and climbing the need of the next generation is obvious. If China is to provide this potential need it will have to invest in a 3g network that will enable it to fully accomplish the needs of its customers now and those of its future customers. China has, within the past few years has become and economic giant which has focused on the manufacturing industry as a means to stay globally competitive. A vast majority of consumer goods are made and created in China. As such this has created a strong middle of managers and supervisors a long with a competitive work force that have access to more jobs than they did before due to the manufacturing boom in China. With the growing demand for faster and more effective methods of communication along with the current trend of the usage of smart phones among the global consumer base China has found itself in a situation wherein it has the consumers, the need is there, and the methods of effective usage is easily available why so then is it difficult to create a viable 3g network in the country Due to the sheer size of the country itself the creation of a 3g network in China is a daunting task. Not to mention the fact that not all of China contains metropolitan areas, a vast majority of China contains uninhabitable land, not to mention the fact that some villages in the country are in far flung areas and the residents barely if ever even use phones. So the creation of a nation wide 3g coverage platform would not only be a daunting task in some areas it would be downright wasteful. Another reason why the creation of a 3g network would be difficult would have to be the overall price of the network itself, the creation of such a large network would demand an equally large investment of capital and with the possibility of some areas being totally unusable few investors would be willing. Thirdly even though there is a market for 3g coverage the Chinese government is notoriously repressive when it comes to internet usage wherein it has blocked certain sites from being viewed in China. The creation of a large 3g network would allow unmitigated connections to the internet by the Chinese populace which would create a problem for the Chinese government since it would be hard pressed to be able to constantly monitor all the sites these users visit. All in all there are a lot of factors both for and against the creation of 3g network in China however it is my belief that a 3g network will be created in the near future however it might be limited to the cities only since that if there is a demand for a particular service it will always be profitable to supply that service to the population.
Recommendation
It is my recommendation for future researchers of this topic that they thoroughly investigate the different consumer demands there are for smart phones. The demand for smart phones within the Chinese populace will be the determining factor in the future as to whether or not an effective 3g network will be created. The reason for this is due to the fact that smart phones need to use an effective 3g network in order to be used to the height of their capabilities. If the Chinese demand for smart phones increase then there will be a need to create an effect method of sales of data packages for there smart phones and in order to host such a demand a 3g network will have to be created. I would suggest that future researchers perform a survey of factory workers and middle management workers since these two classes will be the driving force of any future creation of a 3g network since they are a larger chunk of the Chinese population. Ask them what sort of phones would they be willing to buy within the next few years, whether or not they would purchase a smart phone and why. After that I would suggest that future research attempt to research the viability of creating 3g networks only within city limits and not have the service available in outside areas. One of the reasons I used in my conclusion against the possible creation of a 3g network in China was due to the large size of the country and that a vast majority of it was decidedly rural. If 3g networks can be limited to metropolitan centers then it would really be a reality for the effective creation of a 3g network since it is far easier to create a 3g network within a few cities than it is to create an effective network for the entire country. Not to mention the fact that a vas majority of consumers who would demand 3g coverage would probably be those within the city and not so much those who are within rural areas, My final recommendation would be that any future researcher of this topic would need to research the business model of the current mobile providers in China and compare it with that of the U.S. since the mobile providers in the U.S had a similar problem with the creation of their 3g coverage and was solved by first enabling 3g coverage within cities then slowly expanded the coverage outward.
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