With 2004 predicted to be the year many make their splash in 3G, Keith Dyer tours the continent in search of success stories.

There is little doubt amongst market watchers that 2004 is going to be the year of 3G in Europe. 2003 has seen some progress made, particularly the commercial launches from Hutchison 3G around the continent, and the major national players are expected to follow suit in 2004. Nokia Networks predicts there will be 50 W-CDMA networks in commercial use by the end of 2004, compared to the nine operators currently operating commercial networks.

Jean-Pierre Bienaim, president of the UMTS Forum, says that the industry is in good shape to make 2004 a year to remember, “2003 is the year of the real beginning of 3G in Europe and in 2004 there will be many more. There is now interoperability of the handsets, between the handsets and the network, between networks themselves and handsets availability is better. Most incumbents will launch 2004.” Bienaim also defends the rollout record of the industry, saying the overall rollout timetable is not too dissimilar to 2G. “Suppose most networks are launched by the end of 2005. That is comparable with the length of time to 2G.”

So with 2004 lined up as the year when 3G really makes it mark, which countries are leading the race and where is there more work to be done?

Six licenses were awarded in November 2000 by auction. Original licenses were awarded to Connect, Hutchison 3G, Mannesmann, Max.mobil, Mobilkom and 3G Mobile. Connect is now known as One, and max.mobil is under the T-Mobile umbrella as T-Mobile Austria. The Mannesman’s license has ended up in the hands of tele.ring, after the Vodafone deal with Mannesmann and then the takeover by Western Wireless International Corporation. Two operators have 3G networks launched in Austria. 3, of course is one, and the other is Mobilkom, the two operators have an agreement to let 3’s customers roam onto Mobilkom’s A1network for 2G services. 3 launched in May 2003 into Vienna, Graz and Linz. Mobilkom itself was first to market with an April 2003 commercial launch on a soft launch in September 2002. Mobilkom says that it increased its population coverage to 42%, erecting around 1,000 base stations, with Ericsson and Nortel jointly providing the infrastructure. 

Despite the award in February 2001 of three licenses, nobody has yet made a commercial launch. Proximus (now in the Orange group), Mobistar and KPN were the three successful bidders for licenses. Of these Proximus, a subsidiary of Belgacom Group and Vodafone, claims to have taken the lead, saying that it will have a network launched “by 2005 at the latest,” which puts it ahead of the other market players, it claims. In February 2002, the Minister for Telecommunications, Public Enterprises and Participations decided to postpone for a further year the roll-out of UMTS (as written into the licenses allocated. The technical opening of the network was scheduled to take place before 15 September 2003, with a 30% coverage of the population before January 2006. Missed the first, still time for the second?

The Czech republic can report some progress, with Eurotel the first operator to make public a trial network, in February 2003.  Two out of a possible three licenses were awarded back in December 2001, with RadioMobil, now part of the T-Mobile clan, the other awardee. Eurotel, which has a scaled down four base station trial network in the centre of Prague, supplied by Ericsson. It says it will offer commercial services from January 2005, in line with its license requirements.

In September 2001 three licenses were awarded although many in the Danish industry doubted the country could support three 3G providers. Hutchison is already well on the way to adding Denmark to its list of live operations, again working with Ericsson.

. Orange was forced to reveal Ericsson had not made it to its second round of suppliers, and Nortel, according to Alcatel, has not made the 3G grade at Bouygues, despite being its main 2G supplier. Orange has said it will have ten cities covered by the end of 2004. The others are vaguer and with Vodafone still prowling around SFR that may continue.

Again a case of one of the main countries not exactly racing to market. Blame a fair amount of market wrangling for that, as six initial licenses were awarded at great expense, followed by a rapid consolidation in the market. Mannesman Mobilfunk became Vodafone D2, VIAG fell O2 and Sonera’s Group 3G pulled out altogether. KPN’s E-Plus took over Mobilcom’s UMTS infrastructure in May 13, 2003 — 3,723 UMTS sites, of which 931 are equipped — for EUR 20 million. Vodafone and O2 have both fingered 2004 for launch. Here’s hoping.

EMT, Radiolinja Eesti (the country’s second largest operator) and Tele2 Eesti were issued licenses as recently as July 2003. There is a fourth license un-awarded with will go on auction up until March 2004. your entry fee for starters will be a minimum 70 million kroons. National operator EMT didn’t hang around after winning the license,  making its first UMTS call in September 2003 on a two site trial network. Tinu Grunberg, R&D director at the operator says it is most likely there will be a commercial launch in early 2005.

With Vodafone having formally completed its purchase of Panafon expect things to hot up here this year. Especially with the spur of the Olympics when all eyes will be on the country. Not that Telestet needs any telling. The operator has soft launched a UMTS network, and knows it needs to keep working hard in this ultra-competitive market.

Just as

It seems a little surprising that after being the leading mobile country for so long, Finland can boast no official UMTS networks as yet. After four licenses were awarded in 2001 the big news was the merger of Sonera and Telia in December 2002. Radiolinja and Suomen 3G were the other initial winners. TeliaSonera has had UMTS networks of sorts since January 2002, but not until December 2003 will TeliaSonera have begun its pre-commercial UMTS services — inviting in users from outside of either the operator or its equipment suppliers onto the network. A few hundred users from companies who need the service for their own commercial development are now being asked onto the network to try it out. After they have had their say then the pre-commercial network will be expanded gradually before eventual full commercial launch. Steady as she goes.

 went to press O2’s announcement of the launch of its 3G network in the country was thought to be imminent. Word was that O2 would be launching a limited network in the major cities to a small number of business and consumer customers. Full operation may be as far off as 2005, although there is potential to bring that forward to late 2003 as Hutchison and Vodafone make their presence felt. Vodafone opened its UMTS network in May 2003, making it the first to market, providing a limited number of Nokia 6650 phones to business partners. It now  has 150 3G sites on air, and says it will double that by March 2004. 3 launched in October.

Five players in Italy made the grade for licenses, with the then Omnitel now being part of the Vodafone stable, of course. Italy is another territory for 3 and was one of the company’s first networks off the blocks, in March 2003.
TIM has made a name in Europe as one of the largest buyers of EDGE equipment, making their intentions clear on the road to 3G. Vodafone has launched a business trial for four corporate customers using dual mode GPRS/UMTS data cards on a free trial basis. Available in 13 cities the trial will be extended to 125 cities by the end of April 2004, the operator says, covering about 30% of the population. Wind has launched an i-Mode service in the country, in partnership with DoCoMo, as well as beginning deployment of its UMTS network in a few major cities.

A country slow to realise the beauties of 2G, and whose main manufacturer missed out the party, is keen not to be the bridesmaid this time around. Orange (once FT) and SFR (soon to be Vodafone, if the UK unit gets its way) were awarded initial licenses with Bouygues Telecom following a year later in May 2002. There have been some fun and games with suppliers in France, as detailed in past issues of Mobile Europe. Orange was forced to reveal Ericsson had not made it to its second round of suppliers, and Nortel, according to Alcatel, has not made the 3G grade at Bouygues, despite being its main 2G supplier. Orange has said it will have ten cities covered by the end of 2004. The others are vaguer and with Vodafone still prowling around SFR that may continue.

As far back as July 200 five licenses were awarded in The Netherlands, and since then, what? Ben (now T-Mobile), Dutchtone, (now Orange), KPN Libertel (now Vodafone) and Telfort all made it to the starting line, although it’s easily seen how many changes there have occurred since then. Vodafone Libertel was the first operator in the country to begin UMTS network rollout, covering 20% of the population by September 2003 and following its usual policy of opening up the network to selected business users in the first instance. 

Another country that has undergone considerable changes since the  initial award. Tele2 and Broadband Mobile returned their licenses, one  of which was taken up by Hi3G  Access (Hutchison) Norway, in September 2003. Apart form that there are no commercial UMTS networks  as yet in Norway, despite the  presence of Telenor and Netcom (TeliaSonera).

Licenses were originally awarded to
OniWay (now repealed), Optimus,
Telecel (now Vodafone) and TMN. Vodafone appears to be some way off turning its UMTS license into a network launch, as does TMN. Portugal is being circled by all the infrastructure vendors as they sniff the imminent award of contracts.

Things have moved a little further in Spain, where Telefonica is whetting he appetite of the equipment providers after making it clear it is back on the market for a supplier after being unsatisfied with its original provider. its trial network got underway in October 2003 in a fairly limited way offering UMTS PCMCIA cards to business users.  Telefónica Móviles España  plans to invest around Euro1 billion in 3G infrastructure between 2003-2006. The company’s target is to have coverage in the 52 provincial capitals of Spain by the end of this year and between 7,000 and 8,000 UMTS base stations in 2005.Airtel (Vodafone), Amena, Telefónica Móviles and Xfera are the license holders. Vodafone’s roll-out with its principal supplier Nortel, began in August 2002 but as yet there is no commercial launch. Lucent Technologies has signed an  agreement with the Andalusian Regional Government to deploy a UMTS network for a business and technology park in Seville

Again the entry of Vodafone following its purchase of Europolitan has been a big move, and Sweden is one of the country’s blessed with a live commercial network from 3 (Tre).  Tele2 has partnered with Telis for RAN investment, an example of network sharing that, with regulatory approval, could prove attractive for other smaller players.

Switzerland too was one of the first countries to make the 3 roster, and the market is served by the usual suspect big players, including Orange and  Swisscom Mobile, a Vodafone Live partner 25% owned by Vodafone. Swissscom has over 500 base stations installed to date, providing coverage for over 50% of the Swiss population. Selected users are he;ping Swisscom optimise the UMTS network.
Â

3 is market leader, having launched  in May 2003, the same as in Switzerland. Early complaints about customer service and poor quality phones need to be overcome as Orange, Vodafone, T-Mobile and O2 all look likely to go for launch in 2004. Â

Getting products and services to work together seamlessly is the challenge facing operators. And Operational Support Systems can provide the key to unlocking complex value chains, as Alun Lewis explains

It often seems like the mobile telecoms industry actually enjoys creating problems for itself. While basic voice networks were still being rolled out around the world, engineers were already hard at work, adding advanced content and gaming services to simple connectivity services. As these now start to reach market, they’re adding significant levels of complexity not only to the underlying technologies, but also to the whole multi-dimensional business value model that’s growing out there.

The problem is particularly acute when it comes to the issue of handsets and mobile devices generally. What began as a comparatively simple voice and text terminal is rapidly morphing into a multi-function device that’s starting to resemble a traditional PC in functionality and power. Under the relentless pressure of the Laws of Moore and Metcalfe, both end-users and mobile service providers are now having to confront the implications of these advances. For the user, it’s an issue of how to learn to use this new power effectively in their business and private lives; for the service provider, it’s all about supporting exponentially increased complexity right across the delivery chain of both products and services.

The stakes are certainly high. Get it right and the consumers will come flocking to reliable services offered at reasonable prices. Get it wrong and you’ll end up with unsupportable overheads and failing confidence amongst customers and stakeholders alike.

Over the last year or two, there has been a coming together of the two very different communities involved in the networks and Operations Support Systems (OSSs) areas and the devices. Both have recognised the importance of ‘joined up’ thinking in getting products and services working together as seamlessly as possible, from initial sale, set up and service activation through to ongoing support and upgrades — and both have as much to lose as the other.

At the most basic level, these issues are reflected in how the retail environment for mobiles is being changed. A recent report from the ARC Group highlights how mobile distribution networks will grow more complex over the next five years, with a sharper focus on the consumer as the sales emphasis shifts from hardware to services and new retail channels emerging. One example of this change is given as T-Mobile’s introduction in Germany of multimedia terminals in its stores to sell handsets and demonstrate content services. As Richard Jesty, the report’s author, comments, “This trend towards direct retailing will be strengthened by the emergence of the e-business route to market for mobile products and services. This could include more advanced transactional websites for the mobile consumer, or business focused extranets in the enterprise sector.”

Big driver

One of the big drivers for addressing these problems comes from the introduction of smartphones. Chris Wilkes of LogicaCMG explains, “While the introduction of smartphones has the potential to change the face of modern mobile communications, it is also likely to create additional problems for operators. If operators are to see the predicted data revenues arrive and manage all the extra complexity — which will increase the support costs — then they must ensure that customers have an excellent first time experience. If there are usability problems at  the start of ownership, then these will dissuade others from purchasing smartphones. There’s no point in operators investing in high-value marketing campaigns if the end-user experience is less than satisfactory.

“Technology such as device management and OTP (Over the air Provisioning) can offer operators the tools they need to offer a higher standard of customer service — while at the same time reducing the costs of providing that support. Operators can differentiate by implementing intelligent technology now — and customers can feel safe in the knowledge that their smartphones have just got smarter !”

Issues such as these are driving the development of new solutions for device management, as highlighted by Andrew Wyatt, vice president of marketing at Intuwave, “With operators aiming to get at least of 25 percent of their revenues from data services by 2005, they realise that there are some critical problems to solve in the area of customer support for increasingly intelligent devices. This is particularly true in the smartphone environment where the open platform approach lets users install and run third party applications. In the enterprise, these are often going to be supporting mission critical applications and so need appropriately high customer support levels.

“In this way, they’re becoming just like an enterprise PC or laptop — but the support models set up for these pieces of equipment won’t map over into a mobile world. The central challenge is to find ways of handling device set up and troubleshooting in ways that won’t add extra costs — and that could even actually lower support costs. That’s why we’ve developed tools like our m-Support platform which allows a customer support representative with a standard internet-connected PC to graphically view and control a smartphone remotely, diagnosing and fixing problems for the end user — or helping to train them in the use of its more advanced functions.”

But these are only one particular aspect of the multi-dimensional complexity currently seething out there. Pascal Coutier, senior partner at international consultancy Logan Orviss, sets out other areas of concern: “Among the key issues facing mobile operators are understanding which device — and its associated software — is connecting to its network when they only support and sell a fraction of all devices; or who is the actual user of the service requested by this device. The device itself is part of a complex service delivery value chain and, ironically, is the aspect of the chain that the service provider has least control over…In an ideal world, the service provider would have access to all information about an user, such as what other devices they own and what other services they make use of. However, as an operator can only currently control SIM cards and operator service numbers, this limits their knowledge of a customer to the services associated with a specific SIM.

“If the mobile service provider wishes to know uniquely who is using a specific device, an element of Single Sign-On capability will need to be incorporated. User names and passwords will no doubt be gradually deployed with some data services but, as yet, this is not standard practice.

“Another important issue is ownership of content. If the individual owns several mobile devices and, for example, downloads antivirus software onto one of those devices, does that mean that they can share that software with other devices at no extra cost?

“Finally, with an increased proliferation of embedded devices, the service provider is going to have to decide how services will be activated and how they will be charged to the user. For example, if a user purchases a PDA that already has embedded encryption in the device, the service provider will need to establish some kind of pricing model for activating the security functionality when the end customer demands it. Hence the management challenges for these devices are mounting, whilst operators remain ill-equipped with the kinds of software and systems capable of properly performing these essential management tasks.”

Handset issues

At this point, handset issues start impinging directly on the traditional OSS space and all the other back office systems such as billing. One company targeting the issue of subscriber identity and related management processes is White Obsidian. Their Jonathan Hamblin identifies some key issues: “Whether we like it or not, every device has an identity at several different levels — from the device’s own identity to the identity of the user. This can be leveraged to give the device and the subscriber character and this in turn can be used to enhance the management of both.

“OSSs should control the device based on the identity and the user. By using traditional autometric techniques with the subscriber’s character, the OSS process can devise a method whereby a device can be monitored, auto-repaired, and configured – based on the subscriber identity and requirements. This could be anything from the configuration of the device itself and the provision of services — such as automated handset-based anti-spam functions or remote identity-based address book synchronisation.

“In essence, the OSS sees the subscriber who has the device. The OSS does not need to know that there is a device, just that they have a subscriber and it is associated with the device. An identity-managed solution has information on the associated device in use — either the known device recorded against the subscriber, or the last known device type in use. An Identity Management (IDM) system then manages the handset to ensure that it always holds the correct subscriber driven settings, provided as a generic from the OSS or inherited from within the IDM system through the device type.

“When the subscriber requires a new service, the OSS just tells the IDM system that a new service is required. The IDM has the identity of the subscriber and their devices and so deploys the service remotely, without the OSS needing to know anything about the device. Device management should be an automated, identity-based solution that is managed centrally, but applied in a distributed fashion — without the OSS ever needing to know about the actual devices in use.

“The concept can also be applied to support CRM processes. Here, services can be targeted at individuals or groups of users — but without the CRM system knowing the handset type. Instead, offerings are aimed based on the accumulated identity of the subscriber.” 

A similar approach — that of separating user and device characteristics from the underlying OSS systems — is also advocated by Gareth Senior, CTO at OSS vendor Axiom, “In handling the growing complexity of devices and user identities, it’s useful to be able to put a layer of abstraction into the environment, with a policy platform of some kind able to control and broadcast information on the user and devices to the other systems involved. It will also be important in some situations to also carry information about the location the user is calling from and the limitations that imposes on the services — DSL, WLAN, GPRS and so on. This policy-based information can then be mapped across to the relevant OSS components and applications servers to control service access and keep it consistent, whatever the access methods or device being used.

“Solving these problems is a real challenge. Not only must the environment be incredibly dynamic, but is must also be able to interwork with a wide variety of related components to keep everything up to date.”

As content, applications and devices increase in complexity, the rallying cry of ‘anyplace, anytime’ communications that drive the mobile industry through the 90s is going to have to be revised in the short term to ‘anyplace, anytime — as long as you’ve got the right device and your service provider has invested in the appropriate systems’. Important steps are already underway, but we’ve a ways to go before we achieve the vision of truly ubiquitous services.

IS 3 PUTTING THE WIND UP THE REST?

n amongst the good news, and it was good news, from Vodafone at its half year results was a rather surprising dig at new entrant 3G operator 3.
Aside from all the understandable trumpet blowing on share buy backs and increased divvies, Julian Horn-Smith, chief operating officer, criticised the media for the unwarranted amount of attention 3 was getting, compared to the amount Vodafone receives for all the good work it carries out. It seemed a little out of place at the results announcement, but perhaps the shot was fired in frustration and a growing suspicion amongst mobile operators that 3 is queering the 3G pitch for everyone else. Market perception of third generation services is going to be all important, and nobody wants another ‘surf the net’ WAP style debacle. No doubt 3 would point out that Horn-Smith is a little rattled by its progress, as it continues to sell phones in the run up to Christmas and keeps its advertising campaign inflated.

HAVE LAPTOP,  WILL CONNECT

If there is to be a WAP-reminiscent clash of hype against experience it seems most likely to come from WLAN, on whose behalf Intel and those Centrino adverts have been making great claims. Is there a wireless hotspot at the top of your local mountain? I only ask because viewers in the UK, and in the rest of the continent for all I know, have been treated to a diverting piece in which two intrepid mountaineers boot up their laptop on the top of a rather large hill. Never mind the problems of negotiating the keyboard with those big gloves on, is Intel really trying to plant the seed that WLAN coverage is so ubiquitous it can head wherever you are. As a method for shifting laptops, perhaps it is working, from the point of view of managing user expectations, totally useless.

MOBILE EUROPE ONLINE

We at Mobile Europe are about to experience the reality of managing expectations ourselves as we launch our website in February. Long overdue, some of you have been telling us, while others ask why we are doing it now.
Well, it has become increasingly obvious that, try as we might, and we do try, we simply can’t filter and present all the information we would like to our readers within the pages of this magazine. We will continue to go out and find our own stories and bring them to you in the magazine as we always have done. From February, that information will be complemented by our website, which will carry daily news, as well as a full range of comment, opinion, white papers and top level interviews. The magazine will only be strengthened by the addition of the website, as it will expose us to a far wider audience and enable us to keep our readers as up to date as possible with industry developments. But we understand there is a great desire for the monthly, digestible format of the magazine and we will honour that too. We are excited about the prospects for the combined strengths of the magazine on paper and online and hope you are too. From the 3GSM Congress onwards (23 February)you will be able to find us online at www.mobileeurope.co.uk.