Third
Generation (3G) Mobile Telecommunication
Systems and Studies in Turkey Regarding the Submittal of UMTS Licenses
Birth of the idea pertaining
to the utilisabilty of the electromagnetic waves as a telecommunication tool
and beginning of the relevant studies is by the end of 19th century. In United
States by the end of 1940's and in Europe at the beginning of 1950's the said
studies gave their first fruit -on the subject of initiation of mobile phone
utilisation- by the utilisation of single cell analog vehicle phones. The next
step was taken at the end of 1970's by the utilisation of cellular analog mobile
phones. These systems used first generation (1G) analog 
technology
however, it became a necessity to proceed towards the second generation (2G)
digital technology since they could not meet the requirements of the users that
has increased by time, such as voice quality, capacity and coverage area. The
mobile phones in GSM standards that we are using today are examples of the systems
that use 2G digital technology. The 2G mobile phones were put on the market
in the middle of 1991 and its utilisation became prevalent very rapidly.
Third generation (3G) mobile telecommunication technology forms the next and
third big step following these developments. When it is compared with 2G it
is easily seen that the most striking difference is that this new technology
is focused on the transmission of data rather than voice. 1G and 2G technologies
are not designed for presenting multimedia services to the users. However, status
for 3G is different; by the utilisation of this technology it is envisaged that
high speed internet connection can be provided through mobile phones and as
a result, data, picture, graphics and similar information besides voice can
be transmitted to the users -while they are moving- at such high speeds up to
2Mbit/s which means on "broadband" in other words.
It is estimated that the terminal equipment which is using the 3G technology
will function as a phone, computer, television, beeper, videoconference centre,
newspaper, dairy, agenda and even as a credit card and will be a nonrenouncable
part of the user which he will continuously keep with himself just like his
ID or wallet.
Many countries in the world have started their license studies for the purpose
of using 3G technology and they have proceeded so much. In Europe, it is decided
that all kinds of precautionary measures shall be taken by the European Union
countries for the initiation of the presentation of 3G services latest by January
1, 2002 with resolution nr. 128/1999 EC and within this framework, for the submittal
of 3G licenses as of January 1, 2000, the necessary authorisation system shall
be established.
Turkey got acquainted with 1G mobile telecommunication technology in the year
of 1986 and with the 2G technology in 1994 and before mentioning the studies
that are carried out by the Telecommunication Institution on the subject of
assisting Turkey in acquiring the 3G technology, it will be beneficial to give
some information about the mobile telecommunication sector in Turkey and world.
Mobile
telecommunication sector in Turkey and world
Mobile telecommunication sector has the peculiarity of being one of the most
rapid growing sectors of the world. Today, there are nearly 470 million mobile
phone subscribers in the world and it is estimated that this figure will reach
to 700 million in 2002 and to 1.3 billion by the end of five years.
Today, in USA it is informed that rate of mobile telecommunication penetration
is over 35% and number of wireless systems' subscribers is over 100 million.
Operators on this field have employed nearly 150.000 personnel and they have
provided an income of more than 44 billion U.S. dollars for their country.
According to the report that is prepared by UMTS Forum, it is envisaged that
the rate of mobile telecommunication penetration in Europe will reach to 50%
within the first ten years. It is also envisaged that in the Western Europe
mobile market number of users will reach to 200 million by the end of 2005.
In the same report it is stated that as of 2005, number of mobile multimedia
users in Europe will reach to 32 million and this will bring an annual income
of 34 billion Euros (services and terminal equipment included).
If we make an estimation about the situation that will be constituted in long
term in Europe, it is stated by UMTS Forum that in the year of 2015 the number
of users in European mobile market will reach to 300 million and mobile market
will reach to its climax around the year of 2017.
According to the report which is prepared by the European Union, value of the
European Union telecommunication services market is 200 billion Euros and its
annual growth is around 12.5%. Share of the mobile telecommunication sector
-which has grown at a rate of 38% in the year of 2000- in the total income amount
that is provided from the European Union telecommunication services sector is
nearly 30%.
In the following table, values that are reached/envisaged to be reached regarding
the number of users in the telecommunication sectors of various regions of the
world are presented according to the years (as of the end of the stated years).
Turkey got acquainted
with 1G mobile telecommunication technology in the year of 1986 during the initiation
stage of "Nordic Mobile telephone" (NMT) systems' utilisation in Turkey.
Through NMT, service is furnished to nearly 114.000 subscribers. In the field
of 2G technologies, there are 4 GSM operators already existing in Turkey and
they are; Turkcell, Telsim, Istim and Aycell.
It is already known that GSM operators Turkcell and Telsim are performing preparations
on 3G technology and within this scope, Turkcell have taken steps to provide
the preparation of its 3G infrastructure by Ericsson and Telsim have taken steps
towards Siemens/Motorola for the same purpose. It is stated that Telsim has
gone into a cooperation with Motorola in August, 2000 on the development of
new products that include 3G technologies; besides, has signed an agreement
-of which its potential value is estimated to be over 2 billion U.S. Dollars-
related with the formation of UMTS platform.
According to 8th five-year development plan of State Planning Organisation which
covers the years of 2001-2005, it is estimated that with the existence of Turkcell
and Telsim, number of subscribers have reached to 12 million and subscriber
intensity has reached to 17% as of end of 2000. In the plan it is also estimated
that at the end of the said term number of mobile phone subscribers will reach
to 30.5 million and subscriber intensity will reach to 44%.
Steps
taken on 3G
1G mobile technologies have started to be used in the world at the end of 1970's
and comprise analog cellular mobile telecommunication systems. " Advanced
Mobile Phone Systems" (AMPS) and " Total Access Communication System"
(TACD) which are being used in northern America and "Nordic Mobile Telephone"
(NMT) systems are examples of 1G systems which are still being used and furnish
analog voice transmission service. By the initiation of 1G utilisation, the
mobile market -with an annual growing rate of 30-50%- have reached to a user
number of 20 million in 1990.
Insufficiency of 1G technology in meeting the gradually increasing requirements
of the users such as voice quality, capacity and coverage area together with
the proceedings in semiconductive and microwave technologies made it absolutely
necessary to proceed towards 2G digital technology. The 2G mobile phones were
put on the market in the middle of 1991 and its utilisation became prevalent
very rapidly. The mobile phones that we use today which are on " Global
System for Mobile Communication" (GSM) standards is an example for the
systems that use 2G digital technology. Other than GSM, "Code Division
Multiple Access" (CDMA) and "Personal Digital Communication"
(PDC) can be given as examples for 2G standards. However, GSM constitutes the
2G cellular digital mobile telecommunication standard which is being used most
prevalently with its GSM900, GSM-railway (GSM-R), GSM1800, GSM1900 and GSM400.
As of the end of 1999, number of GSM mobile phone users among 450 million mobile
phones users in 140 countries is over 250 million.
1st stage of the study pertaining to the determination of GSM standards is completed
in 1990 by the European Telecommunication Standards Institute (ETSI). In the
direction of changing technological progresses and requirements, GSM standards
are developed more in the middle of 1990's with stages called 2nd stage, 2nd
stage +. The developed 2G technologies are called as " High Speed Circuit
Switched Data" (HSCSD), "General Packet Radio Service" (GPRS)
and "Enhanced Data Rates in a GSM Environment" (EDGE). The said technologies
are seen as the last steps on the way to 3G and altogether accepted as 2,5G
technologies.
If a comparison will be made with respect to information transfer rate; it is
envisaged that GSM can perform information transfers at the rate of 9.6 kbit/s
with 1st stage, 28.8 kbit/s with HSCSD, 171.2 kbit/s with GPRS, 384 kbit/s with
EDGE and 2 Mbit/s with 3G.
3G
Standards pertaining to 3G mobile telecommunication technology are being developed
by International Telecommunication Union (ITU) and they are altogether called
IMT-2000. "IMT" represents the International Mobile Telecommunication
and 2000 represents both the determined date for the first experimental systems
that are developed in this field and also the frequency area of around 2000
Mhz that is envisaged to be the area on which the systems on these standards
will operate.
Services of IMT-2000 are expected to be universal services. The mentioned universality
can be provided by the detailed determination and adoption of the specifications
on the subject of terrestrial and satellite wireless interfaces. For this reason,
many standards are suggested to the committee of ITU which is active on the
subject of IMT-2000 and at the end of the long studies realised for the purpose
of providing harmony on the subject of adoptation of these standards, in November
2000, IMT-2000 wireless interface standards are determined.
Establishment of services and infrastructures of the "Universal Mobile
Telecommunication Systems" (UMTS) which is within the scope of UTRA ("UMTS
Terrestrial Radio Access) standard is adopted by the European Union. During
the submittal of 3G licences, although it is possible to receive approval for
the utilisation of any of the above mentioned standards, in order to prevent
any kind of problems between the European Union's member countries on the subject
of international roaming, it is accepted by these countries that it is absolutely
necessary to give license to minimum one network that will operate on UTRA standards.
2G-3G
Relation
2G, 2,5G and 3G includes technologies that are completely different from the
analog 1G technology. However, it is envisaged that 3G infrastructures may have
similar parts with the 2G infrastructures and throughout a specific transition
period, services that are similar with 2G and 3G may be presented. In essence,
in the development of 3G networks 2,5G GSM GPRS standards form a base and this
will provide GSM operators with the opportunity of furnishing 3G services by
using the GPRS technology or 3G interfaces.
It is envisaged that after its utilisation is initiated, for the first few years,
coverage area of 3G networks will be smaller according to the coverage area
of GSM networks. For this reason, during the standard determination studies,
subject of 3G networks rendering 2G infrastructure as useable as possible, in
other words, providing the integration of 2G and 3G infrastructures is also
being taken into consideration inorder not to cause a problem in 3G services.
According to estimations, in the coming years mobile subscribers will have terminal
equipment that operate on dual-mode and in this way, they will have access to
all 3G services within the coverage area of 3G and on the regions that are out
of the coverage area of 3G they will have access to the same services at the
rate that is presented by the GSM networks.
3G
Licenses in World
Many countries in the world have proceeded in submitting 3G licenses. Latest
situation of the applications on 3G licenses in many countries are summarised
in the tables placed on the following pages.
Studies
that are being performed by Telecommunication Institution
As the result of the studies performed by our Institution for the preparation
of the Authorisation Plan on UMTS services and infrastructures which are -in
accordance with the additional article 27 of Law nr. 4673 which is put into
force on 23.05.2001- going to be carried out by the execution of Franchise Agreement,
it is evaluated as necessary to perform the studies -in the direction of politics
that are determined by the government within this scope- regarding the determination
of the tender method, license fees and the proper time for the submittal of
the licenses, fixation of the necessary strategies (the most appropriate market
structure) for reaching to targets, analysis of the requirements and the latest
situation of the sector.
It is considered
to be beneficial to know the opinions, approaches, demands and suggestions of
the sections that have a voice in the telecommunication sector such as the operators,
investment companies, content providers, producers and consumers in order to
provide the inclusion of the most proper determinations and suggestions (about
the above emphasised working fields) to the Authorisation Plan that is going
to be prepared.
For this purpose, in order to receive the opinions and suggestions of the sections
regarding the facts on which decisions shall be made and found to be appropriate
related to the subject of UMTS licenses, it is evaluated that it will be appropriate
to establish -under the coordination of our Institution- an "UMTS National
Coordination Committee" that is composed of Ministry of Transportation,
Undersecretariat of Treasury, State Planning Organisation, Committee of Competition,
Directorate of Privatisation Administration, GSM operators, producer companies
and consumer representatives and its first meeting is realised in our Institution
on the date of May 28, 2002.
In this first meeting, performance of the above mentioned studies by the UMTS
National Coordination Committee is approved by the participants and consensus
was provided on the subject of forming a Study Group within the structure of
the Committee and its carrying out the activities within the framework of the
determined working program.
For the maximum benefiting of Turkey from the UMTS technology, it is evaluated
as necessary to perform the studies -in the direction of the politics and targets
that are determined by the government- regarding analysis of the requirements
and the latest situation of the sector, fixation of the necessary strategies
for reaching to targets, determination of the tender method, license fees and
the proper time for the submittal of the licenses.
Within this scope, during the preparation of the Authorisation Plan, which -in
accordance with the legislation- has to be presented to the Ministry of Transportation
by the Telecommunication Institution and which has to be approved by the Council
of Ministers upon the proposal of Ministry of Transportation, UMTS National
Coordination Committee is established by the Telecommunication Institution and
with the participation of the sector in order to provide Turkey with maximum
beneficial decisions that are going to be made on UMTS licenses.