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Adoption of 3G Mobile Communication Technology in Bangladesh

Adoption of 3G mobile communication technology in Bangladesh

Submitted to Mr. Shamim Ehsanul Haque Lecturer, BRAC Business School, BRAC University, Dhaka.

Submitted by Shankha Nil Dey Suva (ID: 09304165) Oopma Reza (09204043) Farhan Sadik (ID: 07304033) Abdur Rashid (ID: 10104033) Kazi Golam Faisal (ID: 10104072)

Date of Submission: 03 December, 2011

Letter of Transmittal
03 December, 2011

Mr. Shamim Ehsanul Haque, Lecturer, BRAC Business School, BRAC University, Dhaka.

Sir, Here is the report we were to complete as a part of our Business Communication (BUS 201) course requirement. The title of the report is, The adoption of 3G mobile telecommunication technology in Bangladesh. We, the undersigned are hereby submitting the report for you to go through. We remain Sir,

(Shankha Nil Dey Suva - 09304165)

(Oopma Reza - 09204043)

(Farhan Sadik 10104033)

(Abdur Rashid - 07304033)

(Kazi Golam Faisal 10104072)

Contents
Executive Summary....................................................................................................................................... 5 Introduction .................................................................................................................................................. 6 Industrial Standard........................................................................................................................................ 7 Adoption of 3G in different countries........................................................................................................... 9 India .......................................................................................................................................................... 9 USA ............................................................................................................................................................ 9 China ......................................................................................................................................................... 9 New services possible by 3G ....................................................................................................................... 10 Mobile Internet Browsing the Web from Mobile ................................................................................. 10 E-mail services......................................................................................................................................... 11 Messaging services ................................................................................................................................. 11 Bangladesh Perspective .............................................................................................................................. 12 Current Technology................................................................................................................................. 12 Current Subscribers................................................................................................................................. 12 Hand Sets (Mobile Phone Transceivers) available in Market ................................................................. 13 Conclusion ................................................................................................................................................... 13

Executive Summary
Mobile Communication has entered into a new arena through the introduction of modern technology. The technology enables us to talk, download and surf the internet simultaneously through the use of 3G technology. Bangladesh currently utilizes the 2G mobile telecommunication technology. But to improve rapidly in telecommunication sector Bangladesh needs to adopt the 3G technology. There are two distinct families of 3G mobile telecommunication technology. One is American standard CDMA and European standard UTMS. Gradually there will be standardization of the 3G technology which will help to implement a single 3G Mobile telecommunication technology worldwide. As a result the international roaming will be much more convenient form now. The neighboring countries of Bangladesh are implementing the 3G mobile telecommunication technology in their rural areas after securing the service in the major cities. USA is implementing technology which is unofficially termed as 4G. Implementation of technology not only makes our life convenient but makes the business process smoother through better communication. The Government of Bangladesh should be more relaxed in the granting of the license of 3G telecommunication technology. The companies should invest more in this technology which will increase their quality of service and also revenue.

Adoption of 3G mobile telecommunication technology in Bangladesh


Introduction
Mobile telephones are used to exchange voice while on move. But technology has equipped mobile phones with data transmission system also. The 3rd generation mobile telecommunication is a standard which utilizes an advanced technology which meets the International Mobile Telecommunication (IMT-2000) specifications by the international telecommunications union. According to IMT-2000 standards a system will be defined as 3G if it can provide data at peak hour at the rate of 200 Kbit/s. However, many services provide more data rate than the IMT2000 standards at the peak hour. These services are often denoted as 3.5G. 3G mobile communication technology has been adopted at low scale by Japan in October 2001. It was actually a W-CDMA technology which had its reliability under question. Still NTT DoCoMo was the First in the world to adopt the 3G technology in any country. In countries like USA which functions as the harbinger in technology, there are technologies adopted, known as 4G technology. In the neighboring country India and Pakistan all major cities and some of the rural areas are also covered by 3G mobile telecommunication network. In Bangladesh there are six mobile phone operators which provide 2G mobile telecommunication technology. 4G WiMAX data services are provided by 2 operators. The 3G enabled mobile transceivers are already available in the market. But there are initial higher costs to implement 3G networks as all the base station technology need to be replaced. But the main problem in the adoption of 3G technologies in Bangladesh is the indecision of Bangladesh government about the method of selling the license to provide 3G service. Utilities provided by 3G technologies are: Wide area wireless voice telephone, Mobile internet access (higher speed than previous Generation technology), Video Calls, Mobile TV.

Industrial Standard
The mobile telecommunication industry is currently using mainly two standards 1. European GSM and 2. American CDMA. Because of these different technologies used the international roaming is difficult. The adoption of 3G is expected to simplify this because in Europe there are only two standards operating: 1. WCDMA (Wideband Code Division Multiple Access) which will become the European UMTS (Universal Mobile telecommunication System) and the CDMA2000 (Code division Multiple Access). There are other variants of 3G such as NTT DoCoMos Freedom of Mobile Multimedia Access (FOMA) and the Chinese TD-SCDMA (Time Division-Synchronous Code Division Multiple Access), which are also competing for market share. As the TD-SCDMA developed by Siemens and its Chinese partners has suffered technical problems it is not to date ready for commercialization. The WCDMA standard is said to dominate the global market for the next five years. However, 3G networks still require large investment efforts in for example in base stations, in order to provide promised transfer speeds. Efforts are there to standardize the 3G technology. There are two Projects to standardize the 3G mobile telecommunication technology. The 3rd Generation Partnership Project (3GPP) was formed in 1998 to foster deployment of 3G networks that descended from GSM. 3GPP technologies evolved as follows: General Packet Radio Service (GPRS) offered speeds up to 114 Kbps. Enhanced Data Rates for Global Evolution (EDGE) reached up to 384 Kbps. UMTS Wideband CDMA (WCDMA) offered downlink speeds up to 1.92 Mbps. High Speed Downlink Packet Access (HSDPA) boosted the downlink to 14Mbps. LTE Evolved UMTS Terrestrial Radio Access (E-UTRA) is aiming for 100 Mbps. A second organization, the 3rd Generation Partnership Project 2 (3GPP2) -- was formed to help North American and Asian operators using CDMA2000 transition to 3G. 3GPP2 technologies evolved as follows. One Times Radio Transmission Technology (1xRTT) offered speeds up to 144 Kbps. Evolution Data Optimized (EV-DO) increased downlink speeds up to 2.4 Mbps. EV-DO Rev. A boosted downlink peak speed to 3.1 Mbps and reduced latency. EV-DO Rev. B can use 2 to 15 channels, with each downlink peaking at 4.9 Mbps. Ultra Mobile Broadband (UMB) was slated to reach 288 Mbps on the downlink.

With adoption of 3G it is possible to meet one of the basic goals of 3G; to provide global access for the same services. This means creating a truly single, worldwide standard. The International Telecommunication Union (ITU) is working on 3G international standardization through its project IMT-2000 (International Mobile Telecommunications) that aims at setting the global standard for 3G. Thus, it is expected that in the coming years we will have a worldwide standard for 3G. Following Figure shows the various technologies related to 3G and their suitability for mobile users. Beyond 3G, it is predicted that mobile networks and the wireless communication landscape will be based on various technologies, offering seamless mobility with cellular networks. Fourth generation (4G) services will enable broadband wireless communication at home, at the office and on the move. In other words, new networks will make the services provided by the Web and the Internet as well as a variety of other services such as multimedia and entertainment available to mobile users.

Adoption of 3G in different countries


India
11 December 2008, India entered the 3G arena with the launch of 3G enabled Mobile and Data services by Government owned Mahanagar Telephone Nigam Ltd MTNL in Delhi and later in Mumbai. MTNL becomes the first 3G Mobile service provider in India. After MTNL, another state operator Bharat Sanchar Nigam Ltd. (BSNL) launched 3G services on 22 Feb 2009 in Chennai and later launched 3G as Nationwide. The auction of 3G wireless spectrum was announced in April 2010 and 3G Spectrum allocated to all private operators on 1 September 2010. The first Private-sector service provider that launched 3G services is Tata DoCoMo, on November 5, 2010. And the second is by Reliance Communications, December 13, 2010. Vodafone Launched their 3G by mid of March, 2011. Then, Airtel India launched their 3G services on 24 January 2011 in Bangalore and also launched in Delhi & Jaipur on March 4, 2011 (not GSM but only USB estick). Aircel also launched 3G in Kolkata in the month of February. Idea also launched its 3G services in mid April. Other providers like Virgin are expected to launch 3G services by Q1 2011. All the operators provide 3G services on the 2100 MHz band. As of now, the Government owned BSNL is the most successful company with the subscribers of 3G service. It has more than 3 million subscribers of its 3G service. It also has the widest coverage with around 826 cities across the country. The private operators like IDEA and Reliance are increasing their 3G coverage as well as the number of subscribers.

USA
The first commercial United States 3G network was by Monet Mobile Networks, on CDMA2000 1x EV-DO technology, but this network provider later shut down operations. The second 3G network operator in the USA was Verizon Wireless in July 2002 also on CDMA2000 1x EV-DO. AT&T Mobility is also a true 3G UMTS network, having completed its upgrade of the 3G network to HSUPA.

China
China announced in May 2008, that the telecoms sector was re-organized and three 3G networks would be allocated so that the largest mobile operator, China Mobile, would retain

its GSM customer base. China Unicom would retain its GSM customer base but relinquish its CDMA2000 customer base, and launch 3G on the globally leading W-CDMA (UMTS) standard. The CDMA2000 customers of China Unicom would go to China Telecom, which would then launch 3G on the CDMA2000 1x EV-DO standard. This meant that China would have all three main cellular technology 3G standards in commercial use. Finally in January 2009, Ministry of industry and Information Technology of China awarded licenses of all three standards: TD-SCDMA to China Mobile, W-CDMA to China Unicom and CDMA2000 to China Telecom. The launch of 3G occurred on 1 October 2009, to coincide with the 60th Anniversary of the Founding of the People's Republic of China. By August 2011, China Telecom's 3G subscriber has exceeded 23 million.

New services possible by 3G


Mobile Internet Browsing the Web from Mobile
3G will enable mobile access to the Internet in a much better way. There will be simultaneously browsing and voice transmission and downloading. The term mobile Internet, or Internet in mobile, refers to gaining access to the Internet using a handheld, wireless device like a mobile phone or PDA. As 2G networks have been mainly voice-centric with low data transmission capacity, 2.G and 3G will speed up data transmission speeds. However, in 3G networks the data transmission speed is depended upon the number of users accessing the network at the same point of time. Thus, in reality 3G networks rarely offer the theoretical maximum speed. Another question relates to the users need to browse the Web from mobile. Besides the most used mobile Internet services in 2.5G, namely news and entertainment, the question of whether there are any other online services that are preferably used from mobile rather than from other devices such as laptops which have larger screens and also easier to use interfaces with large keyboards, remains open. However, the question of whether users are willing to browse the Internet from mobile phone or PDA becomes unimportant as terminals are only devices, and finally the user judges the terminals and chooses the one he or she prefers. For instance, by using 3G data card users can browse the Internet via their laptop or via a mobile device. The purpose of use dictates the terminal in the end. Research has suggested that the most attractive WAP applications are news,

entertainment, ticketing and reservations, as well as banking. These are actually among the most common online services used with computers as well. To conclude, while many 3G services are operated via the Internet, browsing the Internet from mobile phones or PDAs will not be a mobile version of fixed-line access. In fact, people do not use the Internet in the same way from mobile terminals as they do when accessing the Internet via larger screens from computers. France Telecom Research & Development (2004) predicts that mobile Internet offers the advantage of always being near at hand, and of being a personal tool. On this basis possible successful services might be services developed for traveling purposes like ticketing, checking schedules, traffic reports and related services.

E-mail services
E-mail service was rated as the number one preferred mobile service by the Swedes in 2001, followed by banking and use of encyclopedia. E-mail services can be categorized into Webstyle HTML e-mail services and plain text e-mail services. HTML e-mail services provide more flexibility with the format and appearance while plain text e-mail comprises of a letterstyle message. Although e-mail has become a widely accepted and accessible communications medium during the recent years, there is lack of research about the use of e-mail from mobile devices. For many Internet users, both private and business users, e-mail has been the most common way of exchanging information, documents, and communication. Although e-mail is cheap, easy to access and is asynchronous in nature e-mail services have suffered from the receipt of unsolicited messages or even spam. The fear of receiving unsolicited messages and spam on mobile devices may slow the adoption of e-mail services among mobile users. Secondly, as the first mobile virus news has been reported in media (BBC News, 2003), mobile users might want to protect their mobile devices by avoiding using e-mail services.

Messaging services
Mobile messaging, referring to short message service (SMS) and multimedia message service (MMS), is expected to be the most utilized mobile service in the future. It is estimated that step-by-step consumers as well as business users will upgrade their messaging from sending simple text messages to multimedia messages including pictures and video clips. Although 3G networks will make bandwidth hungry services such as sending, receiving, and downloading video clips possible, there are notable cultural differences in adopting

multimedia messaging services. For example, while the European market has not adopted multimedia messaging to large extent, due to various reasons such as pricing policy and relatively complex usage, Asians have eagerly adopted MMS. On average, while a typical user in Europe sends one to two MMS messages per month, an Asian takes and sends 20-30 MMS messages. Besides SMS and MMS services, instant messaging (IM) on the Internet is one of the most popular services especially among youngsters. The instant messaging service has the potential to be utilized widely among mobile users as the service allows users to send content (e.g. a text message, html page, a picture, a file containing a song, a video clip, or other file) to another user in near-real time. This instant messaging service is combined with presence service, giving the possibility to see if other users are available and reachable.

Bangladesh Perspective
Current Technology
Currently there are 2G GSM (Global System for Mobile Communication) networks operated by five mobile telecommunication networks in Bangladesh. City Cell operates a nationwide 3G CDMA 2000 network capable of delivering super-fast mobile broadband internet service.

Current Subscribers
Currently there are 82 million mobile phone subscribers in Bangladesh.

Hand Sets (Mobile Phone Transceivers) available in Market


There is wide variety of handsets available in the market. The 3G standard is perhaps well known because of a massive expansion of the mobile communications market post-2G and advances of the consumer mobile phone. An especially notable development during this time is the smart phone (for example, the iPhone, and the Android family), combining the abilities of a PDA with a mobile phone, leading to widespread demand for mobile internet connectivity. 3G has also introduced the term "mobile broadband" because its speed and capability make it a viable alternative for internet browsing, and USB Modems connecting to 3G networks are becoming increasingly common.

Conclusion
3G mobile communication technology will boost the economic growth in Bangladesh by increasing the communication between the businesses. 3G technology enhances the speed and
efficiency of the mobile telecommunication network. 3G telecommunication network enables subscribers to talk, download and surf simultaneously. 3G telecommunication network also provides the data service efficiently. So Bangladesh should adopt this technology quickly. Benefit of this technology should be spread over the remote rural places of Bangladesh which will make Bangladesh a more technologically developed country.

References: (1) www.wikipedia.org (2) Contemporary management research