 | Issue: | Latin America IV 1998 |
| Article no.: | 12 | |
| Topic: | Global Standard for Mobile CommunicationsEstablishes All Over the World | |
| Author: | Peter Reinisch | |
| Title: | Director, Marketing Communication and Public Relations | |
| Organisation: | Siemens, Germany | |
| PDF size: | 16KB |
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Article abstract
The overwhelming success of cellular phones is changing the way people communicate with each other worldwide. The GSM standard is the first international mobile standard and now has over 100 million subscribers around the world. Together with the industry, the relevant standardisation bodies are pushing the standardisation for Third Generation Mobile Systems, which will integrate the currently separate worlds of fixed and mobile telecommunications in a digital environment for unlimited communications.
Full Article
Mobile communication is leading the way to the 21st century. The overwhelming success of cellular phones is changing the way people communicate with each other worldwide. The invention of sophisticated digital mobile radio networks has made mobile communication even more popular, and Global system for Mobile Communications (GSM) which was initiated in 1987, has become the leading standard for digital mobile communication with over 100 million subscribers around the world. First International Standard Siemens, as a global supplier of telecommunication equipment for more than 150 years, plays an important role in the market as one of the leading suppliers for entire GSM networks. The company is currently serving more than 100 operators in over 60 countries worldwide; probably most impressive is the fact that today every third mobile connection worldwide is established via Siemens equipment. The GSM standard – supported and developed by Siemens and many other telecommunications companies – is the first international standard that gives subscribers full access to the network of various operating companies in all participating countries. With GSM, voice and signalling information are transmitted digitally for the first time. As development continues, numerous higher-valued services are provided which were formerly available only to subscribers in a few wired or wireless networks. Taking into account that the extraordinary growth of GSM-based systems show no sign of reaching a plateau, it is safe to assume that on entering the year 2000, the numbers will climb beyond 170 million and to almost 300 million users in 2003. Reasons for Growth The main reasons for the enormous growth of GSM networks all over the world are quite easy to determine. Global roaming makes it possible for every GSM subscriber to use his mobile phone in any of the GSM countries, not only to make phone calls but also to be accessed from home on one assigned number. A distant caller does not have to bother finding out where the called party is located at the time of a call. Furthermore, the digital network technology together with the progress in the semiconductor industry made it possible to reduce the weight, size and power consumption of mobile phones. Newly formed operators developed a number of interesting marketing concepts. A strategy adopted by many operators was purchasing mobile phones in bulk and selling them to subscribers at very low prices. Therefore more people could afford to buy mobile phones and become GSM subscribers. The generated airtime paid for subsidising of the mobile phones. In turn, more phones were produced by the industry thus lowering costs and purchasing prices. New services strategically provided by operators who wished to distinguish themselves from their competitors became available. A major success was the introduction of prepaid services like the Prepaid Systems (PPS) developed by Siemens which sent the number of subscribers skyrocketing for many operators within a few weeks. Formation of the GSM MoU In addition, the early forming of the GSM MoU Association which currently represents 293 GSM and Satellite network operators was a major guarantor for success: The rules set made sure that GSM networks and phones were working within the given parameters of the GSM standard, thus ensuring a high quality of service and high reliability. Finally, the recent foundation of the Global Mobile Suppliers Association (GSA) initiated by Siemens and 20 other telecommunication companies, ensures the ongoing success of GSM to becoming a worldwide supported base for mobile telecommunication. There is more to come. To meet future demands of the market, the international standardisation bodies and the GSM operators are continuously working on enhancements. GPRS (General Packet Radio Services) for extended mobile data transmission is going to be introduced soon by Siemens and other vendors. Intelligent Network functions are offering new services like Virtual Private Networks, Friends & Family, Home Zone Tariffing etc. and thus enable operators to make use of alternative marketing chances in the highly competitive GSM market by creating tailor-made solutions which fit the individual needs of the end users. Integrating Separate Worlds Together with the industry, the relevant standardisation bodies are also pushing the standardisation for Third Generation Mobile Systems which will evolve from GSM. The Universal Mobile Telecommunications Systems (UMTS)/International Mobile Telecommunications 2000 (IMT) approach which is strongly supported by Siemens and many other companies should grant the protection of the enormous investment into network infrastructure worldwide as well as the timely introduction of UMTS. Conclusion UMTS will integrate the currently separate worlds of fixed and mobile telecommunications in a digital environment to serve the user as a comprehensive tool for unlimited communications. All kinds of telecomms activities like voice, fax, email, multimedia services will be possible from a mobile terminal, regardless of mobility or environment.
