INMA_A01.QXD

 marketing communications (to support purchase and support);


 e-commerce (sale of products on-site);


 brand building – improving brand image by being one of the first suppliers to offer an

innovative service.

Future mobile services

In 2001 new services became available on GPRS (General Packet Radio Service). This is

approximately five times faster than GSM (Global System for Mobile Communications)

and is an ‘always-on’ service which is charged according to usage. Display is still largely

text-based and based on the WAP protocol. Later, a completely new generation (3G) of

services became available in 2003 by UMTS (Universal Mobile Telecommunications

System); with this delivery of sound and images should be possible, enabling continu-

ous, instant access to the Internet (‘always on’). In the UK auctions for the licence to

operate on these frequencies have exceeded £20 billion – such is the perceived impor-

tance of these services to the telecommunications companies (telcos). Many

commentators now believe it will be difficult for the telcos to recoup this money, and

this has resulted in large falls in their share prices.

In the longer term 4Gbroadband mobile communications are under development

and are expected to be introduced first in Japan as early as 2006. As would be expected,

the main distinction over 3G is transmission rates. 4G is currently estimated to yield

increases, reaching 20–40 Mbps (about 10–20 times the current rates of ADSL high-speed

wire-based broadband service).

Figure 3.8 summarises these new standards for mobile access of the Internet. For each

new technology there is a significant range between the lowest and highest possible

transmission speeds. Very often the hype is based on the upper limit, but when imple-

mented only the lower limit is achieved.

TECHNOLOGICAL FACTORS

4G
Fourth-generation
wireless, expected to
deliver wireless
broadband at 20-40
Mbps (about 10-20
times the current rates
of ADSL broadband
service).

Figure 3.8Mobile access technology standards

UMTS

Universal MobileTelecommunications System

EDGE

Enhanced Data Rates for Global Evolution

GPRS

General Packet Radio Service

HSCD

High Speed Circuit Switched Data

GSM

Global System for Mobile Communication

2000

384

384

384

170

43

56

38.4

14.4

9.6

2003

2002

2001

‘3G’

‘2.5G’

2000

1992

K/bits per second