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The Wireless Industry

The Wireless Industry. Caroline Simard Com 137/237. History (http://www.privateline.com/PCS/history4.htm). The Photophone, 1880 An early attempt! 1888: discovery by Heinrich Hertz that electricity travels in waves through the atmosphere Marconi – development of radio and telegraph

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The Wireless Industry

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  1. The Wireless Industry Caroline Simard Com 137/237

  2. History (http://www.privateline.com/PCS/history4.htm) The Photophone, 1880 An early attempt! 1888: discovery by Heinrich Hertz that electricity travels in waves through the atmosphere Marconi – development of radio and telegraph 1894-1901

  3. History (cont) • Marconi’s wireless telegraph, 1901 and Ericsson’s car telephone

  4. History • Mobile radios, 1920s • Voice radio telephone, Bell Labs, 1924

  5. History (cont) 1927 Radio Act: Spectrum regulated • ATT 1946 mobile radio service • Cellular Bell Lab invention DH Ring • Monopoly context

  6. History • 1950s – little mobile radio R&D  spectrum policy • 1964 – AT&T introduces IMTS • 1967 – NTT proposes nation wide cellular phone system for Japan • 1967 – Nokia group formed • 1972 - Bell Labs patent for cellular tech approved – 6 year delay before the FCC lets ATT trial

  7. Regulatory and competitive pressures for cellular emergence • Radio-telephony – fight from the radio common carriers • Push for equal access competition • ATT trial approval

  8. Cellular

  9. Cellular (2) • Higher frequency  equipment more costly but smaller antennas • More subject to blocking but penetrate walls more easily • Best for urban areas where building penetration and high levels of frequency reuse necessary • Lower frequency • Better for covering wide areas where frequency reuse is not as important

  10. The impact of the breakup • 1982/1984 – ATT Breakup – liberalization trend • Cellular allocated to RBOCs – split of markets • Only Pacific Telesis – Airtouch pursues cellular (spinoff)

  11. Standard Evolution • 1981 – Nordic Mobile Telephone Service • First multinational cell system • GSM – 1991 -- digital standard – effort of national PTTs • 1990s TDMA in US • Telecom deregulation trends worldwide and increased competition

  12. An industry driven by standards • Standard evolution and path dependence: • AMPS – 1st Generation • AT&T and Motorola trials in 1979 • GSM + TDMA – 2nd Generation (and 2.5G) • TDMA – improvement over AMPS – path dependence • GSM – governmental and industry effort, 1987 • CDMA … in various flavors – 2.5 and 3 G • A US driven effort (Qualcomm) • 3G wars

  13. Adoption and spectrum scarcity • Mid 1990s spectrum for PCS auctioned • More spectrum still needed for 3G

  14. Reallocation of spectrum from government to nongovernmental uses Allocation of more spectrum for mobile rather than fixed applications Use of auctions to assign spectrum Increased licensee flexibility in use of spectrum Increased competition Regulatory Trends over time

  15. Why the US lag? • Innovation subjected to ATT decisions • Competency Trap • Timing of breakup • Spectrum Policy • Standard Policy US: laissez-faire Europe: government mandate

  16. 3G • Standard Wars  whose interests are at stake? • What is the effect of licensing/auctioning versus using unlicensed spectrum?

  17. Competing/complementary techs? • Bluetooth • WiFi (unlicensed UHF band)

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