White Paper

EDGE Evolution
The Revolution in end user experience
 White Paper

Contents
Executive summary 3

Setting the Scene 3

GSM continues to be the most successful mobile technology 3
GPRS is today’s most successful mobile packet data technology 4
Continuing strong growth in global EDGE commitments 4

EDGE Evolution based on global 3GPP standard 5

Evolution until 3GPP release 6 5
Evolution starting from 3GPP release 7 onwards 5

Operator EDGE Evolution business drivers 6

More revenues with lower costs and low network impact 6

Conclusions – For better profitability and secure future 6

Glossary 7

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White Paper
Executive summary
From the beginning, GSM has been
developed in phases. New features have
been continuously added to improve
performance and capabilities built upon
the solid foundation of the existing GSM
infrastructure. Voice and data capabilities
have been improved according to the
needs and opportunities of operators
and users.
Standardization has now reached the
3GPP release 6 phase, with many of the
earlier 3GPP release features soon to be
implemented in existing GSM/EDGE
networks. The GSM community sees
further GSM/EDGE evolution as vital to
support the continuity of operations of
single (GSM/EDGE) and multimode
(GSM/EDGE/WCDMA) networks.
Many operators face increasing
competition in mobile markets: fixed to
mobile substitution increases voice traffic,
more users are consuming data services,
attractive new mobile multimedia
services are constantly being launched.
WCDMA (UMTS) has also arrived
stimulating new demand and is now
evolving as well to higher bitrates with
HSPA (High Speed Packet Access), which
is widening the bitrate gap between EDGE
and WCDMA to a point where it again
Setting
the Scene
GSM continues to be the most
successful mobile technology
Today, GSM is by far the most successful
wireless technology and is available in
almost all countries, regions and
territories in the world. There are more
than 600 live GSM networks in more than
200 countries and territories, serving
more than 1.2 billion subscribers with
roaming capabilities in all terminals
(Source: GSA February 2005). The revenue
share of packet data services has
increased considerably and can be close
becomes visible in performance. This is
increasing the pressure for further
performance evolution in GSM bands.
Typically, the existing 800, 900, 1800 and
1900 MHz frequencies are being used at
their optimum and in some cases to their
maximum in urban areas. To handle
more voice and data traffic, additional
BTS sites are needed. Many operators are
also expanding their GSM/EDGE coverage
to remote rural areas where the lower
cost of coverage is the key business
parameter. In addition, operators with
WCDMA are demanding enhanced indoor
GSM/EDGE coverage.
Voice services remain the mainstay of
mobile operators’ revenue. As fixed to
mobile substitution continues and
emerging market operators expand
their network coverage, it is likely that
voice will remain the major component
of revenue for many years to come.
But convergence will not happen
without prices dropping towards the
level of fixed line prices, which means
that voice delivery costs must be reduced
considerably.
Users demand cheaper and more
convenient use of existing applications.
Millions of subscribers
1400
1200
1000
800
600
400
200
0
CDMA GSM
Figure 1. World cellular subscribers by technology – 31 December 2004. Source: Informa Telecoms & Media.
This sets two requirements for network
evolution – faster bitrates and higher
spectral efficiency. Faster bitrates speed
up the user experience, particularly for
heavier applications like corporate email
with attachments, web browsing (http)
and video services. Bitrates can only rise
so far because of latency. Latency or
Round-Trip-Time (RTT) needs to be
reduced to expand beyond the limits set
by the TCP-IP and other high level
protocols. The good news is that light
applications, like WAP browsing or MMS,
also benefit from higher speeds and
reduced latency.
The target for EDGE Evolution is to enable
these enhancements with a low network
impact that will increase the lifecycle of
existing GSM/EDGE hardware and
networks. Users are likely to be willing
to spend more money on more convenient
and higher quality applications, as well
as on new and attractive mobile
terminals required by EDGE Evolution.
This white paper examines EDGE’s
market potential and the benefits of EDGE
Evolution for existing and future new
GSM operators who may have already
migrated to EDGE capable networks or who
are planning to migrate to GPRS/EDGE.
iDEN PDC US TDMA WCDMA Analogue
3
 White Paper

to 15% of operator revenues. This means

that the amount of voice and data traffic Millions of mobile data subscribers
in GSM networks has been increasing 80
rapidly over the last two years. The use GPRS
70
of data is boosted by new users, new
cdma2000 1X
applications and lower costs. Voice usage
60
has been increased by lower costs that EDGE
have encouraged subscribers to use 50
their mobile phones more and has also
enabled people to swap their fixed line 40

phones for mobile phones.

30

As far as we can see today, beyond the 20

next decade, the growth of GSM will
continue strongly, with more subscribers 10

and more GSM operator start ups every

0
year, further increasing GSM’s market Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004
share.
Figure 2. GPRS/EDGE and cdma mobile data subscribers, Source EMC and Nokia, January 2005.
GPRS is today’s most successful
mobile packet data technology
2003 was the breakthrough year for
GPRS services. Today, packet data services
EDGE operator commitments Commercial EDGE networks
are globally offered by nearly 400 GPRS 3 March 2005 3 March 2005
operators (Source: EMC December 2004).
160 80
Virtually all new GSM terminals are
expected to have both GPRS and EDGE in 130
the future. This means that fast growth 61
120 111 60
in data traffic, services portfolio and
revenues will continue into the future.

80 40
Continuing strong growth 34
in global EDGE commitments
EDGE, also known as Enhanced GPRS 40
40 20
(EGPRS) is standardized by 3GPP and,
is fully backwards compatible with GPRS,
offering an average trebling of bitrates 1
over GPRS. 0 0
3Q 2003 3Q 2004 1Q 2005 3Q 2003 3Q 2004 1Q 2005

To date, 130 GSM operators have

committed to EDGE, 28 of which also
have UMTS licenses and WCDMA
technology selected. 51 operators already
offer commercial services over EDGE
(Source: GSA March 2005). There are also
115 operators with UMTS and GSM
licenses (Source: UMTS Forum 2004).
As these operators continue to build
their WCDMA networks there is an
increasing market demand to improve
the performance in GSM frequency
bands for improved service continuity
with WCDMA.
Figure 3. EDGE committed operators and EDGE network launches.
Nokia estimates that by the end of 2005
there will be more than 200 million
EDGE subscribers in the world. Based on
strong increases in industry commitment
and the general market feedback, a very
fast expansion of the EDGE market is
expected. By 2010 there are likely to be:
• More than 400 EDGE operators
• More than 700 million EDGE subscribers

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White Paper

EDGE Evolution based on global 3GPP standard

Evolution until 3GPP release 6
EDGE packet data capabilities are being Downlink Uplink
enhanced by several new features kbps kbps
developed in 3GPP releases 4...6. Some of EDGE Evolution
these have already arrived in networks
and terminals and some are likely to be
EDGE EDGE Evolution
seen in networks and terminals in a few
years time. Some examples:
• faster and better cell re-selections EDGE
with NACC/NCCR
• guaranteed bitrates with Streaming
quality of service (Enhanced QoS)
• shorter RTT by Extended uplink TBF
Mode (EUTM)
• faster WCDMA interoperability with
IS NACC
• faster throughputs with EUTM and
High multislot classes with Extended
Dynamic Allocation (EDA) features Figure 4. Higher bitrates over a broader coverage area.

These enhancements improve the

consistency of service quality, greatly
improving the user experience of all Average bit rates
services, particularly for real time
services such as Video Sharing with Dual
Transfer Mode (DTM) and Push-To-Talk,
but also services like WAP and MMS.

Evolution starting from 3GPP

release 7 onwards
Discussions on further 3GPP work item
candidates for release 7 have been
started by a Nokia initiative in the
Service n
GERAN TSG. Higher bitrates and lower continuity tio
SP
A volu
latency to improve both GPRS and EDGE H
G EE
ED
performance will particularly help with
the introduction of new conversational
WCDMA HSPA GPRS EDGE EDGE
class services like real time video services Evolution
and Voice over IP (VoIP). All other
services will also benefit from further
Figure 5. Natural EDGE/WCDMA co-evolution to meet user demands.
performance evolution.

Additionally, higher bitrates will enable

Internet applications without major
mobile adaptations. Higher bitrates and
latency improvements naturally speed
up all existing and future mobile
applications.
Key technology improvements being
considered in 3GPP include:
• spectral efficiency
• average data rates
• coverage
• latency
EDGE Evolution with new 3GPP work
items will offer the following key
benefits:
• 2–3 fold increase in data speeds,
voice and data capacity and spectral
efficiency
• Halved RTT (latency)
• Enhanced service continuity with
WCDMA/HSPA

5

Operator EDGE Evolution business drivers
More revenues with lower costs
and low network impact
Based on early discussions, EDGE
Evolution will be essential to support
continuity of efficient single GSM/EDGE
and multimode GSM/EDGE/WCDMA
network operations to achieve:
• New revenue opportunities
• Lower cost delivery of services
• The maximum use of existing
GSM/EDGE network investments
• Low GSM/EDGE network impact
• Enhanced service continuity with
WCDMA/HSPA
The typical EDGE impact on monthly ARPU
is an increase of around 1€ compared to
GPRS. This means 10% to 40% higher
data ARPU. Similar gains are also
possible with EDGE Evolution. This may
be a conservative estimate, but in some
markets price competition is the driving
force, which means that EDGE Evolution
can be used as a tool to reduce user
price erosion and at the very least just to
ensure profitability. On the other hand,
lower cost services have increased data
services consumption considerably,
which in some cases has increased data
ARPU.
The standardization design target is for
low network impact, which means,
in practice, software upgrades or minor
hardware modifications to the existing
GSM/EDGE BSS expanding their life time
for years to come. A gradual
implementation of features must also be
possible. In addition, the new features
implementation should enable the use
of existing non-EDGE capable BTSs.
Terminal price depends on the terminal
features and functions. The increase in
terminal costs will probably be similar
to that seen for today’s EDGE terminals
compared to GPRS. The highest
performing terminals are likely to be
only slightly more expensive than
today’s EDGE terminals. This enables
mass markets from the beginning.
6
White Paper
CAPEX €/MB
0.06
Max CAPEX/MB over 6 years
0.05
0.04
0.03
BSS CAPEX with GPRS
0.02
BSS CAPEX with EDGE
0.01
0
20 MB 100 MB 500 MB 1000 MB
Basket size
Figure 6. Operator user prices and estimate on CAPEX per Mbyte.
Conclusions – For better
profitability and secure future
EDGE is a proven and well-known The business case is compelling. In both
technology offering a safe evolution path networks and terminals, EDGE Evolution
for enhanced user experience. offers a low network-impact way to
provide 2–3 folds bit rates and halved
EDGE Evolution addresses the critical latency in enhanced GSM voice coverage
evolution challenges that operators area. Based on today’s experiences in
currently face: global EDGE and WCDMA businesses,
• offer new mobile multimedia services, we can expect this to increase operator
like real time video and VoIP data ARPU by about 40% and to reduce
• faster and more convenient use of all service delivery costs significantly
existing applications compared to EDGE, which may mean the
• more voice and data traffic without key difference in competitive markets.
adding new BTS sites
• expand GSM/EDGE coverage to indoor The future looks bright for the GSM
and new remote rural areas with community staying on the EDGE.
lower costs
• enhance WCDMA/HSPA service
continuity
White Paper

Glossary
DTM
Dual Transfer Mode over GSM/EDGE
enables simultaneous GSM voice and
EDGE data connection. Offers better end
user experience, enables Video Sharing
and improves GSM/EDGE-WCDMA service
continuity.
EDGE
Enhanced Data Rates for Global Evolution.
One of the 3G technologies standardized
by ITU and 3GPP. Also known as
Enhanced GPRS (EGPRS). Offering peak
data user rates up to 473 kbps. Includes
features standardized in ETSI and 3GPP
releases 99, 4, 5 and 6.
EDGE Evolution
Will be standardized by 3GPP in release
7 and forwards. Can be implemented to
existing EDGE capable GSM networks
with low network impact. 2–3 folds
average EDGE bitrates and halves the
latency (RTT). EDGE Evolution capable
terminals and networks are backwards
compatible with EDGE equipment and
solutions.
RTT
Round Trip Time (latency)
HSPA
WCDMA packet data evolution, typically
implemented with software upgrade to
existing WCDMA networks. High Speed
Packet Access (HSPA), includes both
HSDPA (downlink) and HSUPA (uplink)
components.
NACC
Network Assisted Cell Change (NACC)
reduces the cell re-selection time for
average 2 seconds down to 700–800 ms
level.

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Nokia and Nokia Connecting People are registered trademarks of Nokia Corporation. Nokia product names are either trademarks or registered trademarks of Nokia.
Other product and company names mentioned herein may be trademarks or trade names of their respective owners.

7
 A reliable
partner for long
term success
Selecting a partner to supply EDGE
Evolution to your current GSM, GSM/GPRS
or GSM/EDGE network is a major decision
that needs great care. Many business
aspects need to be evaluated. Experience
in GSM/EDGE and WCDMA/HSPA networks
is vital. Most importantly, experience and
capabilities in building, optimizing and
operating EDGE networks, as well as an
understanding of user services coupled
with strong standardization and R&D
resources, are crucial for successful early
launches.

Nokia is by far the leading EDGE

provider, first in many markets and
having delivered more EDGE networks
and terminals than any other vendor.

In addition, Nokia has carried out more

Copyright © 2005 Nokia. All rights reserved. Nokia and Nokia Connecting People are registered trademarks of Nokia Corporation.

GSM modernization projects than any

other vendor.
Other product and company names mentioned herein may be trademarks or trade names of their respective owners.

With Nokia EDGE Evolution solutions,

you can again increase your current
business and improve user experience
with a renewed services portfolio,
lower costs and better services quality.

Nokia firsts with EDGE

• First EDGE call made in 2001
• First global volume EDGE hardware
deliveries in 2001
• First EDGE phone, Nokia 6200, launched
in 2002
Products are subject to change without notice.
Nokia code: 11246 – 0305 Indivisual/Libris

• First ready with global end-to-end

EDGE solution in 2003
• First EDGE-WCDMA terminal, Nokia 6630,
launched in 2004
• First EDGE-WCDMA handover in a
commercial network in 2004
• First to launch and demonstrate DTM
network solution over GSM/EDGE in 2005

For Nokia EDGE references, please visit

www.nokia.com/networks/references

NOKIA CORPORATION
Networks
P.O. Box 300
FIN-00045 NOKIA GROUP, Finland
Phone: +358 (0) 7180 08000
www.nokia.com