3G devices and beyond: What can we expect?

Indeed, the era of 3G being a generic connectivity protocol across all devices has arrived, and the sub $100 3G phone is just around the corner.

The confluence of factors such as these makes 3G the fastest growing sector within the mobile device market. In fact, Informa Research Services predicts that by the end of 2009, 500 million 3G devices will be in use around the globe.

Before examining the factors affecting 3G hardware design and how these influences might determine future hardware design, let's first define 3G. 3G stands for third generation of wireless networks, combining high-speed mobile access carrying voice and data.

The 3G networks cover a range of network technologies and standards including: WCDMA, HSDPA, CDMA2000, TD-SCDMA, and WiMAX (even though WiMAX may be referred to as a 4G standard in some circles).

Issues driving 3G adoption
What has been driving this adoption of 3G devices? The most referenced factor is the investment in 3G networks by mobile network operators (MNOs) is the quest to drive mobile data services revenue. Most established MNOs still run legacy 2G networks in parallel with the newly deployed 3G networks.

Obviously, the goal of the MNO is to migrate users to 3G not only because of the significant investments made in part by the MNOs for more data service revenues, but because 3G is spectrally more efficient than 2G networks.

To encourage such a transition, low-cost 3G devices must be made available to the mass market. Demographic research has found however, that a majority segment of consumers are not willing to pay a premium for a 3G device.

This shouldn't be a problem when you consider the average selling price (ASP) of a 3G device has dropped precipitously since 2005 (see Figure 1).

Nevertheless, the retail price of a device is highly important in current mature markets where the cost of new handsets are subsidized by MNOs, and in new 3G markets where hardware design issues play a major role in the cost of these devices.

Click here for Figure 1
Figure 1: As the cost of microprocessors has declined, so too, has the overall design cost of portable devices. It is expected that even though 3G devices may offer far more capabilities than 2G, they will be forced to be as low, or lower in price, than many current 2G devices.

Data services affect hardware design issues
MNOs are continuing to promote new and innovative data services as a revenue stream, which has the potential to make up for the falling voice revenue. After a slow start (in part due to the type of content available) the business model is showing increasing promise in data services.

Types of data services showing the most promise include:

• Music downloads
• Location-based services: Mapping/navigation
• Instant messaging
• Web surfing
• Email services
• Widgets
• Gaming

Further, with the wireless market undergoing unprecedented change, 3G OEMs, ODMs, ISVs, and handset integrators will have to bridge a multitude of network technologies and converge a growling list of multimedia applications. All of these dynamics make the platform hardware design even more critical. The aspects of hardware design where this is affected the most include:

• Processor specification: Is a large screen required by the operator in order to create the best service experience?
• Memory: Will more memory have to be provided to deal either with larger applications or to allow downloads of sizable chunks of data?
• Graphics: Will a richer graphical experience be required? Is there an expectation of a quality gaming experience for instance?
• Battery life: How will battery life be affected by these new requirements? What can be done to conserve/manage power consumption?

As multimedia content is quickly becoming the norm, there is no doubt that the MNOs will increasingly rely on multimedia-based services for their stream of revenues. Offering innovative and agile services that attract and retain subscribers will be the hallmark of successful MNOs. Manufacturers then must strive to provide products that enable these new services in the most cost-effective manner possible.