“YES 2 GPRS”

White Paper
February 2001

www.mobileGPRS.com
 Contents
The full GPRS report, “YES 2 GPRS” is divided into the following sections:

Preface 2
Issue History 2
Key Changes in the new edition 2
1. GPRS Latest Status Update 12
Aims 14
Audience 14
Authors 14
Part 1 –GPRS Features 16
2. Key User Features of GPRS 16
Speed 16
Immediacy 16
New Applications, Better Applications 17
Service Access 17
3. Key Network Features of GPRS 18
Packet Switching 18
Spectrum Efficiency 19
Internet Aware 20
4. Limitations of GPRS 20
No Direct GPRS Mobile Terminate Support by Terminals 20
Limited Cell Capacity for all Users 21
Speeds Much Lower in Reality 22
Suboptimal Modulation 22
Transit Delays 22
No Store and Forward 23
CDMA Comparison 23
5. Mobile Lifestreams’ Rules of Nonvoice Services 23
Nonvoice First Rule 23
Nonvoice Second Rule 24
Nonvoice Third Rule 24
6. Timescales for GPRS 24
7. The Standards for GPRS 25
ETSI 25
Competition and Cooperation 26

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 The Standards 27
Part 2 –GPRS Network Infrastructure 28
8. GPRS Network Nodes 28
Gateway GPRS Support Node (GGSN) 28
Serving GPRS Support Node (SGSN) 29
Additional Changes to Enable GPRS 30
GPRS Interfaces 31
9. GPRS Call Flow 32
Transmission Control Protocol/Internet Protocol (TCP/IP) 32
GPRS Attach and Detach 33
At the GGSN 33
At the SGSN 34
At the BSS 35
At the GPRS Mobile Station 35
10. General GPRS Network Features 36
GPRS Backbone Network Types 36
GPRS Point to Point Service Description 37
Interworking 38
Security 38
11. Specific GPRS User Features 39
Channel Coding Schemes 39
Cell Capacity Impact from GPRS 40
Quality of Service 42
Billing 44
Charging 45
12. GPRS Future Enhancements 47
Point to Multipoint Services 47
Enhanced GPRS (E-GPRS) 47
Part 3 – Comparing GPRS to Existing Nonvoice GSM Services 49
13. Comparison between GPRS and SMS 49
Destinations 50
Service Design 50
Message Length 51
Channel 51
Delivery Status 51
The Future of SMS 52
SMS Disadvantages 52

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 Service Summary 53
GPRS/SMS Interconnection 54
14. Comparison between GPRS and Circuit Switched Data 56
Mobile Data Underperformance so far 56
Switching 57
Speed 58
Connection Type 59
Concurrency 60
Pricing 60
15. High Speed Circuit Switched Data (HSCSD) 61
Part 4 – Comparing GPRS to other advanced GSM nonvoice services 63
16. Enhanced Data rates for Global Evolution (EDGE) 64
17. Third Generation (3G) 66
Introduction 66
Background 66
Three Modes 67
Data 67
Migration from GPRS to 3G 68
Timescales 68
18. A Comparison Between GPRS and cdmaOne Pack Data 68
Defining the Market 69
Summary 74
19. Predictions for Success 75
Support for Standards 75
Infrastructure Vendors 75
Terminal Vendors 75
Competitors 75
Application Developers 75
Customers 76
Likelihood of Success 76
Optimal Network Migration Path 77
Part 5 – Applications 78
20. Corporate Applications 78
Job Dispatch 78
Remote Point of Sale 79
Customer Service 80
Remote Monitoring Such as Meter Reading 81

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 Vehicle Positioning 84
Corporate Email 87
Remote LAN Access 89
File Transfer 89
Web Browsing 90
Document Sharing/Collaborative Working 91
Audio 91
Still Images 93
Moving Images 93
Home Automation 95
21. Consumer Applications 96
Simple Person to Person Messaging 96
Voice and Fax Mail Notifications 97
Unified Messaging 97
Internet Mail 99
Prepayment 100
Ringtones 102
Mobile Commerce 103
Affinity Programs 104
Mobile Banking 105
Chat 106
Instant Messaging 107
Information Services 109
Summary 113
22. Optimal Bearer by Application 113
23. Initial GPRS Traffic Generators 116
Part 6 – GPRS Infrastructure Vendors 117
24. GPRS Infrastructure Selection Criteria 117
Design 117
Performance and Scalability 118
Supplier Type 119
Availability and Resilience 120
Connectivity 121
Pricing 122
Local Factors 122
25. GPRS Infrastructure Suppliers 123
ALCATEL 124

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 ERICSSON 128
LUCENT TECHNOLOGIES 135
MOTOROLA 138
NOKIA 141
NORTEL NETWORKS 147
SIEMENS 151
SYMMETRY COMMUNICATIONS 154
26. Comparison of GPRS Infrastructure Suppliers 156
Design 156
Contracts 157
Interfaces 157
Data 157
Airlinks 158
Acquisitions 158
27. GPRS Contracts Awarded 159
Western Europe 159
Eastern Europe 161
Middle East 162
Africa 162
Asia 162
North America 163
28. GPRS Suppliers Market Share 164
Western Europe 164
Eastern Europe 165
Middle East 165
Asia 166
North America 166
Africa 167
Global 167
29. Associated GPRS Suppliers 167
Cisco Systems 168
Part 7 – Related GPRS Elements 169
30. GPRS Devices 169
Three Classes of GPRS Mobile Stations 170
Device Types 170
Interfacing Terminal Equipment with Mobile Stations via at Commands 173
31. Towards Application Centric Devices 173

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 Information Appliances 174
Nonvoice Third Rule 176
Mobile Terminal Design Trends 176
Application Centric Device Examples 177
Summary 178
32. Wireless Protocols 178
Background 178
SIM Application Toolkit 179
Wireless Application Protocol (WAP) 180
Mobile Station Application Execution Environment (MExE) Significance for GPRS 183
Part 8 – Mobile Data Around the World 185
33. Mobile Data Services in the USA 185
CDMA 185
TDMA 186
Public Data Networks in the US 188
CDPD 188
34. Mobile Data Services in Japan 190
35. BT Cellnet, UK 191
36. T-Mobil Germany GPRS Questionnaire 195
37. Vodafone Airtouch, UK 197
Vodafone’s View of GPRS 197
Part 9 – Deploying GPRS 199
38. Solution Priorities 199
Terminals 199
Protocols 200
Technologies 200
Services 200
Applications 200
39. The Nonvoice Mobile Value Chain 201
Network Operators 201
Customers 202
Application Developers 202
Terminal/Infrastructure Vendors 203
IT/Mobile Channels 203
40. Nonvoice Market Segmentation 204
Consumer 205
Corporate Horizontal 205

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 Corporate Vertical 205
Automation 205
41. Network Operators Guide to Maximizing Returns from GPRS 206
Choose the Right GPRS Infrastructure Supplier 206
Choose Popular Applications and Services 206
Setup a Business Partners Program 207
Remember Simplicity 207
Price Them Correctly 208
Enable all Potential Users 208
Educate and Inform Customers 209
Educate and Inform the Mobile Workers 209
42. Delivering Data Customer Service 211
43. Summary 213
44. Links to Related Internet Sites 214

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1. Key User Features of GPRS
The General Packet Radio Service (GPRS) is a new nonvoice value added service that allows
information to be sent and received across a mobile telephone network. It supplements today’s
Circuit Switched Data and Short Message Service. GPRS is NOT related to GPS (the Global
Positioning System), a similar acronym that is often used in mobile contexts. GPRS has several
unique features which can be summarized as:

SPEED

Theoretical maximum speeds of up to 171.2 kilobits per second (kbps) are achievable with
GPRS using all eight timeslots at the same time. This is about three times as fast as the data
transmission speeds possible over today’s fixed telecommunications networks and ten times as
fast as current Circuit Switched Data services on GSM networks. By allowing information to be
transmitted more quickly, immediately and efficiently across the mobile network, GPRS may
well be a relatively less costly mobile data service compared to SMS and Circuit Switched Data.

IMMEDIACY
GPRS facilitates instant connections whereby information can be sent or received immediately as
the need arises, subject to radio coverage. No dial-up modem connection is necessary. This is
why GPRS users are sometimes referred to be as being “always connected”. Immediacy is one of
the advantages of GPRS (and SMS) when compared to Circuit Switched Data. High immediacy
is a very important feature for time critical applications such as remote credit card authorization
where it would be unacceptable to keep the customer waiting for even thirty extra seconds.

NEW APPLICATIONS, BETTER APPLICATIONS

GPRS facilitates several new applications that have not previously been available over GSM
networks due to the limitations in speed of Circuit Switched Data (9.6 kbps) and message length
of the Short Message Service (160 characters). GPRS will fully enable the Internet applications
you are used to on your desktop from web browsing to chat over the mobile network. Other new
applications for GPRS, profiled later, include file transfer and home automation- the ability to
remotely access and control in-house appliances and machines.

SERVICE ACCESS

To use GPRS, users specifically need:

• a mobile phone or terminal that supports GPRS

• a subscription to a mobile telephone network that supports GPRS

• use of GPRS must be enabled for that user. Automatic access to the GPRS may be
allowed by some mobile network operators, others will require a specific opt-in

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 • knowledge of how to send and/ or receive GPRS information using their specific model
of mobile phone, including software and hardware configuration (this creates a customer
service requirement)

• a destination to send or receive information through GPRS. Whereas with SMS this was
often another mobile phone, in the case of GPRS, it is likely to be an Internet address,
since GPRS is designed to make the Internet fully available to mobile users for the first
time. From day one, GPRS users can access any web page or other Internet applications-
providing an immediate critical mass of uses.

Having looked at the key user features of GPRS, lets look at the key features from a network
operator perspective.

2. Key Network Features of GPRS

PACKET SWITCHING

GPRS involves overlaying a packet based air interface on the existing circuit switched GSM
network. This gives the user an option to use a packet-based data service. To supplement a
circuit switched network architecture with packet switching is quite a major upgrade. However,
as we shall see later, the GPRS standard is delivered in a very elegant manner- with network
operators needing only to add a couple of new infrastructure nodes and making a software
upgrade to some existing network elements.

With GPRS, the information is split into separate but related “packets” before being transmitted
and reassembled at the receiving end. Packet switching is similar to a jigsaw puzzle- the image
that the puzzle represents is divided into pieces at the manufacturing factory and put into a
plastic bag. During transportation of the now boxed jigsaw from the factory to the end user, the
pieces get jumbled up. When the recipient empties the bag with all the pieces, they are
reassembled to form the original image. All the pieces are all related and fit together, but the way
they are transported and assembled varies. The Internet itself is another example of a packet data
network, the most famous of many such network types.

SPECTRUM EFFICIENCY

Packet switching means that GPRS radio resources are used only when users are actually sending
or receiving data. Rather than dedicating a radio channel to a mobile data user for a fixed period
of time, the available radio resource can be concurrently shared between several users. This
efficient use of scarce radio resources means that large numbers of GPRS users can potentially
share the same bandwidth and be served from a single cell. The actual number of users supported
depends on the application being used and how much data is being transferred. Because of the
spectrum efficiency of GPRS, there is less need to build in idle capacity that is only used in peak
hours. GPRS therefore lets network operators maximize the use of their network resources in a
dynamic and flexible way, along with user access to resources and revenues.

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GPRS should improve the peak time capacity of a GSM network since it simultaneously:

• allocates scarce radio resources more efficiently by supporting virtual connectivity

• migrates traffic that was previously sent using Circuit Switched Data to GPRS instead, and

• reduces SMS Center and signalling channel loading by migrating some traffic that previously
was sent using SMS to GPRS instead using the GPRS/ SMS interconnect that is supported by
the GPRS standards.

INTERNET AWARE

For the first time, GPRS fully enables Mobile Internet functionality by allowing interworking
between the existing Internet and the new GPRS network. Any service that is used over the fixed
Internet today- File Transfer Protocol (FTP), web browsing, chat, email, telnet- will be as
available over the mobile network because of GPRS. In fact, many network operators are
considering the opportunity to use GPRS to help become wireless Internet Service Providers in
their own right.

The World Wide Web is becoming the primary communications interface- people access the
Internet for entertainment and information collection, the intranet for accessing company
information and connecting with colleagues and the extranet for accessing customers and
suppliers. These are all derivatives of the World Wide Web aimed at connecting different
communities of interest. There is a trend away from storing information locally in specific
software packages on PCs to remotely on the Internet. When you want to check your schedule or
contacts, instead of using something like “Act!”, you go onto the Internet site such as a portal.
Hence, web browsing is a very important application for GPRS.

Because it uses the same protocols, the GPRS network can be viewed as a sub-network of the
Internet with GPRS capable mobile phones being viewed as mobile hosts. This means that each
GPRS terminal can potentially have its own IP address and will be addressable as such.

SUPPORTS TDMA AND GSM

It should be noted right that the General Packet Radio Service is not only a service designed to
be deployed on mobile networks that are based on the GSM digital mobile phone standard. The
IS-136 Time Division Multiple Access (TDMA) standard, popular in North and South America,
will also support GPRS. This follows an agreement to follow the same evolution path towards
third generation mobile phone networks concluded in early 1999 by the industry associations that
support these two network types.

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3. Limitations of GPRS
It should already be clear that GPRS is an important new enabling mobile data service which
offers a major improvement in spectrum efficiency, capability and functionality compared with
today’s nonvoice mobile services. However, it is important to note that there are some limitations
with GPRS, which can be summarized as:

LIMITED CELL CAPACITY FOR ALL USERS

GPRS does impact a network’s existing cell capacity. There are only limited radio resources that
can be deployed for different uses- use for one purpose precludes simultaneous use for another.
For example, voice and GPRS calls both use the same network resources. The extent of the
impact depends upon the number of timeslots, if any, that are reserved for exclusive use of
GPRS. However, GPRS does dynamically manage channel allocation and allow a reduction in
peak time signalling channel loading by sending short messages over GPRS channels instead.

RESULT: NEED FOR SMS as a complementary bearer that uses a different type of radio
resource.

SPEEDS MUCH LOWER IN REALITY

Achieving the theoretical maximum GPRS data transmission speed of 172.2 kbps would require
a single user taking over all eight timeslots without any error protection. Clearly, it is unlikely
that a network operator will allow all timeslots to be used by a single GPRS user. Additionally,
the initial GPRS terminals are expected be severely limited- supporting only one, two or three
timeslots. The bandwidth available to a GPRS user will therefore be severely limited. As such,
the theoretical maximum GPRS speeds should be checked against the reality of constraints in the
networks and terminals. The reality is that mobile networks are always likely to have lower data
transmission speeds than fixed networks.

RESULT: Relatively high mobile data speeds may not be available to individual mobile users
until Enhanced Data rates for GSM Evolution (EDGE) or Universal Mobile Telephone System
(UMTS) are introduced.

SUBOPTIMAL MODULATION

GPRS is based on a modulation technique known as Gaussian minimum-shift keying (GMSK).

EDGE is based on a new modulation scheme that allows a much higher bit rate across the air
interface- this is called eight-phase-shift keying (8 PSK) modulation. Since 8 PSK will also be
used for UMTS, network operators will need to incorporate it at some stage to make the
transition to third generation mobile phone systems.

RESULT: NEED FOR EDGE.

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TRANSIT DELAYS

GPRS packets are sent in all different directions to reach the same destination. This opens up the
potential for one or some of those packets to be lost or corrupted during the data transmission
over the radio link. The GPRS standards recognize this inherent feature of wireless packet
technologies and incorporate data integrity and retransmission strategies. However, the result is
that potential transit delays can occur.

Because of this, applications requiring broadcast quality video may well be implemented using
High Speed Circuit Switched Data (HSCSD). HSCSD is simply a Circuit Switched Data call in
which a single user can take over up to four separate channels at the same time. Because of its
characteristic of end to end connection between sender and recipient, transmission delays are less
likely.

RESULT: NEED FOR HSCSD.

NO STORE AND FORWARD

Whereas the Store and Forward Engine in the Short Message Service is the heart of the SMS
Center and key feature of the SMS service, there is no storage mechanism incorporated into the
GPRS standard, apart from the incorporation of interconnection links between SMS and GPRS.

RESULT: NEED FOR SMS.

4. Timescales for GPRS

When a new service is introduced, there are a number of stages before it becomes established.
GPRS service developments will include standardization, infrastructure development, network
trials, contracts placed, network roll out, availability of terminals, application development, and
so on. These stages for GPRS are:

Date Milestone
Throughout Network operators place trial and commercial contracts for GPRS
1999 infrastructure
2000 Incorporation of GPRS infrastructure into GSM networks

Summer of -First trial GPRS services become available. Typical single user
2000 throughput is likely to be 28 kbps.
BT Cellnet and T-Mobil both launched trial services
Start of 2001 Basic GPRS capable terminals begin to be available in commercial
quantities
Throughout -Network operators launch GPRS services commercially and roll out
2001 GPRS.
-Vertical market and executive GPRS early adopters begin using it
regularly for nonvoice mobile communications

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2001/2 -Typical single user throughput is likely to be 56 kbps.
-New GPRS specific applications, higher bitrates, greater network
capacity solutions, more capable terminals become available, fuelling
GPRS usage
2002 -Typical single user throughput is likely to be 112 kbps.
-GPRS Phase 2/ EDGE begins to emerge in practice

2002 GPRS is routinely incorporated into GSM mobile phones and has
reached critical mass in terms of usage. (This is the equivalent to the
status of SMS in 1999)
2002/3 UMTS arrives commercially

Like the GSM standard itself, GPRS will be introduced in phases. Phase 1 is expected to be
available commercially in the year 2000/1. Point to Point GPRS (sending information to a single
GPRS user) will be supported, but not Point to Multipoint (sending the same information to
several GPRS users at the same time). GPRS Phase 2 is not yet fully defined, but is expected to
support higher data rates through the possible incorporation of techniques such as EDGE
(Enhanced Data rates for GSM Evolution), in addition to Point-to-Multipoint support.

5. Applications for GPRS

A wide range of corporate and consumer applications are enabled by nonvoice mobile services
such as SMS and GPRS. This section will introduce those that are particularly suited to GPRS.

CHAT

Chat can be distinguished from general information services because the source of the
information is a person with chat whereas it tends to be from an Internet site for information
services. The “information intensity”- the amount of information transferred per message tends
to be lower with chat, where people are more likely to state opinions than factual data. In the
same way as Internet chat groups have proven a very popular application of the Internet, groups
of likeminded people- so called communities of interest- have begun to use nonvoice mobile
services as a means to chat and communicate and discuss.

Because of its synergy with the Internet, GPRS would allow mobile users to participate fully in
existing Internet chat groups rather than needing to set up their own groups that are dedicated to
mobile users. Since the number of participants is an important factor determining the value of
participation in the newsgroup, the use of GPRS here would be advantageous. GPRS will not
however support point to multipoint services in its first phase, hindering the distribution of a
single message to a group of people. As such, given the installed base of SMS capable devices,
we would expect SMS to remain the primary bearer for chat applications in the foreseeable
future, although experimentation with using GPRS is likely to commence sooner rather than
later.

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TEXTUAL AND VISUAL INFORMATION

A wide range of content can be delivered to mobile phone users ranging from share prices, sports
scores, weather, flight information, news headlines, prayer reminders, lottery results, jokes,
horoscopes, traffic, location sensitive services and so on. This information need not necessarily
be textual- it may be maps or graphs or other types of visual information.

The length of a short message of 160 characters suffices for delivering information when it is
quantitative- such as a share price or a sports score or temperature. When the information is of a
qualitative nature however, such as a horoscope or news story, 160 characters is too short other
than to tantalize or annoy the information recipient since they receive the headline or forecast but
little else of substance. As such, GPRS will likely be used for qualitative information services
when end users have GPRS capable devices, but SMS will continue to be used for delivering
most quantitative information services. Interestingly, chat applications are a form of qualitative
information that may remain delivered using SMS, in order to limit people to brevity and reduce
the incidence of spurious and irrelevant posts to the mailing list that are a common occurrence on
Internet chat groups.

STILL IMAGES

Still images such as photographs, pictures, postcards, greeting cards and presentations, static web
pages can be sent and received over the mobile network as they are across fixed telephone
networks. It will be possible with GPRS to post images from a digital camera connected to a
GPRS radio device directly to an Internet site, allowing near real-time desktop publishing.

MOVING IMAGES

Over time, the nature and form of mobile communication is getting less textual and more visual.
The wireless industry is moving from text messages to icons and picture messages to
photographs and blueprints to video messages and movie previews being downloaded and on to
full blown movie watching via data streaming on a mobile device.

Sending moving images in a mobile environment has several vertical market applications
including monitoring parking lots or building sites for intruders or thieves, and sending images
of patients from an ambulance to a hospital. Videoconferencing applications, in which teams of
distributed sales people can have a regular sales meeting without having to go to a particular
physical location, is another application for moving images.

WEB BROWSING

Using Circuit Switched Data for web browsing has never been an enduring application for
mobile users. Because of the slow speed of Circuit Switched Data, it takes a long time for data to
arrive from the Internet server to the browser. Alternatively, users switch off the images and just
access the text on the web, and end up with difficult to read text layouts on screens that are
difficult to read from. As such, mobile Internet browsing is better suited to GPRS.

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DOCUMENT SHARING/ COLLABORATIVE WORKING

Mobile data facilitates document sharing and remote collaborative working. This lets different
people in different places work on the same document at the same time. Multimedia applications
combining voice, text, pictures and images can even be envisaged. These kinds of applications
could be useful in any problem solving exercise such as fire fighting, combat to plan the route of
attack, medical treatment, advertising copy setting, architecture, journalism and so on. Even
comments on which resort to book a holiday at could benefit from document sharing to save
everyone having to visit the travel agent to make a decision. Anywhere somebody can benefit
from having and being able to comment on a visual depiction of a situation or matter, such
collaborative working can be useful. By providing sufficient bandwidth, GPRS facilitates
multimedia applications such as document sharing.

AUDIO

Despite many improvements in the quality of voice calls on mobile networks such as Enhanced
Full Rate (EFR), they are still not broadcast quality. There are scenarios where journalists or
undercover police officers with portable professional broadcast quality microphones and
amplifiers capture interviews with people or radio reports dictated by themselves and need to
send this information back to their radio or police station. Leaving a mobile phone on, or
dictating to a mobile phone, would simply not give sufficient voice quality to allow that
transmission to be broadcast or analyzed for the purposes of background noise analysis or voice
printing, where the speech autograph is taken and matched against those in police storage. Since
even short voice clips occupy large file sizes, GPRS or other high speed mobile data services are
needed.

JOB DISPATCH
Nonvoice mobile services can be used to assign and communicate new jobs from office-based
staff to mobile field staff. Customers typically telephone a call center whose staff take the call
and categorize it. Those calls requiring a visit by field sales or service representative can then be
escalated to those mobile workers. Job dispatch applications can optionally be combined with
vehicle positioning applications- such that the nearest available suitable personnel can be
deployed to serve a customer. GSM nonvoice services can be used not only to send the job out,
but also as a means for the service engineer or sales person can keep the office informed of
progress towards meeting the customer’s requirement. The remote worker can send in a status
message such as “Job 1234 complete, on my way to 1235”.

The 160 characters of a short message are sufficient for communicating most delivery addresses
such as those needed for a sales, service or some other job dispatch application such as mobile
pizza delivery and courier package delivery. However, 160 characters does require manipulation
of the customer data such as the use of abbreviations such as “St” instead of “Street”. Neither
does 160 characters leave much space for giving the field representative any information about
the problem that has been reported or the customer profile. The field representative is able to
arrive at the customer premises but is not very well briefed beyond that. This is where GPRS will
come in to allow more information to be sent and received more easily. With GPRS, a

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photograph of the customer and their premises could, for example, be sent to the field
representative to assist in finding and identifying the customer. As such, we expect job dispatch
applications will be an early adopter of GPRS-based communications.

CORPORATE EMAIL

With up to half of employees typically away from their desks at any one time, it is important for
them to keep in touch with the office by extending the use of corporate email systems beyond an
employee’s office PC. Corporate email systems run on Local Area computer Networks (LAN)
and include Microsoft Mail, Outlook, Outlook Express, Microsoft Exchange, Lotus Notes and
Lotus cc:Mail.

Since GPRS capable devices will be more widespread in corporations than amongst the general
mobile phone user community, there are likely to be more corporate email applications using
GPRS than Internet email ones whose target market is more general.

INTERNET EMAIL
Internet email services come in the form of a gateway service where the messages are not stored,
or mailbox services in which messages are stored. In the case of gateway services, the wireless
email platform simply translates the message from SMTP, the Internet email protocol, into SMS
and sends to the SMS Center. In the case of mailbox email services, the emails are actually
stored and the user gets a notification on their mobile phone and can then retrieve the full email
by dialing in to collect it, forward it and so on.

Upon receiving a new email, most Internet email users do not currently get notified of this fact
on their mobile phone. When they are out of the office, they have to dial in speculatively and
periodically to check their mailbox contents. However, by linking Internet email with an alert
mechanism such as SMS or GPRS, users can be notified when a new email is received.

VEHICLE POSITIONING

This application integrates satellite positioning systems that tell people where they are with
nonvoice mobile services that let people tell others where they are. The Global Positioning
System (GPS) is a free-to-use global network of 24 satellites run by the US Department of
Defense. Anyone with a GPS receiver can receive their satellite position and thereby find out
where they are. Vehicle positioning applications can be used to deliver several services including
remote vehicle diagnostics, ad-hoc stolen vehicle tracking and new rental car fleet tariffs.

The Short Message Service is ideal for sending Global Positioning System (GPS) position
information such as longitude, latitude, bearing and altitude. GPS coordinates are typically about
60 characters in length. GPRS could alternatively be used.

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REMOTE LAN ACCESS

When mobile workers are away from their desks, they clearly need to connect to the Local Area
Network in their office. Remote LAN applications encompasses access to any applications that
an employee would use when sitting at their desk, such as access to the intranet, their corporate
email services such as Microsoft Exchange or Lotus Notes and to database applications running
on Oracle or Sybase or whatever. The mobile terminal such as handheld or laptop computer has
the same software programs as the desktop on it, or cut down client versions of the applications
accessible through the corporate LAN. This application area is therefore likely to be a
conglomeration of remote access to several different information types- email, intranet,
databases. This information may all be accessible through web browsing tools, or require
proprietary software applications on the mobile device. The ideal bearer for Remote LAN Access
depends on the amount of data being transmitted, but the speed and latency of GPRS make it
ideal.

FILE TRANSFER

As this generic term suggests, file transfer applications encompass any form of downloading
sizeable data across the mobile network. This data could be a presentation document for a
traveling salesperson, an appliance manual for a service engineer or a software application such
as Adobe Acrobat Reader to read documents. The source of this information could be one of the
Internet communication methods such as FTP (File Transfer Protocol), telnet, http or Java- or
from a proprietary database or legacy platform. Irrespective of source and type of file being
transferred, this kind of application tends to be bandwidth intensive. It therefore requires a high
speed mobile data service such as GPRS, EDGE or UMTS to run satisfactorily across a mobile
network.

HOME AUTOMATION

Home automation applications combine remote security with remote control. Basically, you can
monitor your home from wherever you are- on the road, on holiday, or at the office. If your
burglar alarm goes off, not only do you get alerted, but you get to go live and see who are
perpetrators are and perhaps even lock them in. Not only can you see things at home, but you can
do things too. You can program your video, switch your oven on so that the preheating is
complete by the time you arrive home (traffic jams permitting) and so on. Your GPRS capable
mobile phone really does become like the remote control devices we use today for our television,
video, hi-fi and so on. As the Internet Protocol (IP) will soon be everywhere- not just in mobile
phones because of GPRS but all manner of household appliances and in every machine- these
devices can be addressed and instructed. A key enabler for home automation applications will be
Bluetooth, which allows disparate devices to interwork.

Mobile Lifestreams Limited www.mobileGPRS.com Page 18

6. Optimal Bearer by Application
Currently, corporate applications that use the Short Message Service are few and far between.
The reasons are the relatively older age of corporate mobile phone users and their lower price
sensitivity, particularly since the employer usually pays mobile phones bills. Corporate users are
less willing to learn how to and make the effort to send a short message- they tend to use voice as
their primary communications method. Instead, the vast majority of SMS usage is accounted for
by consumer applications. It is not uncommon to find 90% of the total SMS traffic accounted for
by the consumer applications that have been described. Until GPRS terminals are consumer
oriented, SMS will continue to be bearer for most consumer applications. However, since GPRS
will be incorporated into high end mobile phones initially, it will be used more for corporate
applications.

Whatever the application, the Internet will become the primary communications interface.
Previously, application developers wrote proprietary applications that worked with proprietary
host terminals and often proprietary rugged terminal operating systems. For example, instead of
corporate applications such as service engineering using platform and software specific
interfaces, the mobile workers such as service engineers will access an intranet page using their
GPRS capable terminal and fill in an electronic form. People increasingly use a web browser to
access publicly available data on the Internet itself, the extranet for access to the data of business
partners and other external collaborators and the intranet to access internal employee
information. As such, all work will be carried out through the web interface.

Often, by designing applications to minimize the effects of the limitations of existing mobile
services- such as the length of a short message or the speed of a Circuit Switched Data call-
existing nonvoice mobile services can be successfully used for mobile working. However, many
nonvoice applications are graphics intensive and the new faster data services will allow BETTER
VERSIONS of today’s existing nonvoice applications. For example, instead of occasional
information messages with SMS, information services via GPRS or UMTS will be more akin to
the “push” Internet channels we see on Active PC Desktops today. Instead of the slow
transmission of small video images, real-time broadcast quality images will be transmittable.
Instead of using SMS to notify Internet users of new email, the whole email will be sent, and
full-blown Internet access will be possible. The same applications will be more immediate and
convenient for users.

The use of SMS has prepared customers for nonvoice applications using GPRS and other
nonvoice services and most of the applications envisaged for GPRS already exist in some form
today. It is therefore an important question to consider what the preferred bearer for each
application will be- GPRS, Circuit Switched Data or SMS.

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7. Ranking of Initial GPRS Traffic Generators
With any new service, it is an important part of the business case to estimate what the
applications for that technology will be. We believe that the business case for any network
operator for GPRS is compelling- it confers a huge increase in capability for a relatively small
investment. The more popular applications using GPRS are expected to be:

Ranking Application Bearer

1. Corporate email GPRS
2. Internet email GPRS/ SMS
3. Information Services- Qualitative GPRS
4. Job Dispatch GPRS
5. Remote LAN Access GPRS
6. File Transfer GPRS
7. Web browsing GPRS
8. Still Images GPRS
9. Moving Images GPRS/ HSCSD
10. Chat GPRS/ SMS
11. Home Automation GPRS
12. Document Sharing/ Collaborative Working GPRS
13. Audio GPRS

The first of the applications listed will be popular partly because they are widespread over fixed
telephone networks but have previously not been readily or fully available over GSM networks.
The Internet and email are already in place today- GPRS will allow them to be made fully
wirefree and available everywhere. The applications ranked further down the list lack current
popularity in the fixed communications world and lack widespread availability of specific
software solutions.

Whilst these applications are technically feasible or high speed mobile data services such as
GPRS, the volume of usage is dependent upon commercial factors such as pricing. It is expected
that GPRS will incorporate volume-based charging such that only the data sent will be charged
for, paving the way for widespread usage amongst customers with GPRS capable devices.

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8. GPRS Network Nodes
Enabling GPRS on a GSM network requires the addition of two core modules, the Gateway
GPRS Service Node (GGSN) and the Serving GPRS Service Node (SGSN). As the word
Gateway in its name suggests, the GGSN acts as a gateway between the GPRS network and
Public Data Networks such as IP and X.25. GGSNs also connect to other GPRS networks to
facilitate GPRS roaming. The Serving GPRS Support Node (SGSN) provides packet routing to
and from the SGSN service area for all users in that service area.

In addition to adding multiple GPRS nodes and a GPRS backbone, some other technical changes
that need to be added to a GSM network to implement a GPRS service. These include the
addition of Packet Control Units; often hosted in the Base Station Subsystems, mobility
management to locate the GPRS Mobile Station, a new air interface for packet traffic, new
security features such as ciphering and new GPRS specific signalling.

9. Related GPRS Challenges

BILLING

GPRS is a different kind of service from those typically available on today’s mobile networks.
GPRS is essentially a packet switching overlay on a circuit switching network. The GPRS
specifications stipulate the minimum charging information that must be collected in the Stage 1
service description. These include destination and source addresses, usage of radio interface,
usage of external Packet Data Networks, usage of the packet data protocol addresses, usage of
general GPRS resources and location of the Mobile Station. Since GPRS networks break the
information to be communicated down into packets, at a minimum, a GPRS network needs to be
able to count packets to charging customers for the volume of packets they send and receive.
Today’s billing systems have difficulties handling charging for today’s nonvoice services. It is
unlikely that circuit switched billing systems will be able to process a large number of new
variables created by GPRS.

GPRS call records are generated in the GPRS Service Nodes. The GGSN and SGSN may not be
able to store charging information but this charging information needs to be processed. The
incumbent billing systems are often not able to handle real time Call Detail Record flows. As
such, an intermediary charging platform is a good idea to perform billing mediation by collecting
the charging information from the GPRS nodes and preparing it for submission to the billing
system. Packet counts are passed to a Charging Gateway that generates Call Detail Records that
are sent to the billing system.

However, the crucial challenge of being able to bill for GPRS and therefore earn a return on
investment in GPRS is simplified by the fact that the major GPRS infrastructure vendors all
support charging functions as part of their GPRS solutions. Additionally, a wide range of other
existing non-GSM packet data networks such as X.25 and Cellular Digital Packet Data (CDPD)
are in place along with associated billing systems.

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It may well be the case that the cost of measuring packets is greater than their value. The
implication is that there will NOT be a per packet charge since there may be too many packets to
warrant counting and charging for. For example, a single traffic monitoring application can
generate tens of thousands of packets per day. Thus the charging gateway function is more a
policing function than a charging function since network operators are likely to tariff certain
amounts of GPRS traffic at a flat rate and then need to monitor whether these allocations are far
exceeded.

This is not to say that we will end up with the free Internet Service Provider model that has
become established on the fixed Internet in which users pay no fixed monthly charge and
network operators rely on advertising sales on mobile portal sites to make money. There is a
premium for mobility and there is frankly a shortage of mobile bandwidth that limits the extent
to which that bandwidth is viewed as a commodity. And given the additional customer care and
billing complexity associated with mobile Internet and nonvoice services, network operators
would be ill advised to reduce their prices in such a way as to devalue the perceived value of
mobility.

TARIFFING
Decisions on charging for GPRS by packet or simply a flat monthly fee are contentious but need
to be made. Charging different packets at different rates can make things complicated for the
user, whilst flat rates favor heavy users more than occasional ones.

We believe that the optimal GPRS pricing model will be based on two variables- time and
packet. Network operators should levy a nominal per packet charge during peak times plus a flat
rate, no per packet charge during non peak times. Time and packet related charging will
encourage applications such as remote monitoring, meter reading and chat to use GPRS
overnight when spare network capacity is available. Simultaneously, a nominal per packet charge
during the day will help to allocate scarce radio resources and charge radio heavy applications
such as file and image transfer more than applications with lower data intensity. It has the
advantage that it will automatically adjust customer charging according to their application
usage.

As such the optimal charging model could well be a flat rate charge during off-peak times along
with a per packet charge during peak times.

CUSTOMER SERVICE

Value-added network services such as mobile data, mobile Internet and unified messaging all
generate certain specific customer problems and requirements, thereby requiring customer
service personnel to be aware of these issues and know how to solve them.

Nonvoice services are surprisingly complex- involving unique configurations of phone types,
data cards, handheld computers, subscriptions, operating systems, Internet service providers and

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so on. Some network operators require customers to opt into certain value added services rather
than including them as part of the core subscription- necessitating a customer service process.

In theory, the need for dedicated customer service for Circuit Switched Data, SMS and other
nonvoice mobile services will decrease in the future as terminals and services become easier to
use and as the services themselves are used more widely for customer service purposes.

The reality in the short and medium term is that the need for customer support for value-added
services will increase not decrease as awareness of services and their usage increases, and as new
services and terminals come onto the marketplace.

Rather than keeping everything in-house or outsourcing everything, we are a proponent of an

approach that keeps first line support and customer contact in-house, whilst outsourcing the
difficult specific customer service problems arising from connectivity issues and so on. In this
way, the network operator is aware of and in control of the kinds of questions and problems its
customers are asking.

It is well worth incurring the cost to get the customer aware, educated and initially set up with
data services, because, for example, once the PC data card has been successfully connected to the
laptop to the Internet software and so on, the same configuration can be repeatedly used. The
one-off customer requirement leads to ongoing usage.

10. The Mobile Value Chain

The nonvoice mobile value chain shows the various parties, along with their interdependence and
activities, that are involved in realizing the full potential of nonvoice mobile services. There will
be differences between the voice and nonvoice value chain-need for IT channels,

These parties are network operators, customers, IT/ mobile channels, terminal and infrastructure
vendors and application developers. All of these players in the value chain are essential to deliver
the overall success of the nonvoice services- if any one is underdeveloped or not present, the
entire value chain can break down. Each has a distinct role to play, which will now be discussed.

CUSTOMERS

Without customer interest in the nonvoice mobile services, there is little need for any of the other
players in the value chain to be present. If customers don’t see a compelling requirement for a
nonvoice service such as GPRS that can be delivered at a reasonable cost to them, there is little
point in network operators offering services, GPRS terminal vendors manufacturing product,
channels for product purchase being established or applications developed. Customer interest is
the business case that supports any investment in the nonvoice market, as in any other.

Customers tend to interface with network operators to buy service- either directly or indirectly
through designated channels depending on the size of the business and importance of the

Mobile Lifestreams Limited www.mobileGPRS.com Page 23

customer to the network operator. Customers may also have links with application developers if
their application requires some specific software.

TERMINAL/ INFRASTRUCTURE VENDORS

Terminal and infrastructure vendors supply the equipment and technology that turns a service
such as GPRS that has been set down on paper as a standard in theory into something that can be
implemented in practice. Clearly, without network infrastructure to enable the service in a cost
effective way, it cannot be widely implemented in practice. Equally, availability of terminals in
commercial quantities at reasonable prices can hinder or halt market take up. There is little point
in a network supporting a service if the clients to connect to that network are not available.
Delays in widespread terminal availability have often hindered the successful deployment of new
technologies and initiatives- most recently with SIM Application Toolkit and the Wireless
Application Protocol.

Terminal and infrastructure vendors need to have links to the people who buy their products such
as network operators to buy the network infrastructure and mobile channels that distribute and
sell their terminals. Terminal and infrastructure vendors may well also have links to application
developers to encourage applications to be ported to their infrastructure and terminal solution
and interfaces and operating systems. The vendors may also have direct contact with large
corporate end users- helping enable the nonvoice mobile opportunity in a network independent
way.

APPLICATION DEVELOPERS

Application developers- software developers, systems integrators and the like- are an essential
part in the nonvoice mobile value chain. Customers are interested in what the nonvoice services
can be used for- GPRS and other such services are a means to an end and not and end in
themselves- they facilitate applications.

Applications are the end that will generate high usage of nonvoice services. They will generate
regular and ongoing use of the nonvoice mobile services. Even given standardized elements in
the other parts of the mobile value chain, some systems integration is likely to be necessary to
deploy the application, such as integration with the host systems. However, once deployed, these
applications will rapidly become an indispensable part of the daily life of the user that they will
be loath to give up and keen to use frequently. Because they will make that person’s life easier-
they will help that person get their job done well and keep in touch with their family, friends,
colleagues and customers.

Application developers may develop off the shelf shrink-wrapped nonvoice products such as a
chat software program designed for volume sales, customized products developed specifically to
meet one customer’s requirement, or a hybrid in which a generic product such as a database is
customized with application specific data. Some products or services have a “killer application”
that is overwhelmingly popular- such as spreadsheets for PCs or desktop publishing for the
Apple Macintosh- or a raft of different applications that all build on the underlying technology.

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Application developers may have links to terminal and infrastructure vendors- in many cases,
these vendors have application development forums and programs such as the GPRS Application
Alliance from Ericsson and the Nokia Developer’s Forum. Application developers should also
have contacts with the network operators since networks have different levels of tariff plans,
hardware and network infrastructure and services availability. This interface between application
developers and network operators is ideally in the form of a business partners program.
Application developers may also sell their products directly to mobile channels by concluding
packaging and bundling deals with those channels.

IT/ MOBILE CHANNELS

The customer needs to be able to find out about and sign up for a service in a convenient and
easy way. The market channels are what facilitates this- different customer groups prefer to use
different channels. For example, if you only sold a product through Internet channels, you would
preclude all those people who are not connected and those who are unwilling or uncomfortable
to purchase online. In some cases, customers for nonvoice services such as GPRS will contact
and contract with the network operator directly to purchase service- this could be a retail outlet
or sales person or telesales type operation. In other cases, they will buy from an Information
Technology (IT) channel such as a computing magazine or retail outlet. Just as consumer
oriented propositions such as prepay are available from chemists and newsagents, corporate
oriented IP based services such as GPRS are likely to lead to a further evolution in channels for
mobile telephony products. Such smart terminals and other devices will be available from IT
superstores such as Office World, management consultancies such as Anderson Consulting,
business facilities outlets such as Mailboxes Etc., in airline business lounges and the like.

The channels have links to the customers that buy from them, the vendors who supply terminals
to them and the network operators who try to get them to sell equipment connected to their
particular network. The channels may also connect with application developers if their customers
require a specific software solution.

NETWORK OPERATORS
Clearly, the sum of activities that a network operator carries out is essential in determining the
success of nonvoice services. From fundamental prerequisites such as deciding to invest in
network infrastructure to support nonvoice services to investing resources in educating
customers about their availability and uses, network operators are an essential part of the process.

Network operators tend to have links with customers that are managed by account managers and
customer service staff, channels such as service providers and retailers, application developers
through business partner programs and network infrastructure and terminal suppliers who they
contract with for the underlying technology. As such, given its central role and relations with all
of the other players in the value chain, network operators are of central importance and need to
systematically and deliberately manage relations with these different groups through setting up
concrete programs and mechanisms to communicate with them.

Mobile Lifestreams Limited www.mobileGPRS.com Page 25

We can therefore see the various parties that make up ht e nonvoice mobile services value chain
and the importance of each. If any one of the five core elements of network operators, customers,
application developers, terminal and infrastructure vendors and channels was NOT present, the
entire value chain would be damaged and the success of the nonvoice service delayed or entirely
precluded.

11. Summary
GPRS will provide a massive boost to mobile data usage and usefulness. That much seems
assured from its flexible feature set- its latency and efficiency and speed. The only question is
how soon it takes off in earnest and how to ensure that the technical and commercial features do
not hinder its widespread use.

This guide is a cut down version of a book called “Yes 2 GPRS” which has over 200 pages and
contains detailed GPRS vendor profiles, application profiles, comparisons of GPRS to SMS,
Circuit Switched Data, HSCSD, EDGE, UMTS and so on, plus case studies from around the
world. The full “Yes 2 GPRS” report costs just 495 US dollars. The book contains full vendor
profiles, application profiles, case studies from Europe, the USA and Japan, explanations of
using GPRS with WAP and lots more important information. To order, contact Mobile
Lifestreams by any of the methods listed below:

Internet site: http://www.mobileGPRS.com

Email: gprs@mobilelifestreams.com

Telephone: +44 7000 366366

Fax: +44 7000 366367

Postal Address: 9 The Broadway

Newbury
Berkshire
RG14 1AS
ENGLAND

Mobile Lifestreams Limited www.mobileGPRS.com Page 26

ALSO PUBLISHED BY MOBILE LIFESTREAMS

SUCCESS 4 SMS – SIMON BUCKINGHAM

Published: January 2001 (370 A4 pages)

“Success 4 SMS” is the third edition of Mobile Lifestreams’ renowned SMS report series, to
be published. The intention of this report is to show how to maximize the use of, and
therefore the revenue from, the Short Message Service. “Success 4 SMS” explains and
interprets both the existing and future aspects of SMS by providing both an explanation of
these developments and analysis to help interpret them. The idea is to identify the critical
success factors for Service – now and in the future.

For more information visit: http://www.mobileSMS.com

Price: 495$US
ISBN: 1929105231

Yes 2 GPRS – Simon Buckingham

Published: August 2000 (218 A4 pages)

This report shows how to make mobile data a success by maximizing the use of, and
therefore the revenue from, the General Packet Radio Service (GPRS). Education is the
principle means of achieving this objective- by providing the first and only single source for
accurate and comprehensive information about the development and deployment of GPRS
around the world. “YES 2 GPRS” explains and interprets both the existing and future aspects
of GPRS. It provides both an explanation of these developments, and analysis to help
interpret them. The idea is to identify the critical success factors for the General Packet
Radio Service- now and in the future

For more information visit: http://www.mobileGPRS.com

Price: 495$US
ISBN: 1929105258

Data on Prepaid – Gerald T. Christensen

Published: August 2000 (370 A4 pages)

Written by Mobile Lifestreams’ Prepaid expert, Gerry Christensen, this 131 page report has
been designed to help product and service providers and those investing in
systems/solutions to make more informed business decisions.

For more information visit: http://www.mobilePREPAY.com

Price: 250$US
ISBN: 1929105231

Mobile Lifestreams Limited www.mobileGPRS.com Page 27

Success 4 WAP – Simon Buckingham
Published: January 2001 (190 A4 pages)

The Wireless Application Protocol (WAP) is a hot topic that has been widely hyped in the
mobile industry and outside of it. Mobile Lifestreams originally produced its first WAP book,
“Data on WAP”, in July 1999. Due to rapid changes and developments this book was
reissued in December 1999 before being reissued as "Yes 2 WAP" in May 2000.

For more information visit: http://www.yes2WAP.com

Price: 495$US
ISBN: 1929105215

Yes 2 3G – Simon Buckingham

Published: February 2001 (245 A4 pages)

"Data on 3G" presents an optimistic look at tremendously exciting possibilities that Third
Generation/ UMTS technologies and applications enable. Timescales, profiles of all the major
infrastructure vendors including the Japanese vendors, every mobile multimedia application,
"At home with your futurephone"- mobile communications in the next few years, 3G Talking
Points, all the 3G contracts awarded, the standards, handset alliances and partnership
opportunities and much, much more are included in this report.

For more information visit: http://www.mobile3G.com

Price: 495$US
ISBN: 1929105150

Mobile Positioning – Stephen M Dye and Dr Frank Baylin

Published: November 1999 (273 A4 pages)

"Mobile Positioning" is a book about mobile positioning systems - in particular, the Global
Positioning System (GPS), non-GPS location techniques and Cell Broadcast. Although the
book focuses primarily on the Global Positioning System (GPS), appendixes cover other
non-GPS location schemes and Cell Broadcast in considerable detail.

For more information visit: http://www.MobilePositioning.com

Price: 250$US
ISBN: 1929105134

NOTE: To order any of the above publications, please visit our secure online
ordering form at https://www.mobilesms.com/ordering.asp

Mobile Lifestreams Limited www.mobileGPRS.com Page 28