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INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I IM)
CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY
(CHARUSAT)
CHANGA
Prepared by
Maharshi J.PATEL
ID No.: 14BBA036
B.B.A. Third Year
Semester-V
2014-17 Batch
November 2016
DECLARATION
I Maharshi Patel, Student of the three year-Dual Degree BBA+MBA Programme at Indukaka
2
Ipcowala Institute of Management (I IM) hereby declare that the report on 4G Technology
and Its Future Impact on Telecom Industry and Indian Economy is the result of my
own work. I also acknowledge the other works / publications cited in the Project.
Your sincerely
Maharshi J. Patel
SR.NO PARTICULAR PG.NO
1 Introduction 1
1.1 History 2
1.2 Before 4G 3
1.2.1 1G (First Generation) 3
1.2.2 2G (Second generation) 3
1.2.3 3G (Third Generation) 4
2 What is 4G? 4
2.1 VISION OF 4G 4
2.2 Comparing Key Parameters of 4G with 3G. 5
3 Broad Overview 6
3.1 Indian Telecom Market Overview 6
3.2 Data Usage Landscape in India 6
3.3 Projected Smartphone Penetration and Mobile Data 7
Consumption for India
3.4Technology (2G, 3G & 4G) Landscape in India 7
4 KEY PLAYERS 8
4.1BhartiAirtel Limited. 8
4.2 BSNL 8
4.3Vodafone 8
4.4Reliance Communications 8
4.5 Idea Cellular 8
4.6 Tata Teleservices 8
4.7 Aircel 9
4.8MTNL 9
4.9Videocon 9
5 MARKET SHARE AND NATURE OF COMPETITION 10
6 Literature Survey 11
6.1 Evolution of The 4g technology and its future impact on 11
telecom industry and Indian economy.
6.2 Present Situation 11
6.3 Indian Scenario. 12
7 Contribution to Economy. 12
8. Strategies Adopted 12
8.1 Enterprise adoption. 12
9 Technology Features 13
9.1 Incomparable Speed 13
9.2 Advanced Security 13
9.3 Reliability and Effectiveness Irrespective of the Weather 13
Condition
19 Limitations. 19
20 Conclusions 20
1. Introduction
The First generation wireless mobile communication systems were introduced in early
eighties and second generations systems in the late 1980s were intended primarily for
transmission of voice. The initial systems used analog frequency modulation where as the
second as well as the subsequent mobile systems use digital communication techniques with
time division multiplexing (TDM), frequency division multiplexing (FDM) or the code
division multiple access (CDMA).
The third generation wireless systems which are just getting introduced in the world markets
offer considerably higher data rates, and allow significant improvements over the 2G
systems. The 3G Wireless systems were proposed to provide voice and paging services to
provide interactive multimedia including teleconferencing and internet access and variety of
other services.
However, these systems offer wide area network (WAN) coverage of 384 kbps peak rate and
limited coverage for 2 Mbps. Hence providing broadband services would be one of the major
goals of the 4G Wireless systems.
A descendant to 2G and 3G aiming to provide the very high data transfer rates. This
technology can provide very speedy wireless internet access to not only stationary users but
also to mobile users.
This technology is expected to trounce the deficiencies of 3G technology in terms of speed
and quality. 4G can be best described in one word MAGIC, which stands for Mobile
multimedia Anytime Anywhere Global mobility support, integrated wireless and personalized
services 4G, short for fourth-generation wireless communication systems, has engaged the
attention of wireless operators, equipment makers (OEMs), investors, and industry watchers
around the world. 4G refers to the next generation of wireless technology that promises
higher data rates and expanded multimedia services. Since, at this point, 4G is more of an
aspiration than a standard, there is not an agreement yet on what should constitute 4G.
Since the ITU is a major force in the standardization of telecommunications technologies, its
worth looking at the ITUs performance goals for 4G:
The framework for 4G systems should fuse elements of current cellular systems with
nomadic wireless-access systems and personal-area networks in a seamless layered
architecture that is transparent to the user.
Data rates of 100 Mbps for mobile applications and 1 Gbps for nomadic applications
should be achievable by the year 2010.
Worldwide common spectrum and open, global standardization should be pursued.
As another viewpoint, the Wireless World Research Forum (WWRF) defines a 4G
network as one that operates on Internet technology, combines it with other applications
and technologies such as WiFi and WiMAX, and runs at speeds ranging from 100 Mbps
(in cell-phone networks) to 1 Gbps (in local WiFi networks). There is some debate among
standards bodies and industry watchers as to whether WiMAX is, or will become, a full-
fledged 4G technology competitive with 4G wireless.
The telecommunication companies like NTT Docomo from Japan and Sprint Nextel were
also deploying 4G wireless technologies from the early 2006 along with 3G mobile
technologies. The flexibility of 4G technologies to be used in combination with GSM and
CDMA has provided it an edge over other technologies. The reason is that the high
broadband capability of 4G not only increases data streaming for stationary users but also
for mobile users.4G can be efficiently combined with cellular technologies to make
consistent use of smart phones. The digital cameras attached in smart phones can be used
to establish video blogs in scattered geographical regions. This gives the manufactures the
Page 1 of 20
opportunity to produce more affordable user friendly 4G compatible devices. Famous iPod
is one such device that supports the working of video blogs. Hence 4G is capable of
providing new horizon of opportunity for both existing and startup telephone companies.
Currently marketed technologies such as LTE (Long Term Evolution) and WiMAX have
been around for a few years and are being marketed as 4G whilst not meeting the
requirements set by the ITU. It was recently announced that these services could continue
to be marketed as 4G as they are precursors to the IMT-Advanced, 4G standard whilst also
operating on the same basis of technology; however, these should really be considered as
"Pre-4G" or "3.9G" as they technically do not offer the required data rates of (stationary)
1Gbps.
The ITU has recognised two standards that are planned to meet the 4G IMT-Advanced
requirements put forward by the two groups, 3GPP and IEEE. These are the LTE
Advanced and WirelessMAN-Advanced (WiMAX-Advanced) standards and will almost
certainly abandon the old spread system technology found in 3G systems for OFDMA and
other equalisation schemes, use MIMO technology, channel-dependant scheduling and
dynamic channel allocation all technologies that are being found on new, modern wireless
networking equipment.
Still 4G is not clearly defined or documented anywhere what are the basic requirements to
build 4G wireless technology, like 3G is clearly defined in IMT-2000 (International
Mobile Telecommunications 2000). IMT-Advanced is the closest where some of the 4G
requirements can be found. For supporting high data rate and high mobility in fast
moving car (60kilometers/hours) or fast moving trains (250 km/hr) and it is predicted that
the new potential wireless system will support 100 Mbps on mobility and 1 Gbps
approximately on without mobility at lower cost. This potential new wireless system could
be developed by 2010. Its characteristics should be like high degree of commonality of
design worldwide to provide backward compatibility, compatibility of services within
IMT-Advanced and with the fixed networks, high quality, and small terminal suitable for
worldwide use, worldwide roaming capability, capability to run high data rate multimedia
applications within a wide range of services and terminals.
1.1 HISTORY
The history and evolution of mobile service from the 1G (first generation) to fourth
generation are discussed in this section. Table 1 presents a short history of mobile
telephone technologies. This process began with the designs in the 1970s that have
become known as 1G. The earliest systems were implemented based on analog
technology and the basic cellular structure of mobile communication. Many fundamental
problems were solved by these early systems. Numerous incompatible analog systems
were placed in service around the world during the 1980s.The 2G (second generation)
systems designed in the 1980s were still used mainly for voice applications but were
based on digital technology, including digital signal processing techniques. These 2G
systems provided circuit-switched data communication services at a low speed. The
competitive rush to design and implement digital systems led again to a variety of
different and incompatible standards such as GSM (global system mobile), mainly in
Europe; TDMA (time division multiple access) (IS-54/IS- 136) in the U.S.; PDC
(personal digital cellular) in Japan; and CDMA (code division multiple access) (IS-95),
another U.S. system. These systems operate nationwide or internationally and are today's
mainstream systems, although the data rate for users in these system is very limited.
During the 1990s, two organizations worked to define the next, or 3G, mobile system,
which would eliminate previous incompatibilities and become a truly global system. The
3G system would have higher quality voice channels, as well as broadband data
capabilities, up to 2 Mbps. Unfortunately, the two groups could not reconcile their
differences, and this decade will see the introduction of two mobile standards for 3G. In
addition, China is on the verge of implementing a third 3G system. An interim step is
being taken between 2G and 3G, the 2.5G. It is basically an enhancement of the two
major 2G technologies to provide increased capacity on the 2G RF (radio frequency)
channels and to introduce higher throughput for data service, up to 384 kbps. A very
important aspect of 2.5G is that the data channels are optimized for packet data, which
introduces access to the Internet from mobile devices, whether telephone, PDA (personal
digital assistant), or laptop. However, the demand for higher access speed multimedia
communication in today's society, which greatly depends on computer communication in
digital format, seems unlimited. According to the historical indication of a generation
revolution occurring once a decade, the present appears to be the right time to begin the
research on a 4G mobile communication system.
Symbols:
1xRTT = 2.5G CDMA data service up to 384 kbps
AMPS = advanced mobile phone service
CDMA = code division multiple access
EDGE = enhanced data for global evolution
FDMA = frequency division multiple access
GPRS = general packet radio system
GSM = global system for mobile
NMT = Nordic mobile telephone
PDC = personal digital cellular
PSTN = public switched telephone network
TACS = total access communications system
TDMA = time division multiple access
WCDMA = wideband CDMA
1.2 Before 4G
The history and evolution of mobile service from the 1G (First generation) to 4G (fourth
generation) is discussed in this section.
1.2.1 1G (First Generation)
The process began with the designs in the 1970s that have become known as 1G. Almost all
of the systems from this generation were analog systems where voice was considered to be
the main traffic. The first generation wireless standards used plain TDMA and FDMA. These
systems could often be listened to by third parties. Some of the standards are NMT, AMPS,
Hiccup, CDPD, Mobitex, Datatec, TACS and ETACS.
1.2.2 2G (Second generation)
The 2G (second generation) systems designed in the 1980s were still used mainly for voice
applications but were based on digital technology, including digital signal processing
techniques. These 2G systems provided circuit switched data communication services at a
low speed. All the standards belonging to this generation were commercial centric and they
were digital in form. The second generation of wireless mobile communication systems was a
huge success story because of its revolutionary technology and the services that it brought to
its users.
1.2.3 3G (Third Generation)
To meet the growing demands in network capacity, rates required for high speed data transfer
and multimedia applications, 3G standards started evolving. The systems in this standard are
essentially a linear enhancement of 2G systems. They are based on two parallel backbone
infrastructures, one consisting of circuit switched nodes, and one of packet oriented nodes.
The third generation (3G) has been launched in several parts of the world, but the success
story of 2G is hard to repeat.
2. What is 4G?
4G takes on a number of equally true definitions, depending on who you are talking to. In
simplest terms, 4G is the next generation of wireless networks that will replace 3G networks
sometimes in future. In another context, 4G is simply an initiative by academic R&D labs to
move beyond the limitations and problems of 3G which is having trouble getting deployed
and meeting its promised performance and throughput. In reality, as of first half of 2002, 4G
is a conceptual framework for or a discussion point to address future needs of a universal
high speed wireless network that will interface with wire line backbone network seamlessly.
2.1 VISION OF 4G
This new generation of wireless is intended to complement and replace the 3G systems,
perhaps in 5 to 10 years. Accessing information anywhere, anytime, with a seamless
connection to a wide range of information and services, and receiving a large volume of
information, data, pictures, video, and so on, are the keys of the 4G infrastructures. The
future 4G infrastructures will consist of a set of various networks using IP (Internet
protocol) as a common protocol so that users are in control because they will be able to
choose every application and environment. Based on the developing trends of mobile
communication, 4G will have broader bandwidth, higher data rate, and smoother and
quicker handoff and will focus on ensuring seamless service across a multitude
of wireless systems and networks. The key concept is integrating the 4G capabilities with
all of the existing mobile technologies through advanced technologies. Application
adaptability and being highly dynamic are the main features of 4G services of interest to
users. These features mean services can be delivered and be available to the personal
preference of different users and support the users' traffic, air interfaces, radio
environment, and quality of service. Connection with the network applications can be
transferred into various forms and levels correctly and efficiently. The dominant methods
of access to this pool of information will be the mobile telephone, PDA, and laptop to
seamlessly access the voice communication, high-speed information services, and
entertainment broadcast services. Figure 1 illustrates elements and techniques to support
the adaptability of the 4G domain. The fourth generation will encompass all systems
from various networks, public to private
2.2 Comparing Key Parameters of 4G with 3G.
3G
(including2.5G,sub3G) 4G
Major Requirement Predominantly voice driven - data Converged data and voice over
Driving Architecture was always add on IP
Switching Design Basis Circuit and Packet All digital with packetized voice
Data explosion
Possible in rural areas to add subscribers to the active operator bas.
3.3 Projected Smartphone Penetration and Mobile Data Consumption for India
[Table: 3.3]
Idea started its operation in Gujarat and Maharashtra circles in 1997 and it was known
as Birla AT&T then. It merged with Tata Cellular in 2000 and the name changed to
Birla Tata AT&T. The company is operational in all 22 circles. Its market share is
10.76%.
1
www.trai.com
2
www.trai.com
3
www.trai.com
4
www.trai.com
4.7 Aircel
Aircel started its operation in Tamil Nadu circle in 1999 and it acquired RPG cellulars
Chennai circle in 2003. The company is today operational in 18 circles. The market share
of Idea is 6.72%.
4.8 MTNL
MTNL was set up in 1986 to provide telecom services in Mumbai and Delhi. Majority of
the shares are owned by the Government and it is a publicly listed company. Its market
share is 0.76%.
4.9 Videocon
The company was earlier known as Dotcom. Videocon launched its services in 2010. It
got license in 22 circles. Its market share is 0.79%.While MTS, Uninor, S Tel, Loop,
Etisalat are some of the other players operating in the Telecom sector.
Indian telecom market is presently the most attractive telecom market in the world with a
lot of attention being shown by global players.
Source: www.trai.com
The above pie chart shows the market share of fourteen telecom companies operating in
India. We can easily observe that BhartiAirtel is the market leader with 20.70% of the total
market share followed by Reliance and Vodafone. It is evident from the chart that 97% of the
total operator market is shared only by eight companies which makes it an oligopolistic
market, where few firms enjoy being at the top, entry barriers are high so it is very difficult
for a new entrant to enter. Firms are interdependent.
6. Literature Survey
6.1 Evolution of The 4g technology and its future impact on telecom industry and
Indian economy.
4G in India is at a very nascent step and normal to take on the market with a
bang. 3G espousal in India remains subdued at 10-12 million users even after
nearly 2 years of its launch due to many problems like poor network quality as
operators are cash-strapped to devote on 3G expansion, low penetration of 3G
enabled handsets, unavailability of local content, absence of a good application.
Even if 3G picks up in 2 years from now, most of the users will be mobile users
with a less data condition like accessing e-mails and web-portals exit the space of
additional portable mobile devices like tablets, laptops, gaming etc. demanding
high speed broadband for live HD video streaming, gaming etc. unoccupied,
paving the way for 4G which is far more faster than 3G. Global, for 4G, Wi-Max
is more widely adopted technology than Long Term Evolution (LTE) having a
user base almost four times that of the final but the final is growing at a much
faster pace than the former. North America, Japan and China are the major
drivers of LTE global. North America accounts for more than 40% of LTEs
global presence. Out of the eight entities in India who get 4G certificates, only
BSNL and MTNL have opted for Wi-Max stage but private companies chose for
LTE. The difference between Wi-Max and LTE is not as different as GSM and
CDMA apart from being promoted by two different relations Institute of
Electrical and Electronics Engineers (IEEE) and 3rd Generation Partnership
Project (3GPP) respectively. Wi-Max has capacity to accommodate voice which
LTE does not but LTE allows well addition with 2G and 3G as compared to Wi-
Max. As per recent statement given by Telecom Minister of the Country,
Operators using LTE stage will also be able to offer Voice Services, But How and
when, it is yet to be cleared. So now the game is split wide upon in front of our
eyes and 4G has a choice to target customer in the near future in wide variety.
7. Contribution to Economy.
India will emerge as a leading player in the virtual world by having 700 million
internet users of the 4.7 billion global users by 2025, as per a Microsoft report. With
the governments favourable regulation policies and 4G services hitting the market,
the Indian telecommunication sector is expected to witness fast growth in the next
few years.
8. Strategies Adopted
8.1 Enterprise adoption.
In addition to general usage, LTE adoption heavily banks on adoption by the
enterprise market. With offices and businesses, especially the SMBs, embracing
the newer and faster network, LTE will see a larger mass adoption.
A group of 30 million post-paid subscribers, who on an average pay more than Rs.
500 a month as their mobile bill which is approximately 5 times the prepaid users.
It can also target 460 million subscribers who have handset supporting internet and
have subscribed to one or the other form of mobile data services. More than hundred
million carrying a 3G enabled handsets offer a sizeable target group for 3G services.
150 million internet users in the country are a very good target.
Hundreds of thousands new tablet users being added every year and their quest for
higher speeds will ultimately pave the way for 4G.
Millions of potential TV viewers waiting for the cheaper video-on-demand facility in
their drawing rooms, and Hundreds of thousands of Small and Medium Enterprises
waiting for the high speed internet connectivity offer the target group for 4G services.
The entire Education, Medical and Legal fraternity will try and adopt the services to
take First movers advantage in their respective geography. Motivation for 4G
Research Before 3G Has Not Been Deployed?
3G performance may not be sufficient to meet needs of future high-performance
applications like multi-media, fullmotion video, wireless teleconferencing. We need a
network technology that extends 3G capacities by an order of magnitude.
There are multiple standards for 3G making it difficult to roam and interoperate
across networks. We need global mobility and service portability
3G is based on primarily a wide-area concept. We need hybrid networks that utilize
both wireless LAN (hot spot) concept and cell or base-station wide area network
design.We need wider bandwidthResearchers have come up with spectrally more
efficient modulation schemes that cannot be retrofitted into 3G infrastructure
We need all digital packet networks that utilize IP in its fullest form with converged voice
and data capability.
15.1 Specification:-
15.2 Applications:-
4G will provide for a vast no. of presently nonexistent application for mobile devices.
4G device will differ from present day mobile device in that there will be navigation
menus.
4G will provide a seamless network for users who travel & required uninterrupted
voice/data communication.
Firstly 3Gs maximum data transfer rate of 384 kbps to 2 mbps is much slower than
20mbps to 100mbps of 4G.
With its use of existing technologies & communication standards, 4G present a
comparably inexpensive standard.
4G will utilize most of the existing wireless communication infrastructure.
Access
Handoff
Location co-ordination
Resource co-ordination to add new user
Support for quality of service.
Wireless securities & authentication.
Network failure & backup.
Pricing and billing.
M] Technique used in 4G:-
OFDM
USB(Ultra Wide Band)
Millimeter wireless.
Smart Antennas
Long term power prediction.
Scheduling among users.
Adaptive modulation and power control.
17. Disadvantages:-
Expensive
Battery uses are more hard to implement
Need complicated hardware.
18. Challenges in Migration to 4G:
18.1 Multimode User Terminals.
With 4G there will be a need to design a single user terminal that can operate in
different wireless networks and overcome the design problems such as limitations
in size of the device, its cost and power consumption. This problem can be solved
by using software radio approach i.e. user terminal adapts itself to the wireless
interfaces of the network.
18.2 Selection among Various Wireless Systems.
Every wireless system has its unique characteristics and roles. The proliferation of
wireless technologies complicates the selection of most suitable technology for a
particular service at a particular place and time. This can be handled by making the
selection according to the best possible fit of user QoS requirements and available
network resources.
18.3 Security
Heterogeneity of wireless networks complicates the security issue. Dynamic
reconfigurable, adaptive and providers. Similarly, billing customers with simple
but information is not an easy task.
18.4 Network Infrastructure and QOS Support
Integrating the existing non-IP and IP-based systems and providing QoS guarantee
for end-to-end services that involve different systems is also a big challenge.
18.5 Charging/ Billing
It is troublesome to collect, manage and store the customers accounts information
from multiple services comes from a satellite and calculates the wrong co-
ordinates. Criminals can use such techniques to interfere with police work.
Jamming happens when a transmitter sending out signals at the same frequency
displaces a GPS signal.
18.6 Attacks on Application Level
4G cellular wireless devices will be known for software applications which will
provide innovative feature to the user but will introduce new holes, leading to more
attacks at the application level.
18.7 Jamming and Spoofing
Spoofing refers to fake GPS signals being sent out, in which case the GPS receiver
thinks that the signals comes from a satellite and calculates the wrong co-ordinates.
Criminals can use such techniques to interfere with police work. Jamming happens
when a transmitter sending out signals at the same frequency displaces a GPS
signal.
18.8 Data Encryption
If a GPS receiver has to communicate with the central transmitter then the
Communication link between these two components is not hard to break and there
is a need of using encrypted data. Lightweight security mechanisms should be
developed.
19. Limitations:-
Although the concept of 4G communications shows much promise, there are still
limitations that must be addressed. A major concern is interoperability between the
signaling techniques that are planned for use in 4G (3XRTT and WCDMA).
Cost is another factor that could hamper the progress of 4G technology. The
equipment required to implement the next-generation network are still very
expensive.
A Key challenge facing deployment of 4G technologies is how to make the network
architectures compatible with each other. This was one of the unmet goals of 3G.
AS regards the operating area, rural areas and many buildings in metropolitan areas
are not being served well by existing wireless networks.
20. Conclusions
System designers and services providers are looking forward to a true wireless
broadband cellular system, or 4G. To achieve the goals of 4G, technology will need to
improve significantly in order to handle the intensive algorithms in the baseband
processing and the wide bandwidth of a high PAVR signal. Novel techniques will also
have to be employed to help the system achieve the desired capacity and throughput.
High-performance signal processing will have to be used for the antenna systems,
power amplifier, and detection of the signal. A number of spectrum allocation
decisions, spectrum standardization decisions, spectrum availability decisions,
technology innovations, component development, signal processing and switching
enhancements and inter-vendor cooperation have to take place before the vision of 4G
will materialize. We think that 3G experiences - good or bad, technological or
business - will be useful in guiding the industry in this effort. To sketch out a world
where mobile devices and services are ubiquitous and the promise of future fourth
generation (4G) mobile networks enables things only dreamed of, we believe that 4G
will probably become an IP-based network today.
In conclusion, it is evident that 4G technologies will expand on web-based
communications around the world. 4G technology will allow for improved
applications such as telemedicine that may save lives. It is a fully IP-based network
and will improve data transfer dramatically. Signal disruptions will be minimal and
downloads will be done in a matter of seconds, faster than ever before. In the near
future, a 5G cell phone will be created along with a 5G network based on 4G
technologies allowing for the world to connect limitlessly.
The 4G LTE technology is nothing less than ground breaking. The advancements that
have been made from 3G to 4G LTE alone are mind blowing. With the data
processing speed being increased to at least 100 Mbit/sec the possibilities are limitless
in the wireless communication world. Everything with this new technology has been
brought to a new standard. The security, with the complete IP-based solutions allows
the user to use the full capability of the phone as well as feel completely secure at the
same time, this is one of the most vital aspects that has been upgraded from the
previous wireless communication technologies. Even though the hardware and
coverage areas arent up to par yet though, isnt that big of a setback. The technology
is still considered brand new and will only be improved in the coming years. As I said
previously, this technology is truly ground breaking and makes the average person
really think about what is possible with wireless communication? If there ever is a 5G
network, how powerful will it be and what will it possibly be able to do that the 4G
doesnt already do?