Orange sells Prepaid 3G Sticks at Paris Airport

Automatic mobile store 2 I had an interesting surprise when I passed through Paris airport recently. Orange (France Telecom) has put a vending machine in the airport hall where people can buy prepaid SIM cards with different kind of phones and also prepaid 3G Internet access together with a 3G stick.

The Internet offer with the 3G stick (locked to the network operator I suppose) is around 30 Euros. Oddly enough from an outsiders view, usage is paid by time and not by volume. 2h are included in the starter pack.

Unfortunately, prices for further online time are very unattractive. 3 euros buy 20 minute of online access, an hour costs 8 euros and 6 hours cost 25 euros. Online activities can be interrupted and all but the smallest pass are valid for using during a timeframe of one month. Compare that to the 1GB for 15 euros offer which is valid for a year from A1 in Austria. Quite a difference.

Smartphones: Units, Revenue, Profits – Update

Back in October 2008, I wrote about a blog post of David Wood, who is part of the Symbian leadership team, where he said that while smartphones only account for 10-15% of sales units, the sales revenue is between 20-25% and profits may even exceed 40%. Now Moco News reported similar numbers being given by Deutsche Bank analyst Brian Modoff in an article in the Wall Street Journal.

His numbers are as follows:

  • Apple and RIM together only have 3% of the mobile phone market share but make 35% of the total profits.
  • Nokia manufactured 46% of the mobile phones sold last year (I heard 38% somewhere else) and made 55% of the profits. Note: It would have been interesting to see the split in profits between their smartphones and the rest of the phones they produce. Do they give these numbers in their quarterly reports?

That makes me wonder why there is so much profit in smartphones vs. the rest!? Granted, their price is much higher than that of ordinary phones and thus if the profit percentage is similar, the profit per device is also higher. However, that can't explain it all. Less competition then maybe? Also a bit doubtful as the smartphone market seems to be quite competitive with manufacturers like Nokia, Apple, RIM, HTC (G-phone, WinMob), etc. vying for market share. What do you think?

Please don’t use your Typekey ID for Comments

Every now and then I get an interesting comment for which a typekey id was used as a commenter id instead of an e-mail address. While that is perfectly all right in theory it unfortunately doesn't allow me in practice to reply to you by e-mail in addition to leaving a comment of my own below the poast. That's a bit unfortunate as most people probably won't check back on the blog to see if I have left a response. Therefore, dear readers, please put an e-mail address in the id section of the post if you would like to receive a response in case I have any 🙂 The e-mail address is only shown to me so there is no need to worry about spam. Thanks!

Linux 3G Dashboard from Vodafone Betavine

Screenshot-Vodafone Mobile Connect Here's a quick update on my experience with my netbook, Ubuntu and 3G connectivity. As reported previously, the 3G connectivity manager built into Ubuntu works (most of the time) but doesn't have some important administrative functions included such as network and network type selection and some general observational functions such as current network name and signal strength indications.

At least the later functions are included in the Linux 3G Dashboard from Vodafone Betavine, which works great with my Huawei E220 USB 3G stick. The screenshot on the left shows how signal strength and the network name is displayed in the lower left corner of the dashboard. Nicely done!

What's still missing is a network selection dialogue and to be able to lock the USB stick to 3G, which sometimes helps to stay connected in bad signal conditions. It would be nice to see this in a future version. Also, having the possibility to select a different connection profile on the main screen would also be nice, especially for people (like me) who travel a lot.

To install the dashboard go to this Vodafone Betavine project page, and download and install all packages from the download section.

Always-On LTE Roaming

I've been thinking a bit about LTE and international roaming lately and just realized that mobile network operators need to come up with a new billing scheme compared to current systems. Here's why:

2G and 3G devices only request the establishment of a data bearer (a PDP context in 3GPP talk, or getting an IP address in Internet talk) when an application requests it for the first time. Thus, from a billing point of view, nothing is charged until that point. With LTE, however, the device gets an IP address right when the device registers with the network after startup. In effect, the 2G / 3G packet call becomes history with LTE. While in the home network this can probably be managed quite well from a billing point of view, I wonder how network operators will proceed for roaming. After all, most users will probably not be too happy to be charged just for switching on their device.

For LTE USB dongles, this might not be a problem as the user can decide whether to plug it in or not. For notebooks with a built-in LTE modem, however, or an LTE capable smartphone, things are different. A user of an LTE capable smartphone probably wants to use it abroad as well, even if it is only for voice calls and the offline organizer functionalities without being charged if he doesn't actively use the Internet. I wonder how this will be solved in practice!?

I could imagine several solutions:

  • The device detects the roaming scenario and asks the user whether to attach to LTE and get an IP address and warns the user that this might be a chargeable event.
  • The device detects the roaming scenario and doesn't attach to the LTE network. Instead, a 2G or 3G network is selected where getting an IP address right away is not required. The question then is how the user could trigger this later-on. In case of a smartphone it could wait till an application tries to access the Internet and then reselect to LTE once the connection is established. That won't work for LTE capable notbooks, though, as there are always applications crying for IP connectivity…
  • The home network detects that the user is roaming and blocks initial access to the Internet. Then, via a web based landing page, the network informs the user that different rates will apply if he proceeds. The problem with this approach is that the user has to open the web browser first before his other applications can get access to the Internet.
  • A certain amount of data traffic while roaming  is already included in the subscription. When going beyond this amount, access is blocked until the user is informed (e.g. via SMS or a landing page) that further Internet access will be billed separately and the user has given his consent.

Hm, it all doesn't sound convincing yet. Better ideas, anyone?

Prepaid 3G Internet Access In Switzerland

Switzerland is the latest country for which I have bought a local SIM card for prepaid 3G Internet access while traveling there. Getting the SIM was quick and I was online in less than 5 minutes.

Zurich airport seems to also be a big shopping mall these days and all mobile network operators have a store there. Swisscom has an offer for prepaid 3G Internet access, which, even if it was unintended, is especially interesting for travelers. With the introduction of the iPhone by Swisscom, they also launched a new prepaid tariff which caps Internet charges at 5 Swiss Francs a day. While that is quite a bit if you use it every day, it looks like an acceptable price for occasional use, at least to me. The SIM card is also available separately and can be used with any other device as well.

So after getting into the store, it took only about 5 minutes to get the prepaid SIM. The shop assistant was aware of the Internet tariff and actually what it could be used for. Congrats, I am not quite used to that. Many shop assistants have no clue and will even give out false information such as "it will only work with our phones"…

Their provisioning system is also quick, the SIM card was activated instantly and the tariff option also worked right away. That's how it should be and not like in other countries where activation of an option takes half a day. Kudos to Swisscom, I had a very good customer experience.

Here's a link to the prepaid 3G Internet access Wiki with more details of how to configure your 3G device for the SIM card. Enjoy!

The 2.1 GHz situation in Vienna

Back in April I ran some tests in London to see how many 3G frequencies were used by the carriers there to get a feeling of how much capacity is offered today. To my great surprise, only one of the network operators had deployed more than one 5 MHz carrier frequency. Recently, I was in Vienna and since the country has many affordable 3G Internet offers that lots of people already use, I was wondering if the situation was different.

It turned out that the situation was pretty similar. Except for T-Mobile, who had two 3G carriers deployed in the center of Vienna, all other operators only used one carrier frequency. Network throughput during the day and in the evening in the A1 network were always good (above 1.5 MBit/s) so the current low capacity build-out from an available carrier perspective can handle the traffic well. To me, that sounds like good news!

Nokia N97 Review Part 5: Nokia Maps and the FM Transmitter

I've used Nokia Maps in the past a lot for car navigation with my N95 so obviously it is a must work application on the N97 as well. So when I recently drove from southern Germany to Vienna I used the N97 to guide me. While a beta of Nokia maps 3 is already available for some time now, I preferred using the installed Nokia maps 2 to test the stability of the N97. No issues, the GPS works well, a first fix only takes a couple of seconds due to A-GPS support and the route planning and execution works flawlessly. Great!

I like listening to podcasts while I'm driving and in the past this has always been an issue as the built in speakers of my N95 aren't loud enough to overcome the background noise while driving. The N97 has an FM transmitter to send the audio signal to a radio which could be a great solution to the problem.

In practice it's a bit difficult to use as the transmission power seems to be very low. To make the radio detect it I had to hold it very close to the radio. Once detected, the N97 can be removed a bit and the audio signal is still o.k. for an audio (voice) podcast. For music however, there's a bit too much static. I changed the length of the external car antenna a bit which improved the sound quality a bit but still, there is some static in the background. While driving I lost the signal after an hour or so, probably because a radio station came into range which used a nearby frequency. While driving, it's impossible to re-tune the FM transmitter and radio due to the proximity required for the radio to find the N97. This makes the whole thing a bit impractical.

So if possible from a technical and regulatory point of view, the FM transmitter should have a higher power output, the current level is just too low.

How the LTE Core Network talks to UMTS and GSM

An important functionality that has to be in place when LTE networks are launched from day one is the ability for mobiles to roam from LTE to other types of radio access networks. In most parts of the world except for the US and Canada, that is UMTS and GSM. While doing some research on this topic as to how that works from a network point of view, all books I have come across so far point to the new S3, S4 and S12 interfaces between the 2G and 3G network nodes (the SGSN and RNC) and the LTE core network nodes (or the Evolved Packet Core (EPC) to be precise), i.e. the Mobility Management Entity (MME) and the Serving Gateway (S-GW).

One might be happy with this answer from a theoretical point of view but in practice this approach might be a bit problematic. As the functionality has to be there from day one, using the new interfaces means that the software of the 2G/3G SGSNs and RNCs need to be modified. Now one thing you don't want to do when introducing a new system is to fiddle with the system that is already in place as you've already go enough work at hand. So I was wondering if there was an alternative to introducing new interface, even if only for Inter-RAT (Inter Radio Access Technology) cell reselection triggered by measurements on the mobile side.

It turned out that there is. After some digging, annex D in 3GPP TS 23.401 provided the answer (sometimes I wonder what is more important, the specification text or the annexes…). Here, a network setup is described where the 2G and 3G SGSN is connected to the LTE world via the standard Gn interface (Gp in the roaming case) to the MME and the PDN-Gateway. To the SGSN, the MME looks like an SGSN and the PDN-Gatweay looks like the GGSN. No modifications are required on the 2G/3G side. On the LTE side, this means that both the MME and the PDN-Gateway have to implement the Gn / Gp interface. But that's something that has to be done on the new network nodes which means its not a problem from an real-live network introduction point of view. With the Gn / Gp interface support in place, the introduction of LTE and roaming between different radio access networks could be introduced as follows:

Cell Reselection Only at First

To make things simple, LTE networks are likely to be launched with only cell reselection mechanisms to 2G and 3G networks instead of full network controlled handover. That means that the mobile is responsible to monitor signal strengths of other radio networks when connected to LTE and autonomously decide to switch to GSM or UMTS when leaving the coverage area of the LTE network. When using the GSM or UMTS network the mobile also searches for neighboring LTE cells and switches back to the faster network once the opportunity presents itself (e.g. while no data is transmitted).

Handovers Follow Later

The advantage of cell reselection between different types of access networks is that they are simple and no additional functionality is required in the network. The downside is that when a network change is necessary while a data transfer is ongoing the mobile will either not attempt the change at all or the change results in an temporary interruption of the ongoing data transfer. The answer to the downside is to perform a network controlled handover between the different radio systems. This makes the change between access networks a lot smoother but requires changes in both the new and the old radio networks. On the GSM/UMTS side, the software of the base stations and radio network controllers have to be upgraded to instruct the mobile to also search for LTE cells while the mobile is active and to take the results into account in their existing handover mechanisms. As far as I can tell, no modifications are required in the SGSN, as transparent containers are used to transfer non-compatible radio network parameters between the different networks.

Packet Handovers Today

At this point I think it is interesting to note that packet handovers are already specified today for GPRS/EDGE to UMTS and vice versa. However, I haven't come across a network yet that has implemented this functionality. Maybe it is the speed difference between the two radio access networks that makes the effort undesirable. Between UMTS and LTE, however, such packet handovers might finally make sense as in many scenarios, the speed difference might not be that great.

The GGSN Oddity

One last thought: In annex D, the 2G/3G GGSN functionality is always taken over by the PDN-GW. That means that an LTE capable mobile should never use a 2G/3G only GGSN when first activating a PDP context in GPRS/EDGE or UMTS. If this was done I don't see how it would be possible to reselect to the LTE network later. This is due to the fact that the GGSN is the anchor point and can't change during the lifetime of the connection. If an "old" GGSN would be the anchor point, then the MME and S-GW would have to talk to the "old" GGSN after a cell reselection or handover from GPRS/EDGE or UMTS to LTE instead of a real PDN-GW. That's a bit odd and I don't see this described in the standards.

There are several ways how that could be achieved. Using a special APN for example that triggers the use of a combined GGSN/PDN-GW when the connection is established could be a possibility or the analysis of the IMEI (the equipment ID). While the first idea wouldn't require new software in the SGSN, the second one probably would and then there is always the chance that you miss some IMEI blocks in the list on the SGSN, especially for roamers, so it's probably not such a good idea after all. Another option would be to replace the GGSNs in the network or upgrade their software so they become combined GGSNs/PDN-GWs. However, there some risk involved in that so some network operators might be reluctant to do that at the beginning.

If you know more about this or have some other comments or questions in general, please leave a comment below.

LTE and the SMS Question

As standardized today, LTE does not have built in SMS capabilities. In a recent webinar on VOLGA (Voice over LTE via GAN), Franz Seiser of Deutsche Telekom (formerly T-Mobile International) argued that this might be a significant issue in the future for a number of reasons.

First, he said, there are a lot of systems in the network that rely on SMS such as SIM card provisioning, for updating the roaming operator list and other data on the SIM card for example, SMS subscription to activate/deactivate add-ons, etc.

Second is the EU mandated SMS user interaction while roaming. Introduced during the first wave of roaming regulation, operators are obliged to inform their subscribers by SMS about roaming costs when they start using a network abroad. In the future, notification to prevent "bill shock" (e.g. when using mobile data abroad) might also be based on SMS.

While the roaming tariff SMS announcements for voice and SMS are probably meaningless for LTE networks that do not support voice and SMS, the notification about bill shock might very well apply to LTE as well. Unless of course, the same tariff applies abroad like at home. Unlikely I would say…

So I quite agree with Franz, if a network allows VOLGA roaming in the future, the SMS solution already comes included at no extra price.

Another option is using SMS as part of the CS fallback (CSFB) feature that is already standardized. However, if the roaming country does not support CSFB and the mobile device is mostly data centric, then the SMS can't be delivered. While it's pretty obvious that a USB data dongle is a data centric device, I wonder what an iPhone or an N97 qualifies as.

And then there is SMS over IMS. However, I doubt we will see IMS and mobile IMS clients anytime soon.