One of big benefits of WCDMA technology：Great cost savings for GSM operators

Previously, I have mentioned that there are a lot of advantages and benefits of WCDMA technology over other technology in mobile market. This time we will closely look at one of these benefits: cost savings. When evolving from a pure GSM network to an integrated GSM/WCDMA one, two different areas are the sources of cost savings: capital expenditures and operating expenditures. Both will be analyzed below with regard to potential savings.

1. Capital expenditures saving areas
As we can see, the seamless network certainly protects an operator’s GSM investment by reusing GSM resources when evolving toward a 3G network. There are several areas in which operators can realize savings:
(1) The radio access network;
(2) The packet-switched core network;
(3) The circuit-switched core network;
(4) Charging and billing.

For example, the radio access network, one of the most expensive parts of a wireless network, offers several areas for potential savings when building the UTRAN, such as
• Sharing the UTRAN with other operators.
• Co-location and coexistence of GSM and WCDMA
• Using common operations and management subsystems for both GSM and WCDMA
• Having cabinet footprint and installation methods be the same in 2G and 3G.

Additional savings in the operations field are possible because all the established procedures for maintenance, technical support and spare parts management remain the same. What’s more, little to no additional training is required for the field support engineers.

2 operating expenditures saving areas
There are many benefits from operating the GSM and WCDMA networks as a single network, especially when it comes to saving operational costs. With two separate networks, the complexity of running the operator’s business increases exponentially. The operator can also realize significant savings by choosing fewer vendors to provide its network.

Here, we will analyze the major aspects of the single network and the vendor operator relationship with regard to potential savings and ease of operations. They are:
(1) Customer service management: is one of the biggest expenses of running a mobile operator business. Having a common customer care system, a single subscription and one billing system leads to substantial operating expenditures savings, both in terms of personal and training costs. The layered architecture of the seamless network makes it possible to realize these savings.

(2) Technical planning: For every network and vendor, the operator needs to establish an interface team in order to plan and to coordinate ongoing operations. This results in additional costs for highly skilled personnel on both the management and technical levels.

(3) Training: Maintaining two separate networks, each with its specific products, significantly increases the cost of training. Bringing in network equipment from a new vendor automatically leads to new training requirements for operating, maintaining and supporting the new products.

(4) Installation services: especially in the radio access network, comprise a major portion of operational costs. Efforts behind the initial deployment of all network elements are much higher when equipment from different vendors. This smooth evolutionary path enables predefined interconnection and facilitates upgrade procedures. This requires less material and offers smoother installation compared to overlaying equipment from other vendors. It also reduces the human effort and leads to cost reductions.

There are still a lot of other aspects, such as operations, maintenance and support, interoperability testing, processes and human interfaces. The strategy of a GSM/WCDMA seamless network adds flexibility in the 3G deployments, enhances system performance, and protects network investments through reuse of resources. This solution will help the operator secure the satisfaction and loyalty of its great amount of current GSM subscribers. I think every GSM operator will agree that this vital asset must be protected during this GSM to WCDMA transition period, because it is the foundation for future 3G businesses.