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The Importance of Indoor Solutions in 3G
22nd July 2002

In order to successfully enter an established market place, a 3G operator not only needs to provide a high quality network, but also to differentiate its services from the competition.

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The financial expectations force most operators to quickly develop a strong customer base. We believe that most 3G operators will focus on the corporate market in order to quickly generate steady and solid revenues. In order to successfully approach potential corporate clients, and convince them to switch from a 2G service, a 3G operator needs to offer one or more of the following :
•Lower prices
•New end-user services
•Better service quality

An operator planning to offer his customers the above, needs to design his network to support the associated demands on quality and capacity. To do so, he will have to use indoor solutions at a much greater extent and at an earlier point in time than was the case for 2G. The indoor market for 3G is expected to be bigger and also to start earlier than for 2G, mainly for the following reasons:

•Insufficient coverage from macro sites
Most 3G operators are forced to rely on the reuse of existing 2G sites also for 3G macro sites. The resulting indoor coverage is not expected to be sufficient for addressing the corporate market and private business users.

•Different end-user behaviour in 3G
The 3G user will welcome the possibility of combining his current mobile communication services like voice and SMS with new ones like: e-mail, internet, multimedia messaging and video. This will significantly increase the traffic demand per user.

•Higher expectations on network quality
A single hot spot of users could jeopardize the network quality in a large part of the network if not dealt with.

•Reduced investments and quicker payback for indoor solutions
Dedicated indoor solutions is the most cost-effective method for providing the coverage and capacity needed to support a corporate client. This is valid both for the short and the long
term.

In this document we analyse these factors and their effect on the 3G operator’s choice of strategy for network design and deployment. A 3G operator needs to provide a
higher quality network Dedicated indoor solutions will be needed earlier and to a higher
degree for 3G than for 2G Reasons why:
Coverage
Usage
Quality
Payback

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