Inrastructure

Infrastructure
Sales of advanced handsets such as those described above and the development of value-added non-voice services are growing. Mobile network operators around the world are hoping to emulate the success
of operators in Japan and South Korea. Many network operators are launching third generation (3G) networks in 2004 and 2005, and these promise fast, broad bandwidth connections, enhanced multimedia and advanced services such as video conferencing. However, most observers
believe that full availability and mass adoption of 3G services will take a few more years.
Many companies are still experimenting with ways of making money from mobile data using the current GSM or 2G networks and the so-called 2.5G networks (2.5G is 2G with faster and more efficient data transmission resulting from transmitting messages in labelled ‘packets’, thus allowing
many users to share a single connection). 2.5G networks are enabling subscribers to access a wide selection of new non-voice services and operators hope that consumer familiarity
built now will lead to 3G mass adoption later. Meanwhile, the performance of 2.5G networks will be improved by the new EDGE technology. EDGE (Enhanced Data Rates for GSM Evolution) is a technology that increases capacity, improves quality and allows use of advanced services over the
existing GSM network. EDGE is an upgrade of the GPRS (General Packet Radio Services) system for data transfer in GSM networks. The Norwegian telecommunications company Telnor claim (Johnsen 2004) that the EDGE data transfer rate is substantially faster than possible speeds using
GPRS technology and can reach between 100 and 200 kbit/s under perfect circumstances. EDGE implementation does, however, require upgrades to both base stations and mobile phones.