4g services, architecture and networks: speculation and challenges copyright © 2003 docomo...
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4G Services, Architecture and Networks:Speculation and Challenges
Copyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Ravi [email protected] 24, 2003
Keynote address: Conf. on Mobile Data Management (MDM) 2003, Melbourne, Aus.
1/24/2003 2Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Outline
• Introduction and Motivation• What is 4G anyway?• Pet peeves• Summary
1/24/2003 3Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Summary
• 4G should be defined in terms of applications and services– Not purely by air interface protocol, backbone network or bandwidth
• Coming: Gazillions of gizmos– Need for massive mobile data management
• Rapid service introduction and heterogeneous technologies (air interface, terminal device, backbone)
=> programmability and open APIs at all levels of the system
=> applications with market size of 1
• Maturing industry=> attend to environmental impacts (Jain & Wullert, Mobicom 02)
– Plateau of revenue in current markets
=> B24B
1/24/2003 4Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
IntroductionMobile devices will dominate
Source:Risto Perttunen, McKinsey, 9/00
PCs
TV households
Mobile phone
Subscribers worldwide
Millions
Wireline phone
0
200
400
600
800
1,000
1,200
1,400
1998 1999 2000 2001 2002 2003 2004 2005
1/24/2003 5Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Cellular vs Internet penetration(Data from: ITU, 2001)
c = 1.51 i
R2 = 0.44
0
10
20
30
40
50
60
70
80
90
100
0 20 40 60 80 100
Internet penetration
Ce
llu
lar
pe
ne
tra
tio
n
India
Brazil
Italy
Aus.
Ger.
UKFin. Neth.
Sw.
Taiwan
China
Japan
S. Kor.
Den.
USA
Canada
Spain
Fr.
Malay.
1/24/2003 6Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Strong growth in subscribers
44.050.0
55.3
69.2
86.0
100.0
0
20
40
60
80
100
120
Dec-96 Mid-97 Dec-97 Dec-98 Dec-99 Jul-00
Mill
ion
s o
f S
ub
sc
rib
ers
Subscribers Double 97- 00
Source: CTIA, 2000
1/24/2003 7Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Usage high … and rising in all countries
221
204
186 182
145137 132 132
123
0
50
100
150
200
250
U.S
.
Sw
eden
U.K
.
Fra
nce
Eu
ro A
vg.
Sp
ain
Ital
y
Fin
lan
d
Ger
man
y
Av
era
ge
MO
U P
er
Mo
nth
Source: CTIA, 2000
1/24/2003 8Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Availability of wireless data devices increasing
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1998 1999 2000 2001 2002 2003 2004 2005
Wireless Internet (% of Population with capable devices)
Internet Penetration (% of Population)
Source: CTIA, 2000
1/24/2003 9Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
BUT ….$ / MoU Falling
$0.45
$0.53
$0.58 $0.57$0.54
$0.43
$0.35
$0.28
$0.24$0.22
$0.20 $0.19 $0.18 $0.17
$0.56
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Av
era
ge
Pri
ce
Pe
r M
inu
te
Source: CTIA, 2000
1/24/2003 10Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.Source: CTIA, 2000
44.050.0
55.3
69.2
86.0
100.0
0
20
40
60
80
100
120
Dec-96 Mid-97 Dec-97 Dec-98 Dec-99 Jul-00
Mill
ion
s o
f Su
bsc
rib
ers $0.45
$0.53
$0.58 $0.57$0.54
$0.43
$0.35
$0.28
$0.24$0.22
$0.20 $0.19 $0.18 $0.17
$0.56
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Av
era
ge
Pri
ce
Pe
r M
inu
te
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1998 1999 2000 2001 2002 2003 2004 2005
Wireless Internet (% of Population with capable devices)
Internet Penetration (% of Population)
Subscribers Double 97- 00 $ / MOU falling
221
204186 182
145137 132 132
123
0
50
100
150
200
250
U.S
.
Sw
eden
U.K
.
Fra
nce
Eu
ro A
vg.
Sp
ain
Ital
y
Fin
lan
d
Ger
man
y
Av
era
ge
MO
U P
er
Mo
nth
Usage high . . . And rising
Data Services Exploding
Strong Growth in Subscribers, Minutes, Data BUTFalling $/MOU
1/24/2003 11Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
DoCoMo ARPU DoCoMo ARPU (voice and i-mode)(voice and i-mode)
108009270
(8620)
(120)
(7770)
(880)
(6940)
(1540)
0
2000
4000
6000
8000
10000
12000
3/98 3/99 3/2000 3/2001 3/2002
i-mode
Voice
86508740
(JY)
8480
Source: NTT DoCoMo Website, www.nttdocomo.com Investor Relations
1/24/2003 12Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Mobile Multimedia ( i-mode Access BreakdownMobile Multimedia ( i-mode Access Breakdown*1*1))
i-mode Accessesi-mode Accessesi-mode Accessesi-mode Accesses iMenu Site Breakdown by Category iMenu Site Breakdown by Category *2*2iMenu Site Breakdown by Category iMenu Site Breakdown by Category *2*2
34%34%
20%20%21%21%
14%14%
5%5%6%6%
21%21%
5%5%5%5%
20%20%3/023/023/023/02
3/013/013/013/01
37%37%
12%12%
iMenu sites
i-mode compatible sites
Other entertainment
Ring tone / Screens
Games / Horoscope
Database
Information
Transaction
50%50%
23%23%
27%27%
39%39%
31%31%
30%30%
*1 The numbers represent the percentage to the total accesses made as March 2001 and March 2002. *2 % of each category out of total number of hits to iMenu sites as provided by content providers in March and March 2002
Source: NTT DoCoMo website
1/24/2003 13Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
1 billion gizmos by 200x (Choose x = 4, 5, ...)
• Gizmos and technology originally developed for one purpose will be used in new and innovative ways for other purposes– e.g. Bluetooth was primarily designed as a cable replacement but
can be used as a location technology
• Two parallel, contradictory (or complementary) gizmo trends leading to different location needs and capabilities– Integration:
• cell phone as pager, organizer, e-wallet, radio, media player ...
– Specialization: • different functionality, form factors, power requirements, connectivity,
processing and storage, fashion niches
1/24/2003 14Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Example: integration
• DoCoMo 3G FOMA phone• Download 684 kbps, Upload 64 kbps
(nominal)• Still and video digital camera
– Add text and frames to pictures or split into a jigsaw puzzle
– Send as email
– Share video while talking
• Remote video monitoring using a second phone
• i-motion service for multimedia content download (music, movie clips etc)
Source: NTT DoCoMo website
1/24/2003 15Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
3G Woes
• 3G in Europe – Too little, too late, too pricey?– Sonera/Telefonica cancellation
• 3G in USA – Sprint PCS– AT&T rollout
• 3G in Japan– FOMA: first out the gate
1/24/2003 16Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
WLAN: Threat or Opportunity
Source: Pyramid research
1/24/2003 17Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Interaction characteristics
• Human-Human: – voice, text, multimedia conversation and messaging– 3D video
• Human-Machine: – web access, remote operation– virtual reality
• Machine-Machine: – telemetering, sensor/actuator networks– ubiquitous computing
1/24/2003 18Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Traffic characteristics
Voice
Multimedia
50 %
50 %
70 – 80 %
20 – 30 %
2000 20102005
Rel
ativ
e T
raff
ic
1/24/2003 19Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Outline
• Introduction and Motivation• What is 4G anyway?
– Ways of defining 4G– My view: 4G Imperatives– Database issues in 4G
• Pet peeves• Summary
1/24/2003 20Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Ways of defining 4G
• Historically wireless generations have been defined in terms of air interface technology, focusing on raw bandwidth
• As 3G demonstrates, good wireless access technology and high raw bandwidth is no longer sufficient for business success
• Thus for 4G it seems more appropriate to use other criteria– Technology view– Network operator view– User view
1/24/2003 21Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Technology view: Bandwidth
100 M
1985
10 K
100 K
1 M
10 M
1990 2000
PDCGSM
TDMAcdmaOne
GPRS
cdma20001X
WCDMA
cdmaOne1X EV-DC, 3X
EDGE
20102G 2.5G 3G 3.5G 4G1G
AMPS
802.11
802.11b5.5/11 Mb
802.11PBCC
BT
H2
Speed bps
BT = BluetoothH2 = Hiperlan 2PDC = Personal Digital Cellular
1/24/2003 22Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Alternative ways of classifying generations:Other technology views
• Layer 1 and Layer 2 wireless interface protocols– Analog -> Digital -> WCDMA
• Cell sizes or types– Cells -> Microcells -> Picocells … Hotspots
• Network (Layer 3) wireless layer protocol– Layer 1&2 specific -> (proposed) Wireless ATM -> (proposed)
Wireless IP
• System architecture– Loosely connected wireless islands -> Tightly integrated with PSTN ->
Tightly integrated with Internet
• But this is really a bottom-up view …• Where’s the money?
1/24/2003 23Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Alternative ways of classifying generations:Network operator view
• Cost: Spectral efficiency– bps/Hz– bps/Hz per cell
• Cost: System efficiency– $ per bps/Hz– $ / (bps/Hz) m2
• Revenue– ARPU– $ / MoU – $ / packet– $ / bit
• Market share: – Penetration– ARPU*penetration
• But where’s the user in all this …?
1/24/2003 24Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Wireless generations: User’s view(1 of 2)
Attribute 1G 2G 3G 4GCost
Initial High Low Low Flexible
Per-min Very high High Affordable Flexible
Installation Inconvenient Quick or instant
Instant Instant; DIY
Handset Clunky, heavy
Reasonable for voice, poor for data
Good for voice, poor for data
Many, app-specific
Battery life Very Low Low Low 1 week use
1/24/2003 25Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Attribute 1G 2G 3G 4GVoice quality Poor Reasonable Good Excellent
Coverage Poor Reasonable Good Excellent
Roaming None orInconvenient
Reasonable Good for voice Seamless for all apps
Voice services
Few Basic telephony Reasonable Many; DIY
Data None Limited Limited Many
WWW N/A Poor Limited Convenient
Other user issues
Decreasing $/MoU but Increasing total $/month
Security: w-spam,privacy, etc
Tradeoff security/QoS for price.
Low Environment Impact
Wireless generations: User’s view(2 of 2)
1/24/2003 26Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
User‘s view: This is just the beginning
Source: Rainer Malaka, EMLICDE 2001
1/24/2003 27Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
ITU-R view
Peak Useful Data Rate (Mb/s)
IMT-2000
Mobility
Low
High
1 10 100 1000
New Mobile Access
New Nomadic / LocalArea Wireless Access
EnhancedIMT-2000
Enhancement.
Source: ITU-R WP8F Vision
1/24/2003 28Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
ITU-R view
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IP basedCore Network
Services andapplications
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
Packet basedCore Network
Services andapplications
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IP basedCore Network
Services andapplications
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
IMT-2000
WLANtype
Cellular2nd gen.
Short RangeConnectivity
WirelinexDSL
otherentities
DigitalBroadcast
download channel
New RadioInterface
Packet basedCore Network
Services andapplications
Source: ITU-R WP8F Vision
1/24/2003 29Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Another view:4G Imperatives (1 of 4)
• Innovative applications, not voice, will be the key revenue generatorProgrammability and Open APIs
while maintaining security, QoS, and bill-ability
Foster a 3rd-party app developer communityBuild on work centered on fixed networks (Parlay, JAIN,
OSA)
The search for the killer app should never endAny static portfolio of applications and services will
eventually become a commodity
Radical personalization and niche applicationsApplications with a market size of 1
1/24/2003 30Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Another view:4G Imperatives (2 of 4)
• True convergence with the Internet is critical IP must be supported efficientlyRemove discontinuities at the wired/wireless
interface and the data/voice interfaceThe Internet must also evolve to support wireless
mobility and ubiquity efficientlyExample: Fundamental addressing issues dictate IPv6
Example: Fundamental inefficiencies in supporting mobility must be removed
Example: Use of proxies vs the end-to-end argument must be investigated critically
1/24/2003 31Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Another view:4G Imperatives (3 of 4)
• Spectrum will remain the vital resource– Integrate with unlicensed spectrum
• Allow creative technology and business models for seamless inclusion of hotspots and multihop WLAN and other technologies
– Operator-owned and 3rd-party owned WLAN elements– Aggregator and community access models
– Manage licensed spectrum efficiently• Consider dynamic and market-based mechanisms for on-
demand spectrum allocation
1/24/2003 32Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Another view:4G Imperatives (4 of 4)
• Allow rapid organic, bottom-up technology introduction• Flexibly integrate multiple air interface technologies
that coexist and provide synergy• Flexibly support multiple devices that coexist and
provide synergy
• Usability and User Interfaces will remain key– New UI and devices will extend the application space (C.f. Palm PDA)
Needed: The Sony Walkman of 4G (with Tactile, Speech, & other UI)
1/24/2003 33Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
4G: An evolvable, programmable, multi-tier multi-device network
Bluetooth,Infrared
CellularSatelliteWirelessLAN, HomeRF, etc
1/24/2003 34Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
4G:The Basic Model
NativeApplications
IP-Based Core Network
3G / Native Access
3rd-partyApplicationsVoice
3G / 3rd-party
Access
Native
WLAN
Hotspot
3rd-party
WLAN
Hotspot
4G Access Network
Emerging
Access
OPEN API
OPEN API
PAN, CAN, AAN etc.
OPEN API
Middleware
1/24/2003 35Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Evolution towards 4G
• 3.5G: An All-IP network (i.e., with Wireless IP) integrating all our current favorite IETF protocols (MIP, FMIP, HMIP, CARD, PANA, etc )
• 4G: A programmable, flexible, application-oriented Web-based architecture suitable for fundamentally supporting – mobility– WWW– ubiquitous computing– semantics-aware applications– …
1/24/2003 36Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Database issues in 4G:Evolution of database network architectures
• Centralized
• Distributed
• Mobile wireless database access– Database access using a gizmo
• Ad-hoc database networks– Database on the gizmo
1/24/2003 37Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Viability
• Mobile DB market– Connect mobile workers to back-office enterprise servers
– Vertical markets: Field service, transportation, retail, utilities, financial, healthcare, government
– Gartner: $70M in 2001, Up to ~$150M in 2006 (16% CAGR)
• Need a clearer business case for further architecture evolution– Sensors to a DB: for niche vertical applications?
– Pervasive and Ad-hoc networked databases?
1/24/2003 38Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Information management:Location, location, location
• The easiest way to add context to the user experience• Also maybe the easiest way to add value• Total location information management in a comprehensive multi-
tier wireless network with seamless connectivity
• Location estimation• Location (i.e. “next-cell”) prediction• Location privacy
Bluetooth,Infrared
CellularSatelliteWirelessLAN, HomeRF, etc
1/24/2003 39Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Location management: It’s not just for gizmos anymore!
• Mobile software will become an increasingly important aspect of next generation networks and applications– Mobile agents, active networks, mobile code, programmable networks,
etc.
• Mobile software to serve a (mobile) user– A user agent for personalized information retrieval, shopping, etc– Makes particular sense for information access over a wireless link– Jain and Anjum, IEEE WCNC, 2000
• Mobile software to serve the network provider– Mobile software in the network to decrease the cost of personalized
information delivery to (mobile) users– Shah, Jain, Rajagopalan, Anjum, 2001
• Managing the itineraries and location of mobile software modules will be a major challenge– Security, cost, and efficiency implications
1/24/2003 40Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Database needs: gizmos as blessing (and curse ...)
• Where is my gizmo?– Databases for managing the location and mobility of distributed
communicating devices
• Where is the user (or object) who has my (or this) gizmo?– Databases for using devices and connectivity to identify, authenticate,
and locate users -- as well as other devices
• What can my gizmo do for me today?– Databases for dynamic service discovery, download, and activation
• Why can’t my one gizmo do everything?– Integrating database facilities with other horizontal & vertical applications
• Why can’t I have a special gizmo to do this one thing I need?– Application-specific micro-databases and database micro-clients
• Why can’t my gizmo and your gizmo figure things out together?– Database transactions across ad-hoc networks
1/24/2003 41Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Outline
• Introduction and Motivation• What is 4G anyway?• Pet peeves• Summary
1/24/2003 42Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
A maturing industry
$0.45
$0.53
$0.58 $0.57$0.54
$0.43
$0.35
$0.28
$0.24$0.22
$0.20 $0.19 $0.18 $0.17
$0.56
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Av
era
ge
Pri
ce
Pe
r M
inu
te
New Challenges Require Creative Thinking
CTIA, 2000
1/24/2003 43Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
B24B
Provide useful, affordable Information Technology services to the 4 billion people on
the planet earning less than $2000 per yr
• A Grand Challenge if there ever was one– Kalil, 2002– Prahalad & Hammond,
HBR, 2002
2B
1B
4B
> $20K
$2 - $20K
< $2K
1/24/2003 44Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Why?Enlightened Self-Interest (1 of 2)
• New markets are the key to growth– Penetration and ARPU is saturating in the developed world– The economies of less developed countries are growing faster
than the developed world• Hence less headroom for ARPU
– The population of less developed countries is growing faster– The penetration of IT in less developed countries is miniscule
• although increasing rapidly at the top of the local pyramid
1/24/2003 45Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Why?Enlightened Self-Interest (2 of 2)
• “we renew our commitment to the principle of inclusion: everyone, everywhere should be enabled to participate in and no one should be excluded from the benefits of the global information society.”– Okinawa Charter on the Global Informaton Society, G8 Summit in
Okinawa, Japan, 2000
• In the long run, stability and prosperity everywhere is interconnected– “There will be no stability and prosperity in the world in the 21st
Century unless the problems of Africa are resolved.”• Japanese PM Y. Mori, Jan 2001
1/24/2003 46Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Frequently Raised Objections (FRO)
• The poor don’t need PCs and broadband, they need food, water, power …– True, but only partially– We are not proposing PC and broadband, but IT that can help
them procure their basic needs• Example: Price discovery for agricultural produce
1/24/2003 47Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
FRO:The poor don’t have money to buy IT
• “The poor” are not a homogeneous mass: vast differences between urban and rural– Dharavi, a shantytown in Mumbai (Bombay, India)
• Buying a house or access to indoor running water is unrealistic• Penetration of TV: 85%, Pressure cooker: 75%, Mixer: 75%, Gas
stove: 56%
• Large amount of aggregate purchasing power– Grameen Telecom village phone model– A single entrepreneur’s cell phone is used by the entire village– Mean ARPU = $90 (~ twice of US)– Max ARPU = $1000– Consumers willing to spend 7% of their income on phone
service
1/24/2003 48Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
FRO:Goods must be cheap so no room for profit
• True, but only partly• The Poverty Premium
– Dharavi (shantytown) vs Warden Rd (upper-class suburb)• Water: 37X, Diarrhea medication: 10x, Rice: 1.2x• Phone call: 1.8x
• Cost of delivering goods to urban poor can be low– Most live in densely populated cities– Roughly half of the Bottom of the Pyramid lives in 1300 cities– Many of the slums of these cities have a thriving, commercial,
entrepreneur-driven micro-economy
1/24/2003 49Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
FRO:The poor cannot use advanced technology
• All new technology requires consumer awareness and education– Building this, at least for the urban poor, can be less costly
than in developed countries– A much softer sell is necessary: the technology is obviously
needed
• Grameen Telecom: Poor rural women in Bangladesh easily learn to use GSM phones although may have never made a phone call in their life
• In Kenya, poor teenagers are successfully trained as Web developers
1/24/2003 50Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Success metrics
• Individual– Number of people with access to connectivity within walking distance
– Cost equal to a cup of coffee a day
• Societal– Number of people who cross the poverty line
– Improved health (education, telemedicine, etc)
– Better preparation and response to disasters
– Free flow of information
1/24/2003 51Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Technical Challenges (1 of 2)
• User interfaces– Multi-lingual– Cross-cultural– Simpler and more intuitive
• Less reliance on infrastructure– Ad-hoc and multi-hop networks– Better power usage and alternative power sources
• Better support for resource and device sharing– Privacy and security– Immediate and itemized charging, billing, and payment– Personalization
1/24/2003 52Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Technical Challenges (2 of 2)
• Modular, streamlined products– Remove the unnecessary bells and whistles– Allow incremental upgrade and pay-only-for-what-you-use– Better software and system design
• Biometric and non-linguistic security
• Be open to Reverse Flow of Innovation– Incorporate diverse feedback loops into the product process– Examples: handcrank radios, MiniGSM
1/24/2003 53Ravi JainCopyright © 2003 DoCoMo Communications Laboratories USA, Inc. All Rights Reserved.
Summary
• 4G should be defined in terms of applications and services– Not purely by air interface protocol, backbone network or bandwidth
• Coming: Gazillions of gizmos– Need for massive mobile data management
• Rapid service introduction and heterogeneous technologies (air interface, terminal device, backbone)
=> programmability and open APIs at all levels of the system
=> applications with market size of 1
• Maturing industry=> attend to environmental impacts (Jain & Wullert, Mobicom 02)
– Plateau of revenue in current markets
=> B24B