Europe's Standard Shows Way Forward for Private Mobile Radio

Research Brief Europe's Standard Shows Way Forward for Private Mobile Radio Abstract: Terrestrial Trunked Radio (TETRA) was developed as a standard for the radio networks of emergency services. Improved high-speed data protocols make TETRA an attractive choice for governments and commercial organizations. By Jason Chapman Recommendations Public safety organizations should look to Terrestrial Trunked Radio (TETRA) as a common longterm technology standard when upgrading digital private mobile radio (PMR) systems. Public safety organizations converging to a single PMR network must plan for considerable internal process re-engineering as multiple agencies migrate to a single shared network. TETRA migration paths are still being defined. Vendors and network operators must balance potential feature advantages with costs and license conditions when deciding which route to pursue. Industries looking to deploy or upgrade PMR services must consider the value-added data capabilities of TETRA as well as its high initial cost. Publication Date: 8 July 2003

2 Europe's Standard Shows Way Forward for Private Mobile Radio Private Mobile Radio in Europe Global political events have led to an increased focus on security and safety. Governments have taken the opportunity to upgrade communications systems and improve the operating efficiencies of emergency organizations such as the police, fire services and ambulances. These changes have made TETRA an important technology for digital private mobile radio (PMR) in Europe. In the commercial marketplace, TETRA is being considered as a public access mobile radio (PAMR) technology by organizations that need value-added data services when moving from an old analog radio system to a digital one. Contract values in the commercial PAMR market are smaller than large government-led PMR initiatives, but there are far more potential projects. The market for TETRA systems continues to grow, but with about 300,000 handsets in service, it is far short of its target of 1 million users. Governments throughout Europe, Asia and the Middle East are looking to deploy TETRA networks, making this one area of telecommunications that appears to be avoiding the downturn. Some mobile operators claim to offer alternative solutions using traditional wide area technologies, but differences in end-user requirements mean they are unlikely to succeed. Wide area mobile technologies will be complementary to TETRA, rather than a substitute for it. PAMR networks, like those offered by Dolphin Telecom in the United Kingdom and France, target blue- and gray-collar workers with voice services. But in the longer term, PAMR operators want to offer enhanced packet-data services and are looking at the next generation of supporting technologies. In the United States, this model has proved successful for Nextel, which offers a push-to-talk service based on Motorola's Integrated Dispatch Enhanced Network (iden) standard. Defining a European Standard European and U.S. PMR network technologies and users are changing as governments, public safety and security organizations and commercial radio operations consider migrating from aging analog radio networks to higherperformance digital ones. When addressing the need to upgrade, European governments followed the model for the development of the Global System for Mobile Communications (GSM) standard. They used the European Telecommunication Standards Institute (ETSI) to build TETRA. It is based on a familiar time division multiple access (TDMA) interface, and supports both broadcast and direct mode operation. Direct mode allows handsets to communicate with each other directly over a limited area. Used on most PMR networks, the feature is not often provided by PAMR operators. By defining the standard for the air interface, ETSI enabled terminals supplied by multiple vendors to operate on one TETRA network. Network element interfaces those between base stations and switches were not standardized, because of the additional costs that would have been involved for the more limited number of potential sales. Standardization has led to a large number of vendors, including Motorola, Nokia, Siemens and Thales, supporting TETRA and giving end users a greater choice when purchasing network and terminal equipment. Smaller manufacturers can develop TETRA solutions knowing that there is a large potential market and not just one custom project.

3 Can Cellular Networks Address Private Mobile Radio Users' Needs? PMR users place different demands on their networks than those of cellular GSM and code division multiple access (CDMA) networks. PMR users' key needs are: Rapid and clear communications, without call setup delays A secure communications channel, with variable groups of people A guaranteed communication channel, whatever the traffic loading, especially in emergency situations Control of calling groups and dispatch functions that can be defined and controlled by users The introduction in 2003 of push-to-talk functionality over GSM's general packet radio service (GPRS) may be seen as a potential threat to TETRA. However, call setup times over GPRS networks and the delay between sending and receiving voice messages mean that push-to-talk over GPRS does not match the needs of TETRA users. While push-to-talk over GPRS will be a very attractive mass-market form of instant voice messaging, its setup delay of two or three seconds cannot replace the TETRA equivalent of less than 300 milliseconds. Table 1 compares technologies of TETRA, GSM/GPRS and iden. Table 1 Technology Comparison TETRA, GSM and iden TETRA GSM/GPRS iden Latency 200 to 300 milliseconds 2 to 3 seconds 1 second Data Rate 7.2 Kbps, increasing to a theoretical 350 Kbps for Release 2 9.6 Kbps for circuit-switched GSM; 30 Kbps for GPRS 9.6 Kbps for circuit-switched data; 20 Kbps for packet-switched data Frequency Band Regulatory Issues Terminal Availability Infrastructure Vendors 380-450MHz (Europe); 850-900MHz (China) Next-generation TETRA needs new frequency bands More than 10 vendors; higher costs than GSM/GPRS models Four main infrastructure system vendors. Infrastructure costs are higher than GSM. 850MHz, 900MHz, 1800MHz, 1900MHz GPRS operates in same frequency bandsasgsm Largest mobile standard, widespread availability of low-cost devices from multiple vendors At least seven large vendors; mature technology with lowest infrastructure costs 800-850MHz Standard frequency licensing Limited availability from Motorola, increased functionality requires higher-tier devices Only Motorola products available Standards Based on open standards Based on open standards Proprietary to Motorola Source: Gartner Dataquest (June 2003) TETRA addresses the demand for clear communications, even in environments with high background noise. For example, police attending a demonstration or riot must be able to communicate clearly. As part of the TETRA design, background noise is monitored and suppressed from the transmission, so only fluctuations in sound levels, such as speech, are transmitted. If background noise changes, this will be transmitted briefly until it is recognized as ambient sound. The GPRS push-to-talk service does not offer this feature, which is not needed by the mass market. Safety and security users must have the radio capacity to support their communications needs. During a large-scale incident, emergency services must be able to communicate with each other immediately. This may not be possible if they are sharing radio capacity with the general public, who will need to communicate with family or friends. TETRA has its own dedicated spectrum, managed by the network operating organization. Use of the spectrum is controlled, with calling groups and users having different priority levels to ensure that critical communications get through.

4 Europe's Standard Shows Way Forward for Private Mobile Radio One calling group and priority control scenario would be in an airport. If a suspicious piece of luggage were found, police would need to communicate with specific baggage handlers immediately. Changes to the calling groups for the police and baggage handlers would be made in real time to guarantee a communication path between the handler and the police. Such changes to calling groups are controlled by a central dispatcher, who monitors communications and controls radio operations. In a cellular mobile network, similar working groups can be set up using a virtual private network (VPN), which is configured within the network's service architecture, typically on the intelligent network. These VPNs provide closed user group functions and can control access between mobile terminals. Dynamic reconfiguration of a VPN is considerably more complex than on TETRA, as it is intended as a communication tool for businesses, not a way of controlling network access in real time. TETRA networks operate on various frequencies according to region, use and license conditions. In Europe, the frequency is usually 380MHz to 450MHz. In China, operators have deployed services between 850MHz and 900MHz. TETRA was designed to operate between 300MHz and 1GHz. The European Conference of Postal and Telecommunications Administrations recommended these initial frequency bands: 380-385MHz paired with 390-384.9MHz 385-390MHz paired with 395-399.9MHz 410-420MHz paired with 420-430 MHz 450-460MHz paired with 460-470MHz 870-876MHz paired with 915-921MHz Operating at these lower frequencies means that the radio signals travel further than those of traditional European GSM networks, which use 900MHz and 1800MHz, or third-generation networks, which operate in the 2.1GHz band. Fewer TETRA base stations are needed to provide the same coverage as GSM. This is a distinct advantage when considering the number of base stations needed to provide national coverage and the problems associated with acquiring base station sites. Wireless LANs and Private Mobile Radio Although cellular networks are not a direct alternative to the specific requirements of the PMR market, TETRA services can be combined with wide area network technologies like GPRS. Wireless LAN technology has raised its profile not only in the mobile arena, but also as an adjunct to TETRA services. Public safety organizations are considering using wireless LAN technology to download high volumes of data from specific hotspots before using TETRA for day-to-day communications. Similar to the capacity problems that hinder the use of other mobile technologies, wireless LANs are subject to access limitations, and public safety bodies must ensure they have access to a network when they need it. Governments are seeking dedicated frequency spectrum in bands adjacent to those currently used. Organizations implementing PMR are considering the most appropriate combination of technologies for their users' location. It is seen as an important aspect of future integrated solutions, but it is not yet a necessary part of most PMR

tenders. Such integration will give mobile operators an opportunity to participate in the public services arena, by providing wide area solutions. Integrating alternative technologies will enable network infrastructure vendors to reuse existing designs and expertise with minimal additional expenditure. This is good news for infrastructure vendors and, provided that prices reflect these lower costs, equipment buyers. 5 The TETRA Market Is Expanding Commercial and government-led networks have grown in Europe, with many public service organizations adopting TETRA, including those in Belgium, Germany, the Netherlands, the United Kingdom, the Czech Republic, Finland, Poland and Denmark. In the next two years, governments in Sweden, Norway, Germany, Hungary, Portugal, Italy and Greece will be deciding how to progress with the migration from old PMR systems to digital solutions with additional data services. In Germany, further deployment of TETRA networks is threatened by Vodafone's proposed use of its GSM network to offer services that meet the government's requirements. The expansion of TETRA is not limited to Europe. The Chinese government approved TETRA as public safety technology over two years ago. In Hong Kong, agencies like the police as well as commercial organizations such as Hong Kong Light Power and SAR Kowloon-Canton Rail have deployed TETRA networks successfully. Governments in the Middle East, driven partly by recent events, are also looking at TETRA. Bahrain and Dubai already have operational TETRA networks. In North America, the large areas that need coverage make the upgrade to a digital PMR network a long process. Rather than switch immediately to a digital standard, migration organizations have adopted the APCO Project 25 standard, which supports backward compatibility with analog FM radio services. In the U.S. market, TETRA faces competition from iden. In addition to the United States, which has the most iden users, networks are deployed or being built in Argentina, Brazil, Canada, China, Colombia, Israel, Japan, Mexico, the Philippines and Singapore. Long Sales Cycles It can take several years to select the technology for PMR enhancements and process the tenders for building the networks. PMR is a large financial investment and government is involved in the decision-making. This means a considerably longer sales cycle for vendors selling equipment to TETRA operators. Unlike mobile operators, which are driven by the need to sell new services and terminals to users, private sector operators need more stability from their networks and terminals. As the need to innovate is not as strong, vendors' R&D commitments are lower than those in the cellular equipment market. Long sales cycles mean radio network equipment suppliers must manage their business exceptionally tightly to ensure that revenue from equipment contracts supports the business between deals. For terminal vendors, this is less of an issue. In addition to the large orders placed during the early stages of a deployment, there will be continuing demand for terminals as the number of users grows and their data needs change.

6 Europe's Standard Shows Way Forward for Private Mobile Radio Government Decisions When Upgrading Radio Networks Markets Beyond Public Safety Governments need to decide which technology to adopt, as well as coordinating multiple public safety organizations to use a single new radio network. It is this second point that can cause problems, because these organizations often have their own communications teams that operate in different regions, municipalities and nationwide structures. For example, governments in Europe must overcome the challenge of implementing a huge change in working practices and culture as they strive toward a single PMR network in support of public safety. Although governments regard a single PMR network as a catalyst for bringing disparate bodies together, regional organizations will see it as threat to their independence and structure. Management of the changes involved and the consolidation of different organizations' support systems will demand much system integration. Vendors like Motorola are keen to aid this process, but it needs to be factored into plans for integrated PMR solutions. The decision to upgrade networks to TETRA must encompass support for additional data services. But different legal process and working practices mean that applications for data services cannot be transferred from one organization to another. There are also several models for operating PMR networks: Government owned and operated: The most common deployment. Networks are owned and operated by government or preferably by the public services organizations themselves. Company owned and operated: Not a widely implemented model. Private companiesownandrunthepmrnetwork.thebusinesscaseofthismodelhasa long payback period for investing companies. The networks of Dolphin Telecom and mmo2's Airwave in the United Kingdom use this model. Government owned and company operated: An outsourcing model of operation. Government owns the network but private companies operate it. This model is generating interest in the market. The public safety sector is the largest supporter of the TETRA market. Public safety bodies accounted for 37 percent of announced TETRA contracts in 2002. They will remain the principal users of the technology as governments continue to move away from legacy analog systems. Transportation is the second-largest sector. There is also increasing demand for TETRA from utility companies and the oil and gas industry. Each of these sectors has similar operating processes an airline in Europe has similar communication needs and business processes to an airline in Asia. Therefore, unlike the public safety sector, industry-specific deployments and applications need less custom development and can usually be reused on different customer networks. The role of armed forces is changing to one of peacekeeping. With investment in defense continuing to be tightly controlled, the potential use of widely available communications solutions by the military opens up new market opportunities for TETRA suppliers. As well as large-scale deployments, there are other, smaller commercial markets. TETRA networks have been installed with fewer than 30 base stations and even

limited to a single site, although cost efficiency is hard to achieve with smaller networks. TETRA is not cost-effective if it is used simply to upgrade from an analog to a digital network, but its additional services and data capability make it attractive, even in these markets. 7 Evolution of TETRA The next phase of TETRA development includes features like high-speed data transfers and enhanced air-to-ground communications. Operators and vendors are agreed that the technology needs such enhancements, but they have different views on the timing of developments. In PMR segments like security and safety, operators' primary concern is network stability; PAMR operators place a greater emphasis on services. While the PMR market will wait for TETRA Release 2 to mature, PAMR operators may adopt interim measures to meet commercial pressures. ETSI is developing two high-speed data standards for TETRA Release 2: TETRA Advanced Packet Service (TAPS) is a completed standard that uses similar packet data technology to GSM networks. Developed for early availability to the PAMR market, it has fixed 200KHz channels. TETRA Enhanced Data Service (TEDS) is still under development for use by the PMR segment. It is compatible with earlier networks and employs narrower 150KHz channels that use the frequency spectrum more efficiently. An alternative to TAPS is CDMA-PAMR, a packet overlay technology based on wide-area CDMA standards. Dolphin Telecom is evaluating CDMA-PAMR for its network in France, where it has no new frequency allocations for a data overlay. The proposed migration to a CDMA-based technology is generating considerable attention from existing mobile operators. Its introduction is seen as a way of bringing mainstream CDMA technology to Europe "by stealth." For Dolphin Telecom, equipment pricing is a key factor behind its choice of migration technology. Nokia and Motorola dominate the market for TETRA network equipment, and the move to TETRA Release 2 means that increased competition and technology reuse has not yet reduced equipment pricing. Dolphin claims that some CDMA-PAMR vendors are more aggressive in their pricing and reuse of CDMA technology. Dolphin must be careful about fragmentation of the PAMR standards it uses. Its management of equipment suppliers across its international interests may be complicated by the need to use different vendors for different standards. Over the last year, some vendors feel that the speed of development toward TETRA Release 2 has slowed as the companies and organizations involved focus more on growing and implementing networks. With many countries awarding PMR contracts in the next two years, the focus on implementing the current TETRA standard is likely to continue in the short term. The evolution to TETRA Release 2, and TEDS in particular, will boost existing service offerings with faster data access. This will enable services such as video calls and high-volume data transfers. The expansion of TETRA's international footprint means more vendors and government organizations will want to participate in defining the technology's standards and future. They will try to influence the definition of interfaces that are not currently within the standards, such as those between base stations and switches.

8 Europe's Standard Shows Way Forward for Private Mobile Radio Network operators will be keen to see increased competition in the equipment market, because it will drive down prices. But they will be skeptical of change, because reliability is paramount to safety and security organizations using PMR networks. Gartner Dataquest Perspective With large organizations like governments and public safety agencies deploying TETRA solutions, the technology will be operational for a further 15 to 20 years. This allows those deploying or developing TETRA equipment to support longer payback periods. PMR users have a cautious, slower approach to the introduction of new technology, especially when the deployment of a single integrated network demands changes to working practices. The cost of a TETRA network means that decisions made today will have long-lasting effects on users. Parts of TETRA's evolution have yet to be defined. Smaller PAMR networks need to resolve their migration issues quickly as they respond to the commercial need for advanced data services and lower costs. Large-scale deployments, such as those by public safety and security agencies, are less focused on immediate technology advances, preferring to use TETRA services to support agency integration, enhanced services and improvements compared with current analog services. The TETRA market will continue to grow as governments bring together different agencies and ensure they can communicate effectively using a single standard. Although more international interest in TETRA complicates the definition of standards and migration paths, vendors and operators are well versed in political and commercial lobbying. TETRA's features make it a solid choice for some PAMR applications and especially suited to the PMR market, where users need immediate and secure communications. Key Issue What strategies and enabling technologies will address mobile security and privacy concerns? This document has been published to the following Marketplace codes: TELC-WW-DP-0557 For More Information... In North America and Latin America: +1-203-316-1111 In Europe, the Middle East and Africa: +44-1784-267770 In Asia/Pacific: +61-7-3405-2582 In Japan: +81-3-3481-3670 Worldwide via gartner.com: www.gartner.com 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. 115955