The GSMA has unveiled research that shows 3G embedded modules have a lower total cost of ownership (TCO) than modules based on 2G technology. The report by Analysys Mason may prompt operators to deploy 3G embedded technology to reap the benefits of mobile broadband, such as higher data throughput, enhanced capacity and richer mobile services.
Commissioned by the GSMA, the report follows 23 in-depth interviews with key players in the embedded mobile industry such as AT&T, Deutsche Telekom, Qualcomm, Telenor Connexion and Vodafone.
It reveals that 3G delivers lower on-going network costs than 2G, while also offsetting potentially high 2G replacement costs.
Glenn Lurie, President, Emerging Devices, Resale and Partnerships, AT&T, said: “Module costs are just one part of the equation when bringing the next range of connected devices and services to market. Other factors, including unique requirements by vertical segments, certification process, provisioning, and support also share in the costs for a complete embedded solution. The good news is that as 3G multi-mode modules reach economies of scale, they are closing the cost gap with 2G modules and will help further reduce the total cost of ownership.”
While roughly 90% of wireless modules deployed today use 2G technology, this research shows the benefits of replacing 2G with 3G modules. These include the ability to maximise flexibility when it comes to longer-term network strategy; minimise the costs associated with replacing legacy 2G embedded devices; and ensuring they are better equipped to meet future embedded mobile demand.