Key Implications of 4G Network

To some degree, the relentless march of the next generation (4G Network) has provided a framework for the entire industry to orchestrate all the factors needed to progress cellular communications. With the end of this regular process there are a number of key implications.

• The industry has relied on regular injections of new spectrum. Without a new generation to pull this through, regulators will need alternative mechanisms. It is possible that spectrum trading, in the process of being introduced around the world in 2006, might provide this solution.
• Much research and development (R&D) over the last 20 years has been focused on more efficient mechanisms to transmit information. This is now increasingly hitting the laws of diminishing returns.
• Conversely, as the number of different technologies being used grows the complexity of making them all work together increases.
• The manufacturing industry has relied on new generations to stimulate spending throughout the industry. The end of the generation game will require them to adopt a different strategy.

As a final conclusion on the developments taking place in 2006, many of the proposed ‘4G Network solutions were based on OFDM modulation. Claims were being made that OFDM was the new modulation of choice for 4G Network in the way that CDMA had become for 3G Network.

OFDM does not offer significant improvements in performance, but may be a pragmatic solution under certain circumstances. Therefore, we are not of the view that there needs to be a change to from CDMA to OFDM in order to realize significant gains in throughput. Equally, we are not suggesting that OFDM is inferior to other technologies, it just offers a different mix of trade-offs.