As the use of 2G phones became more widespread and people began to utilise mobile phones in their daily lives, it became clear that demand for data services (such as access to the internet) was growing. Furthermore, experience from fixed broadband services showed there would also be an ever increasing demand for greater data speeds. The 2G technology was nowhere near up to the job, so the industry began to work on the next generation of technology known as 3G. The main technological difference that distinguishes 3G technology from 2G technology is the use of packet switching rather than circuit switching for data transmission. In addition, the standardization process focused on requirements more than technology (2 Mbit/s maximum data rate indoors, 384 kbit/s outdoors, for example).
Inevitably this led to many competing standards with different contenders pushing their own technologies, and the vision of a single unified worldwide standard looked far from reality. The standard 2G CDMA networks became 3G compliant with the adoption of Revision A to EV-DO, which made several additions to the protocol whilst retaining backwards compatibility:
the introduction of several new forward link data rates that increase the maximum burst rate from 2.45 Mbit/s to 3.1 Mbit/s.
protocols that would decrease connection establishment time.
the ability for more than one mobile to share the same time slot.
the introduction of QoS flags.
All these were put in place to allow for low latency, low bit rate communications such as VoIP.
The first pre-commercial trial network with 3G was launched by NTT DoCoMo in Japan in the Tokyo region in May 2001. NTT DoCoMo launched the first commercial 3G network on October 1, 2001, using the WCDMA technology. In 2002 the first 3G networks on the rival CDMA2000 1xEV-DO technology were launched by SK Telecom and KTF in South Korea, and Monet in the USA. Monet has since gone bankrupt. By the end of 2002, the second WCDMA network was launched in Japan by Vodafone KK (now Softbank). European launches of 3G were in Italy and the UK by the Three/Hutchison group, on WCDMA. 2003 saw a further 8 commercial launches of 3G, six more on WCDMA and two more on the EV-DO standard.
During the development of 3G systems, 2.5G systems such as CDMA2000 1x and GPRS were developed as extensions to existing 2G networks. These provide some of the features of 3G without fulfilling the promised high data rates or full range of multimedia services. CDMA2000-1X delivers theoretical maximum data speeds of up to 307 kbit/s. Just beyond these is the EDGE system which in theory covers the requirements for 3G system, but is so narrowly above these that any practical system would be sure to fall short.
The high connection speeds of 3G technology enabled a transformation in the industry: for the first time, media streaming of radio (and even television) content to 3G handsets became possible, with companies such as RealNetworks and Disney among the early pioneers in this type of offering.
In the mid 2000s an evolution of 3G technology begun to be implemented, namely High-Speed Downlink Packet Access (HSDPA). It is an enhanced 3G (third generation) mobile telephony communications protocol in the High-Speed Packet Access (HSPA) family, also coined 3.5G, 3G+ or turbo 3G, which allows networks based on Universal Mobile Telecommunications System (UMTS) to have higher data transfer speeds and capacity. Current HSDPA deployments support down-link speeds of 1.8, 3.6, 7.2 and 14.0 Mbit/s. Further speed increases are available with HSPA+, which provides speeds of up to 42 Mbit/s downlink and 84 Mbit/s with Release 9 of the 3GPP standards.
By the end of 2007 there were 295 Million subscribers on 3G networks worldwide, which reflected 9% of the total worldwide subscriber base. About two thirds of these were on the WCDMA standard and one third on the EV-DO standard. The 3G telecoms services generated over 120 Billion dollars of revenues during 2007 and at many markets the majority of new phones activated were 3G phones. In Japan and South Korea the market no longer supplies phones of the second generation. Earlier in the decade there were doubts about whether 3G might happen, and also whether 3G might become a commercial success. By the end of 2007 it had become clear that 3G was a reality and was clearly on the path to become a profitable venture.
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