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Lecture L17
THE MOBILE REVOLUTION
Why is the mobile 

phone so important 

to us?
Q1
400M daily circulations of all newspapers
800M registered cars
900M total cable/satellite TV subscribers
1.1B of all types of computers (PC, netbooks...)
1.2B total landline phones
1.5B total TV sets
1.7B total unique holders of credit cards
2.1B total unique holders of bank accounts
3.9B total FM radios in use
Mobile Phones
7.4billion connections worth $1.3 trillion/year
https://gsmaintelligence.com/
There are more mobile
phones in the world than
there are toothbrushes
Mobile Phones
Will grow to 8 billion
phones in the next
few years
Image:	
  Nokia
Mobile Phones
Why is the mobile 

phone so important 

to us?
Q1
Survival
In 2011, there were 48 million
people in the world who have a
mobile phone but do not have
electricity at home
Mobile Phones
provide safety
Cisco,	
  January	
  2011
The Digital Revolution
The enabling technologies
Early Systems
The First Cell phone (1973)
Name:	
  Motorola	
  Dyna-­‐Tac

Size:	
  9	
  x	
  5	
  x	
  1.75	
  inches

Weight:	
  2.5	
  pounds

Display:	
  None

Number	
  of	
  Circuit	
  Boards:	
  30

Talk	
  time:	
  35	
  minutes

Recharge	
  Time:	
  10	
  hours

Features:	
  Talk,	
  listen,	
  dial
Microchip

Digital Signal Processor

Mobile phones became
practical in the 1980s
Technical Improvements
Cellular Networks
Radio network made up of radio

cells

Tower and base
Base stations connect to 

Mobile Telephone Switching Office 

MTSO
SID – System identification 

Code
SIM-cards

Cellular Networks
Handoff
Calls are automatically moved from 

one cell to the next

MTSO controls the switch

Roaming
Connecting from one phone company 

to another
Cellular Networks
Lessons Learned: Cellular Phones
▪ Mobile phones provide safety
▪ The most common device of all
▪ Mobile phones are not practical until 1980s
due to size of technology – Adjacent
Possible
▪ The invention of the microchip played
crucial role in the development of cell
phones
1G Analog
1G Analog
1980s

Voice only

NMT, AMPS, FDMA
Early systems were in Bahrain, US, Japan and in
the Nordic countries

First international system

was NMT in the Nordic

Frequency Division 

Multiple Access - FDMA
1G Analog
Q2 When the first mobile phones become
possible, how does the market evolve?
NMT in Nordics

AMPS in the US

TACS in UK

C-Nets in West Germany

Radiocom 2000 in France

RTMI/RTMS in Italy
1G Analog
Q3 What are the characteristics of the
first mobile phones and who where
the users?
Big

Expensive

Limited
Characteristics
Business users

Field users

Mobira	
  Talkman	
  

frá	
  Nokia
1G Analog
Early users
Q4 Early on multiple system were developed all
over Europe. What was the problem with that?
Multiple standards – roaming is a problem

In the US this is not a problem
1G Analog
European countries decide to define 

common standard – digital



Work on a Global System for Mobile 

Communication (GSM) starts 1982
1G Analog
2G Digital
1990s

Voice and data

9.6 – 14.4 Kbps

GSM, TDMA
Downloading 3 min. MP3 song: 31-41 min.

2G Digital
Digital mobile phones appear in early 90s
GMS takes off in 1991 – 

unites Europe
Time Division Multiple 

Access – TDMA

2G Digital
Copyright	
  ©	
  2011,	
  Ólafur	
  Andri	
  Ragnarsson
Q5 US is slow to adopt 2G, why?
US was slow in adopting 2G because roaming
worked well

Digital did not add enough over analog

Texting and SIM cards was not known
2G Digital
GMS
Global System for Mobile Communication

Built on TDMA – Digital

Three times the capacity of analog, encryption,
texting, SIM cards
GMS
GMS
GSM association has 800
networks in 220 countries
Texting
Short Message System allowed 160 letters

Became an accidental killer app – 

messages, chat, ring tones

First message sent 03.12.1992:

“Merry Christmas”
Lessons Learned: Cellular Phones
▪ Cars became the first platform for phones
▪ First phones are analog
▪ Multiple standard – each country invents its
own
– Problem with standards (history repeats itself?)
▪ Roaming problems in Europe call for a
standard
▪ Digital standard developed in Europe, G2
▪ US does not have roaming problems and
gets stuck in G1
3G
Mobile networks and the Internet start to

converge

1G and 2G are circuit switched – fine for voice

The Internet is packet-switched
3G
3G Packet Switching
IMT – 2000 was a global standard for 3G

mobile communications defined in mid-1990s

Goals: 

	 Available 2000 

	 Data rage 2000 kbps

	 Frequencies in the 2000 Mhz region
2000s	
  
More	
  data	
  
128+	
  Kbps	
  
GPSR,	
  EDGE,	
  UMTS,	
  CDMA
Downloading 3 min. MP3 song: 

11 sec. – 1,5 min.
3G Packet Switching
More bandwidth, more applications

Email, Images, music, movies, streaming

Based on Code Division

Multiple Access – CDMA
3G Packet Switching
3G Solutions
Messages Browsing Apps (J2ME)
Built with limitations

Screen size, bandwidth restrictions

Input limited – one-handed keyboard

Limited memory, battery life

Fragmentation nightmare

3G Solutions
Then, in 2007, the world changed
Copyright	
  ©	
  2011,	
  Ólafur	
  Andri	
  Ragnarsson
How does the 

competition

respond?
Think about

The Arrogance of the Present
iPhone hit the market in June 2007
Ok, let’s check the facts 

five years later
http://www.businessinsider.com/iphone-­‐bigger-­‐than-­‐microsoft-­‐2012-­‐2
Copyright	
  ©	
  2011,	
  Ólafur	
  
Andri	
  Ragnarsson
The 

iPhone 

Effect
Touch screen
Industrial strength

desktop quality OS
Software and User

interface
Platform for Apps
85 billion apps downloaded (Oct 14)
App market revenue is estimated to
hit $77 billion by 2017
Smartphone Market
Smartphone Market
Source: Mary Meeker Slide Deck
Smartphone Market
Smartphone Market
iPhone
The App Store
is to the iPhone
what iTunes is
to the iPod

Google Play is
the same
Availability
Specialized Apps
with Quality of
Service – Innovation
Context
Mobile media
users pick up their
phone 18 times a
day to consume
content via apps/
browser
Key Trends
Mobile became
important in 2010 and
will be a revenue
opportunity going
forward
Source:	
  Morgan	
  Stanley
Mobile vs. Desktop
Source:	
  Morgan	
  Stanley
Mobile vs. Desktop
Any consumer

business that ignores
the smartphone, will
likely become
irrelevant

Source: Heavy Reading
Smartphones
Bandwidth on 3G
mobile networks is
growing by
approximately 

400% 

annually

Source: Heavy Reading
Smartphones
Source: Skynews
Smartphones
How long does it take to download a HD movie
3G - 1 hour
4G - 40 seconds
5G - 1 second
Cameron Says UK And Germany To Work On 5G,
Internet Of Things
Solutions
Voice, text Apps, music, videos,
Worldwide tablet sales are
predicted to grow by more than
400% over a two-year period,
reaching 81.3 million units in
2012.

Tablets
The “mobile web” is just
the web – there is only
one web. It’s just
displayed in multiple of
screen sizes
Source:	
  The	
  Next	
  Big	
  Thing:	
  Mobile,	
  http://www.olafurandri.com/?p=408	
  
Apple Watch
Can they do it again?
Is Apple transforming as a company?
Will US based Tech Companies disrupt the century old watch industry?
NEXT:
SOCIAL

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