The financial viewpoint is becoming increasingly important in the mobile phone networks as the number of subscribers continues to increase and operators are subjected to more pressure as a result of new investments. New software to optimise the GSM network may prove to be a solution.

As the number of mobile phone subscribers increases and they are making more calls, the telecommunications operators must expand their networks in order to be able to serve all their customers. At regular intervals even more spectra, radio frequencies, are required to make room for all the traffic.

Last year, for example, we saw that the operators had to pay astronomical amounts in order to obtain the new 3G licences in Europe. Licences and investments are therefore costing the operators a great deal of money and it has furthermore become more difficult during the last few months to obtain financing. This makes it increasingly important for the operators to utilise their existing telecommunications networks to the maximum.

It is possible to increase capacity. The small Israeli company Schema has developed a software platform that can optimise the utilisation of the telecommunications networks.
Purely and simply, it is all about providing capacity where it is most needed. During the morning, when people are on their way to work, capacity must be high around motorways and Underground lines, and later on in the day in the areas where people are at that time.

Yuval Davidor, founder of Schema says:” Capacity in the networks can be increased at many places by 20-50%, by monitoring the exchanges the whole time and following the way in which the telecommunications traffic is moving.” He also adds that the operators can see where reception is poor and where it is good and the telecommunications traffic can be directed on this basis. This means that capacity can be increased significantly in the networks without it being necessary for the operators to invest in infrastructure.

The market is to triple within three years. This applies primarily to places where capacity needs to be increased rapidly. Where the networks are being subjected to excessive loading, quality also deteriorates, calls break up and the sound becomes worse. This, in its turn, can lead to the subscribers getting fed up and changing telecommunications operators, which also implies high costs for the operators.

Schema estimates that their market is worth more than 10 billion Swedish Kronor (SEK) [approx. 720 million GBP] this year and three times as much in 2003. The company is now at a stage where it is gradually closing up on its European competitors.

Orange is one of its customers. Fti: ”The telecommunications manufacturers cannot be too happy about this product?” Yuval Davidor: ”No, not in the short term. But from a long-term viewpoint it means instead that the level of utilisation increases and it is only possible to increase capacity to a certain point before the networks have to be expanded.”

christina lindqvist
christina.lindqvist@fti.se 08-562 088 26

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