GSM/GPRS Mobiles to Die Out by 2010

Wireless testing equipment maker Tektronix predicts that UMTS will completely replace GSM/GPRS in Europe by 2010 due to the fact that GSM/GPRS licenses start to expire in 2008. In their opinion carriers are unlikely to renew the licenses due the high costs they’ve already paid for 3G licenses. The real question though is will they be able to make the transition. While 3G should increase network capacity and allow for new services, UMTS networks require more base stations to cover the same area as a comparable GSM/GPRS network. Carriers could find themselves in the position of having to renew the licenses because doing so will be cheaper and faster than building out the UMTS network to match the GSM/GPRS coverage.

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