Mapping European Wireless Trends

TECHNICAL REPORT SERIES

Mapping European
Wireless Trends
and Drivers
Synthesis Report

EUR 22250 EN

Institute for
Prospective
Technological Studies

The mission of the IPTS is to provide customer-driven support to the EU policy-making process by researching science-
based responses to policy challenges that have both a socio-economic as well as a scientific/technological dimension.

Mapping
European
Wireless Trends
and Drivers
Synthesis Report

Editors:
E. Bohlin, S. Lindmark, C. Rodríguez
and J-C. Burgelman.
DG JRC-IPTS

Authors:
P. Ballon, C. Blackman, E. Bohlin, S. de Munck,
S. Forge, J. Heres, A. Kips, S. Lindmark, R. Tee,
W.-P. van der Laan, M. van Staden and U. Wehn
de Montalvo.
TNO

April 2006

EUR 22250 EN

European Commission

Joint Research Centre (DG JRC)

Institute for Prospective Technological Studies

http://www.jrc.es

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ISBN 92-79-02035-8

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Printed in Spain

Preface

Mapping European Wireless Trends and Drivers
New wireless technologies like WiFi, WiMax, UWB as well as mesh and ad hoc networking are
spreading increasingly fast in Europe. Wireless technologies are now at a critical juncture because different
combinations of these could disrupt the existing mobile landscape, dominated at the moment by the GSM
and UMTS standards.

The future of the wireless communication system and the implications for Europe has been of growing
interest to the Institute for Prospective Technological Studies (IPTS).1 Since 2003, several studies on the
future of the wireless communication system have been published.

IPTS launched the present study for three reasons: to map the new wireless developments in Europe;
to analyze drivers of the same and provide policy and regulatory recommendations. To that end, the term
Alternative Wireless Technologies (AWTs) has been employed to collect the various new technologies
under one umbrella. This term is being increasingly used in the trade press as well. However, a major
conclusion of the report is that the new wireless landscape will involve several types of technologies,
interconnecting with one another, and not necessarily excluding the traditional cellular technologies, but
rather complementing and reinforcing them. To that end, the report has developed technology maps to
illustrate the scope and overlaps between the various technologies.

As the new wireless landscape emerges, the trend towards Ambient Intelligence (AmI) begins to
receive general recognition. Wireless technologies will support the future AmI networks, and this report
suggests that the new wireless landscape offers the potential for seamless connectivity over various types
of data ranges and distance coverage ratios. Therefore, it seems appropriate to suggest here that this report
not only identifies AWT in the above sense, but there will be a shift towards a new form of AWTs - Ambient
Wireless Technologies. The emerging landscape of Ambient Wireless Technologies is likely to become an
issue of increasing industrial and policy attention, providing momentum for future studies on AWTs in this
new sense.

Jean-Claude Burgelman

Head of the ICT Unit, IPTS

1 IPTS, based in Seville, Spain, is one of seven research institutes that make up the European Commission’s Joint Research
Centre

Acknowledgements

A number of key individuals and organisations ensured the completion of this volume, and their
assistance has been essential.

Critical support and active advice have been provided by IPTS during the project and project
meetings by:

Anna-Flavia Bianchi
•

Marc Bogdanowicz
•

Layos Nyiri
•

Yves Punie
•

David Osimo
•

Martin Ulbrich
•

Dieter Zinnbauer
•

The following partner organisations contributed to the report as follows:

IMIT: Erik Bohlin (Project Manager) and Sven Lindmark (Synthesis Report, Editors of Annex 1-3)
•

SCF Associates: Simon Forge and Colin Blackman (Annex 2-3)
•

TNO: Pieter Ballon, Uta Wehn de Montalvo, Annemieke Kips, Mildo van Staden, Jeroen Heres,
•
Richard Tee, Silvain de Munck and Willem-Pieter van der Laan (Annex 1-2)

The whole team is grateful to the colleagues of DG INFSO who provided extremely valuable help
with validating the research results.

Note: This is the Synthesis Report of all the findings of MEWTAD project. The complete MEWTAD

Final Report consists of this Synthesis Report plus Annex 1-3, one for each work package (Annex 1-3,
corresponding to WP1-3). Annex 1-3 will only be available on the DG JRC-IPTS website (www.jrc.es) and
not published as printed paper copy. The findings presented herein are solely the personal opinions of the
authors, and should not be construed to represent the opinions of the European Commission.

Executive summary

Background could support these emerging technologies, with
particular emphasis on safety and security and
The European ICT sector has enjoyed
mobile virtual communities (MVCs); (3) examine
outstanding success in the second generation
the effect that the regulatory environment
(2G) of mobile telecommunications. Whilst the
will have on the evolution of these alternative
European industry has developed 3G systems
wireless technologies, identify policy options and
largely as a generational successor to 2G, a
implications for European Union (EU) member
plethora of competing (and complementing)
states (MS) and provide policy recommendations.
wireless technologies and solutions, often
stemming from the computer industry, have
entered the scene. For short, these are denoted AWT Overview
alternative wireless technologies (AWTs). Such
For the purposes of this study, AWTs
AWTs create new growth opportunities but may
cover all emerging wireless technologies with
also constitute a disruptive threat to existing
the exception of traditional cellular mobile
networks and their supporting communities.
technologies (2G, 3G). AWTs enable, in sum,
Hence, there is a strong and urgent need to
the provisioning of existing and new services to
research the usage of AWTs, as well as the trends
mobile users and allow communications between
and drivers currently catalysing their diffusion.
computers, PDAs, phones, consumer electronics
devices and appliances – in office, home, and/
Objectives or public environments. AWTs may operate in
licensed or unlicensed frequency bands, and can
The objectives of this study are to (1) map
be applied in a number of different topologies
wireless technologies in Europe and the current
such as mesh networks and ad-hoc networks. The
trends in development; (2) analyse the drivers that
figure below identifies and maps out a number of

Wireless Technology Overview

wireless technologies; the basic dimensions are • short-range protocols (such as WLAN /Wi-Fi,
Executive Summary

commonly agreed upon to determine of the types UWB, NFC, ZigBee and Bluetooth)
of services and business models that they are able
• longer-range protocols (WiMax, Flash
to support – speed and mobility.
OFDM, 3G enhancements such as UMTS-
Here we note that the current crop of TDD)
AWTs is not the final set. The mobile and
• mesh and ad-hoc networking
wireless arena is an extremely dynamic scene in
which technologies are adapted, extended and
converging towards ever-increasing bandwidths Mapping Availability and Usage in the EU
and mobility. The AWTs covered in this report
The report presents an analysis of the
are either: (1) existing in the market today, and/
availability and usage of a number of selected
or (2) on their way towards standardisation or
AWTs – UWB, WiMax (802.16x), Flash-OFDM
in advanced RD stages, and/or (3) potentially
(802.20x), Wi-Fi (802.11x), Meshed and Ad-
presenting a challenge to traditional business
hoc Networks and UMTS TDD – in the EU. The
models in the mobile market. Specifically, we
technologies were selected on the basis of their
consider the following types and technologies:2
potential for the provision of alternative non-

Overview of Selected AWT Activity in EU25
Country UWB WLAN (pre) WiMax Flash OFDM Mesh/Ad-hoc UMTS TDD
Austria commercial deployment use
Belgium commercial commercial use
Cyprus commercial trial
Czech Rep. commercial trial use
Denmark commercial commercial use
Estonia commercial trial
Finland commercial trial use
France commercial commercial commercial trial
Germany commercial commercial commercial commercial
Greece commercial use
Hungary commercial deployment
Ireland commercial commercial deployment deployment
Italy commercial commercial
Latvia commercial commercial commercial
Lithuania commercial trial deployment
Luxembourg commercial
Malta commercial
Netherlands commercial commercial trial use
Poland commercial commercial
Portugal commercial commercial
Slovakia commercial
Slovenia commercial commercial
Spain commercial commercial use
Sweden commercial trial use deployment
UK commercial commercial commercial commercial

2 For the purposes of this report, satellite- and airship-based communications as well as broadcasting technologies (e.g. DVB) are
excluded.

(traditional) operator-centric access. The table We also investigate the type of operators and

below brings together the observations in an their strategies regarding AWT initiatives. Clearly,
overview at country level of where these AWT traditional operators have taken the lead in the
activities are taking place, along with an overview deployment and exploitation of AWTs throughout
of the phase of development. most of Europe. This suggests that there are at
present constraints in Europe for AWTs being
Clearly the most dynamic markets, in terms
used in a non- (traditional) operator-centric
of the variety of AWTs being used or deployed,
manner, even though in some countries there
are situated in Western Europe and Scandinavia.
is some moderate or even strong non-operator-
France, Germany, Ireland, the Netherlands,
centric activity.
Sweden and the UK present the most diverse
European markets in terms of AWTs, with almost
all AWTs under review being deployed or used in
Drivers and bottlenecks
these countries.
In general, the following drivers and
The overview table also demonstrates that
bottlenecks for AWTs are mentioned most
while UWB and Flash OFDM are marginal or
frequently and highlighted as most important by
non-existent on the EU market, (pre)WiMax,
EU experts today.
Mesh/Ad-hoc technologies and UMTS-TDD
are available or being deployed in numerous,
or even most, of the EU member states. WLAN, Mobile Virtual Communities, Security
in the form of Wi-Fi, is by far the most mature and Safety and AWTs
technology considered in this report. It has been
The report explores the (potential) relationship
on the market for several years and is used by a
between mobile virtual communities (MVCs) and
wide range of user groups.
AWTs. It was found that current and emerging

General AWT Drivers and Bottlenecks
Drivers Bottlenecks
Poor fixed broadband infrastructure development Lack of interconnection and roaming agreements, especially
- -
in many small cities, towns, rural and remote areas between new AWT operators.
across Europe. Pricing models of public hotspot access in many EU
-
Government incentives, programmes and public- countries still oriented towards occasional use, limiting
-
private partnerships to stimulate broadband scope of AWTs to business market.
connectivity. Licensing regimes in many EU countries imposing
-
Competition in Wi-Fi markets, e.g. because of limitations on spectrum availability, deployment, handoff
-
relatively low prices of Wi-Fi deployment, driving and integration of AWT cells, and generally allowing technical
prices down and ensuring relatively high coverage experiments with AWTs but no market experiments.
in a number of countries. Persistent standardisation problems.
-
Success of private in-house WLANs, which might
- Lack of user-friendliness in access, authentication and
-
stimulate the usage of public WLANs. billing procedures.
Emerging integration of AWT and mobile capabilities
- Lack of structural advantages (in terms of speed or cost)
-
in dual mode handsets. over fixed broadband, and therefore a lack of incentives
Falling hardware prices and backhaul costs. for AWTs in areas with well-developed fixed broadband
-
infrastructure.
Limited number of licensed operators in some
-
markets, creating incentives for new stakeholders Potential saturation and congestion of unlicensed spectrum
-
to enter national markets using AWTs. in prime locations.
New applications and possibilities such as VoIP Limited amount of terminals and other certified equipment
- -

over wireless, deployment of AWTs on trains etc. in the market.
Expected expansion of WiMax with mobility Lack of customer education, i.e. in terms of differences
- -
characteristics. between mobile and various AWTs.
Lack of content applications.
-

instances of MVCs are primarily related to mobile care, AWTs can be used in several applications,
Executive Summary

cellular technologies (with voice and messaging including (1) telemedicine where the ubiquity of
being strongly community-related). Voice over AWTs enables expertise and scientific monitoring
Wireless IP has persistently been referred to as the of care in the hospital to be transferred to care
so-called killer application for AWTs. However, in the home for aged and infirm people; (2)
there are still a number of barriers limiting the numerous uses in hospital networks; (3) personal
market prospects (and thus community impact) and wearable health networks (Healthwear)
in the short to medium term. Currently, the main attached to the body of the patient will extend
development (at a modest level) is instead the care into the home from hospital, an area where
proliferation of wireless communities for the little success has been found so far with effective
joint deployment and operation of Wi-Fi hotspots telemedicine. These may be used for early
and clouds. Geographical and participatory detection of failing mental as well as physical
limitations of current AWTs are the main factors conditions, by going into social interaction as
hindering the development of AWT-based MVC much as monitoring body parameters directly.
today. Finally, AWTs may be used in (4) ambulance
control and on-site support, where for instance
AWT networks are finding major and
images can be transferred from first responders to
increasing usage in security, health care and
a moving ambulance to prepare its medicos for
safety of everyday life. For security purposes,
the injuries and the general scene.
AWTs lend themselves to providing police fire
This report also pursues an analysis of security
and ambulance services, as well as security
threats created by AWTs including threats to the
services with extremely robust C4 (command /
control / communication / co-ordination) systems, person, personal details and data for emergency
not least for alerts and disaster situations. and community services and services such as
m-commerce, including content distribution. A
Safety of life and property using AWT
summary of security challenges is shown in the
capability covers many areas, but two appear
figure below.
particularly significant: (1) the use of wireless
sensor networks for detecting unsafe situations, Impacts could possibly be even greater than
be they in a specific environment, a city, a the current nuisances of Internet threats, e.g.
chemical plant, or tracking potentially hazardous emergency services could be brought down. New
moving items such as containers; and (2) mobile services also bring a range of responsibilities and
applications for vehicle and traffic management vulnerabilities never seen before – the multimedia
hazards – termed telematics. AWT networks could handset equals the PC in intelligence and
form the basis of a ‘second network’ to provide programmability with Java-based applications, the
the citizen with a dedicated alert channel, due network becomes an IP packet-based transport
to their ubiquity, robustness and low cost relative mechanism, with intelligent gateways and
to other radio technologies such as mobile service agents at its edges, while the IT content
cellular (as shown by a case study – WARN). server side expands in complexity and size. One
In addition, mesh forms of AWTs have inherent key difference in security architectures for AWT
resistance to attack due to their non-centralised networks, compared to previous radio networks
locus of control, and thus are attractive for this of cellular form, is that they may be non-operator-
application. centric, yielding major authentication issues.
Here we also would highlight a high-risk threat
Despite the widespread use of AWTs in
to AWT market take-off. If such menaces get out
10 emergency and security applications, perhaps
of control, the whole wireless market could be
it is in the development of ubiquitous networks
undermined in the subsequent fall-out. Citizen
for health care, including mental health, that
and consumer trust would be destroyed.
the greatest advances are to be seen. In health

Security Challenges of Wideband Multimedia Elements

Source: SCF Associates

In sum, protection of AWT systems end-to- such as Bluetooth and RFID and, not least, with
end is a major challenge. To be effective across the development of the ‘Portable Internet’ using
the multimedia wireless environment, security a home-grown AWT, WiBro. In addition, there
needs to be addressed as a key component of the is a strong policy drive towards an increasingly
overall infrastructure, with a security platform to converged broadband network environment
protect all components (servers, networks and termed the BCN.
handsets) designed in from the start – and not
The drivers behind this Korean success
bolted on at the end.
cannot be understood without taking the
historical context in socio-economic terms into
consideration, as well as the social environment
AWTs in Korea – a Case Study
it has created, the social drive to move forward
This report summarises for policy-makers including the Korean view of technology in
certain key lessons that we may draw from the society. With these background factors in mind,
Korea experience, a country which has made government intervention and orchestration of the
major strides in ICT over the past three decades. private sector is perhaps the key factor. Over two
Globally Korea is probably the most advanced decades, the Korean government has orchestrated
AWT market, as indicated by more than 35% support for ICTs with a series of interconnected
of the world’s total Wi-Fi hotspots; industrial programmes, each with defined economic
AWT networks such as ZigBee for RFID and 11
aims. The latest of these programmes – IT 839 –
industrial sensors being piloted; most terminal includes AWTs to a high degree. Also, the Korean
and handset devices designed and manufactured regulatory regime has created a fairly level
in Korea having short-range AWTs embedded playing field in telecommunications competition,

with restrictions on ownership for different types long term means that a comprehensive European
Executive Summary

of networks, allowing and even forcing the approach to AWTs is justified. The significance of
sharing of infrastructures according to dynamic AWTs is likely to be downplayed if left to current
financial models. In addition, it has cleverly used market forces and those players dominated by
its revenues from spectrum licences and taxes interests in conventional fixed wire or 2G and 3G
on operators as a strategic re-investment fund for cellular mobile technologies. Moreover, unless
telecommunications infrastructure and research. Europe grasps the mettle on AWTs and acts
A point also notable for policy setters, with a positively and quickly, it will be left behind by
clear-cut policy of picking-the-winners, is that both North America and Asia.
Korea often takes a contrarian view on standards
This policy analysis examines AWTs by
in order to be first in new technology. Education
means of a summary SWOT analysis, from the
for adults on a mass scale in the late 1990s
viewpoint of the EU citizen, summarised in the
further strengthened Korea’s growth. Finally, on
table below.
the demand side, trust in the use of technology
From each strength, weakness, opportunity
and the expected absence of misuses means
and threat we assess the implications for policy
that confidence and acceptance of widespread
and regulation (see Annex 3). In this report we
usage and even intrusion into everyday life are far
instead state policy implications and measures
higher than in other cultures.
thematically. First, we conclude that there is a
need for setting a blueprint for AWT development
Policy analysis and implications and usages, for the next 10 years, which covers
a broadband wireless infrastructure and its
This study has gathered evidence indicating
applications, and includes converging and
that AWTs are likely to become a major
competing technologies. To conclude, a European
technological development with important
policy for AWT take-up should revolve around
economic implications for Europe, especially
the following activity areas:
once the non-operator-centric model is unleashed
1. Spectrum allocation – be it in licensed or (new)
and competitive. There is a strong argument in
favour of Europe adopting an integrated approach unlicensed bands. There is a need to rethink
to the policy and regulatory issues arising from policy for spectrum allocation at the highest
AWTs (e.g. spectrum policy and regulation; levels for Europe, Member States, and globally
competition policy and regulation; licensing to incorporate AWTs adequately. AWTs may
schemes, access and interoperability, network need to have frequency bands currently
rollout, security policy and regulation, privacy and taken by broadcast, mobile cellular, or the
data protection, standardisation, IPR including military. By WRC-07, it would be judicious
digital copyrights, RD, funding, education to have reconsidered the current allocation
and promotion). However, these are sensitive of spectrum in view of the economic benefits
issues and care needs to be taken in striking the of AWTs for Europe, and abandoning existing
right balance between command-style dirigiste frequency plans. Consideration of spectrum
intervention, which would not fit with how the policy for AWTs must take into account two
European Union and the Member States interact, key factors: (1) spectrum availability must
and a repetition of the experience with previous be matched against technology type, where
European programmes which have been long on we must balance the social and commercial
time to organise and get results from. In spite of importance of existing services; and (2) the
12 the difficulties, the key policy conclusion from form of spectrum allocation needs to be
this study is that AWTs’ real significance in the decided.

SWOT Analysis of AWTs from the Perspective of the EU Citizen

STRENGTHS WEAKNESSES
AWTs fill the gaps left by cellular No real place today in European telecommunications and
media, nor part of an overall plan for communications
Lower costs than cellular in many applications
Not understood by mass markets
Fast to rollout compared with cellular
AWT capabilities and positioning are still not well understood
Bandwidth higher than 3G
by EU industry and technical centres of expertise. More effort
Can cut costs and delays by eliminating large capacity on basic radio research is needed.
backhaul lines in MAN installations
More clarity is required on spectrum needed
Cost and installation advantages add up to a way to provide
European mobile incumbents are well entrenched; in contrast
municipalities with a chance to enhance their value with
AWTs are in a weak market position, with no champions,
mobile Internet access
promotion or financial muscle
Can act in mobile roaming mode (e.g. mobile WiMax)
Security problems abound
European industry – in a good position in design coming from
European industry has been a follower so far
cellular on chips, antennae, military electronics including
radar, specialist chip manufacture, despite US lead today, as All successful AWT standards so far are US (IEEE series)
Europe does have mesh software providers Europe’s forced collaborative approach on decisions and new
Europe’s collaborative approach experience and ability programmes makes all policy initiatives slow
OPPORTUNITIES THREATS
Designing and producing AWT technology and equipment Security threats due to pervasive coverage, increased band-
with the aim of developing leadership in broadband wireless width, new bodily proximity connectivity (BANs). Innocent
(e.g. multi-mode self-adaptive terminals according to and unaware user population: Threats include: (1) attacks on
performance/cost preferences) emergency services; (2) attacks on the core ICT infrastruc-
Export opportunities of bringing Internet connectivity to the ture; (3) identity theft from citizens; (4) privacy threats to
developing world (cf. Korea’s WiBro) citizens; (5) malware attacks of all kinds on citizens, attached
machines and organisations, plus the new types of attack that
Expanding scope of European industry – new ventures in
will come with VoIP; (6) car telematics – accidents caused
consumer and verticals, especially health including frail and
by malicious messages; (7) body area networks; (8) M-com-
mental health conditions
merce threats; (9) M-Banking threats, including EFT; and (10)
AWTs ideal for SME involvement and start-ups – could seed a security threats to industrial sensor networks.
whole new EU sector of SME chains
Cellular mobile industry views AWTs as a major threat.
Offer Internet access to all of Europe at low cost (and VoIP)
via public and municipal access networks Cellular operators, challenged by AWTs, competing with a dif-
ferent business model which may outstrip the mobile busi-
High broadband penetration via wireless will stimulate feeder
ness model in value to the customer.
industries (e.g. media) user industries (e.g. medicine)
Wireless health issues are not yet understood for cellular and
Economic impacts of better health/elderly care at lower cost
non-cellular access techniques. AWTs are often likely to be
Set standards lacking in mesh networking software and worn continually and the effects of low-power continuous ra-
processes, possibly via Open Source software routes diation needs to be examined.

3. Harmonising Licensing Schemes. If a
2. Competition policy and regulation. To create
regulated AWT market does arise, major
an active AWT-based communications
decisions will revolve around the forms
market, it will be critical to form conditions
of licence, in terms of whether it is for
of freedom of market entry for new players
spectrum usage or a general licence to
without restrictive practices, be it in
operate with both service provision and AWT
interworking – physical attachment, protocols
infrastructure ownership, or a service over a
at network or at application level – or in
third party’s approved AWT infrastructure.
related areas such as media content or in
Major concerns here are the allocation
dependencies such as the software for ‘media
process for licences and types of licensing.
players’ and operating systems’. In principle,
In summary, policy directions should revolve
Europe may need to reconsider competition
around a lighter regulatory regime for the new
policy with regard to telecommunications
1
entrants, perhaps unlicensed, but with forced
specifically to encourage the entry of new
interconnect to incumbents (see below).
services from new providers over AWTs.

EC recommendations to the regulators Internet security backed by legislation and
Executive Summary

in the MS would be to view the business policy measures is needed for what should
case differences as an opportunity to bring be allowed/prevented. AWTs need to have
competition to what may be an oligopolistic a security layer built into their network
market – while using AWT licensing, architecture, as their ubiquity becomes the
if deemed necessary, firstly to promote users’ vulnerability.
competition by ensuring that new entrants
7. Privacy needs to be ensured through data
have licences, and secondly to ensure that
protection legislation and current policy
security measures are implemented.
on the rights of the citizen. A balance
4. Access and Interoperability. A related area between privacy concerns and convenience,
for policy decision is on the assurance of security and utility of AWTs must obviously
interconnection access by the new entrants be reached – to protect efficiently against
to existing networks. Issues of roaming, eavesdropping on conversations, identity
interconnection and termination charges and any personal data theft, and personal
must be considered, with cost-based tracking. Privacy protection regulations
pricing to prevent monopolistic margins for AWT public services will follow those
on interconnect activity. AWTs could then envisaged for cellular mobile for aggregation
provide strong local loop competition. of personal data. For privately deployed
Assuring connection of any-to-any covers networks, confidentiality can only be assured
several areas including: (1) open access; if the equipment has security measures built
(2) mandated mobile exchanges; (3) pricing in as standard.
models extending into interconnection and
8. Standards setting, with participation of
the billing settlements, with termination
ETSI, building on the IEEE 802 standards
and roaming agreements; (4) naming and
series at a basic communications protocol
addressing – ENUM (e-number) scheme
level, and moving up e.g. the seven-layer
for mapping a PSTN telephone number
model to build complete systems that can be
into a typical Internet Uniform Resource
easily integrated into a broadband wireless
Locator (URL); (5) universal service; and (6)
network for intelligent adaptive network
emergency number obligations.
operation, using mesh network architectures
5. Network Rollout. In AWT networks, with cognitive radio front-ends for self-
once network interconnection is assured, organising communications structures. The
network roll-out is not contaminated with security issue is far too important to be left
difficult issues. However, they pose a strong to the suppliers or to ad-hoc development;
competitive threat to incumbent technology its co-ordination is an ideal task for an EC
stakeholders who may complain to the programme.
regulators that AWT operation undermines
9. Patent and Copyright Policy. IPR from
their USO requirements, or that AWT
RD in the supported initiatives for
operators should be regulated by heavier
AWT networking, including security and
taxes due to the unfair competition, or
application environments (such as operating
even banned as they may be operated
systems and microbrowsers), should all be
by municipalities and others who are not
under open source licence and no software
licensed and regulated telcos.
patents permitted, unless they are in the
1 6. Security. Protecting citizens and businesses public domain. In certain contexts of peer-
by ensuring that security measures are to-peer content creation, this Open Source
adequate for the challenge of maintaining approach to copyright would extend to
users’ confidence. A complete reform of content and media copyright protection so

that DRM should be available in multiple and development centre for AWT radio

forms. For the future, the reciprocal of DRM technologies and networking architectures.
(digital rights management for commercial Jointly funded by industry, national
media content) might have to be applied in governments and the EC, the first phase
the far wider field of personal data available of rapid set-up and early growth could
through AWTs – the notion of ‘digital privacy be through a joint programme of projects
management’. distributed across existing universities. This
would form a launch pad for the second
10. RD Programmes. RD encouragement is
phase, of setting up a permanent institute
needed through appropriate programmes.
with its own faculty and facilities at one
The current RD programmes do not
site. ERRI would have twin research roles,
consider the opportunities and challenges
of primary and applied research, to form an
of AWTs, and especially their applications,
international centre of excellence.
for specialist areas of emergency services,
11. Funding, Encouragement, Education and
health and care of the aged. They are largely
Promotion.
ignorant of these areas’ importance, perhaps
even of their existence. Programmes that
• In view of the opportunity, a
specifically examine and extend existing
funded programme for research
AWTs, as well as research for new ones, with
and demonstrator implementations
support for standards are needed in three
should be set up. Here, taking the
major areas:
revenues from spectrum licences and
• first, basic radio technology to further taxes on operators for a strategic re-
the understanding of AWT signal investment fund for telecommunications
propagation, signal processing, and infrastructure and research should be
identification, especially for spectrum considered. In addition, SMEs and new
sharing; ventures should be encouraged and
supported with capital, programmes
• second, exploration and resolution of
of research, supply contracts for
all security issues, with reformulation of
demonstrator projects etc. A programme
the Internet structure where needed for
for setting up and incubating AWT start-
secure ubiquitous environments for the
ups should also be a major priority.
citizen;
• Awareness programmes will also be
• third, applications programmes in the
necessary in Europe, to explain the
vertical segments of health care, telecare
technology and its position against
for the elderly, logistics and retail and
other communications and media
emergency services.
technologies, to show what it can do.
We suggest a two-step approach to It would also be useful to consider
strengthening European research in these education programmes.
areas. First, a European Alternative Radio
• Test beds. It would be most useful to
Network Research Programme should
build a range of European test beds at
be established as a matter of urgency,
a national (or EU) level, the aims being
within a timeframe of months. Then,
to stimulate the economy by proving
we suggest the formation of a European
technology and, most importantly, to
1
Radiocommunications Research Institute
educate both the work force and society
– ERRI – as a further initiative to pursue
in general. The large demonstrator
the full promise of the new directions in
projects would revolve around four main
radio. ERRI would be a European research

initiatives: (1) a pan-European wireless projects, which are most likely to made
Executive Summary

broadband network infrastructure up of many small projects – for instance,
(EWBNI); (2) a European citizen-alert use of BANs in mental health for a
network (CAN), perhaps using a mesh specific disabling condition – rather
infrastructure; (3) a European Emergency than large horizontal networks. Health
Services Infrastructure Network (EESIN) and elderly care would also try to show
only accessible by emergency services, improvements in quality of care against
with an architecture for robust operation lowering the costs of their service. Each
in all situations; and (4) European demonstrator would be underpinned by
recovery network for attacks and both temporary research projects and
disasters (ERNAD), a temporary network long-term research in the ERRI institute
to be set up instantly whenever and and in its predecessor distributed
wherever infrastructure fails. Across research programme across several
these horizontal networks may run research departments in leading
some specialised vertical demonstrator universities.

1

Table of contents

Preface 3

Acknowledgements 5

Executive summary 7

Chapter 1. Introduction 21
1.1 Background 21
1.2 Objectives 21
1.3 Methodology 21
1.4 Work Packages and Annexes 21
1.4.1 WP 1 – Mapping the Existing European Wireless Landscape and
Current Trends 21
1.4.2 WP 2 – Drivers 22
1.4.3 WP 3 – Implications of AWTs for Europe and Policy
Recommendations 22
1.4.4 WP 4 – Synthesis Exercise 23
1.5 Structure of this Report 23

Chapter 2. AWT – Introduction and Overview 25
2.1 AWTs Defined 25
2.2 Overview of Technologies and Supporting Communities 25
2.3 AWT Descriptions 26
2.3.1 UWB (Ultra-Wideband) 26
2.3.2 WiMax (802.16x) 27
2.3.3 Wi-Fi (802.11x) 28
2.3.4 Flash OFDM (802.20) 28
2.3.5 Meshed and Ad-hoc Networks 29
2.3.6 Bluetooth (IEEE 802.15.1) 30
2.3.7 NFC (Near Field Communication) 30
2.3.8 ZigBee (IEEE 802.15.4) 30
2.3.9 RFID 31
2.3.10 Expected enhancements of UMTS 31

1

Table of contents

Chapter 3. AWT Availability and Usage in the EU 35
3.1 Summarising AWT Activities in Europe 35
3.2 Wi-Fi /WLAN 36
3.2.1 Key Observations 36
3.2.2 Mapping WLAN Availability in Europe 37
3.3 Other AWTs 39
3.3.1 UWB 40
3.3.2 (Pre-)WiMax 40
3.3.3 Mesh / Ad-hoc Networks 41
3.3.4 Flash OFDM 42
3.3.5 UMTS-TDD 43
3.4 (Non-) Operator Centricity of AWTs in Europe 44
3.5 Conclusions and Future Directions for AWTs in Europe 45

Chapter 4. Drivers – MVCs, Security and Safety 47
4.1 General Drivers and Bottlenecks 47
4.2 Mobile Virtual Communities 47
4.3 AWTs Enabling Safety and Security Applications 48
4.4 AWTs as a Security Threat 50

Chapter 5. AWTS in Korea – A Case Study 55
5.1 Korean ICT and AWT Market 55
5.2 Drivers for AWT Take-up 56
5.3 Main Future Research Areas and the Asian Context 59

Chapter 6. Policy Analysis and Recommendations 61
6.1 The New Radio Evolution 61
6.1.1 The Map for EU Policy on AWTs 61
6.1.2 Current Policy and Regulation Concerning AWTs 62
6.1.3 AWTs in support of European Innovation and Competitiveness 63
6.1.4 The Challenges and Opportunities for Europe – SWOT 64
6.1.5 Towards European Industrial Policy for AWTs 64
6.2 Resultant Policy Recommendations 64
6.2.1 Spectrum Policy and Regulation 65
6.2.2 Competition Policy and Regulation 66
6.2.3 Harmonising Licensing Schemes 66
6.2.4 Access and Interoperability 67
6.2.5 Network Rollout 67
1
6.2.6 Security Policy and Regulation 67
6.2.7 Privacy and Data Protection 68
6.2.8 Standards 68

6.2.9 DRM, IPR, Content and Media Copyright Policy 69
6.2.10 RD Programmes 70
6.2.11 Funding, Encouragement, Education and Promotion 71
6.3 Issues for Further Research 73

References 75

List of Abbreviations 77

Annex 1: Mapping the Existing European Wireless Landscape and Current Trends
(Available on the JRC-IPTS Website - www.jrc.es)

Annex 2: Drivers (Available on the JRC-IPTS Website - www.jrc.es)

Annex 3: Implications of Alternative Wireless Technologies for Europe and
Policy Recommendations (Available on the JRC-IPTS Website - www.jrc.es)

List of tables
Table 3-1 Overview of Selected AWT Activity in EU25 35
Table 3-2 Aggregated Hotspot Data 38
Table 3-3 Number of EU25 Countries with Selected AWT Activity 39
Table 3-4 Operator Centricity of AWT Initiatives in Europe 44
Table 4-1 General AWT Drivers and Bottlenecks 47
Table 4-2 AWTs and Safety/Security Applications 49
Table 5-1 Key AWT and Suppliers Status in Korea 56
Table 6-1 SWOT Analysis of AWTs from the Perspective of the EU Citizen 65

List of figures
Figure 2-1 Wireless Technology Overview 26
Figure 3-1 Growth Estimates of AWTs in EU25 Member States 45
Figure 4-1 Security Challenges of Wideband Multimedia Elements 52
Figure 5-1 Korean government ICT programmes 58
Figure 5-2 Korea’s Latest Medium Strategy Plan for IT – 839 60
Figure 6-1 Work Programme for Establishing European Success in AWTs 72

List of maps
Map 3-1 Hotspots per 100,000 Inhabitants in EU25 plus 4 (june 2005) 38
Map 3-2 Geographical Spread of Hotspots over EU 25 plus 4 (March 2005) 39
Map 3-3 WiMax Activities in Europe, June 2005 41 1
Map 3-4 Mesh / Ad-hoc Network Activities in Europe, June 2005 42
Map 3-5 UMTS TDD Activities in Europe, June 2005 43

1. Introduction

1.1 Background • To examine the effect that the regulatory
environment will have on the evolution of
The European telecommunications and
these alternative wireless technologies, and
electronics industry has enjoyed outstanding
identify policy options
success in the second generation (2G) of mobile
• To understand the implications for European
telecommunications. In a relatively short time
Union (EU) member states and provide
period, European actors have established leading
policy recommendations
positions in system, handset, and operator levels
of the actor system. As in all lucrative industries,
this lead will not be left unchallenged. In the
1.3 Methodology
ongoing transition to third-generation (3G)
mobile communications, and perhaps even more The study uses a combination of
so in the coming fourth generation (4G), Asian comprehensive mappings of the AWT usage in
and American actors are going ahead with new Europe, and in-depth case studies. The main
initiatives. Whilst the European industry has sources include existing research reports, other
developed 3G systems much as a generational publicly available information sources, and expert
successor to 2G, a plethora of competing (and interviews.
complementing) wireless technologies and
solutions, often stemming from the computer
1.4 Work Packages and Annexes
industry, have entered the scene. For short, these
are denoted alternative wireless technologies To structure the wide-ranging questions, the
(AWTs). In some areas, notably wireless LAN project has been organised into several work
applications for offices, homes and “hot spots”, packages (WPs), each of which is focused on
they have already reached substantial usage some aspect of the whole problem set. WP 1-3
and diffusion. Other alternative technologies are reported in separate annexes (Annexes 1-3),
– including WiMax, UWB and meshed and ad- while WP 4 is reported here. Annex 1-3 are only
hoc networks – show promising signs of fulfilling published on the JRC-IPTS website (www.jrc.es)
existent and growing user needs. If AWTs succeed,
there is a risk that the leading European position
1.4.1 WP 1 – Mapping the Existing European
will be seriously challenged. Hence, there is a
Wireless Landscape and Current Trends
strong and urgent need to thoroughly research the
usage of AWTs, as well as the trends and drivers The objective of WP 1 is to map present-
currently catalysing their diffusion. day developments in Europe regarding AWT in
order to assess the extent to which these wireless
technologies are disruptive to the existing (fixed
1.2 Objectives
and mobile) networks. Specifically, it focuses on:
The objectives of this study are: which emerging AWTs are being implemented;
which stakeholders are involved; which services
• To map wireless technologies in Europe and
they provide; and what the current trends and
the current trends in development
drivers are.
21
• To analyse the drivers that could support
WP 1 is reported in Annex 1, as follows.
these emerging technologies, with particular
First, it provides an overview of the most
emphasis on safety and security and mobile
significant AWTs, their general characteristics,
virtual communities (MVCs)

their technical performance characteristics of AWTs for security and health; examples of
Introduction

and constraints, and their expected impact in use of AWTs in each of the major application
the market of wireless and mobile broadband. domains, citing case studies of how the
For a selection of these, penetration and usage technology is providing advances; and last, it
patterns throughout Europe are overviewed and briefly examines the various business models
analysed. The findings from empirical research for the AWT networking industry.
among country experts and desk research are
An analysis of security threats associated with
•
summarised for each of the 25 EU countries
AWT. It provides an overview of AWT usages
and for each technology. A geographical
and the threats they imply, and then offers an
representation of the significant alternative
in-depth threat analysis for those components
wireless technologies in the EU is also provided.
that have the highest vulnerabilities in the
By way of conclusion, emerging trends and
end-to-end chain of AWT infrastructure, with
drivers as well as foreseeable developments in
six examples of threats in everyday AWT
the availability and usage of AWTs are analysed.
usage.

Finally, a case study is presented on an
•
1.4.2 WP 2 – Drivers advanced application of AWT for safety and
security purposes – WARN, the Wireless
The objective of WP 2 (reported in Annex 2)
Accelerated Responder Network – a pilot
is to explore safety and security as well as mobile
project mobile broadband network for
virtual communities as drivers for demand for
public safety and security for Washington
emerging alternative wireless technologies. WP 2
D.C. using Flash OFDM technology supplied
is divided into several themes:
by Flarion.
MVC as a driver of AWT
•
Moreover, Annex 2 offers an in-depth case
Safety and security as a driver of AWT
• study of AWT status in one leading market – Korea.
It includes a general overview of the Korean ICT
Korea AWT Status
•
market, application services and the major players,
First, there is an analysis of how MVCs
key technologies and their suppliers, the drivers for
interact with and drive demand for AWTs. It is
AWT take-up in Korea (historical context, social
carried out along two lines: (1) opportunities of
drivers, the important role of government support,
AWTs for MVCs, and (2) opportunities of MVCs
and the regulatory environment). Finally, the way
as a social platform for accelerated diffusion of
forward for Korea in terms of main research areas
AWTs.
and the Asian context, i.e. the cooperation with
A second theme offers an analysis of safety China and Japan, is examined.
and security as a driver for AWTs, as well as the
security threats they pose. The theme is in turn
1.4.3 WP 3 – Implications of AWTs for Europe
split into three parts:
and Policy Recommendations
An investigation of enabling AWTs for safety
•
Drawing on the output of WP 1 and WP 2, the
and security applications. This includes:
objective of WP 3 is to analyse the implications,
a number of scenarios or “vignettes”;
potential benefits and challenges of the different
examination of capabilities and suitability
technologies for the EU over the next 10 years,
of AWTs in security, safety and health
in terms of the regulatory and policy situation
applications; examination of a potential
22 required for their evolution and competition, by
structure for a citizens’ alert network and how
providing thoroughly researched and actionable
this would fit into a compound architecture
policy recommendations.

1.4.4 WP 4 – Synthesis Exercise
WP 3 is reported in a separate annex (Annex

3), as follows. First, it examines the significant
This report corresponds to WP 4. i.e. the
economic potential driven by AWTs and thus the
synthesis exercise covering all issues analysed
need for a suitable policy and its underpinning
in the previous WPs, and including an executive
in current EU policy directions, as well the
summary, references and list of abbreviations.
tools that could make up an appropriate policy.
Second, it sets out to answer two questions:
why an industrial policy is needed for AWTs, 1.5 Structure of this Report
and how we obtain take-up and buy-in for an
The major content items of the final report,
industrial policy. Third, a SWOT (Strengths,
corresponding to the chapter outline, are:
Weaknesses, Opportunities and Threats) analysis
Chapter 2: Overview of AWTs
•
is conducted. From this, Annex 3 assesses the
implications for policy and regulation, as well as Chapter 3: Overview of AWTs’ availability
•
the issues raised by policy/regulation, from the and usage in the EU
point of view of the EU citizen. Then, resultant
Chapter 4: Drivers: MVC, Security and Safety
•
policy recommendations are discussed under
and AWTs as a security threat
eleven (11) main headings. Finally, the main
concepts and recommendations are summarised Chapter 5: Case study – AWT Status in Korea
•
in a European policy blueprint for AWTs.
Chapter 6: Implications for Europe and
•
policy recommendations

2

2. AWT – Introduction and Overview

2.2 Overview of Technologies and
The objective of this chapter is to set the
Supporting Communities
stage for the subsequent ones by introducing
the concept of AWT and the main technologies
Mobile and wireless technologies can be
and standards involved. Section 2.1 introduces
characterised and categorised in a variety of ways.
and defines the concept of AWTs. Section 2.2
However, it is commonly agreed that the basic
provides an overview of the most significant
determinants of the types of services and business
AWTs and their general characteristics. Finally,
models that they are able to support consist of
the main standards and technologies are reviewed
speed and mobility. While speed is a factor of the
in Section 2.3.
bandwidth and latency characteristics of a particular
technology, the mobility provided is determined
by the cell range of the technology and the extent
2.1 AWTs Defined
to which seamless handover between cells is
In recent decades, mobile communications
possible. Technologies offering low data speeds
have been dominated and shaped by 1G, 2G
are often labelled narrowband technologies, as
and 3G cellular systems. From time to time,
opposed to broadband technologies offering high
alternative technologies have challenged these
data speeds. Technologies offering high mobility
systems, but largely failed in the market (satellite
are referred to as mobile technologies, enabling
systems such as Iridium and cordless technologies
the establishment of wide area or metropolitan
such as Telepoint). As mobile communications
area networks; while technologies offering low
are becoming more data-capable and demand
mobility constitute local or even personal area
for data communications services is increasing
networks, providing so-called fixed wireless
following the growth of the Internet and local area
access or nomadic access.
networks (LANs), new growth opportunities open
The mobile and wireless arena is an extremely
up, not only for cellular but for also for emerging
dynamic scene in which technologies are adapted,
alternative technologies. Such alternatives are
extended and converging towards ever-increasing
here termed “Alternative Wireless Technologies”
bandwidths and mobility. Most prominently,
(AWTs).
there is a strong drive towards the development
AWTs enable, in sum, the provisioning of
and implementation of network technologies
existing and new services to mobile users and
offering increasing data speeds. This is fuelled by
allow communications between computers,
the expectation that broadband technologies will
PDAs, phones, consumer electronics devices
enable mass market uptake of innovative, rich
and appliances – in office, home, and/or public
and user-friendly services and will allow a whole
environments. AWTs may operate in licensed or
range of market players to develop viable and
unlicensed frequency bands and can be applied in
sustainable business models. Therefore, this report
a number of different topologies such as meshed
focuses on new broadband technologies, offering
networks and ad-hoc networks. In principle AWTs
both high mobility and low mobility. The figure
cover all emerging wireless technologies with the
below demonstrates the dynamic and converging
exception of cellular technologies. For the purposes
nature of mobile and wireless technologies
2
of this report, however, satellite- and airship-
towards so-called fourth-generation (4G) mobile
based communications as well as broadcasting
broadband network technologies.
technologies (e.g. DVB) are excluded.

Figure 2‑1 Wireless Technology Overview
2. AWT — Introduction and Overview

Sources: Adapted from Annexes 1 and 2

2.3 AWT Descriptions
The convergence of technologies implies the
convergence of different sectors and communities
The AWTs covered in this report are: (1)
supporting these technologies. While these
existing in the market today and/or (2) on their
communities are frequently overlapping in
way towards standardisation or in (advanced)
terms of stakeholders and their ambitions, they
RD stages and/or (3) potentially presenting a
are also often in conflict with different regional
challenge to traditional business models in the
and sectoral scope. Table 2-2 in Appendix 1
mobile market. Specifically, we consider the
shows that there are EU, US as well as Asia-
following AWT types and technologies, each
centric standard bodies and consortia. Also,
described in the subsequent sections3:
communities often tend to be dominated by the
short-range protocols (such as WLAN /Wi-Fi,
•
telecommunications industry or the IT and fixed
UWB, NFC, ZigBee and Bluetooth)
wireless industry. In addition and conjunction to
the technology development trajectories of these longer-range protocols (WiMax, Flash
•
industries, there is a thriving worldwide research OFDM, 3G enhancements such as UMTS-
community working on very high-performing air TDD)
interfaces and other network technologies. Finally,
meshed and ad-hoc networking
•
a number of proprietary technologies are already
on the market today, with the objective to set the
de facto standard in the field. These are often IP-
2.3.1 UWB (Ultra-Wideband)
based technologies developed and promoted by
Ultra-Wideband (UWB) is a wireless
start-up vendors such as Flarion, Arraycomm, IP
2 communications technology that transmits
Wireless, Redline Communications and Alvarion.

3 Please consult Annex 1-2 for further information and sources.

2.3.2 WiMax (802.16x)
data in short pulses which are spread out over

a very wide swath of spectrum. The technology
WiMax (Worldwide Interoperability for
originated from military research and is
Microwave access) is a longer-range wireless
nowadays being standardised and developed
access technology based on the IEEE 802.16
for civil application. UWB uses an extremely
standard suite. The WiMax protocol suite consists
wideband of spectrum to transmit the data. In
of a number of variants. The first version (802.16)
this way, the technology is able to transmit more
is primarily intended for use as fixed wireless
data in a given period of time than traditional
access, as it operates in the spectrum between 10-
radio technologies. By using low power levels,
66 GHz requiring line of sight. But later versions
UWB has very little interference impact on other
also allow for nomadic access and even mobile
systems. Due to the large bandwidth it is rather
operation (802.16e). The WiMax forum certified
insensitive itself to interference from other radio
that shared bandwidths of around 40 Mbps and
sources. UWB allows ultra-high data rates (~
cell radii of 3-10 km, and shared bandwidths of
100s of Mbps) between devices, but due to the
15 Mbps and cell radii of around 3 km, can be
power limitations, they must be close to each
expected for fixed and portable, and for mobile
other (at maximum ~ 20 m). Due to the strict
application, respectively. Note however that,
power limitations, UWB radios will be cheap
in practice, reach and bandwidth will strongly
and consume low power. Two versions of UWB
depend on transmission power (much lower for
exist, a time domain and an OFDM version.
unlicensed than for licensed bands), antennas,
There are several fora standardising UWB. protocol overhead and propagation conditions.
Within IEEE, the IEEE P802.15 Working Group E.g. in the case of mobile application (requiring
is the working group for Wireless Personal omnidirectional antennas) in unlicensed bands,
Area Networks. The MultiBand OFDM Alliance the range corresponding to 15 Mbps could be
(MBOA) is working on standards for both the reduced to only several hundreds of meters.
physical and the MAC layers (IEEE 802.15.3a) Regulations allow deployment of WiMax in the
of UWB. The WiMedia Alliance is working on licensed 2.5 GHz, 3.5 GHz and 26 GHz (non-
developing a convergence layer that will allow line-of-sight) bands, and in the unregulated
the UWB MAC layer to interface with a number 5.8 GHz bands. Note that the Dutch regulator
of standard protocols, such as USB, WUSB, IEEE restricted the use of the licensed bands to fixed
1394 and UPnP. Finally, protocols should be wireless access only.
developed take advantage of UWB. The WUSB
WiMax can be used for leased lines,
specification, developed through the Wireless
residential access, nomadic access (hotspot) and
USB Promoter Group, and the specification of a
wide-area broadband access. Currently, only fixed
Protocol Adaptation Layer through the 1394 Trade
wireless access is possible. Intel has announced
Association are examples of these.
implementations of WiMax cards in PDAs and
The MAC and physical layer specifications laptops in 2006, allowing nomadic access. Mobile
will be released to the MBOA member companies implementations (in phones) are not expected
at the end of 2004. Initial UWB-based products before 2008. Thus depending on the area of
are expected to be introduced in 2005 and it is deployment, WiMax could be an alternative to
widely expected that substantial volumes will find xDSL and FttH access, WLAN hotspots or UMTS.
their way into consumer applications by 2006. Key
The WiMax standard suite is IEEE standards
players are Intel, Agere, Intersil and USB product
(IEEE 802.16x). The WiMax forum assures
vendors. TimeDomain, a very early start-up on the 2
compatibility and interoperability between IEEE
time domain alternative of UWB, went broke and
802.16x implementations through testing and
vanished from the market.
certification of equipment. Vendors with (pre-

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