Chapter 22: GSM and UMTS
Acceptance in the World
Section 1: Global Acceptance of GSM
Friedhelm Hillebrand
1
22.1.1 Introduction
Nobody amongst the early key players expected that GSM would become a global success.
There was even deep concern whether it would become a success in all Western European
countries. The GSM MoU signed in September 1987
2
differentiated between commitments
for CEPT countries and the rest of the world:
†
The signatories shall...make efforts...to extend a 900 MHz Pan-European digital cellu-
lar...service to cover the territories of all CEPT administrations (GSM MoU Article 14)
†
..signatories shall... provide...advice and other appropriate support to administrations
outside CEPT considering the introduction of a...system (according) to the CEPT/GSM
standard’’ (GSM MoU Article 16)
When the name of the standardisation group GSM (Groupe Spe
´
cial Mobile) was used as
system name and interpreted as ‘‘Global System for Mobile Communication’’ in 1991/1992,
many people – including myself – expressed concern about this wording. We felt this wording
as over-ambitious and even arrogant. But there are also self-fulfilling prophecies.
Interest in mobile communication grew considerably during the late 1980s and early 1990s
in many countries around the world. The situation varied considerably from country to
country. The main difference for a decision on which mobile system to use, was, whether
the interest of a country was driven primarily by the need of a mobile infrastructure or
whether there was a strong industry policy interest in system development and manufactur-
ing.

12–14 October
1988
Hagen
(Germany)
To present the first GSM specifications
prepared for tendering of infrastructure
to a wide audience of operators,
manufacturers and academia
A. Silberhorn, P.
Dupuis, L. Kittel
(University of Hagen)
16–18 October
1990
Budapest
(Hungary)
To ‘‘ familiarise Eastern European
network operators with the GSM
standard and its inherent benefits’’ ,
‘‘ ...study the possibility of
implementation of...GSM...in Eastern
Europe’’
F. Hillebrand
June/July 1993 Prague (Czech
Republic)
To present the benefits of accepting
GSM and how to use GSM to several
Middle/Eastern European ministries
G. Schmitt
27–28 September
1994

†
between the interests of these newer potential members (including in some
†
cases their higher relative scepticism to whether the roaming benefits could
†
be seen and the need for some of advanced services) and the more
†
traditional GSM operators who may have been involved for some time.
An appropriate set of compromises were reached and the original membership
†
fee structure was changed formally in 1996 to one based on a weighted GDP
†
per head basis, including an assessment of the number of competing
†
operators, so the burden could be shared within a given country, and
†
regional or local licensed footprints could also be taken into consideration
†
as well. This membership fee structure is still in place today and has
†
helped with the constructive development of membership throughout the globe.
The adoption of roaming and advanced services may not yet be everywhere, but
†
by holding the GSM ASSOCIATION together in this way the benefits are greater
†
overall for GSM customers and the industry as a whole.
22.1.2 Europe
22.1.2.1 Western Europe: 15 States Now in the European Union, Switzerland and
Norway
The GSM Memorandum of Understanding (MoU) was signed in September 1987 by 14

security lead to an energetic construction and expansion of GSM networks. Every GSM MoU
signatory had an operational GSM network in mid-1994. In Western Europe the number of
GSM subscribers passed the number of analogue subscribers in early May 1996 with 13.8
million each. Most analogue networks became irrelevant during the 1990s. Many were
switched off in 2000. At the end of 2000 only 2.3% of all European mobile subscribers
were still served by the analogue systems NMT and TACS.
22.1.2.2 Central and Eastern Europe
Strong promotion efforts of manufacturers and two seminars organised under the umbrella of
the GSM MoU Group (see Table 22.1.1) prepared the ground. All countries of the region had
an underdeveloped fixed network. Most countries rapidly issued two GSM licences. Large
network were developed in Hungary, Czech Republic, Poland, Romania and Slovakia (Table
22.1.2). Smaller networks exist in Albania, Belarus, Bulgaria, Bosnia, Croatia, Macedonia,
Moldavia, Montenegro, Serbia, Ukraine and other countries.
These networks had a growth which was much higher than forecasted. They played a
critical role to the economic recovery of these countries, since they rapidly provided a
powerful infrastructure for economic development. International roaming with Western
Europe was very attractive. The network operators attracted many talented people since
they offered future-proof new jobs. These licences attracted Western investors, who provided
capital and know-how.
Russia was in a more difficult situation due to the revolutionary changes of the economy
and the sheer size of the country. They issued only regional licences and small coverage
islands appeared. They achieved 2.2 million GSM users by the end of 2000.
GSM and UMTS: The Creation of Global Mobile Communication534
Table 22.1.2 Large GSM networks in Middle/Eastern Europe
Country Start of 2 GSM
operators
Users at the end of
2000 in millions
Hungary 1994 3.8
Czech Republic 1996 4.0

million people used GSM at the end of 2000.
22.1.4 Asia Pacific
22.1.4.1 Australia, New Zealand and Pacific Islands
Australia’s regulator Austel was the first non-European organisation which applied for
membership in the GSM MoU Group in February 1991 (MoU#15) since it had decided to
implement GSM. The Australian regulatory authority had thoroughly reviewed all available
analogue and digital alternatives. The Australian incumbent operator had an analogue AMPS
network. The regulator wanted modernisation and competition of at least two operators for
the incumbent. Therefore it was decided to go for a digital system. GSM was seen as superior
to other alternatives. A serious disadvantage for the analogue and digital systems developed
in the US was, that they allowed only two operators to compete in a given area.
New Zealand successfully implemented a GSM network very early.
Vodafone acquired a licence in Fiji. The French operators covered the French overseas
territories in the Pacific.
Chapter 22: GSM and UMTS Acceptance in the World 535
22.1.4.2 The Asian Tiger States
South Korea was driven by a strong industry policy interest in developing and manufacturing
their own system. They acquired licence rights to CDMA ANSI 95 radio transmission
technology and became a leader in that technology. GSM was not admitted. Korea achieved
a penetration of the home market of 41%. But they are isolated from the world in the second
generation. They have drawn conclusions from this experience for their third generation plans
and are active members of 3GPP, at least for the terminal and radio part.
Singapore and Hong Kong had a liberal regulation regime. In both states networks with
different technologies were implemented by several operators. In both cases GSM was the
clear winner of the competition. This is especially remarkable in Hong Kong with its difficult
radio coverage situation (skyscrapers, sea, mountains). Here GSM took 84% of the market in
1999 (Table 22.1.3).
In Taiwan the incumbent operator implemented GSM 900 very early. Then competitors and
GSM 1900 operators were licensed. Taiwan reached 17.6 million users by the end of 2000.
Also Malaysia successfully licensed several GSM 900 and 1800 operators.