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Research Newsletter
INTRODUCTION
ESAM Code: Volume II Newsletters
1989-16
0004613
PARXn
CELLULAR RADIO IN EUROPE—GROWING INTO THE FUTURE
This is the second newsletter in an initial series of three about cellular radio. These
newsletters are entitled:
Part I: Cellular Radio—Its History and Principles
Part II: Cellular Radio in Europe—Growing into the Future
• Part III: Digital Cellular Radio—The Market Forces
The first in the series deals with the principles of operation of this exciting
communications medium. This newsletter reviews the growth in the European market
for cellular radio, and the reasons and factors for its success and forthcoming
development. The third newsletter reviews the possible market dynamics that could
interact when digital networks are deployed in the early 1990s.
BACKGROUND
Cellular radio began in earnest in Europe as recently as October 1981, when Sweden
launched its NMT-450 system. By the following March, the system was available
throughout Scandinavia. The new medium experienced spectacular growth, reaching a
level of 100,000 subscribers in just three years (see Figure 1: Scandinavian Cellular
Market).
In January 1985, the United Kingdom launched its two networks (three months ahead
of schedule). Demand for the service was huge, exceeding even the operators' optimistic
forecasts (see Figure 2: United Kingdom Cellular Market). Since then, many European
countries have launched cellular radio networks. However, due to proprietary system
designs and available spectrum in each of the individual countries, most of the systems
are incompatible and do not permit country-to-country mobile roaming. The exceptions
are the Nordic countries (Denmark, Finland, Norway and Sweden) who all adopted the
same system, thereby allowing a mobile to be used in each of the four countries. Table 1
shows the systems operated in some of the major European countries.
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