ResearchNewsletter - Archive Server

The Market in Mainland Europe
With the exception of Scandinavia, initial growth on most of the national cellular
networks in Europe was relatively slow. However, more interest has been aroused
recently, and the growth in the subscriber base has increased.
We believe that this previous lack of interest was due to the high cost of subscribing
to the system, the shortage of suppliers of the service, slow growth in the area covered
by the system, and the absence of competition.
THE FUTURE
Currently all operating networks use analog transmission technology and each type
of system is incompatible with others. Consequently, subscribers are limited to using
their mobile only in their own country.
This shortcoming should be overcome with the introduction of second-generation
digital cellular technology in 1991, implementing a common standard throughout Europe.
The drive behind the "pan-European digital cellular system" is motivated by several
reasons:
To permit Europe-wide cellular usage.
Common standards enable a single technology, and therefore economies of
scale, to be achieved.
To provide the first real example of Europe-wide telecommunications
cooperation.
To provide European industry with a technological lead in mobile systems over
the rest of the world.
Digital technology permits greater utilization of available bandwidth (by a
factor of between 2.5 and 5).
Enhancements providing new features/services would be easier with a digital
system.
To provide higher-quality service.
Certainly, this international co-operation in largely agreeing standards in just under
two years fulfills the promise that the pan-European digital system can become a
successful reality.
ESAM Newsletter
© 1989 Dataquest Incorporated July