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LECTURE L18
THE MOBILE REVOLUTION
L18 The Mobile Revolution
L18 The Mobile Revolution
Why is the mobile 

phone so important 

to us?
400M daily circulations of all newspapers
800M registered cars
900M total cable/satellite TV subscribers
1.1B of all types of computers (PC, netbooks...)
1.2B total landline phones
1.5B total TV sets
1.7B total unique holders of credit cards
2.1B total unique holders of bank accounts
3.9B total FM radios in use
Mobile Phones
8,1billion connections (including M2M)
https://gsmaintelligence.com/
Mobile Phones
4.9unique subscribers
https://gsmaintelligence.com/
Basically everybody has a
mobile phone
Source and image: The Independent
There are more mobile
phones in the world than
there are toothbrushes
Mobile Phones
Will grow to 5.7 billion
phones by 2020
Image:	Nokia
Mobile Phones
Why is the mobile 

phone so important 

to us?
Q1
L18 The Mobile Revolution
Survival
In 2011, there were 48 million
people in the world who have a
mobile phone but do not have
electricity at home
Mobile Phones
provide safety
Cisco,	January	2011
The History of Communication
Wars have been won on intelligence and the speed of
communications
Militaries and business community on the forefront on the
development of rapid communication
Communication
Early 19th century the horse dominated
Stage coaches and pony express
The railroads changed this
Then came electricity
Communication
Timeline
From 1820 to 1880 discoveries in radio and electromagnetism
An Industrial Revolution
The period 1870-1914
Innovations in the chemical, electric, petroleum and steel industries
Adjacent Possible
Growth period
Electromagnetism and Radio
Foundation for electronic

communications
New markets for communication
Telegraph
Telephone
Wireless Telegraph
Communication
The Telegraph
From the Greek words

tele = far and 

graphein = write
(símriti)
Later to be called the
“Victorian Internet”
Simple device with battery and key for sending electric
signals
At the other end was a similar device emitting sound or
printing the signal
The Telegraph
The Telegraph
Samuel F. B. Morse invented the first practical
telegraph in 1837
Granted a patent 1838
Moore devised a telegraphic code consisting

of dots and dashes
Shorter and longer electric impulse send 

down the wire - The Morse Code
Standardized messages
The Telephone
Invented in 1876
At the time, the telegraph was dominant
Transferred sound waves with electric
current over wire
Alexander G. Bell
Created the first practical telephone
Based on experiments and improvements
in technology at the time
The Telephone
Bell was working on the harmonic telegraph
A device that could send more then one telegraph message at the
same time
Worked with skilled machinist named Thomas A. Watson
Joseph Henry encouraged him in 1875 to work on the telephone
instead of the harmonic telegraph
History
At the dawn of the 20th century, two mediums for communication were
dominant
The telegraph: Became important in the American Civil War (1861-65),
dominated by Western Union
The telephone: Dominant technology with the growth of Bell
Both these technologies had one problem: they were wire-based
Wireless Telegraph
Guglielmo Marconi saw an opportunity

in wireless communication
Studied physics at the University

of Bologna
Several experiments in 1894 in

Bologna, Italy
Marconi’s goal was to use his

knowledge developed in telephony
The Product
Marconi was improving the telegraph
“Spark Transmitter” where signals could represent the Morse code
Potential market:
Maritime market – British Royal Navy
Transatlantic communication
Skepticism and Competition
Many scientists were happy to point out flaws in Marconi’s inventions
Doubts that wireless had any application
Limitations – radios worded on fixed frequency
Security – anyone could listen in
The telegraph was initially 20 times faster
Cable companies showed no interest in wireless
The Wireless Telegraph Bubble
Wireless Telegraph was popular in the press
Many companies competed for stock funding
Resulted in Stock inflations - “The Wireless Telegraph bubble”
Sceptic voices started to respond
Series of articles in Success Magazine, 

“Fools and their money” 

appeared 1907

Government Regulation
No regulations controlled the airwaves
The sinking of RMS Titanic prompted governments to set
international standards of communication
The Marconi operator on the Titanic sent “C.Q.D”
C.Q. meant attention, D was for Distress
SOS is ... - - - ...
L18 The Mobile Revolution
L18 The Mobile Revolution
Wireless Communication
Around 1940 ideas for wireless communication were established
It was not until the development of microchips and technology for
building devices, that wireless communication became 

practical for individuals
Rules and cautiousness were to delay the progress
Also investments in land based systems
Wireless Communication
Wireless communication started early 20th century
Wireless radio was important in WWII
Many innovations such as spread spectrum and
frequency hopping
Hedwig Eva Maria Kiesler
1913-2000
"Films have a certain place in a
certain time period. Technology is
forever”
- Hedy Lamarr
Wireless Communication
After the war, use of wireless was 

restricted to certain profession
(police, military, taxis)
Not public solutions
The ideas for mobile radio networks
were developed in the 1940s
Area of radio cells – Cellular network
Wireless technology and the idea of
building a network of cells was
understood in 1940s. Why did the public
mobile phone not appear until in the late
1970s, early 80s?
Adjacent Possible
TECHNICAL

Big

Limited

Expensive
CULTURAL

Political

Commercial
The Digital Revolution
The enabling technologies - adjacent possible
Early Systems
The First Cell phone (1973)
Name:	Motorola	Dyna-Tac

Size:	9	x	5	x	1.75	inches

Weight:	2.5	pounds

Display:	None

Number	of	Circuit	Boards:	30

Talk	time:	35	minutes

Recharge	Time:	10	hours

Features:	Talk,	listen,	dial
Microchip
Digital Signal Processor
Mobile phones became practical
in the 1980s
Technical Improvements
Cellular Networks
Radio network made up of radio

cells
Tower and base
Mobile Telephone Switching Office 

MTSO
Lessons Learned: Cellular Phones
▪ Mobile phones provide safety
▪ The most common device of all
▪ Mobile phones are not practical until 1980s
due to size of technology – Adjacent
Possible
▪ The invention of the microchip played
crucial role in the development of cell
phones
L18 The Mobile Revolution
1G Analog
1G Analog
1980s
Voice only
NMT, AMPS, FDMA
Early systems were in Bahrain, US, Japan and in the
Nordic countries
First international system

was NMT in the Nordic
Frequency Division 

Multiple Access - FDMA
1G Analog
NMT in Nordics
AMPS in the US
TACS in UK
C-Nets in West Germany
Radiocom 2000 in France
RTMI/RTMS in Italy
1G Analog
Big
Expensive
Limited
Characteristics
Business users
Field users
Mobira	Talkman	

frá	Nokia
1G Analog
Early users
L18 The Mobile Revolution
Multiple standards – roaming is a problem
In the US this is not a problem
1G Analog
European countries decide to define 

common standard – digital
Work on a Global System for Mobile 

Communication (GSM) starts 1982
1G Analog
2G Digital
1990s
Voice and data
9.6 – 14.4 Kbps
GSM, TDMA
Downloading 3 min. MP3 song: 31-41 min.
2G Digital
Digital mobile phones appear in early 90s
GMS takes off in 1991 – 

unites Europe
Time Division Multiple 

Access – TDMA

2G Digital
US was slow in adopting 2G because roaming worked well
Digital did not add enough over analog
Texting and SIM cards was not known
2G Digital
GMS
Global System for Mobile Communication
Built on TDMA – Digital
Three times the capacity of analog, encryption, texting,
SIM cards
GMS
Texting
Short Message System allowed 160 letters
Became an accidental killer app – 

messages, chat, ring tones
First message sent 03.12.1992:

“Merry Christmas”
Lessons Learned: Cellular Phones
▪ Cars became the first platform for phones

▪ First phones are analog

▪ Multiple standard – each country invents its own

– Problem with standards (history repeats itself?)

▪ Roaming problems in Europe call for a standard

▪ Digital standard developed in Europe, G2

▪ US does not have roaming problems and gets
stuck in G1
3G Packet Switch
Mobile networks and the Internet start to

converge
1G and 2G are circuit switched – fine for voice

The Internet is packet-switched
3G Packet Switching
2000s
More data
128+ Kbps
GPSR, EDGE, UMTS, CDMA
Mobile networks and the Internet start to

converge
Downloading 3 min. MP3 song: 

11 sec. – 1,5 min.

3G Packet Switching
More bandwidth, more applications
Email, Images, music, movies, streaming
Based on Code Division

Multiple Access – CDMA
3G Packet Switching
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
3G Solutions
Messages Browsing Apps (J2ME)
Built with limitations
Screen size, bandwidth restrictions
Input limited – one-handed keyboard
Limited memory, battery life
Fragmentation nightmare
Mobile web was limited, bad version of the web
3G Solutions
Then, in 2007, the world changed
L18 The Mobile Revolution
Copyright	©	2011,	Ólafur	Andri	Ragnarsson
How does the 

competition

respond?
The Arrogance of the Present
L18 The Mobile Revolution
L18 The Mobile Revolution
iPhone hit the market in June 2007
L18 The Mobile Revolution
Ok, let’s check the facts 

five years later
http://www.businessinsider.com/iphone-bigger-than-microsoft-2012-2
iPhone
Copyright	©	2011,	Ólafur	
Andri	Ragnarsson
The 

iPhone 

Effect
Touch screen
Industrial strength

desktop quality OS
Software and User

interface
Platform for Apps
100 billion apps downloaded (2015)
App market revenue is estimated to
hit $77 billion by 2017
L18 The Mobile Revolution
L18 The Mobile Revolution
Source: Mary Meeker Slide Deck
Smartphone Market
L18 The Mobile Revolution
L18 The Mobile Revolution
The end of the Unconnected
Source: http://ben-evans.com/
2-3x more
smartphones 

than PCs
by 2020
X
Personal
Taken everywhere
Frictionless access
Sensors, cameras
Location
Payments
Social

Easier to use
= HUGE
OPPERTUNITY
App vs. Web Development
The App Store
is to the iPhone
what iTunes is
to the iPod

Google Play is
the same
Availability
Specialised Apps
with Quality of
Service – Innovation
Context
Mobile media users
pick up their phone
40-200 times a day
to consume content
via apps/browser
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
L18 The Mobile Revolution
Key Trends
Mobile became
important in 2010 and
will be a revenue
opportunity going
forward
Source:	Morgan	Stanley
Mobile vs. Desktop
Source:	Morgan	Stanley
Mobile vs. Desktop
Any consumer

business that ignores
the smartphone, will
likely become
irrelevant

Source: Heavy Reading
Smartphones
Source: Skynews
Smartphones
How long does it take to download a HD movie
3G - 1 hour
4G - 40 seconds
5G - 1 second
Solutions
Voice, text Apps, music, videos,
Worldwide tablet sales grew by
more than 400% over a two-
year period, reaching 81.3
million units in 2012.

Tablets
L18 The Mobile Revolution
The “mobile web” is just
the web – there is only
one web. It’s just
displayed in multiple of
screen sizes
Source:	The	Next	Big	Thing:	Mobile,	http://www.olafurandri.com/?p=408
L18 The Mobile Revolution
Next:
Social

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