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Two Firms Reveals Multi-Billion-Dollar Potential Savings in 3G Wireless Infrastructuredate: January 16, 2002 Mercury Computer Systems and PA Consulting Group announced today the findings of a comprehensive study of the impact of innovative multi-user detection (MUD) algorithms on the capacity, coverage and hardware expenditure required in the deployment of 3G wireless networks. Based on the results of a Mercury link-level simulation, PA Consulting and Mercury jointly indicate that base stations operating with Mercury's communications computer, could offer substantial performance and cost saving benefits to both telecom equipment manufacturers and operator companies. - Up to 50% improvement in capacity "Having studied the demonstrable benefits of Mercury’s MUD algorithms, PA Consulting has confirmed that operators using base stations equipped with Mercury’s MUD implementation could realize significant reductions in the number of base stations needed," said Alan Kolnik, partner at PA Consulting Group. "Our models indicate that there should be similar savings in capital expenditures due to the smaller number of base stations needed and the ability to reuse existing network infrastructure." Barry Isenstein, vice president and general manager of Mercury’s Wireless Communications Group, siad, "Leveraging our vast expertise and leadership in these markets, for the past three years we have been developing adaptive processing techniques to improve spectral efficiency in wireless communications. Until now, the advantages of MUD were mostly theoretical, and affordable implementations seemed distant. By combining algorithm improvements with Mercury’s embedded computational expertise, this study proves that MUD should be an immediate requirement and deployed in the next release of 3G base stations." Technology Backgrounder PA Consulting Group applied Mercury’s link-level simulation results for base stations equipped with Mercury’s processor modules to a 3G network that was overlaid on a modeled GSM network. PA Consulting Group’s technical and financial analysis demonstrates that, using real-world constraints and assumptions, Mercury’s solution led to 30 to 40 percent fewer base station sites in a coverage-limited network deployment. For a capacity-limited network deployment, the results also showed approximately 33 percent fewer sites were required using the same study parameters. The ability to reuse existing GSM sites resulted in a reduced number of base stations and infrastructure, creating capital expenditure savings of about 30 percent when deploying a new 3G network. Because base station investments represent the majority of capital expenditures, the savings would amount to billions of dollars when applied to the European market alone. For a representative sample of a 3G network, the study used a projected 3G network for the United Kingdom’s Isle of Jersey. Mercury and PA Consulting Group now have the methodology in place to apply the same analysis to any 3G network. The detailed simulation and analysis focused on the WCDMA standard, but has general applicability to CDMA2000 as well.
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