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Over 2.5 Billion Cellular Connections Now Active

An anonymous reader writes "It appears that humankind has managed to spread cellular technology like a virus. About 2.5 billion cellular connections exist in the world today, according to an estimate from the GSM Association. It took 20 years to reach 1 billion connections, three years to reach 2 billion connections and the market is moving to reach its third billion in a period of just over two years. Not surprisingly, the countries with fastest growth are the 'emerging nations.'"

33 of 168 comments (clear)

  1. At last, the ??? has been found! by QuantumFTL · · Score: 4, Funny

    Step 1: Steal Underpants
    Step 2: Re-sell w/ sewn-in camera cell phone
    Step 3: Profit!

  2. similar by thedogcow · · Score: 5, Funny

    I have a similar graph.... Y axis is number of "cell conditions" and the X axis is the level "Assholeivity in Public (theater, etc). " Yes, I think is a directly proportional relationship.

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    1. Re:similar by jkburges · · Score: 3, Insightful

      Actually, I think it might be exponential - since for each extra person talking on a phone, each individual feels the need to speak a bit louder, and hence total volume goes up exponentially.

    2. Re:similar by QuantumFTL · · Score: 4, Funny

      Eh, I don't worry about the assholes w/ cell phones in theatres. I figure give it a few more years till they start with the brain cancer... *chuckles maniacally*

  3. Some more facts: by tanveer1979 · · Score: 4, Insightful

    I spent a small amount of time in the US, and surprisingly the tarrif structure and the talk time etc., plans available in India are far better than in the US. In broadband access developed nations have lot of lead over developing ones, maybe because to have good connectivity you require undersea cables as most of the servers are in west, but in case of cellular connections countries like India are way ahead of the US/Europe, and very soon 3G deployment will be mainstream.

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    1. Re:Some more facts: by dread · · Score: 2, Informative

      You can't compare the US cellular market to anything else. It is a quagmire. Compare India (with it's administrative circles, weird government regulations and crappy operators) with something in Europe instead. In fact, India is so far behind on the scale it isn't even funny.

      --
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    2. Re:Some more facts: by cannonfodda · · Score: 5, Informative
      I have had a pretty much similar experience with the U.S. network providers. Certainly in Europe the coverage is significantly better and the total cost of ownership of a phone seems a lot less than people are paying in the U.S.

      But it's not that surprising really. I've alwasy understood that the economics of the mobile network (feel free to shoot me down here since I'm relaying and might have got this wrong) are essentially controlled by population density. There is a point beyond which it becomes uneconomic to develop a digital cell network due to the limited range of the transmitters (about 11 miles nominal range the last time I looked).

      So it's not really surprising that the largest developments are in the developing countries and specifically Asia. There are large VERY densely populated urban centres which, until recently, had no cell coverage. So even selling call time at a low rate will mean that companies can recover their investment very quickly. So I would guess that the graph in the article will have to flatten out, or the emphasis will shift to different markets as the large urban areas in Asia and South America become saturated with providers in the same way as European cities are.

      In Europe after the inital rapid development of the urban networks the coverage of rural areas was very slow. Scotland was a prefect example. Over half the population of the country lives in a 50 mile strip along the central belt of the country. Fine. Great coverage. Go up to the highlands....and until recently it was a very different story. The landscape and low population density made it a costly investment to cover these areas. You would have to expect that the same thing will happen in these new markets. Explosive development in e.g Mumbai followed by a much, much slower growth over the country as a whole. I'd love to see a distribution map of this stuff.

      Anyway back to the original point. I've always understood that the reason why the service in the U.S. was rubbish was that, once the urban areas were well covered there was no real impetus to extend that to the gulfs between cities.

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    3. Re:Some more facts: by pimpimpim · · Score: 4, Insightful

      Why are all the people lauding the european cell network here? I agree the quality is ok, but the pricing is ridiculous. Calling to a mobile phone can be up to 20 cent or more, say 20 times more than a normal phone call. Also, since there are so many small countries in europe, providers earn a shitload of money on 'roaming' costs, even when the same companies are present in almost all countries by now. It has nothing to do with actual costs anymore, but only with how much they can get away with to ask. The fact that there is 'competition' isn't helping much out here, as they silently make sure not to underbid their competitors too much.

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    4. Re:Some more facts: by Don_dumb · · Score: 4, Informative
      Also, since there are so many small countries in europe, providers earn a shitload of money on 'roaming' costs
      That is why the EU is bringing in legislation to reduce roaming charges across the continent http://europa.eu.int/information_society/activitie s/roaming/roaming_regulation/index_en.htm and is (and has been) investigating the mobile companies for anti-competitive behaviour.

      Calling to a mobile phone can be up to 20 cent or more, say 20 times more than a normal phone call
      I never quite worked this one out myself, I think it has just been accepted without really questioning why. It is another reason why most of us (in the UK) have mobiles and text each other (although a simple text message can often turn into a big text conversation and end up being more expensive than just calling the person in the first place)
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    5. Re:Some more facts: by squiggleslash · · Score: 2, Informative

      I have had a pretty much similar experience with the U.S. network providers. Certainly in Europe the coverage is significantly better and the total cost of ownership of a phone seems a lot less than people are paying in the U.S.

      I've heard this argument about it costing more in the US frequently, but in my experience it's a misrepresentation. I've compared them from time to time with UK tariffs, which may be artificially high, I'm not sure, and US cellphone tariffs are extremely attractive.

      The major difference is that on the low end, you can just about get away with a slightly better plan in Europe than in the US, but - get this - it's only useful and cheap if you're not a cellphone user. Essentially, pay as you go in Europe generally has lower minimums that last longer. So whereas in the US, you may have to pay $10 a month to keep your account open (though T-Mobile will keep an account open for a year for every top-up once you've paid at least $100 once), in Europe that may be what you have to pay for an entire year's worth of being connected. Europeans tend to forget though that one reason for that is that mobile operators can depend upon a significant number of PAYG users having their bills paid for by others in the form of incoming calls, which are charged at high rates to the originator of the call.

      So if you don't use your phone that often - maybe a hundred minutes or less a year - or get a lot of incoming calls, you, personally, don't have to pay much. Overall though, in the latter case, the bills for owning your mobile will be high, it's just they're paid for by other people.

      My wife and I are on a US tariff that gives us the following (and it's not even that great by modern US standards:

      1. 700 shared "any time" minutes.
      2. Unmetered (that is, free, not part of the 700 allowance) calls between our mobiles (and all other mobiles on T-Mobile US's network
      3. Unlimited (that is, free, not part of the 700 allowance) calls at nights and weekends
      4. Unlimited text and multimedia messages (except outgoing International)
      5. Unlimited GPRS

      For that we're paying around $90 a month, inclusive of taxes, that amounts to (if I have the calculations correct) 25GBP per phone per month. Now, typically, we make (well) over 2,000 minutes of calls per month (it varies, we've had bills showing more than 4,000 minutes in the past, back when we were planning the wedding), and between the unmetered call types and the 700 minute call allowance, we're always well within our limits (we've never had to pay overage since we got the plan.) The only time we pay more than the $90 fee is when we make outgoing international calls or outgoing international text messages.

      If we were living alone, we could get similar plans for around $50 a month, with plans with slightly less features available for less. Some operators, notably MetroPCS, offer completely unmetered, no contract, plans for well under $50.

      I looked, and I'm loath to see anything comparable in the UK. The best I can find are some temporary offers from Orange that offer unlimited calls between Orange cellphones, or (on a seperate plan!) to landlines (one of these is limited to off-peak, I can't remember which), and an offer from Vodafone to "stop the clock" making off-peak calls limited to one hour cost "three minutes" of airtime.

      For that reason, people don't really use mobile phones to talk in the UK that often. Texting is the "big thing". This isn't something many have noticed because until recently landlines were also only available with metered calls, even local calls, so people are used to watching what they say and how long they speak for on phones.

      The thing most people who make the comparison fail to do is ask "Which place has the better plans if I want to use my phone?" As a general rule, the more you use it, the better the US plans are and the worse the "We must meter everything!" attitude the European telecommuni

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  4. Are there enough digits in a phone number? by c0d3r · · Score: 5, Funny

    How can this be if there aren't enough digits in a US phone number:

    1,23-4,56-7,890

    allows ~1.2445679 digits (some rounding error)

    What do class 5 switches allow globally and whats the denomination?

    1. Re:Are there enough digits in a phone number? by wfberg · · Score: 2, Informative

      How can this be if there aren't enough digits in a US phone number

      Because it's a US phone number, and the article is about other, forrin countries as well.

      (MS)ISDN E.164 numbers are 15 digits, including the country code. Even the North American Numbering Plan can be expanded vastly, from 11 digits (the one counts!) to 15; a factor 10,000.

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    2. Re:Are there enough digits in a phone number? by Don_dumb · · Score: 5, Funny

      Ladies and gentlemen, the stereotypical American.
      Pity him he doesn't know there is a whole world out there.

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      If this were really happening, what would you think?
    3. Re:Are there enough digits in a phone number? by aadvancedGIR · · Score: 2, Funny

      I thought there were only 10000 american phone number, isn't 555 US prefix?

  5. If you want to be more drammatic by mgblst · · Score: 3, Interesting

    You could say it took millions of year to reach 1 billion connections, since hasn't all of mans endeavours, from fire and the wheel to radio and transistors been moving towards creating mobile phones? Depends on how you look at it.

  6. Emerging nations? by Forge · · Score: 5, Interesting

    Right now I'm working for one of the "culprits" in this phenomenal growth. Digicel allegedly sold 300,000 phones in it's 1st month of operations in Haiti. If you check the CIA Factbook, it basically says this is the worst run country in the western hemisphere. I have been here for 3 months now and I can say it's the worst I have seen.

    Despite that, Somebody sold 300,000 phones in a month. How? Because a prepaid cellphone with free incoming calls is exactly what you need when you are impoverished. Looking for work? Put the number on your resume. Family members in a developed country? Give them the number so they can call you and you can ask for remittances.

    Seriously. That's why it makes sense to sell a U$75 phone for U$25 to someone who had to save for weeks to pay that price.

    So yeah. A nation doesn't even have to be emerging for Cellphones to take off. It could be a textbook case of "How to, not develop".

    PS: Another sign of underdevelopment is when you must import almost your entire technical staff.

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  7. Re:yeah right by Forge · · Score: 2, Informative

    No. That's because India has the 2nd largest population. It's beeten by China.

    A better measure is per capita deployment where some European countries have passed 100% (more people with 2 or more cellphones than people with none at all).

    Or even small "Developing" countries like Jamaica with Over 2 Million Cellphones and a population of 2.7 Million.

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  8. Lack of infrastructure by ttys00 · · Score: 2, Interesting

    Part of the reason mobile phone ownership growing so fast in 3rd world countries is the lack of infrastructure - large expanses of 3rd world countries have no phone lines at all, and a mobile phone is a cheap and easy way to communicate in any language, especially when using recycled handsets from 1st world countries.

    A small village can share a handset, which both facilitates trade and also obtains the best prices for their vegetables in the markets in the surrounding town.

    Also, greater population density in many 3rd world countries allows for more phones per base station (ie. greater economies of scale), and therefore cheaper plans. You'd be surprised at how hard telcos in India and China compete for customers, something telcos in the US have managed to avoid for many years.

    1. Re:Lack of infrastructure by MichaelSmith · · Score: 2, Insightful
      Part of the reason mobile phone ownership growing so fast in 3rd world countries is the lack of infrastructure

      About ten years ago I was shown a factory here in Melbourne where analog cellular phones were being built into bulky units for sale in Chile. The idea is that it is cheaper to put a cellular phone in every house and a base station every 10km or so, than to trench all the way to every house.

  9. So that's where my phone went... by Sting_TVT · · Score: 3, Funny

    Leave a phone on a cafe table..... See it on CNN three days later in Mogadishu

  10. Fact:Metcalfe's Law Explains Cell-Phone Popularity by reporter · · Score: 4, Interesting

    Metcalfe's Law explains well why a cellular network grows rapidly. The value of a network grows as the square of the number of members of a network. Here, members are owners of cell phones. As the value increases, more people want to be part of the network. So, more people buy cell phones. Lather. Rinse. Repeat.

  11. Cellular Boom ? You are dead on target. by ravee · · Score: 3, Interesting

    I agree wholeheartedly with the article. In India for instance, Now a days where ever you look, you can see people with a cellphone glued to their ear. News channels provide SMS (Short Messaging Service) numbers where the viewers can send messages via their cellphones. And the cellular service doesn't come cheap. It is atleast twice as costly as making calls via landline though deals are available dime a dozen. Sometimes I wonder if all this is really a good thing.

    Somebody should do a detailed study of the negetive effects of using a cellphone.

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  12. Mobile phones get people out of poverty by MosesJones · · Score: 3, Interesting

    There have been a series or articles in the last few years in the Economist about how having mobile phones helps to lift people out of poverty in the developing world. Their view, and I have to say I agree, is that its more important to get people a communication network (mobile phones) than it is to get them a computer.

    Its a genuinely good thing that this is taking off in the developing world to help people create small businesses and to reduce barriers.

    --
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  13. Kurzweil was right again by weasel99 · · Score: 3, Interesting
  14. Re:yeah right by Don_dumb · · Score: 2, Informative

    Business and pleasure.

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    If this were really happening, what would you think?
  15. The great thing about wireless by smilindog2000 · · Score: 3, Interesting

    is it's super-low up-front costs, not for the hand-sets, but for an operator to offer initial coverage.

    With wired service, you have to invest up-front, burying cable throughout a population center before you can acquire your first customer. With wireless, you put up one tower, set it for maximum range, and open shop.

    A single WiMax tower can reach 40 miles in radius. After Katrina, Intel donated $5M in hardware, and was basically able to cover the Gulf Coast. Bell South says they'll needs between $700M and $900M, and they're still not done with repairs. That cost might be fair, but it shows the advantages in bringing in wireless cheaply. Here's an Intel link:

    http://www.intel.com/technology/magazine/communica tions/hurricane-relief-1105.htm

    I think we should be using cheap wireless technology for IP based emergency communications, enabling people to help each other so they wont have to wait for FEMA to arrive. Check out what hams do for free:

    http://eng.usna.navy.mil/~bruninga/aprs.html

    A system built on the Internet model might enable neighbors to help each other, which is basically required after a mass disaster, since any emergency response team will be overwhelmed. Do you know how you'd find your neighbors after a disaster? How would they find you?

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    1. Re:The great thing about wireless by Calinous · · Score: 2, Informative

      Intel was able to invest 5M and offer coverage to the Gulf Coast. BellSouth will invest $700M (or $1B) and get coverage, offering a total bandwidth maybe 2 000 times more than Intel could offer with their $5M. It's all in what you want - if what you want is minimal access, those $5M goes a long way - if you want something more bandwidth intensive, you're out of luck

  16. Re:Emerging Nations by Anonymous Coward · · Score: 2, Interesting

    It is only hilarious if you don't have a basic understanding of economic terms. This has no bearing on the "value" of the culture or the depth of the history.

  17. Re:Fact:Metcalfe's Law Explains Cell-Phone Popular by cowbutt · · Score: 2, Insightful
    Metcalfe's Law explains well why a cellular network grows rapidly.

    Not really, as you can dial into and out of the cellular network from/to an existing landline network.

    People buy mobile phones because they see value in them; whether that's witnessing first hand the usefulness of being able to be contacted (nearly) anywhere on the planet, or simply being seen to be important enough to have a mobile phone. The value isn't really brought from the network itself, though.

  18. Re:2.5 billion phones for 5 billion people? by arachnoprobe · · Score: 2, Informative

    Connections means "calls", not "phones".

  19. Bollocks by EnglishTim · · Score: 2, Insightful

    That makes no sense at all. Huge numbers are already connected to the phone network via their landlines. The reason mobiles are so popular in emerging nations is that it's much cheaper to set up a cell in an area and sell people mobiles than it is to lay cable to everybody's house.

  20. Re:Fact:Metcalfe's Law Explains Cell-Phone Popular by thesandtiger · · Score: 4, Insightful

    Not only is what you're saying not a fact, it's a complete misapplication of Metcalfe's idea.

    People who had a landline were already connected to the network - getting a cell gives no value from the viewpoint of giving access to the network.

    The primary reason cell use has spread so much - specifically in "emerging" nations - is because it is MUCH cheaper to set up a cellular system and spread access than it is to do with landlines.

    Another big reason would be the mix of convenience and quality of service. In my case, I ditched my landline 2 years ago because it was pointless. I like having a phone with me all the time. If I want to be unavailable, I can put it on silent mode. A phone that sits at home - a place where I spend maybe 4 waking hours a day - just seemed pointless. I don't think I'm the only person who thinks that way.

    My hope is that since cells are now virtually everywhere, people who used to feel the need to talk at the top of their lungs to let everyone know they had one will now see it as a sign of class to speak softly on them. I am doing my best to encourage people to do just that - when I am on the bus or train and someone is having a LOUD conversation on their phone, I will look at them raptly, and, if they ever fall silent, I will say "Oooh, what's he saying now?" When they inevitably say something along the lines of "this is a private conversation" I explain that, at the volume they were speaking, it was anything but. Of course, I say it with a great deal of charm, so I have yet to be bopped in the nose.

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  21. Re:yeah right by Zenaku · · Score: 3, Funny
    I've always kinda wondered why nobody has marketed a phone (or maybe they have and I've never seen it) that has 2 slots for SIM cards. It would ring for either number, and you'd be able to switch the one used for outgoing calls via the menu or a shortcut key. Seems like there would be a market for it, but I've never seen such a thing.

    Oh, and if I'm the first one to think of it, then PATENT PENDING! Patent pending, patent pending, patent pending.

    Patent pending.

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