As the communications industry continues it’s quest to recoup billions of dollars invested in third-generation (3G) networks, fourth-generation (4G) technologies are now riding at the top of the hype wave. But who needs 4G when 3G failed?

So What Is 4G, Anyway?

Where 3G networks were really about the technology (i.e. more bandwidth), Accenture believes 4G will bring about both a technology and a business transformation. From a technology point of view, 4G represents an Internet Protocol (or “all-IP”) environment for services based on mobility and high bandwidth. But it is the potential business impact—the impact on business models and on entire industries—that is the most truly disruptive aspect of a 4G vision. 4G will potentially reshape not just the wireless industry, but cable, wireline, media and handset companies.

Any discussion of the technology side of 4G is complicated by the fact that the International Telecommunication Union (ITU) will not even release its official definition of wireless 4G technology until 2008 or 2009. Accenture believes that there are six major characteristics at the heart of the next generation of wireless broadband solutions and services known as 4G:

1. Flat IP: The new communications environment is all-IP or, even more accurately, “flat IP.” That is, the architecture stresses lower-latency flat networks that comprise fewer network nodes.
   
   
2. Open: 4G application and service development will be characterized by an open architecture model, derived from Internet-style development.
   
   
3. Device neutral: Particular handsets or mobile devices will not be locked into particular networks. In general, with some exceptions, any device will be able to access any network.
   
   
4. User-driven: Increased user control is the essence of the Web 2.0 world. Users have more control over accessing, receiving, creating an sharing content. Today’s communications environment is characterized primarily by passive users and active providers. Tomorrow’s environment will be one much more oriented around user desires.
   
   
5. Rapid development times: part of the adaptation to Internet models involves adopting a certain “good enough” approach to services. Developers will be pushing applications and services to the marketplace much more rapidly in a kind of “perpetual beta” environment.
   
   
6. Flexible revenue models: A distinctive aspect of the 4G environment is the flexible, adaptive pricing models that drive the business. Providers will no longer be locked into a particular model. With dynamic pricing, services might be based on subscriptions, pay-per-use or advertising. And the model might shift from day to day, or even hour to hour.

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