Page 114 - ITU-T Focus Group Digital Financial Services – Technology, innovation and competition

ITU-T Focus Group Digital Financial Services
Technology, Innovation and Competition

3.5 Internet-based access to DFS

3.5.1 Low-speed data networks

General packet radio service (GPRS) and enhanced data for global evolution (EDGE/EDGE+)

GPRS is an IP-based technology used to upgrade GSM networks that use expensive and very slow, time-based
CSD to access data. GPRS allows subscribers to stay connected to data on the Internet and to be billed per
25
data unit (in megabytes or gigabytes).
26
EDGE, and later EDGE+, are software-based enhancements to 2.5G GSM/GPRS, providing slightly higher
27
mobile data speeds. They are, however, still much slower than the data speeds offered by 3G/4G mobile data
network.

The majority of phones – usually feature phones – used in emerging markets for DFS access use EDGE/EDGE+
for mobile data access. 28

3.5.2 High-speed data networks

3G technologies
Third generation (3G) mobile networks – also known as universal mobile telecommunications service (UMTS)
‒ provide higher speed data. The fastest 3G incarnation is high speed packet access (HSPA+). 3G requires new
MNO base stations and new frequency allocations, both of which can involve high capital cost outlays for MNOs.
3G allows bandwidth-heavy DFS smartphone apps to utilize the full spectrum of facilities these apps offer, for
example, agent mapping services.
4G technologies

Long term evolution (LTE) is a 4G data standard. It increases the capacity and speed over HSPA by using a different
radio interface together with core network improvements. LTE advanced (LTE-A) is a major enhancement of
LTE and includes voice over LTE (VoLTE). 29

4 Mobile phone types used in DFS

4.1 Overview

The predominant types of mobile handsets in DFS markets that serve those at the BOP are what are now known
as ‘basic’ phones and ‘feature’ phones, with some DFS markets showing increases in smartphone penetration. 30

Mobile phone evolution over the past few years has, to some extent, rendered distinctions between these
device categorizations somewhat fuzzy, as they can share some, but not all, of the same or similar features
and capabilities.

25 CSD data access is billed per minute compared to always-on systems like GPRS, EDGE, and 3G or 4G which charge according to
how much data is transferred.
26 GPRS and the other data facilities are billed in data units like megabytes or gigabytes of use by the MNO.
27 This is known also as enhanced GPRS (EGPRS).
28 Perlman (2016b) ibid; Perlman (2017) ibid
29 Note that 5G mobile network technology is still in development.
30 The ‘basic’- or ‘low-end’ - appellation is a throwback to the early days of the emergence of GSM mobile technology, where only
basic functionality - such as call functions, SMS, USSD v1 functionality, and a phonebook - were needed (and available) to commu-
nicate. However, some basic devices could receive VAS, such as ringtones, via OTA installation.

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