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Barker Aug 0 1 Libraries Software Defined Radio: A System Engineering View of Platform Architecture and Market Diffusion by Moise N. Solomon Masters of Science in Electrical Engineering Northeastern University, 1992 Bachelor of Science in Electrical Engineering University of Massachusetts - Amherst, 1988 Submitted to the System Design and Management Program in Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Management at the Massachusetts Institute of Technology January 2002 2002 Moise N. Solomon. All Rights Reserved The author hereby grant to MIT permission to reproduce and distribute publicly paper and electronic copies of this thesis document in whole or in part. Signature of Author. ......................................................... System Design and Management Program, January 2002 Certified B y.......... ....................... James M. Utterback David J. McGrath Jr. Professor of Management and Innovation Thesis Supervisor A ccepted B y.......................................... Prof. Steven D. Eppinger, LFM/SDM Co-Director General Motors Leaders for Manufacturing or of Management Science and Engineering Systems Accepted By....................... ................... ........... Paul A. I(a e, LFMSDM Co-Director Professor of Aeronautics & Astronautics and Engineering Systems MASSACHUSETTS INSTITUTE OF TECHNOLOGY 1 BARKER AUG 0 1 LIBRARIES Software Defined Radio: A System Engineering View of Platform Architecture and Market Diffusion By Moise N. Solomon Submitted to the System Design and Management Program on January XX, 2002 in Partial Fulfillment of the Requirements for the Degree of Master of Science in Engineering and Management ABSTRACT As complexity and ambiguity in products and customer needs increase, existing companies are being forced toward new organizational models. New products require integrating knowledge across technologies, architectures, and functions in new ways, building product platforms that can adapt to changes in markets and product design throughout the product development process. In particular, the wireless telecommunications industry is plagued by multiple incompatible dominant second-generation standards, with each with separate migration paths to future third generation functionality. The high initial investments in spectrum and infrastructure, and corresponding switching costs, call out for a technological solution that can both evolve with the rapid advances in technology and potentially operates seamlessly across multiple incompatible networks to unify a highly fragmented system. In a system engineering context, this thesis investigates the use of software define radio technology (SDR) as a potential replacement for hardware solutions to the multiple air interface standard problem. This thesis investigates the role of product platform architectures in product market diffusion by studying the selection of appropriate system and product architectures, product market diffusion, and the formation of a system dominant design. Using software defined radio (SDR) technology in the wireless telecommunications industry as a case study, the emergence of SDR as a potential replacement for multiple mobile phone standards is investigated. Compared with interim compatibility solutions that combine multiple air interfaces through hardware. SDRs are an emerging technology that promises to combine multiple air-interfaces into a single wireless phone platform though software configuration. Market and organizational disruptions are determined, and how platform architecture concepts can be used to mitigate these disruptions. The history of the wireless telecommunications industry is presented to highlight the determinants of product and standards success in the wireless industry. The transition between first-generation (iG) wireless, second-generation (2G) wireless, and the interim high data rate second-generation (2.5 G) system currently being rolled out is discussed. Geographical differences in standards acceptance and the role of government policies are discussed. The strong network effects in the industry are illustrated by the late success of GSM technology in the United States market. The mode of technological standard interaction or competition is determined through the use of the Lotka-Volterra model of technological interaction and lessons learned applied to third generation systems. Plans for third generation (3G) wireless are presented, and the various transition paths from 2G to 3G are discussed. The challenges of transitioning between technologies (technological discontinuities) are highlighted through a discussion of the installed base of legacy '3 III equipment. Software defined radio (SDR) technology is presented, and a platform architecture is developed in the context of 3G market penetration. The use of appropriate flexible SDR system architectures in light of rapidly changing technological and market innovations is discussed. Thesis Advisor: James M. Utterback Title: David J. McGrath Jr. Professor of Management and Innovation 4 TABLE OF CONTENTS ABSTRACT ................................................................................................. ................................................. 3 TABLE OF CO NTENTS ............................................................................................................................... 5 LIST OF FIGURESS........................................................................................................................................ 7 LIST OFTABLES ......................................................................................................................................... 9 A CKNOW LEDGEM ENTS .......................................................................................................................... 11 SECTION 1: INTRODUCTION.................................................................................................................. 13 SECTION 2: THEORE TICAL FRAMEW ORK ..................................................................................... 17 Introduction............................................................................................................................................... 17 Dominant D esign Overview ..................................................................................................................... 17 Diffusion of Innovations.......................................................................................................................... 19 Product Platform s ..................................................................................................................................... 27 Increasing Returns, Path Dependence, Network Effects, and Gateway Innovations..................28 SECTION 3: W IRELESS INDUSTRY OVERVIEW ................................................................................. 31 Introduction ............................................................................................................................................ 31 History of W ireless Comm unications System s..................................................................................... 33 The Internet and Packet Radio.................................................................................................................. 36 Overview of W ireless Cellular Com m unications .................................................................................... 37 Overview of IG - Analog......................................................................................................................... 40 A M P S ................................................................................................................................................... 4 1 C -4 5 0 .................................................................................................................................................... 4 1 C o m v ik ................................................................................................................................................. 45 N M T -45 0 .............................................................................................................................................. 4 5 N M T -9 0 0 .............................................................................................................................................. 4 5 N TT ...................................................................................................................................................... 4 9 RC -20 0 0 ............................................................................................................................................... 51 T A CS .................................................................................................................................................... 5 1 Overview of Second-Generation (2G) Technology .............................................................................. 57 IS-95 - Code Division Multiple Access (CDMA - now referred to as cdmaOne)..................59 Global System for M obile Com munications (GSM ) ........................................................................... 63 Time Division Multiple Access (TDMA): IS-54/IS-136 in North America......................63 Personal D igital Cellular (PDC) in Japan.......................................................................................... 65 2G M obile D- ata Services 23 ......................................................................................................................
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