Location Area
A "location area" is a set of base stations that are grouped together to optimise signalling. Typically, tens or even hundreds of base stations share a single Base Station Controller (BSC) in GSM, or a Radio Network Controller (RNC) in UMTS, the intelligence behind the base stations. The BSC handles allocation of radio channels, receives measurements from the mobile phones, controls handovers from base station to base station.
To each location area, a unique number called a "location area code" is assigned. The location area code is broadcast by each base station, known as a "base transceiver station" BTS in GSM, or a Node B in UMTS, at regular intervals.
In GSM, the mobiles cannot communicate directly with each other but, have to be channeled through the BTSs. In UMTS networks, if no Node B is accessible to a mobile, it will not be able to make any connections at all.
If the location areas are very large, there will be many mobiles operating simultaneously, resulting in very high paging traffic, as every paging request has to be broadcast to every base station in the location area. This wastes bandwidth and power on the mobile, by requiring it to listen for broadcast messages too much of the time. If on the other hand, there are too many small location areas, the mobile must contact the network very often for changes of location, which will also drain the mobile's battery. A balance has therefore to be struck.
Read more about this topic: Mobility Management
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