India Webinar Final Ppt

October |2012

Mobile Broadband in India: Carrier

Strategies

Basharat Ashai Market Analyst, APAC

Maravedis-Rethink

Caroline Gabriel Research Director

Maravedis-Rethink

Deepak Chanduka GM, Marketing & Business

Development

MTNL

Agenda

Copyright © 2012 Maravedis Inc

Introduction

◦ Caroline Gabriel, Research Director

Maravedis-Rethink Presentation

◦ Basharat Ashai

MTNL Presentation

◦ Deepak Chanduka, GM, Marketing &

Business Development

Q&A

Key trends driven by India

TD-LTE enters mainstream

New device economics

New web services models

Rising international impact


Key trends influencing India

Convergence of

TD/FD-LTE

Multimode devices

and breakthroughs

New chip architectures

Global roaming issues

Operators start to think

globally

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India 4G and Cellular Market Analysis and

Forecasts, 2012-2017

Agenda


1 • Key Findings

2 • TD-LTE Operator Case Study

3 • Conclusions

Key Findings Market Drivers:

Multimode Devices, Local Content and Broadband Policy

Challenges Ahead:

Shortage of Spectrum, Low ARPU and 3G/4G Device cost

Forecasts(2012-2017):

3G and TD-LTE Subscriber Base To Reach 371 million and 67 million respectively by 2017


Market Drivers


Inexpensive multimode

(2G/3G/TD-LTE) devices will drive market adoption

Local content and applications

around entertainment and popular festivals

Public investment and broadband

policy

Challenges Ahead


Shortage of spectrum

Low ARPU

Price sensitive market for both

devices and services

3G Market Forecasts

Slow 3G growth so far

Beyond 2015 it is 4G

Growth in Data traffic still modest

Adoption of Wi-Fi for offload

Role of unlicensed frequency bands (2.4 GHz and 5.8 GHz)

Source: India 4G and Cellular Market Analysis and Forecasts,

2012-2017 – 6th Edition (June 2012)


4G Market Forecasts

TD-LTE base will reach 67 million by the end of 2017

Multimode smart phones (2G/3G/TD-LTE) to lead the device category with a 45% market share

Multimode (2G/3G/TD-LTE) device price to reach US$50 may take more than two years

FDD-LTE at 700 MHz spectrum by 2015 in rural areas

Source: India 4G and Cellular Market Analysis and Forecasts,

2012-2017 – 6th Edition (June 2012)


TD-LTE Operator

Case Study - Bharti Airtel

Acquisition of Qualcomm Spectrum

• What it means for Bharti-Airtel?

Current 4G Market

• High-end residential user, SMEs, Enterprises

4G Benefits

• Devices are backward compatible with 3G and 2G

4G Challenges

• Integration with the 2G and 3G network

• LTE BTS Radius in the 2.3 GHz band is much lower than 3G in the 2.1 GHz band


TD-LTE Operator

Case Study - Bharti Airtel (Contd.)


Strengths 1. 2G, 3G and 4G spectrum Assets 2. 3G and 4G spectrum in two lucrative high ARPU markets-Delhi and Mumbai

Weaknesses 1. Not strong in the rural market which is dominated by BSNL 2. Does not have a pan-India BWA spectrum like RIL

Opportunities

1. Small BWA license holders as acquisition targets

2. 700 MHz opportunity in India

Threats 1. RIL(Pan India BWA licensee) 2. Intense price competition and losses on foreign exchange

Conclusions

Growth in the Indian wireless market will be hampered by shortages of spectrum

3G and TD-LTE will boost Indian mobile operators’ ARPU from VAS

The adoption of affordable smart phones(US$50) will influence the 3G growth

TD-LTE to gain traction in 2H 2013


Contact


For information about this

report please contact:

Adlane Fellah

Maravedis-Rethink

[email protected]

Tel: +1-786-452-6522

MTNL Status & Strategies

Deepak Chanduka GM (Marketing & Business Development), MTNL

MTNL at Glance

2012 Highlights New Developments

Impact of Thrust Areas of National Telecom Policy (NTP) 2012

Mobile Broadband Potential Growth Factors for MTNL

Mobile Broadband: Next Level MTNL Strategy

Incorporated in 1986 as a PSU with 56% govt. holding

To upgrade the quality of telecom services

Expand the telecom network

Introduce new services in Delhi – the Political Capital &

Mumbai – the Business Capital of India.

Pioneer of telecom technologies, has emerged as India's

leading and one of Asia's largest telecom operating

companies

Navratna status in 1997

Employee base : 41,600

MTNL AT A GLANCE

Delhi

Mumbai

First Telecom operator in India to launch 3G GSM mobile, ADSL2+, VDSL Broadband, IPTV and VoIP Service

MTNL offers various services that include:

Basic Telephony ,Integrated Services Digital Network (ISDN)

MPLS-VPN Service

Managed Leased Line Network (MLLN)Intelligent Network Services

CDMA based WLL services 2G & 3G Cellular Mobile services Long Distance Calling Service Internet Services Broadband , VoIP , IPTV , Wi-Fi Video Conferencing Digital Signature Certification Service, etc

MTNL AT A GLANCE

5 million customers in 3G/2G in Delhi and Mumbai

Expansion plans for 3G node B BTS network in process

Femto cells implementation for better coverage & capacity

The spectrum block released for MTNL for 3G

size of 2X5 MHz in 2.1 GHz.

Relative price paid for Delhi and Mumbai is very high.

4G spectrum 20 MHz in 2.5/2.6 GHz band returned due to

High cost of spectrum

Private operators allotted 2 blocks of 20MHz spectrum in 2.3 GHz which

has better eco system.

MTNL did not get any revenue share partner

The MTNL/BSNL blended ARPU for GSM service is approx.

1.7 USD per month .

There is a growth in 3G data consumption up to 5% per month

Price wars continue in 3G data plans

MTNL has enough backhaul fiber capacity to carry data

services like MPLS, Enterprise, 3G, Broadband etc.

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3G Data Volume Growth in MTNL Network

Upgrade existing HSDPA 3G network speed from 3.6Mbps to HSPA+

supporting 21.1 Mbps per sector.

Increase in packet core capacity from 2.2Gbps to 20Gbps

2G / 3G network will be expanded to improve network coverage by adding

Upgrade of TDM backhaul M/W network from 16E1s/32E1s/STM-1 to

Hybrid Microwave up to 400Mbps

City Node B BTS

Delhi 610 330

Mumbai 380 230

Revenue Growth per annum through increase in 3G & data usage is expected

to be

FY 2012-13 7.5%

FY2013-14 12%

FY 2014-15 15%

Sharing of BTS node B and M/W backhaul network

At least 5% per annum growth in the revenue through sharing of BTS/Node-B

site’s infrastructure & M/W backhaul network is expected in the subsequent

years

Sharing of 3G network/ spectrum if allowed as per NTP 2012, MTNL hopes to generate USD 100m additional revenue per annum.

High Revenue from mobile Broadband in Delhi and Mumbai as mobile internet in these two cities is high percentage of mobile internet in India.

Higher ARPU from mobile broadband will drive the 3G/4G market as compared to present very low ARPU from GSM.

The number of fixed broadband users, currently which are 85% of total, may shift to wireless broadband. MTNL will have 3G as well as FTTH to provide high speed broadband to individuals and enterprise customers.

Unified license is expected to roll out post December

“One Nation Free Roaming” concept will be introduced in 2013

NTP 2012 gives importance to provide secure, reliable, affordable and high

quality converged telecommunication services anytime, anywhere for an

accelerated inclusive socio-economic development.

Broadband: “’Broadband For All” at a minimum download speed of 2 Mbps

Convergence of Network, Services and Devices

Liberalization of Spectrum: any Service in any Technology

Simplification of Licensing regime: Unified Licensing, delinking of Spectrum from License, Online real time submission and processing

Consumer Focus: Achieve One Nation – Full Mobile Number Portability and work towards One Nation – Free Roaming

VOIP : Voice over Internet Protocol .Cloud Computing: Next Generation Network including IPV6

Reposition the mobile phone :from a mere communication device to an instrument of empowerment

Beyond voice communication the biggest motivator for Indian

masses would be video or video-on-demand.

VoD on a 4G enabled device partially overcomes the disadvantages

like choice of content, privacy, etc.

Tablets can be a lot cheaper for target user groups

Video will generate enough traffic on the network to generate

enough volumes.

Important applications will be Video mail, Interactive video and voice

response, Video ring back tones, Video conferencing, Video

streaming, video advertising etc.

Mobile Gaming industry is expected to multifold in demand and

revenue generation

A 4G based mobile hotspot can offer a convenient tool to provide

faster speed for cyber cafes as well as individuals in their homes.

On the corporate side, around 26 million SMEs in India offer a huge

potential market for 4G as most of the SMEs lack affordable high-

speed Internet service (broadband) in India, particularly in Tier II and

Tier III cities leading to lack of widespread adoption of e- commerce

by local businesses.

From traveling sales force to accounts/finance using internet banking,

4G offers a promise for improvement in business at each level for an

SME.

Present state Future strategy

3G infrastructure: make it IP ready

Number of 3G towers inadequate for seamless coverage

Increase 3Gtower no to 2X or 3X vis-a-vis 2G towers to provide better quality of experience to users

3G network not working with city based Wi-Fi players to offer complementary service

To work with city based Wi-Fi players and own Wi-Fi network to provide complementary service

Interoperability: Shift from Pilot to Commercial

Operators doing technical testing of inter-operator 3G calls

Operator should roll out full fledged inter-operator 3G calls

Operators have presently limited roaming tie-ups Service providers should increase roaming tie-ups with all national and international operators

Operators are testing quality of experience for interoperability for all services

All Interoperable service should provide enriching experience

Present state Future strategy

Content - Needs Overhauling Focus on high speed data, video call, Mobile TV and gaming

Focus should be on killer applications w.r.t video, gaming and high speed data

Focus on vanilla applications and vertical applications are missing

Focus should be on innovative applications related to verticals like health, education, govt. etc.

Some operators focusing on different applications w.r.t age groups

All operators should focus on different applications w.r.t different age group of customers like youth, professional and housewives.

Focus is on experiencing 3G through freebies & subsidized schemes

Focus should be on quality of experience and providing enriching experience

Tie-up with limited content aggregators and VAS players

Service providers should increase tie-ups with content aggregators & create a large ecosystem of innovative VAS players

3G Handset: Focus on reducing cost Average cost of 3G handset is still high Cost of 3G handset should come down

No of people having smart phone and 3G phones is quite less

Operators should increase the intake of people having smart phones and 3G phones

Lack of awareness about usage of 3G phones Handset players should increase in store demonstrations and they should be properly trained

THANK YOU


For information about this report please contact:

Adlane Fellah

Maravedis-Rethink

[email protected] Tel: +1-786-452-6522

India Webinar Final Ppt

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