Business Opportunities for Mobile Broadband through WiMAX

1
Business Opportunities for Mobile Broadband
through WiMAX

• By
• PRADEEP NAGPAL
• GM,BSNL
• INDIA
• 15.10.2008

2
Agenda

• 1.Opportunities in India2. Knowledge economy of
  India 3. Broadband Policy of Govt. 4. Spectrum
  Policy5. Telecom Unleashed by Wireless 6.
  India WiMAX Environment7. Future Plans of
  BSNL8. Challenges9. Summary

3
The Opportunity in India

• Population 1.15 Billion people
• Indias Tele-density
• - Overall 31
• Rural 8.8
• Urban 65
• Broadband 0.4
• Internet 4
• 500 Million phone connections by year 2010
• High GDP Growth-8
• Increased Income of middle class(300M)
• PC Penetration 2

4
The Opportunity in India-Growth Pattern
5
Mobile Tariffs in India -one of the Lowest
USD
6
India is a Knowledge Economy

• The Talent Pool in India Gives it a Significant
  Edge
• 10,000 accredited institutions (38 10yr CAGR)
• Over 3 mn graduates Post Graduates per annum
• 675,000 Technical Graduates p.a which include
• 375,000 engineers
• 50,000 MBAs
• Large pool of English speaking, computer savvy
  graduates Second to US in size availability of
  skilled and English speaking manpower
• Increase use of internet for both official and
  personal needs

7
Broadband Policy

• Broadband policy announced in October 2004.
• Broadband has been defined as Always on data
  connection with minimum download speed of up to
  256 Kbps
• 20 Million Broadband connections by end of 2010.
• By end of Sep 2008, 4.95 million Broadband
  connections provided

8
Bridging the Digital Divide Demand and Policies
Converging
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Focus in Rural Areas

• Broadband coverage for all secondary and higher
  secondary schools by the year 2009.
• Broadband coverage of all public health care
  centers by the year 2009.
• Broadband coverage for all Village Panchayats
  (Local Rural Bodies) by the year 2009.
• Plan to provide citizens services in 1,00,000
  Community Service Centres

10
Tele-Education

• About 150,000 Higher Secondary schools planned to
  be covered
• About 70 in rural areas
• Broadband planned for all these schools on
  priority
• Will be used for interactive distance learning
• Infrastructure by service providers USOF

11
Spectrum Policy

• Govt. to auction spectrum in 2.3 2.5 Ghz band
  for Broadband Wireless Access.
• Upto 2X10 Mhz spectrum will be provided to each
  operator in TDD mode.
• BSNL has already been allotted 20 Mhz of spectrum
  for its service areas.

12
India-Telecom Unleashed By Wireless

• Second largest cellular market in the world
• Existing 38 million wireline and 353 million
  mobile subscriber as on Sep 08
• Fastest growing telecom market in the world 500
  Million subs by 2010
• 6-8 competing operators in over 8000 cities
  towns
• Lowest Tariff in the world

Indias wireless market is growing at 8-9
Million new subscribers every month
Mobile Subscribers
460
400
Millions
330
240
Fixed Line Subscribers
149
13
India WiMAX Environment

• Deployment in 3.3-3.4 Ghz band only
• Most of the deployment are of proprietory
  technology or 802.16 d version
• BSNL has already deployed WiMax 802.16 d
  version equipment in ten cities
• VSNL,Reliance and few other operators/ISPs have
  also deployed WiMAX systems mainly for enterprise
  customers

14
BSNL Vision- Broadband Everywhere
15
BSNL - Future Plans

• BSNL to follow two routes for WiMAX deployment
• - Deployment through Franchisees route
• - Own deployment

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Franchisee Route

• A Franchisee Agreement has been made for
  deployment of mobile WiMAX in three circles i.e.
  Gujarat, Maharashtra and Andhra Pradesh
• Commercial trial to be completed by Dec-08 by
  deploying 25 BTS in each circle.
• Expected 150 thousand customers by March-10 and 3
  million in next 6 years.
• One of the largest WiMAX deployment in the world
  covering 250 million population

17
Expression of Interest

• EOI has been floated for 16 LSAs on revenue
  sharing basis for BWA services on 6/10/2008.
• LSAs Kolkata ,Chennai, Tamil Nadu Karnataka,
  Haryana, Rajasthan , MP, UP(East), UP (West),
  West Bengal, Himachal Pradesh, Bihar, Orissa ,
  Assam, J K, North East
• Equipment will be supplied , installed, operated
  maintained by the Franchisee.
• Infrastructure like power, space, backhaul etc.
  will be provided by BSNL.
• BSNL has been allotted 20 MHZ spectrum in TDD
  mode at carrier frequency of 2645 MHZ by WPC.

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1000 BTS Rural Tender

• The tender was opened on 29.4.2008 and the
  commercial technical evaluation is completed.
• POC is in progress.
• 14000 CSC and about 25000 villages will be
  covered by this tender.
• The capital expenditure of about Rs.160 Crores
  will be borne by DIT.

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Punjab Kerala Tender

• The tender for procurement of WiMAX equipment for
  Punjab Kerala Circle has been issued on
  4/10/2008.
• 1600 BTSs will be procured through this tender.
• Around 8 lakhs CPE will be procured .
• The tender will cover rural urban areas of
  Punjab Kerala.

20
Challenges

• WiMAX 802.16 e technology is still evolving.
• High WiMAX CPE cost
• Competitive/Alternate technologies-3G,HSDPA,LTE,
  EVDO etc
• Low PC Penetration
• Less-availability of A.C. power in rural areas

21
Summary

• India is one of the strongest and fastest growing
  Economies in World.
• Indian Telecom sector is growing at an explosive
  pace with highest growth in wireless users
• Growth in broadband in India will lead to massive
  opportunities for broadband wireless technologies
  such as WiMAX
• Government of India fully supports growth of all
  technologies and will provide necessary
  regulatory framework to promote and facilitate
  such growth

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THANK YOU