PRESENTATION ON FIXED MOBILE CONVERGENCE

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PRESENTATION ONFIXED MOBILE CONVERGENCE

• by
• N K Goyal
• President, Communications Manufacturing
  Association of India CMAI
• Chairman Emeritus, Telecom Equipment Manufrs.
  Assn. of India (TEMA)
• Director, National Fertilizers Ltd. NFL ( Govt.
  of India Undertaking)
• Chairman, Cogent Telecom Infrastructure Ltd.
• 6th March, 2008
• nkgoyals_at_yahoo.co.in 91 98 111 29879

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• New situation emerging in India
• Very rarely in history have we come
  across such a constellation
• An ascending economic trajectory, rising foreign
  exchange reserves, reducing inflation rates,
  global recognition of technological competence,
  energy of 540 million youth, umbilical
  connectivity's of 20 million people of Indian
  origin abroad, and the interest shown by
  developed countries to invest in our engineers
  and scientists, including in new RD centers.
• The Governments have been emphasizing economic
  development by ensuring growth rates of eight to
  ten per cent annually, enhancing the welfare of
  farmers and workers and unleashing the creativity
  of entrepreneurs, scientists, engineers. This
  opportunity is being fully utilized to bridge the
  rural-urban divide, using Technology as a tool.
• Mobile Technology is becoming a boon for India

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SUCCESS OF TELECOMMUNICATIONS SECTOR

• Worlds fastest Growing Telecom Market - 8
  Million plus subscriber addition per month
• Third largest in the world after China and US-
  soon to overtake US
• 281.62 Mn. Subscribers, Mobile 242.4 Mn.,
  tele-density 24.63
• Internet Subscribers 9.27 Mn. Internet Mobile
  31.30 Mn. Broadband 3.34 Mn.
• Fastest sale of a million mobile phones 1 Week
• Worlds cheapest mobile handset made in India
  US17.2. Reliance plans web enabled phone at 12.
• Worlds Most affordable color phone made in India
  US27.42

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Indian Telecom

• Lowest tariff but highest profitability.
• Lowest Call Rates in the World at 2-3 US Cents,
  Declining ARPU, even then Rs 275 per month for
  GSM
• India ranks highest in Mobile monthly Minutes of
  Usages per subscriber in Asia Pacific Region and
  second to USA in the world.500 minutes per month
• Innovative approach of doing business at lowest
  operation costs.
• Innovative value added conceptsmissed calls,
  rural applications, lowest prepaid charge of 2.5
  cents.

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Factors contributing to Mobile growth

• Difficulty in providing fixed line phones, issues
  relating to right of way, delays in laying of
  cables, maintenance issues etc.
• Very fast and speedy deployment of mobile telecom
  infrastructures.
• Declining cost of ownership for mobile
• Increasing affordability of mobile
• Wide coverage, greater competition
• One instrument serving several imaginative works

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When Wire line was King
We ran inside the house, to receive the call
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Now Mobile is KING
We run out side the house for better coverage
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"Blasting" the Building from outside

• Because of building obstructions, incoming RF
  signals are typically weak. The macro system
  blast the buildings from out side to provides
  maximum power to the handset to enhance building
  penetration ("blasting").
• The handset also compensate by utilizing maximum
  power. This high power transmission creates
  interference with other cells operating in the
  same spectrum.

The Business is INSIDE so why try and fix it
from OUTSIDE?
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Mobile Technology Traffic is moving

• With high mobile subscribers growth Traffic
  moves, in the morning - from one location
  (residential) to another location (Industrial
  Area/ Offices/Malls etc. Back to residential area
  in the evening.

Direction of Erlang Capacity movement
at 8.30 AM
Direction of Erlang Capacity movement at 8.30 PM
Residential Erlang Capacity Peak ( 8 PM-8 AM)
Industry / Offices Erlang Capacity Peak (8 AM -
8PM)
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How will enterprise customers use voice?
An opportunity to offer fixed to mobile
conversion services
Source Infonetics Research (Enterprise
Telephony Market Share and Forecasts 1 Mar.
06), Nokia
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MOBILE PENETRATION - WESTERN EUROPE
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Fixed to Mobile Substitution is a Huge
Opportunity - Case Study Germany
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In building solutions

• Inspite of 70 in building use and only 30 out
  side use operators using one single solution for
  all. The system blasts the buildings from out
  side to provides maximum power to the handset to
  enhance building penetration ("blasting"). This
  creates more radiation and needing more towers.
• The handset also compensate by utilizing maximum
  power. This high power transmission creates
  interference with other cells operating in the
  same spectrum.
• Separation of outdoor and indoor spectrum.That
  also means employment to hundreds of SMEs and
  better spectrum management.

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Technical Solution

• Separating 6.2 MHz into Indoor Outdoor Spectrum
  GSM operators to use only 5.4 MHz for out door
  
• Dedicated 0.8 MHz for Indoor use.
• The outdoor spectrum of 5.4 MHz to be used for
  serving outdoor customers indoor spectrum of
  0.8 MHz would be used for serving indoor users.
• This 0.8Mhz of spectrum can be used repeatedly
  without any cell planning in all buildings
  simultaneously with low power.

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Cable TV Wi-Fi Another time tested example

• There used to be TV antenna on top of each house
  till late 80s -
• The quality of reception was poor with lots of
  reflections, static lines.
• All this changed when Cable TV operators wired
  each every house.
• Mobile operators will have to wire all
  apartments, office blocks, commercial public
  areas.
• Wi Fi
• Another Example where Spectrum is being
• re used in the same building, by many
• different users

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FEMTO CELLS

• Femtocells is emerging as a way to increase voice
  coverage in the home, Ubiquisys, picochip and
  other start-ups in the femtocell sector focus on
  the technology's ability to boost 3G signals in
  the home, thus enabling mobile broadband and data
  services.
• T-Mobile is conducting femtocell trials in
  Netherlands, Germany and the U.K. with NEC and
  Nokia Siemens Networks as partners in the trials.
  
• T-Mobile USA provides Hotspot_at_Home users with
  either a Linksys or D-Link router that acts as a
  standalone wireless hub for in the home. Once
  set-up, calls will automatically route over the
  WiFi network when available (either at home or
  when close to another T-Mobile hotspot) and will
  seamlessly hand off to T-Mobile's network when
  out of WiFi range.

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Way forward

• WIFI for indoor use is licensed as a separate
  category. Likewise to provide in building
  solutions, separate licenses/permission for In
  building wireless services with Low Power,
  should be issued. This will also result in huge
  self employment opportunities as large number of
  service provids can come up throughout the
  country.
• This is an International practice and countries
  like UK, Sweden, Switzerland have issued
  separate licenses for INDOOR purposes.
• TRAI has also recommended this.

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CONCERNS FOR PUBLIC SAFETY

• Changing Skylines.Telecom towers hardly visible
  in advanced countries.need for environmental
  friendly decorative towers in India.
• Towerssafety guidelines non existent for safe
  use and regular verifications audit.

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Typical Tower Jungle scene in Delhi
Scene of an European City Even Shanghai does not
have tower jungle.
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Concerns for public safety

• Radiations - Ultrasound, Invertors, X-ray,
  Mobile devices, Towers.BUT no advice on
  prevention or protection.
• Over exposure, Media cloning makes all channels
  look the same with everything on earth as
  BREAKING NEWS.tiring experience.
• Intrusion in privacy, data theft, increasing
  spam, virus, Email SMS with wrong identity.
• Hello tunes and incriminating use in public
  places on several occasions irritating
• Increasing use by antisocial elements, sting
  operations.

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Leaders Recommend India

• Arun Sarin, Vodafone says.
• I am getting a taste of how they do business in
  India. My team studying secret of low cost
  business model
• In UK average call costs 15 cents and in India
  only 2 cents. Margin remains 40. Low cost labour
  is hardly one third. The other two third is just
  how they do business.
• India has innovative approach to delivery,
  services and distribution systems.
• India more open in telecom. In China they own
  just 3 balance Govt., but in India up to 74
  and balance with private parties.

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Leaders recommend India

• We see in India telecom companies doing 30 plus
  margin on 8 monthly revenue. There is no place
  in the world where wireless fetch these kinds of
  numbers.
• What India has shown on the wireless side is
  significant to the whole world.
• India is platform for Asia. Its a billion people
  under one regulatory environment, you can come
  here and scale and then leverage that grow into
  Asia.
• Randall Stephenson, Chairman CEO, ATT at
  New Delhi Press Interview 1July, 2007(Mint)

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Where is my cell phone mama..

I want to SMS to God that I have reached safely!
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GIO Factor

• GIO means Live Long
• providing
• Great Indian Opportunity