Current State of Wireless Technologies in India

1
Current State of Wireless Technologies in India

• Mr. Ajay Madan
• Essar Telecom Infrastructure Private Limited

2
Contents

• Wireless Industry Overview
• Broadband in India
• Wireless Broadband Catalytic Growth
• Case Study Benefit of Infrastructure sharing in
  WiMAX rollout
• ETIPL Overview

3
Wireless Industry - Overview
4
Indian Telecom Growth - Mobile Driven
Wireline subscribers have been steady at around
40 Mio for the past 3 years Growth in Fixed line
attributed to fixed wireless growth
estimated for Mar08
5
Broadband in India
6
Broadband Market - Key drivers
7
Market Drivers Consumer Broadband Applications

• Peer-to-Peer Communications
• Sharing/sending digital entertainment files
• Local web hosting
• Distributed computing
• Video-on-Demand
• MSO offerings
• Movielink?
• CinemaNow?
• Electronics and Video Cameras
• J-phone, web ready PDAs
• Nikon Coolpix 990 ?
• SONY MD Discam?

• Online Gaming
• X-Box Live
• Playstation 2
• Sony Everquest ?
• The Sims? Online
• Home Networking Products
• Wireline routers
• WI-FI
• Automation
• Remote Business
• Teleworking
• Remote education
• Telemedicine

8
Broadband Demand
Of 250 Mio households in India - approx. 175 Mio
household constitute the addressable market
Current Broadband
Next Generation Broadband
Ave. ARPU of 500 means Market potential of Rs.
100,000 Crores
9
Broadband Growth
Total broadband connection as on 31st Dec 2007
were 3.13 Mio

• Broadband penetration remained low since it was
  mainly being provided using wireline network
• New entrants not investing in creating wire line
  infrastructure which is adversely impacting
  proliferation of the broadband services in the
  country
• Future penetration of broadband could be very low
  as further growth of wireline networks is doubtful

Wireless would be the key to aggressive
penetration
10
Wireless Broadband provides an economic
alternative
11
Wireless can fill the gap in India

• Technologies such as WIMAX and LMDS can transport
  large amounts of data over long distances.
• WIMAX will be able to carry a 20 Mbit/s
  connection over 10-15 km LoS and 1-4 Kms
  non-LoS
• WLAN technologies such as Wi-Fi can spread the
  connection over a short distance from the
  landing spot of a long-range connection

3G mobile technologies (WCDMA/ HSDPA EVDO) can
Provide 2Mbps connectivity as well as mobility
without needing a PC
12
Wireless Technologies in India

• GSM
• GPRS EDGE 3G (UMTS)
  LTE
• CDMA
• IS-95 CDMA 2000 EVDO
  EVDV
• BWA
• WiMAX
• Wi-Fi
• IBurst
• IP Wireless (TDD CDMA)
• LMDS
• MMDS
• Satellite
• Troposcatter
• FM/AM radios by defense in HF/VHF/UHF
• Microwave transmissions

13
Benefit of infrastructure sharing for WiMAX

• Case Study

14
Case Study WiMAX roll out in Mumbai
Assumptions

• 10 year business plan
• Starting with 300, 700 base station roll-out
• Acquisition of 500,000 subscribers
• Average ARPU of Rs. 300/p.m.
• Capital expenditure/BS of Rs. 26.5 Lacs

15
Benefits with infrastructure sharing

• Better business case
• More free cash flow
• Lower cost
• Faster time to market
• Hassle free management

16
ETIPL Overview
17
Essar Telecom Infrastructure - Overview

• Part of a leading Business conglomerate ESSAR
• Enterprise value of over US 30 billion
• Committed to provide the best Passive
  Infrastructure provisioning service to the
  Telecom service providers
• Within a short span of just over 2 year, ETIPL
  has made a rapid and remarkable stride in setting
  up over 4500 Telecom revenue sites across 13
  Telecom Circles
• Plan to have 20,000 sites in 3 years
• Organization of 350 experienced people built
  across 13 Circles and corporate
• Mix of Telecom, Civil, Electrical and Projects
  experience

18
Leveraging Group synergies
Essar in Telecom Infrastructure

• Infrastructure
• Essar Steel - Raw material for Tower Shelter
• Essar Shipping - Logistics Supply Chain
• Essar Construction - Project Management
  Implementation
• Essar Power - Conventional Non-conventional
  Energy
• Essar Oil Fuel for backup Power (DG Sets)
• Telecom Services
• Operator Experience - Telecom Service
  Provisioning, understanding Customers customer
  requirements
• BPO Experience - Voice Data based processes,
  Customer Service Orientation