UTStarcom Inc.
Cost-effective, Profitable, IP-Based Deployments of Inclusion
Technologies in Developing Countries
“Models for a commercially viable increase in Tele-density and
Broadband penetration”
CANTO – 2005 / St. Kitts – West Indies
Marcio Fonseca – Marketing Manager
Who is UTStarcom?
UTStarcom is a worldwide leader in the development of wireline, wireless, optical and
access switching solutions. By working with UTStarcom , service providers around the
world can now generate new revenue by offering their subscribers a rich array of
premium voice, data and video communications services
Founded in 1991, HQ in Alameda, California
NASDAQ listed since March 2000 – (ticker symbol: UTSI)
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Over 300 customers worldwide
Three consecutive years of growth
Over 70 million ports deployed worldwide
Over 40 million iPAS subscribers in China (PHS Technology)
Over 100K iPAS Subscribers in the Caribbean and Latin America
Shipped over 30 million handsets in 2003/2004
The largest Softswitch deployment in the world
The largest GE-PON network in the world
Introduced 4 new key products in 2004
– MovingMedia 2000, MovingMedia 6000, GE-PON & mVision
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Market Recognition
# 31 - “100 Fastest-Growing Companies”
# 33 - “100 Hot Growth Companies”
- June 2004, 5th fastest growing company
# 9 – “Top 25 Fastest Growing Tech Companies”
**two years straight
Top 10 - Investor’s Business Daily 100
# 1 - “Fastest Growing Tech Companies”
4
Technology and Industry Leadership
Wireless
#1 Market Share Worldwide in PAS/iPAS
#1 Market Share Worldwide in CDMA PDSN
Wireline
#1 Market Share Worldwide in Media Gateways
#2 Market Share Worldwide in SoftSwitch
#2 Market Share Worldwide in IP-DSLAM
Source: Infonetics Research Inc., Synergy Research, First Call Reports, Internal Estimates
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Strategic Acquisitions 2003/2004
Data Enhanced Mobile
Switching Solutions
Audiovox Communications
Corporation (ACC)
Mobile Handsets
CDMA2000
450/800/1900MHz
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iPAS , MovingMedia 2000 , IP-DSLAM, and
GE-PON
®
®
Models for a commercially viable increase in Tele-density
and Broadband penetration in Developing Countries
Regional Statistics and Comments
Country
Teledensity
Antigua & Barbuda
Bahamas
Barbados
Belize
Cuba
Dominica
Dominican Republic
Grenada
Guyana
Haiti
Jamaica
St. Kitts & Nevis
St. Lucia
St. Vincent & the
Grenadines
Suriname
Tinidad & Tobago
48.78
41.53
49.68
11.27
6.40
30.39
11.54
29.04
9.15
1.68
16.92
50.00
31.95
27.25
15.17
24.98
Internet users
per 10,000
inhabitants
1282.05
2649.01
3707.82
1088.53
86.63
1602.56
1023.84
1690.39
1422.07
180.16
2284.50
2127.66
823.96
PC's per 100
inhabitants
10.21
…
10.41
12.70
2.39
8.97
8.78
13.21
2.73
…
5.37
19.15
15.00
598.29
11.97
437.18
1060.32
4.55
7.95
Comments:
- Great opportunity for ISP’s to join forces with hardware
providers to increase overall PC / Internet penetration
(packaged deals, i.e. MSN)
- Specific opportunities for immediate increase of
Teledensity.
- Developed countries usually have higher broadband
penetration rates in general.
- Total Broadband penetration for the developed world is
14.1%. Internet usage in the region is 13.78%. Conversion
from dial-up to Broadband will result in added revenues for
carriers.
- Broadband deployment is the path for future triple-play
services which will add to the bottom line of carriers.
Other Countries
U.S.A
Germany
England
Brasil
Hong Kong
62.38
65.73
59.06
22.29
55.89
5577.84
4725.46
4230.98
822.41
4717.70
65.98
48.47
40.57
7.48
42.20
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iPAS® - PHS WLL technology for low Tele-density areas
Key Points:
WLL application very economic
DWRT
Radius
ATC/SATC
AN-2000
Implementation via Micro-cells with 500m to 1Km in range
AN-2000
Quickly deployment for rapid increase of Tele-density.
INTERNET
AN-2000
Total Control 1000
iAG
AN-2000
CS
CSC
E1/T1
2W
AN-2000
BRI
WRT
FSU
CS
CSC
AN-2000
E1: V5.1/V5.2
T1: TR08/GR303
AN-2000
CS
CSC
PSTN
SS7
AN-2000
WRT
PS
LEGEND
WRT
Wireless Remote Terminal
DWRT
Data WRT
ATC
Air Traffic Controller
CSC
Cell Station Controller
CS
Cell Station
FSU
Fixed Subscriber Unit
PS
Personal Station
iAG
Internet Access Gateway
IP Network
CSC
CS
iPAS GW
Call Control
& BES
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Success Stories – Ti Telefon and Multifon
Teleco Haiti / Multifon Honduras
- “Ti Telefon” and “Multifon”
- 50K Subscribers in 3 years of
operation in Haiti. 50K subs in
Honduras in less than a year.
- First really affordable option for
telecommunications services in
both countries
- Known as diesel phone in Haiti.
- Stable platform fully operational
through hurricanes and political
turmoil.
- Responsible for immediate
increase of more than 30% in
country’s Tele-density.
- UTStarcom support extends
itself to everything from
marketing to the operation of the
network
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MovingMedia 2000 - IP Based CDMA 2000 1X solution
®
Sonata SE
Wireless
SoftSwitch
SS7
Sonata
OMC
Applications:
• Wireless Networks
• Tandem Networks
• IP-Based CDMA2000 1X
E1 or T1
MF R1, MFC R2, ISDN
PRI or ISUP / SS7
PSTN
Feature
Server
Sonata IMG
Intelligent Media
Gateways
Voicemail, Prepaid,
SMS,
Packet
Network
PDSN
1G/2G/2.5G
RAN/BSS
CDMA iCell
IP-BSS
Packet
Core Network
AAA
• AMPS
• GSM/GPRS
• CDMA2000 1X
Internet
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MovingMedia 2000
- Key Value Proposition:
Rapid Deployment and Transmission Cost Savings
®
A transmission cost comparison of UTStarcom’s All IP NGN vs. traditional wireless
solutions indicates potential savings of 98%.
Assumes 5 iCells, 85% local traffic
Traditional
Bandwidth Required:
Annual cost
BTS
22 T1
$1,056,000
5 T1
PSTN
MSC
BSC
Local
PSTN
17 T1
UTStarcom’s All IP Network
Bandwidth Required:
Annual cost
iCell
Partial T1
$17,592
PSTN
MSC
Server
IMG
563Kps
Managed
Packet Network
IMG
Local
PSTN
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IPDSLAM – Broadband Solution
Where an actual copper
infrastructure exists,
operators may deploy
broadband service utilizing
IP-DSLAM’s to a
neighborhood or a cluster of
buildings or a single building
if it wishes to do so.
The key for any successful
broadband deployment is the
cost of the service. Research
shows that customers are
willing to embrace new
technologies that they may
afford.
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IPDSLAM – Brasil Telecom
Key points:
- Late deployment
- Very aggressive pricing
strategy
- Available plans:
Turbo Lite – 50 Hours of
access for $ 9.95 monthly
@ 150Kbps
Unlimited Usage @
400Kbps for $ 31.95
- Expected subscriber base:
more than 1 million
subscribers in less than a
year of operation.
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GE-PON – Passive Optical Network
Where no copper exists, operators may decide to go directly with GE-PON for their last mile
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GE-PON – Triple Play Services
Where GE-PON networks are deployed the operator
can fully explore that market’s potential by offering
triple play services: Telephony, TVoIP, Broadband,
VoIP, VOD, Gaming, and many more to come…
SUBSCRIBER
SoftSwitch
Call Control
& Signaling
DSL CPE
SIP/MGCP
PON
ONU
OLT
GE PON
VOICE, DATA & VIDEO
PSTN
SUBSCRIBER
DSL CPE
IP CORE
PSTN/PLMN
GATEWAY
PON
ONU
VOICE, DATA & VIDEO
TMG
Internet
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Yahoo BB! – Triple play utilizing UTStarcom Infrastructure
Total = $90.31/monthly ARPU
Yahoo! BB – Broadband Access
$35.29/month
BB Phone –VoIP
$10.37/month
BB Video – Video on Demand
$4.07/month
Yahoo! BB - WiFi
$9.27/month
BB TV - IP
$28.30/month
BB Gaming – Online Gaming
$3.01/month
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Conclusions
• Network deployments need to go hand in hand
with an initial demand study for the applications.
• In other countries, broadband penetration has
been a direct consequence of its pricing.
• Any network investment must add to the bottom
line by saving OPEX or increasing revenue.
• Search for network vendors that support the
operation from all sides. Including marketing and
sales of the solution to the end-user such as
UTStarcom
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QUESTIONS???
For more information, or for a copy of this
presentation please email
marcio.fonseca@utstar.com