ASIAN TELECOM SUMMIT Presentation By N K GOYAL President, Communications and Manufacturing Association of India, CMAI Chairman Emeritus, TEMA Director, National Fertilizers Ltd. ( Government of India Undertaking) nkgoyals@yahoo.co.in 98 111 29879 Symbiosis Institute of Telecom Management 25th September, 2009 CES, 2009 being inaugurated and ribbon cutting at Las Vegas on 8th January, 2009 by NK Goyal with Sir Howard Stringer, Chairman & CEO of Sony Corporation, Mr. Tom Hanks, the American movie star, Mr.Gary Yacoubian, Chairman CEA & President of Myer-Emco AudioVideo, Mr. Gary Saprio, Vice President of CEA, Ms. Qu., Presixdent, CECC China, Mr. Patrick Lavelle, President and CEO of Audiovox, Mr. Peter Lesser, President and CEO of X-10 (USA) Inc, Mr. Loyd Ivey, Chairman and CEO of MiTek Electronics and Communications, Mr. Jay McLellan, President and CEO of Home Automation, Inc. (HAI), Mr. Mike Mohr, President of Celluphone, Mr.Grant Russell, President of Kleen Concepts Telecom in Asia Asia is a region of superlatives in the ICT arena with over two billion telephones, including 1.4 billion mobile subscribers, and 42 per cent of the world’s Internet users Asia is also the world’s largest broadband market with a 39 per cent share of the world’s total at the end of 2007. (ITU’s 2008 Asia Pacific Telecommunications and ICT Indicators Report) Advantage India At $ 1.15 Tr India is the third largest consumer on PPP basis. India ranks better than China and Vietnam on the Index of Economic Freedom although it is lower than the world average as awarded by The Heritage Foundation and WALL STREET JOURNAL. India scores higher than China and Vietnam on “World Rankings property rights”, which describes the protection of property and intellectual property rights India has a score of 38 on “economic measure of income inequality” better than China (47) US (45) Japan(38) but poorer to UK (34). Shows equal distribution of wealth. The annual supply of science and engineering graduates is higher than China and other developed countries Over 2.3 million graduates and 0.7 million post-graduates each year 2nd largest pool of scientists/ engineers in the world Highest number of qualified engineers, second on trained doctors 389 universities, 14,169 colleges, 1,500 research institutions India’s Electronics Potential Current India market size about US $ 34 Bill. out of which production $16.1 Bill. Ranked 26th in the world in sales, 29th in production Demand growing 25% CAGR, from 4% of GDP to 12% by 2015 i.e.. 320 Bill. Total production may go up to $ 150 Bill. with employment potential of 21 mill. Indian ICT spending is expected to grow at 19% from $ 29.5 Bill. During 2004 to $54.8 Bill by 2008 Consumer Electronics (CE) is the largest segment of the Electronics sector. It contributes 33% to the Electronics production in the Country. The total production of Consumer Electronics is estimated $5625 million during 2007-08 registering a growth of 12.5% www.cmai.asia BELL’S TELEPHONE Alexander Graham Bell, keenly interested in the education of deaf people, invented the microphone and in 1876 his "electrical speech machine," ie today’s telephone. Bell set up the first telephone exchange in New Haven, Connecticut in 1878. By 1884, long distance connections were made between Boston, Massachusetts and New York City. Since his death in 1922, the telecommunication industry has undergone an amazing revolution. Today, non-hearing people are able to use a special display telephone to communicate. Bell's "electrical speech machine" paved the way for the Information Superhighway. Fiber Optics are improving the quality and speed of data transmission. Indian Telecom World’s fastest Growing Telecom Market – 10-15 Million plus subscriber addition per month Second largest in the world after China 494 Mn. subscribers, 456 wireless 281 state-of-the art Networks (GSM+CDMA) 24 National Long Distance & 19 ILD Licensees Lowest tariff but highest profitability. Lowest Call Rates in the World 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 concepts…missed calls, rural applications, lowest prepaid charge CONTINUED WIRELESS GROWTH EXPECTED DUE TO Booming economy, rising income, increasing available disposable surplus Continued big demand, rural potential Introduction of Number Portability by mid 2009 New Operators bringing in competition, spread and cheaper tariffs Introduction of 3G, Wimax technologies Operators allowed intra service roaming Operators scouting cheaper handsets eg. Spice with IDH Media Tek, Taiwan for $15 handest. Also no screen sets being considered. Opportunities Ahead World’s second largest market after China, growing highest per month. 3G & Broadband wireless Auctions to start shortly MVNO to be allowed shortly ISPs, NLD, ILD licences available FDI 74% in operations and 100% fro manufacturing Rural Telecom, Broadband, VAS market New Innovative services, Mobile payments, location based services Endless Possibilities… Internet Browsing Very good user experience Innovation opportunity Once you are truly always connected new applications will emerge Email Push email Keep your inbox synchronized Anti-Theft Lap top turned into a brick Files Keep your files synchronized GPS Functionality Module always turned on in low power mode Built-in Mobile Broadband from Eriocssons ...Benefits Simple Secure Ready to go, no manual configuration Connection automatically resumed after standby mode Can’t lose or break the modem Easy data protection with SMS ”kill-pill” GPS enables location of stolen device Superio r World wide coverage with HSPA Longer battery life time Fast startup and fast combined uplink/downlink $avings Fewer assets to handle Telecom challenges worldwide Health and environmental concerns resulting in several law suits, myths and alarms. Consumer concerns on quality, tariff and after sale service issues. Use of telecom network by terrorists, ant social activities Technology misuse in all sorts of crime ranging from credit card fraud to data theft to simple defamation. Regulatory means for this and also to avoid unsecured wireless networks. Increasing awareness of restrictions sought for use of mobiles in schools, public areas, while driving, offices etc. For ex. New York banning cell phones in schools and Indian Parliament Committee examining need for reasonable restrictions in use of mobile. Technology Battles Telecom is characterized by Hype and Technology debates. At any given time there must be a live technology debate in telecom era. The question for network operators is no longer which technology is best--WiMAX or LTE--but which application will compel consumers and enterprises to upgrade to 4G. Will it be video? Or will it just be more bandwidth for the always-on, always-available wireless broadband connection that consumers have come to expect? Hype v/s reality Internet speed….India Govt. says 256 Kbps, vendors talk of 2 Mbps….as per TRAI no body even gets 256 Kbps. We hear faster speed…but what and under what conditions…no body declares There is no one in the world who knows for sure where we are heading or how we will get there. Hype: LTE will provide about 50 Mbps data services. Fact: Only in a lab where there is a 20 MHz wide LTE system and there is only one user. New Innovations costing others and now self? Almost every week a new application is announced which also aims to take additional revenue from existing others. And slowly it has started affecting the industry itself. Take example of Mobile VOIP Mobile VoIP is moving beyond its initial function as a new mechanism to get inexpensive international/local calls. MVNOs and 3G operators without legacy networks using Mobile VoIP to more cost effectively add voice to data offerings. While Mobile VoIP still poses a direct threat to operator voice revenue, it also represents a dynamic new capability that promises numerous applications. Skype and Vonage have influenced users to think of voice as a data application. As user habits are being shaped by rich on-line communication experiences, mobile carriers control over devices and data applications is waning. Security Threats The speed with which criminals are capitalizing on world events, growing collaboration among cybercriminals and a growing threat from disgruntled former employees. Less than 24 hours after the news of Michael Jackson’s death first broke, spammers had sent more than 5 billion spam emails, reaching a peak of more than 5% of global spam The creators of the Conficker worm, which infected an estimated 9 million computers starting late last year, had established an agreement with the makers of the spambot, Waledac, to help monetize each other’s efforts in a partnership of product and distribution. RIM makers of blackberry says UAE Etisalat issued update during July, 2009 for increasing performance was actually spay ware. It could allow unauthorized access to private information and emails and it reduces drastically battery life. SIM Card Security Scheme Security Accreditation Scheme (SAS), the global programme voluntarily managed by the GSM Association. Under this certification there are 20 SIM card manufacturers globally accredited by GSMA. There are six are from China. Yet there is only one SAS-compliant manufacturer We talk of Numbers & $ ? We always listen to big numbers like "12 operators committing deployments in 2010" and "$1 billion R&D investment required to build LTE products" and more are making frequent headlines. Viewing these numbers in isolation provides only a partial and one-dimensional view of the issues facing the industry and what this means. We talk of Speed in Telecom? JOHANNESBURG South Africa 11-month-old pigeon took one hour and eight minutes to fly the 50 miles from Unlimited IT's offices near Pietermaritzburg to the coastal city of Durban with a data card strapped to its leg. Including downloading, the transfer took two hours, six minutes and 57 seconds — the time it took for only four percent of the data to be transferred using a line provided by Telkom. About CMAI CMAI is an apex business and trade promotion organization, based in India with MOU partners and representatives spread across over 30 Countries with branch offices in Japan, Korea, Singapore, Taiwan and Malaysia. CMAI is integrated telecom and IT association covering all verticals. CMAI is involved in policy formulations with Government and other stake holders for Technology Innovations, Indigenous manufacturing CMAI is developing scientific knowledge and practical means for protecting human ecology and environment from the harmful effects of environmental hazards like e waste, radiation etc. CMAI assists manufacturers to maximize competitiveness in the domestic and international markets. About CMAI With CMAI membership, you gain access, authority, and intelligence designed to help you to: Protect interests when standards and policies are being formulated Engage peers regularly about market challenges or business opportunities Access timely news, information, and market intelligence Expand business to overseas markets efficiently and effectively Gain a competitive advantage through convergence Take the Lead on green initiatives in the ICTE Industry Participate in Indian and global Exhibitions, Seminars, Workshops Where is my cell phone mama.. I want to SMS to God that I have reached safely! THANKS…. www.cmai.asia +91 98 111 29879 FOR LISTENING