Research and Action Agenda for a National Broadband Initiative - Technological Developments 16th April, 2010 New Delhi Ajay Ranjan Mishra Global Head Services Innovations & BD Nokia Siemens Networks 1 Global Services SBD © Nokia Siemens Networks Our common vision: The world connected in 2015 Universal access to information and communication technologies boosts the economic and social development of nations 2 Global Services SBD © Nokia Siemens Networks Universal access requires consumer understanding Affordability Source: Marja-Liisa Viherä (adapted) 3 Global Services SBD © Nokia Siemens Networks Market maturity drives operator focus Internet penetration 2008 (% of population) 100% Differentiation Pressure Index Finland 80% South Korea USA Japan France Australia Size of Mobile UK Hong Kong Broadband Germany Opportunity 60% Poland Qatar 40% Czech Republic Iran Brazil Russia Peru Tunisia Mexico Vietnam Saudi Arabia China 20% Azerbaijan Philippines Thailand Egypt Morocco Pakistan Algeria Sudan India Indonesia South Africa Ghana Nigeria Kenya 0% Mozambique Turkey Urban India Rural India 0% 20% 40% 60% 80% 100% 120% 140% Mobile penetration 2008 (% of population) Today’s strongest opportunities for growth: •Voice for rural population •Mobile broadband for urban dwellers 4 Italy Global Services SBD © Nokia Siemens Networks 160% In India as well, Broadband uptake will be driven by wireless Broadband Market by Subscriptions In India 100 8% 3G (Mobile Broadband) WiMax 6% Fiber Optic (FTTx) xDSL 60 5% Broadband Penetration 4% 40 3% 2% 20 1% 0 0% 2008 2009 2010 2011 2012 2013 2014 3G/HSPA will drive broadband in India 5 Global Services SBD © Nokia Siemens Networks Broadband Penetration Cable and Others 80 Subscriptions ('000) 7% Access CAGR User data rate [Mbps] 1.000 Wireline 100 ADSL2plus 16-20 Mbps 10 ADSL 1-3 Mbps GPON* 100 Mbps VDSL2 25-50 Mbps ~ x2 per year HSDPA* 3.6-7.2 Mbps HSDPA* 1.8 Mbps UMTS* 0,384 Mbps 0,1 Wireless GPRS* 0,075 Mbps 2005 Year of user availability 100% (2x Moore’s Law) 6 Global Services SBD © Nokia Siemens Networks LTE* WiMAX* HSPA MIMO* ADSL 6-8 Mbps 1 0,01 2000 NG-PON* DSM L3 2010 Cell Range gets Shorter at Higher Frequency and with TDD • • WiMAX has shorter cell range due to TDD duplexing and higher frequency Outdoor fixed antennas can be used to improve the link budget for fixed wireless solution Downlink: 1 Mbps Uplink: 64 kbps Suburban indoor 8 x more sites required than with HSPA2100 WiMAX 3400 TDD WiMAX 2500 TDD Uplink Downlink Assumptions: • Suburban area • 50 m BTS antenna • 15 dB indoor loss • 95% location probability • Correction factor -5 dB • 1.5 m terminal antenna height HSPA/LTE2500 FDD HSPA/LTE2100 HSPA/LTE900 0.00 7 Global Services SBD © Nokia Siemens Networks 0.50 1.00 1.50 2.00 km 2.50 3.00 3.50 Cost of Broadband deployment in India • In latest BSNL tender, mobile 3G access network cost per subscriber was depending on area from 110 USD to 120USD. • Whereas, fixed line cost depends on area much more widely. In dense urban area cost is low, but in suburban and rural area cost will be very high. • Low frequency gives wider reach in cell radius and lowers initial investments for mobile broadband. Government should auction 700Mhz band for rural broadband • USO = Universal Service Obligation fee like x% of operator revenue can be used for financing rural digital dividend area network build out. 8 Global Services SBD © Nokia Siemens Networks Optical CAGR x2 in 5 years ~ 1.15 per year Bandwidth Gbit/s 1000 SONET/SDH 40Gbps 100 10 Ethernet 40Gbps SONET/SDH 10Gbps SONET/SDH 2.5Gbps Ethernet 1Gbps 1 Ethernet 10Gbps Ethernet 100Mbps 0.1 0.01 1984 Ethernet 10Mbps 1988 1992 1996 < 2008 based on Source:A.RInck Analysis 2000 2004 2008 Availability Year 15% (1/4th Moore’s Law) 9 Ethernet 100Gbps Global Services SBD © Nokia Siemens Networks 2012 Summary Countries missing out on opportunity to add hundreds of billions to their national revenues Government should auction 700Mhz band for rural broadband Connectivity increasing but utilisation not Affordability is the key factor - we need to work on TCO Key stakeholders need to come together to make this happen. 10 Global Services SBD © Nokia Siemens Networks