12/4/2003
Launch of the First Russian
IMT-MC Network in the 450 MHz Band
Konstantin Kolomensky
Network Development Director
Delta Telecom, S.-Petersburg
DELTA Telecom’s short history
DELTA was the first cellular operator in Russia in
1991
l 1G analog standard NMT 450 (NOKIA’s DX200 and
BTS)
l By December 2002 DELTA had 100 000 NMTsubscribers
l Cheap rate plans without monthly fee (because of
strict competition with GSM operators)
l
– ARPU = 10 USD
Like other NMT -operators we have been thinking
about digitalization (GSM 400 or CDMA 450 or … )
l Finally in 2000 IMT-MC 450 has been chosen as the
technology for migrating to digital network
l
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12/4/2003
Situation before the launch of
IMT-MC 450 network
l
Russian Ministry of Telecommunications issued the
Order about Federal status of IMT-MC 450 standard
l
All 64 NMT-operators are willing to migrate to
digital networks
l
DELTA Telecom was the first operator in Russia
which rolled-out and launched IMT-MC 450
network
– 2-nd in the world (the first one has been built by Telemobil
in Romania)
– Not interrupting NMT-service
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Market by the Moment of Commercial
Launch (December 2002)
Highly competitive environment:
l
Two national GSM operators – Megafon and MTS
(penetration >40%):
– 2 mln mobile subscribers
– Competitive advantages in
l
coverage,
l roaming,
l variety of handset models
l
2 more operators – Vympelkom and Tele2 – had been
building networks (they have started operation by now)
l Currently - 4 GSM operators in St.Petersburg
Total subscriber base is 2,7 mln. subscribers
Penetration > 50%
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12/4/2003
Strategy of Entering the Market (1)
l
DELTA or new trademark ?
– DELTA is associated with the old analog technology
– New name – SkyLink and new logo
– Positioning SkyLink as network based on the newest
technology
– Orientation to profitable and heavy speaking business
subscribers willing to use data transmission (HSPD)
l
Service package offer:
– «unlimited voice + affordable data (HSPD)»
– fixed monthly fee (flat rate)
– unique offer at St. Petersburg market (GSM operators offer
much more expensive unlimited voice tariffs and limited
speed data services)
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5
IMT-MC-450 Network Launch
in St. Petersburg
l
SkyLink (IMT-MC-450) was launched on
December, 16 2002
l
Initial coverage area - St. Petersburg
and its suburbs (60 BTS)
l
Simultaneous operation of two networks
– analogous NMT-450
– digital IMT-MC 450 in the same NMT
frequency band (4.5 MHz)
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12/4/2003
IMT-MC 450 spectrum aspects
for NMT-operators
BTS TX band
Guard
band
Carrier A
463.975 MHz
Carrier B
465.225 MHz
Carrier C
466.475 MHz
Guard
band
0.35
MHz
0.4
MHz
160 ch.
260 ch.
210 ch.
1.25 MHz
3.75 MHz
465.85 MHz
463 ?Hz
4.5 ?Hz
465.65 ?Hz
467.1 ?Hz
467.3 ?Hz
467.5 ?Hz
NMT-450i channels:
107…173; 307…372.
Clearing spectrum of (1.25 MHz + guard bands) from the NMT band
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Initial Coverage of
IMT-MC 450 Network
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12/4/2003
Expansion of IMT-MC-450
Network in St. Petersburg
l
By June 2003 the network was expanded:
– Coverage area – 30% of Leningrad region
– Amount of BTS – 98 BTS (58 BTS in the city)
l
By December 2003 total amount of BTS = 115 BTS (75 BTS in
St. Petersburg)
l
New contract with Lucent Technologies on MSC expansion
and BTS supply was signed in September 2003
–
l
In January, total amount of BTS will be increased up to 143
(103 BS– in the city)
Second carrier (2x) is expected to be used by spring 2004 that
will almost double the network capacity in the city
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IMT-MC 450
Coverage
(June 2003)
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12/4/2003
Licensed territory of Delta Telecom
and affiliated companies
- 6 regions of Russian Federation
- area > 500 000 km 2
- population >10 million
At present CDMA network covers St.Petersburg and
Leningrad oblast (region)
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Equipment of IMT-MC-450 Network
in St.Petersburg at the Moment of Launch
l
Infrastructure equipment:
– MSC and BTS produced by
LUCENT TECHNOLOGIES
l
Subscriber equipment:
– S200 (Synertek)
– HX- 510B (Hyundai Curitel)
l
Short Message Center:
– Logica SMSC
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12/4/2003
Services (1)
From the beginning:
l
Voice services
l
SMS-messaging within SKYLINK network as well as
with GSM networks in St. Petersburg
l
IP telephony for International calls
l
Possibility to provide subscribers who get services
in both (NMT and IMT-MC) networks with:
– single account
– similar or even the same number
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Services (2)
l Internet access with the rate up to 153 kbit/s
l Access to mobile portal - SkyMobile
– with mobile phone or PDA /PC
– Skymobile portal – regularly updated information:
“my e-mail”,
“my account ”,
“my services”,
news,
currency rates,
weather forecast,
TV program,
search of nearby restaurants, drugstore,
gas stations, etc.
airline ticket info and booking,
useful links,
etc.
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Services (3)
l Promotion of «Mobile office» service
– Possibility of high-speed mobile access to corporate network from
any point within radio-coverage area (VPN)
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Services (4)
Promotion of services connected with data transmission to PDA
PDA portal
• Photo-album
• Books
• Useful links
• Games
•…
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Services (5)
• Corporate Internet access
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Services (6)
• Video-conference between fixed and mobile subscriber
as well as between mobile and mobile subscriber
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Services (7)
• Remote video- monitoring on demand:
any object equipped with the web-camera, terminal and PC
(summer house, apartment, car, etc.)
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Roaming issues
l May, 30 2003 - the first commercial roaming between
Delta Telecom and Belcel (Belarus), supplier - Huawei
l November, 1 2003 – roaming with Moscow Cellular
Company (MCC), supplier – Lucent Technologies
l November 2003 – testing of roaming with Ekaterinburg
(UralWestkom), supplier – Nortel
l R- UIM (SIM) roaming with GSM operators is planned to
be established in 2004
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12/4/2003
Results of Commercial Operation (1)
RATE PLANS
Flat rates with unlimited amount of local voice plus some
amount of data (HSPD) were introduced due to the strong
competition with GSM-operators.
«Classic» rate plans:
Number
Monthly fee
HSPD limit
Status
________________________________________________________________________________________________________________________________ _
1.
2.
3.
4.
5.
7-digits
7-digits
7-digits
11-digits
11-digits
90 $
72 $
60 $
60 $
50 $
75 Mb
75 Mb
30 Mb
30 Mb
30 Mb
opened
closed
closed
opened
closed
– Total duration of talk is not limited (MoU > 1300 min per user)
– Price for HSPD which exceeds the limit = 0.3 $/ Mb
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Results of Commercial Operation (2)
Other group of tariffs:
«Manager» rate plans:
Number
Monthly
fee
Voice
limit
HSPD
limit
_________________________________________________________________________________________________________________________________
“Senior manager”
7-digits
60 $
400
40 Mb
“Manager”
11-digits
30 $
300
30 Mb
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Price for HSPD which exceeds the limit - 0.3 $/ Mb
Cost of minute beyond the limit – 0.10 $/min
Unlimited MS-MS voice traffic
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12/4/2003
Results of Commercial Operation (3)
l
Voice communication brings main income so far
– Data < 5%
l
Most subscribers choose the most expensive rate
plan with 7-digit number:
– 95% subscribers at first
– >75% subscribers at present
l
64% of subscribers use HSPD:
– 12% of them exceed fixed limit (30 Mb) and pay for HSPD
additionally ~ 16$/month.
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Results of Commercial Operation (4)
+5,0%
INTERNATIONAL TRAFFIC, NMT+IMT_MC (incl. IP)
+33,0%
IP
?? IP
+38,3%
-0,5%
????? ??, ??????, ???. IP
+18,3%
+11,2%
+33,0%
+30,9%
+56,3%
-6,1%
+44,3%
+26,3%
+16,1%
-15,8%
-8,6%
+3,4%
+5,7%
+21,7%
-3,2%
-32,0%
+59,2%
-3,0%
-33,0%
+9,0%
+5,8%
+89,1%
+45,9%
+0,0%
-30,0%
-12,8%
+27,8%
+53,3%
+15,6%
+9,7%
-14,4%
+16,6%
+42,6%
+12,0%
-8,1%
-25,4%
+25,7%
-1,9%
+8,4%
-34,9%
+9,8%
-52,5%
+45,5%
+49,0% +125,4%
+35,4%
+53,0%
-9,5%
-21,1%
-10,0%
+19,1%
+46,3% +19,5%
???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.02 ???.03 ???.03 ???.03 ???.03 ???.03 ???.03 ???.03 ???.03
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12/4/2003
Results of Commercial Operation (5)
????? :: ??????? ???????? :: ???? ::
l
l
l
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MS
?????? :: ??????? ???????? ::
NMT
IMT-MC
MOU
60 min
1315 min
ARPU
10 $
67 $
SoftHandOff
1) Voice traffic distribution (primary and secondary traffic)
Forward
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Reverse
2) Data traffic distribution (BH is shifted to night, there are almost no
interruption during nights)
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Results of Commercial Operation (6)
NMT subscriber base decreases slightly
(1%/month)
– NMT subscriber base – 80 000 by December 2003
– Less than 1% of subscribers moved from NMT network to IMT-MC
one (different levels of market, almost no promotions, expensive
terminals)
IMT-MC subscriber base – 40 000 subscribers
Total NMT+IMT-MC subscriber base - 120 000
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12/4/2003
IMT-MC-450 Development (1)
In April 2003 income from IMT-MC network
exceeded income from NMT network
l In September incomes from IMT-MC and NMT
networks ratio amounted to 3:1 respectively
Revenue
l
IMT-MC
NMT
Dec'02
Jan'02
Feb'03
Mar'03
Apr'03
May'03
NMT Revenue
Jun'03
Jul'03
Aug'03
Sep'03
IMT-MC Revenue
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IMT-MC-450 Development (2)
l
By the end of the year it is expected to have about
50 000 subscribers
l
In November IMT-MC-450 network in Moscow
(???, OJSC) is entering the market under SKYLINK
trademark
– Coordinated marketing policy
– By early 2004 SKYLINK network will cover territory with more
than 25 million residents
l
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l
l
l
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Moscow and Moscow region
S.-Petersburg and Leningrad region
Novgorod region
Pskov region
Republic of Karelia
Murmansk region
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12/4/2003
IMT-MC-450 Development (3)
l Business plan for 2004 :
– More than 3 times increase of subscriber base
l Up to 110…150 thousand subs
– Leningrad region coverage (better than NMT)
– Network segments in the regions
l Murmansk
l Novgorod
l Pskov
l Karelia (Petrozavodsk)
– network capacity increase
l due to the use of the 2nd carrier as the most economic way of
capacity increase (decreasing quantity of NMT channels and
introducing the new NMT frequency plan)
l 25 new BTS in S.-Petersburg
l EV- DO tests
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Strategy of Mobile Phones
Market Development
l Poor choice of handsets is an important competitive
disadvantage for IMT- MC 450
l Recently situation at the market of mobile terminals
manufacturers has being significantly changed
– New model Curitel HX-525B is being tested:
l color display
l Polyphone melodies
l R-UIM card
– New model Huawei ETS-668 is being tested:
l Polyphone melodies
l R-UIM card
– Both models have been certified in Russia
– Other manufacturers are going to launch their models
(Huawei, ZTE, AnyData, Ubiquam, Compal, Giga – more than
10 manufacturers)
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12/4/2003
Conclusion
l
SkyLink and other deployed IMT-MC 450 networks
proved to be spectrum efficient and have
–
–
–
–
–
large coverage,
large capacity,
good voice quality,
low average transmitted power,
sufficient data speed.
SkyLink proved to be a successful business case
l Two main cities in Russia have been already
covered with IMT-MC 450 (SkyLink) services
l
– about 20 licenses have been already issued for other NMT-
operators
IMT-MC 450 Infrastructure is available from several
vendors
l Range of terminals are going to be significantly
increased
l
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Thank you for your attention!
Konstantin Kolomensky
Network Development Director
Delta Telecom,
KKolomensky@deltatel.ru
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