ITU-BDT Seminar on Network Evolution
Sofia, Bulgaria
21-24 January, 2003
Business Considerations
for
Migration to IMT-2000
Dr. Thomas Frisanco
Director Marketing
ICM N M B PD
Siemens AG
Germany
ITU-BDT Seminar on Network Evolution
Kiritkumar Lathia, C.Eng., F.I.E.E,
Vice President
Strategic Product Planning
Standards & Fora
Siemens Mobile Communications
Italy
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
1
Example of Business Plan
„ A real example from an Asia-Pacific country
„ Three mobile operators (Champion, Public, Mini)
„ Total population: about 24 million
„ Per capita: USD 3,600 increasing by approx.
4%pa
„ Business model for the life-cycle ( ~ year 2015)
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
2
IMT-2000 standards
CDMA
IMT-DS
Direct
Spread
(UMTS-Japan)
(UMTS-Europe)
IMT-MC
Multi
Carrier
TDMA
IMT-TC
Time
Code
(UMTS-China)
(UMTS-Europe)
W-CDMA
1xRTT
1xEV-DO
HSDPA
1xEV-DV
UTRA-TDD
TD-SCDMA
HSDPA
cdma2000
TDD
FDD
FDMA
IMT-SC
Single
Carrier
IMT-FT
Frequency
Time
(UMTS-USA)
EDGE
DECT
TIA – American
Cingular
ATT-WS
43% US market
Chinese
GERAN
UMTS
core
Source: ITU
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
3
Evolution paths
UMTS
UMTS
PDC
PDC
TD-(S)CDMA
TD-(S)CDMA
HSDPA
HSDPA
GSM
GSM
GPRS
GPRS
TDMA
TDMA
W-CDMA
W-CDMA
3G
EDGE
EDGE
cdma2000
cdma2000
IS-95
IS-95
1xRTT
1xRTT
1xEV-DV
1xEV-DV
1xEV-DO
1xEV-DO
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
4
The real 3G system
Data Rate
HSDPA
5 Mbps
W-CDMA
1xEV-DO
TD-SCDMA
1xEV-DV
3G
500 kbps
GPRS
1xRTT
50 kbps
2G
2001
2003
2007
Time to
market
1xRTT performance comparable to GPRS
1xEV-DO supports data only
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
5
Support of Various Service Combinations
Real 3G
TD-SCDMA
1xRTT 1xEV-DO 1xEV-DV
W-CDMA
Voice activity
Data activity
GPRS
Example 1
High quality
voice call
High speed
web surfing
no
yes
no
no
yes
Example 2
High quality
voice call
(call-back)
Video
conference
no
yes
no
no
yes
Example 3
High quality
voice call
Information
retrieval
yes
yes
yes
no
yes
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
6
IMT-2000 Requirements
„
„
„
„
„
„
„
„
„
Support up to 2 Mbps data rates
Support multimedia services
Support of packet and circuit switched services
Spectrum efficiency and high system capacity
Flexible operating environments (Vehicular, Outdoor-toindoor pedestrian, indoor office)
Improved global roaming due to global
frequency coordination with an IMT-2000
spectrum in 2 GHz range
… but in North America
„ This spectrum was just
Packet data network
auctioned for PCS operators
Quality of Service
„ 2G systems (e.g. PCS) just
Interoperability with 2G networks
started service with large
investments in spectrum and
IS-95 equipment
Æ Need of different 3G migration
strategy
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
7
Mobile Subscriptions:
Year End 2001 – Total and GSM only
Korea
Brazil
France
29‘
Spain
29‘
Other
316‘≅34%
29‘
USA
11‘
12‘
Netherlands
20‘ Turkey
21‘
36‘
45‘
UK
Italy
50‘
53‘
Germany
Japan
67‘
Total
Subscriptions
940‘
≅ 100%
USA
China
Spain
GSM
Subscriptions
624‘
≅ 66%
China
Germany
Taiwan
29‘
France
36‘
UK
45‘
Italy
48‘
128‘
146‘
145‘
53‘
GSM Association forecast = 1 billion for YE2003
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
Source: ICM N M, Status: July 31st, 2002
© Siemens, 2003
8
Business Casing References:
The strength is in Long Term Partnership
Ireland
UK Luxembourg
Germany
Italy
Ukraine
Austria
Bulgaria
Sweden
Russia
Norway
P.R. China
Spain
HongKong
Thailand
Portugal
Venezuela
Ecuador
Colombia
Philippines
Turkey
Algeria
Honduras
Ivory Coast
Brazil
UAE
Kenya
India
Indonesia
Australia
South Africa
GSM Projects
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
UMTS Projects
Sofia, Bulgaria
© Siemens, 2003
9
Business Plan Development:
An integral part of customer relationship
ICM Networks
Marketing
Portfolio
Management
Operator
Business Plans
PD
Portfolio Design
SB
Solution
Building
Market
Assessment
Spectrum
Economics
Network
Economics
DD
Business Plan
Due Diligence
FP
Frequency
Policy
CB
Customer
Benefits
AS
Market Analysis
& Scenarios
PD
Business Plan
Development
IC
Industry
Co-ordination
BI
Business
Impact
CI
Competitor
Intelligence
BC
Budgeting &
Controlling
CS
Customer
Satisfaction
.
CV
Customer
Value Mgmt
AC
Customer Analysis &
Analyst Relations
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
10
Siemens is able to support the Strategy and
Business Plan Development
Various steps from conceiving a corporate vision up to
detailing implementation activities are necessary.
Vision and Concept
•Vision
•Corporate
philosophy
•International alliances
Entry Strategy
•Develop a strategy
- Business units
- Products, Channels,
Segments, Entry
•Regulator
Company build up
Implementation
•Organization
- Process driven
- Customer oriented
•Integrated
processes
•Up-date strategy
•Technology and
network planning
Market Definition
•Assess market
•Understanding
the market
•Positioning
Business Planning
• Build a business case
with const and turnover
estimates
• Budgeting
• Investments
•IT Systems
•Key functions
- Marketing
- Sales
- Customer Care
•Support functions
• Implement the
concept
to build and
develop core
capabilities
•Focus resources
on market
entry date
Integrated project management
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
11
Business Plan Development – Customers benefit
Typical questions to be answered
Contribution of Siemens
• We intend to buy a 2G/3G license.
Could the project be feasible from a
Financial feasibility study
Business Development Process
financial point of view?
• How does market, penetration, ARPU etc.
look like? Can investors expectations be met?
Investors Case
• Is our strategy in line with my financial
expectations?
Development of fully comprehensive
operators business plan
• When do we have to consider technology
migration?
Strategy assessment
• What new services do we need to improve
financial performance?
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
12
Siemens Business Plan Support is modular
The market and revenue simulations are the key modules
of our business plan tool.
Operator Benchmarking
Business Plan Results:
Profitability
Ratios
Business Plan Methodology:
network
Network
planning
Cash Flow
Statement
OPEX
Module
Profit / Loss
Statement
% market
CAPEX
Module
Subscriber
Module
ARPU
ITU-BDT Seminar on Network Evolution
Revenue
Module
21-24 January, 2003
Balance Sheet
Accounting
Module
P&L
RoR
NPV
DSCR
Sofia, Bulgaria
© Siemens, 2003
13
Our services cover all market phases from
late 2G entrant to future IMT-2000 incumbent
Customer Market Phase
New entrant
in delayed market
Investors‘ case
Fully comprehensive
business plan
Stimulate investors
Migration
2G → IMT-2000
Detailed subscriber model
Migration benefits,
operators’ market attractiveness,
competitive churn,
technology churn,
retention mechanisms
Position against “new comers”
“2nd wave UMTS” - Data revenues, applications/solutions
centric, bottom-up scenario modeling
UMTS new entrant
Build key strategic relationships
Supplier/product related incremental
“2nd wave UMTS” - revenues, OPEX, CAPEX
UMTS incumbent Link to product business plans
Evaluate alternative relationships
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
14
Example of Business Plan
„ A real example from an Asia-Pacific country
„ Three mobile operators (Champion, Public, Mini)
„ Total population: about 24 million
„ Per capita: USD 3,600 increasing by approx.
4%pa
„ Business model for the life-cycle ( ~ year 2015)
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
15
Structure of Business Plan model:
The customer (Subscriber) is the KING!
OPEX
Module
CAPEX
Module
Subscriber
Module
Revenue
Module
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Accounting
Module
From market share growth to:
- Reduce Churn
- Increase ARPU
- Increase use of services
- Affordable new services
Considerations:
- Regulations (old & new)
- Purchasing Power (pre-paid)
- GDP and major trade partners
- Virtual Home Environment
Sofia, Bulgaria
© Siemens, 2003
16
Structure of Business Plan model:
The customer (Subscriber) is the KING!
Penetration (%) and ARPU (US$)
60%
50%
26,0
24,2
42,6%
44,8%
47,2%
49,2%
51,0%
55,7%
54,3% 54,9% 55,3% 55,6%
53,5%
52,4%
30
40%
36,7%
40,0% 22,5
21,7
30%
21,2
21,6
35
22,6
23,6
24,5
25,4
26,4
27,3
28,4
• Growth market
29,4
25
20
15
20%
• Max 56%
• ARPU decline
due to market %
• From 2006 ARPU
growth
10
10%
5
0%
0
2002
2003
2004
2005
2006
2007
2008
2009
Penetration
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2010
2011
2012
2013
2014
2015
ARPU
Sofia, Bulgaria
© Siemens, 2003
17
Technology Adoption Rate:
Users define it based on usefulness !
Innovation Adoption Rates (%)
100%
90%
80%
• “Killer” Services
70%
defined by users!
• Ring tones as
60%
50%
killer app.! ($1B)
40%
•SMS failure in US
30%
• Photos (MMS)
20%
• Internet ???
10%
European 2G Penetration
SMS Penetration
GPRS/MMS Penetration
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0%
3G Penetration
Source: Deutsche Bank
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
18
Technology Migration:
The “S” curve
Mobile Technology Split (%)
100%
92,8%
90%
84,6%
96,9%
98,7% 99,6%
Learning curve
Timing / aggressive
Technology churn
80%
Coverage
69,1%
70%
60%
48,0%
50%
40%
27,4%
30%
13,3%
20%
10%
0,3%
0%
2002
2003
2004
1,5%
2005
4,8%
2006
2007
2008
3G Subs
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2013
2014
2015
2G Subs
Sofia, Bulgaria
© Siemens, 2003
19
Subscriber Migration to new Technology:
2G Networks will be with us for a long time!
Total Mobile Subscribers (000)
18.000
16.000
14.000
12.128
14.448
14.848
1.092
15.489
480
15.755
200
Subs services
Competitiveness
7.264
8.854
9.752
11.102
8.854
9.819
10.593
11.200
2G/3G compatibility
ARPU from 2G & 3G
4.469
9.819
6.000
15.998
70
2.294
10.627
8.000
4.000
13.433
11.372
12.000
10.000
12.804
13.978
15.193
14.100
11.546
15.009
15.555
15.928
2013
2014
2015
12.554
9.979
6.714
2.000
3.682
0
2002
2003
34
172
582
2004
2005
2006
1.702
2007
2008
3G Subs
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2G Subs
Sofia, Bulgaria
© Siemens, 2003
20
Distribution of Subscribers per Operators
Total Mobile Subs per Operator (000)
18.000
• Prepaid is norm
16.000
14.000
1.355
12.000
1.588
10.000
1.447
6.000
1.214
3.857
4.139
4.387
4.647
4.948
5.285
5.772
3.783
6.180
6.632
7.027
215
• Duopoly in long
term
7.327
7.554
7.735
7.889
•Market share
depends on
service offerings
• New subscribers
start with 2G
7.032
7.392
7.651
7.978
8.095
6.621
7.839
6.306
2008
2009
2010
2011
2012
2013
2014
2015
4.000
2.000
429
1.535
1.536
1.339
8.000
1.177
784
4.342
4.793
5.189
5.592
5.985
2003
2004
2005
2006
2007
0
2002
Champion
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Public
Mini
Sofia, Bulgaria
© Siemens, 2003
21
2G Subscriber Market Share:
2G Networks will be with us for a long time!
2G Subs per Operator (000)
14.000
• 3G starts to show
from 2007 onwards
12.000
1.536
10.000
1.588
1.447
1.535
1.339
8.000
6.000
1.355
1.214
4.139
4.376
4.569
4.671
4.468
3.999
1.177
3.857
2.935
4.000
2.000
• 2G network will be
phased-out due to
financial
non-viability
3.783
4.342
4.770
5.096
5.286
5.099
784
1.790
4.397
3.152
1.895
0
2002
2003
2004
2005
2006
2007
2008
Champion
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
Public
2010
429
911
954
215
431
447
2011
2012
2013
2014
2015
Mini
Sofia, Bulgaria
© Siemens, 2003
22
Subscriber Market Share:
Mini will disappear (market consolidation)!
3G Subs per Operator (000)
18.000
16.000
14.000
12.000
6.896
10.000
7.365
7.657
7.861
6.116
8.000
4.842
6.000
3.245
4.000
1.773
2.000
0
2002
2003
2004
2005
5.137
7.205
7.644
7.897
8.067
2012
2013
2014
2015
3.469
277
305
816
886
1.909
2006
2007
2008
2009
Champion
ITU-BDT Seminar on Network Evolution
6.439
21-24 January, 2003
2010
2011
Public
Sofia, Bulgaria
© Siemens, 2003
23
3G Subscriber Market:
Migration from 2G to 3G and churn is norm!
3G Market Gross Additions Structure (000)
6.000
3.500
3.077
2.869
3G Gross Additons
993
1.283 2.335
4.000
2.500
550
1.885 1.160
1.341
3.000
1.794
1.086
2.000
748
240
431
411
34
138
0
1.137
163
248
228
2.253
163
1.669
655
124
156
266
244
275
1.270
2.000
1.500
1.709
188
1.000
720
269
344
296
1.040
3.148
2.911 3.056
2.665 612
1.000
• Churn > 2 - 3 year
Technology migration 2G to 3G
5.000
• Tech Migrators
3.000
• Competition in
services / tariff
• New subscribers
start with 2G
500
280
130
538
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Churners within 3G
Retained 2G to 3G Churners
2G to 3G Churners
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
First Mobile Users 3G
Non-Retained 2G to 3G Churners
Sofia, Bulgaria
© Siemens, 2003
24
Champion’s Subscriber Market Segmentation:
Prepaid Residential is key – not post-paid!
Year Average Subscribers Total (000)
9.000
• Prepaid is norm
8.000
7.000
• user control for
telecom expenses
6.000
5.000
4.000
3.000
2.000
1.000
0
2.519
2.916
3.256
3.570
3.873
4.145
4.514
4.844
5.105
5.370
5.470
5.557
5.634
•Cash-flow & bad
debt control
• New subscribers
start with 2G
1.993
1.259
1.341
1.320
1.365
1.442
1.469
1.533
1.575
1.605
1.190
830
975
1.052
1.120
498
569
599
615
631
656
659
630
617
665
682
742
777
798
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Corporate & Business
ITU-BDT Seminar on Network Evolution
Residential Postpaid
21-24 January, 2003
Residential Prepaid
Sofia, Bulgaria
© Siemens, 2003
25
Champion’s 2G Subscriber Market Segmentation:
Early migrators are business post-paid !
Subscriber Segment Split 2G (%)
100%
• Price insensitive
migrate first
90%
80%
70%
60%
62%
64%
•Status symbol
66%
68%
70%
60%
72%
74%
76%
78%
85%
85%
85%
85%
15%
15%
15%
15%
2012
2013
2014
2015
50%
•2G serving bad
“debt rated”
40%
30%
25%
24%
23%
20%
10%
15%
14%
13%
22%
12%
21%
11%
20%
10%
0%
2002
2003
2004
2005
2006
2007
Corporate & Business
ITU-BDT Seminar on Network Evolution
20%
20%
20%
20%
8%
6%
4%
2%
2008
2009
2010
2011
Residential Postpaid
21-24 January, 2003
Residential Prepaid
Sofia, Bulgaria
© Siemens, 2003
26
Champion’s 3G Subscriber Market Segmentation:
Early migrators are business post-paid !
Subscriber Segment Split 3G (%)
100%
90%
• “Rich” pre-paid
migrate first
20%
80%
40%
40%
52%
70%
60%
64%
68%
69%
70%
70%
70%
70%
20%
20%
20%
20%
20%
20%
15%
12%
11%
10%
10%
10%
10%
2009
2010
2011
2012
2013
2014
2015
60%
50%
50%
37%
40%
28%
30%
60%
21%
20%
40%
30%
10%
23%
20%
0%
2002
2003
2004
2005
2006
2007
Corporate & Business
ITU-BDT Seminar on Network Evolution
2008
Residential Postpaid
21-24 January, 2003
Residential Prepaid
Sofia, Bulgaria
© Siemens, 2003
27
Champion’s ARPU:
Budgetary and affordability constrains !
2G (Voice/Data), 3G (Voice/Data) and Blended ARPU (US$/month)
40
• Price competition
keeps ARPU low
35
30
• Other networks
take some of the
telecom budget
27,2
23,1
25
20,6
20
18,9
18,0
16,9
16,3
16,6
2007
2008
2009
18,7
19,5
19,6
19,6
19,8
19,9
2010
2011
2012
2013
2014
2015
15
10
5
0
2002
2003
2004
2005
2006
Blended ARPU
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
28
Champion’s Revenues
Revenues (US$ m) and Data Share of Revenues (%)
35%
2.500
2.000
1.729
1.803
1.860
1.912 1.956
1.569
1.500
1.196
1.113 1.156 1.158 1.162
1.204 1.228
1.315
1.000
30%
• Subscriber growth
keeps revenue
high up to 2006
25%
• 3G revenues from
2006 onwards
20%
• Data revenue
from 5% to +30%
15%
• 3G revenues are
critical post 2007
10%
500
5%
0%
0
2002
2003
2004
2005
2006
3G Revenues
ITU-BDT Seminar on Network Evolution
2007
2008
2009
2G Revenues
21-24 January, 2003
2010
2011
2012
2013
2014
2015
Data Share of Revenues
Sofia, Bulgaria
© Siemens, 2003
29
Champion’s blended ARPU (ARPU / services)
ARPU
Blended
Blended
ARPU
(US$)
30
25
“Dip in the middle”:
UMTS
3G
Launch
Launch 1.) Still few UMTS
UMTS
Success
Success
3G Subs
Subs 3G
2.) “Applications Bottleneck”
• Dips due:
• lower ARPU from
2G and transition
20
• 3G services have
“launch” problems
15
• Interoperability
10
• retention of “high
value” customers
5
0
2002
2003
2004
2005
2006
Voice
UMS
Video Phone/ Conferencing
Fleet Management
ITU-BDT Seminar on Network Evolution
2007
2008
2009
SMS
Mobile office
Internet
Gaming
21-24 January, 2003
2010
2011
2012
2013
2014
2015
EMS, MMS, IMS
File Transfer, Intranet
Customised Content / Portal
Sports (AFL)
Sofia, Bulgaria
© Siemens, 2003
30
Champion’s OPEX breakdown
Operating Costs (US$ m)
1.200
1.032
1.056
130
134
137
234
242
249
254
180
186
191
196
173
376
415
433
446
459
470
2010
2011
2012
2013
2014
2015
933
1.000
847
800
600
400
200
601
624
78
81
145
150
111
116
650
663
625
627
646
93
93
96
84
86
162
163
167
156
160
127
128
132
132
123
710
92
121
110
225
974
126
1.004
204
171
157
132
267
277
289
290
287
289
295
316
2002
2003
2004
2005
2006
2007
2008
2009
• Attention to IPR
costs for network
operations !!!
• IPR costs for
“contents” not
included
•OPEX dip due to
“stable-state” 3G
network
•OPEX broadly in
line with network
investments
0
Total CoGS
Total Network Operating Costs
Total General & Administrative Costs
Total Sales & Marketing Costs
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
31
Champion’s CAPEX breakdown
Network Investment (US$ m)
450
• Peaks due:
400
• initial 3G launch
350
• capacity increase
300
• Interoperability
250
200
150
100
50
0
2002
2003
2004
2005
ITU-BDT Seminar on Network Evolution
2006
2007
2008
2009
21-24 January, 2003
2010
2011
2012
2013
2014
Sofia, Bulgaria
2015
© Siemens, 2003
32
Champion’s Revenues & cash-flow breakdown
Operating Cash Flow and Cash Flow After Investing (US$ m)
1.000
900
800
700
600
500
400
300
200
100
0
2002
2003
2004
2005
2006
2007
2008
Operating Cash Flow
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2013
2014
2015
Cash Flow After Investing
Sofia, Bulgaria
© Siemens, 2003
33
Champion’s future without 3G - # of subscribers
Year Average Subscribers (000)
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
2002
2003
2004
2005
2006
2007
2008
Subscribers with 3G
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2013
2014
2015
Subscribers without 3G
Sofia, Bulgaria
© Siemens, 2003
34
Champion’s future without 3G - revenue
Revenues (US$ m)
2.500
2.000
1.500
1.000
500
0
2002
2003
2004
2005
2006
2007
2008
Revenues with 3G
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2013
2014
2015
Revenues without 3G
Sofia, Bulgaria
© Siemens, 2003
35
Champion’s future without 3G – Cash flow
Cash Flow After Investing (US$ m)
1.000
900
800
700
600
500
400
300
200
100
0
2002
2003
2004
2005
2006
2007
2008
Cash Flow After Investing with 3G
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
2009
2010
2011
2012
2013
2014
2015
Cash Flow After Investing without 3G
Sofia, Bulgaria
© Siemens, 2003
36
Conclusion of Business Plan
„ Users do not care about technology but services!
„ 3G investments is a must for “Champion”
„ Market consolidation and “phase-out” of Mini
„ Already we see that small operators are leaving
market in Europe
„ Market consolidation will happen in USA as well
„ Business model for the life-cycle ( ~ year 2015) and
network operation IPR costs can dramatically impact the
scenario negatively!
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
37
ITU-BDT Seminar on Network Evolution
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
38
Business Considerations for
Migration to IMT-2000
Thank You
very much!
Dr. Thomas Frisanco
Director Marketing
ICM N M B PD
Siemens AG
Germany
ITU-BDT Seminar on Network Evolution
Kiritkumar Lathia, C.Eng., F.I.E.E,
Vice President
Strategic Product Planning
Standards & Fora
Siemens Mobile Communications
Italy
21-24 January, 2003
Sofia, Bulgaria
© Siemens, 2003
39