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Microsoft PowerPoint - BBforAll_Bangladesh_FINAL_sending.ppt ... Microsoft PowerPoint - BBforAll_Bangladesh_FINAL_sending.ppt ... Presentation Transcript

  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Agenda Content Speakers Welcome Address Ricardo Tavares, GSMA Inaugural speech by the Chief Guest, the Honorable Chairman Major General Manzurul Alam (Retd), BTRC Connecting Bangladesh Oddvar Hesjedal, Grameenphone Reassessing Bangladesh s Regulatory Road Map: Bangladesh’s Rob Nicholls, Gilbert + Tobin The Impact of Mobile Broadband TEA BREAK Dr. Mohammad Mahbubur Rahman (Phd.), ( ) Opening speech for the Working Session by the Chief Guest Ministry of Post & Telecommunications Operator Perspective – Developing a Business Case for your Market Supun Weerasinghe, Dialog Mobile – Sri Lanka Broadband for All using HSPA Martin Bäckström, Ericsson Affordable 3G devices Bimal Dayal, Qualcomm India and South Asia Interactive audience discussion panel - Speakers plus operator panel: • Aktel • Bangalink • Grameenphone © GSM Association 2007 • Warid
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • A Global Perspective HSPA delivering Mobile Broadband today g y Ricardo Tavares Se o ce es de o ub c o cy Senior Vice President for Public Policy GSM Association Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • The GSM Family – Delivering on Promises HSPA Evolved Standardization securing in 2008 evolution track HSUPA in 2008 Source: Wireless Intelligence, September, 2008 HSDPA in 2005 HSPA Evolved EDGE in 2003 28/40Mbps HSPA 3G i 2001 in <14.4Mbps WCDMA GPRS in 2000 384kbps GSM First call made in 1991 HSPA: 55 million subscribers GSM 40kbps 3G WCDMA: 297 million subscribers 2G GSM: 3.3 billion subscribers © GSM Association 2007
  • Connecting beyond the grid in India 1.6 bn people living off-grid today and 1bn people with unreliable supply Future mobile subscriber growth will be heavily dependant on the off-grid y p g population Diesel generators used today but are costly to run and have an environmental impact Green power (wind, solar etc) is the solution GSMA Development Fund initiative to catalyse uptake of “Green Energy” for BTSs through major programme in 2008 © GSM Association 2007
  • GSMA working to connect Bangladesh Working with mobile operators to accelerate mobile solutions for people living on less than $2 per day Connectivity initiative aims to bring affordable GSM services to rural communities and areas previously unconnected Use of enhanced GSM networks to bring Internet access to computers in fixed booths run by local entrepreneurs Assists operators in identifying new opportunities, opportunities providing best practice and scaling projects from pilot to full rollout Rolled out Mobile Broadband Community Internet Centres in Bangladesh with Grameenphone © GSM Association 2007
  • Universalising Mobile Broadband Residential Personal Urban freedom Business Personal Government efficiency Students Communities, Social interaction Entertainment, user Rural generated content Farmers Broadband Penetration Villages g Industrial growth (GDP and jobs) Industrial Efficient Construction organization Business Bottom of the opportunities pyramid Sustainable society © GSM Association 2007
  • Mobile Broadband is a Big Challenge Source: ITU, GlobalComms, Wireless Intelligence Bangladesh needs to improve its Mobile and Broadband penetration to reduce the digital divide and diversify its economy. © GSM Association 2007
  • Conclusion The technology for mass market Mobile Broadband is here- HSPA Connecting the bottom of the pyramid is an achievable goal Licensing of 3G in 2.1GHz is key for Bangladesh in the next g y g three months Regulation should focus on promoting Mobile Broadband and avoiding micro-regulation, such as sudden price regulation th t idi i l ti h dd i l ti that discourages investments due to uncertainty Cap ta s sca ce t e cu e t e Capital is scarce in the current environment—but Mobile o e t but ob e Broadband will be a major focus of investments, provided that the regulatory environment is right © GSM Association 2007
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Inaugural Speech by the Chief Guest y Major General Manzurul Alam (Retd) Chairman Bangladesh T l B l d h Telecommunications R i ti Regulatory C l t Commission (BTRC) i i Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Connecting Bangladesh GSMA Conference Dhaka, November 12, 2008 Oddvar Hesjedal CEO Grameenphone
  • Bangladesh is already connected! 5 mill mobile 0.6 mill 164 Int rn t Internet fixed Service Internet Providers users
  • A lot can be done with today’s Internet connection…. Social networking E Mail Educational Institutions News Images Game Downloads Knowledge Hub Video/TV Job Hunting Music Web Bazaar WAP - Mobile Search Engines Web tool support Sports - Cricket Chatting Advertising N Ad i i Network k Stock Market S k M k Blogging WEBSITE TYPE TOP 100 SITES Global 58 Local 26 Indian 10 Unknown 6 Grand Total G d T t l 100 Source: GP analysis of data from www.alexa.com
  • The challenges are speed, capacity… …and risk capital…
  • Huge Economic Impact of Mobile Industry in Bangladesh Mobile penetration 35.0% 30.0% 25.0% Penetration 20.0% 20 0% 15.0% 10.0% 5.0% 0.0% Q 1'01 Q 3'01 2 Q 1'02 Q 3'02 2 Q 1'03 3 Q 3'03 3 Q 1'04 4 Q 3'04 4 Q 1'05 5 Q 3'05 5 Q 1'06 6 Q 3'06 6 Q 1'07 7 Q 2'07 7 Q 3'07 7 Q 4'07 7 Q 1'08 8 Q 2'08 8 Q 3'08 8 Year Employment Impact Source: Deloitte 2008 120,000 100,000 80,000 60,000 60 000 40,000 20,000 0 2004 2005 2006 2007 Direct Indirect Multiplier
  • Will Broadband have the same impact? 5000 Mill. 4500 subs 4000 3500 3000 2500 2000 1500 1000 500 Mobile voice Fixed BB 0 2000 2002 2004 2006 2008 2010
  • What can Broadband bring? Health Public Education Business services information
  • …and JOY !!
  • Fixed Internet activities 2007 Source: Bangladesh Market Insight 2007, by Browse the Internet E-mails Instant messaging/chat Browse the Internet@work Music/movies Job opportunities Online games g Work/business e-mails Phone calls Internet communities Instant messaging/chat for work Internet banking 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Bangladesh - urban Bangladesh - rural
  • Challenge: The Bangladesh Chimney Effect Remember local content challenge 371 USD/Mbps pr month for IIG m 175 161 17 10 Bangladesh Malaysia (DiGi) India (Tata) Central East Telenor Nordic (GP) Europe
  • Challenge: Expensive Network Infrastructure BS BS RESIDENTIAL IP backbone BUSINESS National & international Internet
  • Challenge: Revenues don’t match cost base One PC user - 10000 times more traffic per month than a basic phone user
  • Challenge: Frequency capacity 2x60 MHz for 3G Too many operators in i 3G?
  • Can Bangladesh succeed in bringing Internet to all ? Bangladesh 0% Pakistan 0% Ukraine 1% India 5% Thailand 7% Russia 10% Serbia 10% Montenegro 10% Malaysia 17% Hungary 30% Sweden 64% Norway 70% Denmark 75%
  • Collaboration and joint efforts are needed ICT and Broadband Policy of Bangladesh Cost efficient Cost-efficient Internet Services supporting social and broadband development, exports and infrastructure knowledge industries
  • The road to Success of Broadband Bangladesh • Competence • Competition • Collaboration • Predictable regulations • National Content and Internet services • Policy enabling profitable business cases • Incentives to provide rural area coverage
  • Yes, We Can
  • Thank you
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Reassessing Bangladesh’s Regulatory Road Map Bangladesh s The Impact of Mobile Broadband Rob Nicholls Consultant November 2008 N b
  • Agenda g • The Regulatory Roadmap • Regulatory issues in HSPA – Spectrum – Li ht h d d approach Light-handed h • QoS issues • International capacity and connectivity • Conclusions 2304510_2.PPT | October 2008 page | 33
  • The Regulatory Roadmap g y p • Overhauling spectrum management • Restructuring taxation for growth • Licensing multiple gateway operators • Reforming interconnection arrangements • Corporatisation and privatisation of the BTTB • Strengthening regulatory capacity 2304510_2.PPT | October 2008 page | 34
  • Regulatory issues in HSPA g y • Spectrum – the life blood of communications • Best practice solution is to allocate sufficient spectrum to p p existing operators to allow them to expand from voice/GPRS to HSPA: – efficient outcome as investment in infrastructure already substantially made – licences can be allocated without a complex procedure and compliant with WTO processes – operators increase backhaul capacity to meet expected demand – rapid social outcomes – potential national multi-operator competing services 2304510_2.PPT | October 2008 page | 35
  • Regulatory issues in HSPA g y • No regulatory intervention works best to encourage investment: – only fix the problem if there is a problem – allow devices to be imported without hindrance – encourage B Bangla content but let the market solve the l t t b t l t th k t l th issues – major investments require regulatory ce ta ty ajo est e ts equ e egu ato y certainty • Regulation of service not technology • Need to have voice regulatory settings correct as a basis for growth – e g international voice settlement regime e.g. 2304510_2.PPT | October 2008 page | 36
  • QoS issues • New quality of service issues arise for high speed packet switched services: – Latency – Jitter – Packet loss – Contention – Availability • Different services have different QoS issues • QoS management becomes a regulatory issue in broadband 2304510_2.PPT | October 2008 page | 37
  • Different services have different QoS issues Bandwidth Latency Jitter Loss Multimedia Medium Important Important Moderate Interactive Low Important Moderate Important Data Transfer D f High i h Unimportant i Unimportant i Moderate d Web browsing High Unimportant Unimportant Moderate 2304510_2.PPT | October 2008 page | 38
  • Regulation of international capacity g p y • QoS issue can be managed in the HSPA/GPRS network if there is sufficient spectrum and sufficient backhaul: p – External factors are the issues – In-country latency/jitter/packet loss at the IX – C t ti and packet l Contention d k t loss i th i t in the international capacity ti l it (fibre) – Satellite and VSAT a e p ob e at c for b oadba d Sate te a d S are problematic o broadband services (latency and availability) • Need to scale to ensure that the user experience encourages adoption 2304510_2.PPT | October 2008 page | 39
  • Regulation of international capacity g p y • International access to the global internet is key to p providing the benefits of universal broadband ( terms of g (in GDP growth and global competitiveness) • This access needs to be available at globally competitive prices in order to ensure that the benefits can be enjoyed by Bangladesh and Bangladeshis • Throughput per user per month can be used to assist dimensioning of international capacity (leads to adoption of f ( f DWDM in many places for international capacity) 2304510_2.PPT | October 2008 page | 40
  • Conclusions • Some of the Regulatory Roadmap issues are still to be p y addressed and this could constrain HSPA deployment • The regulatory framework around HSPA needs to be very light-handed in order to encourage: – the significant investment required by the operators – the adoption of the services by consumers • The need for spectrum to facilitate national broadband access is key • International bandwidth at globally competitive cost-based pricing is a vital input to successful deployment of HSPA 2304510_2.PPT | October 2008 page | 41
  • Reassessing Bangladesh’s Regulatory Road Map Bangladesh s The Impact of Mobile Broadband Rob Nicholls Consultant October O t b 2008
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Agenda Content Speakers Opening speech for the Working Session by the Dr. Mohammad Mahbubur Rahman (Phd.), Chief G Chi f Guest t Ministry f P t T l Mi i t of Post & Telecommunications i ti Operator Perspective – Supun Weerasinghe, Dialog Mobile – Sri Lanka Developing a Business Case for your Market Broadband for All using HSPA Martin Bäckström, Ericsson Affordable 3G devices Bimal Dayal, Qualcomm India and South Asia Interactive audience discussion panel - Speakers plus operator panel: • Aktel • Bangalink • Grameenphone • Warid © GSM Association 2007
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Agenda Content Speakers Opening speech for the Working Session by Dr. Mohammad Mahbubur Rahman (Phd.), the Chief Guest Ministry of Post & Telecommunications Operator Perspective – Supun Weerasinghe, Dialog Mobile – Sri Weerasinghe Developing a Business Case for your Market Lanka Broadband for All using HSPA Martin Bäckström, Ericsson Bimal Dayal, Qualcomm India and South Affordable 3G devices Asia Interactive audience discussion panel - Speakers plus operator panel: • Aktel • Bangalink • Grameenphone • Warid © GSM Association 2007
  • Opening Speech for the Working Session by the Chief Guest Dr. Mohammad Mahbubur Rahman (Phd.), Secretary Ministry of Post & Telecommunications Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Broadband for All using HSPA Martin Backstrom VP/Networks
  • Mobile Broadband Market Technology and evolution Business considerations
  • Mobile traffic, voice and data Traffic growth 2006-2013 New revenue streams: Subscriber traffic in GSM/CDMA/WCDMA/HSPA/LTE 10 – Mobile Handheld data usage E.g. Iphone – Mobile PC data usage g 8 E.g. USB modems Yearly Exabytes Complement to voice and SMS 6 revenues E 4 Mobile PC 2 Mobile Handheld Mobile Voice 0 2006 2007 2008 2009 2010 2011 2012 2013 DVB-H, Mobile WiMax and WiFi traffic not included Source: Internal Ericsson © Ericsson AB 2008 Commercial in confidence 53 2008-09-17
  • Mobile Broadband targets all segments Mobile Broadband Mobile Broadband Fixed broadband WiFi © Ericsson AB 2008 Commercial in confidence 54 2008-09-17
  • HSPA world map 207 commercial HSPA networks i l t k Commercial HSPA networks C i l t k HSPA network launch commitments Source: GSA – Global mobile Suppliers Association: July, 2008 © Ericsson AB 2008 Commercial in confidence 55 2008-09-17
  • 104 Ericsson HSPA networks In commercial operation 2005 Movistar-Spain Méditel-Morocco IIJ Mobile-Japan MVNO World’s first: Bite-Latvia TeliaSonera-Finland Telcel-Mexico AT&T-USA Bravocom-Estonia MVNO TDC Mobil-Denmark Claro-Honduras 2006 Dialog-Sri Lanka Personal-Argentina Nucleo-Paraguay Mobilkom-Austria T-Mobil-Slovak Republic S Etisalat Misr-Egypt TIM-Brazil 3-Italy NTT DoCoMo-Japan SingTel-Singapore Brasil Telecom-Brazil Partner-Israel Excelcomindo-Indonesia Vodafone-Egypt T-Mobile-USA Swisscom-Switzerland Maxis-Malaysia TeliaSonera-Sweden Bhutan Telecom-Bhutan Mobiltel-Bulgaria Far East Tone-Taiwan CTM-Macau DST-Brunei Vodafone-Germany PTC-Poland Promonte-Montenegro CYTA-Cyprus MTN-South Africa Softbank Mobile-Japan T-Mobil-Montenegro U-Mobile-Malaysia Vodafone-Portugal Telstra-Australia Movistar-Mexico MTS-Russia Optimus-Portugal KPN-Netherlands Movistar-Argentina Geocell-Georgia TMN-Portugal Wataniya-Kuwait Movistar-Uruguay EMT-Estonia Polkomtel-Poland O2-Ireland Vipnet-Croatia AT&T-Puerto Rico m:tel-Montenegro Elisa-Finland Rogers-Canada Unitel-Angola Vodafone-Romania 3-Sweden Siminn-Iceland T-Mobile-Hungary 3-Australia TeleNor-Norway TIM-Italy 3-Denmark Indosat-Indonesia Al Jawal-Saudi Arabia Satelindo-Indonesia Wind-Italy Cellcom-Israel Sunrise-Switzerland Claro-Brazil Smartone-Hong Kong Entel PCS-Chile Bouygues-France Cosmote-Greece Mobitel-Slovenia Telemig Celular-Brazil Bite-Lithuania Telekom Srbija-Serbia Elisa UMTS 900-Finland Vodafone-UK 2007 Batelco-Bahrain Amena-Spain DNA-Finland Nawras-Oman Mobily-Saudi Arabia y Telenor-Serbia g MTN-Nigeria One-Austria eMobile-Japan Tango-Luxembourg Vodafone-Spain Tele2-Sweden 2008 Elisa-Estonia Telkomsel-Indonesia Elisa UMTS 900-Estonia Vodafone-Netherlands Pannon-Hungary Claro-El Salvador Source: Ericsson, August, 2008 © Ericsson AB 2008 Commercial in confidence 56 2008-09-17
  • Ericsson The leader in HSPA Launched networks L h d t k Ericsson World HSPA 104 (50%) 207 HSPA 7.2 Mbps p 37 (67%)) ( 55 HSPA on uplink 35 (69%) 51 All continents Frequency bands N. America Europe Asia 2100 850 17/2100 S. America Africa Australia 900 1900 17/1800 Source: GSA – Global mobile Suppliers Association and Ericsson: July/August, 2008 © Ericsson AB 2008 Commercial in confidence 57 2008-09-17
  • HSPA subscribers 60,000,000 50,000,000 49.6m 40,000,000 30,000,000 33.3m 20,000,000 21.2m 10,000,000 10 000 000 12.7m 6.9m 3.5m 0 Dec 2006 Mar 2007 Jun 2007 Sep 2007 Dec 2007 Mar 2008 Source: © Ericsson AB 2008 Commercial in confidence 58 2008-09-17
  • HSPA will drive mobile broadband ~70% market share 2012 1.3 billion mobile broadband subscriptions 2012 HSPA 67% EV-DO 22% LTE 4% Mobile WiMAX 4% Other (e g Flash OFDM UMTS TDD, iB rst) 3% (e.g. Flash-OFDM,UMTS TDD iBurst) Source: Strategy Analytics & Ericsson internal > 800 HSPA devices launched, economy of scale advantage © Ericsson AB 2008 Commercial in confidence 59 2008-09-17
  • 804 HSPA enabled devices From over 129 suppliers 384 HSPA phones, media players, camera (~50%) p , p y , ( ) 340 PC with embedded HSPA, PC cards, USB modems (~40%) 73 wireless routers (~10%) Source: GSA – Global mobile Suppliers Association: Sep, 2008 © Ericsson AB 2008 Commercial in confidence 60 2008-09-17
  • Mobile broadband: 2-3.6 Mbps for M bil b db d 2 3 6 Mb f 114.000-204.000 IDR per month © Ericsson AB 2008 Commercial in confidence 61 2008-09-17
  • Evolution of SingTel mobile network Ericsson was awarded contract May 16th HSPA 5.7 Mbps in UL and 14.4 in DL island wide – Discussions to include 21 Mbps in DL All IP transport RBS, RNC and PS CN RBS – Fibre all the way out to the RBS – Upgrade to FE from 2 E1-7 E1 today Expansion of PS CN capacity d i E i f it driven b b db d uptake by broadband t k 3G Direct Tunnel Discussions about HSPA QoS management for 2009 http://home.singtel.com/news_centre/news_releases/2008_05_16.asp Strong growth of voice and wireless broadband voice- revenues on saturated market © Ericsson AB 2008 Commercial in confidence 62 2008-09-17
  • South Africa, MTN Mobile broadband connects the unconnected The benefits when using 3G/HSPA Access to critical information: Around eight to ten people a day use the terminals to search for jobs email jobs, friends or check out the results of their favorite football team. Accessing it online is comparatively easier and cheaper than traveling significant distances to ascertain the same information. Functions as an employer-employee bridge: Sandton p y p y g is growing rapidly and has many job vacancies while Alexandra has many willing workers. Alexandra’s townspeople can find vacancies and get help with applications and CVs through the community Internet café and business center. Improved entrepreneurship: Other townspeople have approached MTN regarding setting up their own HSDPA powered Internet café in their part of the town. “The projects are making a real impact on people’s lives. Some use it to get jobs or check their university application. But most importantly we’re seeing people become accustomed to the Internet, trusting what technology can do for them and how it can make their life simpler. If they can be included in the digital i th di it l age, th it will b then ill benefit all of S th fit ll f South Africa,” Ashraff Paruk, General Manager, Product Innovation and Strategy, MTN SA © Ericsson AB 2008 Commercial in confidence 63 2008-09-17
  • South Africa, MTN Mobile broadband connects the unconnected © Ericsson AB 2008 Commercial in confidence 64 2008-09-17
  • A very first global initiative Launch participants include: Microsoft, Dell, Lenovo, Toshiba, 3 Group, Asus, ECS, Ericsson, Gemalto, Orange, Asus ECS Ericsson Gemalto Orange Qualcomm, Telefónica Europe, Telecom Italia, TeliaSonera, T-Mobile, Italia TeliaSonera T Mobile and Vodafone Vodafone. © Ericsson AB 2008 Commercial in confidence 65 2008-09-17
  • Mobile Broadband Market Technology and evolution Business considerations
  • 8 times increase of PS data in 18 months !!! World W ld average statistics from Ericsson 3G/HSPA networks t ti ti f Ei t k ps/RNC Mbp Jul-07 r-07 t-07 n-07 n-08 r-08 t-06 Apr Oct Jan Jan Apr Oct Speech traffic Packet (DCH+HS) traffic DCH Packet traffic HS Packet traffic PS overtook speech in June 2007 - >90% of PS traffic is HS © Ericsson AB 2008 Commercial in confidence 67 2008-09-17
  • HSPA Evolution - reality end 2008 Announcements in Barcelona With Ericsson will deliver speeds of 21 Mbps in 2008 across our NextG network - a world first Will work alongside Ericsson, ... to trial Release 7 HSPA+ Recent announcements HSPA Evolution CEO De la Vega: “AT&T has a time- to-market advantage over WiMAX with its HSPA technology. HSPA gy Release 7 will give the company 7 Singapore, 16 May 2008 CEO Allen Lew“… Mbps to 20 Mbps data speeds and HSPA Evolution, enabling even faster the company will only have to deploy download and upload speeds of up to 42 a software upgrade” Mbps and 12 Mbps respectively within the next 18 months ” months. Strong commitment to HSPA Evolution © Ericsson AB 2008 Commercial in confidence 68 2008-09-17
  • First HSUPA 5.8 Mbps Commercial network, July 16, 2008 Ericsson (NASDAQ: ERIC) and 3 Italia have achieved an (NASDAQ ha e achie ed industry first: the successful establishment of enhanced HSPA mobile-data connections in a commercial network. The enhanced HSPA technology enables maximum uplink data rates of 5.8Mbps and a significant reduction i network l t f 5 8Mb d i ifi t d ti in t k latency, resulting in markedly better performance for interactive consumer applications. Vincenzo Novari, CEO of 3 Italia, says: "This world-first achievement reaffirms our commitment to accelerating the development of the mobile broadband market." Source: http://www.ericsson.com/ericsson/press/releases/20080716-1236207.shtml Up to 5 8 Mbps in UL and <35 ms latency 5.8 in commercial operation © Ericsson AB 2008 Commercial in confidence 69 2008-09-17
  • Mobile Broadband Market Technology and evolution Business considerations
  • Mobile Broadband High Level Architeture and network cost CAPEX & OPEX Radio Network Packet Core Term. Node B RNC SGSN GGSN Internet Transport Packet Core P k C Radio Network Transport T t Air-interface capacity, high capacity nodes and efficient transport solution key for competitive offering © Ericsson AB 2008 Commercial in confidence 71 2008-09-17
  • RAN PS CN Air interface capacity Subscriber bit-rate for RBS 3x1, 10% active 3000 2500 2000 Ericsson 2009 Kbps 1500 Ericsson 2008 1000 Current network 500 0 200 250 300 350 400 450 500 550 600 650 700 # subscribers per RBS site Increase revenues with best Mobile Broadband bit rates bit-rates. More subscribers can be served by each RBS Reduced CAPEX and OPEX. © Ericsson AB 2008 Commercial in confidence 72 2008-09-17
  • RAN PS CN High capacity nodes High capacity GGSN in commercial operation – >20 Gbps – Up to 6000 kPDP Intelligent SGSN with 3G Direct Tunnel – 50-90% fewer SGSNs – Ericsson’s unique configuration mechanisms Per subscriber, per related APN(s), RNC and/or GGSN Next generation high capacity RNC – 2 Gbps – Architecture support up to 20 Gbps Scalable and high availability nodes to cater for continuous traffic increase © Ericsson AB 2008 Commercial in confidence 73 2008-09-17
  • Evolution path architecture Evolving towards a flat architecture Today 2008 2009/2010 GGSN GGSN GGSN/SAE-GW SGSN SGSN SGSN/MME BSC RNC BSC RNC BSC RNC eNode B BTS Node B BTS Node B BTS Node B GERAN UTRAN GERAN UTRAN GERAN UTRAN eU eUTRAN Control plane User plane © Ericsson AB 2008 Commercial in confidence 74 2008-09-17
  • RAN PS CN Large cost savings with 3GDT Relative investment 3GDT 3GDT SGSN SGSN SGSN SGSN GGSN GGSN GGSN GGSN Typical Broadband Extreme Broadband Fixed tariff Low fixed tariff 10-fold traffic increase High-traffic video services 50-90% fewer SGSNs © Ericsson AB 2008 Commercial in confidence 75 2008-09-17
  • RAN PS CN Optimal Iub TN solution 3. Native IP 3 N ti Site High Capacity 2. HSPA off load Quality IP ATM/IP dual (Ethernet) stack E1 + Best Effort IP (ADSL) 1 ATM E1s 6 10 6-10 Mbps Coverage High capacity sites sites Ericsson has all 3 in commercial operations © Ericsson AB 2008 Commercial in confidence 76 2008-09-17
  • Subscribers and volume Subscriber clusters based on estimated monthly traffic Broadband APN 70 60 50 5% extreme 40 users [%] 30 20 10 0 < 1 MB 1 MB - Cluster volume 10 MB - Cluster size 10 MB 100 MB 100 MB 1 GB - - 1 GB 10 GB - 10 GB 100 GB Cluster Cl t 100 GB - 1 TB Source: Ericsson Mobile Broadband Example: many subs <100 MB 80% of users < 1GB per month MB, …yet 5% of subs generate nearly 80% of the traffic Bandwidth Management! © Ericsson AB 2008 Commercial in confidence 77 2008-09-17
  • QoS Management HSPA Traffic Handling Priority Gold Silver Silver Bronze Priority based on: y Subscription – Corporate > Student Service 3.0 – Mobile TV > YouTube Mbps 1.0 1.0 0.5 Mbps Mbps Mbps Subscriber usage – Limit bit rate when “bucket” b ae e buc e is reached Network (cell) load – Limit bit rate under peak load p for low priority subscribers VIP Subscriber Flat Rate Subscribers Optimized O ti i d usage of i t ll d capacity - f installed it traffic handling priority introduced with SW features © Ericsson AB 2008 Commercial in confidence 78 2008-09-17
  • QoS Management RAN PS CN for optimal investment across all nodes ROI ~ 300% MBB generates Capacity investment pressure in Congested RAN cells: additional 4,6% SAVINGS: Apply e2e QoS management to traffic coming from congested cell to avoid capacity increase. Savings are equal to the extra-investment that would be needed in congested cells (5%) 4.6 % of RAN investment INVESTMENTS : Packet Core “e2e QoS Management” Double 1 year “Packet Core” investment: 1.2 % © Ericsson AB 2008 Commercial in confidence 79 2008-09-17
  • Summary Mobile Broadband - New revenue stream – Mobile Handheld data – Mobile PC data Lower cost per Gigabyte – Increased air-interface capacity I d i i t f it – High capacity nodes – Upgrade TN to remove Iub bottleneck – QoS for optimal investment © Ericsson AB 2008 Commercial in confidence 80 2008-09-17
  • Alokito Bangladesh © Ericsson AB 2008 Commercial in confidence 81 2008-09-17
  • © Ericsson AB 2008 Commercial in confidence 82 2008-09-17
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Affordable 3G Devices Bimal Dayal VP & Country Manager, Business Development y g p Qualcomm India & South Asia November 12, 2008
  • 85 Terms and This document contains d Thi d t t i descriptions of parts whose manufacture, use, i ti f t h f t Conditions sale, offer for sale, or importation into the United States is limited or of Usage prohibited by the injunctions against QUALCOMM Incorporated. This document should not be construed as an offer to sell such parts for use or importation into the U.S., nor should it be construed as assistance in making, using, selling, offering to sell, or the importation of any product in the U.S. containing such parts. This document is intended solely to provide information for those products that are outside the scope of the injunction. R i i t’ d i j ti Recipient’s download and/or use of th i f l d d/ f the information i thi ti in this document constitutes agreement with these terms. QUALCOMM Incorporated, 5775 Morehouse Drive San Diego CA 92121 1714 Incorporated Drive, Diego, 92121-1714 85
  • 3G Today Global Economies of Scale, Extensive Ecosystem for Devices and Services 670M 3G subscribers 3000+ devices 490 Commercial 3G operators Source: Wireless Intelligence Globally 3G has significant impact on data and VAS revenue 86
  • Emerging economies will represent >72% of g g g global subscribers Source: Wireless Intelligence 87
  • 3G will drive mobile broadband connections well into the next decade Forecasted global mobile broadband subscribers Sources: Strategy Analytics, July 2007; Informa, September 2007. HSPA Family includes HSDPA, HSUPA & HSPA+. EV-DO Family includes Rel. 0, Rev. A and Rev. B. 88
  • 3G handsets forecast to reach >55% of total handset shipments by 2012 *2G includes cdmaOne, TDMA, GSM, EDGE,GPRS, iDen, PDC, PHS Source: Average of Strategy Analytics (Jan 2008), InStat (Jul 2007), IDC (Jan 2008), Gartner (July 2007), Forward Concepts (Jul 2007), ABI (Dec 2007), Yankee Group (Dec 2007), WCIS+ (Feb 2008) and IMS (Oct 2007) 89
  • 3G WCDMA and HSPA device forecast: Predicted to g o to nearly 680 million by 2012 ed cted grow ea y o 0 900 800 HSUPA 700 HSDPA Annua Handset Sales WCDMA (R99) 600 HSPA: S 500 680 million devices 400 p j projected to al 300 sell in 2012 200 100 0 2007 2008 2009 2010 2011 2012 2013 Source: Strategy Analytics, January 2008 90
  • Device Diversity – Addressing All Market Segments Feature Phones, Smart Phones, USB Dongles, Embedded modules for Laptops More than 874 have been commercialized by 117 vendors • 288 handsets • 214 notebooks • 78 USB modems Fujitsu Lifebook Q2010 • 74 PC cards Huawei E220 Samsung F508 Embedded HSDPA USB Modem 2 Megapixel camera, • 50 wireless routers 2.4” display 2 4” di l • 44 embedded modules Source: GSMA Oct. 2008 S GSMA, O t http://hspa.gsmworld.com/devices/default.asp LG KU990 Viewty Option Globetrotter Apple iPhone 5 Megapixel camera, Express Card, HSDPA tri-band Note: not all devices shown at right (with 3 3” display quad band quad-band 3G images) include Qualcomm chipsets Targeting 22+ countries 91
  • ‘3G for All’ entry level WCDMA/HSPA handsets UMTS HSPA Winner of 2007 GSMA “3G for All” Winner of 2008 GSMA “3G for All” Currently offered by: 2007 2008 Globe MSM MSM H3G 6K 6K WCDMA HSDPA M1 Orange O Smart T-Mobile And More! LG KM560 LG KU250 Kelly Williams, executive director of technology for Cingular. "We expect 3G to become as ubiquitous as GSM worldwide. Offering customers an affordable 3G handset will help make that become a reality." 92
  • The USB modem phenomenon Donglemania • Key markets and operators all involved – 3, VF, SFR, TMO, TME/O2, Orange and TIM sell volume l – 7.2 Mbps no price difference – drives upgrade & new users – Targeted across market segments, not j g g , just corporate/IT • Trends in 2009 – Launch of HSUPA modems (7.2/2.0+ Mbps) – I t d ti of first HSPA+ devices Introduction f fi t d i 93
  • Mobile broadband computing momentum Mobile notebook modem shipments Embedded 3G notebook vendors 200 Internal Modems I t lM d Unit in Millions USB Modems 150 PCMCIA Cards 100 ts 50 0 2008 2009 2010 2011 2012 2013 Source: ABI Research, Q2 2008 Embedded 3G notebook metrics Next Step p Launched Launched Notebook 3G Embedded NB Offerings NB Models Manufacturers Carriers June 2007 157 74 18 20 June 2008 418 159 18 34 Source: Qualcomm, July 2008 94
  • New pocket and mobile computing segments p p g g Handset Feature Smartphone Pocket Computing Mobile Computing Traditional Laptop < 2” Phone < 3.5” Device Device > 12” 2.5” 4” – 6” 7” – 12” Target Segments g g Trendsetters Mobile Families Professionals 95
  • Single-Chip solutions for mass market 3G HSPA smartphones End • Unprecedented levels of integration Today 2008 MSM • 600 MHz Scorpion applications processor QSC 7K 7230 • Windows Mobile, Linux, Android and BREW® HSPA HSPA+ • 45nm CMOS process technology • 2D and 3D h d d hardware-accelerated graphics l t d hi RF + • Fully integrated GPS, FM radio, and Bluetooth • Integrated support for worldwide cellular frequency bands • Unparalleled battery life • 80+ hours of music playback • 1 day talk time • 1 month standby time (môrz lâ) (n ) The observation made in 1965 by Gordon Moore, that the number of transistors per square (n.) Moore inch on integrated circuits had doubled every year since the integrated circuit was invented. Moore predicted that this trend would continue for the foreseeable future 96
  • Many WCDMA & HSPA mobile devices launched with Qualcomm chipsets Q p More than 50 chip customers Over 350 devices in design and production BandRich HTC Huawei LG Samsung Sony Ericsson Spice ZTE 97
  • Lowering the Cost of WCDMA (UMTS) Handsets ASP of Lowest 10% of WCDMA $450 $407 WCDMA Lowest Price $400 $367 $341 $350 $311 $300 $290 $295 $290$287 $272 $270$270 $254 $250 $228 $221 $231 $217 $197 $198 $195 $191 $181 $200 $176 $175 $163 $162 $141 $141 $150 $129 $128 $128 $135 $ $124 $105 $100 $78 $67 $53 $50 $0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 04 04 04 04 05 05 05 05 06 06 06 06 07 07 07 07 08 08 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 Notes: WCDMA Phones Sold per Calendar Quarter; lowest price represents complete phones sold in quantities of approx 50,000 units or higher. Data derived from licensee reports. Does not include modules or modems. Source: Qualcomm Incorporated 98
  • “Connectivity is Productivity” Information Communication Technologies (ICT), particularly mobile telephones have a great impact in improving economic efficiency ”... Accordingto Economist Jeffrey Sachs Bangladesh Operator ‘opened the world’s world s eyes to expanding the use of modern telecommunications technologies in the world’s poorest places.’ 99
  • Affordable 3G device: Connectivity, Mobility & Computing 3G h has global economies of scale, entry l l b l i f l t level 3G d i l devices at t sub US $100 3G device diversity addresses various market segments and user needs for voice communication and broadband data access 3G will b mainstream service, providing voice, hi h speed ill be i t i idi i high d data and rich content services 3G will expand into new segments of connected computing and consumer devices • 3G/HSPA will drive wireless broadband access 100
  • Thank You
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy
  • Interactive Audience Discussion Panel Aktel: Bidyut Kumar Basu, Chief Commercial Officer Dialog Mobile – Sri Lanka: Supun Weerasinghe, Chief Operating Officer Ericsson: Martin Bäckström, Vice President, Networks, Market Unit South East Asia Gilbert + Tobin: Rob Nicholls Consultant Nicholls, Grameenphone: Oddvar Hesjedal, Chief Executive Officer GSMA: Ricardo Tavares, Senior Vice President - Public Policy Qualcomm India and South Asia: Bimal Dayal, VP & Country Manager, Business Development Warid: Azmat M, Khan, Deputy General Manager for Strategic Planning and Business Development © GSM Association 2007
  • BROADBAND FOR ALL Highlighting the market potential with 3G mobile broadband 12 November 2008 - Dhaka Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy