The document summarizes a presentation on mobile broadband in India. It discusses key trends such as the growth of TD-LTE and new device economics. It also outlines challenges like spectrum shortages and low average revenue per user. Market forecasts predict 3G and TD-LTE subscriber bases will reach 371 million and 67 million respectively by 2017. Case studies examine Bharti Airtel's 4G strategy and opportunities/threats. The presentation concludes with perspectives on driving further growth of the Indian wireless market.

1. October |2012
Mobile Broadband in India: Carrier
Strategies
Deepak Chanduka
GM, Marketing & Business
Development
MTNL
Caroline Gabriel
Research Director
Maravedis-Rethink
Basharat Ashai
Market Analyst, APAC
Maravedis-Rethink

2. Agenda
 Introduction
◦ Caroline Gabriel, Research Director
 Maravedis-Rethink Presentation
◦ Basharat Ashai
 MTNL Presentation
◦ Deepak Chanduka, GM, Marketing &
Business Development
 Q&A
Copyright © 2012 Maravedis Inc

3. Key trends driven by India
 TD-LTE enters mainstream
 New device economics
 New web services models
 Rising international impact
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4. Key trends influencing India
 Convergence of 5000
4500
TD/FD-LTE
4000
 Multimode devices 3500
and breakthroughs 3000
 New chip architectures
$m
2500
 Global roaming issues 2000
1500
 Operators start to think 1000
globally 500
0
2010 2011 2012 2013 2014 2015
FD-LTE TDD-LTE LTE-A
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5. India 4G and Cellular Market Analysis and
Forecasts, 2012-2017

6. Agenda
• Key Findings
1
• TD-LTE Operator Case Study
2
• Conclusions
3
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7. Key Findings
Market Drivers:
Multimode Devices, Local Content and Broadband
Policy
Challenges Ahead:
Shortage of Spectrum, Low ARPU and 3G/4G
Device cost
Forecasts(2012-2017):
3G and TD-LTE Subscriber Base To Reach 371
million and 67 million respectively by 2017
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8. Market Drivers
Inexpensive Local content and
multimode applications Public investment
(2G/3G/TD-LTE) around and broadband
devices will drive entertainment and policy
market adoption popular festivals
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9. Challenges Ahead
Price sensitive
Shortage of market for both
Low ARPU
spectrum devices and
services
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10. 3G Market Forecasts
Slow 3G growth so far
Beyond 2015 it is 4G
Growth in Data traffic still modest
Adoption of Wi-Fi for offload
Source: India 4G and Cellular Market Analysis and Forecasts,
2012-2017 – 6th Edition (June 2012)
Role of unlicensed frequency bands
(2.4 GHz and 5.8 GHz)
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11. 4G Market Forecasts
TD-LTE base will reach 67 million by the
end of 2017
Multimode smart phones (2G/3G/TD-LTE)
to lead the device category with a 45%
market share
Multimode (2G/3G/TD-LTE) device price to
reach US$50 may take more than two
years
Source: India 4G and Cellular Market Analysis and Forecasts,
2012-2017 – 6th Edition (June 2012)
FDD-LTE at 700 MHz spectrum by 2015 in
rural areas
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12. TD-LTE Operator
Case Study - Bharti Airtel
Acquisition of Qualcomm
Spectrum
• What it means for Bharti-Airtel?
Current 4G Market
• High-end residential user, SMEs,
Enterprises
4G Benefits
• Devices are backward compatible with 3G
and 2G
4G Challenges
• Integration with the 2G and 3G network
• LTE BTS Radius in the 2.3 GHz band is
much lower than 3G in the 2.1 GHz band
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13. TD-LTE Operator
Case Study - Bharti Airtel (Contd.)
Strengths Weaknesses
1. 2G, 3G and 4G
spectrum Assets 1. Not strong in the rural
market which is dominated
2. 3G and 4G spectrum in by BSNL
two lucrative high ARPU
markets-Delhi and 2. Does not have a pan-
Mumbai India BWA spectrum like
RIL
Opportunities Threats
1. Small BWA license
holders as acquisition 1. RIL(Pan India BWA
targets licensee)
2. Intense price competition
2. 700 MHz opportunity in and losses on foreign
India exchange
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14. Conclusions
Growth in the Indian wireless market will
be hampered by shortages of spectrum
3G and TD-LTE will boost Indian mobile
operators’ ARPU from VAS
The adoption of affordable smart
phones(US$50) will influence the 3G
growth
TD-LTE to gain traction in 2H 2013
Copyright © 2012 Maravedis Inc

15. Contact
For information about this
report please contact:
Adlane Fellah
Maravedis-Rethink
afellah@maravedis-bwa.com
Tel: +1-786-452-6522
Copyright © 2012 Maravedis Inc

16. MTNL Status & Strategies
Deepak Chanduka
GM (Marketing & Business Development), MTNL

17.  MTNL at Glance
 2012 Highlights
 New Developments
 Impact of Thrust Areas of National Telecom Policy (NTP) 2012
 Mobile Broadband
 Potential Growth Factors for MTNL
 Mobile Broadband: Next Level
 MTNL Strategy

18. MTNL AT A GLANCE
 Incorporated in 1986 as a PSU with 56% govt. holding
 To upgrade the quality of telecom services
 Expand the telecom network
Delhi
 Introduce new services in Delhi – the Political Capital &
Mumbai – the Business Capital of India.
Mumbai
 Pioneer of telecom technologies, has emerged as India's
leading and one of Asia's largest telecom operating
companies
 Navratna status in 1997
 Employee base : 41,600

19. MTNL AT A GLANCE
 First Telecom operator in India to launch 3G GSM mobile, ADSL2+, VDSL
Broadband, IPTV and VoIP Service
MTNL offers various services that include:
 Basic Telephony ,Integrated Services Digital Network (ISDN)
 MPLS-VPN Service
 Managed Leased Line Network (MLLN)Intelligent Network Services
 CDMA based WLL services
 2G & 3G Cellular Mobile services
 Long Distance Calling Service
 Internet Services
 Broadband , VoIP , IPTV , Wi-Fi
 Video Conferencing
 Digital Signature Certification Service, etc

20.  5 million customers in 3G/2G in Delhi and Mumbai
 Expansion plans for 3G node B BTS network in process
 Femto cells implementation for better coverage & capacity
 The spectrum block released for MTNL for 3G
 size of 2X5 MHz in 2.1 GHz.
 Relative price paid for Delhi and Mumbai is very high.
 4G spectrum 20 MHz in 2.5/2.6 GHz band returned due to
 High cost of spectrum
 Private operators allotted 2 blocks of 20MHz spectrum in 2.3 GHz which
has better eco system.
 MTNL did not get any revenue share partner

21.  The MTNL/BSNL blended ARPU for GSM service is approx.
1.7 USD per month .
 There is a growth in 3G data consumption up to 5% per month
 Price wars continue in 3G data plans
 MTNL has enough backhaul fiber capacity to carry data
services like MPLS, Enterprise, 3G, Broadband etc.

22. 3G Data Volume Growth in MTNL Network
4
3.5
Data volume in TB per day
3
2.5
2
1.5
1
0.5
0
2009 mid 2010 end 2010 mid 2011 end 2011 mid 2012
Year

23.  Upgrade existing HSDPA 3G network speed from 3.6Mbps to HSPA+
supporting 21.1 Mbps per sector.
 Increase in packet core capacity from 2.2Gbps to 20Gbps
 2G / 3G network will be expanded to improve network coverage by adding
City Node B BTS
Delhi 610 330
Mumbai 380 230
 Upgrade of TDM backhaul M/W network from 16E1s/32E1s/STM-1 to
Hybrid Microwave up to 400Mbps

24.  Revenue Growth per annum through increase in 3G & data usage is expected
to be
FY 2012-13 7.5%
FY2013-14 12%
FY 2014-15 15%
 Sharing of BTS node B and M/W backhaul network
 At least 5% per annum growth in the revenue through sharing of BTS/Node-B
site’s infrastructure & M/W backhaul network is expected in the subsequent
years
 Sharing of 3G network/ spectrum if allowed as per NTP 2012, MTNL hopes to
generate USD 100m additional revenue per annum.

25.  High Revenue from mobile Broadband in Delhi and Mumbai as mobile internet
in these two cities is high percentage of mobile internet in India.
 Higher ARPU from mobile broadband will drive the 3G/4G market as compared
to present very low ARPU from GSM.
 The number of fixed broadband users, currently which are 85% of total, may
shift to wireless broadband. MTNL will have 3G as well as FTTH to provide
high speed broadband to individuals and enterprise customers.

26.  Unified license is expected to roll out post December
 “One Nation Free Roaming” concept will be introduced in 2013
 NTP 2012 gives importance to provide secure, reliable, affordable and high
quality converged telecommunication services anytime, anywhere for an
accelerated inclusive socio-economic development.

27.  Broadband: “’Broadband For All” at a minimum download speed of 2 Mbps
 Convergence of Network, Services and Devices
 Liberalization of Spectrum: any Service in any Technology
 Simplification of Licensing regime: Unified Licensing, delinking of Spectrum
from License, Online real time submission and processing
 Consumer Focus: Achieve One Nation – Full Mobile Number Portability and
work towards One Nation – Free Roaming
 VOIP : Voice over Internet Protocol .Cloud Computing: Next Generation
Network including IPV6
 Reposition the mobile phone :from a mere communication device to an
instrument of empowerment

28.  Beyond voice communication the biggest motivator for Indian
masses would be video or video-on-demand.
 VoD on a 4G enabled device partially overcomes the disadvantages
like choice of content, privacy, etc.
 Tablets can be a lot cheaper for target user groups
 Video will generate enough traffic on the network to generate
enough volumes.
 Important applications will be Video mail, Interactive video and voice
response, Video ring back tones, Video conferencing, Video
streaming, video advertising etc.

29.  Mobile Gaming industry is expected to multifold in demand and
revenue generation
 A 4G based mobile hotspot can offer a convenient tool to provide
faster speed for cyber cafes as well as individuals in their homes.
 On the corporate side, around 26 million SMEs in India offer a huge
potential market for 4G as most of the SMEs lack affordable high-
speed Internet service (broadband) in India, particularly in Tier II and
Tier III cities leading to lack of widespread adoption of e- commerce
by local businesses.
 From traveling sales force to accounts/finance using internet banking,
4G offers a promise for improvement in business at each level for an
SME.

30. Present state Future strategy
3G infrastructure: make it IP ready
Number of 3G towers inadequate for seamless Increase 3Gtower no to 2X or 3X vis-a-vis 2G towers
coverage to provide better quality of experience to users
3G network not working with city based Wi-Fi players To work with city based Wi-Fi players and own Wi-Fi
to offer complementary service network to provide complementary service
Interoperability: Shift from Pilot to Commercial
Operators doing technical testing of inter-operator 3G Operator should roll out full fledged inter-operator
calls 3G calls
Operators have presently limited roaming tie-ups Service providers should increase roaming tie-ups
with all national and international operators
Operators are testing quality of experience for All Interoperable service should provide enriching
interoperability for all services experience

31. Present state Future strategy
Content - Needs Overhauling
Focus on high speed data, video call, Mobile TV and Focus should be on killer applications w.r.t video,
gaming gaming and high speed data
Focus on vanilla applications and vertical applications Focus should be on innovative applications related to
are missing verticals like health, education, govt. etc.
Some operators focusing on different applications All operators should focus on different applications
w.r.t age groups w.r.t different age group of customers like youth,
professional and housewives.
Focus is on experiencing 3G through freebies & Focus should be on quality of experience and
subsidized schemes providing enriching experience
Tie-up with limited content aggregators and VAS Service providers should increase tie-ups with content
players aggregators & create a large ecosystem of innovative
VAS players
3G Handset: Focus on reducing cost
Average cost of 3G handset is still high Cost of 3G handset should come down
No of people having smart phone and 3G phones is Operators should increase the intake of people having
quite less smart phones and 3G phones
Lack of awareness about usage of 3G phones Handset players should increase in store
demonstrations and they should be properly trained

32. THANK YOU

34. For information about this
report please contact:
Adlane Fellah
Maravedis-Rethink
afellah@maravedis-bwa.com
Tel: +1-786-452-6522
Copyright © 2012 Maravedis Inc