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Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
Connecting a Continent With 802.16d - The Indian Experience
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Connecting a Continent With 802.16d - The Indian Experience

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  • 1. Connecting a continent with 802.16d The Indian Experience Prateek Pashine June 16, 2008 ©2008 Tata Communications, Ltd. All Rights Reserved. Confidential & Proprietary
  • 2. Safe Harbor Statement Certain words and statements in this presentation concerning Tata Communications and its prospects, and other statements including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward- looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network, failure to develop new products and services that meet customer demands and generate acceptable margins, failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services, failure to stabilize or reduce the rate of price compression on certain of the company’s communications services, failure to integrate strategic acquisitions and changes in 12 JAN 2008 government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry, and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications’ various filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements. 1 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 3. An Introduction to Broadband – WiMAX :: The Tata Current India Answer Communications Perspective 2 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 4. Tata Communications Leadership Landscape Industry Leader State-of-the-art Customers #1 global wholesale voice Infrastructure 1,500 global carriers #1 global submarine cable 200,000 route km global 600 mobile operators capacity network “Fortune 1000” of India #1 intnl. long distance services 300 points of presence (PoPs) 5,000+ SMEs in India in India 20+ terabit submarine capacity 500,000 Internet and #1 enterprise data services in ~1M sq. feet of data center broadband subs India space #1 Internet services in India 3 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 5. Our Strengths • #1 International and Enterprise data services in India • Relationships with Top 2000 enterprises in India including India Fortune 500 companies Enablement • Best connectivity to India and expanded reach within Global • Owned cable network across the globe: $1Bn investment Submarine & • Tier-1 Global IP Network and leading ISP in India IP Reach • Unique assets and connectivity in Asia, Middle East, Africa • #1 wholesale international voice provider Integrated • Suite of voice, data, IP, signaling and outsourcing services Wholesale • Over 1500 carrier relationships including 600+ mobile Services operators 4 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 6. Our Weaknesses & hence opportunities • Business largely focused on Wholesale and Enterprise • Legacy retail restricted to Dialup Internet Customer • No retail voice business Base • Limited ownership of last mile Last Mile • Prohibitive cost of buried network Network • No LLU • No 2G / voice spectrum No Legacy • MMDS / LMDS spectrum available at 2.7 and 3.3 Ghz voice spectrum 5 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 7. The Broadband opportunity in India Prateek Pashine June 16, 2008 ©2008 Tata Communications, Ltd. All Rights Reserved. Confidential & Proprietary
  • 8. India: Strong Economic Fundamentals Third Largest Economy by 2050(1) With Highest Projected Growth Rate(1) GDP (US$bn) GDP CAGR (2005-2050E) 50,000 44,453 10% 8.9% 40,000 35,165 7.5% 8% 30,000 27,803 5.9% 6% 5.5% 20,000 4% 2.5% 10,000 6,673 6,074 5,870 1.8% 1.7% 3,782 3,603 2% 1.3% 3,148 0.9% 0 0% Germany US UK China India Japan Russia France Germany US UK China India Japan Russia France Brazil Brazil Increasing Per Capita Income(2) Increasing Household Disposable Income(3) Per Capita Income (US$) Avg HH disposable income CAGR : 10% Rupees (‘000) Urban 1,140 500 1,200 CAGR CAGR 961 4.6% 5.8% 797 900 3.6% 5.3% All India 640 2.8% 3.6% 600 250 Rural 300 0 0 FY04 FY07 FY08E FY10E FY95 FY90 FY95 FY00 FY05 FY10E FY15E FY20E FY25E (1) Source : Industry Research; currency translated using 2003 US $ rate (2) Source: Street research & RBI website 7 Tata Communications :: WiMAX Journey (3) Source: McKinsey Report: The ‘Bird of Gold’ dated May 2007 Confidential & Proprietary
  • 9. India: Favorable Demographic Shift Favorable Shift in Income Profile (1) Growing Work Force (15-59 yrs)(2) % of population % of population 100% 1 1 2 1 100% 7% 8% 8% 4 9% 11% 12% 8 19 75% 58% 60% 63% 64% 64% 64% 80% 50% 41 32 25% 35% 32% 29% 27% 25% 23% 0% 60% FY 2001 FY 2006 FY 2011E FY 2016E FY 2021E FY 2026E 43 0-14 yrs 15-59 yrs >60 yrs 40% 36 Increasing Literacy(3) % literate population 54 80 75 20% 70 35 60 55 22 50 43 36 40 0% 30 FY 2005 FY 2015E FY 2025E 20 Deprived (<Rs. 90,000 pa) Aspirers (Rs. 90,000-200,000 pa) 10 Seekers (Rs. 200,000-500,000 pa) Strivers (Rs. 500,000 - 1,000,000 pa) 0 Globals (>Rs. 1,000,000 pa) FY 1981 FY 1991 FY 2001 FY 2011E (1) Source: Mckinsey Report May 2007 (Income levels are at real 2001 prices) (2) Source: The National Commission On Population May 2006 8 Tata Communications :: WiMAX Journey (3) Source: India stats website; 2011 rate is India’s 10th Economic Plan objective Confidential & Proprietary
  • 10. India – Huge Internet Potential Phone Connections Population 1.2 billion 300 million Total Population Total Population Urban Population 300+ million Cable Addressable Urban Addressable Urban Connections population population 80 million People with Phone (Wireline/ People with Phone (Wireline/ Wireless) connections Wireless) connections Internet User 70 million Fixed Cable/ Internet/ Broadband Cable/ Internet/ Broadband Connections Connections Connections Internet 40 million Connections 9.2 million Broadband Connections 4 million Provisioning of wireless technology would enable conversion of addressable market into subscribers ddressable Provisioning of wireless technology would enable conversion ofaaddressable market into subscribers 9 Tata Communications :: WiMAX Journey Confidential Source : TRAI, IAMAI, Management estimates (Estimates for September 2007) & Proprietary
  • 11. India – Huge Internet Potential… • Poor infrastructure & support • No LLU • Legacy network with long loop lengths • Unorganized cable infrastructure with poor network Current • 2G + services in the country Impediments • High Buried Access Costs for growth • Very low wireline penetration • 200 months of ARPU as Capex • Limited green-field deployment • Limited spectrum for BWA • Limited content offering – restricted utility for access • Far superior roll-out mechanism with the advantage of existing Wireless to be infrastructure of wireless telecom players the technology • Spectrum auction likely in near term – Transforming the Indian industry • Potentially large coverage and faster expansion for choice Wireless is the best technology to drive internet growth in India Wireless is the best technology to drive internet growth in India 10 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 12. Bypassing Legacy – the India Way Voice Services: Digital mobile is 8X of fixed lines GSM introduced in 1995 and CDMA-1X in 2003 No analog. No standards issues Pay TV Services: Satellite leading the introduction of digital TV Analog cable prevalent since mid nineties Government mandates “conditional access” in metros Satellite (DTH) services achieve 5% share in a year… 3 new players entering the market Broadband ??? 11 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 13. Wire(d)less WIMAX to the fore!! 12 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 14. WiMAX – First off the Blocks 3G - Policy yet to be finalized Spectrum to be auctioned to 3-4 players Greater impact on voice economics rather than data services WiMAX – Available now ISPs using 3.3GHz spectrum for WiMAX roll-out At least 3 networks being built in all large towns Best spectral efficiencies Already a 4G technology – OFDMA today Cost of CPE soon becomes indirect Promising technology option --need catalyst to fuel the deployment Promising technology option need catalyst to fuel the deployment 13 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 15. WiMAX in India – Current Scenario • Spectrum available in the 3.3 GHz band • 6 players with 12 Mhz • 1 player with 14 Mhz Regulatory • CPE cannot be sold to subscribers Scenario • Royalty for BTS and for every CPE on an annual basis • 2.x GHz auction expected in FY 2008-09 • Operators migrating from MMDS/LMDS at 3.3 Ghz to WiMAX • Largely for Enterprise; also for Retail • Tata Communication: Launched services in 35 Cities for Enterprise Deployment • Launched its services in Bangalore with 7 K active subs status • Aircel and Reliance: Offer to enterprises has been rolled out in 8-10 cities • Others trialing WiMAX gear 14 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 16. WiMAX in India – Tata Communications takes the lead!!! 15 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 17. Market needs | WiMAX in India Businesses Consumers Supplement Fiber roll-out in major Primary access mechanism for metros Broadband Expand access reach (~ E1) to all Provide reliable 1Mbps experience major business towns + content/apps Current Status: >35 towns Current Status: 1 city March 2009: 115 towns March 2009: 15 cities 16 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 18. Bangalore :: Retail WiMax Roll out Details, India’s first ALL CITY coverage of WiMAX Launched with 132 BTS in Dec 2007, currently 158 Most sites back hauled on Fibre 3.3 Ghz, 12 Mhz, 3 Mhz/sector, 4 sectors 85% of the city covered Outdoor SS – truck roll required Introduced 3rd party SS to work with the BTS Arguably the first network in WiMax d to have fully interoperable 3rd party SS SS installed at between 3 to 8 mtrs height ARPU of $25 + a month – almost 3 times the industry average Over 7,000 customers installed in first 4 months!! 6 other cities ready to go Live in coming quarter 17 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 19. Bangalore coverage City divided based on Business requirement in to 5 clusters Cluster 0 – Corporate – Downtown Cluster 1 – SME Cluster 2,3&4 – Residential Design Assumptions Cell edge – QAM16 Building edge coverage 90% Probability of service by area Area of coverage approx 300 Sq Km 18 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 20. Bangalore – City Clusters Cluster 1 Cluster 2 Cluster 0 Cluster 4 Cluster 3 19 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 21. Overall Coverage 20 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 22. Our Experience 3.3 Ghz 16 d deployment Subscriber Station height a key factor for feasibility Outdoor and Semi-Outdoor Coverage is not an issue Full Outdoor SS will definitely give better coverage. Limited Indoor Coverage –Indoor penetration loss is high in 3.3Ghz Spectral Efficiency of 2 bits/Hertz/Seconds – 6 mbps per sector IOT with different SS vendors 21 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 23. Sample Pictures - BTS & SS 22 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 24. Roll-Out Plan FY 2008 FY 2009 FY 2012 5-7 Cities (1) Top 40-50 Cities (1) > 100 Cities (1) Current Status Q4, FY 08 FY 09 FY 10 FY 11 FY 12 Cities in India 2 5-7 ~40 - 50 ~60-80 ~80-100 >100 No. of BTS 150 - 200 200 – 300 3,000 – 3,500 ~4,000 4,000 – 4,500 4,500 – 5,000 National spectrum availability 3.3 GHz 3.3 GHz 3.3 GHz 3.3 GHz & 3.3 GHz & 3.3 GHz & 2.x Ghz 2.x GHz 2.x GHz 2.x GHz % of urban population covered(2) ~4.9% ~5.6% ~25.6% ~34.5% ~37% ~40% % of city coverage (area) > 85% 23 Tata Communications :: WiMAX Journey (1) Rollout in progress Confidential & Proprietary (2) This is a percentage of the urban population of the cities planned to be covered by Vertex
  • 25. Not letting the lack of spectrum in the “standard” bands affect Wimax rollout Industry Reactions Tata Comm. Action Forum Support Yes, we can give Deploys/deploying 3.3GHz profile “What is 3.3 Ghz largest “d” network you “d” equipment Wimax??!!!” at 3.3 What do you Yes we will publish Tata Comm places Publish mean by orders with integration/IO IOT and share data independent vendors independent CPE standards beyond for HL integration with full integration just MAC/PHY in “d” in “d” ? 3.3 e!!! – come 3.3 e yes but at 5 RFQ floated and trials Create 3 Mhz profile back after “don’t commenced in 3.3e Mhz >> 3.3 e at 3Mhz know how many also months” 24 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 26. Crystal Gazing, India market….circa 2013 Largest WiMAX subscribers will be in India :: ~ 30 mn BB subscibers WiMAX contributing to 60+% of all Broadband connections 5-6 networks each having 60/70 Mhz spectrum 700 Mhz, 2.3, 2.5 and 3.3 Ghz networks live 3 Mhz, 5 Mhz and 10Mhz profiles deployed in India – adaptive channel size selection Quad band SS available at USD 20 In Summary, India promises to repeat the Mobile revloution? Are you part of it or out of it? 25 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 27. Tata Communications – Taking Broadband to the masses with Wimax 26 Tata Communications :: WiMAX Journey Confidential & Proprietary
  • 28. Thank you Prateek Pashine June 16, 2008 ©2008 Tata Communications, Ltd. All Rights Reserved. Confidential & Proprietary

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