Wireless Infrastructure in India Prateek Pashine VP – Planning
Population 1.1 billion Mobile Connections 200 million Urban Population 300 million Cable Connections 60 million Fixed Connections 45 million Internet User 40 million Broadband Connections 3.1 million Internet Connections 8 million Indian Addressable Market – Huge Potential The wide opportunity available to be tapped Total Population Addressable population People with Phone (Wireline/ Wireless) connections Cable/ Internet/ Broadband Connections Provisioning of service through wireless technology would enable conversion of addressable market into subscribers Source: Industry sources
Context of Wireless in India Wireline Market Wired last mile dominated by govt. incumbents & Local Cable Operators (LCO’s) Cost and roll out challenges have ensured a negative growth of Wireline services in India Lack of government and incumbent support on unbundling of local loop High costs for Greenfield deployments of wired access, hence limited Greenfield rollout Costs closer to USD 1000 per sub in Metro cities – 120 months ARPU (voice or BB) Cable Networks not capable of delivering two way services Fragmented industry 100,000 cable operators each with about 600 customers per network Infrastructure not organised both in terms of city layouts as well as sharing policies No clear policy incentives in place for promoting wireline No policies on express approvals No relief on rev share to Govt on wireline and hence on the same ARPU it substantially makes sense to look at Wireless
Context of Wireless in India Services Customer preference on application rather than mode Customers willing to take FWPs and not wanting to wait for a wire to be pulled in Clear agnostic behaviour towards type of connectivity VoIP allowed only for CUG and international calling currently for ISPs; unless by universal access service license holders Vonage like services currently not permissible Experimentation with content services – beyond entertainment, lower bandwidth – high utility Pricing BB Price points have already reduced to levels of dial up costs Roughly 10 hrs of dial up usage per month = BB per month commitments; $6 p.m.
Wireless Broadband Enablers :: India Market Regulation
Contiguous and large spectrum bands
Globally recognised bands – freeing up of DoS, DoD spectrum
Content / utility to fuel demand, not just PC growth
Basket of Services rather than One :: Killer Cocktail
Ecosystem Market Local Travel time ever increasing….those traffic jams!!! Business travel on an all time high
Wireless Technologies Spectral Efficiency on the rise It is defined as how much through-put can be delivered on 1Hz of spectrum – bps/Hz Data-centric Wireless technologies maturing
Wireless - Opportunities Applications – a whole new set of applications become available with wireless While they would be ‘bandwidth’ intensive in some cases, in most cases, Convenience is the overall rider Anytime Anywhere ARPU possibilities come into play
IEEE has proved what has been a century old suspicion in the world scientific community that the pioneer of wireless communication was Prof. Jagdish Bose (Indian Scientist)and not Marconi.
In Summary :: Wireless in India Broadband poised for take-off in India with 4 times Subscriber base in 3 years PC alone not the entry barrier for Internet adoption, Utility very important Wireless initially to be used pre-dominantly for Fixed Broadband applications Investment in Content & Network ahead of adoption a pre-requisite No Killer App but Killer Cocktail
India could well be only a Wireless Broadband country, with almost negligible Wired Broadband, in the next 10 years
WiMAX poised to contribute a Lion’s share in this Growth Engine