1. 16 September 2009
Role of 3G in India
T R Dua
Deputy Director General,
Indian Mobile Industry
3G- Ideal Solution for India
- 3G Services
- Economic Benefits
- Market Drivers
Mobile Broadband for Rural India
- Potential Applications
Making 3G Successful in Rural India
- COAI Views
- Affordable Access to Rural Areas
HSPA & WiMAX
- HSPA Advantages
- HSPA Specific Cases
- WiMAX Characteristics
3. INDIAN MOBILE INDUSTRY
4. THE INDIAN MOBILE MAGIC
“The transformation in telecommunications has accomplished what
our socialist policies couldn't — empower the less fortunate”.
…… Shashi Tharoor
Mobile has permeated almost every segment of the
everyday life of citizens 4
5. INDIAN MOBILE – CURRENT STATUS
157 operational networks
Investments around Rs. 150,000 crores
Mobile subscriber base of > 460 million,
- Growing @ 10-12 million + every month
Lowest Mobile tariffs and one of the lowest ARPU (Average revenue Per
User) in the world.
Highest MoU (Minutes of Use) globally
Rural subscriber base served by private GSM operators > 95 million by
- Growing @ around 3-4 million every month, i.e. nearly 50% of the GSM
subscriber adds are from the rural areas
Indian Mobile : Sustained Stupendous Growth
6. WORLD’S 2nd LARGEST WIRELESS
Subs in mn
2002 2003 2004 2005 2006 2007 2008 Jun'09
Year ended December
Highest subscriber additions globally !!
Records tumbling month after month…
7. THE IMPACT OF MOBILE PHONES IN INDIA
- ICRIER RESEARCH FINDINGS
Telecommunications is a critical building block for the country’s
Access to communications needs to be seen as a foundation
on which other initiatives can be built.
In under served areas, mobile phones can help to widen
markets, create better information flows, lower transaction
costs and substitute for costly physical transport
Small and medium sized enterprises (SMEs) and urban slums
gain maximum benefits in enhancing their businesses
through the use of mobile services.
Amidst the spreading gloom of the economic downturn following the
global financial meltdown, the Indian telecom sector provides the
proverbial silver lining…………….”Dr. Rajiv Kumar, Director, ICRIER
8. THE IMPACT OF MOBILE PHONES IN INDIA
- ICRIER RESEARCH FINDINGS
Information via mobile, such as weather reports and market
prices, has begun to have an impact on productivity for the
Real benefits of telecommunications only start when a region
passes a threshold penetration rate of about 25%. Many
areas have still not attained that level, which indicates the
importance of increasing teledensity as soon as possible.
Indian states with higher mobile penetration can be expected to
grow faster, and by 1.2% points for every 10% increase in
mobile penetration rate.
These benefits are from 2G, with 3G – expected to
increase several fold
9. 3G- THE IDEAL SOLUTION FOR INDIA
Will serve as an ideal platform to deliver low cost voice telephony to
Extremely effective tool in driving penetration to the huge addressable
market in the rural areas.
Increased economic opportunity through tele-education, tele-
medicine, e-governance, etc.
Facilitate achievement of Government’s objectives on broadband
Cater to the demand for Hi-Speed data services in the urban markets
Will ease spectrum constraints on 2G networks & accommodate
10. BROADBAND STORY SO FAR
Growth in Broadband Subscribers (in mn)
Mar' 05 Mar' 06 Mar' 07 Mar' 08 Mar'09 July'09
Source - TRAI
FOR BROADBAND- MOBILE IS THE ANSWER
11. GLOBAL TOP TEN MOBILE BROADBAND MARKETS
The scenario to change
significantly in the
India and China
combined share to reach
20% of the global mobile
broadband Subs by the
end of 2013.
THE FUTURE OF BROADBAND IS IN THE EMERGING
Source: Informa Telecom & media estimate,2009
12. MOBILE BROADBAND FOR RURAL INDIA
In rural India, fixed line broadband connectivity is very low;
Many will probably first experience broadband on mobile handsets
3G will bring in much needed broadband connectivity for rural India.
Internet Broadband Wireless internet thru mobile
Key success factors for Mobile 120
Subs in Millions
Wide spread reach of
Affordable access to PCs
20 12.2 12.9 13.5
4.4 4.9 5.5 6.2
June'08 Sept'08 Dec'08 Mar'09
IN RURAL INDIA, WHEN YOU THINK BROADBAND,
THINK MOBILE BROADBAND
Source: TRAI 12
13. 3G SERVICES
High speed internet connectivity
Faster video/data downloads
New services like video telephony, video on demand, mobile TV &
other entertainment related services
Rich Multi-media services with streaming audio and video like video
Online Gaming with more bandwidth, security, and reliability
Location based services
Personalized services, where content can be pushed to users
VOICE was killer app on 2G
CHOICE would be killer app on 3G
14. 3G WILL THUS STIMULATE ECONOMIC ACTIVITY
Immediate value creation - GDP contribution from direct network investments
Multiplier effect - On suppliers of equipment, content, etc
Foreign Direct investments - as a result of good ICT infrastructure
Productivity increases - More efficient business processes
Human capital formation - Increase in knowledge and skills as well as
improved health services
Productivity gains to multiply with increased delivery of
data services; upto 1.4% points for every 10% increase
in mobile broadband*
* Source - McKinsey
15. MARKET DRIVERS FOR 3G IN INDIA
Address capacity problems in 2G networks
For voice services in Spectrum limited situation
Better end-user experience in terms of voice and data
Cost efficient mechanism for Mobile Broadband
Optimized investment for affordable service
Broadband where ever there is mobile – reach
Would give significant impetus to overall internet penetration
3G – The big technology leap for Rural India
Facilitate to meet USO services requirements
Future proof investment in rural India
Can be turned in to mass market service without wastage of investment
Development of Regional Content
Augment GSM Infrastructure for WCDMA – low deployment cost
Availability of WCDMA handsets at reasonable price
16. MOBILE BROADBAND FOR RURAL INDIA
17. GROWTH IN RURAL MOBILE CONNECTIVITY
120 Pvt GSM rural subs (in mn)
100 91 95
80 69 72
Jan'09 Feb'09 Mar'09 Apr'09 May'09 Jun'09 Jul'09
> 50% of the new connections now outside urban areas…
95 mn rural subscribers as of July’09 served by Pvt GSM
– Addition of >3 mn per month
In future, maximum growth to come from Rural areas
18. POTENTIAL APPLICATIONS
Overcome the lack of doctors in rural areas.
Remove language barriers through Multi-
Bridge lack of visual examination through
Enable prescription service through
Connectivity to super specialty hospitals & Healthcare
Provide high bandwidth access for e-
Provide video based Computer Based
Extensive use of web casting/ multi casting
to educational institutions
19. POTENTIAL APPLICATIONS
Provide government information like policies,
Enhanced public services efficiency in areas
like municipality, state electricity board,
Dissemination of agricultural information to
the farmers; whether report, info on seeds
Information on Market prices
Easier transaction through direct relationship
Commodity information portal
& Information 19
20. POTENTIAL APPLICATIONS
E-Procurement for Wholesale (Mandi) and
E-transactions for supply chain & payment
Entertainment E Commerce
- Audio & Video Downloads
- News etc.
With mobile broadband, these services will become richer
and even more effective
21. MOBILE BANKING FOR RURAL INDIA
85% of rural India is unbanked
Cost of funds – biggest deterrent for banks to move to rural areas
Current Scenario Banking Future
• Branch – $ 1.1- $ 1.3
• ATM – $ 0.4
• Call Centre – $ 0.3
• Cheque – $ 0.02 TELCO Infrastructure
• Internet – $ 0.08
Secure Mobile Matchbox
Mobile to provide affordable
banking solution Low cost
Mobile Banking essential for Financial Inclusion
22. MAKING 3G SUCCESSFUL IN RURAL INDIA
23. COAI VIEWS
Subsidizing in rural areas
power supply / diesel
non-conventional energy sources
Improved utilization of USO Funds through innovative new forms of
support for Rural connectivity.
Nominal & Transparent Right of Way (ROW) charges
Reduction of the burden of multiple levies and duties on the sector
It consists of-
Annual spectrum charges
These charges needs to be rationalized.
The total of all the above levies on telecom industry works out to
approx. 30 percent of their total revenues
24. COAI VIEWS
Already spectrum in 900 MHz, 1800 MHz is much fragmented.
Limited spectrum available in 2.1 GHz for 3G.
Issues still needs to be resolved in 2.5-2.6 GHz band.
India needs to consider new frequency bands (like 700 MHz)
for the future growth of mobile/ mobile broadband services.
25. COAI VIEWS
700 MHz (698-806 MHz) band best suited for HSPA/ LTE
This band especially relevant for India, as majority of future growth
expected from rural India.
Because of its excellent signal propagation characteristics, less
infrastructure is required to provide wider coverage
Communication services can be provided in rural areas at lower
cost (savings in Capex)
Will help to bridge the ‘digital divide’ in India
Provide affordable mobile broadband to help develop a
knowledge based economy.
India needs to take a lead position in allocating this band
to drive economies of scale
26. Why 698-862 MHz band critical?
It is approximately 70% cheaper to provide mobile broadband coverage at
frequencies (approx. 800MHz) than over 2100MHz
This means networks can be rolled out quickly, cost effectively, bringing cheaper
services to consumers
Number of base stations
12 2 5 7 10 15 20
700 850 2100 2600 3500 5800MHz
Source: SCF Associates Study
27. COAI VIEWS
Affordability of Mobile Broadband
Reserve Price of 5MHz 3G spectrum set @ Rs. 3500 crores, 20MHz of
WiMAX (BWA) spectrum set @ Rs. 1750 crores
Reserve Price of Rs. 3500 crores for 3G spectrum is very high– will
affect business case – resulting in lower participation & making for
less robust auction result
3G best placed technology to deliver on the Government’s mobile
High auction prices will impact the affordability of 3G and could
completely derail the mobile broadband revolution for India
Reserve price should be set at a level,
to provide affordable broadband services
28. COAI VIEWS
Regional Content – A Priority
70% of India resides in the rural areas – language used to
converse, transact & interact is the local language
There are 22 official languages in India
Applications useful to the local population will have to be developed to
revitalize the rural economy by creating rural micro enterprises
These micro enterprises could be in the areas of agriculture, food processing
industry, animal husbandry, fisheries, sericulture, handicrafts, etc.
With the availability of local language services and localized applications /
content, the rural consumers will be far better equipped to accept and
migrate to a mobile information society
Service providers have already taken major initiatives and
significant progress has been made in this direction.
29. AFFORDABLE ACCESS FOR RURAL AREAS
Initiatives by industry to reach rural masses:
– Lifetime prepaid
– Micro prepaid cards
– Innovative tariff plans, especially for rural areas
– Low cost handsets
Rural connectivity highest priority for Government
as well as Operators
30. AFFORDABLE ACCESS FOR RURAL AREAS
Initiatives by Government to reach rural masses:
– USO Support for towers
• 1st Phase: ~ 7,871 towers in 500 districts spread over 27
states for provision of mobile services in specified rural and
remote areas, where there was no existing fixed wireless or
• 2nd phase of USO initiated, broadband services also included
– Guidelines on Infrastructure Sharing
31. GOING FORWARD
Mobile infrastructure has proved itself to be the most
effective medium to deliver benefits of CONNECTIVITY to
Need to deliver more Technology-based Solutions to the
Rural Masses while Overcoming many Inherent Constraints
through Innovative Solutions
Industry fully committed to work with Government to
deliver benefits of Connectivity & Mobile Broadband
to Rural India
32. THE RACE FOR WIRELESS BROADBAND
HSPA is the set of technologies standardized by 3GPP3 that defines
the migration path for UMTS operators worldwide. HSPA includes
HSDPA (High Speed Downlink Packet Access), HSUPA (High Speed
Uplink Packet Access) and HSPA Evolved .
It is defined as Worldwide Interoperability
for Microwave Access (WiMAX) and is
based on the IEEE 802.16 family of
standards. Mobile WiMax could be a
Both have been recognized by ITU as IMT Radio Interfaces
34. SOME QUICK FACTS- HSPA
Commercial Deployments – 267 Operators in 114 Countries
Speeds – users are enjoying speeds of 1 Mbps & above
Performance improving rapidly – several networks now reaching peak rates
of 14 Mbps
Huge range devices available – 1,470 HSPA devices from 171 vendors, with
device types including embedded notebooks, handsets, smart phones, USB
modems (dongles), datacards, wireless routers, wireless gateways
Usage is rising rapidly – HSPA operators across the world are reporting a
surge in data traffic
Cost effective broadband for rural areas and emerging markets – operators
are increasingly using HSPA to bring broadband services to communities
beyond the reach of fixed networks
35. SOME QUICK FACTS- HSPA
Uptake is accelerating – the number of HSPA connections is set to reach
180 million by the end of 2009 from over 88 million in January 2009 and 24
million at the end of 2007. By the end of 2012, HSPA connections worldwide
are forecast to be over 900 million
Leverages the GSM family – HSPA builds on the successful GSM technical
and commercial model, offering users secure network interoperability access
and global roaming
Enjoys a high level of vendor support – the vast majority of the world’s
mobile equipment vendors support HSPA technology and there is no one
single dominant player, ensuring vigorous competition
Increasing speed – 21 Mbps through HSPA+ Release 7, while Release 8 will
deliver peak bit rate of 42 Mbps
Source - GSMA
36. THE HSPA ADVANTAGE
With Existing 3G/UMTS
Consistent with 3GPP standards.
Better Quality of Service assured
Short Transition time Interval
Reduced Response Time
Use of Harmonized Spectrum
Economies of scale
Interference free operations
Excellent System Capacity
Doubles base station capacity of WCDMA.
Fast Link adaptation.
Fast hybrid Automatic Repeat Request.
37. The HSPA ADVANTAGE
High Network Throughput Efficiency – Through fast Scheduling
Integration of voice with Data
Dynamic Allocation of bandwidth
High Bite Rate Transmissions
Ever-improving performance, with commercially-proven transmission
bit-rates of up to 14Mbps today and up to 42 Mbps in the near future
LTE (Long Term Evolution) will deliver further enhancements in peak
rates (exceeding 100Mbps)
Fewer Number of sites required.
38. HSPA: SPECIFIC CASES
AT & T (formerly Cingular wireless) @ US
Deployed world’s first large scale HSDPA
Resulted in rapid growth in data ARPU.
– To become most successful mobile TV
– Launched live video share calling.
Mobile TV Provider
Superior spectrum efficiency
– Competitive pricing of data services.
Better coverage, especially in-building
HSPA has proved itself in the most competitive US market
39. HSPA: SPECIFIC CASES
Telstra @ Australia
World’s largest national HSPA network.
– Rolled out in just 10 months.
– Reaching 98% of the population.
Peak network download speed boosted to
3.6 Mbps from 384 Kbps – with low latency.
– Mobile TV.
– Video Conferencing.
Even in the countryside, customers
experience data rates in > 1 Mbps, while
those closer to cell sites experience access
Telstra leveraging the assets
at over 2 Mbps.
of existing 2G Infrastructure
Brought broadband services to many remote
communities for the first time.
40. HSPA: SPECIFIC CASES
MTN @ South Africa
MTN began testing HSDPA series in
November’05 and in March’06 it became first
operator in South Africa to launch commercial
service, and the eleventh worldwide.
– Fast and reliable Internet access to remote
– Offers to very poor community access to:
• Voice Telephony services. Bringing Broadband
to the masses
• Cheap Internet services.
– Broadband and computing to low-income
– Boosting education and health care.
HSPA is delivering faster speeds to wider
41. HSPA: SPECIFIC CASES
MobilKom @ Austria
Launched HSDPA in January 2006.
– Delivering download speed of 1.8
June 2006, 1st upgrade
– Boosting speed up to 3.6 Mbps.
November 2006, presented first
lightening fast HSUPA
– Offers the highest currently
available upload speeds.
Austria’s HSDPA Network
– Real time mobile video streaming.
HSPA has provided a new way of working fast, reliably
and cost effectively to the people of Austria
42. HSPA offers a superior option due to:
- Operationally proven superior coverage
- Spectrum Efficiency
- Economies of scale
All technologies have ample scope to play their role.
However, HSPA is expected to maintain & increase its major
share of this market
43. LONG TERM EVOLUTION
LTE is an all IP network based upon TCP/IP, with higher level services
such as voice, video & messaging, built on top.
LTE has considerable flexibility, supporting channel bandwidths from
1.4 MHz to 20 MHz.
- This optimises the use of radio spectrum by making use of new
spectrum and refarmed spectrum opportunities.
Operators evolving to LTE from GSM/WCDMA/HSPA will maintain full
backward compatibility with legacy networks.
LTE will have scalable channel bandwidths using OFDMA with both
TDD and FDD operation.
44. LTE BENEFITS
All IP nature of LTE means converged services will become a reality
It can deliver the massive capacity at a much reduced cost per bit.
Applications like High Definition (HD) video streaming, mobile
gaming will be possible with LTE.
Low latency (below 10 ms) & higher Data throughputs.
LTE is on track, attracting global industry support
- 39 LTE network commitments have been made by 19
45. COAI PROJECTIONS FOR THE FUTURE
1200 1 bn
2007 2008 2009 2010 2011 2012 2013 2014 2015
Even @ 10% broadband subs, by 2013, there would be >100 mn
broadband subs in the country.
GSM/3G/HSPA system with its established roadmap & proven
capabilities forms an appealing ecosystem & is well positioned
to succeed in mobile broadband.
3G is one of the most cost effective ways to deliver mobile
broadband to the masses.
Expectedly 3G can single-handedly achieve far more in terms of
bridging the digital divide than any other technology