India: Migration from

Narrowband to Broadband
WiMAX Forum India Event
New Delhi
October 15-16, 2008

Sridhar T Pai
CEO and Founder, Tonse Telecom
Copyright © 2007 Tonse Telecom.com. All rights reserved.
 Re
Br a d y f
oa
db or
an
d
 A Telecom Paradox

Cellular ISP
Cellular Explosion.. Broadband Implosion
Tariffs Low High

End user device $ High Low 4.73

5 350
Competition High Low 3.87 300
4
250
Service options High Low
in million

in million
3 2.339 200
QoS High Avg 305.24 150
2 1.35 261.09

De-regulation 100
High 166.05 Low
1 0.18
0.008 0.019 98.13 50
14.17 26.15 52.2
VAS eco-system High Low
0 0
2003 2004 2005 2006 2007 2008 2008(Aug)
Forum power High Low

Cellular Subscribers Broadband Subscribers

Demand High Low

killer App Voice Data

Broadband Target and Actuals

20
Broadband Subscribers (mill)

18 Wi-Fi
WiMAX
16 EDGE
3G/HSPA

y
nit
14 DSL
Cable

rt u
12 Metro-

po
Ethernet

Op
G 20 GPON
10 ap

8 9

6
4
3 4.73
2 2.1 3.13
0.835
0
2005 2006 2007 2008 (Aug) 2010

Broadband Subscribers TRAI targetted Broadband Subsrcibers

 Accumulated WiMAX subscribers in India
25,000,000

20,000,000
WiMAX Forum
27.5 m subs
15,000,000

10,000,000

5,000,000

-
2006 2007 2008 2009 2010 2011 2012 2013 2014
What your subs are Asking..
•• Clutter
Clutter free
free environment
environment for for internet
internet access
access
•• Access
Access on on the
the gogo
•• Distribution
Distribution of of signal
signal to
to be
be uniform
uniform in in aa hotspot,
hotspot, in in case
case there
there is
is aa wall
wall between
between the
the
router and the place of browsing the signal should
router and the place of browsing the signal should not fluctuate not fluctuate
•• Appropriate
Appropriate catchment
catchment area area for
for access,
access, there
there shouldn’t
shouldn’t be be frequent
frequent signal
signal
fluctuations
fluctuations
•• Seamless
Seamless connectivity
connectivity whilewhile searching
searching for for information
information
•• Reliable
Reliable connection
connection
•• Need
Need toto be
be inin touch
touch (connectivity)
(connectivity) whilewhile on
on road
road –– driving
driving
•• Protection
Protection of of data
data
•• Single
Single user
user name
name and and password
password for for multiple
multiple city
city usage
usage
•• Ready
Ready toto spend
spend Rs.2000
Rs.2000 (post
(post paid)
paid) onon aa monthly
monthly basisbasis
•• Single
Single bill
bill for
for phone
phone asas well
well as
as Wireless
Wireless usage
usage
•• Expect
Expect 0.5
0.5 Mbps
Mbps availability
availability asas the
the speed
speed at at the
the high
high end
end
 What your subs are complaining
about..
•• 43%
43% of
of all
all 18-24
18-24 ageage group
group •• For
For 20%
20% of
of all
all mobile
mobile users,
users, poor
poor
respondents
respondents werewere dissatisfied
dissatisfied speed
speed was
was the
the biggest
biggest concern
concern
because
because ofof speed
speed && 49%
49% due
due to
to
disconnection
disconnection issues
issues (likely
(likely •• 40%
40% of
of all
all Wireless
Wireless users
users
because
because ofof their
their fun
fun based
based needs)
needs) complained
complained ofof frequent
frequent
disconnection
disconnection ofof signal
signal as
as an
an issue
issue
•• Low
Low levels
levels of
of mobile
mobile internet
internet
satisfaction
satisfaction clearly
clearly indicates
indicates low
low •• Frequent
Frequent disconnection
disconnection is is the
the major
major
popularity
popularity for
for that
that route
route Interest By issue
issue across
across all
all laptop
laptop users
users
Age Groups
Access Mode
Of Interest
Unmet
Needs/ Pain points
with Internet

Profiles Of
Metro Of
Interest
Interest
•• Half
Half of
of all
all sales
sales personnel
personnel cited
cited •• New
New Delhi
Delhi and
and Mumbai
Mumbai ledled in
in terms
terms
frequent
frequent disconnection as
disconnection as the
the of
of dissatisfaction
dissatisfaction levels
levels where
where New New
biggest
biggest pain
pain point
point Delhi
Delhi expressed
expressed displeasure
displeasure on on
frequent
frequent disconnection
disconnection andand Mumbai
Mumbai
•• Executive
Executive profiles
profiles seem
seem more more complained
complained of of poor
poor speed
speed ofof access
access
interested
interested in reliability of
in reliability of internet
internet
connection
connection (uniform
(uniform distribution
distribution of of •• Mumbai
Mumbai andand Hyderabad
Hyderabad respondents
respondents
signal
signal across
across the
the coverage
coverage area, area, complained
complained the
the least
least due
due to
to high
high
frequent
frequent power
power outages
outages and and price
price of
of connectivity
connectivity (12%
(12% and
and 8%
8%
signal
signal fluctuations at
fluctuations at the
the access
access respectively)
respectively)
spot)
spot)
•• Frequent
Frequent disconnection
disconnection && poor
poor
speed
speed are
are foremost
foremost issues
issues across
across all
all
cities
cities
WiMAX eco-system forming but Discreet

Noida

Delhi

Mumbai

WiMAX Activity
Pune
Hyderabad
WiMAX Coverage

WiMAX CPE/BS WiMAX Chipset

R&D R&D
Bangalore Bangalore 16 5
Chennai
Chennai 1 1

Delhi 0 1

Gurgaon 3 0

Mumbai 0 1

Hyderabad 2 0

Noida 2 1
While Falling ARPUs will be a Reality..

Broadband ARPU - of a leading Broadband Service

Provider (Per Month averaged over a Qtr)

2000
1932 1929 1948

1797
1760
1800 1715
INR

1600

1400
March 31, June 30, Sep 30, Dec 31, Mar 31, Jun 30, 2008
2007 2007 2007 2007 2008
..Powerful Drivers for Mobile Broadband
Mobile
Broadband!

Web 2.0
 What may have been ignored..
• Plenty of Action as Landscape will Shift

• Not Metros, Not Rural but tier 2 towns

• ‘Seeding Time’ for Rural market is Now

• While Access is taking all the Focus, native Content will

become Important
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end technology research, marketing
consulting company focused on the telecom
vertical

Our Services
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Read
y for
Wi M
AX!!
!
Thank you!

Tonse Telecom Pvt. Ltd.

#446, 2nd Cross, 9th Main Road,
HAL 2nd Stage, Bangalore
India – 560038
Phone: +91 98860 02252
stpai@tonsetelecom.com
www.tonsetelecom.com