Conference on Rural Telecom Markets by Tele.net

1. Technology Ecosystem
Connecting India
Deepak Mahajan
Head – Marketing
Motorola
Motorola General Business Information, MOTOwi4 Wireless SP, Rev 1
Add additional legal text here if required by your local Legal Counsel. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2007

2. India: Strong Economic Fundamentals
Increasing Household Disposable Income(1) Increasing Per Capita Income(2)
Avg HH disposable income
Rupees (‘000)
CAGR CAGR Urban
500
4.6% 5.8%
3.6% 5.3%
2.8% 3.6% All India
250
Rural
0
FY95 FY90 FY95 FY00 FY05 FY10E FY15E FY20E FY25E
Increasing Literacy(2)
• Climbers – Moving from Middle to Upper middle class
are aspirators to change and hence product consumers
80 75
• 12.5% of World consumers in India ~ 750+ M
70
55 • 43% of India income is from Rural (Tax free)
60
50 43
• 42M banking users in Rural against 27 M Urban
36 • 41 M Kissan credit card users vs.27 M urban users
40
30 • 12% growth of FMCG & consumer durables
20
10
0
FY 1981 FY 1991 FY 2001 FY 2011E
(1) Source: McKinsey Report: The ‘Bird of Gold’ dated May 2007
(2) Source: India stats website; 2011 rate is India’s 10th Economic Plan objective

3. Rural India – Huge Potential…
• Not enough wireline infrastructure
• Legacy network with long loop lengths
• Unorganized cable infrastructure with poor network
Current • High Buried Access Costs
Impediments • 200 months of ARPU as Capex
for growth • Limited green-field deployment
• 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
for choice • Potentially large coverage and faster expansion
Wireless is the best technology to drive internet growth in Rural India

4. Bridging the Digital Divide
Demand and Policies Converging
Demand
Business & Consumers
Telecommunications services
Internet access
Web applications
Information
Education Health
Broadband Internet Access
National Prosperity Imperative
Business Consumers
Governments
Favorable regulatory environment
Favorable policies
Spectrum allocation
Outside investment
Policies

5. Focus in Rural Areas
• Broadband coverage for all secondary and higher secondary schools
by the year 2009.
• Broadband coverage of all public health care centers by the year
2009.
• Broadband coverage for all Village Panchayats (Local Rural Bodies)
by the year 2009.
• Plan to provide citizens services in 1,00,000 Community Service
Centres

6. Ecosystem Transformation for the future
Access and Core Service and
Device Backhaul Applications
Network
Messaging
Telephony
Ringtones
Voice Centric Narrowband Usage Connectivity Centric Vertical Apps
Messaging
Telephony
Ringtones
Internet
Internet Apps
Media,
Broadband Usage Internet Centric Vertical/Horizontal
Internet Centric
Apps
*Yankee Group Research

7. True “Personal Broadband” Devices
Peeeeeee Beeeee
aaa

8. Evolving Technologies Targeting Personal
Broadband Opportunity
Broadband Centric
Fixed Personal
WiMAX
BB Broadband
Advanced
3G
2G/3G
Voice Narrowband Centric
fixed portable mobile
*Yankee Group Research

9. Rural Telecom Market Dynamics
Green Solar Wind
• Rural populations
• Infrastructure
• Reliability
Effective in all Markets

10. Local Sourcing Example
Reach Strong-Box
Key Reach target – reduced cellsite cost
Specific - Customer request for lower cost outdoor
Local sourcing targets lower cost
Specification, local build, avoids duties
Houses standard Horizon II 4/4/4 macro
Can upgrade to take 3G
Direct air cooling proven
reduces power requirement
Distributed format easier for remote sites

11. Development Example
Reach Eco-Site
Running for 12 Months
Wind-Solar Combination Cellsite
Horizon II DC Mini 2/2 Configuration
via Voltage Regulators to Battery
Site Monitoring & Power System
Management

12. Wind & Solar Trial
• 1st Commercial Wind &
Solar powered cell site
• Solution Selection & Integration
• Power Management Solutions

13. Motorola Solutions
Moving Technology Forward
Fuel Cells Reflow Batteries

14. Motorola wi4 Solutions
Backhaul Mesh Canopy WiMAX
Point-to-point, Secure connections over Proven broadband High-performing,
high throughput Wi-Fi & public safety bands wireless access standards-based
IP connectivity solution broadband wireless access

15. India’s First Live WiMAX Network at IIT-D

16. Multiple Applications for personal broadband
Voice Telephony
Video Telephony
IP Television
Messaging
Mobile TV
Service Delivery Platform
Craigslis
t
IMS
Service Distribution Environment
Network
*Yankee Group Research

18. Final Thoughts
• Wireless Broadband is a viable, economic
option today, as a
– Last mile alternative
– “Rusty” copper bypass
– Greenfield network deployment
– Bridge for the Digital divide
• Wireless Broadband is potentially the next
major telecom leap
Broadband – Disrupts current technologies e.g. cellular,
(WiMAX) DSL, fixed line
solutions to
– Disrupts current cost models
reach your
– “Overnight” telco creation
Business Needs
• Motorola’s is positioned to lead the way with
over 75 years’ of RF innovation and a proven
ability to deliver “end to end” solutions