Tata Communications launched WiMAX services in India in 2007, becoming one of the first operators to deploy WiMAX in the country. They have since deployed over 5,000 sectors and acquired over 60,000 retail and enterprise customers. Tata aims to provide high-speed broadband to residential and SMB customers using its extensive telecom infrastructure assets, including a global Tier 1 internet backbone and 40,000 km of domestic fiber. However, first mile deployment challenges around cost, municipal clearances and time remain barriers in India.
2. Agenda
TATA’s
Ambitions in WBA
Broadband – The Bangalore
Experience
Current India
Perspective
Lesson Learned
&
Way Forward
1
3. India: Strong Economic Fundamentals
Third Largest Economy by 2050(1) With Highest Projected Growth Rate(1)
GDP (US$bn) GDP CAGR (2005-2050E)
50,000 44,453
10% 8.9%
40,000 35,165 7.5%
8%
30,000 27,803 5.9%
6% 5.5%
20,000 4%
2.5%
10,000 6,673 6,074 5,870 1.8% 1.7%
3,782 3,603 2% 1.3%
3,148 0.9%
0 0%
Germany
Germany
China
India
Japan
Russia
France
US
UK
US
UK
China
India
Japan
Russia
France
Brazil
Brazil
Increasing Per Capita Income(2) Increasing Household Disposable Income(3)
Per Capita Income (US$) Avg HH disposable income
CAGR : 10% Rupees (‘000)
1,140 Urban
1,200 500 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
(2) Source: Street research & RBI website
(3) Source: McKinsey Report: The ‘Bird of Gold’ dated May 2007
4. India: Favorable Demographic Shift
Favorable Shift in Income Profile (1) Growing Work Force (15-59 yrs)(2)
(15-
% of
% of population
population
100% 1 1 2
1 100%
4 7% 8% 8% 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%
43 FY 2001 FY 2006 FY 2011E FY 2016E FY 2021E FY 2026E
0-14 yrs 15-59 yrs >60 yrs
40% 36 Increasing Literacy(3)
% literate population
54 90% 85%
80%
20%
35 70% 65%
22 60% 52%
50% 44%
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 2012E
Huge base of working class with favorable income levels & literacy rate presents potentially large market
literacy
(1) Source: Mckinsey Report May 2007 (Income levels are at real 2001 prices)
(2) Source: The National Commission On Population May 2006 3
(3) Source: Census of India; 2012 rate is India’s 11th Economic Plan objective
5. Broadband Market In India – Huge Potential
Quick Facts
Among the top in Internet user base (Absolute No’s)
With one of the lowest penetration (in %)
With much lower BB penetration
Phone
Connections
Population 1.2 billion ~400 million
Total Population
Total Population
Urban Population
~400+ 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 ~36 million
Connections
~11 million Broadband
Connections
~5 million
4
Source : TRAI, IAMAI, Management estimates (Estimates for September 2007)
6. THE BROADBAND ENABLERS
International
Infra Domestic
City
Last mile Access
Broadband
Triangle
Alliances & Content Device Tax structure
tie-ups Import procedures
Open standards -IOT
5
7. India – Huge Internet Potential…
• Poor infrastructure & support
• No LLU
• Legacy network with long loop lengths
• Unorganized cable infrastructure with poor network
• 2G + services in the country
Current • High Buried Access Costs
Impediments • Very low wire line penetration
• 200 months of ARPU as Capex
for growth
• 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 infrastructure
of wireless telecom players
Wireless to be
• Spectrum auction likely in near term – Transforming the Indian industry
the technology • 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
6
9. Auction is
WiMAX – FIRST OFF THE BLOCKS expected
Dec, 2009
3G Policy is announced
Spectrum to be auctioned to 3-4 players
Greater impact on voice economics rather than data services
BWA Policy is announced
Spectrum - Auction is on the Card
Two block of 20 MHz in 2.5 GHz band and similar number in 2.3 GHz band. Total 4 blocks – 4
Operators
Bidding would be on service area wise basis. Each bidder can get a block of 20 MHz in 2.3
GHz or 2.5 GHz bands in a telecom service area
WiMAX – Available now
ISPs using 3.3GHz spectrum for WiMAX roll-out
At least 3 networks being built in large towns 20 mn subs
Good spectral efficiencies projected by 2010
Already a 4G technology – OFDMA today
Cost of CPE becomes indirect
Promising technology option - need catalyst to fuel the deployment
8
10. Agenda
TATA’s
Ambitions in WBA
Broadband – The Bangalore
Experience
Current India
Perspective
Lesson Learned
&
Way Forward
9
12. Tata Communications Leadership Landscape
Industry Leader State-of-the-art Customers
#1 Global wholesale voice Infrastructure 1,500 Gobal carriers
#1 Global submarine cable 200,000 Route km global 600 Mobile operators
capacity network
“Fortune 1000” of India
#1 International long distance 300 Points of Presence (PoPs)
5,000+ SMEs in India
services 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
11
13. ~5000 Sectors
Deployed
~60,000 Retail
WiMAX FROM TATA and Enterprise
Customers
One of the first operators to
deploy Wimax in India
Deployment for both Enterprise
and Retail customers
Enterprise Deployment :
144+ cities already operational
for meeting last mile
requirements for Enterprise
Customers
Retail Deployment -
Bangalore as a First city was rolled
out for Retail in December 2007
with 132 BTS and
Now , we are live in !
Bangalore with ~200 BTS
Delhi+NCR with ~400 BTS
Hyderabad with ~160+ BTS
Chandigarh with ~60+ BTS
12
14. Mega POP
Major POP Metro E Major POP
Fixed WiMAX Business Drivers
10 G
Major POP
Retail and SME Major POP
2 * 1G
Micro POP
Tata Communication is a leading CWD
Micro POP
M Son JaPa Gor
Broadband Services Providers Micro POP Ring Fari Lud epat m tia akh Bhuba
m
Alla M
pur
dab hian Ghala hab ee neshw
u ad
C Dur
Bhi ad Ka ziab Hi RoGuar Aga Asa
utt Ro
Micro POP lwa Ko rna
Chand
ss ru ac gap urk Ra
wa rtala nso
We have huge Telecom assets Aj ra Al
ta al
m Jod wa Amri
r
ad
igarh ht t
ar k
ur Shi
ela nc
ak hati Jamsh llon Samb
l
g El hi
halpur
Ad
erhp tsar Luc edhpur ur G
1 G Rings
available in terms of – Va Ba
Sil ls ur rie
Bh vas ad lly Su Ja gao and w
Gur Jal kno
MPLS WAN
Ka uon un
np i
tu
Ne
Tirup
llo
athy
An Jam
Aggregation switch sanag
aru Gand rat n ar ur No Vishaka re
r Wara
ip patnam
Global Tier 1 Internet Backbone anch ar
Himathinag
d Ra
nagar
Building switch jk ar
ur De
lhi
Kol
kot
id
a
ngal
M
ed
Vija
Ba Samath
ak
ywa
ot roMe ta Hyd
No 1 – Sub Marine Cable Carrier Ra da
Khsa
or
na
Ahm
edab erab Ka
kinK
Raja
anagar
dai
mund
M
ip ba ad ad
Bang ry
Bh ada ys
Domestic Backbone - ~40,000 km fiber G
wa
ur
Bh
lio
op
Va al
M
u
m
alore Ha
o
or
M
esa
la
Tu
an
n
sh r
r ila In Jab ba Pu Ch
backbone i do i Ve
alp rn
rei ur
i neErna
kula
enn
ai
Coimb
atorei
Bel
Man
Hu gau
galo
mk
dy
uri
a
m bli m
re
Tut
a
Connect ~4000 Cities Pa
nji Sa So
ng la Can Ve Ho
Er
ico
od
m Pu rn
li ne Na Kol
pu
Na non Mad llo Sa sse
Tir
MPLS Backbone connecting 120 Cities r gp hap Sa
si Ahm
ur tar Bar
ore urai re le up ur
Tri Ca Pondic ur
Lake Cowichan LCN ur Auran Ja am Thri
k edna a ch Pa lic m
gar gabad lg ati ssur Ko yTrivand herry
Metro Network in 30 Cities Vancouver
VCW ao lla raum
lg
ut
ha Laurentides LAU
n m All t Cannix2
DWDM and Cisco MPLS Metro ep
Toronto TNK
ey
Cannix W2C W3C
Ethernet in top 8 Cities Seattle SEP Montreal
MTT
Chicago
CT8
First Mile remains a challenge in India
Toronto TTT
New York 32 Ave America NW8
NQT
Tier 1 Internet Backbone
Denver
– Cost , Municipal Clearances , Time Newark NJY NTO
to deploy etc San Jose SQN
Palo Alto PDI
Los Angeles 1 LAA
Ashburn AEQ
WiMAX offers an excellent high speed OC-192
Santa Clara SV1
Los Angeles 2
Atlanta A56
connectivity for Retail and SME GE
OC
LXE
Miami MIA
-48
OC Dallas
13
DTX NOTA MLN
12
OC
3
15. Target Segments
Residential Customers Product /Services
Residential Driven by: High Speed Internet
– Price
Content/Applications
– Fragmented – Wide range of
application/content
– Always-on All You Can Eat
Branch & Small Business Product /Services
SMB Driven by: High Speed Internet
– Dial-up Migrating to broadband Hosted SME Applications
– Looking for Web presence
MPLS L2 and L3 VPN
Branch Office Connectivity/Dealer Product /Services
Network/WareHouses/Factories/Plants High Speed Reliable Internet
Enterprise Driven by: MPLS L2 and L3 VPN
– Reliable and SLA driven Services Managed VoIP etc
– Complete E2E Solution
Managed Services
14
16. Drivers for Technology selection and Roadmap
Remove the ‘Feasibility’ Challenges
Create a citywide network using Wimax rather Retail
than point to point availability
Break Installation Timelines Scope 4 Metro Roll-out
Create a simple easy to install process followed by other key
Migrate to Customer Self Install city coverage.
Scalable for future 1 million subscriber
Timeline
capacity by 2010
3.3 GHz currently
Additional spectrum
Spectrum on 2.3 / 2.5Ghz after
Spectrum Auction in
Dec, 09
802.16d(2007) moving
Standard
to 802.16e(2009)
100s of Mns of Dollars
Investment
($$$$ )
15
17. 144+
WiMax Cities Rolled out by Tata WiMAX
Shimla Cities
Ludhiana Enterprise
Amritsar
Mohali
Patial Chandigarh Retail
a
Karnal Ambala
Hissar
Meerut
Gurgaon Delhi
Gaziabad Bareilly
Faridabad Noida
Alwar
Jaipur Lucknow
Jodhpur
Ajmer Agra
Gandhinagar
Asansol
Allahabad
Ahmedabad
Jhansi Kharakpur
Anand
Ranchi Kolkatta
Baroda
Bharuch Jabalpu
Surat r Jamshedpu
r
Mumbai Nagpur Raurkela
Pun Cuttack
e
Satara
Kolhapur Vizag
Hyderabad
Vijaywada
Eluru
Nellore
Hossur
Mysore
Chennai
Bangalore
Salem
Coimbatore
Palakkad
Trissur
Madurai
Cochin
Ernaculam Tuticorin
Allepey Kottayam
Trivandrum
16
18. Agenda
TATA’s
Ambitions in WBA
The Bangalore
Broadband – Experience
Current India
Perspective
Lesson Learned
&
Way Forward
17
19. WiMAX Case Study: Bangalore – Some Key Facts
India's 5th largest city and the fastest growing
city in Asia.
Silicon Valley of India
Delhi
8 Mn people and over 10,000 industries
86% literacy ( national avg – at 61%)
Kolkata
Mumbai
More than 1000 software companies
Hyderabad
The population of the IT industry folks in
Bangalore Bangalore is 5% i.e 400,000.
Chennai
Higher per capita income
The city is the third-largest hub for HNIs
Biotechnology is a rapidly expanding field in
the city. Bangalore accounts for 47% of
SAFE
biotechnology companies in India.
18
20. Bangalore Case Study for WiMAX Roll out: Coverage & Services
Launched with 150 BTS in Dec 2007, currently at ~approx. 200 BTS
All sites shared with TTSL – (Tata CDMA mobile Operator with 26.33 Million as in
Oct 08).
Backhaul on predominantly fiber
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 16d to have fully interoperable 3rd party
SS
SS installed at between 3 to 12 mtrs height, typically
Over 12,000 customers installed in first 5 months & ~35,000 currently.
19
21. Design Assumptions
•Cell edge – QPSK
Bangalore – Complete coverage •Building edge coverage
•SS height 3 m to 12 m
•85% Probability of service by
area
•Area of coverage approx 300
Sq Km
16 QAM
QPSK
BPSK
20
22. Bangalore Case Study -Product Customization, Retail
2 Mbps is the standard speed for volume-based plans in India –
which are the highest selling plans. However, considering the speeds
and the number of customers expected per BTS sector – customer
offering tweaked to ensure higher % of 256 Kbps sales. Go Unlimited!
% of
Speed
Customers
2 Mbps 5%
1 Mbps 1%
512 kbps 7%
384 kbps 1%
256 kbps 86%
While traditionally, WiMax users are on DHCP to enable them to pick
up the strongest signal rather than tying them to a BTS, the need of a
Static IP for a SMB customer in effect, locks the SMB to a BTS.
21
25. 5-10%
Of ARPU
Open Garden Portal : Content and Applications
http://www.tataindicombroadband.in/
24
26. Some of our partners – Home Services
Applications / Services Entertainment/ Video Education/ Learning
25
27. Current Product Portfolio – Business Services
E Biz Applications
Field Force Automation - mSales
E-Biz Collaboration
Collabrix - Web meeting tool with secured IM, VoIP Audio,
Web conf
Collaboration Live Documents - create, save & collaborate docs on a
browser
Hosted Intranet / Extranet - myeoffice
Security Security
PC Security
Server Security
Mobile Security
Hosting PC Back-up
Web filtering – e-checkpost
Mobile Back-up (Under Development)
Hosting
Domain Name Registration
Website Hosting (Windows)
Business Mail
Web2SMS
26
28. Agenda
TATA’s
Ambitions in WBA
Broadband – The Bangalore
Experience
Current India
Perspective
Lesson Learned
&
Way Forward
27
29. Key Learning: Technology and Customer Experience
The WiMAX Advantage: Bangalore
BENEFIT MEASURE
Over 85% Bangalore covered
Extensive Coverage & increasing
Increased Reliability Complaints lower by 50%
Network Stability 99.85% Network Uptime
Increased Efficiency 97% Orders installed within 7 days
Easier Complaint Management Over 60% complaints resolved on Call
Retail 0 28
30. Spectrum
Road Ahead … Auction
On Card
16”d’ Roll Out 16”d’ Roll Out 16”e” Roll Out
for for Pan India
Retail Cities Enterprise Network
Cities
Highlights Highlights Highlights
•3.3 Ghz •3.3 Ghz •2.5/2.7 Ghz
•4 City Roll Out •141 City Roll Out •Pan India Deployment
•Retail & Enterprise Req •Only Enterprise Req •Retail & Enterprise Req
•Extensive Coverage •Limited Coverage •Extensive Coverage
•Fixed/Outdoor CPE •Fixed/Outdoor CPE •Fixed/Nomadic/Mobile
•Carrier Class Voice •USB/Indoor CPE
•TDM Like Services
•Indoor CPE 29
31. Devices for Mobile WiMAX: Laptops, MIDs and HTC Mobile phone
Laptops MIDs
SAMSUNG MONDI Samsung NOVA Samsung PDA
DO-A/1x/Wifi
Samsung PMP LG PDA Sodiff E&T PMP
30