Wireless Infrastructure in India
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- India has a large potential addressable market for wireless infrastructure given its population of over 1.1 billion people, but fixed line connections and broadband penetration is currently low. - Wireless technologies are poised to enable much broader connectivity in India by overcoming challenges with rolling out wired last mile infrastructure, with costs of wired broadband being high. - Factors like available spectrum, standardization, infrastructure sharing policies, and development of relevant applications are enabling the growth of wireless broadband which is projected to grow substantially over the next few years and potentially become the dominant form of broadband connectivity in India.
Wireless Infrastructure in India
- 1. Wireless Infrastructure in IndiaPrateek PashineVP – Planning
- 2. Population 1.1 billionMobile Connections200 millionUrban Population 300 millionCable Connections60 millionFixed Connections45 millionInternet User 40 millionBroadband Connections3.1 millionInternet Connections8 millionIndian Addressable Market – Huge PotentialThe wide opportunity available to be tappedTotal PopulationAddressable populationPeople with Phone (Wireline/ Wireless) connectionsCable/ Internet/ Broadband Connections Provisioning of service through wireless technology would enable conversion of addressable market into subscribersSource: Industry sources
- 3. Market ForecastOur 2010 forecast of subscribers as a % to other durables owning households is very conservative
- 4. 3% of Mobile subscribers
- 5. 17% of CTV households
- 6. 19% of Motorcycle owning households
- 7. 24% of Refrigerator owning households
- 8. 60% of Car owning householdsContext of Wireless in IndiaWireline MarketWired 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 IndiaLack of government and incumbent support on unbundling of local loopHigh costs for Greenfield deployments of wired access, hence limited Greenfield rolloutCosts closer to USD 1000 per sub in Metro cities – 120 months ARPU (voice or BB)Cable Networks not capable of delivering two way servicesFragmented industry100,000 cable operators each with about 600 customers per networkInfrastructure not organised both in terms of city layouts as well as sharing policiesNo clear policy incentives in place for promoting wirelineNo policies on express approvalsNo relief on rev share to Govt on wireline and hence on the same ARPU it substantially makes sense to look at Wireless
- 9. Context of Wireless in IndiaServicesCustomer preference on application rather than modeCustomers willing to take FWPs and not wanting to wait for a wire to be pulled inClear agnostic behaviour towards type of connectivityVoIP allowed only for CUG and international calling currently for ISPs; unless by universal access service license holdersVonage like services currently not permissibleExperimentation with content services – beyond entertainment, lower bandwidth – high utilityPricingBB 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.
- 10. Wireless Broadband Enablers :: India MarketRegulationContiguous and large spectrum bands
- 11. Globally recognised bands – freeing up of DoS, DoD spectrum
- 14. Standardised CPE availability in various form factors
- 15. CPE @ 2-4 months ARPU
- 16. Content availability @ higher compression formats
- 17. Infrastructure SharingWBAEnablersContent / utility to fuel demand, not just PC growth
- 18. Basket of Services rather than One :: Killer CocktailEcosystemMarketLocal Travel time ever increasing….those traffic jams!!!Business travel on an all time high
- 19. Wireless TechnologiesSpectral Efficiency on the riseIt is defined as how much through-put can be delivered on 1Hz of spectrum – bps/HzData-centric Wireless technologies maturing
- 20. Wireless - OpportunitiesApplications – a whole new set of applications become available with wirelessWhile they would be ‘bandwidth’ intensive in some cases, in most cases, Convenience is the overall riderAnytime Anywhere ARPU possibilities come into play
- 21. 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.
- 22. In Summary :: Wireless in IndiaBroadband poised for take-off in India with 4 times Subscriber base in 3 yearsPC alone not the entry barrier for Internet adoption, Utility very importantWireless initially to be used pre-dominantly for Fixed Broadband applicationsInvestment in Content & Network ahead of adoption a pre-requisiteNo Killer App but Killer CocktailIndia could well be only a Wireless Broadband country, with almost negligible Wired Broadband, in the next 10 years
- 23. WiMAX poised to contribute a Lion’s share in this Growth EngineLets seize the moment!!