FTTH Asia Pacific Conference FTTH- MTNLs Perspective

Kuldip Singh CMD MTNL

MTNL MARKETS

Overview of MTNL Markets

MTNLs JVs
MTNL-STPI IT Services (MSITS): A 50:50 joint venture of Software Technology Parks of India (STPI) and MTNL. MTNL-STPI aims to provide exclusive data centre services, messaging services, business application services to the identified sectors of economic activity. Also aims to popularizing the .in domain in the networked community across the world. JV has already created Tier-III data center infrastructure in Chennai. Further, in process of creating data centers in Delhi, Hyderabad and Mumbai.

Overview of MTNL Markets

MTNLs JVs
Millennium Telecom Ltd (MTL): A 50:50 JV of BSNL & MTNL. Having ILD and ISP licenses. Being Developed as Business Development Arm

Overview of MTNL Markets

MTNLs Global Presence United Telecom Limited (UTL), Nepal: Consortium of three Indian companies MTNL, TCIL (Telecom Consultants India Ltd) & TCL (Tata Communications Ltd) along with a Nepalese Company NVPL (Nepal Ventures Pvt. Ltd). Having licenses for operating Basic Telephone Service based on WLL technology, Limited Mobile Service, ILD Service & Internet Service. Deployed CDMA 1x/EVDO networks. Subscriber base of over 5,50,000

Overview of MTNL Markets

MTNLs Global Presence
Mahanagar Telephone Mauritius Limited (MTML), Mauritius: 100% subsidiary of MTNL. Now, planning to list. Having licenses for Fixed Telephone Service, Mobile Service, ILD Service and Internet service. Deployed CDMA-1x/ EVDO network. In process of deploying GSM network. Have subs base of about 110K.

Overview of MTNL Markets

MTNLs Global Presence

MTNL is member of CONEXUS Mobile Alliance. CONEXUS Mobile Alliance includes DoCoMo of Japan/
Guam, StarHub of Singapore, Indosat of Indonesia, KT of Korea, Hutchison Telecom of Hong Kong/ Macau, SMART of Philippines, True Move of Thailand, FET of Taiwan, Vinaphone of Vietnam and MTNL/BSNL of India. All member operators are 3G WCDMA operators. The Alliance is commanding a subs base of about 300 million and aims on benefiting international roamers and other global corporates.

Overview of MTNL Markets MTNL Licenses:

Basic Telephone Service in Delhi & Mumbai. Cellular Mobile Telephone Service (CMTS) in Delhi &
Mumbai LSAs which includes satellite cities also. National Long Distance (NLD) Service. International Long Distance (ILD) Service. Internet Service Provider (ISP)

Bouquet of services offered by MTNL

Fixed line PSTN services CDMA limited mobility services GSM (2.5G) & WDMA (3G) based mobile services. Wire-Line Broadband Services. VoIP & IPTV services Other value added services FTTH

Economic Potential of Delhi

National Capital Territory of Delhi (NCT), is

the largest metropolis by area and the second largest metropolis by population in India. With an estimated net State Domestic Product (FY 2007) of 118,200 crore (US$26.24 billion), Delhi is the largest commercial center in northern India. In 2007, Delhi had a per capita income of 66,728 (US$1,481.36) at current prices, the third highest in India.

Economic Potential of Mumbai

Mumbai is India's largest city (by population) and is the
financial and commercial capital of the country as it generates 6.16% of the total GDP. It serves as an economic hub of India, contributing 10% of factory employment, 25% of industrial output, 33% of income tax collections, 60% of customs duty collections, 20% of central excise tax collections, 40% of India's foreign trade and in corporate taxes. per-capita income in 2009 was Rs. 128,000 which is almost three times the national average.

As of 2008, Mumbai's GDP was Rs. 919,600 crore and its

Urban Voice Markets Moving Towards Saturation

157.32 160 140 120 100 80 70.89 60 40 33.32 20 0

% TeleDensity as on 31.03.2011

Ru ra l Ur ba n Na tio na l

Tele-density of Delhi & Mumbai is over 200%

Source: TRAI Subs data March 2011

Annual Telecom Growth 2010-11

43 42.21 42 41 40.26 40 39 38 37 % Growth 36.02 36 35.86 2010-11 35 34 33 32 Circle Circle Circle Metro A B C Growth pattern is drifting away from Metros
Source: TRAI Subs data March 2011

GROWTH IN DATA USAGE

Global Internet Trends

 Data centric applications & data usage have

Global Internet Trends

grown exorbitantly in recent years. The number of Internet users have doubled between 2005 and 2010. While 71% of the population in developed countries are online, only 21% of the population in developing countries are online. While in developing countries 72.4% of households have a TV, only 22.5% have a computer and only 15.8% have Internet access. At the end of 2010, about half a billion households worldwide (or 29.5%) had access to the Internet

BROADBAND TRENDS

What is Broadband ?
An always-on' data connection Ability to support interactive services including Internet

access. Broadband speed is a relative concept. However, in Indian context, capability of the minimum download speed of 256 kbps to an individual subscriber from the Point Of Presence (POP) of the service provider is treated as Broadband. Different contents have distinct bandwidth requirements. Applications like Email, Voice and video chatting can be supported by a bandwidth of 256 Kbps, Real-time applications involving video and multi-media applications requires much higher bandwidth. Certain application like VoIP and Tele-education can be better served with a symmetric broadband connection.

Minimum Bandwidth requirements

Various Broadband Access Techniques

Based on Optical Fiber Technologies like FTTH Based on Copper Loop like DSL, IPTV Cable TV Network Based on Terrestrial Wireless includes CDMA
(EV-DO), WCDMA(3G), WiMax & LTE etc.

MTNL FTTH PLANS

MTNLs FTTH Programme

To overcome the limitation of Bandwidth in Local

Loops over copper cables and to satisfy the ever increasing bandwidth requirement of the customers. To extend the reach of Optical Fibre to the access and build a robust Fibre network of own. To facilitate the Convergence of services like POTs, VOIP, Broadband, IPTV etc. To provide the futuristic services like HDTV, VoD, Interactive Gaming etc that requires large Bandwidth.

MTNL Subscriber Base

Delhi Landline CDMA GSM Broadband 1,574,193 109,646 2,505,841 426,772 Mumbai

(as on 31st Mar11)

Total

2,007,045 3,581,238 52,892 515,545 162,538 942,317 2,693,496 5,199,337

There is still wide gap in Broadband connections & wire-line connections. Gap is a ready made opportunity for MTNL

Fixed Line Market Shares in Delhi & Mumbai

1.99% 6.21%

18.44% 7.76%

37.33%

MTNL

54.47%

11.64%

MTNL

67.55%

Delhi

Mumbai

MTNL

Bharati

Reliance

TATA

A portion of MTNL fixed line customer base is potential market for FTTH
Source: TRAI Subs data March 2011

3G Effect on Data usage

Download
31 91 0

Upload
78 15 Ap ril' 11 10 80

35000 30000
Data usage (in GB / month)

Data usage(in Gb/month)

25000 20000
12 04 8

15000 10000
55 47

Ju ne '10

ne '10

Ju

Ap ril '1

De c'1

Delhi

Give Opportunity, People will make use of them, even at higher costs.

De c'1 0

91 8

17 88

5000

6000 5000 4000 3000 2000 1000 0

25 58

49 83

30 2

Mumbai

89 0

64 18

8000 7000

FTTH Bit rates

Tx direction Downstream Upstream Nominal Bit rate as per ITU-T Rec. G.984.2 2488.32 Mbit/s 1244.16 Mbit/s

Various FTTx architecture

1. 2. 3. 4.

Fibre Fibre Fibre Fibre

to to to to

the the the the

Home (FTTH): Fully fibre Building (FTTB): Fibre upto building Curb (FTTC): Partially fibre Cabinet (FTTCab): Partially fibre

MTNL FTTH network architecture

FTTH Network Components:

A Passive Optical Network (PON), in general,

consists of Optical Line Termination (OLT) system installed generally at the Central Office (CO) a set of associated Optical Network Units (ONU)/Optical Network Terminations (ONT) installed at various locations in the network with a passive Optical Distribution Network (ODN) comprised of optical fibres and passive splitters/couplers interconnecting them.

MTNL Present FTTH Rollout

Initial roll out of 30K subscribers. The ratio of FTTH to FTTB has been kept

as 80:20. VDSL2 technology is being used in the last mile to provide FTTB solution. Business ONT with 1000 Mb ports are for enterprise customers.

Collaboration opportunities are bound to exist

MTNL is mulling a revenue sharing

proposal for the areas not covered under the tender. MTNL may consider sharing of in-building solutions on revenue sharing model. Even fibre loops from IP providers may be considered.

Market for FTTH services in India

based

products/

India

is at the cross-road in telecommunication technology, with networks being rolled out for 3G, WiMax/LTE, NGN/IMS and FTTH. FTTH will give subscribers limitless possibilities by serving the requirements of bandwidth-hungry applications and this would revolutionize the way subscribers work, live and play.

Challenges
One of the biggest challenges regarding FTTH
deployment in India would be planning and executing cable distribution particularly in Brownfield areas. Delhi and Mumbai are already densely populated and there is fairly deep running copper network existing But once FTTH deployments gain momentum technicians will learn to overcome this problem. End device prices are bound to be higher till economics are achieved through scales. Existing wire-line subs are habituated of exchange powered telephones.

Opportunities
India has successfully broken the myth that high-end
technologies can't be given at an affordable cost to the masses. Country is bandwidth hungry. People are ready to pay, if provided assured QoS. With FTTH and other broadband technologies, the masses are likely to be empowered as a result of greater access to the bandwidth in this age of information. This ultimately strengthen the people and nation as a whole. MTNL has been pioneering in revolutions like bringing down mobile tariffs, commencement of 3G services, pioneering in FTTH etc.

Thank you

Telecom penetration in Delhi and Mumbai

Population vis-a-vis subscribers

40 35
Figures (in millions)

38.82

34.8

30 25 20 15 10 5 0 2.84
Delhi Population Wireless subs Wire Line subs

16.75

16.37

2.99
Mumbai

Source: TRAI Subs data March 2011

MTNLs Future plan

Become a total telecom solution provider

company and to provide world class telecom services at affordable prices. Become a global telecom company and to find a place in the 'Fortune 500' companies. Become the largest provider of private telecom networks and leased lines. Venture into other areas like telecom consultants in India and abroad on the strength of our core competency.

MTNL FTTH Approach.

To introduce the technology, MTNL is working

on different models:
By calling tenders for active PON equipment and passive PON equipment along with customers premises fitting separately. By outsourcing customer premises fitting and using active PON equipment & fiber infrastructure of its own. By outsourcing customer premises fitting and using fiber infrastructure & active PON equipment of its own.