Scenario Description and

Business Opportunity
Analysis
The Indian Broadband Scenario
R. Balajee

Midas Communication Technologies

 Indian Telecom Equipment Industry
Product Categories Revenue (in Rs Crore) Growth
(in %age)

Indian Telecom Scenario

FY ’05-06 FY ’06-07
ENTERPRISE EQUIPMENT
Voice Solutions 1,106 1,413 27.8
Router 1,059 1,437 35.7
Switch 1,587 1,980 24.8
Modem 266 335 25.9
Indian Services Industry (FY
Audio Video’06-07)
Conferencing 74 100 35.1
Categories Revenue (Rs crore)
WLAN Growth 150
104 44.2
Network Storage 559
(in %age) 995 78.0
FY ’05-06
Network Security FY ’06-07 539 916 69.9
Structured Cabling 594 817 37.5
Fixed line 34,161 30,190 -11.6
Network Integration 905 1,279 41.3
Cellular NMS35,994 56,183 526 56.1709 34.8
NLD Others*
9,015 7,186 614 -20.3824 34.2
Total 7,933 10,955 38.1
ILD 7,251
CARRIER EQUIPMENT 11,506 58.7
Internet and 1,620
Broadband Infrastructure 2,040 642 26
895 39.4
Broadband Wireless Infrastructure 11,411 16,677 46.1
WiMax 0 88 NA
VSAT 443
Telecom Cables
540 1,459
21.9 961 -34.1
Radio Trunking 38
Transmission 36 765 -5.3
1,266 65.5
Test & Measurement
TOTAL 88,522 107,681 358 21.6 407 13.7
Telecom Software 11,519 17,871 55.1
Telecom Turnkey 2,837 3,688 30.0
VSAT 327 360 10.1
Others** 380 550 44.7
Total 29,698 42,763 44.0
PHONES
Mobile Handsets 14,258 21,434 50.3
Fixed Phone 1,906 2,018 5.9
Total 16,164 23,452 45.1
GRAND TOTAL 53,795 77,170 43.5
V&D estimates CyberMedia Research
 Broadband Blues
• 2.47 million Broadband subscribers
– As of July against internet subscriber base of 9 million
– Compared to 56million in china where 100000 subscribers have begun on IP-
TV expected to reach a million
– How much of 2.47 million can afford real sustained 2Mbps?
– 48 million copper wired homes with falling ARPU’s

• IP-TV more a bundled service than Driver

– 2.5 million subscribers on DTH growing towards 6 million
– Pirated DVD’s at Rs.35
– Is IP-TV Content Aggregation Strategy or Data Strategy?
– Long term impact of internet video on IP-TV market ?
• Broadband need they create is different from IP-TV

• VOIP Services
– Growth of ILD based on VOIP
– Domestic VOIP plagued by QOS issues
Fixed and Mobile Growth
Top Indian Mobile Operators
(Based on Subscribers) Top Fixed Operators (Based on Subscriber)
Subscribers (millions)
Rank Growth
Operator Share
Subscribers (in mn) Growth
Company Circles 2005-06 2006-07 % %FY '05-06 FY '06-07 (in %age)
1 Bharti Airtel 23 19.6 37.11 90
BSNL 23.9 36.77 36.70 -0.2
2 BSNL 21 18.5 27.92 51
TTSL 17.8 4.02 4.36 8.5
3 Reliance Communications 23 17.3 27.93 61
MTNL 17.7 3.88 3.80 -2.1
4 Hutchison Essar 22 15.4 26.44 72
Reliance 16.8 3.13 1.56 -50.2
5 Idea Cellular 11 7.4 14.0 Communicatio
90 8.9
6 Tata Teleservices (Group) 20 4.9 11.4 ns
136 7.3
5 Bharti Airtel 1.34 1.27 -5.2
7 Aircel 23 2.6 5.5 111 3.5
6 TTML 1.04 0.75 -27.9
8 MTNL 2 2.0 2.8 38 1.8
7 HFCL 0.23 0.25 8.7
9 Spice 2 1.9 2.7 41 1.7
8 ShyamTelecom 0.17 0.22 29.4
10 BPL Mobile (Mumbai) 1 1.3 1.1 (20) 0.7
Total 50.58 48.91 -3.3
Total 90.9 157.0 73 100
Source: CyberMedia’s flagship telecom industry journal Voice&Data’s V&D 100 July 2007
Top Fixed Operators (Based Topon10 Revenue)
Service Providers (FY 2006-07)
Rank Operator Revenue (inServiceRs crore Growth
Providers Revenue (in Rs. Crore ) Growth
Rank ) (in %age) FY 2005-06 FY 2006-07 (in %age)
1 BSNL 40,177 40,135 -0.1
FY '05-06 FY '06-07
2 Bharti Airtel 11,291 17,888 58.4
1 BSNL 25,195
3 21,020
Reliance -16.6
Communications 10,766 14,468 34.4
2 MTNL 4,988
4 4,116
Hutchison Essar -17.5 6,837 10,565 54.5
3 Bharti Airtel 1,320
5 VSNL1,693 28.3 4,797 8,857 84.6
4 TTSL 1,081
6 1,584
Tata Teleservices 46.5 2,575 5,178 101.1
5 TTML 7713 MTNL 924 29.6 5,561 4,923 -11.5
6 Reliance 8513 Idea 460 -10.3 2,990 4,413 47.6
Communication 9 Aircel 977 1,507 54.2
s
10 Tata Teleservices Maharashtra 1,097 1,422 29.6
7 HFCL 261 285 9.2
Total 87,068 109,356 25.6
8 ShyamTelecom 90 108 20.0
Source: CyberMedia’s flagship telecom industry journal Voice&Data’s V&D 100 July 2007
Total 34,161 30,190 -11.6
PC Penetration

Quarterly PC sales figures from MAIT

 Internet Penetration

Both Internet usage & ownership limited amongst the lower SEC’s because of
High cost of enabling device, Cost of access from home or cyber café and
availability of content & hardware interface in vernacular languages.
Access Penetration

The driver for internet access

in the order are:

Communication needs
Educational needs
Entertainment needs
Others
 Pricing of Internet Access

The low Indian ARPU has propelled the broadband growth this far. To expand
into newer socio-economic regions and classes, cost-effective access technologies,
Intelligent service pricing and bundling of services to end-customers,
Managed Services to Operators from Vendors,
Vendor financing models based on revenue sharing are required.
Blockers for Broadband

Poor Fixed Line Growth

Low PC Adoption

Very Low ARPU Market

Summary : Key Enablers for
Broadband Penetration in India
• Broadband access infrastructure to compensate for poor
Fixed Line coverage
– Wireless and/or Wire-line
– Able to match a low ARPU subscriber base (Low Cost Access)
– Seamlessly integrate with legacy back-haul (STM) as well as
newer back-haul (IP)
– Ability to offer Voice/VOIP services inherently

• Offering Computing services to beat Low PC adoption

– Remotely Managed Computing services

• Newer Service Pricing model to make way for High AMPU in

low ARPU markets
– Newer Revenue models including Rentals
– Vendor Financing models with service providers
• Ex: CCB
Some Solutions
• Fixed Wireless solution that can match the ARPU to
facilitate further broadband penetration
– In-built with voice/voip capabilities
– Cover distances ranging from 4Km to 10km
– Need not deliver 10’s of Mbps, but upto an Mbps to deliver
most broadband services of today
– No spectrum bottlenecks to resolve

• Fixed Wire line solution that can match the ARPU to

facilitate further broadband penetration
– Highly Cost Effective
– Minimal Infrastructure requirements; Outdoor deployable
network
– No local power requirements to facilitate fast deployments;
Remote powered network
– VOIP ready subscriber terminals
– Triple-play capable network
BBcorDECT

Fixed Wireless Broadband

Platform
 DSL on Wireless
Seamless back-haul connectivity Exchange Infrastructure platform Base Station Site platform CPE capable of evacuating up to 1Mbps
on E1 with TDM voice or IP with capable of evacuating up to 160Mbps capable of evacuating up to 32Mbps
VOIP

Base Stations

Local Exchange

Antenna
V 5.2, Base
CCS7,R2MF Station
Distributor

Local Exchange - PSTN

Radio Tower

E1 on STM CPE

Internet Voice/ E1 links Fiber or DMW

VOIP Radio for Long distances T e le p h o n e

IP Network
Base Stations
corVAN/
Base Station
Aggregator

SIP/MGCP

DSL connectivity
on copper
for short
Soft-Switch distances

Radio Tower

Cost Effective for High and Low subscriber densities

DECT Spectrum: 1880-1900 Mhz On Air distance from 4Km to 10Km
as well as high and low coverage areas
No new allocation of spectrum
Centralized, Micro-Cellular Architecture
Deployment

• Choose a centralised location

for corVAN, where voice/voip
and IP traffic can be handed
over to Exchange

• Locate the Base Station

Distributors to create cell
sites, wherever coverage is
needed.

• Wireless or Fiber connectivity

to the Base Station
Distributors

• Base station configuration will

depend on the subscriber
densities.
Distributed, Micro-Cellular Architecture
Deployment

•Locate a Base Station

Aggregator where coverage is
required. XBS Array

•Extend IP or E1 V5/SS7
connectivity to BSA
E1 for TDM Voice

•Create Base Station Cell Sites IP for VoIP/Data

Base Station Radio Tower
close to BSA location Aggregator

•Base station configuration will

depend on the subscriber
densities.
Application Areas

• Fixed Wireless Broadband for low ARPU scenarios

– Voice and Effective Broadband Data

• Broadband Wireless Coverage for TNF areas for Incumbents

• DECT Upgradation/Replacements

• Extending Last Mile Wireless Broadband for Community Specific

applications and Public Utility services
Ethernet To The Home

High Bandwidth Services at

Lowest TCO
 Ethernet To The Home
Rugged, outdoor Splitter CPE
Resident
Managed Ethernet building
Telshine Backend INTERNET
solution
System •IP Telephony Remotely powered
•Video Conferencing from a central location Splitter CPE

Access
Omni Switch
Switch Resident Splitter CPE
building
Resident
building
NMS
Splitter CPE

Access Access
Switch Switch
Splitter CPE
10 TV TV Resident
at every home
Channels Broadcasting Roadside building
•5 off-air 5 off-air domestic hub uPOP
•5 server (JRC @7TH
Channels via
fibre Floor) M2404
Resident
100+V, building
10 Amps Resident
AC Source building PC
IP or
IP
OANOC Analog
Set Top
Cisco Cisco Phone
Box
Switch M2404
4507 Metro E (GE)
Access
uPOP Switch

Cisco Backend System

M2404

Triple-play ready
Headend (BMC) Main Node (JRC) Ethernet To The Home at Access Node Customer
The Lowest TCO Solution Premises
 ETTH Product Family
Access and Aggregation Switch: M2404
24 FE & 4 GE ports, supports 2 optical fiber Gigabit
Ethernet interfaces (SFP)
Advanced Layer 2+ feature set including VLAN
Stacking, Multicast
Resilient Distribution Switch: C16 Switch
16 FE ports with multiple uplink ports supported
Powered remotely via PoE
Range of 300 meters @ 10Mbps
Manageable Switch
Ideal for higher subscriber densities and outdoor

M2404

Metro Ethernet Ring

Increase service reach of Metro Ethernet
without compromising on Service Levels Access Switch

and QoS
C5 Switch

Access switch: C5 Switch

5 FE ports, cascading support on one of the ports Splitter CPE
Powered remotely via PoE
Ideal for indoor and low subscriber debsities
Extends service up to 300m from aggregation switch
(M2404) using up to 2 C5 switches
May 12, 2008
Splitter CPE similar to C5 Switch with 19
Analog Telephone Interface for VOIP services
 ETTH - Some Deployment
Scenarios
C5Switch

Gigabit C5Switch
Ethernet C16 Switch
FE

Internet

FE

FE

FE

C16 Switch

C16 Switch
FE
C16 Switch
FE WiFi
Access Point
 ETTH to augment Existing
CATV Network…
Amplifier
Cs16
Multi Service
Internet Access Platform

Amplifier
M2404
Cs16

Cs16
CATV Head-End Optic Node
Amplifier
Cs16

Cs16
Amplifier

Cs16
Amplifier

Amplifier
Cs16
Amplifier
Cs16

Amplifier

May 12, 2008 21

ETTH to Enhance Wi-Max
Network

16 ports, 13,14 or 15 subscribers

Access
Switch
Wireless Device powered
Managed Device
from remote through C-Switch
Access
Switch
Access
Switch
Lightning and
Distance between switches
surge protection
Access 100Mbps-150m
Switch
VLAN
Centralized
Access
PoE adaptor Switch Power

Distance between PC and

subscriber -10Mbps -300m

100+V,
10 Amps
AC Source
 Application Areas
• Centralized Power feed, No local infrastructure
requirements (outdoor mounting), Low TCO, High
Bandwidth Services

• Enhancing the Metro-Ethernet Network

– Extending Ethernet services from Building Switch to Street

• Enhancing the GPON

– Ethernet access network extended up to 2 km from GPON CPE

• Augmenting the CATV Network

– Extend Ethernet services up to 2 km from nearest fiber drop

• Enhancing the WiMAX/Pre-WiMAX/Microwave Network

– Ethernet access network extended up to 2 km from CPE
May 12, 2008 23
– Significantly lowers CAPEX
Other Efforts
• Remotely Managed Computing Services on ETTH platform

• Novatium’s NovaPC service running in K.K.Nagar on ETTH

• Rental Computing Models to facilitate Cheaper computing

services

• Vendor Financing for ETTH solution to enable ISP’s to

upgrade and expand their infrastructure with least capex
investment
– Based on Revenue Sharing
 Thank You

www.midascomm.com
About Midas
 Foundation
500 person R&D Team
Long term collaborative R&D with IIT-M  Founded in 1994 by IIT Madras alumni

DECT, GSM, WiMAX, Ethernet, Routing, VoIP

IP Portfolio
Network protocols & Management Systems
Reconfigurable MSC-BSC-BTS-ST architectures
Extensible ASICs
May 12, 2008 27
Partners & Alliances

OEMs /
Licensees
@ccess

Solutions
Partners Nilgiri
Networks

Manufacturing

Semiconductor
Partners

May 12, 2008 28

Global…

Midas Installations
Wireless, DSL, Metro Ethernet
May 12, 2008 24+ countries, 3.5 mil Ports 29
Solutions for Emerging Markets

Wireless Wireline Ethernet Access

Broadband
corDECT Universal Loop M2404 series
256+ Kbps Wireless DSL Carrier L2+ & L3 Ethernet
Toll Quality Voice Multi Service Access Switches

GSM
Light DIAS-xx series C16 Series
Layer 2 IP-DSLAMs 16 port long range
Rural GSM
outdoor
R17xx series
Broadband
corDECT NG Enterprise & SMB Manageable switches
1 Mbps routers
C5
WiMax SNAP! Layer 2, 5 port switch
with POE
SACS
May 12, 2008 30