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Airtel 4G Launch

‘4G Technology’ growth analysis

Prepared By – Saurav Demta

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Introduction

– Is getting proved by the substantial development in telecommunications

Technology Mantra - “Every 18 months the performance doubles.” Moore's law

With launch of Airtel 4G, India has stepped into a new horizon of telecommunications

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Ultra-broadband, successor to 3G

Designed for wireless or mobile data services using spectrum or airwaves more efficiently, enabling speeds of as much as 100 mbps (megabits per second)

High quality audio/video streaming over end to end Internet Protocol

Fast communication

Quick data transfer

Distant business correspondence by sharing data becomes very important

Wireless broadband for the instant download

It’s very much equivalent to getting a LAN or Gigabit Ethernet connection to a mobile device

4G(Fourth Generation)??

Wireless Broadband concept

Provide broadband data access by wireless means to consumer and business markets.

High-speed wireless Internet access

Provide download speeds of over 100 Mbit/s

Broadband wireless access (BWA) services are estimated to have a range of 50 km (31 mi) from a tower

Provide full mobility support

The 4G technologies in use are flash OFDM, 802.16e wireless or mobile WiMax and HC SDMA, UMB and Wi-Fi

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4G technology – How it works

WiMAX

4G

WiMAX

LTE

Two technologies on which 4G will be supposedly standardized

WiMAX stands for Worldwide Interoperability of Microwave Access

Now the modified standard 802.16m has been developed with the properties of speed, wide spectrum, and increase band.

4G has an advantage of having the WiMAX as a product because IEEE introduces and releases it already therefore economic as no need to pay for its manufacturing price.

It manages the voice through packet-switching instead of circuit switching. Internet connectivity with specific IP not only increases the speed but also reliability of the sending and receiving of data.

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4G technology – How it worksLTE

LTE (Long Term Evolution) is introduced by Verizon

LTE is considered to be promising high data transfer speed

supposed to provide internet facility using both systems

ability of transition from one mode to another

developed on radio waves technology

increases the speed but also the amount of data allowed through the same bandwidth and results into lower cost

As LTE is compatible with 3G technology so it not only increases the speed but also prevents the need of new network and can work through the same infrastructureLTE is using MIMO (Multiple input multiple output) able to send and receive huge data negative in the sense that it will overload the base stations networks

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4G licenses in India

• Aircel: Andhra Pradesh, Assam, Bihar, Jammu & Kashmir, North East, Orissa, Tamilnadu, West Bengal (8 Circles)

• Augere-Zoosh (Mauritius-based  company): Madhya Pradesh & Chattishgarh (1 Circle)

• Bharati Airtel: Karnataka, Kolkata, Maharashtra and Goa, Punjab (4 Circles)

• BSNL: All India except Delhi & Mumbai (20 Circles)

• MTNL: Delhi, Mumbai (2 Circles)

• Reliance Infotel: All India (22 Circles)

• Qualcomm: Delhi, Mumbai, Haryana and Kerala (4 Circles)

• Tikona: Gujarat, Himachal Pradesh, Rajasthan, UP East, UP West (5 Circles)

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4G and Airtel

1st to launch 4G in India

Airtel will initially offer 4G through dongles only because of lack of 4G (LTE) devices in the Indian market

Dongles will be supplied by ZTE, a Chinese company

TD-LTE (Long Term Evolution) technology - platform for future broadband revolution

Circles covered – Kolkata, Karnataka, Punjab and Maharashtra (excluding Mumbai)

US-based Symmetricom that makes timing and synchronisation products will provide fourth-generation or 4G equipment worth $20 million to Indian telecom companies that won permits to offer wireless broadband services

Bharti Airtel, Mukesh Ambani-owned Infotel Broadband, chipmaker Qualcomm, Augere and Tikona paid more than 38,500 crore for wireless broadband airwaves in May 2010

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Worldwide picture – BWA success

Company Country Comments

Korea ■ First company in Korea to explore wireless broadband services■ Deployed approximately 600 base stations covering 12 million people■ Established itself as the wireless broadband leader in Korea

USA ■ Operates in the United States, Ireland, Belgium, Spain, Denmark (withDanske Telecom) and Mexico (with MVSNet)■ Offers internet speeds of up to 6 Mbps per user device■ Launched 4G WiMaAX in Jan 2009

Russia ■ First mobile WiMAX network in Russia, launched in September 2008■ Offers internet speeds of up to 10 Mbps per user device■ Installed 150 base stations in Moscow and 80 base stations in St.Petersburg with peak data rates of about 180 Gbit per second

UQCommunications

Japan ■ Only telecom company in Japan providing nationwide mobile services basedon WiMAX■ Aims to extend coverage to 90% by 2012

P1 Malaysia ■ First operator to launch commercial WiMAX operations in Malaysia in 2008;acquired 100k subs within 6 months of launch■ Investment plans of over $300mn in the next 5 years

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Indian Picture

Airtel –

“4G has the potential to transform India" platform for "building the country's digital economy”

This makes India one of the first countries to commercially deploy Long Term Evolution Time Division Duplex (LTE-TDD) technology

In 1995, India had a cellular subscriber base of only 75,000. Today, this figure is almost 600 million – a phenomenal growth of 8000 times. India is second only to China in terms of subscriber base.

The Indian broadband landscape of 2010 is similar to the cellular voice landscape of 1995. India ranks almost at the bottom with under 1% penetration

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Strong growth in GDP and Per Capita Income

• India is the largest, fastest growth market and also the most competitive – this has been achieved predominantly in the past decade

• Increase in India’s per capita income to result in higher broadband penetration

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Growth In Broadband Connections Between 2009-2013

Broadband connection in India expected to grow rapidly in the next 3 years

BWA Spectrum availability to facilitate this growth further

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Competition of Airtel with others in 4G

Reliance Infotel Ltd is the only operator with spectrum across the country. The firm is expected to launch services using the same TD-LTE technology by the end of the June quarter

Aircel has the second-highest number of BWA circles. The telco announced it successfully tested the technology in September and will launch services soon.

Tikona already has a relatively strong broadband subscriber base with a million customers using unlicensed spectrum. It’s expected to launch 4G in Gujarat soon, using LTE. The firm also has spectrum in Uttar Pradesh (east and west), Rajasthan and Himachal Pradesh

Qualcomm is considered the owner of the TD-LTE standard. The firm hopes to use its India experience as a showcase of the technology to the world. The company has teamed up with Tulip Telecomand Global Holding Corp (which owns telecom tower company GTL Infrastructure Ltd)

Augere has spectrum in Madhya Pradesh and is expected to launch TD-LTE services around June/July’ 2012

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ChallengesAnalysts say India's rural areas offer huge market potential but erecting infrastructure to support high-speed networks will be costly, making urban areas the immediate battlegrounds for customers.

Device Availability• LTE tablets to be launched soon• Device makers will start launching 4G tablets once Reliance Infotel, which has a pan

India 4G license, rolls out 4G services.Price Sensitivity

Success of 4g seeing the past performance of 3G (due to unaffordable devices)

Build up new customer base

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Impact/trends that 4G will bring

4G networks, when tied together with mobile phones with in-built higher resolution digital cameras and also High Definition capabilities will facilitate video blogs.

Likely to enable ubiquitous computing, that will simultaneously connects to numerous high data speed networks offers faultless handoffs all over the geographical regions.

If any VoIP client is installed on a hand device then there will be facility to make VoIP calls from mobile. This may kill the mobile voice market soon.

Run Skype, YouTube, IP TV apps, Video on Demand, VoIP Client and many more in tablets and Smartphone's

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1G 2G 3G

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