TDD-LTE Rollout Strategies for Telecom Service Provider in India Swapnil Pande Supervisor : Prof....
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Transcript of TDD-LTE Rollout Strategies for Telecom Service Provider in India Swapnil Pande Supervisor : Prof....
TDD-LTE Rollout Strategies for Telecom Service Provider in India
Swapnil Pande
Supervisor : Prof. Heikki Hämmäinen
Instructor : Prof. Kishor Ghormade
Communications Ecosystem International Master’s Program
Aalto University, School of Electrical Engineering
Master’s Thesis Presentation
June 30 2014
Agenda
• Research Problem and Motivation
• Background
• Research Method
• Findings
• Conclusion
2
3
• Main Research Problem
• What are the successful strategies for the TDD-LTE rollout in Indian telecom market?
• Research Questions
• What are general strategies to concentrate for successful rollout TDD-LTE services?
• How to achieve competitive pricing strategies suitable for TDD-LTE rollout?
• What level of maturity should Device Ecosystem should reach to leverage the development of TDD-LTE services?
Main Research Problem and Research Questions
Motivation for Research Problem
4
1. The business issue • Latent market stage• Poor 3G penetration• Already Investment in 3G
2. Importance and impact• Prevent Loss for Telecomm Service
Providers
3. Objective of the study• Examining the local market barriers • Suggesting remedies.
4. The output of the study• Set of guidelines for
successful rollout strategies
5. This helps because• Learning prevents mistake
repetition
Background and Research Method
5
I. Auction Process and LTE developmentsII. Research Method
6
BWA Auction Process completed
June 11, 2010
June 12, 2010Reliance Industries
acquires 95% stake in Infotel Broadband
Services and Relianace Jio
established
Bharti Airtel launches TD-LTE in Kolkata
circle
April 2012
May 2012Bharti Airtel acuires
49% stake in Qualcomm Incorporate
Bharti Airtel and Reliance Jio signs i2i
cable sharing deal.
April 2013
I. Timeline for major Events related to TDD-LTE (1/3)
7
I. Successful players in Auction process (2/3)
METROS CAT : A CAT : B CAT : C
DLI
MUM
KOL
MH
GUJ
AP
KAR
TN
KER
PUN
HAR
UPE
UPW
RAJ
MP
WB
HI
M
BIH
OR A
NE
J&K
Infotel Broadband Pvt. Ltd
Bharti Airtel
Aircel Limited
Tikona Digital
Qualcomm Incorporated
Augere (Mauritius) Ltd.
Circle Category
Rise from Reserve Price
to Final Auction Price (in %)
Metro 772 to 1333.09
Category A 472.27 to 1193.40
Category B 70.97 to 332.27
Category C 37.73 to 561.86
Total 634.15
METROS CAT : A CAT : B CAT : C
DLI
MUM
KOL
MH
GUJ
AP
KAR
TN
KER
PUN
HAR
UPE
UPW
RAJ
MP
WB
HI
M
BIH
OR A
NE
J&K
Reliance Jio
Bharti Airtel
Aircel Limited
Tikona Digital
Augere (Mauritius) Ltd.
8
I. Timeline for major Events related to TDD-LTE (3/3)
1. Reliance Communication and Reliance Jio signs Network Infrastructure sharing deal
2. Bharti Airtel acquires 100% stake in Qualcomm Incorporated
June – July, 2013
March 4, 2014Bharti Airtel and
Reliance Jio signs Tower sharing deal
Relianace Jio signs tower sharing pact
with Viom Networks and ATC India
March – April 2014
May 29, 2014Reliance Industries takes over Network
18.
Bharti Airtel offers dongle and mobile device plans in 8
cities
Present Status
9
Research Problem
Research Questions
Paper Survey
Literature Review
Company
Documents
Conferences,
Seminars and Webinars
General Strategy
Pricing Strategy
Device Ecosystem DevelopmentStrategy
•Challenges and •Set of Recommendations
Data Analysis and Interpretation
Government
Organization and Regulatory Body reports
Close end questionsOpen end questions
II. Research Method
News paper
articles , Magazine articles and blogs November to December
January to March34 Respondents
15 Respondents
Findings and Conclusion
10
I. General StrategyII. Pricing StrategyIII. Device Ecosystem Development Strategy
11
I. General Strategy : Challenges faced by SP (1/2)
12
I. General Strategy : Time of launch and Customer segment to Target (2/2)
0
5
10
15
20
03
12
19
8. Launch Strategy
Early launch in Phased manner
Early launch on Pan India Basis
Late launch in Phased manner
Late launch on Pan India basis
05
10152025 20
1216
9 73 5
9. Customer segment to target
High End ARPU Customers (Postpaid) High End Customers (Prepaid)
Middle ARPU Customers (Postpaid) Middle ARPU Customers (Prepaid)
Low End ARPU Customers (Postpaid) Low End ARPU Customers (Prepaid)
All the customers segments
0.00
1.00
2.00
3.00
4.00
5.00
2.03 2.03
1.12
4.063.38
7. Solution for Providing Voice Services
IMS-based VoIP (VoLTE) Unmaged OTT VoIP (Skype)
Managed OTT VoIP Circuit Switch Fallback (CS Fallback)
VoLGA (Voice over LTE via Generic Acces)
1 GB 2GB 3GB 4GB 6GB 9GB 10GB 12GB 15GB 18GB 25GB 30GB 45GB 80GB
Apr-12 NaN NaN NaN NaN 999 1399 NaN NaN NaN 1999 NaN 2999 NaN NaN
Jun-12 NaN NaN NaN NaN 999 1399 NaN NaN NaN 1999 NaN 2999 NaN NaN
Sep-12 NaN NaN NaN NaN 999 1399 NaN NaN NaN 1999 NaN 2999 NaN NaN
Dec-12 NaN NaN NaN NaN 999 1399 NaN NaN NaN 1999 NaN 2999 NaN NaN
Mar-13 NaN NaN NaN NaN 999 1399 NaN NaN NaN 1999 NaN 2999 NaN NaN
Jun-13 250 450 650 750 NaN NaN 999 1299 1499 NaN 2049 NaN 2999 4799
Sep-13 250 450 650 750 NaN NaN 999 1299 1499 NaN 2049 NaN 2999 4799
Dec-13 250 450 650 750 NaN NaN 999 1299 1499 NaN 2049 NaN 2999 4799
Mar-14 250 450 650 750 NaN NaN 999 1299 1499 NaN 2049 NaN 2999 4799
Jun-14 250 450 650 750 NaN NaN 999 1299 1499 NaN 2049 NaN 2999 4799
500
1500
2500
3500
4500
5500
Data Plan
Cos
t in
IN
R/M
onth
II. Pricing Strategy : Bharti Airtel Data Plan Pricing (1/4)
14
II. Pricing Strategy : Airtel Data Plan Pricing Analysis (2/4)
Time periodDownload
LimitPrice (INR) Rs/MB
April 2012 to March 2013
6GB 999 0.163
9GB 1399 0.152
18GB 1999 0.108
30GB 2999 0.098
April 2013 Onwards
1 GB 250 0.244
2GB 450 0.220
3GB 650 0.212
4GB 750 0.183
10GB 999 0.098
12GB 1299 0.106
15GB 1499 0.098
25GB 2049 0.080
45GB 2999 0.065
80GB 4799 0.059
Apr/1
2
Aug/1
2
Dec/1
2
Apr/1
3
Aug/1
3
Dec/1
3
Apr/1
40
1000
2000
3000
4000
5000
6000
7000
8000
9000
Dongle Pricing
Wi-Fi Router Pricing
VAS Provided
• HD Movies• HD Games• TV Shows• Live videos of places of worship
15
II. Pricing Strategy : Data Plans to implement (3/4)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1.441.82
2.88
3.563.79 3.62
1.65
3.854.18
3.97
3. Plan Strategy
Data speed used to differentiate tariff tiers Unlimited Voice and messaging by default
Multi device shared data strategy plans Tethering strategy
Day/night pricing strategy Location based pricing
Unlimited data plans with LTE Bundling of high end smart phones with LTE plans
Combining 3G and 4G data Free 2G Data
16
II. Pricing Strategy : Data Plans to implement (4/4)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
3.74
3.18
1.15
1.97
2.91
4.21
1. Data plans
Data Only Data + Voice
Data + Messaging Data + Voice + Messaging
Data + VAS Data + VAS + Voice
0
5
10
15
20
25
4
9
21
5. Expected Pricing of TDD- LTE with respect to 3G services
More than 3G Equal to 3G Less than 3G
0
5
10
15
20
25
8
20
5
1
2. Airtel pricing for TDD- LTE
Very High High
Normal Can charge more
17
III. Device Ecosystem Development Strategy : Access source (1/3)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
4.09
0.09
4.44
3.97
2.442.62
3. Main source for accesing LTE
Dongles Camera Routers/personal hotspot (Mi-Fi)
Smartphone Tablets Multimode CPE
18
III. Device Ecosystem Development Strategy : Effect on mobile ecosystem (2/3)
0
5
10
15
3
9
14
62
1. Effect on multi-sim device ecosys-tem
Increase substantially Increase
No effect Decrease
Decrease substantially
0
2
4
6
8
10
12
14
16
18
20
11
18
21
2
2. Effect on sales of large screen device ecosystem (Tablets included)
Increase substantially Increase
No effect Decrease
Decrease substantially
19
III. Device Ecosystem Development Strategy : Device Pricing (3/3)
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
1.12 1.26
3.09
4.06
2.18
1.18
6. Cost of TDD-LTE smartphones for LTE to takeoff (In INR)
Less than 3000 3000 - 5000 5001 to 8000
8001 to 12000 12000 - 16000 More than 16000
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
3.06
3.82
3.24
1.29
7. Cost of Dongle device for LTE to take off (In INR)
Less than 800 800 - 1200
1200 - 1600 More than 1600
20
Conclusion
1. Incremental and well-targeted 2G prepaid to LTE postpaid migration strategy
• Identification of the Challenges and Market segment to target
• First launch impression vital
2. The competitive advantage shifts from “Pricing only” towards “Pricing and Quality of Services”
• Premium pricing is not the solution
• Innovative Pricing like combining 3G and LTE data
3. Gradual shift from Multi-SIM towards Single SIM market providing SP with greater control over subscribers
• Close collaboration with Device manufactures
• Affordable device pricing
Thank you !
21