Alternativas tecnolgicas para el Servicio Universal

1
Alternativas tecnológicas para el Servicio
Universal
Claudia Paludo Industrial marketing
Manager claudia.paludo_at_nokia.com
2
Agenda

• LTA Mobile Market
• Roadmap to Bridge the Digital Divide (End Users )
• Expanding Network Coverage to Rural Areas to
  serve Universal Access target ( Network)

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The Real Digital Divide
Quotes for best market prices

• Encouraging the spread of mobile communications
  is the most sensible and effective response to
  the digital divide.
• - The Economist March 12th 2005

4
Mobile Penetration in Latin America
Source EMC, Dec 04
5
Strong expected mobile growth in Americas
Mobile subscriber growth expectation from 2004 to
2009
Source EMC Mobile Subscribers Forecast 2004
6
What Needs to be Done to Accelerate Universal
Access
500
x
400
Million subs
300
Mobile subscribers (millions)
200
100
0
Penetration 32
Penetration x
7
Penetration by Income Segments in Latin America
Source Pyramid Research
8
Roadmap to bridge the digital divide
Total cost of Ownership ( Phone Service Cost)
Affordable communications
Universal Access
Minimum denomination/ Micro prepaid
9
Total cost of ownership of mobility
Environment

• Custom duties
• Taxation

• Competition
• Taxation

20
80
10
Prepaid call tariffs Latin America vs the rest
of the world
Regional Calls Tariffs vs Regional Star Country
0,40
0,35
0,30
0,25
0,20
Call Tariff in USD
0,15
0,10
0,05
0,00
Kenya
Bolivia
India
Ukraine
Morocco
Phillipines
MENA Average (8)
East Asia Average (6)
South Asia Average (4)
Latin America Average (9)
CIS/Eastern Europe Average (4)
SS Africa (excl S.Africa) Average (6)

Source Nokia Affordability Line study, 2004
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The importance of small denominations
The high value of prepaid denominations prohibits
low income customers using mobile services.
12
ARPU will not be reduced due to small denomination
lower validity, same cumulative effect
5USD
spend
Recharge 5 USD with 30 days validity
Recharge 0.5 USD with 3 days validity
Time
13
Profitable business case for a wide ARPU range
70
Indonesia
Philippines
60
Russia
Egypt
Nigeria
Thailand
Italy
50
Taiwan
Spain
Finland
China
Singapore
Czech
France
Portugal
Canada
Switzerland
Turkey
40
Poland
Germany
Greece
Korea
Hungary
EBITDA
Mexico
India
Japan
UK
US
Venezuela
Austria
Colombia
30
Hong Kong
Netherlands
Chile
Denmark
Brazil
20
Argentina
10
0
0
10
20
30
40
50
60
70
ARPU (USD)
Fonte Merrill Lynch Sep2004
14
Subscribers per technology by end of Q4 2004
milj.

• Source of data EMC Feb 2005

15
Expanding Network Coverage to rural areas to
serve Universal Access Target

• Radio access costs are key when extending
  coverage (70-80 of network costs)
• Cost-effective rural coverage build-out requires
  savings on two levels
• Network level highest saving potential
• Role of coverage enhancement features
• Major savings from reduced number of sites
• Benefits of mobile system flexibility
• In long-term, only high quality network equipment
  saves costs
• Site level base station cost is only one part
  of it
• Site types for reducing overall site costs
• Outdoor BTS sites
• Shelterless sites

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Coverage enhancement solutions for lowering
network costs

• There are many options for reducing the site
  count

Avoid antenna combining - use combiner by-pass
Standard solution, widely in use
Higher mast
Permissions may be required, higher cost
Normally already in use in coverage limited areas
High gain antennas, Mast Head Amplifiers (MHA)
for cable loss compensation in uplink path
High power TRX or Booster for increasing BTS
output power
Due to uplink limitations, typically no real
impact on cell size
Adds up to 30 to cell coverage area, requires
AMR-capable terminals
Adaptive Multirate Codec (AMR)
Same capacity
333
Different subscriber density
333
190 subs/km2-30 km2 5700 subs served Antenna
height 25 m
3 subs/km2-1900 km2 5700 subs served (with SRC)
Antenna height 110 m
17
Adaptive Multirate Codec (AMR) for cost-effective
addition of coverage and capacity
Base Station Cell Coverage
Average profit increase per subscriber 9,90 USD
over three years.

• AMR Full Rate can result in 30 increased
  coverage area
• Better quality with measurements based frequency
  optimization
• - Increase in network capacity with more accurate
  frequency reuse
• Dropped call rates reduced by 24
• 16 improvement in Hand-over failure rate

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Nokia SRC key benefit for BTS sites 40
savings in CAPEX and OPEX

• Doubles the coverage area 50 fewer sites
• Increased coverage without compromising network
  quality
• SRC can be used in order to halve mast height to
  achieve target coverage compared to standard
  solution
• Total radio network saving over 5-year period is
  40

Calculated with Nokia standard BTS (222 with
SRCMHA), 50 m mast
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Nokia Extended Cell feature (up to 70 Km)

• Key benefits of the Nokia solution
• Extended coverage area allows to capture
  additional traffic and reduce costs
• Full capacity utilized 95 timeslots of 2 TRX
  are used for mobile traffic no wasted capacity
• The feature is based on 2 TRX
• regular TRX serving area up to 35 km
• second TRX with delayed receive signal serving
  the extended area (up to 70 km)
• By adding SRC to the site
• a lower mast can be used for achieving the same
  coverage
• output power in Extended TRX is boosted

Extended TRX
Regular TRX
Regular TRX
Regular TRX
Extended TRX
Extended TRX
Extended Cell site cell range 70 km coverage
area 9555 km2
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Network solutions must becost-effective to help
universal services
Base station

• Savings in network costs
• Expanding footprint

• Same coverage
• New site types available
• Fast roll-out
• Savings in site costs

Microwave radio
No RF cables, only AC-power cable
No shelter, no air-conditioning
Nokia MSS GSM/EDGE and 3G
H.248 Sigtran
MGW
MGW
IP, ATM or TDM
A

• Very high capacity
• Site cost savings
• Transmission savings

Iu-CS
PSTN
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Summary of Nokias end to end Technology options
for the Universal Access
Growth enablers
Nokia offering
Wide range of easy-to-use, affordable and
attractive entry handsets
Attract low income segments
Effective coverage solutions, AMR, SRC , MSC
Server,Extended Cell, Shelterless Site, Outdoor
BTS
Capa coverage cost / subscriber
Nokia micro prepaid and balance transfer solution
Service enablers
Fast revenue generation
Parallel network coverage rollout and handset
retail development
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MUCHAS GRACIAS !!
Claudia Paludo Industrial marketing
Manager claudia.paludo_at_nokia.com