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Telecom BitswithFaisal Sattar
29thJan 2009
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Agenda
Introduction
The Current Downturn
Expectations from 2009
3G Vs WiMAX
Pakistan & WiMAX
Future of WiMAX
Words of Wisdom
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Introduction
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The Current Downturn
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Global Effect
Liquidity Crunch Banks have made bad investments and are now deep in
the hole
Large governmental bailouts to inject liquidityback in the market US $700 Billion
Japan $ 300 Billion
Europe $500 $ 800 Billion No/Limited credit for businesses
Telecos: With strong balance sheets and cash flows are
OK; but reduced spending in any case Vendors: Reduced Spending Layoffs
Handset market suffering due to low consumer spending
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Pakistan
Continued Political uncertainty
Massive rupee devaluation
Cut throat (and perhaps unsustainable) competitionin the telecom sector (calls @ 1 cent / minute)
Requirement of Industry consolidation?
Times are hard; economy is going bust; revenues are falling in $ terms, creditis scarce, cost of investment going up; return on investment is very poor!
3G ANYONE?
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Expectations from 2009
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Global Telecom Trends. 2009
Telecom Operators as utilities will fare better than mosthowever cost optimization and operational efficiencies will bekey (investment in OSS vs. new services)
Vendors as previously noted will face a significant slowdown
Three major trends in telecom for 2009 & beyond:1. The Web and telecom joining into a single business model
e.g., Google looking for a fast lane to its users from access providers to speed upcontent. Application developers to enrich services, iPhone and Andriod
2. Content delivery networks (CDN) & Software as a service (SAAS)3. Integrating social network feature & relationship knowledge into
communication Presence as a central framework for communication and collaboration
Technologies:FTTH, FTTN, Metro Ethernet, Femtocells, FMC, IMS,OSS Software
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Pakistan 2009
3G licensing towards the 2nd half of the year, withstart of rollouts Initially limited 3G deployments covering major cities
Voice will be a major part of justifying 3G business models
Possible consolidation in the Mobile Industry Bigger combined market share & double the spectrum; cost
efficiencies & savings in 3G license and rollout More choice of broadband then ever before lower
rates higher speed no / large GB caps
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3G vs WiMAX
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Cellular/Fixed: Worlds Converge
Coverage/Mobility
Coverage/Mobility
Data Speeds (Kbps) span a wide rangeData Speeds (Kbps) span a wide range
100,000100,0001010
802.11n (smart antennas)802.11n (smart antennas)
802.11 with Mesh extns.802.11 with Mesh extns.
802.16e802.16e--
20052005
WiMAXWiMAX
LocalArea
LocalArea
Fixed
Fixed
WideArea
WideArea
Mob
ile
Mob
ile
MetroArea
MetroAr
ea
Nomadic
Nomadic
802.16802.16
(Fixed LOS)(Fixed LOS)
Cellular IndustryCellular Industry
FixedFixed
WirelessWireless
IndustryIndustry
802.16a/d802.16a/d
(Fixed NLOS)(Fixed NLOS)
EVEV--DODO DO Rev ADO Rev AHSDPAHSDPA Enhanced UL (R6/R7)Enhanced UL (R6/R7)
3.5G3.5G2G2G
4G Air4G Air
InterfacesInterfaces
Fixed WirelessFixed Wireless
IndustryIndustry
2.5G2.5G 3G3G
802.11802.11
b/a/gb/a/g
WirelessWireless
BroadbandBroadband
HSDPAHSDPA
TDDTDD
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0 2 4 6 8 10
2 GB
WiMAX costsLESS than EVDO
& HSDPA
>6 GB
WiMAX is lessthan the cost ofEVDO & HSDPA
Technology Comparative Business Case
WiMAX provides maximum opportunity for data-intensive usage
Base Sites 2.7xTCO 2.4x
Base Sites 2.1xTCO 2.0x
Base Sites 1xTCO 1xWiMAX
EV-DOrAHSDPA
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Advanced Antennas
MIMO Matrix ASpace Time Block Coding (STBC)
Data StreamA
Data StreamA
Enhancing Coverage
MIMO Matrix BSpatial Multiplexing (MIMO-SM)
Data StreamA
Data StreamB
Improving Capacity
Interferer
WiMAXSubscriber B
WiMAXSubscriber A
Interferer
Beamforming
Directing the radiation pattern
MIMOMatrix A
MIMOMatrix B
OptimalSwitchingPoint
Signal to Noise Ratio
Spectral
Efficiency
MIMOAdaptiveMode
Selection
Enhancing coverage, capacity & indoor penetration with multi-antenna
implementations
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CSN
IMS
ASNAuthenticator
Paging Controller
FA/Router
Local mobility
Access PointHandover Control
Radio Resource Mgmt
ARQ/MAC/PHY
L2 Ciphering
Classification/ ROHC
PDN
SAE GW
IMS
HSS
MME
Authenticator
Paging Controller
Serv.SAE GW
Local mobility
E-Node B
Handover Control
Radio Resource Mgmt
ARQ/MAC/PHY
L2 Ciphering
ROHC
WiM
AX
LT
E
WiMAX and LTE Architecture Comparison
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WiMax in Pakistan
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Broadband MarketUnderserved with huge
Growth Potential
Internet Users:
17.5M Internet as forMarch/08 from only 133kusers in Year 2000
Growth (2000-2007):
8,862% Broadband User:
170k as of Sept 08
10.4% penetration
90.5M Mobile Subscribers(Oct 08)
5.5M PCs growing by1M/year
SOURCE: PTA Telecom Quarterly Review, March 2008
Pakistans Data IndustryKey Growth Indicators
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2Q 2008December 2007
10th with
12.4M users
7th with
17.5M users
Pakistan in Asia Top 10 Internet Countries
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Q1 Q2 Q3 Q4
Wateen has deployed 35,000+ CPEs as of Q2 2008
Have ordered 198,000 CPEs, plan
to complete the order within the
next year
2009
Invested $50 million to improve its services; launched itsBroadband Entertainment Portal and new packages for its
DSL subscribers
Launched PTCL Smart IPTV with thefollowing features: VoD, TSTV, Parental
Control, EPG & NVOD
20
0
8
20
0
9
Expand to: Lahore, Islamabad/Rawalpindi & Faisalabad
Expected to launch
in IslamabadExpand to: Karachi, Lahore, Rawalpindi & Faisalabad
Expected to
launch in Karachi
Launched EVDO
WiMax Rollout
announced!
Mobilink Infinity WiMAX network
Broadband Landscape
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Broadband Competition
DSL will be slow to roll-out and hard to maintain due to operational
challenges at PTCL
EVDO upgrade by WLL players not economically scalable Cable Operators are fragmented (900+) and have poor infrastructure
3G networks will start rollout in 4Q 2009
WiMax operators without access to cell sites will have a difficult time
in network roll out
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Bringing broadband to Pakistan
The speed of this process will depend on technology evolution and the drive of the broadband
industry
Increasing affordability Lower cost of CPEs
Shared-access solutions
Prepaid with low cost of ownership(affordability)
Make it plug & play
Increasing value of broadband
(educate, create interest and increaseproximity):
Sponsor education centres (schools,
universities, etc.)
Broadband centres in various cities
(pre-rollout) Partnership and alliances for content
and services. E.g. Google
USF/World Bank programs
WiMAX TodayWiMAX Tomorrow
Mass Market
Main Growth Drivers
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Future of WiMAX
WiMAX offers a solution for marketswith low broadband penetration and
poor fixed line infrastructure It should do great in India, Pakistan etc..
Where there is good DSL / Cablecomplemented by 3G networks, thereis no need for WiMAX & these markets
will migrate straight to LTE Europe
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Word of Wisdom
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From The Last Lecture by Randy Pausch
Brick walls are there to show us ourdedication
Dont bail, the best gold is at the bottom of
the barrel of crap Get a feedback loop & listen to it Show Gratitude
Dont complain; just work harder Be good at something; it makes you
valuable
Find the best in everybody Be prepared; luck is where preparationmeets opportunity
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Thanks a lot!