internet for the next...
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Internet for the Next BillionBuenos Aires, November 26th, 2009
1 © Nokia Siemens Networks
Nokia Siemens NetworksConnecting the Next BillionConnecting the Next Billion
5 billion people connected
The next billion i i
Solutions for the
Services for the
A complex ecosystemvision for the
next billionfor the next billion
ecosystem
2 © Nokia Siemens Networks
Our market vision 2015 – the World connected
Applications Multitude ofApplications predominantly in internet
Multitude of business
models
5 billion people5 billion people connected
Broadband everywhere
3 © Nokia Siemens Networks
The challenge of connectivity: Affordability
Global Income Pyramid
Voice & Internet/IP
0,8b >40$/day
IP connectivityaffordability barrier at 1.2bn(2007)
Voice & No Internet/IP
1 3b 4$/d
1.5b 4-40$/dayVoice affordability barrier at 3bn(2007) 1.3b 4$/day( )
No voice & No Internet/IP
1.4b 2$/day
Source: Nokia Worldmap 2006 NET Strategy & Technology
1.3b 1$/day
4 © Nokia Siemens Networks4 © Nokia Siemens Networks
Source: Nokia Worldmap 2006, NET Strategy & Technology
Towards universal access
4 5004 billion in 2009
3 500
4 000
ion)
3 billion in 2007
2 500
3 000
crib
ers
(milli
2 billion in 2005
1 500
2 000
loba
l sub
sc
1 billion in 2002
Source:500
1 000G
Source: Nokia estimate, Dec 20070
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e
Over 1 5 million mobile subscribers every day mostly coming from emerging markets
5 © Nokia Siemens Networks
Over 1,5 million mobile subscribers every day, mostly coming from emerging markets
New growth will come primarily from lower income segmentsincome segments
Example income distribution
Expected penetration in 2009Penetration nowPopulation without mobile
p p
opul
atio
nSh
are
of p
o
High Upper mid Mid Low Very low
Income classes
S
6 © Nokia Siemens Networks
The opportunity in New Growth Markets
User penetration (%)100
User penetration (%)100
Mature markets Emerging markets
80
100
80
100PC penetration
Cellular user penetration
40
60
40
60p
PC penetration
2003 2005 2007 2009 20110
20
2003 2005 2007 2009 20110
20C pe et at o
Cellular user penetration
• Overall high growth opportunity in emerging marketsTh ll l t ti d th PC t ti b f• The cellular penetration supersedes the PC penetration by far, which drives our believe that mobile owners will drive the growth
• Internet in emerging markets will be fixed and mobile
7 © Nokia Siemens Networks
Source: Nokia Siemens Networks 2007
The Connectivity Scorecard studyGroundbreaking study that ranks countries on approximately 30Groundbreaking study that ranks countries on approximately 30 indicators of connectivity contributing to social and economic prosperity
Created by Leonard Waverman, professor of economics at London Business School us ess Sc oo
Conducted under his direction by global economic consulting firm LECG and commissioned by Nokia Siemens Networks
Key findings:•Not even the world’s richest countries can afford to become complacent about their current telecom and computingtheir current telecom and computing profile•Every nation has substantial scope for re-organizing government, business and
8 © Nokia Siemens Networks
consumer activity to more fully reap the benefits of technology
Latin-America TCO facing large differences with other emerging economiesother emerging economies
18.00T
14.00
16.00TaxServiceHandset
SD 10.00
12.00
US
6.00
8.00
Source: 2.00
4.00
Nokia, November 20070.00APAC Eastern Europe
and CISLTA MEA
9 © Nokia Siemens Networks
APAC has clearly the lowest TCO across regions
Monthly TCO per country25
20
25
15
US
dol
lars
10
Average 13.16 US dollars
U
5
Source: Nokia, November 2007
nka
dia
esh
tan
bwe
and
uay
esia
olia pia
ina
dan
tius
dia
nes
sia
ysia aiti
ypt
ala
via
am tan
tan
dan
ana
eria ina
ep.
ana
nda
nia
gal
bia
eria
mb. ras
ngo
tan
had
ola
xico bia
key
hile
rica
bia
jan
uay
cco
ova
nya
oon
tan
dor
0
Only four countries meet the monthly TCO target of USD 5 all of them in APAC
Sri
Lan In
Ban
glad
eP
akis
tZi
mba
bTh
aila
Par
agu
Indo
neM
ongo
Eth
io Ch
Sud
Mau
ritC
ambo
Phi
lippi
nTu
niM
alay H Eg
Gua
tem
Bol
iV
ietn
aTa
jikis
tK
yrgy
zst
Jord
Gha
Alg
eA
rgen
tD
om. R
eB
otsw
aU
gan
Tanz
aS
ene
Col
om Nig
eM
ozam
Hon
du Con
Kaz
akhs
tC
hA
ngM
exN
ami
Turk Ch
Sou
th A
frZa
mA
zerb
aij
Uru
guM
oroc
Mol
do Ken
Cam
ero
Turk
men
ist
Ecu
ad
10 © Nokia Siemens Networks
Only four countries meet the monthly TCO target of USD 5, all of them in APAC
High TCO/GDP per capita ratio = low penetration100%
fair medium highSouth Africa
ArgentinaMalaysia Chile
T k
100%
90%
Thailand
Mauritius
yTurkeyTunisia Uruguay
JordanAlgeria Colombia
EcuadorBotswanaGabonKazakhstan
80%
70%Kazakhstan
Guatemala El SalvadorParaguay
Brazil Guyana
AzerbaijanMoroccoPhilippines
MexicoArmeniaDominican
Republic Georgia
60%
50%
HondurasGeorgiaPeru
MauritaniaHaiti
PakistanChinaNamibia Bolivia
Sri Lanka
Lebanon MongoliaEgypt Angola
CongoSyria
IndonesiaSwaziland Vi t
Senegal
NicaraguaMoldova
KyrgyzstanGhana
Cote d’Ivorie
Kenya
40%
30%
netr
atio
n
SyriaSwaziland
IndiaSudan
VietnamBangladesh
Cambodia
NigeriaGhana
Zambia
ChadZimbabwe
Guinea
Cameroondeshoto
Kenya
Tajikistan TanzaniaMozambique
Madagascar
20%
10% Uganda
TCO to GDP per capita ratio Source: Nokia, November 2007
Pen Turkmenistan Madagascar
Ethiopia0%0% 10% 20% 30% 40% 50% 60%
11 © Nokia Siemens Networks
TCO to GDP per capita ratio Source: Nokia, November 2007
Latin American Countries position
Digital inclusion requires much more than just connectivity
Affordability
connectivity…Literacy: language and ITAffordability
TCO from consumer and operator
tiperspective
Access to technology and access Personal
S M j Lii Vih ä 1999 ( d t d)
to servicePersonal value of the service
12 © Nokia Siemens Networks
Source: Marja-Liisa Viherä 1999 (adapted)
Nokia Siemens NetworksConnecting the Next BillionConnecting the Next Billion
5 billion people connected
Solutions for the next billi
Services for the
A complex ecosystem
The next billion billion for the
next billionecosystemnext billion
vision
13 © Nokia Siemens Networks
A customized solution for a challenging environment:
Transmission not available to
environment:Nokia Siemens Networks RLU project at Oi, Brazil
RRRR
RNRNCECEMAMA
APAPTransmission not available to PGMU locations
Deployment of terrestrial Tx
TOTOMTMT
ROROACACBABA
AMAM PAPA
SESEALAL
PEPEPBPB
RNRNCECE
PIPIcapability only possible to connect 1 public payphone to almost all locations with between 100 – 300 i h bi (2569 l i )
GOGO
MTMT
MSMSMGMG
ESES
BABA
Other locations – 300 thru 600 inhabitants – called for 1. an
inhabitants (2569 locations)
PRPRSCSC
MSMSSPSP RJRJ access device able to offer
telephone, fax and Internet and 2. digital transmission to
Total 4500 rural sites voice and broadband data services
RSRS connect these services to Oi’s network. (1935 locations)
14 © Nokia Siemens Networks
Total 4500 rural sites, voice and broadband data services, public and private users
A solution matching Latin-American environmentalAmerican environmental conditions:Nokia Siemens Networks RLU
Solar power supplySatellite feeding
RLU
RLU site at a school
15 © Nokia Siemens Networks
Nokia Siemens Networks Village Connectionmeeting the challenge of connecting the next billionmeeting the challenge of connecting the next billion
The challenge:• Profitable mobile connectivity for rural• Profitable mobile connectivity for rural
subscribers who typically can afford US$ 3 per month
The solution: Village Connection• Significantly reduced TCO through
novel network architecture and slimnovel network architecture and slim site solution
• New business model enabled by local subscriber managementby local subscriber management
Ready for roll-out: • Connecting communities in India now
Optional Solar Panel
• Connecting communities in India now• Global roll-out starting 1Q2008
BTS BatteryPC
16 © Nokia Siemens Networks
y
Nokia Siemens Networks Village ConnectionVillage Connection
AntennaAntenna
Base Station
PC & Site WorkPC & Site Work
17 © Nokia Siemens Networks
Evolution from affordable voice to Internetvoice to Internet
Consumers will want to
Phase 1: Voice services Phase 2: Shared internet Phase 3: Personal internet
PersonalConsumers will want to try out the benefits that internet will bring and understand the valuePersonal
GSM Voice Sh d
Personal mobile with internet
GSM Voice + SMS Shared
mobile with internet
Internet kiosk to access Internet withShared
Personal PCInternet with
assistanceSharedGSM phone
Shared PC
Village Connection Village Connection + Internet kiosk
Broadband services
18 © Nokia Siemens Networks
+ Internet kiosk
Nokia Siemens NetworksConnecting the Next BillionConnecting the Next Billion
5 billion people connected
Services for the next billi
A complex ecosystem
The next billion
Solutions for the billion ecosystemnext billion
visionfor the next billion
19 © Nokia Siemens Networks
Services to match with end-users needs
E-Government Health Care• Documentation• Job Searching • Taxes Collection
• Alerts / Reminders• Patient Surveillance• Prevention Campaigns• Taxes Collection
Mobile Banking
• Prevention Campaigns
Small Businessg• Payment / Cashing• Stock Exchange • Money / Credit transfers
• Local Advertising• Payment / Financing• Marketplace Integration• Money / Credit transfers
Education
• Marketplace Integration
Agriculture• Distance Learning• Content Distribution• Technical Training (troubleshoot)
g• Weather• Market Information• Commodities Prices
20 © Nokia Siemens Networks
• Technical Training (troubleshoot) • Commodities Prices
Nokia Siemens NetworksConnecting the Next BillionConnecting the Next Billion
5 billion people connected
A complex ecosystemThe
next billionSolutions for the
Services for thenext billion
visionfor the next billion
for the next billion
21 © Nokia Siemens Networks
Find your new rolein the complex ecosystemin the complex ecosystem
Schools Operators Competence:Access: AffordabilityUniversities Vendors
Authorities
p• IT skills• Rural
coverage• Regulatory
environment
Affordability
Authorities
NGOs
• Political initiatives
Local
Health careproviders
ISPs Motivation:• E-government• Relevant and
l l
• Banking• Entertainment
L l
• Health care• EducationLocal
companies and entrepreneurs
Individual users
Banks local content
• Social media• Job information
• Local community commitment
• Buy/sell• Support
for small businesses
users
22 © Nokia Siemens Networks Mobile World Congress 2008, Barcelona22 © Nokia Siemens Networks
The vital role of multi-stakeholder cooperationPrivate sector
Affordable
Market expansion
Affordableconnectivity
Enabling Socio-economicPublic sector Enabling environment
Regulation & initiatives
Socio-economic benefits Consumers
ICT adoption
Income growth
& initiatives adoption
Social investment
Ci il i t
23 © Nokia Siemens Networks
Civil society
Cooperation is needed to bring digital inclusion
What can the private sector do?• Focus on the total cost of ownershipp• Cost-effective end-to-end solutions• Affordable and innovative devices and services
What can governments and regulators do?• Independent regulator to foster healthy competition• Compliance with global technological standards• Imposing low or eliminating all taxes and duties• Imposing low or eliminating all taxes and duties
on mobile devices, network infrastructure equipment and servicesD li i l t f k th t f ilit t• Delivering a regulatory framework that facilitates convergence
24 © Nokia Siemens Networks
Conclusion: Nokia Siemens Networks and the digital inclusion challengeand the digital inclusion challenge
5 billion people connected
• Innovate to serve new customersAdd b th l d b• Address both rural and urban communications needsGracias!
• Adapt technology to social needs• Make services affordable• Work with authorities
25 © Nokia Siemens Networks
PresenterN ki Si N t kNokia Siemens Networks
Guillermo Wichmann
26 © Nokia Siemens Networks