midas - iitm 1 cordect will designed to connect developing countries ashok jhunjhunwala tenet group,...

Midas - IITMMidas - IITM1

corDECT WiLLdesigned to connect developing countries

ashok jhunjhunwalaTeNeT Group, IIT Madras, [email protected]


Challenges in Developing World

Developing World has very small teledensity waiting to be connected Internet is Power

Key Challenge can they afford it?


21.2

15.8

12.8

5.83.2

2.00.8 0.3 0.6

0

5

10

15

20

25

80 150 220 290 420 630 1040 1560 3730

monthly household income in $

mil

lio

n h

ou

seh

old

s

Take India as an example

Monthly telecom expenditure (assuming 4% income can be spent on telecom)

3.2 6 8.8 12 17 25 42 62 150

60% (37 million) of Urban Indian households can spend less than $ 6 per month on Telecom


Rural India can spend even less

102.1

17.010.0

3.9 1.9 1.0 0.3 0.30

20

40

60

80

100

120

80 150 220 290 420 630 1040 2510

monthly household income in $

mil

lio

n h

ou

seh

old

s

75% (119 million) households can spend barely $ 3.2 per month on telecom

Monthly telecom expenditure (assuming 4% income can be spent on telecom)

3.2 6 8.8 12 17 25 42 100


Low CAPEX required

Developing countries have very low Average Revenue per User (ARPU) less than $ 6 per month or $ 72 per year

An Operator can profitably serve these subscribers only by reducing capital expenditure (CAPEX) per line need CAPEX of under $ 200 per line

as opposed to $ 600 + CAPEX prevalent


corDECT designed towards this

TeNeT group of IIT Madras and Midas have a vision to enable India get 200 million

telephone and Internet connections need to bring down CAPEX per line to $200

• Access contributes to 65-70% of per line CAPEX

took up design, development and commercialisation of technologies for this

corDECT Wireless in Local Loop• specially designed for urban as well as rural areas

OPTIMA Fibre Access Network• to connect dense urban areas


corDECT Wireless in Local Loop

two lines 35 kbps Internet access & telephone connection supporting fax, PCO

and speakerphone Always On Internet Connection in near future

premier Internet Service at 70 kbps

DIU+

RAS

To Exchange

To IntenetIP

E1 (V5.2) voice

WS


External Antenna for Enhanced Range of 10 Km (LoS) and 25 Km with a repeater

WS-IP: Wallset with external antenna

35 kbps (premium 70 kbps) Internet traffic plus simultaneous voice



To PSTN

To Internet Total per line cost of $150 - $200

1 million lines under deployment


corDECT - System Architecture

10 Km

E1 (R2 / V5.2)

Voice

IP CBS

WS-IP

corDECT General Architecture

DIU

BSDE1


corDECT - System Architecture

10 Km

E1 (R2 / V5.2)

Voice

IP CBS

WS-IP

25 Km

RBS

Power Backup

corDECT General Architecture

DIU


Multi-Wallset : to serve lower income group

cuts the per-line cost to half

Shared Ethernet port for Internet access

Always On connection in near future


25 km range with RBS in sparse rural areas

uses DECT frequencies

no frequency planning needed

Relay Base Station (RBS)


Network Management System

SNMP based system Graphic User Interface enabled Fully secure network with access delegation at

the DIU Complete management of all OMC functions

even from remote locations Remote monitoring and processing of alarms,

faults, configuration and account management.


specially designed for small towns

fully loaded DIU Power requirements: 12 Amp BSD Power requirements: 1 Amp

scalable system : 300 lines and above viable DIU + CBS + backhaul cost : 20 % of per line cost

less than 100 sq ft space needed for a DIU

each wallset provides two lines a telephone and a Internet access line


corDECT will continue to dominate this market in future

PRESENT STATUS corDECT is lowest cost solution for

the developing markets Capex : $150-200/line

providing a voice connection and a 35/70Kbps data connection

Low upfront investment : less than $ 20K to start service in a town

FUTURE corDECT R&D driving

Cost /line down to $100 Data rate of up to 100 kbps for each channel

up to @ 2MB shared download Spectrum efficiency increase by a factor of 3 corDECT will continue to outpace 2.5 - 3G

technologies in fixed-wireless space


Driving Commercial Internet Connections in Rural India

Can Rural India Afford Internet Connections?

For commercial viable connections, one needs

Technology Business Model Organization Driving Applications


How does one serve people with incomes of less than a dollar a day?

Lower Connectivity cost

Aggregate demand


Lower Connectivity cost

CAPEX cost of telephone line was $ 600 plus in India barely two years ago required ARPU of $20 plus per month to break

even affordable to barely two percent of Indian

households

Innovative Technologies and better buying has reduced CAPEX to around $325 per line

moving towards $200 per line enabling 50% of Indian homes to afford telecom

rural connectivity cost reduced from $1500 to about $300 per connection


Aggregate Demand

in 1987 less than 5% of urban households had telephones 7 years wait for a telephone coin-box street telephones did not work long distance charges too high even for top income families

Entrepreneur-driven telephone booths (STD PCOs) introduced night time long distance charges reduced by a factor of 4

Today 950,000 STD PCOs covering every street of smallest town generate 25 % of total telecom income 300 million people use these PCOs


How does one connect Rural India

India has 600,000+ villages 650 million people

Need Technology Sustainable Business Model Organisation which thinks and acts Rural Driving Applications towards Rural Prosperity


Technology

BSNL’s Contribution: on the average one fibre connected rural exchange for every 150 sq km

a wireless system with 10 - 15 km range at existing fibre connected exchange would cover 80 - 85% of villages in India

CorDECT Wireless in Local Loop Developed by IITM and Midas Communications, Chennai

provides a telephone line and Internet connection in 30 Km radius


To PSTN

To Internet

A telephone line and a 35/70 kbps Internet line

• $ 150-200 per line price

1 million lines being deployed in 03-04

IITM - Midas



N-Logue : A Rural Service Provider aggregate demand into a kiosk using

corDECT Wireless in Local Loop ISP in a box : Minnow Reliable power back-up

$ 1000 (including taxes) per Kiosk providing telephone, Internet, multimedia PC with web-camera, printer and 4 hour power back-up for PC

plus Indian language software

set up by a village entrepreneur on the line of STD PCOs needs only $ 60 per month to break even

Organisations with Innovative Business Models

n-Logue Deployment Strategy

Application & Content Providers

Telephone Backbone

Internet Backbone

Scope:•1 –3 Talukas•25 Km radius, 2000 sq

km•4 – 500 K population•2 - 5 towns•300 -400 villages

LSPBank

s

ACCESS CENTRE

500 + Connections (at least 1 in each village)

Connections:•Individuals•Government

— schools and PHCs

• Kiosks

Rs. 50,000 / KioskKIOSK

OPERATOR BanksMicro Finance Organisations


What is the monthly income?

STD PCO $ 20+ Children learn typing

all kinds of on-line and off-line education $ 10+ Kiosk is a photography shop $ 6

also a video parlour on weekend evenings $ 6 email and browsing

voice mail and video mail $ 10+

e-governance access connect to taluka Government office for services $ 4

and much more

Word-processor in Indian Languages

Multi-lingual Office PackageIITM -

Chennai Kavigal


Mundi . . . .

A 60 year old from a villagenear Melur

Palaniamma had lost vision in both eyes since 2 years

tie-up with Aravind hospital -- Doctors confirmed that vision can be restored in at least one eye

IITM trying to develop Remote Diagnostic tools

Blood Pressure, Sugar & Iron, ECG Monitor, stethoscope

at total cost of $ 200


Crop comparison

Top: Ladies Finger Diseased with yellow mosaic

Below : Post treatment

Saving of $ 3,000 for the farmers Cost of information $ 0.40


E- Dr Vet ?

In Attapati village , Priya’s chicken was limping

Photo sent to Veterinary college Identified as Curled toe paralysis Cost for process

Earlier $ 4 This case $ 0.40


The Power of multi-party video communication

IITM - OOPS

Low bit-rate Video Conferencing (audio + video + text at 20 kbps and more)


Can Kiosks become Micro-banks? TeNeT and n-Logue working with ICICI

Remote Bill Payment Rural ATM Micro-finance Remittance

Credit and Product Marketing is one of the biggest requirement of Rural India


Do we have a model for sparser areas?

Fibre not available in 15% of areas in India Only about 50 to 100 villages in 20-30 Km

radius less population per village less available money

Technology Innovation

Business Innovation finance and buying/selling may make even larger

sense

• 8-10 voice channels + 64/128 kbps Internet satellite backhaul

• Each hub supports 16 to 20 remote sites with 2 Mbps downlaod

• $200 corDECT + $200 backhaul cost per connection

PSTN

Internet

2.4 m antenna3.8 m antenna

15 -20 Kms with 100 connections

For inaccessible Rural Areas

2 M

bps

-->

128

Kbp

s --

>

<-- 64 Kbps

ISRO-IITM


To Sum Up

Developing countries require unique solutions low CAPEX, OPEX rugged, low power

corDECT designed to meet this need requires adaptation in different situation

TeNeT / Midas team has done well in coming up with technical / business innovations

is today the best fixed wireless solution will remain so as new R&D comes with 2.5G / 3 G

corDECT offering

midas - iitm 1 cordect will designed to connect developing countries ashok jhunjhunwala tenet group,...

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