Scenario Description and Business Opportunity

AnalysisThe Indian Broadband Scenario

R. Balajee

Midas Communication Technologies

Indian Telecom Scenario

I ndian Services Industry (FY ’06-07)Revenue (Rs crore)Categories

FY ’05-06 FY ’06-07

Growth(in % age)

Fixed line 34,161 30,190 -11.6

Cellular 35,994 56,183 56.1

NLD 9,015 7,186 -20.3

ILD 7,251 11,506 58.7

Internet andBroadband

1,620 2,040 26

VSAT 443 540 21.9

Radio Trunking 38 36 -5.3

TOTAL 88,522 107,681 21.6

I ndian Telecom Equipment I ndustryRevenue (in Rs Crore)Product Categories

FY ’05-06 FY ’06-07

Growth(in % age)

ENTERPRISE EQUIPMENT

Voice Solutions 1,106 1,413 27.8

Router 1,059 1,437 35.7

Switch 1,587 1,980 24.8

Modem 266 335 25.9

Audio Video Conferencing 74 100 35.1

WLAN 104 150 44.2

Network Storage 559 995 78.0Network Security 539 916 69.9

Structured Cabling 594 817 37.5

Network Integration 905 1,279 41.3

NMS 526 709 34.8

Others* 614 824 34.2

Total 7,933 10,955 38.1

CARRIER EQUIPMENT

Broadband Infrastructure 642 895 39.4

Wireless Infrastructure 11,411 16,677 46.1

WiMax 0 88 NA

Telecom Cables 1,459 961 -34.1

Transmission 765 1,266 65.5

Test & Measurement 358 407 13.7

Telecom Software 11,519 17,871 55.1

Telecom Turnkey 2,837 3,688 30.0

VSAT 327 360 10.1Others** 380 550 44.7

Total 29,698 42,763 44.0

PHONES

Mobile Handsets 14,258 21,434 50.3

Fixed Phone 1,906 2,018 5.9

Total 16,164 23,452 45.1GRAND TOTAL 53,795 77,170 43.5

V&D estimates CyberMedia Research

Broadband Blues• 2.47 million Broadband subscribers

– As of July against internet subscriber base of 9 million– Compared to 56million in china where 100000 subscribers have begun on IP-TV

expected to reach a million– How much of 2.47 million can afford real sustained 2Mbps?– 48 million copper wired homes with falling ARPU’s

• IP-TV more a bundled service than Driver– 2.5 million subscribers on DTH growing towards 6 million– Pirated DVD’s at Rs.35– Is IP-TV Content Aggregation Strategy or Data Strategy?– Long term impact of internet video on IP-TV market ?

• Broadband need they create is different from IP-TV

• VOIP Services– Growth of ILD based on VOIP– Domestic VOIP plagued by QOS issues

Fixed and Mobile Growth

Top Fixed Operators (Based on Revenue)Revenue (in Rs crore

)Rank Operator

FY '05-06 FY '06-07

Growth(in % age)

1 BSNL 25,195 21,020 -16.6

2 MTNL 4,988 4,116 -17.5

3 Bharti Airtel 1,320 1,693 28.3

4 TTSL 1,081 1,584 46.5

5 TTML 713 924 29.6

6 RelianceCommunications

513 460 -10.3

7 HFCL 261 285 9.2

8 ShyamTelecom 90 108 20.0

Total 34,161 30,190 -11.6

Top Fixed Operators (Based on Subscriber)Subscribers (in mn)Rank Operator

FY '05-06 FY '06-07

Growth(in % age)

1 BSNL 36.77 36.70 -0.2

2 TTSL 4.02 4.36 8.5

3 MTNL 3.88 3.80 -2.1

4 RelianceCommunications

3.13 1.56 -50.2

5 Bharti Airtel 1.34 1.27 -5.2

6 TTML 1.04 0.75 -27.9

7 HFCL 0.23 0.25 8.7

8 ShyamTelecom 0.17 0.22 29.4

Total 50.58 48.91 -3.3

Top Indian Mobile Operators(Based on Subscribers)

Subscribers (millions) Growth Share

Company Circles 2005-06 2006-07 % %1 Bharti Airtel 23 19.6 37.1 90 23.9

2 BSNL 21 18.5 27.9 51 17.8

3 Reliance Communications 23 17.3 27.9 61 17.74 Hutchison Essar 22 15.4 26.4 72 16.8

5 Idea Cellular 11 7.4 14.0 90 8.96 Tata Teleservices (Group) 20 4.9 11.4 136 7.3

7 Aircel 23 2.6 5.5 111 3.58 MTNL 2 2.0 2.8 38 1.8

9 Spice 2 1.9 2.7 41 1.7

10 BPL Mobile (Mumbai) 1 1.3 1.1 (20) 0.7

Total 90.9 157.0 73 100Source: CyberMedia’s flagship telecom industry journal Voice&Data’s V&D 100 July 2007

Top 10 Service Providers (FY 2006-07)

Service Providers Revenue (in Rs. Crore ) Growth

Rank FY 2005-06 FY 2006-07 (in %age)

1 BSNL 40,177 40,135 -0.1

2 Bharti Airtel 11,291 17,888 58.4

3 Reliance Communications 10,766 14,468 34.4

4 Hutchison Essar 6,837 10,565 54.5

5 VSNL 4,797 8,857 84.6

6 Tata Teleservices 2,575 5,178 101.1

7 MTNL 5,561 4,923 -11.5

8 Idea 2,990 4,413 47.6

9 Aircel 977 1,507 54.2

10 Tata Teleservices Maharashtra 1,097 1,422 29.6

Total 87,068 109,356 25.6

Source: CyberMedia’s flagship telecom industry journal Voice&Data’s V&D 100 July 2007

PC Penetration

Quarterly PC sales figures from MAIT

Internet Penetration

Both Internet usage & ownership limited amongst the lower SEC’s because of High cost of enabling device, Cost of access from home or cyber café andavailability of content & hardware interface in vernacular languages.

Access Penetration

The driver for internet accessin the order are:

Communication needsEducational needsEntertainment needsOthers

Pricing of Internet Access

The low Indian ARPU has propelled the broadband growth this far. To expandinto newer socio-economic regions and classes, cost-effective access technologies, Intelligent service pricing and bundling of services to end-customers, Managed Services to Operators from Vendors,Vendor financing models based on revenue sharing are required.

Blockers for Broadband

Poor Fixed Line Growth

Low PC Adoption

Very Low ARPU Market

Summary : Key Enablers for Broadband Penetration in India• Broadband access infrastructure to compensate for poor Fixed Line

coverage– Wireless and/or Wire-line– Able to match a low ARPU subscriber base (Low Cost Access)– Seamlessly integrate with legacy back-haul (STM) as well as newer back-

haul (IP)– Ability to offer Voice/VOIP services inherently

• Offering Computing services to beat Low PC adoption– Remotely Managed Computing services

• Newer Service Pricing model to make way for High AMPU in low ARPU markets– Newer Revenue models including Rentals– Vendor Financing models with service providers

• Ex: CCB

Some Solutions• Fixed Wireless solution that can match the ARPU to facilitate

further broadband penetration– In-built with voice/voip capabilities– Cover distances ranging from 4Km to 10km– Need not deliver 10’s of Mbps, but upto an Mbps to deliver most

broadband services of today– No spectrum bottlenecks to resolve

• Fixed Wire line solution that can match the ARPU to facilitate further broadband penetration– Highly Cost Effective– Minimal Infrastructure requirements; Outdoor deployable network– No local power requirements to facilitate fast deployments; Remote

powered network– VOIP ready subscriber terminals– Triple-play capable network

BBcorDECT

Fixed Wireless Broadband Platform

DSL on Wireless

corVAN/Base StationAggregator

Local Exchange - PSTN

Local Exchange

V 5.2, CCS7,R2MF

Voice/VOIP

Soft-Switch

SIP/MGCP

IP Network

E1 on STM

Exchange Infrastructure platformcapable of evacuating up to 160Mbps

Seamless back-haul connectivityon E1 with TDM voice or IP withVOIP

Cost Effective for High and Low subscriber densitiesas well as high and low coverage areas

Internet

Antenna

T elephone

CPE

CPE capable of evacuating up to 1Mbps

E1 links Fiber or DMW Radio for Long distances

BaseStationDistributor

Radio Tower

Radio Tower

Base Stations

Base Stations

DSL connectivity on copperfor short distances

Base Station Site platformcapable of evacuating up to 32Mbps

On Air distance from 4Km to 10KmDECT Spectrum: 1880-1900 MhzNo new allocation of spectrum

Centralized, Micro-Cellular Architecture Deployment

• Choose a centralised location for corVAN, where voice/voip and IP traffic can be handed over to Exchange

• Locate the Base Station Distributors to create cell sites, wherever coverage is needed.

• Wireless or Fiber connectivity to the Base Station Distributors

• Base station configuration will depend on the subscriber densities.

Distributed, Micro-Cellular Architecture Deployment

•Locate a Base Station Aggregator where coverage is required.

•Extend IP or E1 V5/SS7 connectivity to BSA

•Create Base Station Cell Sites close to BSA location

•Base station configuration will depend on the subscriber densities.

Base StationAggregator

Radio Tower

XBS Array

E1 for TDM Voice

IP for VoIP/Data

Application Areas

• Fixed Wireless Broadband for low ARPU scenarios– Voice and Effective Broadband Data

• Broadband Wireless Coverage for TNF areas for Incumbents

• DECT Upgradation/Replacements

• Extending Last Mile Wireless Broadband for Community Specific applications and Public Utility services

Ethernet To The Home

High Bandwidth Services at Lowest TCO

Ethernet To The Home

Metro E (GE)

Telshine BackendSystem

10 TVChannels•5 off-air•5 server

Cisco Backend System

OmniSwitch

Cisco Switch

TV Broadcasting

hub (JRC @7TH

Floor)

Cisco4507

INTERNET•IP Telephony•Video Conferencing

M2404

AccessSwitch

AccessSwitch

AccessSwitch

5 off-air domestic

Channels via fibre

OANOC

Headend (BMC) Main Node (JRC) Ethernet To The Home at Access NodeThe Lowest TCO Solution

Triple-play readyCustomer Premises

NMS

RoadsideRoadside uPOPuPOP

M2404

M2404

100+V,10 AmpsAC Source

uPOPuPOP

AccessSwitch

Resident Resident buildingbuilding

Resident Resident buildingbuilding

Resident Resident buildingbuilding

Resident Resident buildingbuilding

Resident Resident buildingbuilding

Resident Resident buildingbuilding

Splitter CPE

Splitter CPE

Splitter CPE

Splitter CPE

Splitter CPE at every home

IP orAnalogPhone

PCIP Set Top Box

Rugged, outdoor Managed Ethernet solution

Remotely powered from a central location

ETTH Product Family

Access and Aggregation Switch: M240424 FE & 4 GE ports, supports 2 optical fiber Gigabit Ethernet interfaces (SFP)Advanced Layer 2+ feature set including VLAN Stacking, Multicast

Metro Ethernet Ring

M2404

Access Switch

Resilient Distribution Switch: C16 Switch16 FE ports with multiple uplink ports supportedPowered remotely via PoERange of 300 meters @ 10MbpsManageable SwitchIdeal for higher subscriber densities and outdoor

Access switch: C5 Switch5 FE ports, cascading support on one of the ports Powered remotely via PoEIdeal for indoor and low subscriber debsitiesExtends service up to 300m from aggregation switch (M2404) using up to 2 C5 switches

C5 Switch

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Increase service reach of Metro Ethernet without compromising on Service Levels and QoS

Splitter CPE

Splitter CPE similar to C5 Switch withAnalog Telephone Interface for VOIP services

ETTH - Some Deployment Scenarios

FE

C16 Switch

WiFiAccess Point

FE

FE

FE

C5Switch

C5Switch

Gigabit Ethernet

FE

C16 Switch

FE

C16 Switch

C16 Switch

Internet

ETTH to augment Existing CATV Network…

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CATV Head-End Optic Node

Amplifier

Amplifier

Amplifier

Amplifier

Amplifier

Amplifier

Amplifier

Amplifier

Multi ServiceAccess Platform

M2404

Cs16

Cs16

Cs16

Cs16

Cs16

Cs16

Cs16

Cs16

Internet

ETTH to Enhance Wi-Max Network

AccessSwitch

100+V,10 AmpsAC Source

Wireless Device powered from remote through C-Switch

PoE adaptor

AccessSwitch

AccessSwitch

AccessSwitch

AccessSwitch

CentralizedPower

Distance between PC and subscriber -10Mbps -300m

Distance between switches100Mbps-150m

Lightning and surge protection

Managed Device

16 ports, 13,14 or 15 subscribers

VLAN

Application Areas• Centralized Power feed, No local infrastructure requirements

(outdoor mounting), Low TCO, High Bandwidth Services

• Enhancing the Metro-Ethernet Network– Extending Ethernet services from Building Switch to Street

• Enhancing the GPON– Ethernet access network extended up to 2 km from GPON CPE

• Augmenting the CATV Network– Extend Ethernet services up to 2 km from nearest fiber drop

• Enhancing the WiMAX/Pre-WiMAX/Microwave Network– Ethernet access network extended up to 2 km from CPE– Significantly lowers CAPEX

April 9, 2023 23

Other Efforts

• Remotely Managed Computing Services on ETTH platform

• Novatium’s NovaPC service running in K.K.Nagar on ETTH

• Rental Computing Models to facilitate Cheaper computing services

• Vendor Financing for ETTH solution to enable ISP’s to upgrade and expand their infrastructure with least capex investment– Based on Revenue Sharing

Thank You

www.midascomm.com

About Midas

Foundation

500 person R&D Team Long term collaborative R&D with IIT-M Founded in 1994 by IIT Madras alumni

DECT, GSM, WiMAX, Ethernet, Routing, VoIP

IP Portfolio

Network protocols & Management Systems

Reconfigurable MSC-BSC-BTS-ST architectures

Extensible ASICs

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Partners & Alliances

OEMs / Licensees

Solutions Partners

Manufacturing

Semiconductor Partners

@ccess

Nilgiri Networks

April 9, 2023 28

Global…

April 9, 2023 29

Midas Installations

Wireless, DSL, Metro Ethernet24+ countries, 3.5 mil Ports

Wireless Wireline Ethernet Access

BroadbandcorDECT 256+ Kbps Wireless DSL

Toll Quality Voice

LightGSMRural GSM

BroadbandcorDECT NG1 Mbps

WiMax SNAP!

SACS

Universal Loop Carrier

Multi Service Access

DIAS-xx seriesLayer 2 IP-DSLAMs

R17xx seriesEnterprise & SMB

routers

M2404 seriesL2+ & L3 Ethernet

Switches

C16 Series16 port long range

outdoorManageable switches

C5Layer 2, 5 port switch

with POE

Solutions for Emerging Markets

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