presentation to the expert committee on spectrum date: 26 th nov 2007
TRANSCRIPT
2 of 57confidentia
l
1. About RCOM
2. What is the real issue?
3. Spectrum Allocation
4. Spectral Efficiency innovations & TEC
Report
5. Re-farming, Re-alignment of Spectrum &
Capital Efficiency Measures
6. Summary & Recommendations
Presentation FlowPresentation Flow
3 of 57confidentia
l
Reliance CommunicationsReliance Communications
Largest fully integrated private sector communications company in India
5th largest company with market cap of over Rs. 1,50,000 Cr Second largest customer base serving 40 Mn customers. Only operator providing both CDMA & GSM services
CDMA Pan India GSM 8 circles mainly in Eastern India
Received approval for pan India GSM rollout services Paid an additional fee of Rs. 1650 Cr. for GSM services RCOM has paid the highest fee – Rs 3100 crore for operating
mobile services. India’s largest and only Next Generation & IP based network
pan India
Fully committed to the Nation’s telecom growth in the entire value chain
4 of 57confidentia
l
Parameter UoMLast 4 years
Current
Year March 08
Aggregate
Population Covered
% / Nos.
Crs.
50 %
55
40%
44
90%
99
Towns Covered
Nos. 10,000 13,000 23,000
Sites Nos. 14,000 26,000 40,000
Investment Rs.Crs. 32,000 20,000 52,000
RCOM – Exponential Growth Plan
RCOM’s Growth Plans – Significant contributor to India’s GDP Growth
5 of 57confidentia
l
Widest Coverage Plan for 07-08
Worlds largest Wireless Network Rollout in a yearWill cover all locations with over 1000 population with Voice & Data
Coverage UoM Oct - 07 Mar-08
Towns Nos. 10,000 24,000
Villages Nos. 300,000 500,000
Population % 55 90
Key Religious Sites
Nos. 333 677
Railway TrackKms %
48,000 65 %
63,000 85 %
National HighwaysKms %
35,000 60 %
55,000 95 %
State HighwaysKms
%85,00045 %
153,00080 %Rs. 20,000 Crs Capex
LargestUSO Roll ou7230 sites
7 of 57confidentia
l
Adoption of spectrum allocation criteria which:
1. Promotes spectral efficiency
2. Maintains and ensures the quality of service
3. Increases competition leading to achieve government targets.
What is the real issue?
What GSM Operators got / want
1. Received spectrum above 4.4 MHz almost with out any policy guidelines till 2006.
2. Received spectrum above contracted spectrum of 6.2 MHz
3. Continued to enjoy spectrum free
4. The March 06 WPC criteria was too low, necessitating revision
5. Both TRAI & TEC criteria in 2007, based on scientific inputs, now being contested - for
cornering & hoarding spectrum, & restricting competition.
6. Forcing the current framework to maintain oligopolistic interest.
What India needs
Need of the hour – Scientific approach for Spectrum Allocation norms
9 of 57confidentia
l
Evolution of allocation criteria
No SUBSCRIBER CRITERIA till Feb.02 – Adhoc Approach Spectrum Charges Policy issued for 4.4 MHz and 6.2 MHz. Spectrum allocated up to 6.2 MHz without any policy framework
almost free till Feb.02.
February 2002
Spectrum Charges Policy issued for 8 MHz and 10 MHz. Spectrum allocated up to 10 MHz without any policy framework
almost free till Mar.06.
Spectrum allocation linked to Subscriber Criteria based on Metro &
Circle Category .
Criteria abysmally low - Operators continue to serve 2-5 times more
subscribers vis-a-vis the criteria, without difficulties.
Over 50 Million subscribers added by the private dominant GSM
players within 18 months, without any additional spectrum.
April 2002
March 2006
No policy and lenient criteria led to cornering of spectrum
10 of 57confidentia
l
To refund 32 MHz*
excess spectrum
Evolution of allocation criteria
Aug.2007 Oct.2007
Allocation Criteria
Case for Refund@
Spectrum Availability
Revised & tightened by TRAI
Further revised by TEC Report
Start-Up Spectrum available for 3-4 new operators.
To refund 56 MHz**
excess spectrum
*Based on TRAI Norms
**Based on TEC Report
Adoption of TEC Criteria at the minimum – Right way forward
@ Across all Circles by all operators
First timeScientific approach
11 of 57confidentia
l
Spectrum allocation without Policy
Operators allotted 10 MHz with out policy framework
S.N. Operator Circle Date w.e.f
1 Aircel Tamilnadu Dec-04
2 Bharti Delhi Jul-03
3 BPL Mumbai Sep-04
4 Vodafone Delhi Oct-03
5 Vodafone Mumbai Oct-03
6 Bharti Mumbai Jan-06
7 Bharti Karnataka Jan-04
8 Vodafone Gujrat May-05
9 Idea Maharastra Apr-04
Operators allotted 6.2 MHz with out policy framework
S.N. Operator Circle Date w.e.f
1 Aircel Haryana Jan-01
2 Aircel Rajasthan Jan-01
3 Aircel UP(East) Jan-01
4 Bharti AP Apr-00
5 Bharti Chennai Aug-99
6 Bharti Delhi Aug-99
7 Bharti Karnataka Apr-00
8 BPL Mumbai Aug-99
9 Aircel Chennai Mar-00
10 Spice Karnataka Apr-00
11 Spice Punjab Apr-00
Arbitrary & Adhoc approach allowed cornering & hoarding of spectrum beyond eligible & contracted 6.2 MHz
12 of 57confidentia
l
WPC Criteria v/s Actual Subs.
Leading Operator - Mumbai
15
20
30
1.5
2
3
0
5
10
15
20
25
30
35
Mar'05 Mar'06 Oct'07
Su
bs
(mn
)
0
0.5
1
1.5
2
2.5
3
3.5
4
Su
bs
(mn
) /
MH
z
Subs (Lakh) Subs (Lakh)/MHz
Leading Operator - Delhi
16
20
36
1.6
2.1
3.6
0
5
10
15
20
25
30
35
40
Mar'05 Mar'06 Oct'07
Su
bs
(mn
)
0
0.5
1
1.5
2
2.5
3
3.5
4
Su
bs
(mn
) /
MH
z
Subs (Lakh) Subs (Lakh)/MHz
WPC criteria outdated, to be replaced at least by TEC Report norms
Subscriber / MHz …2 to 5 times
higher than WPC criteria
2.21.41038IdeaMaha.
5.00.8838VodafoneUP (E)
2.20.69.816VodafoneKolkota
3.00.58.616AircellChennai
2.411030VodafoneMumbai
2.911036AirtelDelhi
Actual vsWPC
Criteria
VLR Criteria Subs (Lakh) /
MHz
SpectrumMHZ
Customers (Lakh)
Leading operator
Key Circles
VLR:80% of subs
2.21.41038IdeaMaha.
5.00.8838VodafoneUP (E)
2.20.69.816VodafoneKolkota
3.00.58.616AircellChennai
2.411030VodafoneMumbai
2.911036AirtelDelhi
Actual vsWPC
Criteria
VLR Criteria Subs (Lakh) /
MHz
SpectrumMHZ
Customers (Lakh)
Leading operator
Key Circles
VLR:80% of subs
13 of 57confidentia
l
Myths Propagated by GSM operators related to Spectrum
1. Poor network QoS due to paucity of Spectrum
2. Low ARPU and operators unable to afford additional capex
3. Indian operators require more spectrum as a) Have lesser spectrum relative to Global Operators
b) Higher MOU per sub in Indiac) already deployed available spectral efficiency enhancing technologies,
All the above continue to lead to excess & ineligible allocation of Spectrum to private dominant GSM operators
14 of 57confidentia
l
Myth 1 - Propagated by GSM operators
95% operators meet the benchmark
In Metros, 100% of the private operators
have met benchmarks
QoS parameters needing attention are
POI congestion & Help line, which are
not related to spectrum
On the Contrary, QoS showing improving
trend over last 8 quarters
Spectrum availability is only one of the
many factors for QoS improvement
Source: Network QoS report by TRAI – Sep 2007
50
60
70
80
90
100
Jul-Sep-05
Oct-Dec-05
Jan-Mar-06
Apr-Jun-06
Jul-Sep-06
Oct-Dec-06
Jan-Mar-07
Apr-Jun-07
Accumulated downtime (<24 hrs)
CSSR (>95%)
Service access delay(<15 secs)
SDCCH / Pagingchannel congestion(<1%)TCH congestion (<2%)
Call drop rate (<3%)
% connections withgood voice quality(>95%)
QoS has improved over last 8 quarters due to availability of Spectrum
Poor network QoS due to paucity of spectrum
Reality
15 of 57confidentia
l
Spectrum Availability is a low priority criteria for maintaining QOS.
Network Planning to meet Coverage & Capacity Objective
Optimal Frequency Plan using
Adhoc Technique
Availability of spectrum
Site Database Audit &correction .
Network Performance Requirements
Pri
ori
ty
Network Optimization – Drive Testing/ Analysis & Corrective action
Implementation of new features to improve network quality and capacity
Availability of Skilled Man power for Planning & OptimizationHighest
Lowest Spectrum is one of the low priority requirements to determine QoS
Myth 1 - Propagated by GSM operators
7 dimensions of QOS
16 of 57confidentia
l
10%
15%
20%
25%
30%
35%
40%
2003 2004 2005 2006
EB
ITD
A(%
)
Australia Hong Kong India UK US Brazil
EBIDTA margin in India higher than any of the
developed countries in the world e.g. UK, USA, Hong
Kong, Brazil, Australia, Spain.
Highest EBIDTA expansion in the world during 2003-
2007. 17%-38%
Analysts forecast future EBIDTA margin expansion in
spite of falling ARPU
Indian Telecom Companies highly valued with
EV/EBIDTA multiple of ~15 by analysts - UBS,
Macquarie, Lehman Bros, Merrill Lynch
Over Rs. 50000 crore committed capex spends by
Wireless industry this year as Outlooks are healthy
Indian TelCos – valuations & EBIDTA margin among top 5 in the world Source : ML wireless Matrix, Q 4
2006
Myth 2 - Propagated by GSM operators
EBIDTA Margin Comparison
EBIDTA Margins (Q2, FY07-08)RCOM : 43%Airtel : 43%
Low ARPU and operators unable to afford additional capex
Reality
17 of 57confidentia
l
Timing of network rollout & innovation availability & outlook different for developed markets & India India needs to deploy spectrally efficient solutions more aggressively due to low teledensity and its
unique demographic profile Indian telecom market is growing when technology is available for increasing spectral efficiency
many folds. Operators in USA, Hong Kong with lesser spectrum serve markets with much higher traffic density Higher CAPEX can be easily afforded by operators.
Source : Interconnect associates, Telecordia
Indian operators have relatively lesser spectrum, higher MOU per sub & have already deployed available spectral efficiency enhancing technologies, hence
require more spectrum
In France, Netherlands, Germany, Spain, UK have 100 MHz amongst 3-4 operators China has 60 MHz among 2 operators
Reality
Myth
Myth 3
GSM operators want to enrich themselves at the cost of national objectives by demanding more spectrum
18 of 57confidentia
l
Bharti Case Study
28 Mn subscribers added over a base of 23 Mn subscribers (120% of base) added without additional spectrum in last over 18 months
S No.
CircleCurrent
Spectrum held
Spectrum issued date
Subsribers as on Eligibility date as per
WPC criteria for next
tranche (Mn)
Subscribers added without
additional spectrum as per current
criteria(Mn)
Spectrum in excess
beyond 6.2 MHz
Additional Spectrum
as per WPC criteria
1 AP 7.8 Feb-04 1.8 3.16 1.6 7.2
2 Gujarat 6.2 Apr-02 1.0 1.06 3.8
3 Karnatka 9.8 Jan-04 2.6 3.33 3.6 5.2
4 Maharashtra 6.2 Apr-02 1.0 2.47 8.8
5 Tamil Nadu 6.2 Mar-02 1.0 2.16 6.2
6 Haryana 6.2 Apr-02 0.8 0.08 1.8
7 Kerala 6.2 Mar-02 0.8 0.56 3.8
8 MP 6.2 Apr-02 0.8 1.48 6.2
9 Punjab 7.8 Feb-04 1.3 1.65 1.6 7.2
10 Rajasthan 6.2 Aug-00 0.8 2.11 8.8
11 U.P.(E) 6.2 Mar-05 0.8 1.61 6.2
12 U.P.(W) 6.2 Apr-02 0.8 0.55 3.8
13 WB 4.4 Mar-04 0.4 1.11 5.6
14 Assam 6.2 Mar-05 0.5 0.21 1.8
15 Bihar 8.0 Mar-06 0.9 2.45 1.8 7.0
16 HP 6.2 Sep-03 0.5 0.20 1.8
17 J & K 6.2 Mar-06 0.5 0.24 1.8
18 North East 4.4 Dec-04 0.3 0.10 1.8
19 Orissa 8.0 Mar-06 0.8 0.56 1.8 4.4
20 Delhi 10.0 Jul-03 2.0 1.60 3.8 5.0
21 Mumbai 9.2 Jan-06 2.0 0.15 3.0 3.2
22 Kolkata 8.0 Jan-05 0.8 0.72 1.8 4.4
23 Chennai 8.6 Jan-06 0.8 0.62 2.4 3.8
Average 7 MHZ
23 28 21 110
BhartiCriteria MHz
Refund*TEC 21
TRAI 11
AdditionalAllocation*
Demand
WPC 110
WPC+25% 78
WPC+50% 58
*Across all Circles
Demand for additional Spectrum – Invalid
Fit case for refund of 21 Mhz
19 of 57confidentia
l
Vodafone Case Study
18 Mn subscribers added over a base of 19 Mn (100% of base) added without additional spectrum in last over 18 months
S No.
CircleCurrent
Spectrum held
Spectrum issued date
Date of Eligibility for next tranche
as per current criteria
Subsribers as on Eligibility date as per
current criteria for
next tranche (Mn)
Subscribers added without
additional spectrum as per current
criteria(Mn)
Spectrum in excess
beyond 6.2 MHz
Additional Spectrum
as per WPC criteria
1 AP 6.2 Mar-02 Jul-06 1.0 1.09 1.8
2 Gujarat 9.8 May-05 May-06 2.6 2.66 3.6 5.2
3 Karnatka 8.0 Jan-05 Apr-07 1.8 0.62 1.8
4 Maharashtra 6.2 Dec-99 Oct-06 1.0 0.87 1.8
5 Tamil Nadu 6.2 Dec-99 Mar-07 1.0 1.19 1.8
6 Haryana 6.2 Jan-01 Mar-07 0.8 0.31
7 Kerala 6.2 Dec-99 Nov-06 0.8 0.80 1.8
8 Punjab 6.2 Jan-04 Jul-06 0.8 0.73 1.8
9 Rajasthan 6.2 Jan-01 Jul-06 0.8 1.55 3.8
10 U.P.(E) 8.0 Jan-06 Feb-06 1.3 2.48 1.8 4.4
11 U.P.(W) 6.2 Mar-05 Jun-06 0.8 1.52 3.8
12 West Bengal 4.4 Mar-04 Jan-06 0.4 1.75 5.6
13 Delhi 10.0 Oct-03 Aug-06 2.0 0.99 3.8 2.4
14 Mumbai 10.0 Oct-03 Mar-06 2.0 0.99 3.8
15 Kolkata 9.8 Jul-06 Mar-07 1.3 0.36 3.6 0.2
16 Chennai 8.0 Jun-06 May-07 0.8 0.21 1.8
Average 7.35 MHZ
19 18 20 34
Vodafone
Criteria MHz
RefundTEC 20
TRAI 9
AdditionalAllocation*
Demand
WPC 73
WPC+25% 50
WPC+50% 34
Demand for additional Spectrum – Invalid : Fit case for refund of 20 MHz
*Across all Circles
20 of 57confidentia
l
Idea Case Study
7 Mn subscribers added over base of 12 Mn (60% of base) added without additional spectrum in last over 18 months
S No.
CircleCurrent
Spectrum held
Spectrum issued
date
Date of Eligibility for next
tranche as per current
criteria
Subsribers as on Eligibility date as per
current criteria for next
tranche (Mn)
Subscribers added without
additional spectrum as per current
criteria(Mn)
Spectrum in excess
beyond 6.2 MHz
Additional Spectrum
as per WPC criteria
1 AP 8.0 Sep-04 Mar-07 1.8 0.83 1.8 4.4
2 Gujarat 6.2 Aug-00 Mar-06 1.0 1.15 3.8
3 Maharashtra 9.8 Apr-05 Dec-06 2.6 1.25 3.6 5.2
4 Haryana 6.2 Dec-99 Jan-07 0.8 0.08 1.8
5 Kerala 8.0 Mar-05 Oct-06 1.3 0.99 1.8 4.4
6 MP 8.0 Nov-06 Nov-06 1.3 1.11 1.8 4.4
7 Rajasthan 6.2 Dec-05 Not Eligible Not Eligible
8 U.P.(E) 6.2 Feb-06 Not Eligible Not Eligible Not Eligible
9 U.P.(W) 8.0 Jan-06 Sep-06 1.3 0.69 1.8 4.4
10 HP 4.4 Mar-02 Not Eligible Not Eligible
11 Delhi 8.0 Dec-05 Nov-06 1.3 0.52 1.8 2.0
Average 7.2 MHZ
11 7 13 30
IdeaCriteria MHz
RefundTEC 13
TRAI 11
AdditionalAllocation*
Demand
WPC 30
WPC+25%
14
WPC+50%
12
*Across all Circles
Demand for additional Spectrum – Invalid : Fit case for refund of 13 MHz
21 of 57confidentia
l
BPL Case Study
Criteria MHz
RefundTEC 3.8
TRAI 3.8
AdditionalAllocation*
Demand
WPC 0
WPC+25% 0
WPC+50% 0
S No.
CircleCurrent
Spectrum held
Spectrum issued date
Date of Eligibility for next tranche
as per current criteria
Subsribers as on Eligibility date as per
current criteria for next
tranche (Mn)
Subscribers added without
additional spectrum as per current
criteria(Mn)
Spectrum in excess
beyond 6.2 MHz
Additional Spectrum
as per WPC criteria
1 Mumbai 10.0 Sep-04 Not Eligible Not Eligible 0.00 3.8 0.0
BPL
Fit case for Refund of 3.8 MHz
22 of 57confidentia
l
Reliance GSM Case Study
1.3 Mn subscribers added over a base of 4 Mn (32% of base) added without additional spectrum in last over 18 months
S No.
CircleCurrent
Spectrum held
Spectrum issued date
Date of Eligibility for next tranche
as per current criteria
Subsribers as on Eligibility date as per
current criteria for next
tranche (Mn)
Subscribers added without
additional spectrum as per current
criteria(Mn)
Spectrum in excess
beyond 6.2 MHz
Additional Spectrum
as per WPC criteria
1 MP 6.2 Jan-01 Oct-06 0.8 0.44 1.8
2 West Bengal 6.2 Feb-04 Dec-06 NE
3 Assam 6.2 Oct-03 Jun-07 0.5 0.15 1.8
4 Bihar 8.0 Oct-06 Oct-06 0.8 0.56 1.8 4.4
5 HP 6.2 Aug-05 NE NE
6 North East 6.2 Jan-06 NE NE
7 Orissa 6.2 Sep-01 Jul-07 0.5 0.12 1.8
8 Kolkata 6.2 Mar-02 NE NE
Average 6.4 MHZ
Total 1.3 2 10
RTL Criteria MHz
RefundTEC 1.8
TRAI 1.8
AdditionalAllocation*
Demand
WPC 9.8
WPC+25%
7
WPC+50%
3.8
Willing to return excess spectrum in Bihar in line with policy framework applicable to all
*Across all Circles
1.8
23 of 57confidentia
l
Reliance CDMA Case Study
RCOM - CDMA Does not hold beyond 5
MHz contracted spectrum in any of the circles
RCOM willing to consider its claim to forego 13.75 MHz of spectrum as per WPC criteria
S.N. Service AreaCurrent
Spectrum held (MHz)
Spectrum in excess beyond 5
MHz
Additional Spectrum
as per WPC
criteria
1 Andhra Pradesh 5.00 1.252 Gujarat 3.75 1.253 Karnataka 3.75 1.254 Maharashtra 5.00 1.255 Tamil Nadu 5.00 1.256 Haryana 3.75 0.00
7 Kerala 5.00 0.008 Madhya Pradesh 5.00 0.009 Punjab 3.75 0.00
10 Rajasthan 3.75 1.2511 U.P.(E) 5.00 1.2512 U.P.(W) 5.00 0.0013 West Bengal 3.75 0.0014 Bihar 5.00 2.5015 Himachal Pradesh 2.50 0.0016 Jammu & Kashmir 2.50 0.0017 Orissa 3.75 0.00
18 Chennai 5.00 0.0019 Delhi 5.00 1.2520 Kolkata 5.00 0.0021 Mumbai 5.00 1.25
Average 4.35 MHz
13.8
RCOM
No additional Spectrum granted
24 of 57confidentia
l
Tata CDMA Case Study
No additional Spectrum granted
S.N. Service AreaCurrent
Spectrum held (MHz)
Spectrum in excess beyond 5
MHz
Additional Spectrum
as per WPC
criteria
1 Andhra Pradesh 3.75 1.252 Gujarat 3.75 0.003 Karnataka 3.75 0.004 Maharashtra 3.75 1.255 Tamil Nadu 2.50 1.256 Haryana 3.75 0.00
7 Kerala 3.75 0.008 Madhya Pradesh 3.75 0.009 Punjab 3.75 0.00
10 Rajasthan 3.75 1.2511 U.P.(E) 3.75 0.0012 U.P.(W) 3.75 0.0013 West Bengal 2.50 1.2514 Bihar 3.75 1.2515 Himachal Pradesh 2.50 0.0017 Orissa 2.50 1.25
18 Chennai 3.75 0.0019 Delhi 5.00 2.5020 Kolkata 3.75 1.2521 Mumbai 5.00 0.00
Average 3.63 MHz
12.5
Tata
Tata - CDMA Does not hold beyond 5
MHz contracted spectrum in any of the circles
Eligible for 12.5 MHz of spectrum as per WPC criteria
25 of 57confidentia
l
Comparison: TRAI to WPC criteria
Circle 6.2 MHz 8 MHz 10 MHz
Metro( D/M) 1.6 2.5 2.0
Metro (C/K) 2.5 3.8 3.3
A 2.0 3.8 3.6
B 2.7 5.0 5.0
C 3.0 5.0 6.7
TRAI criteria is 1.6 times to 6.7 times of WPC March 06Average 4 times of WPC criteria
Multiple : TRAI to WPC
26 of 57confidentia
l
Comparison: TEC to TRAI criteria
CircleCategory
6.2 MHz 8 MHz 10MHz
Range Average Range Average Range Average
Metro (DL/MU)
1.2 to 1.4 1.3
1.3 to 1.5
1.41.7 to 2
1.9
Metro (CH/KOL)
1.0 to 1.2
1.1 1.1 to 1.3 1.2 1.5 to 1.8 1.7
A 1.1 to 1.7 1.5 1.0 to 1.4 1.3 1.0 to 1.5 1.3
B0.5 to1.6
1.2 0.4 to 1.4 1.00.4 to 1.5
1.0
C 0.3 to 2.0 1.2 0.3 to 2.0 1.2 0.3 to 2.8 1.2
TEC criteria lower than TRAI in 6 circles- HR, KL, PJ, HP, J&K, NETEC criteria is Average 1.2 times of TRAI criteria
Multiple : TEC to TRAI
27 of 57confidentia
l
Internationally, Regulators have taken back / reallocated spectrum
In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz of spectrum in 900 MHz band from Vodafone & O2. This spectrum was allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators Value of returned spectrum estimated at Rs. 50000 Cr (£ 6 Bn)
UK
Re-farming of 10 MHz inter-se operators is practiced and implemented In 2004, Regulator directed spectrum re-farming between AT&T & T-
Mobile in New York & California statesUSA
Excess Spectrum 20 to 35 MHz held by MovieStar was directed to be returned in 2005.
Argentina / Chile / Peru
Global practices for excess spectrum
28 of 57confidentia
l
Summary – Spectrum Allocation
At the minimum, subscriber allocation criteria recommended by TEC be
accepted or appropriately revised upwards based on further scientific
inputs.
Existing dominant GSM operators have been allocated spectrum without a
policy framework and are using excess spectrum which is also beyond
contracted amount of 6.2 MHz. Should be directed to refund the spectrum.
All new licensees or licensees having paid the prescribed fee for the
alternate technology should be allocated start up spectrum of 6.2 MHz.
29 of 57confidentia
l
Summary – Spectrum Allocation
The available spectrum will allow commencement of services by minimum
4 operators/ licensees. This will yield for the Government of India
Rs 6500 Cr as Entry Fee
Upto Rs 20000 Cr as direct and Indirect taxes on full rollout of network
by new operator
The increased competition will benefit the country and consumers.
Accelerated growth in telecom penetration
Lower tariffs
Better coverage including rural coverage.
Better quality of services
31 of 57confidentia
l
TEC subscriber criteria
Let us examine in light of available spectral efficiency technology innovations
Justified ?
Liberal ?
Stringent ?
32 of 57confidentia
l
Continuous increase in teledensity will require deployment of more BTS, leading to increase in network capacity, without additional
spectrum
Spectral Efficiency –Basic Principle
Cooper’s Principle on Wireless Networks: Capacity enhancement is coming through reduction in Cell size
Shrinking Cell Size provides 2700 times more capacity as compared to additional spectrum which provides only 15 times capacity enhancement
33 of 57confidentia
l
Shannon’s Principle:
There is a limit to capacity
Spectral Efficiency –Basic Principle
Capacity increase can be achieved by reducing interference by using spectral efficiency enhancement techniques
34 of 57confidentia
l
Parameters for determining Subscriber based spectrum allocation criteria
1. Morphology Dense urban / urban / Sub-urban / Rural
2. Subscriber / traffic density distribution in different morphology
3. Spectrum allocated
4. Number of sites to cater specified traffic
5. BTS capacity utilization
6. Inter site distance
7. Spectral efficiency innovations
Quantum of Spectrum allocated is just one of the parameters
35 of 57confidentia
l
TEC work flow chart - Subscriber Based Spectrum Criteria
TEC Criteria can be further improved when gains due to spectral efficiency innovations are included
Estimated BTS configuration with Capacity
Allocated Spectrum
6.2MHz 8MHz 10MHz 12.4MHz4.4MHz
S444S566S778
S332
Sync N/WDFCA
6 sectorAMR
SAIC Femto Cell
IBSNo. of subs
per site
Metro / Circle Morphology Distribution as per Satellite Image (Km²)
U SU RUDU
USURU
DUx %y %z %
w %
BTS Utilization per Morphology
Target Subs as per
Recommendations
Metro D & M
Metro K & C
Class A Circle
Class B Circle
Class C Circle
Sub Density Ratio
U SU RUDUTraffic Distribution
Required No. of sites & Estimated
Subs per Morphology
Inter-Site distance per morphology.
Subs Density
No
Yes
7 Key Technology Innovations
Excluded by TECwhile framing Subscriber based Criteria policy
Source: TEC “Presentation on Spectrum Efficiency. Dtd 20.09.07”
36 of 57confidentia
l
Spectral Efficiency Innovations
India can’t afford to ignore use of these innovations
1. Synchronized Network
2. DFCA (Dynamic Frequency & Channel Allocation)
3. 6 Sector BTS
4. AMR (Adaptive Multi Rate)
5. SAIC (Single Antenna Interference Cancellation)
6. Femto cell solution
7. In Building Solution
37 of 57confidentia
l
Technology Innovation - 1
Synchronized Network
Enhances Radio Network Capacity by 20%.Pre-requisite to use features like DFCA for further capacity gains.
BTS are synchronized using GPS or software.
TDMA Bit Offset of BTSs are aligned with each other.
Improvement of C/I by 3~5dB.
25 26
BTS 1
BTS 2
25 26
BTS 1
BTS 2
Asynchronous Network
Synchronous Network
Source: Huawei ,Ericsson and Nokia-Siemens
38 of 57confidentia
l
Conventional Frequency and Channel Allocation Dynamic Frequency and Channel Allocation
Technology Innovation - 2DFCA (Dynamic Frequency & Channel Allocation)
Source: Huawei and Nokia-Siemens
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1 0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1 0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
0
1
2
3
4
5
6
7
0
1
2
3
4
5
6
7
F1
F2 F2
F3 F3
Enhances Radio Network Capacity by 60 ~ 90%.
Parameter Conventional DFCA
Frequency Collision Possibilities
Yes No
Synchronization required No Yes
Co and Adjacent frequencies reuse in Adjacent Cell
Not possible Possible
Frequency Hopping Fixed patternDyanacmic based on mobile
location
ThruSoftwareupgrade
39 of 57confidentia
l
6
102
124
8
9
102
6
124
8
113
7
102
6
124
8
91
5
113
7
102
6
124
8
91
5
113
7
1
5
113
7
91
5
51
5
191
9
1
7
7
311
3
6
6
2
8
8
411
10
2
10
4
1212
51
5
191
9
1
7
7
311
3
6
6
2
8
8
411
10
2
10
4
1212
51
5
191
9
1
7
7
311
3
6
6
2
8
8
411
10
2
10
4
1212
51
5
191
9
1
7
7
311
3
6
6
2
8
8
411
10
2
10
4
1212
3 Sector BTS
6 Sector BTS
6 sector BTS provides twice the capacity of 3 sector BTS at same spectrum.
Improvement due to use of Asymmetric antenna which have more then 30dB front to back ratio for 1800 azimuth.
Source: Ten XC, Canada
Technology Innovation – 3 6 Sector BTS
TRx (No)
Traffic (Erlang)
TRx (No)
Traffic (Erlang)
4.4 3 45 3 89 100%
6.2 4 66 4 131 100%
8 7 129 6 245 90%
10 8 149 8 298 100%
3 SectorSpectrum
(MHz)
6 Sector Capacity incerase
(%)
Enhances Radio Network Capacity between 90% to 100%.
Reliance CDMA has over 200 six sector sites operational & in Reliance GSM network at Guwahati.
Vodafone has in Hyderabad.
40 of 57confidentia
l
Technology Innovation – 4Adaptive Modulation Rate (AMR)
All handsets manufactured since 2003 are AMR enabled.
AMR penetration level of 60% has resulted in 70% increase in capacity. Soon to increase to 100%
60-75% of current traffic is generated by AMR enabled handsets.
Over 110 Mn AMR enabled handsets are in use
AMR Penetration & Capacity Increase
Source: GSM,GPRS AND EDGE PERFORMANCE by Halonen,Romero,Melero of Nokia (John Wiley & Sons)
100% AMR penetration will result in nearly 150% Radio Network capacity increase at zero cost – expected by 2009
TCH FER Based Capacity Gain
0
20
40
60
80
100
120
140
160
0 25 50 75 100
AMR Penetration [%]
Cap
acity
Gai
n [%
]
41 of 57confidentia
l
Technology Innovation – 5Single Antenna Interference Cancellation (SAIC)
SAIC is a software feature in the handset for increasing downlink spectrum efficiency of GSM networks.
SAIC uses technique to cancel or suppress interference by means of signal processing without using multiple antenna.
Provides 50 ~ 60% additional capacity gain with 100% penetration of SAIC mobiles at no cost
Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
SAIC Penetration & Capacity Increase SAIC Handsets are available in
market from 2004
Majority of Nokia phones are SAIC compatible. Nokia market share is ~ 70%
Ultra Low end handset
42 of 57confidentia
l
Technology Innovation – 6Femto Cells
Backhaul: ADSL, Ethernet
GSM
FEMTO cells improves spectral efficiency by release of BTS capacity for outdoor use.
Small form factor and affordable price point will ensure mass deployment
Size ~ 200 x 140 x 40 mm, 0.2kg
Small Form Factor
Source: Ericsson & ABI-Research
Over 100 Million Femto cells are projected by 2011
43 of 57confidentia
l
Antenna
Splitter / Coupler
RF Feeder
Splitter / Coupler
Base Station
Technology Innovation – 7In Building Solutions
As per TRAI survey 70% calls in a cellular network are from In Building
Seamless indoor and outdoor coverage
In building coverage generates traffic and revenue
In Building solutions help in offloading the traffic from outdoor base stations
44 of 57confidentia
l
Technology Innovation Summary
Capacity increases by 7 times by using 4 of the Technology innovation.
Further improvements feasible on use of 6-sector, Femto & IBS.
1. Synchronized Network: Improves capacity by 20%
2. DFCA (Dynamic Frequency and Channel Allocation): Enhances Capacity by 60 ~ 90%.
3. 6 Sector*: Enhances capacity up to 100%
4. AMR: 100% AMR mobile penetration will improve the network capacity by 150%.
5. SAIC (Single Antenna Interference Cancellation): SAIC improves capacity by 50 ~ 60%.
6. Femto Cell*: Unlimited capacity for SOHO segment.
7. In Building Solutions*: Offloads traffic from outdoor BTS
Source: Nokia-Siemens and 3GPP TR 45.903 V7.0.1 (2007-08)
* 100 % SAIC and AMR considered with Synchronous network
Basic GSM
AMR*
DFCA
SAIC/SN*
* At Zerocost
45 of 57confidentia
l
Technology InnovationDeployment Status in India
Innovative techniques grossly under-deployed in Indian market.
Techniques Techniques Techniques Techniques
All OPERATORS
Synthesized Frequency Hopping (SFH)
Tighter Frequency Reuse Plan (TFR) Discontinuous Transmission (DTX) Dynamic Power Control IBS & Micro Cell Dynamic SDCCH
Under Trial Stage
ConventioConventional nal
ConventioConventional nal
Advanced Advanced Advanced Advanced
Innovative Innovative Innovative Innovative
Used by Used by Used by Used by
Synchronized Network Dynamic Frequency and Channel Allocation
(DFCA) 6 Sector BTS Single Antenna Interference Cancellation (SAIC) Interference Rejection Combining (IRC) Femto Cell
Intelligent Directed Retry (IDR) AMR-HR Antenna Hopping - One Operator
5 OPERATORS
Source: COAI submission to TRAI and from various GSM vendors.
46 of 57confidentia
l
0.0
5.0
10.0
15.0
20.0
4.4 6.2 8 10 12.4
Spectrum Allocation (in MHz)
Su
bs C
ap
acit
y (
in M
n)
TEC
30% AMR-HR
Technology Innovations
30% AMR-HRTechnology innovation
4.4 1,500 538 1.40 3.0
6.2 2,000 466 1.36 3.0
8 2,400 426 1.37 2.8
10 2,509 416 1.36 2.6
12.4 2,560 412 1.34 2.6
Spectrum Allocation
(MHz)
No. of Times Subscriber Capacity w.r.t TEC No. of
Sites
Site to Site distance (in Mtr.)
Morphology & traffic distribution as outlined by TEC.
Technology innovations like Femto & IBS not considered in mathematical modeling.
TEC Criteria can be enhanced by over 3 times using Technology innovation
Increase in TEC Subscriber criteria Due to technology Innovations
GSM Case study for Delhi
47 of 57confidentia
l
Technology Innovations - CDMA
New Techniques which will improve the spectral efficiency.
1. 6 Sector BTS
2. 4 GV vocoder
3. Pilot interference cancellation
4. Femto cell solution
5. In Building Solution
CDMA operators should accelerate deployment
48 of 57confidentia
l
Capacity of CDMA for 2.5MHz spectrum is 6 times than that projected by TRAI
Similar observation is for other allocations.
0.00
5.00
10.00
15.00
20.00
25.00
2.5 3.75 5 6.25
Spectrum Allocation (in MHz)
Su
bs C
ap
acit
y (
in M
n)
RCOM Estimate
4GV Vocoder
Innovation Techniques
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
Increase in TRAI Subscriber criteria (CDMA)Due to technology Innovations – Case study for Delhi
4GV Vocoder
Innovation Techniques
4GV Vocoder
Innovation Techniques
2.5 0.5 1.6 3.1 3.2 6.2
3.75 2.0 7.1 13.7 3.6 6.9
5 3.0 9.5 18.3 3.2 6.1
6.25 5.0 11.8 29.0 2.4 5.8
Spectrum Allocation
(MHz)
TRAI Criteria
Subscriber Nos.( in Mn)
No. of times w.r.tTRAI Criteria
49 of 57confidentia
l
Summary - TEC subscriber criteria
The TEC criteria is liberal
It can be further increased with gains by use of spectral efficiency technology innovations
TEC subscriber criteria to be revised upward by over 3 times leading to increased availability of spectrum
51 of 57confidentia
l
900 MHz Vs1800 MHz Spectrum –Anomaly & imbalances
For a new operator, initial National Coverage with 900 MHz spectrum can be achieved with 30,000 BTS sites as against 60,000 BTS sites of 1800 MHz
Initial Capex saving of Rs. 15,000 Cr
Opex saving of Rs.1500 Cr per Year
On ongoing basis a 900 Mhz network provides Capex advantage of Rs. 3,000 Cr & annual Opex savings of Rs. 300 Cr as compared to 1800 MHz network
Spectrum beyond 4.4 MHz in 900 MHz band does not give any additional advantage
Cap of 4.4 MHz to be introduced in 900 MHz band
Spectrum in 900 MHz Band should be re-farmed & equally allocated to existing as well as new Operators
Airtel Hutch Idea RTLDelhi 8 8 6.2Mumbai 8Chennai 6.2Kolkata 6.2 6.2AP 7.8 6.2Gujarat 7.8 6.2Karnataka 7.8Maharashtra 6.2 7.8TN 6.2Haryana 6.2 6.2Kerala 6.2 6.2MP 6.2 6.2Punjab 6.2Rajasthan 6.2 6.2UP (E) 6.2 6.2UP (W) 6.2 6.2 6.2WB 4.4 4.4 6.2Assam 6.2Bihar 6.2 6.2HP 6.2 4.4J&K 4.4NE 4.4 4.4Orissa 6.2 6.2
Spectrum in 900 MHz
Existing GSM Operators with up to 8 MHz spectrum in 900 MHz bad have an unfair advantage over new entrants
52 of 57confidentia
l
Re-farming spectrumInter-se 900 MHz– 1800 MHz
Both existing and new operators as per policy are to be given level playing field in non-discriminatory manner
This necessitates correction of current anomaly and imbalance of allocated spectrum in 900 &1800 MHz
Need to cap allocation of spectrum in 900 MHz to each operator – both existing and new entrants
Internationally re-farming has been implemented
Policy framework to be implemented to achieve non discriminatory level playing field for all operators
53 of 57confidentia
l
Internationally, Regulators have re-farmed spectrum to ensure non discriminatory level playing field & consumer benefits
In October 2007 Ofcom has initiated the re-farming of 15 MHz to 20 MHz of spectrum in 900 MHz band from Vodafone & O2. This spectrum was allocated in 1985
Returned Spectrum will be allocated to new / other eligible operators Value of returned spectrum estimated at Rs. 50000 Cr (£ 6 Bn)
UK
Re-farming inter-se operators is practiced and implemented . In 2004, Regulator directed spectrum re-farming between AT&T & T-
Mobile in New York & California statesUSA
Global practices of re-farming of spectrum
confidentia
l
870.03 871.26 872.26 873.99 875.22 876.45 877.95 879.18 880.41 881.64 883.67 MHz – 890 MHz
869 MHz
BSNL TATA RCOM GB
1.4 MHz
GBGB
879 MHz 890 MHz
6.33 MHz
Realignment of Spectrum – 4 Carrier Scenario
871.26 881.21 MHz – 890 MHz
869 MHz 879 MHz
870.03 872.26 873.99 875.22 876.72 877.95 879.18
BSNL TATA RCOM GB
1.4 MHz
GBGB
890 MHz
8.80 MHz
Realignment of Spectrum – 3 Carrier Scenario
Note: All the frequencies are in MHz
RCOM & TATA’s to also offer GSM, Realignment will Improve availability of spectrum
Realignment of spectrum880 – 890 MHz Band
55 of 57confidentia
l
Capital Efficiency Measures recommended
Mandate passive infrastructure sharing with price cap TRAI recommendations of Apr 2007 on sharing of active infrastructure
to be accepted & implemented DOT to make reference to TRAI for sharing of spectrum
Internationally active infrastructure sharing & spectrum sharing is done to deploy network in rural areas to reduce CAPEX,
DOT to make reference to TRAI Mandate Inter & Intra circle roaming in GSM and CDMA
These measures will be in further overall interest of consumers
56 of 57confidentia
l
Summary – Re-farming & Capital Efficiency measures
Inter-se re-farming of spectrum in 900 & 1800 MHz bands. Realignment within 800 MHz band To improve capital productivity, capital efficiency measure such as
Sharing of passive and active infrastructure and spectrum sharing
Win-Win-Win for all stake holders – Customers, Government & Operators
Improves availability of spectrumOptimum utilization of spectrum
Promotes qualityAccelerates with increased competition
Achieves capital productivity
57 of 57confidentia
l
Summary - Recommendations
Reliance fully supports TEC criteria for spectrum allocation TEC criteria should be the base & further tightened Start up spectrum of 6.2 MHz to be allocated to all new GSM entrants Refund of excess spectrum by the existing operators as determined by TEC
and beyond contracted 6.2 MHz Inter-se re-farming of spectrum in 900 & 1800 MHz bands Allocate maximum 4.4 MHz of spectrum in 900 MHz band to all existing
operators & new entrants. Realign spectrum within 800 MHz band to increase the availability of
spectrum for GSM for RCOM & TATA’s Annual spectrum charges should be increased at least to the level
recommended by TRAI to ensure efficient use of spectrum – scarce resource. Mandate passive infrastructure sharing Accept TRAI recommendation on active infrastructure sharing. DOT to make reference to TRAI for sharing of spectrum and Mandate Inter &
Intra circle roaming in GSM and CDMA
60 of 57confidentia
l
RCOM estimation on TEC Subscriber Criterion’s Calculation Process - Delhi Case study
Various deliverables as outlined in the workflow diagram of TEC recommendation
MorphologyArea
(in Km²)
Traffic Density
(w.r.t. DU)
Traffic Ratio (Area * Traffic
Density)
Sites Distribution
(in %)No. of Sites
Subs Capacity (in Mn)
Resulting cell range
(Km)
Intersite Distance (Km)
Subs density (Per
Km²)
Dense Urban 37.7 100% 12% 10% 235 0.43 0.29 0.430 11517
Urban 188.3 40% 24% 20% 470 0.77 0.45 0.680 4095
Sub Urban 753.2 12% 29% 40% 940 1.35 0.64 0.962 1792
Rural 903.8 12% 35% 30% 705 0.58 0.81 1.216 640
Total 1883 100% 100% 2,350 3.13 0.55 0.823 1664
61 of 57confidentia
l
Spectral Efficiency in Cellular network
Spectral EfficiencyBenefits
2. Maintain desirable QoS for the growing Network.
4. Avoid site acquisition related delays for capacity built-up.
3. Optimized Capex & Opex due to addition of new sites.
1. Address the capacity demand with available spectrum
Spectrum efficiency techniques should be implemented voluntarily by the operators rather then being enforced by Regulatory Authority .
62 of 57confidentia
l
KPI Asynchronous Synchronous DFCA
Effective Frequency Load 12% 16% 21%
Total max Traffic/sector 68.5 90.9 113
Capacity Gain wrt AsynchronousNetwork
-NA- 33% 65%
Source: Nokia-Siemens
Technology Innovation – 2 (Cont.)DFCA (Dynamic Frequency and Channel Allocation)
Commercial Deployment: Key operators who have implemented DFCA commercial network.
T-Mobile (USA), AT&T (USA) Conecell (Ecuador) China Mobile Telefonica (Columbia)
Typical improvement statistics shown in table. (Huston)
In live commercial network capacity enhancement of 65% observed.
63 of 57confidentia
l
Capacity of CDMA for 2.5MHz spectrum is 6 times than that projected by TRAI
Similar observation is for other allocations.
0.00
5.00
10.00
15.00
20.00
25.00
2.5 3.75 5 6.25
Spectrum Allocation (in MHz)
Su
bs C
ap
acit
y (
in M
n)
RCOM Estimate
4GV Vocoder
Innovation Techniques
TRAI Criteria can be enhanced by more than 5 ~6 times using Technology innovation
Increase in TRAI Subscriber criteria (CDMA)Due to technology Innovations – Case study for Delhi
4GV Vocoder
Innovation Techniques
4GV Vocoder
Innovation Techniques
2.5 0.5 1.6 3.1 3.2 6.2
3.75 2.0 7.1 13.7 3.6 6.9
5 3.0 9.5 18.3 3.2 6.1
6.25 5.0 11.8 29.0 2.4 5.8
Spectrum Allocation
(MHz)
TRAI Criteria
Subscriber Nos.( in Mn)
No. of times w.r.tTRAI Criteria
64 of 57confidentia
l
Peak Configuration: S2/2/2
25 Erlang /site
Peak configuration:S3/3/3 99 Erlang/site
Uplink/downlink DTX
Uplink frequency scan
Uplink interference band measurement
Dynamic power control
Frequency hopping
Dynamic MAIO
Tight BCCH Reuse
AMR FR/HR
Antenna hopping
SAIC
Synchronized Network
DFCA
AMR 100%
Interference Counteract Combining
Repeated FACCH /SACCH
Advanced Power control
StandardStandard20012001
StandardStandard20012001
AdvancedAdvanced20072007
AdvancedAdvanced20072007
Innovative Innovative Q2 2008Q2 2008
Innovative Innovative Q2 2008Q2 2008
Peak configuration:S4/4/4
143 Erlang/site
Technology Innovation Application on 4.4MHz
6times capacity improvement in 4.4MHz band.
65 of 57confidentia
l
International Case Study- Re-farming spectrum to reduce from 20MHz to 10MHz
Re-farming of the Spectrum can be implemented seamlessly
Source: T-Mobile, USA
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2/2/2 4/4/4 6/6/6 8/8/8 10/10/10 12/12/12
BTS Configuration
No
of
Sit
es
No of Sites in 20MHz No of Sites in 10MHz
BTS configuration not applicable for
10MHz.
T-Mobile (NY) was serving
3 million subs using 20 MHz .
10 MHz be surrendered
owing to contractual obligations
T-Mobile had no option but
to opt for innovative techniques
to support the growing subscriber
base.Solutions Implemented :
100% AMR-HR introductionIntroduction of Synchronized NetworkSAIC
66 of 57confidentia
l
900 band spectrum advantages over 1800 band Spectrum
Higher Range : (Better Coverage) ‘Lower the radio frequency, higher the transmission range’ Achievable by GSM 900 cell is double of GSM 900 cell1
Less no. of Sites: (Substantial reduction in Capex) For equivalent coverage, site requirement with GSM 1800 is 4 times of GSM
9002.
Better Indoor coverage: (Improve QoS) much better in 900 Mhz than 1800 Mhz , to provide equivalent levels of deep,
dense urban coverage, more cells are required at 1800 MHz than at 900 MHz1
Better Operation at high speed1: (Improve QoS) The specifications for GSM 900 and GSM 1800 include an upper ‘speed limit’
for the handset, above which the radio connection is not guaranteed. For GSM 900 this is 250km/h, and for GSM 1800, 125km/h.
1. OFTEL
2. Denmark Regulator
67 of 57confidentia
l
Spectrum charges
It is almost impossible for regulation to keep pace with technology advancement
In addition to appropriate spectrum allocation criteria, there is need for mechanism to ensure efficient spectrum utilization on ongoing basis.
Current recurring spectrum charges as well spectrum charges recommended by TRAI have lower per MHz charges beyond 8 MHz
Spectrum charges for 900 MHz band spectrum should be 20% higher than charges for 1800 band spectrum
Spectrum in MHz 4.4 6.2 8 10 12.4 15Existing Charges 2% 3% 4% 4% 5% 6%Charge/MHz 0.45% 0.48% 0.50% 0.40% 0.40% 0.40%
TRAI Recommended 2% 3% 4% 5% 6% 7%Charge/MHz 0.45% 0.48% 0.50% 0.50% 0.48% 0.47%
Proposed 2.0% 3.0% 8.0% 10.0% 12.4% 15.0%Charge/MHz 0.45% 0.48% 1.00% 1.00% 1.00% 1.00%