the power of regulation robindhra mangtani, director, gsma

© GSM Association 2009

THE POWER OF REGULATIONRobindhra Mangtani, Director, GSMA


The GSM Association

The global trade group for the mobile industry

– 750 mobile operators– 200 associate

members– Across 218 countries

Remit is to innovate, incubate and deliver new opportunities for our members that drive the growth of the mobile industry

REPRESENTING MORE THAN 3.5 BILLION MOBILE CONNECTIONS


ICT readiness drives economic development

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Increasing ICT readiness

(Digital opportunity index)**

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*Composite index of indicators relating to institutions, infrastructure, macro-economy, health, education, market efficiency, technological readiness, business sophistication, and innovation**Composite index of indicators relating to coverage/access, tariffs, equipment penetration and broadband adoptionSource: World Economic Forum; McKinsey

Developed economies

Emerging and developing economies


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Broadband stimulates economic activity

Source:McKinsey

Examples

BENEFITS OF BROADBAND

South KoreaImmediate value creation

Multiplier effects

ArgentinaForeign direct investments

Bangladesh,Malawi,Rwanda,

Human capital formation

ZambiaProductivity increases

Explanation

GDP contribution from direct network investment

Impact of broadband investment on suppliers of equipment, content, etc.

Foreign direct investments as a result of good ICT infrastructure

Increase in knowledge and skills aswell as improved health services

More efficient business processes because of connectivity

Japan

Direct(ICT industry)

Indirect (other industries)


For broadband - mobile is the answer

Fixed Broadband Mobile

1.1 Billion LinesOnly 1/6 world’s population

4 Billion Connections

MOBILE NETWORKS WILL CONNECT THE WORLD


Making a real impact to India

3G investment* in India will deliver over

$70 billion economic benefit

India is estimated to have lost $16 billion

(PPP) in the last 2 years, from spectrum

delays

10% increase in broadband penetration

delivers 0.1-1.4% GDP increase

* Investment of $20 billion over 5 yearsSource: McKinsey, 2009; LECG, 2009.

$$

MOBILE BROADBAND HAS A SIGNIFICANT IMPACT TO ECONOMY

GDP


Regulatory leversthat influence economics for rural broadband deployment


What needs to happen next?

MAKE MOBILE BROADBAND A REALITY

The Indian Government should allocate the

3G/2.1GHz spectrum to drive the deployment of

Mobile Broadband across India.

The planning phase for the allocation of 2.6GHz spectrum must also start now if HSPA is to evolve for the benefit of

the Indian population.

India will need to make further spectrum available through the Digital Dividend to support the delivery of more

widespread coverage in rural areas.

Allocate a portfolio of spectrum, to maximise Mobile

Broadband effectiveness


Why is 698-862 MHz so important for mobile?

It is approximately 70% cheaper to provide mobile broadband coverage at frequencies (approx. 800MHz) than over 2100MHz

This means networks can be rolled out quickly, cost effectively, bringing cheaper services to consumers

Source: SCF Associates Study

Number of base stations

2 5 7 10 2015

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UHF Band


Planning Mobile Broadband Spectrum

100MHZ OF DIGITAL DIVIDEND WILL DRIVE MOBILE INVESTMENT

Mobile’s share of Digital Dividend is essential We suggest that 25% of the 400 MHz analogue TV spectrum should be

allocated to new Mobile Broadband services The soaring demand for Mobile Broadband requires additional

spectrum LTE needs harmonised spectrum – the lower the band, the better

700MHz and 2.6 GHz bands No spectrum; no incentive to invest in LTE

Digital TV can never be the engine of economic growth that mobile is proven to be

450MHz 470MHz 698MHz 790MHz 3400MHz2100MHz862MHz 2500MHz 3600MHz900MHz 1800MHz

COVERAGELow Cost of Deployment

CAPACITYHigh Cost of Deployment

MOBILE MOBILEMOBILEMOBILE


The GSM Family - Delivering on Promises

Source: Wireless Intelligence, June, 2009

HSPA+ peak theoretical data rate reaches up to 42 Mbps when using single carrier with QAM 64 and 2x2MIMO

HSPA+42 Mbps

HSPA14.4 Mbps

GSM9.6 kbps

GPRS in 2000

GSM First call made in 1991

HSPA in 2005

3G in 2001

EDGE in 2003

HSPA+ in 2008 LTE 172 Mbps

EDGE473 kbpsWCDMA

384 kbps

GPRS114 kbps

3G3G

HSPA: 120 million cnt

WCDMA: 238 million cnt

2G2G GSM: 3.8 billion cnt

NEARLY TWO DECADES OF PROVEN TECHNOLOGY AND EXPERIENCE

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1400 Devices from 143 suppliers

Connections today

plus 4 million per month Thriving ecosystem delivering competition

and choice

Global scale, driving down costs

Affordable Mobile Broadband245 commercial Networks

in 108 countries

Global network coverage,

providing global roaming

HSPA IS A MAINSTREAM, PROVEN TECHNOLOGY


Green Power for Mobile Driving operators’ use of renewable energy sources to power

off-grid base stations in developing markets

Trials with MTN Nigeria, IDEA Cellular & Ericsson

Biofuels replace 18,000 litres of diesel per base station per year

Carbon neutral solution

Wind & Solar Powered Base Stations Biofuel Powered Base Stations

Trial with MTC Namibia & Motorola

Solution provided ~200kWh of power/week

Supports typical 1800W base station

MTC saved ~5,230kgs of CO² annually


Mobile Money for the Unbanked (MMU)

CONNECTING THE DEVELOPING WORLD TO FINANCIAL SERVICES

Programme will harness the ubiquity of mobile to provide financial services to people who were previously unbanked

1 billion people in emerging markets do not have a bank account but do have a mobile phone

Focus is on 20 projects in Africa, Asia and Latin America

Target to reach 20 million previously unbanked people by 2012

Supported by the Bill and Melinda Gates Foundation


Agricultural News

& Information

Education

Healthcare EntertainmentGovernance

Benefits to the people of India

Restricted - Confidential Information© GSM Association 2009All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy

THANK YOU!

the power of regulation robindhra mangtani, director, gsma

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