Scenario Description and Business Opportunity Analysis The Indian Broadband Scenario R. Balajee Midas Communication Technologies

Indian Telecom Scenario

Broadband Blues 2.47 million Broadband subscribers – As of July against internet subscriber base of 9 million – Compared to 56million in china where 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

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 and availability of content & hardware interface in vernacular languages.

Access Penetration The driver for internet access in the order are: Communication needs Educational needs Entertainment needs Others

Pricing of Internet Access The low Indian ARPU has propelled the broadband growth this far. To expand into 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 Station Aggregator Local Exchange V 5.2, CCS7,R2MF Voice/ VOIP Soft-Switch SIP/MGCP IP Network E1 on STM Exchange Infrastructure platform capable of evacuating up to 160Mbps Seamless back-haul connectivity on E1 with TDM voice or IP with VOIP Cost Effective for High and Low subscriber densities as well as high and low coverage areas Internet Antenna CPE CPE capable of evacuating up to 1Mbps E1 links Fiber or DMW Radio for Long distances Base Station Distributor Radio Tower Base Stations DSL connectivity on copper for short distances Base Station Site platform capable of evacuating up to 32Mbps On Air distance from 4Km to 10KmDECT Spectrum: Mhz No 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 Station Aggregator 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 Backend System 10 TV Channels 5 off-air 5 server Cisco Backend System Omni Switch Cisco Switch TV Broadcasting hub TH Floor) Cisco 4507 INTERNET IP Telephony Video Conferencing M2404 Access Switch Access Switch Access Switch 5 off-air domestic Channels via fibre OANOC Headend (BMC) Main Node (JRC)Ethernet To The Home at Access Node The Lowest TCO Solution Triple-play ready Customer Premises NMS Roadside uPOP uPOP M V, 10 Amps AC Source uPOP uPOP Access Switch Resident Residentbuilding building building building building building Splitter CPE at every home IP or Analog Phone PC IP Set Top Box Rugged, outdoor Managed Ethernet solution Remotely powered from a central location

ETTH Product Family Access and Aggregation Switch: M 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 Switch 16 FE ports with multiple uplink ports supported Powered remotely via PoE Range of Mbps Manageable Switch Ideal for higher subscriber densities and outdoor Access switch: C5 Switch 5 FE ports, cascading support on one of the ports Powered remotely via PoE Ideal for indoor and low subscriber debsities Extends service up to 300m from aggregation switch (M2404) using up to 2 C5 switches C5 Switch April 28, Increase service reach of Metro Ethernet without compromising on Service Levels and QoS Splitter CPE Splitter CPE similar to C5 Switch with Analog Telephone Interface for VOIP services

ETTH - Some Deployment Scenarios FE C16 Switch WiFi Access Point FE C5Switch Gigabit Ethernet FE C16 Switch FE C16 Switch Internet

ETTH to augment Existing CATV Network… April 28, CATV Head-End Optic Node Amplifier Multi Service Access Platform M2404 Cs16 Internet

ETTH to Enhance Wi-Max Network Access Switch 100+V, 10 Amps AC Source Wireless Device powered from remote through C-Switch PoE adaptor Access Switch Access Switch Access Switch Access Switch Centralized Power Distance between PC and subscriber -10Mbps -300m Distance between switches 100Mbps-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 28,

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

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 April 28,

Partners & Alliances OEMs / Licensees Solutions Partners Manufacturing Semiconductor Nilgiri Networks April 28,

Global… April 28, Midas Installations Wireless, DSL, Metro Ethernet 24+ countries, 3.5 mil Ports

WirelessWirelineEthernet Access Broadband corDECT 256+ Kbps Wireless DSL Toll Quality Voice Light GSM Rural GSM Broadband corDECT NG 1 Mbps WiMax SNAP! SACS Universal Loop Carrier Multi Service Access DIAS-xx series Layer 2 IP-DSLAMs R17xx series Enterprise & SMB routers M2404 series L2+ & L3 Ethernet Switches C16 Series 16 port long range outdoor Manageable switches C5 Layer 2, 5 port switch with POE Solutions for Emerging Markets April 28,