TDD-LTE Rollout Strategies for Telecom Service Provider in India Swapnil Pande Supervisor : Prof. Heikki Hämmäinen Instructor : Prof. Kishor Ghormade Communications Ecosystem International Master’s Program Aalto University, School of Electrical Engineering June 30 2014 Master’s Thesis Presentation

Agenda Research Problem and Motivation Background Research Method Findings Conclusion

Main Research Problem and Research Questions What are the successful strategies for the TDD-LTE rollout in Indian telecom market? Research Questions What are general strategies to concentrate for successful rollout TDD-LTE services? How to achieve competitive pricing strategies suitable for TDD-LTE rollout? What level of maturity should Device Ecosystem should reach to leverage the development of TDD-LTE services?

Motivation for Research Problem The business issue Latent market stage Poor 3G penetration Already Investment in 3G Importance and impact Prevent Loss for Telecomm Service Providers Objective of the study Examining the local market barriers Suggesting remedies. 4. The output of the study Set of guidelines for successful rollout strategies 5. This helps because Learning prevents mistake repetition

Background and Research Method Auction Process and LTE developments Research Method

I. Timeline for major Events related to TDD-LTE (1/3) BWA Auction Process completed June 11, 2010 June 12, 2010 Reliance Industries acquires 95% stake in Infotel Broadband Services and Relianace Jio established Bharti Airtel launches TD-LTE in Kolkata circle April 2012 May 2012 Bharti Airtel acuires 49% stake in Qualcomm Incorporate Bharti Airtel and Reliance Jio signs i2i cable sharing deal. April 2013

I. Successful players in Auction process (2/3)   METROS CAT : A CAT : B CAT : C D L I M U M K O L M H G U J A P K A R T N K E R P U N H A R U P E U P W R A J M P W B H I M B I H O R A N E J & K Infotel Broadband Pvt. Ltd Bharti Airtel Aircel Limited Tikona Digital Qualcomm Incorporated Augere (Mauritius) Ltd. Circle Category Rise from Reserve Price to Final Auction Price (in %) Metro 772 to 1333.09 Category A 472.27 to 1193.40 Category B 70.97 to 332.27 Category C 37.73 to 561.86 Total 634.15   METROS CAT : A CAT : B CAT : C D L I M U M K O L M H G U J A P K A R T N K E R P U N H A R U P E U P W R A J M P W B H I M B I H O R A N E J & K Reliance Jio Bharti Airtel Aircel Limited Tikona Digital Augere (Mauritius) Ltd.

I. Timeline for major Events related to TDD-LTE (3/3) 1. Reliance Communication and Reliance Jio signs Network Infrastructure sharing deal 2. Bharti Airtel acquires 100% stake in Qualcomm Incorporated June – July, 2013 March 4, 2014 Bharti Airtel and Reliance Jio signs Tower sharing deal Relianace Jio signs tower sharing pact with Viom Networks and ATC India March – April 2014 May 29, 2014 Reliance Industries takes over Network 18. Bharti Airtel offers dongle and mobile device plans in 8 cities Present Status

II. Research Method Research Questions Research Problem Paper Survey Literature Review General Strategy Government Organization and Regulatory Body reports Pricing Strategy Challenges and Set of Recommendations Company Documents Data Analysis and Interpretation Device Ecosystem Development Strategy Conferences, Seminars and Webinars News paper articles , Magazine articles and blogs January to March November to December Open end questions Close end questions 34 Respondents 15 Respondents

Findings and Conclusion I. General Strategy II. Pricing Strategy III. Device Ecosystem Development Strategy

I. General Strategy : Challenges faced by SP (1/2)

I. General Strategy : Time of launch and Customer segment to Target (2/2)

II. Pricing Strategy : Bharti Airtel Data Plan Pricing (1/4)

II. Pricing Strategy : Airtel Data Plan Pricing Analysis (2/4) Time period Download Limit Price (INR) Rs/MB April 2012 to March 2013 6GB 999 0.163 9GB 1399 0.152 18GB 1999 0.108 30GB 2999 0.098 April 2013 Onwards 1 GB 250 0.244 2GB 450 0.220 3GB 650 0.212 4GB 750 0.183 10GB 12GB 1299 0.106 15GB 1499 25GB 2049 0.080 45GB 0.065 80GB 4799 0.059 VAS Provided HD Movies HD Games TV Shows Live videos of places of worship

II. Pricing Strategy : Data Plans to implement (3/4)

II. Pricing Strategy : Data Plans to implement (4/4)

III. Device Ecosystem Development Strategy : Access source (1/3)

III. Device Ecosystem Development Strategy : Effect on mobile ecosystem (2/3)

III. Device Ecosystem Development Strategy : Device Pricing (3/3)

Conclusion Incremental and well-targeted 2G prepaid to LTE postpaid migration strategy Identification of the Challenges and Market segment to target First launch impression vital The competitive advantage shifts from “Pricing only” towards “Pricing and Quality of Services” Premium pricing is not the solution Innovative Pricing like combining 3G and LTE data Gradual shift from Multi-SIM towards Single SIM market providing SP with greater control over subscribers Close collaboration with Device manufactures Affordable device pricing

Thank you !