corDECT WiLL designed to connect developing countries ashok jhunjhunwala TeNeT Group, IIT Madras, India ashok@tenet.res.in

Challenges in Developing World Developing World has very small teledensity waiting to be connected Internet is Power Key Challenge can they afford it?

Take India as an example Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 62 150 60% (37 million) of Urban Indian households can spend less than $ 6 per month on Telecom

Rural India can spend even less Monthly telecom expenditure (assuming 4% income can be spent on telecom) 3.2 6 8.8 12 17 25 42 100 75% (119 million) households can spend barely $ 3.2 per month on telecom

Low CAPEX required Developing countries have very low Average Revenue per User (ARPU) less than $ 6 per month or $ 72 per year An Operator can profitably serve these subscribers only by reducing capital expenditure (CAPEX) per line need CAPEX of under $ 200 per line as opposed to $ 600 + CAPEX prevalent

corDECT designed towards this TeNeT group of IIT Madras and Midas have a vision to enable India get 200 million telephone and Internet connections need to bring down CAPEX per line to $200 Access contributes to 65-70% of per line CAPEX took up design, development and commercialisation of technologies for this corDECT Wireless in Local Loop specially designed for urban as well as rural areas OPTIMA Fibre Access Network to connect dense urban areas

corDECT Wireless in Local Loop E1 (V5.2) voice To Exchange DIU+ RAS  WS To Intenet IP two lines 35 kbps Internet access & telephone connection supporting fax, PCO and speakerphone Always On Internet Connection in near future premier Internet Service at 70 kbps

WS-IP: Wallset with external antenna External Antenna for Enhanced Range of 10 Km (LoS) and 25 Km with a repeater 35 kbps (premium 70 kbps) Internet traffic plus simultaneous voice

corDECT Wireless in Local Loop  To PSTN Total per line cost of $150 - $200 1 million lines under deployment To Internet

corDECT - System Architecture : 10 Km E1 (R2 / V5.2) ( Voice IP CBS WS-IP corDECT General Architecture DIU BSD E1

corDECT - System Architecture : 10 Km E1 (R2 / V5.2) ( Voice IP CBS WS-IP 25 Km RBS Power Backup corDECT General Architecture DIU

Multi-Wallset : to serve lower income group cuts the per-line cost to half Shared Ethernet port for Internet access Always On connection in near future

Relay Base Station (RBS) 25 km range with RBS in sparse rural areas uses DECT frequencies no frequency planning needed

Network Management System SNMP based system Graphic User Interface enabled Fully secure network with access delegation at the DIU Complete management of all OMC functions even from remote locations Remote monitoring and processing of alarms, faults, configuration and account management.

specially designed for small towns fully loaded DIU Power requirements: 12 Amp BSD Power requirements: 1 Amp scalable system : 300 lines and above viable DIU + CBS + backhaul cost : 20 % of per line cost less than 100 sq ft space needed for a DIU each wallset provides two lines a telephone and a Internet access line

corDECT will continue to dominate this market in future PRESENT STATUS corDECT is lowest cost solution for the developing markets Capex : $150-200/line providing a voice connection and a 35/70Kbps data connection Low upfront investment : less than $ 20K to start service in a town FUTURE corDECT R&D driving Cost /line down to $100 Data rate of up to 100 kbps for each channel up to @ 2MB shared download Spectrum efficiency increase by a factor of 3 corDECT will continue to outpace 2.5 - 3G technologies in fixed-wireless space

Driving Commercial Internet Connections in Rural India Can Rural India Afford Internet Connections? For commercial viable connections, one needs Technology Business Model Organization Driving Applications

How does one serve people with incomes of less than a dollar a day? Lower Connectivity cost Aggregate demand

Lower Connectivity cost CAPEX cost of telephone line was $ 600 plus in India barely two years ago required ARPU of $20 plus per month to break even affordable to barely two percent of Indian households Innovative Technologies and better buying has reduced CAPEX to around $325 per line moving towards $200 per line enabling 50% of Indian homes to afford telecom rural connectivity cost reduced from $1500 to about $300 per connection

Aggregate Demand Today in 1987 less than 5% of urban households had telephones 7 years wait for a telephone coin-box street telephones did not work long distance charges too high even for top income families Entrepreneur-driven telephone booths (STD PCOs) introduced night time long distance charges reduced by a factor of 4 Today 950,000 STD PCOs covering every street of smallest town generate 25 % of total telecom income 300 million people use these PCOs

How does one connect Rural India India has 600,000+ villages 650 million people Need Technology Sustainable Business Model Organisation which thinks and acts Rural Driving Applications towards Rural Prosperity

Technology BSNL’s Contribution: on the average one fibre connected rural exchange for every 150 sq km a wireless system with 10 - 15 km range at existing fibre connected exchange would cover 80 - 85% of villages in India CorDECT Wireless in Local Loop Developed by IITM and Midas Communications, Chennai provides a telephone line and Internet connection in 30 Km radius

corDECT Wireless in Local Loop IITM - Midas corDECT Wireless in Local Loop To PSTN To Internet  A telephone line and a 35/70 kbps Internet line $ 150-200 per line price 1 million lines being deployed in 03-04

Organisations with Innovative Business Models N-Logue : A Rural Service Provider aggregate demand into a kiosk using corDECT Wireless in Local Loop ISP in a box : Minnow Reliable power back-up $ 1000 (including taxes) per Kiosk providing telephone, Internet, multimedia PC with web-camera, printer and 4 hour power back-up for PC plus Indian language software set up by a village entrepreneur on the line of STD PCOs needs only $ 60 per month to break even

Application & Content Providers n-Logue Deployment Strategy Telephone Backbone Internet Backbone Application & Content Providers LSP Banks ACCESS CENTRE Scope: 1 –3 Talukas 25 Km radius, 2000 sq km 4 – 500 K population 2 - 5 towns 300 -400 villages 500 + Connections (at least 1 in each village) Connections: Individuals Government schools and PHCs Kiosks Rs. 50,000 / Kiosk KIOSK OPERATOR Banks Micro Finance Organisations

What is the monthly income? STD PCO $ 20+ Children learn typing all kinds of on-line and off-line education $ 10+ Kiosk is a photography shop $ 6 also a video parlour on weekend evenings $ 6 email and browsing voice mail and video mail $ 10+ e-governance access connect to taluka Government office for services $ 4 and much more

Word-processor in Indian Languages

Multi-lingual Office Package IITM - Chennai Kavigal Multi-lingual Office Package

Mundi . . . . A 60 year old from a village near Melur Palaniamma had lost vision in both eyes since 2 years tie-up with Aravind hospital -- Doctors confirmed that vision can be restored in at least one eye IITM trying to develop Remote Diagnostic tools Blood Pressure, Sugar & Iron, ECG Monitor, stethoscope at total cost of $ 200

Crop comparison Top: Ladies Finger Diseased with yellow mosaic Below : Post treatment Saving of $ 3,000 for the farmers Cost of information $ 0.40

E- Dr Vet ? Earlier $ 4 This case $ 0.40 In Attapati village , Priya’s chicken was limping Photo sent to Veterinary college Identified as Curled toe paralysis Cost for process Earlier $ 4 This case $ 0.40

The Power of multi-party video communication IITM - OOPS The Power of multi-party video communication Low bit-rate Video Conferencing (audio + video + text at 20 kbps and more)

Can Kiosks become Micro-banks? TeNeT and n-Logue working with ICICI Remote Bill Payment Rural ATM Micro-finance Remittance Credit and Product Marketing is one of the biggest requirement of Rural India

Do we have a model for sparser areas? Fibre not available in 15% of areas in India Only about 50 to 100 villages in 20-30 Km radius less population per village less available money Technology Innovation Business Innovation finance and buying/selling may make even larger sense

For inaccessible Rural Areas ISRO-IITM For inaccessible Rural Areas <-- 64 Kbps  2 Mbps --> 128 Kbps -->  15 -20 Kms with 100 connections 3.8 m antenna 2.4 m antenna PSTN Internet 8-10 voice channels + 64/128 kbps Internet satellite backhaul Each hub supports 16 to 20 remote sites with 2 Mbps downlaod $200 corDECT + $200 backhaul cost per connection

To Sum Up Developing countries require unique solutions low CAPEX, OPEX rugged, low power corDECT designed to meet this need requires adaptation in different situation TeNeT / Midas team has done well in coming up with technical / business innovations is today the best fixed wireless solution will remain so as new R&D comes with 2.5G / 3 G corDECT offering