WiFi Aggregator Business Case for India

1. WiFi Aggregator Business Case for India Unleashing a > Rs 100,000 cr/year opportunity…. at a Village Level, at a Street Level, at a Nation Level ….

2. Myth 1: Mobile technologies like 4G/5G …. No Need for WiFi in India

3. Overview Despite rapid growth in recent years, broadband access is still elusive to >50% of India’s population Country Ranking by Broadband Availability Growth in Wireless Subscribers (In millions) Source: As on Jun’19 Source: As on Mar’19

4. But, our networks are already loaded severely affecting the QoS Monthly data consumption Per connection Country Ranking by Data Speed 8,320 Mb 86 Mb 2014 2018 Source: As on Jun’19 Source: Mckinsey Global Institute – Digital India 4G Mark’s rankings on QoE parameters like Video puts India in a similar quartile

5. Reality: Moving to the top quartile in Availability & QoE Cannot happen without ubiquitous WiFi (>50% traffic on WiFi networks)

6. Myth 2: Lowest mobile tariffs globally Where is the Business Case for WiFi in India?

7. Multiple monetization models exist for Wi-Fi Non - Exhaustive Transport Corridors Public venues Office buildings Local Entrepreneurs • Examples: • Restaurants • Local shops • Village entrepreneurs • Private residential societies • Business model: Additional revenue, better customer retention • Examples: • Government buildings (e.g. courts, offices) • Public service kendras • Panchayat offices • Business model: Fee based, IBS bundling, Building code compliance • Examples: • Airports • Railway stations • Bus stands • Metro corridors • Inside bus / trains • Business model: MNO offload, advertising, IBS bundling • Examples: • Tourist locations • Sports stadiums • Shopping malls • Parks • Business model: MNO offload, advertising, IBS bundling Independent Wi-Fi aggregator can build innovative & customized business models

8. Business Case across the Ecosystem: >100,000 crores/year in revenues

9. … while telcos can gain nearly RS 1,500 cr Some Success Stories:

10. Even saturated markets have seen success with WiFi Aggregators .. Telcos Devices MVNOs Private Enterprise Public Services Analytics Cost Reduction Value Addition Over 16M MDU (Multi Dwelling Units) Advertising: 39% of revenues Value Addition • Enterprise Value: INR 7,000 cr • 3X Revenue Multiple • 11.7X EBITDA Multiple • 1B subscriber reach, 1M locations Source: Annual Report, website Supply starved markets like India have potential for 100+ Boingos

11. Reality: Robust Business Case for unleashing a >100,000 crore/yr opportunity exists in India With Benefits for all members of the eco-system

12. Myth 3: Existing MNOs/ISPs can provide WiFi Where is the need for Aggregators in India?

13. In the short time that a robust WANI architecture was trialled ….

14. …. Indian entrepreneurship came to the fore • Village in Andhra (Kuchipudi) • Connected from GP in <24 hrs • Village headman led initiative • Local tea-seller in Noida • Increased sales by 300% on providing free WiFi for a week WANI – Telecom’s UPI moment? • Private Building Owner • Offered WiFi to society residents

15. With such open architectures, India offers an opportunity for 100+ ‘Boingos’ • 5000 wired gram panchayats • 60 smart cities planned • 100,000 villages • 600M sqft commercial real estate • Huge data underserved population • Advertisers cannot reach beyond 100M+ digital consumers Sources: Publicly available government reports in the press

16. Reality: Not a few big players but thousands of entrepreneurs PDOs will need PCO-like revolution

17. Key Hurdles: Regulation for Auto-connecting WiFi UK the only country (in top quartile of WiFi deployments) where public WiFi traffic lagged Mobile data Key Reason: Manual action for periodic log-in rather than auto-connect in most cases Source: Ofcom, Tefficient TRAI’s proposed WANI architecture addresses these concerns and a multi-network MVNO through aggregator model, as well

18. Key Hurdles: Fiber availability continues to be a challenge Today, India does not even qualify for global Fiber rankings as penetration of fiber in homes & businesses is <1% Steps such as Bharatnet are designed towards bridging this gap but progress has been slow Digital India policy stresses on the need to expand fiber penetration With new monetization models based on WiFi Aggregators, availability of private capital gets accelerated for fiber deployment # of Homes & Business with Fiber by Country Fiber Km per capita Source: FTTH council Europe, Phimetrics analysis

19. Key Benefit: IoT without being beholden to any country’s proprietary standards Willing small entrepreneurial Society IoT standardization – public WiFi a must for open standards (802.11aH WiFi HaLow) Technology Compliance with WANI architecture for aggregator model has been proven India’s digital stack robust for authenticating users Funding Available: Global Private equity players like Lightstorm Ventures, Apollo keenly interested in the WiFi infrastructure play with multi billion committed funds Public sector digital infrastructure spends – massive deployments Technology and Roll-out start-ups, SMEs available 7 key success factors for addressing the INR 60,000 cr/year WiFi Aggregator model are available and ready

20. Our Vision: India, a country of smart cities AND smart villages Ideal Public-Private partnership (infra-entrepreneur) Social Equity Future Tech & Standards Protection Bottleneck resolution Indian Telecom’s UPI Moment???