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corDECT WiLL designed to connect developing countries

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?.

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corDECT WiLL designed to connect developing countries

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  1. corDECT WiLL designed to connect developing countries ashok jhunjhunwalaTeNeT Group, IIT Madras, Indiaashok@tenet.res.in

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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

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

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

  11. 25 Km 10 Km RBS ( E1 (R2 / V5.2) : Voice DIU WS-IP Power Backup CBS IP corDECT General Architecture corDECT - System Architecture

  12. 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

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

  14. 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.

  15. 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

  16. 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 corDECT will continue to dominate this market in future

  17. 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

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

  19. 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

  20. Aggregate Demand • 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

  21. 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

  22. 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

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

  24. 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 Kioskproviding 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

  25. Telephone Backbone Application & Content Providers Internet Backbone • 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) ACCESS CENTRE • Connections: • Individuals • Government • schools and PHCs • Kiosks LSP Banks Rs. 50,000 / Kiosk KIOSK OPERATOR Banks Micro Finance Organisations n-Logue Deployment Strategy

  26. 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

  27. Word-processor in Indian Languages

  28. IITM - Chennai Kavigal Multi-lingual Office Package

  29. Mundi . . . . • A 60 year old from a villagenear 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

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

  31. E- Dr Vet ? • 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

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

  33. 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

  34. 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

  35.  15 -20 Kms with 100 connections ISRO-IITM For inaccessible Rural Areas <-- 64 Kbps 2 Mbps --> 128 Kbps --> 3.8 m antenna 2.4 m antenna PSTN • 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 Internet

  36. 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

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