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Transcript of telecom evolution
824-844 and 869-889 MHz for CDMA operations.
India was divided in 21 circles A, B, C and Metro.
Allocation was done through "Direct Auctioning" method. Telecom Regulatory Authority of India (TRAI) In 1999 New Telecom Policy (NTP) was announced.
Offered a new scheme "Migration Package."
Existing service operators could make a one-time payment called “entry fee” and subsequently pay a licence fee, on a quarterly basis which is a part of their adjusted gross revenue (AGR). Providing Telecom services at affordable and reasonable prices with world class standard.
Realized that required resources for achieving above mentioned goals can come through private investment. 2002 National Frequency Allocation Plan (NFAP-2002) Frequencies from 1920-1980 MHz will be used for IMT (including 3G) for uplink.
2110-2170 MHz for downlink.
In 2010 allocation of 3G spectrum took place through "e-auctioning" method. In India Reference: Sagar et. al Allocation of spectrum was managed by the Wireless Planning and Coordination (WPC) of ministry of Communication 3G Auction Design Contribution of communication sector to Indian GDP has increased from about 1.59 per cent in 2000 to 3.97 per cent in 2006
Worldwide, the third generation licenses were awarded either through a beauty contest or other auctioning methods such as sealed bidding, open bidding, simultaneous multiple round auctions and Vickrey auction.
The auctioning of 3G spectrum as proposed by the DoT was “controlled ascending e-auctioning”, which emulates the 3G auctioning followed by FCC in the US. Base price is fixed prior to the auction, depending on the metro and the circle.
DoT proposed that the reserve price for a block of 2 × 5 MHz in the 2.1 GHz band should be 0.5 per cent of
When the number of bidders left is equal to the number of blocks of spectrum being auctioned, in any service area, the auction will end.
All the bidders will have to match the bid of the highest bidder. Introduction 3G is abbreviated “Third Generation”, and is planned and devised for the real multimedia cellular phones.
However ITU (International Telecommunication Union) has not specified any stringent conditions for data rates.
3G network is intended to provide “Always on” connectivity to users. A real “digital era”, “The age of high speed internet connection.”, “Video phone calls” and “Substitute for notebook PCs” are common perceptions of the 3G services. Spectrum Efficiency Spectrum Introduction Spectrum is the range of frequencies and is the basic requirement of cellular services.
Same band of spectrum can't be used by multiple users at a time, this makes the spectum a scarce resource not only in terms of frequency but also in time. Efficient use of spectrum means transmitting maximum amount of data using less amount of spectrum possible.
Spectrum efficiency is a concerned parameter for service providers for getting maximum benefits. IEEE Standards Technical Efficiency
Re-use/ Coverage + Functional Efficiency
Reliability / Quality /
Ease of use + Economic Efficiency
Revenue / Profit /
Added value } Benefits to User
Benefits to Economy
Benefits to Society Technical efficiency essentially means conveying the maximum volume of data or voice traffic with a given amount of spectrum resource, which typically includes geographic area or volume as well as pure bandwidth Functional efficiency may be regarded as the extent to which the use of radio spectrum meets a user’s specific needs, so enabling a particular task to be carried out more efficiently or effectively than would otherwise be the case. Economic efficiency can be expressed in terms of the maximum revenue, profit or added value that can be generated from a finite amount of spectrum resource. This measure has become increasingly important with the advent of market based licensing and spectrum pricing. FCC Standards 1. Spectrum Efficiency
2. Technical Efficiency
3. Economic Efficiency input–output ratio referring to the maximum information throughput that can be dispatched per unit of radio spectrum. It combines spectrum efficiency with the cost of using other resources- a highly spectrum efficient device may be technically inefficient if it is too Ratio of output value over inputs cost and differs from throughput definitions by measuring value rather than quantity ITU Standards Measure of spectrum utilization – spectrum utilization factor, U, is defined to be the product of the frequency bandwidth, the geometric (geographic) space, and the time denied to other potential users:
U = B * S * T
B : frequency bandwidth
S: geometric space (usually area)
T: Time Fig: Efficiency of different operators during 2009-11 3G Products and Services 1.Mobile internet access
2.Mobile intranet/extranet access
4.Multimedia Messaging services
5.Location based services
6.Rich Voice According to ITU classification Value Added Services Value Added Service (VAS) in telecommunication industry refers to non-core services, the core or basic services being standard voice calls and fax transmission.
Definition as per TRAI: Value Added Services are enhanced services which add value to the basic teleservices and bearer services for which separate license are issued Types of VAS Entertainment VAS
m-Commerce VAS The Entertainment MVAS includes services such as SMS, ringtones/CRBT (Caller Ring Back Tunes), Customized wallpapers, animations, quiz, jokes, religious chants, music on demand, video clips. The Entertainment MVAS enjoy the major share among all MVAS services. These provide entertainment for leisure time usage. The Entertainment MVAS includes services such as SMS, ringtones/CRBT (Caller Ring Back Tunes), Customized wallpapers, animations, quiz, jokes, religious chants, music on demand, video clips. The Entertainment MVAS enjoy the major share among all MVAS services. These provide entertainment for leisure time usage. These are the services which involve some money transaction using the mobile phone. The m-Commerce MVAS refers to mobile banking like transfer of money, payments. M-Commerce MVAS also offer services such as buying movie tickets, travel and holiday booking. VAS Revenue The market for MVAS has grown from Rs. 28.50 billion in Dec 2007 to Rs. 46 billion in Dec 2008. It touched Rs. 57.80 billion in Jun 2009. Revenue & Data Flow in VAS ecosystem The data in the VAS ecosystem flows from the content owner directly to the operator or through a content aggregator. The operator then makes it available to the end consumer. The revenue is generated at the consumer end and is passed on to all other entities. Barriers to growth of VAS Low featured handsets
Low GPRS connectivity
Transparency in revenue sharing arrangements
High VAS tariffs Despite considerable growth in mobile subscriber base, low feature handsets continue to remain throughout the country. There has been phenomenal growth in mobile subscriber base but the low feature handsets continue to be in large proportion. The lack of widespread adoption of feature-rich mobile handsets is a barrier to the growth of MVAS in India GPRS is capable of providing rich information and also online delivery experiences. GPRS connectivity is relatively low due to number of reasons such as handset capability, telecom operators network capability and consumer education The current revenue sharing arrangements favor the operators, and are in stark contrast to the business models in established markets such as China, Japan, and Europe. There is a need to create a transparent framework that clearly sets out balanced revenue sharing arrangements, with a fair system of payouts to different stakeholders across the value chain. Compared to the tariffs for voice, the VAS has much higher tariffs. Customers will more openly use VAS if their tariffs are nearly same compared to voice service, else they will stick to their core voice service. International VAS Scenario China has highest number of subscribers, its mobile data revenue is less compared to US and Japan.
On an average, Japan and Korea have over 40% of their revenue coming from data applications, US around 30%, and Western Europe around 25%.
India has around 13% revenue from data applications. Hence it’s clear that Indian mobile market have a lot of potential in the data segment. Fig: Data revenue for top 10 global telecom operators MNP is a facility given by operators where a subscriber can move from one service provider to another without changing the number allocated to the subscriber. 2009 Mobile Number Portability licenses awarded to 2 Mobile Number Portability Operators (MNPOs) – Telcordia JV (MITS) and Syniverse JV. The subscriber to free to take services from any service provider keeping his old mobile number hence the ownership of the mobile number gets shifted from the provider to the subscriber. The main reason for this re-allocation is the enhancement of competition in the mobile telecommunications (Buehlar, Sewenter, Haucap, 2006) Indian Scenario Number portability is considered a pre-requisite for true competition.
Ensures that the subscriber has the right to choose any service provider he thinks best meets his requirements and aspirations based on his level of satisfaction with the current operator ( Shin a, Kim, 2007).
Subscriber has a lock in period of on 90 days post which he can switch his service provider.
There is no limit set by TRAI, to the number of times he changes his service provider . TRAI MNP regulations •Clear unambiguous eligibility conditions for porting of mobile numbers
•Definition of rights and obligations of all stake holders – the Donor Operator, the Recipient Operator and the MNP Service provider;
•Procedure to be followed by each player in the chain in processing porting request
•Specification of time limits for completion of steps by each player in the chain.
•Envisaging least disruption of service to the consumer Successful Implementation Simplicity: The cost structure for both operators and end-subscribers.
Subscriber-friendly: Subscription fees has been kept extremely low (maximum of INR 19) to ensure negligible barrier to porting.
Equitable: Fees has been kept equitable. Charges applied in different ways to all participants in the of the ecosystem
Stability: The MNP system has been into place with the goal of maximizing the success of the MNP implementation For MNP implementation to be successful in India, following 4 points have been considered. MNP Network Implementation Convergence is the trend within the various information and communications industries towards a merging of networks, services, firms, and devices.
Convergence is the erosion of boundaries among previously separate services, networks, and business practices in the ICT sector. Types
Convergence It allows a firm to use a single network to provide several communication services that traditionally required separate networks
Also known as "multiple play." It exists where a common standard allows several types of networks to connect with each other.
Consequently, a communication service can travel over any combination of networks. It results from mergers, acquisitions, or collaborations among firms.
New business entities are created to offer multiple services (old and new) and address different markets.