mobile broadband

Mobile Broadband

Sugiarto TanudinNetwork Solutions Director

2Mobile BroadbandChanging the industry - just like mobile telephony once did

Adding new revenue streams on existing networks

3The market drivers for mobile broadband

The Broadband market is growing fast - Mobile Broadband is a way to take part in that growth

Laptop usage is increasing and will continue to increase

The user behaviour is already here now the users have an increasing need for mobility, to access their favourite serviceswherever they are

Broadband services can increase your ARPU Mobile only operators will increase their ARPU by becoming a broadband

supplier Converged operators will increase their ARPU by using Mobile broadband as a

value add to their current broadband offer to satisfy the need for mobility

In markets with low fixed broadband penetration mobile broadband can be the most attractive internet access service

4Mobile BroadbandA Healthy ARPU increase

Commercial in confidence 2007-06-2023

0

10

20

30

40

50ARPU Comparison (excl VAT)

Source: Merril Lynch, Global Wireless Matrix Q104. Nordic incumbent operators web site.

ADSL broadband

/month

Mobile Broadband doubles ARPU

Mobile tel.ARPU

256kb/s 512kb/s 2Mb/s 8Mb/s

0

50000

100000

150000

200000

250000

Telkomselnon-Voice

ARPU

TelkomselVoiceARPU

XL 250Mb/mo.

Indosat 1Gb/mo.

TelkomselFlash (40

jam)

TelkomSpeedy

Personal(1Gb/mo.)

R

p

.

Commercial in confidence 2007-06-2024

Mobile Broadband Significant share of revenues Proven mass market appeal Permanent revenue stream Simple business model Mobility premium available

* Advanced markets, Analysys Research 2003

Typical User revenue split by service type

Voice

SMS

Mobile Data Services

Mobile BroadbandFlat rate

2G

Voice, video & SMSbucket plan

3G

> 80%*

< 20%*GPRS and MMS

Revenue structureBroadband services are high quality revenues

Bund

led sc

enari

o

53 Sweden offering (1)

Rp. 300.000

Rp. 444.000

63 Sweden offering (2)

Rp. 370.000

7HSPA Business Case A Mobile Broadband show stopper?

Solution examples: Self built RAN transport Gradual introduction of IP

and Ethernet in RAN

Superior coverage and capacity

New, innovative but easy and unique services that can be added to the bitpipe

Customer focused and well planned build out

Source: Light Reading

Data Dominant

Revenues

Traffic

Time

Voice Dominant

Revenue & Traffic De-Coupled

Trafficcost

Revenues

8Market Conclusions

Data ARPU has increased significantly Data traffic can increase up to 10 times Flat rate is key for subscriber uptake Offer high capacity at launch is important

for perception as Broadband provider (min 3.6 Mbps)

Target all subscribers equally Do Not differentiate fee!

Align MBB pricing to fixed BB. Bundle MBB offer to capture subscriber

loyalty Provide good coverage when launching

MBB

9Mobile Broadband High Level Architeture

Node B Aggreg.HUB

RNC SGSN GGSN

Transport

Term.Term.

Packet Core

Internet

End user perception of service offerings

Affordable coverage

Air interface capacity

RNC capacity

Transport network

Core capacity

Ericsson Internal 2007-11-1510

Evolution of WCDMA/HSPAIncreased air interface capacity

~10~25~25~50~75~150

50125.81.40.3840.064

1004228143.60.384

LTE20 MHz*

HSPA Evolved

HSPAEvolved

HSPAMBMSHSDPAWCDMA

DL Mbps

UL Mbps

Latency (ms)

2004 2005 2006/2007 2008 2009

*target bit rates

Air interfaceCapacity


Superior deployment capabilitiesCost efficient coverage

1.1 Mbps HSDPA measured @ 80 KmMultiple Voice & Video Calls @ 80 Km

Extended Range solutions

Innovativesites

VoiceMediaData

WCDMA/HSPA

WCDMAFreq 2

GSM

Directed RetryLoad / Service based HO

GSM co-existence HSPA on R99 carrier

Unique Ericsson solutions Lowest Total Cost of Ownership

HSPA 2100 on GSM 900 grid

Mbps speedson stretchedGSM 900 cell edge

GSM 900 Voice

cell edge


Core Industry DynamicsMobile IP Edge Evolution Steps

2005-2006

IP networks

HLR

3G

2G

ChargingPolicy Control GGSNGGSN

SGSNSGSN

Mobile Broadband Introduction

Mobile Broadband

Optimization

2007-

IP networks

HLR

3G

2G

ChargingPolicy Control GGSNGGSN

SGSNSGSN

2009-

IP networks

HSS

3G

2G

ChargingPolicy Control

LTE

SGSN/ServerSGSN/Server

GGSN/GatewayGGSN/Gateway

SW upgradeto SAE

Packet Core evolution for optimized HSPA operation

Non-3GPP3G DirectTunnel

CoreCapacity

13

EMPPlatforms Fixed Wireless

Terminals

MobileBroadband

Modules

Ericssons strong device commitmentEstablish large eco-system

More than 50% of all notebooks by 2011 include Mobile Broadband Modules

Being the leader in market share of Mobile Broadband Modules

>30 million WCDMA handsets

based on EMP platforms

14

Ericssonthe leader in HSPA

Launched networksEricsson World

HSDPA 75 154

HSDPA 7.2 Mbps 24 29

Enhanced Uplink 20 24

Continents Frequency bandsN. America Europe Asia 2100 850 17/2100S. America Africa Australia 900 1900 17/1800

HSPA dominance in all continents on all frequency bands

15

Summary

Mobile/Wireless Broadband will increase operators revenue and subscriber ARPU.

8 million PC with 25% annual growth and 250k fixed broadband subscription in Indonesia. (Telkomsel forecast: 120 million cellular users, 57.8 million Internet users, 3.5 mobile broadband users in Indonesia by 2010)

Competition among operators will be very fierce and offerings can be similar.

Building an efficient infrastructure to cater for high volume data traffic is a must.

Flat rate is proven as a good end user offering.

Need to manage the data traffic and further revenue intake is necessary in the long run.

CS traffic will double yet shrink from 90% to 20% of total traffic

PS traffic will potentially grow from 10% of traffic to 80% of traffic within 3-5 years

mobile broadband

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