Technology 4G : Challenges and Opportunities for Indonesia ...softskill.bakrie.ac.id/wp-content/uploads/2011/12/Technology-4G... · Technology 4G : Challenges and Opportunities for

PT Berca Global Access

Technology 4G : Challenges and Opportunities for Indonesia

Market Deden R Machdi

VP Network Berca Global Access


Agenda

• Technology Evolution • Market Overview and Opportunites • Berca Global Access • Challenges


Technology Evolution


Short History of Mobile Technologies

Technology 1G 2G 2.5G 3G 4G Design Began 1970 1980 1985 1990 2000

Implementation 1984 1991 1999 2002 2010

Services Analog voice

Digital voice, SMS

Higher capacity, packetized data, MMS

Higher capacity, Broadband data

Higher capacity, completely IP, Multimedia

Standards AMPS, TACS, NMTS

TDMA, CDMA, GSM, PDC

GPRS, EDGE WCDMA, CDMA2000

WiMAX, LTE

Data Bandwidth 1.9 kbps 14.4 kbps 384 kbps 2 Mbps >100 Mbps

Multiplexing FDMA TDMA,CDMA TDMA,CDMA CDMA OFDMA

Core Network PSTN PSTN PSTN,Packet Network

Packet Network

Internet


Radio Technology Evolution

AMPS TACS NMT

GSM TDMA

CDMA-one IS-95

WCDMA WiMAX LTE

1G 2G-2.5G 3G 4G


Mobile System Generations • First Generation (1G) systems were designed to offer a

single services i.e. speech • Second Generation (2G) systems were also designed

primarily to offer speech with a limited capability which offering data at low rates

• Third Generation (3G) systems are expected to offer high-quality multi media services and operate in different environments. 3G system are referred to as Universal Mobile Telecommunications Systems (UMTS)in Europe and International Mobile Telecommunication 2000 (IMT2000) worldwide

• Fourth Generation (4G) are expected to offer triple play multimedia service which allow those services run simultaneously


Third Generation -3G

Two basic proposal to handle voice and data • Ericsson : Universal Mobile Telecommunications

Systems (UMTS) – Compatible with European GSM – Backed by ETSI and Japan

• Qualcom : CDMA2000 – Not compatible with GSM (can not hand-off to GSM

based system) – Compatible for IS-95 (supported by US)


Major Driver of Future Wireless

• Convergence of High Speed Internet and Mobility

• More than billions subscribers to cellular services are enjoying the benefits of staying connected while on the move

• With the growth in internet, a wide range of services are accessed by users

• Shifting of life style : Social Media networking


Limitation of 3G

• Difficulty of WCDMA to provide higher data rate

• Need for continuously increasing data rate and bandwidth to meet multimedia requirements

• Limitation of spectrum and it’s allocation • Provide a seamless transport end-to-end

mechanism • Introduce a better system with reduces cost

(CAPEX and OPEX)


4G Concept

“The users has freedom and flexibility to

select any desired service with reasonable QoS and affordable price, anytime,

anywhere”


Design Objectives

Information bit rate : 384 kbps System capacity

Cost Base Station Network

Transport System : ATM Transmission delay time

New service platform - Rapid deployment of new svc - Easy development of new svc Seamless connection and HO Between heterogeneous access System 100 Mbps (peak rate in mobile) 1 Gbps (peak rate in indoor) 10 times than 3G 1/10 to 1/100 per bit All-IP 50 ms or less

Starts new Services Based on new Capabilities

IMT-2000 4G system

Enhance services through Performance enhancements

Capability and Performance


AAA

PCRF

PCEF

BCCS

DMP

CAP

Internet

CSN BSS ASN

BS

CPE

WiMAX Networks


Keys Advantage of 4G

• Spectrum efficiency • High Bandwidth • Less Latency • Network simplicity • Quick Time to Market • Less investment


Application under 4G

• • Live TV Channel • • Micro blogging • • Real-time News • • World Game Music • • World Gam – Games • • Real-time Weather • • Travel planner • • Kaohsiung Sub-Way route • • Online Taxi • • And More…


Market Overview and Opportunities


LA Ontario

Miami

Santiago

Tokyo

KualaLumpur

JakartaSydney

Auckland

ShanghaiDubaiAmman

Johanesburg

Beijing

Asia Europe

Africa

North America

Oceania South America

Country Operator

1.9G 7 7

2.3G 18 27

2.5/2.6G 21 38

3.5G 12 31

Country Operator

1.9G 37 122

2.3G 4 10

2.5/2.6G 10 16

3.5G 19 48

Country Operator

1.9G 0 0

2.3G 6 13

2.5/2.6G 2 4

3.5G 0 0

Country Operator

1.9G 0 0

2.3G 2 3

2.5/2.6G 6 13

3.5G 4 4

Country Operator 1.9G 0 0 2.3G 1 1 2.5/2.6G 4 5 3.5G 4 4

Country Operator

1.9G 2 4

2.3G 14 14

2.5/2.6G 16 27

3.5G 16 25

416 operators in 205 countries already got TDD spectrum. Another 12 countries will release TDD spectrum in 2.3/2.6G within this year ,include

Italy, Switzerland, Portugal ,France , etc.

Operators Telco World wide


High growth opportunity Asia Pac

India Pop. (mm) 1,148.1 BB pen. (%) 0.3%

Bangladesh Pop. (mm) 161.9 BB pen. (%) 0.0%

Cambodia Pop. (mm) 14.6 BB pen. (%) 0.0%

Vietnam Pop. (mm) 86.8 BB pen. (%) 2.8%

Thailand Pop. (mm) 66.2 BB pen. (%) 4.0%

Philippines Pop. (mm) 88.8 BB pen. (%) 0.7%

Malaysia Pop. (mm) 27.6 BB pen. (%) 5.0%

Brunei Pop. (mm) 0.4 BB pen. (%) 2.8%

Indonesia Pop. (mm) 233.1 BB pen. (%) 0.2%

Singapore Pop. (mm) 4.6 BB pen. (%) 21.5%

Source: Company, Media Partners Asia, IMF, Internetworldstats and broker reports Note: Broadband penetration by population

http://upload.wikimedia.org/wikipedia/commons/9/9c/Flag_of_Brunei.svg

http://upload.wikimedia.org/wikipedia/commons/f/f9/Flag_of_Bangladesh.svg

http://upload.wikimedia.org/wikipedia/commons/6/66/Flag_of_Malaysia.svg

http://upload.wikimedia.org/wikipedia/commons/4/48/Flag_of_Singapore.svg

http://upload.wikimedia.org/wikipedia/commons/9/9f/Flag_of_Indonesia.svg

http://upload.wikimedia.org/wikipedia/commons/9/99/Flag_of_the_Philippines.svg

http://upload.wikimedia.org/wikipedia/commons/2/21/Flag_of_Vietnam.svg

http://upload.wikimedia.org/wikipedia/commons/8/83/Flag_of_Cambodia.svg

http://upload.wikimedia.org/wikipedia/commons/a/a9/Flag_of_Thailand.svg


Huge Data Potential in Recent Years

Source: Huawei Wireless 2011 Q1

Mobile traffic doubles every year

-

1,000,000.00

2,000,000.00

3,000,000.00

4,000,000.00

5,000,000.00

6,000,000.00

7,000,000.00

USA CANADA UK Japan

2008

2009

2010

2011E

2012E

2013E

2014E

10 Billion new “Smart” connections

50 1000

Presenter

Presentation Notes

Terminal: The world will be a smart world 10 Billion new Smart devices. From several major developed telecommunications market, we can forecast in the next few years, data services will be explosive growth. We will usher in the first wave of digital flood.


Life Style : Mobile Social Networking

• Online Communities of people who share interests and/or activities, conversing and connecting with one another using mobile phone (Wikipedia)

• Popular Social Networking Media includes MySpace, Facebook, Windows Live Spaces (MSN Spaces), Friendsters, hi5, Flixsters, Flickrs

http://images.google.com/imgres?imgurl=http://cohesion.rice.edu/centersandinst/boniuk/emplibrary/facebook logo.jpg&imgrefurl=http://cohesion.rice.edu/centersandinst/boniuk/boniuk.cfm?doc_id=13052&usg=__PEqMvL636dMeIaeYUuNjnW4SOx8=&h=294&w=512&sz=23&hl=en&start=16&um=1&tbnid=j9GkZEHrSzcgaM:&tbnh=75&tbnw=131&prev=/images?q=facebook+logo&hl=en&rlz=1T4WZPA_en___ID260&sa=X&um=1

http://images.google.co.id/imgres?imgurl=http://www.oneyearyesterday.com/images/myspace.png&imgrefurl=http://www.oneyearyesterday.com/&usg=__TFWH1OJcwONflAv_TZSGEOb1YWc=&h=256&w=256&sz=27&hl=en&start=67&sig2=E3ixd4wqpi6mX4iDBuozCQ&um=1&tbnid=Pyem0OIct1HNuM:&tbnh=111&tbnw=111&prev=/images?q=MySpace+icon&ndsp=20&hl=en&sa=N&start=60&um=1&ei=fGzOSZmGBs2AkQWCkO3RCQ

http://images.google.co.id/imgres?imgurl=http://nyambayar.com/indexHi5Icon.png&imgrefurl=http://nyambayar.com/&usg=__j64boIeuscJ0tWUxPAS7KiIrOJM=&h=210&w=210&sz=96&hl=en&start=16&sig2=RKdPqvNnU-WJZwK9tIMx5g&um=1&tbnid=9ySag7C8z7MTqM:&tbnh=106&tbnw=106&prev=/images?q=hi5+icon&hl=en&sa=G&um=1&ei=x2zOSfDUFsGdkAWm4szWCQ

http://images.google.co.id/imgres?imgurl=http://www.nationalteachin.org/images/s_img/flickr_icon.jpg&imgrefurl=http://www.nationalteachin.org/&usg=__OL6F5ITI2KZL56FWUZ_dbL_aP7A=&h=100&w=100&sz=16&hl=en&start=67&sig2=tJN0z4MtJcL2DM_HXhoqAw&um=1&tbnid=7UelZRIMKntxVM:&tbnh=82&tbnw=82&prev=/images?q=flickr+icon&ndsp=20&hl=en&sa=N&start=60&um=1&ei=1W3OSdj0E8-UkAXJvPXQCQ


Low BB and PC Penetration


Indonesia Market : Overview

• Revenue of data in 2011 is expected U$ 3.4 B

• CAGR 18.9% • Annual revenue in 2014 is expected U$ 5.74

B • Close to annual revenue of voice is U$ 6.41

B CAGR 2.93% • ATSI

– Penetration of data services is 30% of 240 Millions subscribers


Compelling Opportunities

• Low Broadband Penetration • Value Shifting (from need to Life style) • Frequency allocation • Voice revenue drops significantly and in

return, data revenue increases • National Agenda


WiMAX Deployment Worldwide

BGA

Vivid Wireless


Berca Global Access www.wigo.co.id


Background

• 4G license holder in 8 Zones • Brand “WiGO” • Spectrum frequency (2600-2900 Khz) • Deployed network in 5 Areas (Medan,

Balikpapan, Bali, Batam and Makasar) • Plan to deploy in others areas by Q2 2011

(total 1,000 sites)


No WiMAX competitor in 6 of the 8 zones we operate

Service Zones


Internet Subscribers Penetration

1,714

680605

1,315

507

1,180

468

20472 18 7 48 12 32 6 5

4.2

2.7

1.2

3.72.5 2.7

1.22.3

Medan Pekanbaru Batam Palembang Balikpapan Makassar Denpasar BadungPopulation ('000) Subscribers ('000) Subscribers penetration (%)

Markplus Survey 2009

Internet Environment

Presenter

Presentation Notes

Potential Household is number of population divide by 4.1 times SEC A, B percentage (2009) PC Penetration based on Apkomindo estimation Internet Penetration based on APJII 2009 (12.5%) times population


Value Proposition

• The first and exclusive 4G operators in the respective areas

• Provide 100 Mbps per site, latency less than 100 ms (round trip)

• Design radio for edge-throughput 1 Mbps • End-to-end Quality of Services • Seamless integration to 3G (offload traffic)


WiGO Portal


Network Overview ASN

BS PE CPE

ASN BS PE CPE

ASN BS PE CPE

ASN BS PE CPE

AAA

PE PCEF

PCRF

FW

DNS

BCCS

DMP CAP

BSS

Provisioning

IMS Multime

dia

IMS Messagi

ng

IMS VoIP

IMS sharing

IMS Core (roadmap)

Service Application

Corporate service

Cyber IIX & Intl GW

Internet

Internet service

Present

Status Bali

Present

Status Medan

Present

Status Batam

Present

Status Balikp

pn

Present

Status Makas

ar


Medan Coverage

PT Berca Global Access 32

Bali Coverage


Batam Coverage


Balikpapan Coverage


Left : Huawei Middle: Gemtek Right: ZTE

Type of Terminals – Dongle CPE


Type of Terminals – Smart Phone


Above: Green Packet Left: Huawei

Type of Terminals – indoor CPE


Intel® Centrino® Avanced-N + WiMAX 6250 (Kilmer Peak)

Embbeded Laptop

PT Berca Global Access Diagram koneksi

CPE, Pole & Adapter unit

Produk Lokal, TRG

Type of Terminals – Outdoor CPE


Challenges


Scattered Network

• Centralize IX in Jakarta • High Opex for inter-city links • Contribute more than 50% Opex • Impact to Business model and pricing

strategy


Traffic towards outside

• Almost all traffics towards outside Indonesia (Facebook, Youtube, etc)

• Treat as “Dump Pipe” • Local content developer is a MUST


TD-LTE will be the future?

• Market-driven determine technology standard

• TD-LTE will be the future for mobility • Supported by handset manufactures (i-

phone, Blackberry, Samsung etc)


Business Support System

• BSS to support line of services • Customization due to competition,

changes of market etc • Local Development as opportunity


Our Roadmap

• WiMAX and LTE co-existance • Improve spectrum efficiency (e-FFR) • Distribution network to regional basis • Development of Local Content • Caching system to Localize the traffics


WiGO – at glance


Thank you

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Technology 4G : Challenges and Opportunities for Indonesia ...softskill.bakrie.ac.id/wp-content/uploads/2011/12/Technology-4G... · Technology 4G : Challenges and Opportunities for