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Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density and Broadband penetration” CANTO – 2005 / St. Kitts – West Indies Marcio Fonseca – Marketing Manager UTStarcom Inc.

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Page 1: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries

“Models for a commercially viable increase in Tele-density and Broadband penetration”

CANTO – 2005 / St. Kitts – West Indies

Marcio Fonseca – Marketing Manager

Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries

“Models for a commercially viable increase in Tele-density and Broadband penetration”

CANTO – 2005 / St. Kitts – West Indies

Marcio Fonseca – Marketing Manager

UTStarcom Inc.UTStarcom Inc.

Page 2: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

2

Who is UTStarcom?Who is UTStarcom?

Founded in 1991, HQ in Alameda, California

NASDAQ listed since March 2000 – (ticker symbol: UTSI)

• Over 300 customers worldwide

• Three consecutive years of growth

• Over 70 million ports deployed worldwide

• Over 40 million iPAS subscribers in China (PHS Technology)

• Over 100K iPAS Subscribers in the Caribbean and Latin America

• Shipped over 30 million handsets in 2003/2004

• The largest Softswitch deployment in the world

• The largest GE-PON network in the world

• Introduced 4 new key products in 2004

– MovingMedia 2000, MovingMedia 6000, GE-PON & mVision

UTStarcom is a worldwide leader in the development of wireline, wireless, optical and access switching solutions. By working with UTStarcom , service providers around the world can now generate new revenue by offering their subscribers a rich array of premium voice, data and video communications services

Page 3: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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Market RecognitionMarket Recognition

# 31 - “100 Fastest-Growing Companies”

# 33 - “100 Hot Growth Companies” - June 2004, 5th fastest growing company

# 9 – “Top 25 Fastest Growing Tech Companies”**two years straight

Top 10 - Investor’s Business Daily 100

# 1 - “Fastest Growing Tech Companies”

Page 4: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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Technology and Industry LeadershipTechnology and Industry Leadership

#1#1

#2

#1

#2

WirelessWireless

WirelineWireline

Market Share Worldwide in PAS/iPAS

Market Share Worldwide in CDMA PDSN

Market Share Worldwide in Media Gateways

Market Share Worldwide in IP-DSLAM

Market Share Worldwide in SoftSwitch

Source: Infonetics Research Inc., Synergy Research, First Call Reports, Internal EstimatesSource: Infonetics Research Inc., Synergy Research, First Call Reports, Internal Estimates

Page 5: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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Strategic Acquisitions 2003/2004Strategic Acquisitions 2003/2004

CDMA2000

450/800/1900MHz

Audiovox Communications Corporation (ACC)

Mobile Handsets

Data Enhanced Mobile Switching Solutions

Page 6: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

iPAS®, MovingMedia 2000®, IP-DSLAM, and GE-PON

Models for a commercially viable increase in Tele-density and Broadband penetration in Developing Countries

Page 7: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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Regional Statistics and CommentsRegional Statistics and Comments

Country TeledensityInternet users

per 10,000 inhabitants

PC's per 100 inhabitants

Antigua & Barbuda 48.78 1282.05 10.21Bahamas 41.53 2649.01 …Barbados 49.68 3707.82 10.41Belize 11.27 1088.53 12.70Cuba 6.40 86.63 2.39Dominica 30.39 1602.56 8.97Dominican Republic 11.54 1023.84 8.78Grenada 29.04 1690.39 13.21Guyana 9.15 1422.07 2.73Haiti 1.68 180.16 …Jamaica 16.92 2284.50 5.37St. Kitts & Nevis 50.00 2127.66 19.15St. Lucia 31.95 823.96 15.00St. Vincent & the Grenadines 27.25

598.29 11.97

Suriname 15.17 437.18 4.55Tinidad & Tobago 24.98 1060.32 7.95

U.S.A 62.38 5577.84 65.98Germany 65.73 4725.46 48.47England 59.06 4230.98 40.57Brasil 22.29 822.41 7.48Hong Kong 55.89 4717.70 42.20

Other Countries

Comments:

- Great opportunity for ISP’s to join forces with hardware providers to increase overall PC / Internet penetration (packaged deals, i.e. MSN)

- Specific opportunities for immediate increase of Teledensity.

- Developed countries usually have higher broadband penetration rates in general.

- Total Broadband penetration for the developed world is 14.1%. Internet usage in the region is 13.78%. Conversion from dial-up to Broadband will result in added revenues for carriers.

- Broadband deployment is the path for future triple-play services which will add to the bottom line of carriers.

Page 8: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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iPAS® - PHS WLL technology for low Tele-density areas iPAS® - PHS WLL technology for low Tele-density areas

PS

ATC/SATC

WRT

Call Control& BES

iPAS GW

WRT

iAG

DWRTRadius

PSTN

INTERNET

AN-2000

AN-2000 AN-2000

CS

FSU

CSCE1/T1

2W

SS7

E1: V5.1/V5.2T1: TR08/GR303

BRI

AN-2000

CSCSC

AN-2000

CSCSC

AN-2000

CSCSC

AN-2000

Tot al Cont r ol 1000

WRT

DWRT

ATC

CSC

CS

FSU

PS

iAG

Wireless Remote Terminal

Data WRT

Air Traffic Controller

Cell Station Controller

Cell Station

Fixed Subscriber Unit

Personal Station

Internet Access Gateway

LEGEND

IP Network

AN-2000

Key Points:

WLL application very economic

Implementation via Micro-cells with 500m to 1Km in range

Quickly deployment for rapid increase of Tele-density.

Page 9: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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Success Stories – Ti Telefon and MultifonSuccess Stories – Ti Telefon and Multifon

Teleco Haiti / Multifon Honduras

- “Ti Telefon” and “Multifon”

- 50K Subscribers in 3 years of operation in Haiti. 50K subs in Honduras in less than a year.

- First really affordable option for telecommunications services in both countries

- Known as diesel phone in Haiti.

- Stable platform fully operational through hurricanes and political turmoil.

- Responsible for immediate increase of more than 30% in country’s Tele-density.

- UTStarcom support extends itself to everything from marketing to the operation of the network

Page 10: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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MovingMedia 2000® - IP Based CDMA 2000 1X solutionMovingMedia 2000® - IP Based CDMA 2000 1X solution

Applications:Applications:• Wireless NetworksWireless Networks• Tandem NetworksTandem Networks• IP-Based CDMA2000 1XIP-Based CDMA2000 1X

PacketNetwork

Sonata SEWireless SoftSwitch

Feature Server

1G/2G/2.5GRAN/BSS

• AMPS• GSM/GPRS• CDMA2000 1X

SS7

PSTN

SonataOMC

E1 or T1MF R1, MFC R2, ISDN PRI or ISUP / SS7

Sonata IMGIntelligent Media Gateways

CDMA iCellIP-BSS

Voicemail, Prepaid, SMS,

Internet

PacketCore Network

AAA

PDSN

Page 11: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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MovingMedia 2000® - Key Value Proposition: Rapid Deployment and Transmission Cost SavingsMovingMedia 2000® - Key Value Proposition: Rapid Deployment and Transmission Cost Savings

TraditionalBandwidth Required: 22 T1

Annual cost $1,056,000

MSCServer

IMG

PSTN

LocalPSTN

iCell

IMG

Managed

Packet Network

563Kps

UTStarcom’s All IP NetworkBandwidth Required: Partial T1

Annual cost $17,592

A transmission cost comparison of UTStarcom’s All IP NGN vs. traditional wireless solutions indicates potential savings of 98%.

BSCPSTN

5 T1

17 T1

BTS

LocalPSTN

MSC

Assumes 5 iCells, 85% local traffic

Page 12: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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IPDSLAM – Broadband SolutionIPDSLAM – Broadband Solution

Where an actual copper infrastructure exists, operators may deploy broadband service utilizing IP-DSLAM’s to a neighborhood or a cluster of buildings or a single building if it wishes to do so.

The key for any successful broadband deployment is the cost of the service. Research shows that customers are willing to embrace new technologies that they may afford.

Page 13: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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IPDSLAM – Brasil TelecomIPDSLAM – Brasil Telecom

Key points:

- Late deployment

- Very aggressive pricing strategy

- Available plans:

Turbo Lite – 50 Hours of access for $ 9.95 monthly @ 150Kbps

Unlimited Usage @ 400Kbps for $ 31.95

- Expected subscriber base: more than 1 million subscribers in less than a year of operation.

Page 14: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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GE-PON – Passive Optical NetworkGE-PON – Passive Optical Network

Where no copper exists, operators may decide to go directly with GE-PON for their last mile

Page 15: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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SIP/MGCP

IP CORE

OLTGE PON

SoftSwitchCall Control& Signaling

SUBSCRIBER

PONONU

VOICE, DATA & VIDEO

DSL CPE

SUBSCRIBER

PONONU

VOICE, DATA & VIDEO

DSL CPE

PSTN

Internet

PSTN/PLMNGATEWAY

TMG

GE-PON – Triple Play ServicesGE-PON – Triple Play Services

Where GE-PON networks are deployed the operator can fully explore that market’s potential by offering triple play services: Telephony, TVoIP, Broadband, VoIP, VOD, Gaming, and many more to come…

Page 16: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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BB TV - IP

BB Gaming – Online Gaming

Yahoo! BB - WiFi

BB Phone –VoIP

BB Video – Video on Demand

Yahoo! BB – Broadband Access

Yahoo BB! – Triple play utilizing UTStarcom InfrastructureYahoo BB! – Triple play utilizing UTStarcom Infrastructure

$35.29/month

$10.37/month

$4.07/month $3.01/month

$28.30/month

$9.27/month

Total = $90.31/monthly ARPU

Page 17: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

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ConclusionsConclusions

• Network deployments need to go hand in hand with an initial demand study for the applications.

• In other countries, broadband penetration has been a direct consequence of its pricing.

• Any network investment must add to the bottom line by saving OPEX or increasing revenue.

• Search for network vendors that support the operation from all sides. Including marketing and sales of the solution to the end-user such as UTStarcom

Page 18: Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density

QUESTIONS???

For more information, or for a copy of this presentation please email

[email protected]

QUESTIONS???

For more information, or for a copy of this presentation please email

[email protected]