internet for the next billion - archive.icann.org · nokia siemens networks connecting the next...

Internet for the Next BillionBuenos Aires, November 26th, 2009

1 © Nokia Siemens Networks

Nokia Siemens NetworksConnecting the Next BillionConnecting the Next Billion

5 billion people connected

The next billion i i

Solutions for the

Services for the

A complex ecosystemvision for the

next billionfor the next billion

ecosystem


Our market vision 2015 – the World connected

Applications Multitude ofApplications predominantly in internet

Multitude of business

models

5 billion people5 billion people connected

Broadband everywhere


The challenge of connectivity: Affordability

Global Income Pyramid

Voice & Internet/IP

0,8b >40$/day

IP connectivityaffordability barrier at 1.2bn(2007)

Voice & No Internet/IP

1 3b 4$/d

1.5b 4-40$/dayVoice affordability barrier at 3bn(2007) 1.3b 4$/day( )

No voice & No Internet/IP

1.4b 2$/day

Source: Nokia Worldmap 2006 NET Strategy & Technology

1.3b 1$/day

4 © Nokia Siemens Networks4 © Nokia Siemens Networks

Source: Nokia Worldmap 2006, NET Strategy & Technology

Towards universal access

4 5004 billion in 2009

3 500

4 000

ion)

3 billion in 2007

2 500

3 000

crib

ers

(milli

2 billion in 2005

1 500

2 000

loba

l sub

sc

1 billion in 2002

Source:500

1 000G

Source: Nokia estimate, Dec 20070

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009e

Over 1 5 million mobile subscribers every day mostly coming from emerging markets


Over 1,5 million mobile subscribers every day, mostly coming from emerging markets

New growth will come primarily from lower income segmentsincome segments

Example income distribution

Expected penetration in 2009Penetration nowPopulation without mobile

p p

opul

atio

nSh

are

of p

o

High Upper mid Mid Low Very low

Income classes

S


The opportunity in New Growth Markets

User penetration (%)100

User penetration (%)100

Mature markets Emerging markets

80

100

80

100PC penetration

Cellular user penetration

40

60

40

60p

PC penetration

2003 2005 2007 2009 20110

20

2003 2005 2007 2009 20110

20C pe et at o

Cellular user penetration

• Overall high growth opportunity in emerging marketsTh ll l t ti d th PC t ti b f• The cellular penetration supersedes the PC penetration by far, which drives our believe that mobile owners will drive the growth

• Internet in emerging markets will be fixed and mobile


Source: Nokia Siemens Networks 2007

The Connectivity Scorecard studyGroundbreaking study that ranks countries on approximately 30Groundbreaking study that ranks countries on approximately 30 indicators of connectivity contributing to social and economic prosperity

Created by Leonard Waverman, professor of economics at London Business School us ess Sc oo

Conducted under his direction by global economic consulting firm LECG and commissioned by Nokia Siemens Networks

Key findings:•Not even the world’s richest countries can afford to become complacent about their current telecom and computingtheir current telecom and computing profile•Every nation has substantial scope for re-organizing government, business and


consumer activity to more fully reap the benefits of technology

Latin-America TCO facing large differences with other emerging economiesother emerging economies

18.00T

14.00

16.00TaxServiceHandset

SD 10.00

12.00

US

6.00

8.00

Source: 2.00

4.00

Nokia, November 20070.00APAC Eastern Europe

and CISLTA MEA


APAC has clearly the lowest TCO across regions

Monthly TCO per country25

20

25

15

US

dol

lars

10

Average 13.16 US dollars

U

5

Source: Nokia, November 2007

nka

dia

esh

tan

bwe

and

uay

esia

olia pia

ina

dan

tius

dia

nes

sia

ysia aiti

ypt

ala

via

am tan

tan

dan

ana

eria ina

ep.

ana

nda

nia

gal

bia

eria

mb. ras

ngo

tan

had

ola

xico bia

key

hile

rica

bia

jan

uay

cco

ova

nya

oon

tan

dor

0

Only four countries meet the monthly TCO target of USD 5 all of them in APAC

Sri

Lan In

Ban

glad

eP

akis

tZi

mba

bTh

aila

Par

agu

Indo

neM

ongo

Eth

io Ch

Sud

Mau

ritC

ambo

Phi

lippi

nTu

niM

alay H Eg

Gua

tem

Bol

iV

ietn

aTa

jikis

tK

yrgy

zst

Jord

Gha

Alg

eA

rgen

tD

om. R

eB

otsw

aU

gan

Tanz

aS

ene

Col

om Nig

eM

ozam

Hon

du Con

Kaz

akhs

tC

hA

ngM

exN

ami

Turk Ch

Sou

th A

frZa

mA

zerb

aij

Uru

guM

oroc

Mol

do Ken

Cam

ero

Turk

men

ist

Ecu

ad


Only four countries meet the monthly TCO target of USD 5, all of them in APAC

High TCO/GDP per capita ratio = low penetration100%

fair medium highSouth Africa

ArgentinaMalaysia Chile

T k

100%

90%

Thailand

Mauritius

yTurkeyTunisia Uruguay

JordanAlgeria Colombia

EcuadorBotswanaGabonKazakhstan

80%

70%Kazakhstan

Guatemala El SalvadorParaguay

Brazil Guyana

AzerbaijanMoroccoPhilippines

MexicoArmeniaDominican

Republic Georgia

60%

50%

HondurasGeorgiaPeru

MauritaniaHaiti

PakistanChinaNamibia Bolivia

Sri Lanka

Lebanon MongoliaEgypt Angola

CongoSyria

IndonesiaSwaziland Vi t

Senegal

NicaraguaMoldova

KyrgyzstanGhana

Cote d’Ivorie

Kenya

40%

30%

netr

atio

n

SyriaSwaziland

IndiaSudan

VietnamBangladesh

Cambodia

NigeriaGhana

Zambia

ChadZimbabwe

Guinea

Cameroondeshoto

Kenya

Tajikistan TanzaniaMozambique

Madagascar

20%

10% Uganda

TCO to GDP per capita ratio Source: Nokia, November 2007

Pen Turkmenistan Madagascar

Ethiopia0%0% 10% 20% 30% 40% 50% 60%


TCO to GDP per capita ratio Source: Nokia, November 2007

Latin American Countries position

Digital inclusion requires much more than just connectivity

Affordability

connectivity…Literacy: language and ITAffordability

TCO from consumer and operator

tiperspective

Access to technology and access Personal

S M j Lii Vih ä 1999 ( d t d)

to servicePersonal value of the service


Source: Marja-Liisa Viherä 1999 (adapted)



Solutions for the next billi

Services for the

A complex ecosystem

The next billion billion for the

next billionecosystemnext billion

vision


A customized solution for a challenging environment:

Transmission not available to

environment:Nokia Siemens Networks RLU project at Oi, Brazil

RRRR

RNRNCECEMAMA

APAPTransmission not available to PGMU locations

Deployment of terrestrial Tx

TOTOMTMT

ROROACACBABA

AMAM PAPA

SESEALAL

PEPEPBPB

RNRNCECE

PIPIcapability only possible to connect 1 public payphone to almost all locations with between 100 – 300 i h bi (2569 l i )

GOGO

MTMT

MSMSMGMG

ESES

BABA

Other locations – 300 thru 600 inhabitants – called for 1. an

inhabitants (2569 locations)

PRPRSCSC

MSMSSPSP RJRJ access device able to offer

telephone, fax and Internet and 2. digital transmission to

Total 4500 rural sites voice and broadband data services

RSRS connect these services to Oi’s network. (1935 locations)


Total 4500 rural sites, voice and broadband data services, public and private users

A solution matching Latin-American environmentalAmerican environmental conditions:Nokia Siemens Networks RLU

Solar power supplySatellite feeding

RLU

RLU site at a school


Nokia Siemens Networks Village Connectionmeeting the challenge of connecting the next billionmeeting the challenge of connecting the next billion

The challenge:• Profitable mobile connectivity for rural• Profitable mobile connectivity for rural

subscribers who typically can afford US$ 3 per month

The solution: Village Connection• Significantly reduced TCO through

novel network architecture and slimnovel network architecture and slim site solution

• New business model enabled by local subscriber managementby local subscriber management

Ready for roll-out: • Connecting communities in India now

Optional Solar Panel

• Connecting communities in India now• Global roll-out starting 1Q2008

BTS BatteryPC


y

Nokia Siemens Networks Village ConnectionVillage Connection

AntennaAntenna

Base Station

PC & Site WorkPC & Site Work


Evolution from affordable voice to Internetvoice to Internet

Consumers will want to

Phase 1: Voice services Phase 2: Shared internet Phase 3: Personal internet

PersonalConsumers will want to try out the benefits that internet will bring and understand the valuePersonal

GSM Voice Sh d

Personal mobile with internet

GSM Voice + SMS Shared

mobile with internet

Internet kiosk to access Internet withShared

Personal PCInternet with

assistanceSharedGSM phone

Shared PC

Village Connection Village Connection + Internet kiosk

Broadband services


+ Internet kiosk



Services for the next billi

A complex ecosystem

The next billion

Solutions for the billion ecosystemnext billion

visionfor the next billion


Services to match with end-users needs

E-Government Health Care• Documentation• Job Searching • Taxes Collection

• Alerts / Reminders• Patient Surveillance• Prevention Campaigns• Taxes Collection

Mobile Banking

• Prevention Campaigns

Small Businessg• Payment / Cashing• Stock Exchange • Money / Credit transfers

• Local Advertising• Payment / Financing• Marketplace Integration• Money / Credit transfers

Education

• Marketplace Integration

Agriculture• Distance Learning• Content Distribution• Technical Training (troubleshoot)

g• Weather• Market Information• Commodities Prices


• Technical Training (troubleshoot) • Commodities Prices



A complex ecosystemThe

next billionSolutions for the

Services for thenext billion

visionfor the next billion

for the next billion


Find your new rolein the complex ecosystemin the complex ecosystem

Schools Operators Competence:Access: AffordabilityUniversities Vendors

Authorities

p• IT skills• Rural

coverage• Regulatory

environment

Affordability

Authorities

NGOs

• Political initiatives

Local

Health careproviders

ISPs Motivation:• E-government• Relevant and

l l

• Banking• Entertainment

L l

• Health care• EducationLocal

companies and entrepreneurs

Individual users

Banks local content

• Social media• Job information

• Local community commitment

• Buy/sell• Support

for small businesses

users

22 © Nokia Siemens Networks Mobile World Congress 2008, Barcelona22 © Nokia Siemens Networks

The vital role of multi-stakeholder cooperationPrivate sector

Affordable

Market expansion

Affordableconnectivity

Enabling Socio-economicPublic sector Enabling environment

Regulation & initiatives

Socio-economic benefits Consumers

ICT adoption

Income growth

& initiatives adoption

Social investment

Ci il i t


Civil society

Cooperation is needed to bring digital inclusion

What can the private sector do?• Focus on the total cost of ownershipp• Cost-effective end-to-end solutions• Affordable and innovative devices and services

What can governments and regulators do?• Independent regulator to foster healthy competition• Compliance with global technological standards• Imposing low or eliminating all taxes and duties• Imposing low or eliminating all taxes and duties

on mobile devices, network infrastructure equipment and servicesD li i l t f k th t f ilit t• Delivering a regulatory framework that facilitates convergence


Conclusion: Nokia Siemens Networks and the digital inclusion challengeand the digital inclusion challenge


• Innovate to serve new customersAdd b th l d b• Address both rural and urban communications needsGracias!

• Adapt technology to social needs• Make services affordable• Work with authorities


PresenterN ki Si N t kNokia Siemens Networks

Guillermo Wichmann


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