Life Goes Mobile

1
Life Goes Mobile
Fernando Terni Rio de Janeiro 5th of October, 2004
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Penetration in Western Europe
Source EMC, Sep04
3
Penetration in Latin America
Source EMC, Sep04
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Penetration by Income Segments in Latin America
Source Pyramid Research
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What Needs to be Done to Drive The Penetration Up?
500
430
400
276 mi subs
300
Mobile subscribers (millions)
200
156
100
0
Penetration 29
Penetration 80
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What Needs to be done by...

• Vendors (terminals infrastructure)
• Operators
• Regulator
• Government

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Entry terminals make it easier forsubscribers to
go mobile

• Range of terminals optimised for entry level
  users
• Affordability to match end-users ability to
  spend
• Voice-centric, easy-to-use products
• Simple messaging and selected value-adding
  features
• Visual attraction
• Support for keynetwork-efficiency features

8
Network solutions must becost-effective
Base station

• Savings in network costs
• Expanding footprint

• Same coverage
• New site types available
• Fast roll-out
• Savings in site costs

Microwave radio
No RF cables, only AC-power cable
No shelter, no air-conditioning
Nokia MSS GSM/EDGE and 3G
H.248 Sigtran
MGW
MGW
IP, ATM or TDM
A

• Very high capacity
• Site cost savings
• Transmission savings

Iu-CS
PSTN
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New distribution solutions for growthand lower
subscriber acquisition costs

• Prepaid reload values offered
• India, Bhartis AirTel USD 1.25
• Philippines, Smart USD 0.5
• Indonesia, Satelindo USD 2.4
• Electronic prepaid refill
• Reduced costs and dealer commissions
• Small (0.5 USD) prepaid recharging values
  possible
• Affordability increases usage
• Example Electronic prepaid refill
• SMART launched e-refill Load 2Q 2003
• Dealer numbers increase to gt400.000 by 1Q 2004
• Variety of new distribution channels
• Results
• 1Q 2004 2.8m transactions/day
• Subscriber growth is accelerating

Cost per USD 5 refill
Scratch card
E-refill
Voucher systemmanagement
Voucher printing logistics
Transaction cost
Source Asia-Pacific Wireless Analyst, Apr.2004
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Nokia Strategy
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What Needs to be Done by The Operators?

• Improved distribution
• Wide availability of small prepaid denominations
• Wide population coverage
• Drive data usage
• Affordable call charges and SMS tariffs
• ????

12
What Needs to be Done by The Regulator?

• Regulatory framework stability
• Enable healthy/fair competition
• Number of new licenses
• Price of new licenses
• Fair interconnection charges to enable affordable
  tariffs
• Flexibility to encourage increased coverage
• Speed-up certification process
• ????

13
What Needs to be Done by the Government?

• Political stability
• Reasonable taxation on mobile handsets and
  services
• ????