Description
The ppt explaining Spectrum and the reasons for it causing a split in the telecom industry.
Spectrum Storm: Industry Split
Generations
?
?
? ?
‘G’s refer to generation of cellular technology 1G - brick sized phone – 1944, Mobile telephony only 2G - Data transfer: 9.6kbps 2.5G - Internet connectivity by WAP, GPRS and EDGE
What is spectrum?
? ?
Airwaves TDMA, FDMA, CDMA, GSM
Why more spectrum?
Third Generation – ‘3G’
? ?
?
? ? ?
High data transfer speed- 384kps Capacity to transfer videos 10-15 times the current speed. Facilitates checking of bank account, transfer of funds and payment of bills. Opportunity to increase ARPU WCDMA, VoIP, EDGE, CDMA 2000 Social initiative like e-Education, Telemedicine, e-Governance
Spectrum Management
? ? ?
WPC – Wireless planning and coordination License Fee, Royalty, Revenue Sharing Auction or ZERO fee?
?
Auction – Ratan Tata
? ?
Scarce resource Entry barrier Experience of past Auctions Cost to the customer
?
Free – Sunil Mittal
? ?
Alternative 1 – FREE Spectrum
?
Pros:
? ?
Less burden on end user Utilizing resources on infrastructure
?
Cons:
?
?
Inefficiency Deterrent for new player
Alternative 2 – Auction
?
Pros:
? ?
Revenue for government Skimming of sub-potential players
?
Cons:
?
?
Experience of past Auctions Cost to the customer
Porter’s 5 force model
?
Threat of new Entrants: Low
? ? ?
? ?
Substitute: VOIP and other options Buyer’s power: Moderate
? ?
High entry barriers Regulations and restrictions Prompt reaction to any new commercial move
?
Supplier power: High
? ?
Switching cost Volume purchase
?
Competitors: Intense rivalry
? ?
Infrastructure from Network solution providers Regulatory approvals Low price leadership Differentiation in VAS and Focus
Alternative 3 – Omnipotent model
? ? ? ? ?
?
Spectrum rationalization policy One shot two targets Increase rural penetration Proportionate spectrum licensing Spectrum utilization factor as performance merit Merit – determines exact revenue share percentage
Thank you
doc_728277543.ppt
The ppt explaining Spectrum and the reasons for it causing a split in the telecom industry.
Spectrum Storm: Industry Split
Generations
?
?
? ?
‘G’s refer to generation of cellular technology 1G - brick sized phone – 1944, Mobile telephony only 2G - Data transfer: 9.6kbps 2.5G - Internet connectivity by WAP, GPRS and EDGE
What is spectrum?
? ?
Airwaves TDMA, FDMA, CDMA, GSM
Why more spectrum?
Third Generation – ‘3G’
? ?
?
? ? ?
High data transfer speed- 384kps Capacity to transfer videos 10-15 times the current speed. Facilitates checking of bank account, transfer of funds and payment of bills. Opportunity to increase ARPU WCDMA, VoIP, EDGE, CDMA 2000 Social initiative like e-Education, Telemedicine, e-Governance
Spectrum Management
? ? ?
WPC – Wireless planning and coordination License Fee, Royalty, Revenue Sharing Auction or ZERO fee?
?
Auction – Ratan Tata
? ?
Scarce resource Entry barrier Experience of past Auctions Cost to the customer
?
Free – Sunil Mittal
? ?
Alternative 1 – FREE Spectrum
?
Pros:
? ?
Less burden on end user Utilizing resources on infrastructure
?
Cons:
?
?
Inefficiency Deterrent for new player
Alternative 2 – Auction
?
Pros:
? ?
Revenue for government Skimming of sub-potential players
?
Cons:
?
?
Experience of past Auctions Cost to the customer
Porter’s 5 force model
?
Threat of new Entrants: Low
? ? ?
? ?
Substitute: VOIP and other options Buyer’s power: Moderate
? ?
High entry barriers Regulations and restrictions Prompt reaction to any new commercial move
?
Supplier power: High
? ?
Switching cost Volume purchase
?
Competitors: Intense rivalry
? ?
Infrastructure from Network solution providers Regulatory approvals Low price leadership Differentiation in VAS and Focus
Alternative 3 – Omnipotent model
? ? ? ? ?
?
Spectrum rationalization policy One shot two targets Increase rural penetration Proportionate spectrum licensing Spectrum utilization factor as performance merit Merit – determines exact revenue share percentage
Thank you
doc_728277543.ppt