Teletimes April 2011.pdf
Teletimes April 2011.pdf Teletimes April 2011.pdf
planning and optimization to ensure excellent quality of service is experienced by the users. The introduction of appropriate handsets with relevant applications and services that provide value to the subscribers would be the key for the 3G uptake. TT - What do you think will be the best way for the operators to increase the ARPU with 3G / 4G network deployments? RK - As I mentioned earlier, although the recent price wars amongst operators have severely affected the operators’ ARPUs, there is definitely willingness on consumers part to pay more for the data services. The data ARPU for operators who have deployed CDMA EV‐DO networks in Pakistan are enjoying far greater ARPU levels which are a very clear indication of the affordability and desire f the Pakistani customer to use data centric services. However, this can only be achieved on platforms capable of offering mobile broadband access. TT - With GSM dominating the current telecom landscape, don’t you feel scarce availability of the 3G mobile handsets would be another issue? RK - Good question. GSM growth has been excellent in the recent past, but every technology has a life span and same is the case with GSM just like AMPS and TDMA which were replaced by GSM. 3G handsets have been in circulation in Pakistan for quite some time even though there is no 3G network as they are all backward / forward compatible. These handsets are being used as 2G / GSM handsets in the absence of 3G networks. However, these are higher tier handsets and the primary concern is to entertain low and mid tier consumers which constitute the major chunk of the operator’s subscriber base and have lower affordability. Over the last few years, Qualcomm has been continuously investing in R&D to develop 3G devices which can be afforded by the masses. The price differential has significantly reduced in the last couple of years and continues to come down as 3G handset shipment take over the 2G handset shipments globally. 3G handsets are now becoming available at a very affordable price point for the Pakistani consumer base that would the target or the 3G services. The operators have already started introducing lower cost 3G handsets that are based on Android platform offering consumers a huge variety of applications and services. A GSM growth has been excellent in the recent past, but every technology has a life span and same is the case with GSM just like AMPS and TDMA which were replaced by GSM. lot of local brands have been introduced in Pakistan which offer wide range of features at very low prices. Qualcomm has been enabling its licensees / OEMs to produce mass market 3G devices which have started to become commercially available. There are opportunities for local investors to start exploring local assembly of 3G devices leading to eventual manufacturing pants in Pakistan. Mass production of these devices along with elimination of custom duties will aid in achieving economies of scale which can help in bringing the costs down further. While initially it may seem like a daunting task but it can be implemented in steps and with appropriate planning. To jump start the process, one way is to initiate local assembly with the help of established and experienced OEMs. A lot of regional OEMs which are Qualcomm licensee have visited Pakistan and offered support in this regard. Necessary steps can also be taken at the government level to facilitate this approach, an example of that may include reduction / elimination of taxes and subsidizing products, maybe with the help of USF, that are locally assembled / manufactured and provide mobile broadband connectivity. Additionally, some other approaches like Advertising models can also be used to subsidize the device and the service costs to the consumer. TT - While you have covered all question marks circling Pakistan’s road to 3G, based on our personnel experience a small segment of the industry is of the opinion that the country should delay or bypass 3G and move directly to 4G since it offers higher data through puts. What would be your take on this? 15Apr - 14May 2011 www.teletimesinternational.com 35
RK - In addition to what I have described above regarding the 3G versus 4G issue, we see LTE as a complimentary technology to address growing data demand. In addition to requiring the spectrum in which LTE devices are available and the need for much bigger chunks of spectrum to acieve performance improvement, the device costs and affordability would be a key consideration for Pakistan. Until we see economies of scale for LTE, the device prices will be significantly higher than 3G for the years to come as they are based on high end multimode chipsets and definitely be out of range for the majority of the consumer base in Pakistan. TT - On a separate note since Qualcomm is the preliminary body behind the development of CDMA technology, our WLL operators which are mainly operating on CDMA and currently not flourishing to the expected level, what kind of support is QUALCOMM offering in this area? RK - It is true that the CDMA WLL networks have not enjoyed the same growth as GSM. This is unfortunately due to regulatory restrictions on CDMA networks and devices, and not technology limitations, which have restricted the growth. Recently, PTCL has launched the latest version of CDMA EVDO Rev. B, capable of offering data speeds up to 9.3 Mbps, which is almost 10 times faster than any other technology deployed in the country. This service, branded as evo Nitro is enjoying rapid growth and the Pakistani consumer is finally able to enjoy true broadband. Voice has become a commodity now and the consumer is demanding mobile broadband data. To maximize the utility of existing CDMA/EVDO platforms, the principal requirement is the introduction of CDMA data terminals. Qualcomm is actively supporting the CDMA ecosystem and has recently assisted operators in implementing the OMH initiative in cllaboration with the GHRC (Global Handset requirement for CDMA) team, which is a CDG (CDMA development group) component, to make it easy for the consumers to buy, upgrade and replace their CDMA based devices. TT - Talking about High speed mobile data applications, if I were to ask you to pick one service which you feel can revolutionize or make an immediate impact, what would that be? RK - There is no ‘one killer app’ for all mobile customers as I see it. In my view, “data” itself is a killer app, over which a very wide range of high speed mobile data services are offered. These services do exceptionally well where 3G has been launched. The range of applications are wide and varied to include mHealth, Education, Entertainment, Gaming, eCommerce, eGov, Location based services, etc. In the very near future, we will have “Internet of Everything”, which represents the next era of networking and computing, where everything will be connected through advanced wireless technologies, sensors, and applications which will enable real time exchange of information. All key market segments like Consumer Electronics, Transportation / Telematics, Smart Grids / Meters, Home and Commercial building, Wireless Health, Asset Tracking & Security, Video Surveillance, Vending machines, ATMs, will be connected intelligently and wirelessly. The mobile networks will be at the heart of this information exchange and will need to provide the high speed data bandwidth to carry all this traffic. To be able to bring Pakistan at par with the other nations and offer these services to the Pakistani consumers, we need to proceed faster and deploy mobile broadband networks, otherwise Pakistan will be left far behind in the technology race. TT - One last question, how has Qualcomm contributed towards educating and assisting the local telecom community? RK - In addition to all the above, Qualcomm has been assisting the industry in providing awareness about the technology evolution by supporting seminars, workshops and other initiatives. We have also set up one of a kind 3G training centre in collaboration with the Central Asian Cellular Forum and the IQRA Univerity that not only caters to the telecom needs of the country but the region. This is a true example of Industry Academia relationship. We are also facilitating the development of the entire mobile broadband ecosystem with active engagement with the IT professionls and the application developers / service providers who develop mobile applications that have applicability for both the local and the international markets. We have also introduced our OEMs to the local operators and distributors that offer innovative and affordable 3G products that uit the needs of the Pakistani consumer. TT - Thank you for your time and sharing your views with our readers. RK - Thank you. It was indeed a pleasure! T 36 www.teletimesinternational.com 15Apr - 14May 2011
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planning and optimization<br />
to ensure excellent quality of<br />
service is experienced by the<br />
users.<br />
The introduction of appropriate<br />
handsets with relevant<br />
applications and services that<br />
provide value to the subscribers<br />
would be the key for the 3G<br />
uptake.<br />
TT - What do you think will be<br />
the best way for the operators<br />
to increase the ARPU with 3G /<br />
4G network deployments?<br />
RK - As I mentioned earlier,<br />
although the recent price wars<br />
amongst operators have severely<br />
affected the operators’ ARPUs,<br />
there is definitely willingness<br />
on consumers part to pay<br />
more for the data services. The<br />
data ARPU for operators who<br />
have deployed CDMA EV‐DO<br />
networks in Pakistan are<br />
enjoying far greater ARPU levels<br />
which are a very clear indication<br />
of the affordability and desire<br />
f the Pakistani customer to use<br />
data centric services. However,<br />
this can only be achieved on<br />
platforms capable of offering<br />
mobile broadband access.<br />
TT - With GSM dominating<br />
the current telecom<br />
landscape, don’t you feel<br />
scarce availability of<br />
the 3G mobile handsets<br />
would be another<br />
issue?<br />
RK - Good question.<br />
GSM growth has<br />
been excellent in the<br />
recent past, but every<br />
technology has a life span<br />
and same is the case with<br />
GSM just like AMPS and<br />
TDMA which were replaced<br />
by GSM.<br />
3G handsets have been in<br />
circulation in Pakistan for quite<br />
some time even though there is<br />
no 3G network as they are all<br />
backward / forward compatible.<br />
These handsets are being<br />
used as 2G / GSM handsets in<br />
the absence of 3G networks.<br />
However, these are higher<br />
tier handsets and the primary<br />
concern is to entertain low<br />
and mid tier consumers which<br />
constitute the major chunk<br />
of the operator’s subscriber<br />
base and have lower<br />
affordability.<br />
Over the last few<br />
years, Qualcomm has<br />
been continuously<br />
investing in R&D<br />
to develop 3G<br />
devices which can<br />
be afforded by<br />
the masses. The<br />
price differential<br />
has significantly<br />
reduced in the last<br />
couple of years and<br />
continues to come down<br />
as 3G handset shipment take<br />
over the 2G handset shipments<br />
globally. 3G handsets are now<br />
becoming available at a very<br />
affordable price point for<br />
the Pakistani<br />
consumer<br />
base that would the<br />
target or the 3G services.<br />
The operators have already<br />
started introducing lower cost<br />
3G handsets that are based<br />
on Android platform offering<br />
consumers a huge variety of<br />
applications and services. A<br />
GSM growth has<br />
been excellent in the recent<br />
past, but every technology has<br />
a life span and same is the case<br />
with GSM just like AMPS<br />
and TDMA which were<br />
replaced by GSM.<br />
lot of local brands have been<br />
introduced in Pakistan which<br />
offer wide range<br />
of features<br />
at very<br />
low prices. Qualcomm has been<br />
enabling its licensees / OEMs to<br />
produce mass market 3G devices<br />
which have started to become<br />
commercially available.<br />
There are opportunities for local<br />
investors to start exploring local<br />
assembly of 3G devices leading<br />
to eventual manufacturing<br />
pants in Pakistan. Mass<br />
production of these<br />
devices along with<br />
elimination of<br />
custom duties will<br />
aid in achieving<br />
economies of<br />
scale which can<br />
help in bringing<br />
the costs<br />
down further.<br />
While initially it<br />
may seem like a<br />
daunting task but it<br />
can be implemented in<br />
steps and with appropriate<br />
planning.<br />
To jump start the process,<br />
one way is to initiate local<br />
assembly with the help of<br />
established and experienced<br />
OEMs. A lot of regional OEMs<br />
which are Qualcomm licensee<br />
have visited Pakistan and<br />
offered support in this regard.<br />
Necessary steps can also be<br />
taken at the government level<br />
to facilitate this approach, an<br />
example of that may include<br />
reduction / elimination<br />
of taxes and subsidizing<br />
products, maybe with<br />
the help of USF, that<br />
are locally assembled<br />
/ manufactured and<br />
provide mobile broadband<br />
connectivity.<br />
Additionally, some other<br />
approaches like Advertising<br />
models can also be used to<br />
subsidize the device and the<br />
service costs to the consumer.<br />
TT - While you have covered<br />
all question marks circling<br />
Pakistan’s road to 3G, based<br />
on our personnel experience a<br />
small segment of the industry is<br />
of the opinion that the country<br />
should delay or bypass 3G and<br />
move directly to 4G since it<br />
offers higher data through puts.<br />
What would be your take on<br />
this?<br />
15Apr - 14May 2011<br />
www.teletimesinternational.com<br />
35
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