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TD-LTE: The View from India

Stephen Hire General Manager, India Aeroflex

6/15/2012

Aeroflex Company Confidential

www.aeroflex.com

Topics
Where we are today A brief history of TD Current status in India Current status in China Market trends Drivers for TD-LTE Standardisation The march of TD-LTE

The impact Why did India go TD-LTE? Indias advantages Enter the entrepreneurs

Conclusions TDD and FDD Still a green field India should be on your radar

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Where we are today

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A brief history of TD technology


2011 First networks launch 2010 Field trials commence in China

GLOBAL

December 2007 TD-LTE project commences

2012 7 commercial networks

19982000

2001

2005/06

2007

2009

2010

2011

2012

May 2000 TD-SCDMA approved by ITU as 3G standard

April/July 2001 First voice (April) and data (July) calls made on TDSCDMA network

CHINA

2005/6 Live network testing commenced

January 2009 China Mobile granted licence

April 2012 TD-SCDMA reaches 61m subs

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India market status

Licences Launches Key statistics

Infotel Broadband, Aircel, Bharti Airtel, Qualcomm, Tikona, BSNL, MTNL Bharti Airtel first (Kolkata and Bangalore) Aircel and Infotel next Wireless penetration: 74% Fixed broadband penetration: ~9% Wireless ARPU: US$1.3-1.7

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China market status

Licences Launches Key statistics

Not yet China Mobile, China Unicom, China Telecom Not yet and no spectrum either Forecast: 2014-15 Wireless penetration: 76% (12% for 3G) Fixed broadband penetration: ~40% Wireless ARPU: US$9.6

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Market trends

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Drivers for TD-LTE

Global Technology Marketing Competitive

Spectrum scarcity Data growth SDR radios 3GPP standardisation

Global TD Initiative (GTI)

WiMAX progress and ease of switching Common TD elements

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Standardisation

TD-LTE and LTE FDD have greater commonality than TD-SCDMA and WCDMA

Standards reduced technical hurdles, reduced barriers to entry and increased economies of scale
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TD-LTE in 2009

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TD-LTE in 2012

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The impact

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Why did India go TD-LTE?

Demand Economies of scale Interoperability Momentum

Still low demand for data but mobile will be broadband of choice Low ARPUs Rapidly maturing technology; except devices

Operators are likely to get FDD spectrum

Powerful operators behind the standard

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Indias advantages

Established IT industry

Structural
Large population Experiment at home before going global

Entrepreneurial culture

Innovative
Why low ARPUs can be good for you

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Enter the entrepreneurs

Track record Opportunities Market niches

Indian companies have a long history of taking advantage of technology shifts Applications space Data is becoming ubiquitous Consolidation of the major vendors creates space for differentiated offerings

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Conclusions

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TDD and FDD

Drivers TD is core LTE

Market reach Commercial use of SDR Standardisation No longer a Chinese offshoot

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We are only just beginning

Mobile will be the internet of choice

A green field
New market entrants: IT services, non-traditional players and start-ups

Spectrum, data and low ARPUs

Pressures
When will we get the $50 smart phone?

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If India is not on your radar it should be

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6/15/2012

Aeroflex Company Confidential

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