Qualcomm Innovator Challenge

Location-Based-Service in India using 3G CDMA and GPS technologies

Market Trends

Service Promotion

Cost Structure

Existing Market Competition

Technology Requirements

Evaluation of Policies

Business Base

Submitted By: Geetika Varshneya Manoj Kumar Paras M.Tech(Apparel Production) NIFT, Bangalore, INDIA

What is the Global Positioning System?

Department of Defense developed, worldwide, satellite-based radio navigation system Consists of 24 operational satellites Provides specially coded satellite signals that can be processed in a GPS receiver, enabling the receiver to compute position, velocity and time Four GPS satellite signals are used to compute positions in three dimensions and the time offset in the receiver clock Satellites Each GPS satellite orbits the Earth twice a day Each satellite transmits signals to Earth GPS receivers measure the time between when satellites sent a signal relative to the GPS receiver receiving the signal Tells how far away the satellite is Signals from several satellites will give accurate results

What is 3G CDMA?
Spread spectrum modulation Originally developed for the military Resists jamming and many kinds of interference Coded modulation hidden from those w/o the code All users share same (large) block of spectrum One for one frequency reuse Soft handoffs possible Almost all accepted 3G radio standards are based on CDMA CDMA, W-CDMA and TD-SCDMA 3rd Generation Partnership Project Two Separate organization, as 3GPP closely tied to GSM and UMTS Goal of ultimate merger (3GPP + 3GPP2) remains The third generation of digital wireless technology, which supports rich media such as video clips. It started in 2001 in Japan, and reached Europe in 2002 and the United States in 2003.

Technology
Increased talk time Superior Power Control Lowest radiation level Hi-Speed Internet Access India has less than 0.4% penetration CDMA1x handsets (140 kbps) Most successful 3G Tech CDMA2000 controls 85% of the Worlds 3G market Adds 15 million new users per quarter Worldwide Better Voice & Consistent Quality Advanced platform supporting innovative applications GSM 3G evolution relies on CDMA

Hence CDMA choice for the 3rd generation!

Applications & Advantages of GPS Monitoring

Applications Detention
to ensure that offenders remain in a designated place during curfew

Advantage
Reduced prison populations Cost savings Offenders may remain employed Offenders keep contact with families Negative psychological effects of prison avoided Improved chance of rehabilitation of offenders

Restriction
to prevent offender entering restricted area, eg when under a restraining order

Surveillance
continuous tracking without restriction of movement, eg for asylum seekers

3G CDMA Advantage
Valuable Spectrum: Operation in the 450 MHz, 800 MHz and 1900 MHz bands Excellent RF propagation characteristics: Signals can travel longer distances Fewer base stations are needed to cover wider areas Network investment and operating costs are significantly reduced A 3G technology: An excellent performance & value proposition Spectrally efficient and mature technology: Economically supports toll-quality voice, and always-on broadband data, and multimedia services Unmatched network capacity and coverage Up to 168 users (155 Erlangs) of voice traffic per 5MHz sector/carrier 1 - More than 4 times GSM 2 Up to 3.1 Mbps peak data rate per user - More than 20 times that of an EDGE network 3 Improved security and privacy SSL 3.0 with 128 bit key encryption and support of digital signatures through public key infrastructure No eavesdropping, less static and interference Numerous value-added services designed to increase operator revenue An easy migration path and robust roadmap towards next generation services, that preserves your investment

GPS Market
Accurate quality maps are a pre-requisite to start a navigation boom 2003: Central Europe 2005: Scandinavia 2006: Eastern Europe 2007: Australia & Middle East 2008: India The best navigable maps cover already 20 metropolitan regions in India Maps and navigation are now available for a majority of the mobile phone users The latest local maps enable good quality location-aware services Detailed coverage from 160 cities in India Navigation in around 20 metropolitan areas

3G CDMA Existing Market

Stake in Existing Market : BHARTI (10%) Technology relied upon : GSM (Larger service range in India) Total Investment : 1.5 billion USD Analyzing the predicted Market Revenue Trends, expected Break Even Period for Vodafone February 2008 Our Target Break Even before

Current Position of Reliance in market - 20.3 % of the subscriber population - Largest CDMA provider in India
Collaboration with Reliance! Customer Base
0-4 5to14 15-19 20% 20-24 25-34 35-44 11% 16% 10% 55-59 60&above 45-54 10%

Population Count in 2006(millions)

4% 9% 7%

13%

- 54% of the population is below the age of 241 - Estimated youths annual spending US$10.5 billion1

Targeting the Youth Section! Launching the service on Valentines Day!

Cost Structure
Total Reliance Young Reliance Revenue = Estd. Subscriber RelianceAvg Packet Customers Normal Revenue + 3GInternet Accessing Revenue Consumption

Packet wise Charge (C) per month (APC) billing

D ec 07

F eb 06

50p for Following Reliance 54%1 Target Customer Billing 5 Japans estimate Young Customer Base 20.3% of each 128 Structure = D e c 7= 7.82 APC=8192(1MB) 38.54.22 0million Mn Mn Bytes 6packet A R P U ( t ) v p o p ( t ) .d t  C v A P C v 0 . 3 6 v p o p ( t ) .d t
F eb 06

Target Break even December 2007

COMPUTATION STEPS

Estimated Breakup of Expenses

Large Profit Margin
Estimated cost for infrastructure, planning services, site civil works (based on other countries statistics)

106.4 billion INR

Licensing fees, sales and marketing cost (26% of the acquired revenue)
Feb, 2006

7.49 Dec, 2007

billion INR

Total Expense (Approx)

Estd. Revenue Earned 143 billion

115 billion INR

Service Promotion

Market Trends

Cost Structure

Existing Market Competition

Thank You!

Technology Requirements

Evaluation of Policies

Business Base