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Qualcomm Innovator Challenge

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

Submitted By:

Geetika Varshneya

Manoj Kumar Paras

M.Tech(Apparel Production)

NIFT, Bangalore, INDIA

Service

Promotion

Market

Trends

Existing

Market

Competition

Business

Base

Evaluation

of Policies

Cost

Structure

Technology

Requirements

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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 s

hare s

ame (l

arge) block of spect

rum One fo rone 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 tiedto GSM and UMTS

Goal of ultimate merger(3GPP + 3GPP2) remains

The third generation of digital wireless technology, which supportsrich media suchas video clips. It started in 2001 in Japan, andreached Europe in 2002 and the United States in 2003.

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Increased talk time

SuperiorPowerControl

Lowest radiation level

Hi-Speed Internet Access

Indiahas 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 perquarterWorldwide

BetterVoice & Consistent Quality

Adva

nced pla

tform suppo

rting innov

ative

applic

ations GSM 3G evolution relies on CDMA

Technology

Hence CDMA choice for the 3rdgeneration!

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3G CDMA Advantage

Valuable Spectrum: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:A 3G technology: An excellent performance & value proposition

Spectrally efficient and mature technology:

Economically supports toll-quality voice, and always-on broadband data, andmultimedia services

Unmatched network capacity and coverage

Up to 168 users (155 Erlangs) of voice traffic per 5MHz sector/carrier1 - Morethan 4 times GSM 2

Up to 3.1 Mbps peak data rate per user - More than 20 times that of an EDGEnetwork 3

Improved security and privacy

SSL 3.0 with 128 bit key encryption and support of digital signatures throughpublic 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, thatpreserves your investment

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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

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3G CDMA Existing Market

Stake in Existing Market :

Technology relied upon :

Total Investment :

Analyzing the predicted Market RevenueTrends, expected Break Even PeriodforVodafone

BHARTI (10%)

GSM (Larger service rangein India)

1.5

billion USD

Our Target Break Even before

February

2008

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Current Position ofReliance in market

- 20.3% of the subscriber population

- Largest CDMAprovider in India

- 54% of the population is

below the age of 241

- Estimated youths annual

spending

US$10.5

billion1

Population Count in 2006(millions)

10%

20%

11%

10%16%

13%

9%

4%7%

0-4

5to14

15-19

20-24

25-34

35-44

45-54

55-59

Collaboration with Reliance!

Targeting the Youth Section!

Launching the service on Valentines Day!

Customer Base

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Cost Structure

50p for

each 128

Bytes packet

Billing

Structure

Following

Japans estimate5

APC=8192(1MB)

Reliance Customer

Base 20.3% of

38.5 Mn6= 7.82 Mn

Target 54%1

Young Customer

= 4.22 million

Total Reliance

Revenue =

Normal Revenue + 3G Revenue

Young Reliance

CustomersReliance Subscriber

Accessing Internet

Estd. Avg Packet

Consumption

per month (APC)Charge (C)Packet wise

billing

0 7 0 7

0 6 0 6

( ) ( ) . 0 .3 6 ( ) .

D e c D e c

F e b F e b

A R P U t p o p t d t C A P C p o p t d t v v v v

Target Break even

December 2007

COMPUTATION STEPS

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Estimated Breakup of Expenses

Estimated cost for infrastructure, planning services, site civil works

(based on other countries statistics)

106.4 billion INRLicensing fees, sales and marketing cost

(26% of the acquired revenue)

7.49 billion INR

Total Expense (Approx)

115 billion INR

Feb, 2006 Dec, 2007

Estd. Revenue Earned

143 billion

Large Profit Margin

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ThankYou!

Service

Promotion

Market

Trends

Existing

Market

Competition

Business

Base

Evaluation

of Policies

Cost

Structure

Technology

Requirements