Nokia Siemens Networks Village Connection - bringing the benefits of affordable mobile access to rural communities
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
White paper
Nokia Siemens Networks
Village Connection –
bringing the benefits
of affordable mobile access
to rural communities
02/08 Nokia Siemens Networks Village Connection – bringing the benefits of affordable mobile access to rural communities
Contents
02 1. Executive overview
03 2. Introduction
1. Executive
overview
03 3. The benefits of mobile
communication
04 4. Technical solution
04 4.1 Network architecture
05 4.2 GSM Access points
05 4.3 Access centers
05 4.4 Flexible services The communications industry have a per month. This demands an
truly historic opportunity – over the effective way to keep the total cost
06 5. Business model coming years, the majority of the of mobile ownership below USD 3
06 5.1 The value network world will be connected using per month.
06 5.1.1 The subscriber mobile, wireless broadband and
06 5.1.2 The entrepreneur fixed broadband systems. As a Nokia Siemens Networks Village
06 5.1.3 The GSM operator result, in 2015: We will live in a world, Connection trials are underway in
06 5.1.4 The authorities in which five billion people are India to demonstrate that the
06 5.1.5 The solution vendor connected. People can use the necessary innovations in technology
07 5.1.6 Other mobile network services they want anytime, anywhere and business systems are ready to
operators with their preferred devices. meet this challenge.
07 5.1.7 Financiers
07 5.2 Alternative business models The global connected mobile The novel Nokia Siemens Networks
community is no longer confined to Village Connection network
07 6. Conclusions the world’s richest consumers, and architecture transfers responsibility
significant benefits will be brought to for local network and business
the people in developing countries. functions to a local level, building
In a typical developing country, cost-effective connectivity village by
an increase of 10 mobile phones per village. Established operators may
100 people boosts GDP growth by opt to employ local people to
0.6% (source: The impact of manage access within each village,
telecoms on economic growth in or local entrepreneurs may license
developing countries, Waverman, the mobile access rights for their
Meschi and Fuss, 2005). This surrounding area. Whichever option
macro-level benefit is the result of is chosen, capital costs are slashed
the many improvements – both large and operating costs are significantly
and small – that mobility brings to reduced compared with conventional
the everyday lives of individuals. network roll-outs.
Around half the world’s population The success of the trial Nokia
lives in villages and many of these Siemens Networks Village
people need access to mobile Connection deployment in India
communications in order to reap the demonstrates that the technology is
considerable economic and welfare ready to meet the challenge of
benefits that the technology brings. providing mobile access to low-
However, mobile operators need to income subscribers. In addition,
adopt innovative solutions to provide the Nokia Siemens Networks
access for these communities. Village Connection business model
will generally be self-sustaining in
The chief challenge is cost. While key emerging markets, although
today’s mobile customers in initial support may sometimes be
emerging markets typically spend required to jumpstart the business
between USD 7 and USD 10 per system.
month on mobile services, providers
seeking to access emerging rural
markets have to make mobile
connectivity affordable for people
who can spend just USD 2 or USD 32. Introduction
The enormous growth in mobile Challenge for the operators is to The Nokia Siemens Networks
services in the past few years has provide the service in an economically Village Connection initiative works
been largely confined to the 2.5 billion feasible manner. Research indicates on all three fronts with the aim of
mostly urban consumers world wide. that the M&S related costs can turning rural roll-outs into a lucrative
The challenge now lies in providing represent up to 30% of the total realistic business opportunity that will
affordable connectivity for the people operating expenditure (OPEX) in enable the mobile communications
living in rural areas. emerging markets. The site costs industry to provide rural customers
and operation and maintenance with an effective solution in the very
Around 3 billion people – or half the together generally represent 80% near term. The main innovation is
world’s population – live and work in of the total network operating done on the business model,
rural areas. Low incomes and lack expenditure in the emerging however technology and regulation
of infrastructure often leave them markets. (Source: Pyramid Research are needed to support it.
unable to enjoy the benefits of 2006, Low-cost Mobile Business
affordable access to people, Models, Strategies for the Profits
information and services. Affordable at the bottom of the Pyramid.) It is
communication technology therefore clear that in addition to addressing
plays a crucial role in advancing their the capital expenditure (CAPEX)
welfare and economic growth. pressure, there needs to be
innovation to address the different
Based on their relative income, OPEX elements in the value chain.
people in this segment of the
population are likely to spend around Three key areas must be addressed Nokia Siemens Networks Village
USD 2–3 per month at most on to successfully meet the USD 3 target. Connection is an innovative solution
mobile services, compared with an It requires innovative technologies to which enables operators to capture the
average monthly spend of USD 7–10 deliver low-cost solutions, novel
by the majority of existing users in business models for rural areas and rural market potential by offering voice
emerging markets. Mobile access the synthesis of a new value network and sms service to villages with relatively
with a total cost of ownership (TCO) to make the solution feasible. low investment.
of no more than USD 3 per month
will therefore be critical.
3. The benefits
of mobile communication
Mobile communications has proven of customers and business contacts.
to be the most effective way to Even a business with no office or
provide rural coverage. The high storefront can advertise its contact
volumes has lowered the cost of details using a simple roadside board,
technology down significantly and for instance. Farmers can call ahead
brought the technology available for to check which market will offer them
an increasing number of users. the best price for their crops, while
seasonal workers are just a phone
The documented macroeconomic call away at harvest time.
benefit of mobile communications is
the result of countless improvements Of course, the mobile businesses
that mobile access brings to the themselves also spur economic
everyday lives of individual customers. activity, with local franchisees or
entrepreneurs taking the opportunity
Local businesses and entrepreneurs to run their own mobile access
benefit from access to market businesses. In some regions, airtime
information, new business is already being traded as a new
opportunities and staying within reach form of currency.04/08 Nokia Siemens Networks Village Connection – bringing the benefits of affordable mobile access to rural communities
In rural areas, mobility can improve
healthcare by making it easier for
people to access professional help.
Better communication can also
4. Technical
improve more effective co-ordination
between healthcare professionals
working in the field, often in remote
solution
areas that would otherwise leave
them isolated. Specific health
initiatives are also possible, such as
using text messages to deliver test
results or reminders about taking
medication.
The benefits to education include The Nokia Siemens Networks 4.1 Network architecture
the mobile delivery of multimedia Village Connection solution is Network topology not only affects
materials to classrooms, as well as designed to provide a cost-efficient CAPEX but also directly impacts on
support for informal learning and addition to existing GSM networks, OPEX. A conventional hierarchy
knowledge sharing. Innovative effectively extending coverage increases network complexity and
training programs enable rural beyond the point at which a entails higher operating costs in
communities to develop the local conventional network roll-out would terms of deployment and
capabilities they need in order to be too expensive. In addition to maintenance, backhaul and utilities.
thrive. utilizing the interoperability and These costs may be acceptable in
usability of GSM technology, the urban deployments, where a large
While all these benefits are already Village Connection approach relies number of relatively high-spending
being felt in many parts of the world, on a network solution that users demand uninterrupted access
others have been excluded from significantly lowers the initial capital to all the latest mobile services.
the process because it has not expenditure and virtually eliminates However, they may render a
previously been possible to offer the operational expenditure typically conventional network uneconomical
them mobile access in a cost- associated with traditional wireless in sparsely populated, low-income
effective way. The affordable networks. This is particularly rural areas.
access opportunities provided by important in rural areas, where such
Nokia Siemens Networks Village costs are often amplified and
Connection are set to change all that. networks often serve small numbers
of low-paying subscribers.
Figure 1. Nokia Siemens Networks Village Connection architecture
AC1 MSC
GSM AP1
MS
Rest of the world
IP Network
AC2
GSM AP2
MS
Intra-village calls
Intra-AC calls
Inter-AC calls
Rest of the world calls
AP Access Point
GSM AP3 GSM
MS MS AC Access Center4.2 GSM Access points 4.3 Access centers
Each village typically hosts one GAP, The other component of the Nokia
which is an integrated local wireless Siemens Networks Village
access point comprising RF, power Connection solution is the AC, which
and IT hardware and software, aggregates traffic from various
all bundled into a compact unit. GAPs, switches calls between GAPs
and connects the Nokia Siemens
The Nokia Siemens Networks The GAP software runs on a PC Networks Village Connection
Village Connection solution has no that is connected to a GSM network to the existing GSM network.
hierarchical network structure. transmitter with an omni-antenna.
Instead it comprises village-level It is a plug-and-play module, which Each AC can support up to 200
GSM access points (GAPs) and can be installed and powered up GAPs or around 14,000 subscribers
regional access centers (ACs). easily. It needs no explicit within its Nokia Siemens Networks
The link between the GAP and commissioning or operations support Village Connection domain. It can
subscriber terminals is via GSM, from trained network personnel. interconnect with other networks
while the link between the GAPs and Each GAP can typically support up (such as the PSTN or PLMN) over
ACs is via IP. to 80 subscribers. Scaling in a given the A-Interface via MSC and optimize
area is achieved by the addition of backhaul and interconnection costs.
Call control has been shifted to the more GAPs or incremental TRX
edge of the network, with a GAP within the same unit. An IP link between the GAP and the
handling call completion within each AC provides tremendous flexibility in
village. Multiple GAPs aggregate to The plug-and-play nature of the the transmission media, which
an AC, which handles call GAPs, coupled with support for local could include point-to-multipoint
completion within its area (known as subscriber management WiMAX, microwave, fiber or satellite.
a Nokia Siemens Networks Village (provisioning, billing, and customer A Standard A interface is required
Connection domain). As this call support, for instance), enables a for AC-MSC connectivity.
control is now taking place in the local entrepreneur to host the GAP.
village, the AP host is able to Alternatively, an operator may 4.4 Flexible services
provide subscriber management engage personnel at the village level Bearing in mind the goal of providing
related tasks for the village area. to handle all network operation and mobile connectivity with a total cost
subscriber management functions of ownership of no more than USD 3
locally. This distributed management per month, the Nokia Siemens
model is critical to the viability of Networks Village Connection
rural roll-outs, since it eliminates solution supports basic voice and
the OPEX traditionally associated SMS services inside the village.
with wireless networks (network In addition to the village internal
operation and maintenance, billing, calls, the end-user is able to receive
customer care and so on). and make calls and SMSs to other
networks. This may be easily
expanded at any point to include a
range of value-added services
(VAS), including bringing cost-
effective Internet services to villages,
thanks to the IP link between the AC
and GAP.06/08 Nokia Siemens Networks Village Connection – bringing the benefits of affordable mobile access to rural communities
5. Business model
It is essential to create a successful
business model if affordable access Village Village Other
is to become a reality for rural Connection entrepreneur operators
subscriber Monthly fee (AP operator) (PLMN, PSTN)
subscribers. The Nokia Siemens
Networks Village Connection set-up Franchising
requires many players to work fee Roaming
together, some of whom will be charges,
termination
entering the mobile communication payments
value network for the first time. Financing
GSM
Each one must be able to sustain a entity Interest rate
operator
(MSC+AC)
viable business.
5.1 The value network CAPEX
AP, AC,
The success of Nokia Siemens backhaul,
Networks Village Connection terminals
Nokia Siemens
requires and enables a partnership Village
involving a range of stakeholders. Connection +
Nokia terminals
5.1.1 The subscriber
Affordability is the key for the Nokia Figure 2. Value network & business models
Siemens Networks Village
Connection subscriber in a village.
For many of these subscribers,
Nokia Siemens Networks Village
Connection provides their only
realistic way of accessing the
benefits of mobility, in terms of
business and social opportunities,
education and healthcare. the village from a traditional GSM In the past, the cost of conventional
operator. This GAP operator would network roll-outs has proved to be
Each subscriber can choose be responsible for the operation an insurmountable barrier for
between various call plans, including and maintenance of the equipment, GSM operators seeking to access
local-only options and those village-level demand aggregation low-income rural subscribers.
offering external Nokia Siemens (subscriber acquisition), sale/lease Nokia Siemens Networks Village
Networks Village Connection of terminals to local subscribers Connection effectively removes this
domain connectivity and roaming. and handling basic customer barrier and opens up an entirely
The ideal charging model is flat fee management functions, including new market for operators, whether
(although duration-based billing provisioning and billing. they opt to franchise local
could also be supported) for traffic operations or employ local people
within the Nokia Siemens Networks In the “Managed GAP” model, to manage them.
Village Connection domain, with the GAP is owned by the traditional
duration-based charges applied GSM operator, but local employees 5.1.4 The authorities
when calling outside the village. or entrepreneurs would run local Statutory bodies may include the
Both post and pre-paid billing are operations for a salary or fee. licensor and/or the regulator
possible. responsible for licensing and
5.1.3 The GSM operator spectrum allocation. In addition to
5.1.2 The entrepreneur The GSM operator aggregates traffic standard operating terms, the license
For the first time, the Nokia Siemens from various village entrepreneurs. is also likely to specify conditions
Networks Village Connection model Operator is responsible for and responsibilities relating to the
gives local people the opportunity channelling the traffic between assignment of spectrum and sub-
to host their own mobile access different villages as well as for the contracting of last-mile operations
point. This represents a potentially provisioning of external world to third parties.
lucrative business opportunity, connectivity to Nokia Siemens
and the village entrepreneur or Networks Village Connection 5.1.5 The solution vendor
franchising business is an entirely subscribers. The Nokia Siemens Networks
new player in the value network. Village Connection solution vendor
Depending on the regulatory supplies the network infrastructure
In the “Hosted GAP” model, a village position and frequency ownership, and subscriber terminals, either to
entrepreneur, or GAP operator, the GSM operator may continue to the GSM operator or directly to the
owns and operates the GAP and has maintain a control point in this value village entrepreneur.
been assigned the frequency and chain because of the ownership of
franchised the rights to operate in spectrum rights.For GSM operators, the Nokia 5.2 Alternative business models
Siemens Networks Village In simple terms, there are two
Connection solution vendor could business models, as follows:
supply a bundled package of the
AC and a number of GAPs. Each 1. Franchise model. In this option,
GAP would be bundled with a the traditional GSM operator would
number of mobile handsets. While franchise out operating and
variations are possible, in the early frequency rights for rural regions in
stages it is expected that a typical its license area. The franchisees
AC package would contain about would own and manage the APs and Nokia Siemens
200 GAPs and 6,000 mobile interconnect with the GSM operator Networks Village
handsets (30 handsets per GAP). for external connectivity to other
villages or to the rest of the world. Connection enables
5.1.6 Other mobile network operators Within the village the GAP operator innovative business
Other networks exchange traffic
with the Nokia Siemens Networks
would be responsible for the
operation and maintenance of the
models for rural
Village Connection connected to the equipment, village-level subscriber villages.
GSM network and negotiate related acquisition, sale/lease of terminals to
settlement payments. local subscribers and handling basic
customer management functions,
5.1.7 Financiers including provisioning and billing.
Although the Nokia Siemens
Networks Village Connection model 2. Traditional GSM operator
is designed to be self-sustaining, extension. Nokia Siemens Networks
initial financial input from investors Village Connection architecture
may be needed in some cases to provides the traditional GSM operator
get the system up and running in the with the possibility of using their
first place. frequency in areas that they could
not viably address using traditional
Venture capitalists and micro-finance GSM infrastructure. For these
entities may be involved in financing operators, Nokia Siemens Networks
the purchase of terminals, GAP or Village Connection is a low-cost
AC equipment at the Nokia Siemens extension of their existing GSM
Networks Village Connection network. This approach could also
subscriber, or GAP operator level. be termed the managed GAP model.
6. Conclusions
Mobile access can deliver significant to the value network for the first time.
economic and welfare improvements The novel architecture of the solution
to people on low incomes in rural makes this possible by distributing
communities. However, the costs call and subscriber management
associated with deploying and functions throughout the Nokia
operating conventional mobile Siemens Networks Village
networks have prevented many Connection network at a local level.
communities from accessing these
benefits before now. Innovative This effectively reduces CAPEX and
technologies and business models are eliminates much of the OPEX
needed if the mobile community is to associated with traditional network
embrace lower-paying subscribers. operations.
The Nokia Siemens Networks Early trials indicate that the Nokia
Village Connection initiative clearly Siemens Networks Village
demonstrates that workable, cost- Connection business model and
effective solutions are available. technology should provide an
In addition to the many generic affordable solution that is a stepping
benefits provided by mobile access, stone for providing additional mobile
the Nokia Siemens Networks Village connectivity for rural villages. Nokia
Connection approach promotes Siemens Village Connection is
economic growth by introducing strongly contributing to the target of
local entrepreneurs and franchisees 5 billion people connected in 2015.Nokia Siemens Networks Corporation P.O. Box 1 FI-02022 NOKIA SIEMENS NETWORKS Finland Visiting address: Karaportti 3, ESPOO, Finland Switchboard +358 71 400 4000 (Finland) Switchboard +49 89 5159 01 (Germany) Copyright 2007 Nokia Siemens Networks. All rights reserved. Code: 11486 – 04/2007 Indivisual/Libris www.nokiasiemensnetworks.com
You can also read
