1. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Challenges for Successful Implementation of ICT Projects Policy and Regulatory Challenges - Technology Providers View - February 14

2. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Developing Nations and Telecoms Better Telecommunications Higher GDP Typically 1 Fixed line PTT and 2 Mobile (GSM) Carriers –Wireline deployment limited to Metro areas Long waiting lists –Low GSM penetration – typically due to higher costs –Duopolistic price setting further limits penetration Regulators Seek to Improve Penetration, and Maximize Existing Assets –Additional licenses intended to spur competition increased penetration –Utilization of existing assets drives GSM-specific tenders –3 rd, 4 th, 5 th … Licensees have a very challenging business case: Incumbents have captured high-ARPU subs New licensee(s) forced to target lower-ARPU users If technology specified (say, GSM) Little room to improve costs Break-Even Monthly ARPUs: GSM - ~$12; CDMA - $7 Need to encourage technology which offers lower costs, and can thereby support lower ARPUs Increased Penetration

3. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Regulatory Challenges in Improving Telecoms Ensuring Technology Neutrality Responsibility for Efficient Use of Radio Spectrum Promoting Consolidation with Existing Telecoms Infrastructure Defining Fixed Wireless vs. Limited Mobility Enabling Convergence Role of Regulators – Very Crucial

4. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Spectrum availability dictates technology choice –Appropriate spectrum enables innovative/different technology selection –Spectrum efficiency and 3G data benefits should be leveraged –Economies of scale should be leveraged No Specification of Technology –Let the Best Business Case Win –Limited Specification of Spectrum Allocation Plans Technology Neutrality Choice of Technologies Enables Cost-Effective Telecoms Access

5. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Consider Spectral Efficiency Requirements –No. of subscribers per 5 MHz Reasonable Licensing Fee –License Fees on per MHz Basis in Blocks of 5 or 10 MHz –Fees independent of technology Re-Examination of Spectrum Usage –Explore Key spectrum blocks (e.g., 800 MHz, 450 MHz) for possible reallocation/sharing based on actual use; e.g. ITU Region-1 – 800 MHz for broadcasting –Lower end (450/800 MHz vs. 2000 MHz and higher) for wireless Efficient Use of Radio Spectrum Efficient Spectrum Usage Enables Cost-Effective Telecoms Access

6. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Require Teaming Between Existing and New Carriers –For common use of established network infrastructure –Interconnect fee structure to encourage new entrant(s) –Require new carriers to have technological solution compatible with incumbents Consolidation with Existing Infrastructure GSM1x - Technology for GSM CDMA Interoperability

7. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Terminal form factor not important (well maybe a little!) –Its ok to specify terminal form factor (FWT vs. Handheld), however : Mobile handsets cost much less than FWTs and provide better user experience (users will make the FWTs mobile anyway!) Some applications available only on mobile terminals and not FWTs WLL and Handoff are NOT Mutually Exclusive –Retaining soft-handoff improves coverage, capacity, quality and data rates –Multi-path (signal received from multiple sites) improves voice quality and system capacity –Cell breathing is not a concern more effective network planning and optimization Avoid Watch-Dog Role for Regulator Defining Fixed vs. Limited Mobility Certain geographical (city or region limit) or numbering plan based restrictions may be considered for WLL/Limited Mobility

8. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Convergence Happening at the Device Level –Licensing policy needs to address this –Allow Carriers to Offer Fixed (e.g., WLL), Mobile, Data, Broadcast, etc. Services Fixed Limited Mobility Full Mobility Convergence –e.g. Indias Unified License regime Promote Carriers in Providing Different Tiering of Service Plans Converged licenses Possible at Network Facility, Services, ISP, Content layers Convergence Licensing Convergence is Future

9. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Success Story This approach has resulted in the worlds cheapest wireless access and explosive teledensity growth in India

10. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Thank You! For additional information and questions, please contact: Sachin Bhatmuley +1 858 658 1224 sachinb@qualcomm.com

11. Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Example of Wireless Market Segmentation: Sub-Saharan Africa