Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...

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Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Low-population density infrastructure
             solutions
        CTO Forum 2015, Nairobi

                      Professor Knud Erik Skouby,
                     Working Group Chair, Wireless
                       World Research Forum and
                  Director, Centre for Communication,
                  Media and Information technologies,
                      Aalborg University, Denmark
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
WWRF’s role
 • Develop future vision of the       Principles of Operation
   wireless world
                                    • Global
 • Inform and educate on
                                    • Open to all
   trends and developments
                                    • Not
 • Enable and facilitate the
   translation of the vision into      • standards body
   reality                             • research funding body
 • Bring a wide range of parties       • A typical research
   together to identify and               conference
   overcome significant             • Based on membership
   roadblocks to the vision         • All can attend meetings and
                                      make contributions
     Page 2
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Membership
70 member organisations

                          Manufacturer
                                                                   Current Working Groups
                          Network operator

                          Industry
                          organization                  Africa
                          Academic institute                           A      User Needs &
                                                                     Requirements in a Secure        B       Services, devices and
                          Research                                 Environment in different Socio-
                          organization                  Americas                                         service architectures
                          Government
                                                                         Economic settings
                          agency
                          Individual                    Asia
                                                                      C        Communication         D      Radio Communication
                                                                   architectures and technologies           Technologies
                                                        Europe

WWRF outputs
• WWRF Outlook – published version of White Paper
• WWRF Library – proceedings of each meeting
• WWRF – Wiley and River book series

                                               Page 3
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
WWRF -
2020 Vision in a nutshell
                     • 7 trillion wireless devices
                      • serving 7 billion people

       •   All people will be served with wireless devices
       •   Affordable to purchase and operate
       •   Calm computing: technology invisible to users
       •   Machine to machine communications
           • Sensors and tags: e.g. in transport and weather
             systems, infrastructure, to provide ambient intelligence
             and context sensitivity
       • All devices are part of the (mobile) internet

           Wireless – The Way to Future
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Some facts behind the Vision

   • It is estimated that mobile industry contribute over
     6% of Africa’s GDP
   • The industry has created 3.3 billion Jobs in the region
     and contributes US$ 21billion to Africa
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
The Rural Communication Challenge
 access to cheap and reliable communication is a self-
enforcing enabler for creation of wealth and higher
standards of living
      The farmer can get higher prices for his crops
      The local doctor can access lifesaving knowledge
          and provide better information for patients                                     Majority of this large
      Education becomes easily accessible                                                   population group is
                                                                                          living in rural areas in
                                                                                            Africa, India, China
                                                                                            and South America
  More than 1,5 billion of
   the world’s population
  is still without access to
   the most basic modern
       communication
                                                          Existing Telco operators are
                                                         facing steep challenges when
                                                            addressing the rural area
                                                                  installations:
                                                              Lack of power supply
                                                             High cost deployments
                                                          Lack of a clear business case
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Idea: Connecting the last miles to the HIghway
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Teamed up with Blue Town
(Danish Start-up):

A WLL low-cost, low-energy solar panel
powered

                                         8
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Examplary Business Model
• India has 37,000 villages without connectivity.
• Totally unconnected villages generally be among the
  smaller ones. A fair average size will be 750 persons.
• An average family has 6.5 members.
• These villages are generally among the poorest - the
  average income per person is between 1 and 2 USD:
  1.5 USD.
• Poor people are prepared to pay a high share of their
  income on telecommunications: 5-10% ~ approx 10
  USD/y
• ‘Mature’ situation: 1 terminal per household             9
Low-population density infrastructure solutions - CTO Forum 2015, Nairobi Professor Knud Erik Skouby, Working Group Chair, Wireless World Research ...
Basic model economics
•   A terminal will costs app. 10$. It will be used for 5 years – with an average annual cost of
    2 $ (external investment)
•   15% will have 1 low entry mobile.
•   Every family in the village has, in average, 6 US$ for daily living.
•   A family is on average willing to spend 5-15% of their daily earnings for communication.
    We use 10%.
•   Mobile operators sales cost 10% of revenue.
•   Price per base stations of USD 16,544
•   2 base stations per village with a 5 year depreciation period.
•   The network (WLL) cost per year per user is US$ 10 + up-grade every 5th year. (US$ 14
    per user).
•   Maintenance on telecom equipment is 20% per year.
•   Satellite; fiber backbone connection costs per year is US$ 2,500 for each connection.
    (Microwave/ cable solution costs are very dependent on local conditions)
•

                                                                                          10
Economic results
• Based on the assumptions above we estimate the
  revenue from one rural village to be US$ 25,269 a year
• The business value is most sensitive to:
   – The percentage of the daily income that citizens are willing to
     spend on communication.
   – The number of mobiles per family as we assume the total
     mobile consumption will increase with the numbers of
     mobiles
   – Looked Sustainable!
      • Blue Town decided to realize the ideas
                                                                   11
BlueTown End-to-End Solution

                               MESH OF VILLAGES:
                               • Connecting to
                                 existing telco data
                                 tower and center
                               • Access to VoiP,
                                 internet and content
                               • The Micro Wave Link
                                 use case enables the
                                 BlueTown solution to
                                 operate up to 25 km
                                 from an existing
                                 backend
                               • The Micro Wave Link
                                 solution can be
                                 repeated numerous
                                 times hence
                                 extending the reach
                                 to numerous villages
Three connection possibilities
CONNECT TO THE FOLLOWING:

•   Satellite
•   Micro Wave Link
•   Direct Attached Fiber
    Backbone

                                 The core system is the same in each use case and
                                         the three connection types can easily be
                                                                       combined
A Rural Digital Eco System Outlined by
Implementations
   Pilot in Kerege, Tanzania,
   being extended to further locations
                                                                                                           Pilot being established in India
                                                                                                           in collaboration with

                                                                                                           • BSNL
                                                 ”I can use the internet to learn new ways to be an
                                                                                                           • Railtel
”As agriculture is the most important
                                                 effective teacher, and motivate the kids to learn more,
activity in the village, the quality of
                                                 in a school with limited resources”.
services from my office, is key to
                                                 Remigi Reginald Mrema, Teacher
increase the socio-economic status of
the people living in the village.”
Rehema Hassan Suleiman, Agricultural
Officer

                                                                                                 A successful university/ industry
                                                                                                 collaboration
                                                                                                 promoted by WWRF
                                   ”We use the internet a lot to communicate with
                                   specialists, get valuable information about
                                   diseases, and how we can prevent disease
                                   development to the citizens”.
                                   Mbusro Onoka Okeng’o, Clinic Manager
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