Team Telechaps from Symbiosis Institute of Telecom Management proposed a scalable broadband model for AlphaTel's next 10 years of service. They suggest a hybrid model using AlphaTel's network for logical reach and partnering with local ISPs for physical network reach. This converts capital costs to operational expenses and allows flexibility. They analyzed opportunities in the growing Indian broadband market and recommended launching in cities that already have fiber infrastructure and high internet demand.

1. Airtel iCreate 2019
Team Name: Telechaps
Campus: Symbiosis Institute of Telecom Management
Members: Rajarshi Bhowmick, Indraneel Mazumdar
Case Challenge Name : Exploit New Opportunities for Broadband
1

2. Q1. Suggested Scalable model for AlphaTel’s broadband service launch for next 10 years
OFFICE
PREMISES
EQUIPMENT DISTRIBUTION NETWORK
CUSTOMER
PREMISES
EQUIPMENT
2
AREAS OPERATIONS REMARKS
Office Premises
Equipment
Distribution
Network
Customer
Premises
Equipment
1. Traffic scheduling
2. Buffer Control
3. Bandwidth Allocation
1. Splitting
2. High Reliability
3. Support Network Survivability
1. Internet Provisioning
2. User Authentication
System Intelligence (major)
No Intelligence
System Intelligence (minor)
(Tasks performed in each Area)
Major Focus Areas for AphaTel
v Major Focus should be on ‘on-premise’
equipment which drive the whole network.
v Partner with Local ISPs and network infra
companies for maintaining distribution network.
Outsourcing will reduce number of tasks and
vendor relationships. SLA contracts can be
maintained to reduce management from
AlphaTel's side
v Outsourcing will reduce company payroll salary
expenses
Mechanism Adopted
Capex to Opex conversion methodology to incur less capital
costs
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

3. 3
Q1. Suggested Scalable model for AlphaTel’s broadband service launch for next 10 years
Central
Office
Distribution
Network
Customer
Premise
PARTNER’s
NETWORK
ALPHATEL’s
NETWORK
Hybrid Model suggested for long sustenance and less capital cost.
v Alphatel’s Network provides logical reach to the connections
v Partner’s Network will provide physical reach to the network
SCALABILITY MODEL
(DESCRIBED IN 3 PARTS OF SERVICE DEPLOYMENT)
Scalability of user services: FTTH uses Bandwidth division multiplexing,
thus sharing the bandwidth between users instead of time frames. Hence
because of wide band spectrum bandwidth, user services can be add or
deducted at will without thinking further on network capacity.
Scalability of user units: FTTH uses wider logical reach, hence is
infrastructure independent, so we can extend service to customers even
before laying the physical infrastructure.
Scalability of network infrastructure: Although in a partnership model
we don’t have to think about it much, but the inclusion of micro-ducts in
Fibre layout process, has readily decreased the manual labour and
monitoring in the service.
SUSTAINABILITY (EXPLAINED THROUGH PESTEL ANALYSIS)
POLITICAL ECONOMICAL
SOCIAL TECHNOLOGICAL
LEGAL ENVIRONMENTAL
q Government’s aim to create 1 lakh digital
villages in 5 years
q 10,000 Crore of 2018-19 project is granted
for telecom infrastructure development
q Property prices of customer premises
increases
q Demand is increasing for supernet
connectivity
q Enable creation of e-society as FTTH will
provide services to the municipalities, local
bodies etc.
q Facilities to rural areas and students from
remote places
q 5G services can run over FTTH
q Optical fibre is scalable and upgradable
q Logical reach is auto-configurable apart
from the physical reach
q It is a green technology
q Very less electromagnetic
interference
q Shielding offers no damage to the society
q It is a ITU standardised technology framework
q The distribution network which will run between
the cities is based on optical cables , hence no
risk of loose electrical leaks on ground.
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

4. 4
Q1. Suggested Scalable model for AlphaTel’s broadband service launch for next 10 years
FINANCIAL BENEFITS OF THE MODEL (A COMPARATIVE STUDY)
S E L F - L A U N C H H Y B R I D M O D E L
Vs
Analysis of the two scenarios suggests that AlphaTel can convert a lot of its
Capital cost to operational costs. Also it will have the flexibility with its operational
efficiency in charge. At will it will be able to change its network partner. So it gains
a better position in the market. (Because of competition among the fibre optic
suppliers & integrator)
ANALYSIS OF THE COMPARATIVE STUDY
COST INCURRED ALPHATEL PARTNER
CUSTOMER WISE
REGION WISE
2240 1200
15400
So as number of sales will increase, AlphaTel will not incur further costs on its operations as it is able to successfully convert major part of its capital
expenditure to its operational expenditure. Indirectly this model will let it to decrease its technical resource strength, thus able to decrease salary component of its
balance sheet as well. Thus the model is financially sustainable over a longer period.
*Note: All Costs mentioned are in Rs.
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

5. Q2. What is the overall opportunity around Broadband service in India for the next 5 years?
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Broadband subscriber base (Urban + Rural) anticipated
to grow at CAGR 15.79%
Anticipated FDI investment in Telecom Sector (Trend Analysis)
based on historical data
Anticipated growth of mobile traffic data from 4.6EB in
2018 to 16EB in 2024 at a CAGR of 23.09%
Anticipated Fiber Optic Rollout from 2636588 fkms in
2018-19 to 5445519 fkms at a CAGR(expected) of 12.26%
Growth of LTE subscribers in India due to advent of 4G and 5G
adaptation expected to reach 1.16 billion at a CAGR of 17.10%
GDP per capita of India is expected to grow at a CAGR of 7.47
USD 4063.69 in 2025. Higher the income, better the adaptability
REFERANNEXURE1FORMOREINFO
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

6. Q3. Identify the best cities that AlphaTel should launch the service in and why?
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FIBER OPTIC SERVING NODES IN INDIA INTERNET SUBSCRIBERS IN INDIA
SCALE SCALE
Source link: http://www.bbnl.nic.in/actgps.aspx?langid=1&ls_id=9&l_id=9
The following marked areas showed a ready to go Fibre Optic network and also huge concentration for internet demand. Therefore it will be a
strategic decision for AlphaTel to monetize (launch) service to these areas.
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

7. 7
ANNEXURE 1
Year Month
Broadband subscriber
base (in millions) [Urban
+ Rural]
2014 March 60.87
2015 March 99.19
2016 March 149.75
2016 December 236.09
2017 March 276.52
2017 December 362.87
2018 March 412.59
2018 December 518.55
2019 January 540.04
2019 February 550.24
2019 March 563.31
2019 April 571.95
2019 May 581.51
2019 June 594.59
2024 December 1250
Mobile subscriber base to increase dramatically post
deployment of 5G technology.
Data Source: DoT, Ericsson Mobility Report 2019
Year LTE subscriptions (in millions)
2018 450
2024 1160
Increased adoption of 4G LTE and LTE-Advanced mobile
network technology is accelerating MBH fibre upgrades,
which can and will be leveraged by future 5G networks .
Data Source: Ciena, Ericsson Mobility Report 2019
Year Mobile Data Traffic (EB)
2013 0.049
2014 0.085
2015 0.138
2016 1
2017 2.3
2018 4.6
2024 16
Deployment of 5G is expected to increase the mobile data
consumption multifold. Data Source: Ericsson Mobility
Report 2019
Year Totalfibre Rollout(inkms)
2014-15 82501
2015-16 150000
2016-17 254895
2017-18 1500000
2018-19 2636588
With the need of high speed fixedline broadband and faster
5G backhaul networks, fibre deployment is expected to
attain a CAGR of 12.26%. BharatNet (phase 2 and phase 3)
to play crucial role. DataSource: ResearchandMarkets
Year Elite Affluent Aspirers Next Billion Strugglers
2016 2% 31% 15% 45% 6%
2017 2.60% 30.70% 15% 45.30% 6.40%
2018 2.90% 27.60% 16.20% 46.00% 7.30%
2025 (forecasted) 5% 18% 20% 46.00% 11.00%
Direct Impact of GDP per capita with broadband penetration in India. GDP per
capita forecast (till 2025). Data Source: IBEF
Year FDI equity inflows (USD millions) Telecom Sector FDI (USD millions) Share %
2008 24,575 1261 5.13%
2009 31396 2549 8.12%
2010 25834 2539 9.83%
2011 21383 1664 7.78%
2012 35121 1997 5.69%
2013 22423 304 1.36%
2014 24299 1307 5.38%
2015 30931 2895 9.36%
2016 40001 1324 3.31%
2017 43478 5564 12.80%
2018 44857 6212 13.85%
Year wise FDI investment in Telecom sector in India. FDI investment (inflow)
increased from 74% to 100% . National Digital Communication Policy 2018 –
Propel India, to attract investments worth USD 100 billion in digital
communications sector by 2022. Data source: IBEF
v Promote wireless broadband – Government promises Free WiFi to more than 1000 Gram Panchayats
v TRAI has recommended tax benefits on telecom infrastructure
v Prescribed spectrum change to paired spectrum 2x8 Mhz.
v Connect India objectives – Universal broadband connectivity at 50Mbps to everyone; 1Gbps connectivity to all Gram
Panchayats, enable fixed line broadband across 50% of households
(Data Source: IBEF)
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management

8. 8
REFERENCES
v Promote wireless broadband – Government promises Free WiFi to more than 1000 Gram Panchayats
v TRAI has recommended tax benefits on telecom infrastructure
v Prescribed spectrum change to paired spectrum 2x8 Mhz.
v Connect India objectives – Universal broadband connectivity at 50Mbps to everyone; 1Gbps connectivity to all Gram
Panchayats, enable fixed line broadband across 50% of households
(Data Source: IBEF)
v http://dot.gov.in/reportsstatistics/telecom-statistics-india-2018
v https://www.ericsson.com/49d1d9/assets/local/mobility-report/documents/2019/ericsson-mobility-report-june-2019.pdf
v https://www.ciena.com/insights/articles/5G-wireless-needs-fiber-and-lots-of-it_prx.html
v https://www.researchandmarkets.com/reports/2103397/india_fixed_broadband_market_statistics_and?utm_source=BW&utm_medium=
PressRelease&utm_code=jxxksp&utm_campaign=1284464+-
+India+Fixed+Broadband+Market+Statistics+and+Analyses+2019&utm_exec=chdo54prd
v https://www.ibef.org/download/Telecommunications-July-2019.pdf
v https://economictimes.indiatimes.com/tech/internet/1-10-lakh-gram-panchayats-given-optical-fibre-connectivity-
government/articleshow/62833908.cms
v https://www.businesswire.com/news/home/20190611005821/en/Global-Fiber-Optic-Cable-Market-2019-2024-Witness
v https://www.ad-net.com.tw/introduction-to-olt-optical-line-terminal-and-ont-optical-network-terminal-onu-optical-network-unit/
v http://www.bbnl.nic.in/actgps.aspx?langid=1&ls_id=9&l_id=9
CREATED BY Rajarshi Bhowmick & Indraneel Mazumdar, Symbiosis Institute of Telecom Management