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SMALL CELL TECHNOLOGIES FOR RURAL CONNECTIVITY AND DEVELOPMENT Bill Meade Indonesia Clean Energy Development (ICED) Tetra Tech ES, Inc.

Zulfebriansyah Global Broadband and Innovation (GBI) Alliance SSG Advisors, LLC


Global Broadband and Innovation (GBI) Alliance

Indonesia Clean Energy Development (ICED) Project

Mission: Expand broadband access, and support scale and replication of impacting ICT applications

Goal: Help Indonesia make progress toward low carbon development through renewable energy, energy efficiency and clean transport.

SSG is implementing USAIDs feasibility studies in Kenya, Tanzania and Indonesia with the aim of identifying scalable and sustainable models for rural broadband and development.

Tetra Tech is leading a consortium of US and Indonesian organization in implementing projects that increase access to clean energy.


Agenda 1. Introduction 2. Small cell technology for rural connectivity a. Small cell advantages

b. Using solar to power small cells 3. Rural connectivity and electrification model a. PV for basic household power supply b. Telco village utility business model 4. Contact information


Background CAN RURAL ACCESS BE PROFITABLE?

- Yes, if it can surmount 3 CHALLENGES

1. High CAPEX

2. High OPEX

3. Low Revenues


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SOLUTION: SMALL CELLS

' ( * +$,$<$,: ' $* =0( &6.%* 87&5PQZ&," &5PWP; 3) I&P; 3&+,( 9+&  Use Small Cells Designed to have Scalable Architecture E+?99" .,+&%0+" &W5- %: &; $<( .+$,: F R* =.( ++&9." ,( 8,$" * &80%++

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 Benefit from high demand for Small Cells due to 4G, LTE Features include: • Dual Design: Outdoor and Indoor • Silent active cooling • Back-to-back Installations • Plug-and-play, single person deployment • Reduced site acquisition costs • High capacity – up to 150 Mbps on LTE C." ; ?8,&8" ; ( g&B[ QP5QQZ[ W5O' 5WQPPPP5W5K!

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1. High CAPEX

2. High OPEX

3. Low Revenues

SOLUTION: RENEWABLE ENERGY ď&#x192;ź Small Cells are more energy efficient than macrocells, allowing faster payback when using Solar or other renewable options

Small cells are more energy efficient


1. High CAPEX

2. High OPEX

3. Low Revenues

Cumulative 5-year Costs (CAPEX and OPEX), With and Without Solar (based on powering a 150W BTS)

With Solar Capex Opex (permonth) Total Cumulative Costs

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total 83,303,552 83,303,552 9,996,426 9,996,426 9,996,426 9,996,426 9,996,426 49,982,131 83,303,552 9,996,426 9,996,426 9,996,426 9,996,426 9,996,426 133,285,683 83,303,552 93,299,978 103,296,404 113,292,831 123,289,257 133,285,683


Small Cells vs. Macro CAPEX and energy expense comparison in East Africa


1. High CAPEX

2. High OPEX

3. Low Revenues

SOLUTION: RETHINK TRADITIONAL BUSINESS MODELS  In rural areas telcos are often the ONLY service providers =>  Provide integrated services to capture more value • E-Commerce and Bill payments using e-Money • E-Government interface provider • Electricity provider • Job exchange and training provider

=

Transaction fees

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Service fees Service fees Transaction and service fees

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Rural Connectivity in Indonesia Network Service • Mobile phone penetration • Internet penetration • Electricity (PLN)

Total (million) 250 56 163

Percent of Total 110% 22.4% 65.5%

Note 1: Not all households with PLN connections have access to reliable (24/7) electricity supply

Note 2: Some areas served by non-PLN provider via private license. Note 3: Some areas served by community-owned PV and Microhydropower plants.


Focus on the bottom of the pyramid • 75% of all Indonesians live on less than USD 2.5/day (912.5/year) • 20% of all Indonesians live on less than USD 1.25/day (456.25/year) • Access to electricity is lowest in low income rural communities and those that in most remote areas.


Solar PV for AC or DC power supply â&#x20AC;˘ PV panels can be combined with inverters to supply AC power through use of inverter for household appliances. â&#x20AC;˘ Smaller PV panels can used directly to charge batteries for cell phones, media players, or load watt lights.


Schematic of PV battery charging station


Telco village utility business model • Telco builds oversized (excess capacity) PV system with multiple battery charging stations • Each household supplied with battery, controller, wiring, phone charger and low watt LED lights • Customers pay Telco for re-charging of battery, competitive with price of kerosene for lighting • Telco purchases household “LIMAR” DC powered home kits from Greenline Care (Indonesia) www.greenlinecare.com


1. High CAPEX

2. High OPEX

ADDITIONAL BENEFITS: • • • •

Brand Recognition Increased Loyalty Customer Lock-In (High Switching Costs) Additional Diversified Revenue Streams

3. Low Revenues


CAN RURAL ACCESS BE PROFITABLE?

1. Low CAPEX

SMALL CELLS

2. Low OPEX

3. High Revenues

NEW RENEWABLE + + BUSINESS ENERGY MODELS


Contact Information Global Broadband and Innovation (GBI) Alliance

Zulfebriansyah, Local Consultant zulfebriansyah@yahoo.com SSG Advisors steve@ssg-advisors.com

Indonesia Clean Energy Development (ICED) Project Bill Meade, Chief of Party USAID ICED Tifa Building, Suite 504 Jalan Kuningan Barat 26 Jakarta Selatan 12710 Tel. +62-21-5296-4445 Fax +62-21-5296-4446 bill.meade@tetratech.com

Small Cell Technology for Rural Connectivity and Development v4  

Small Cell Technology for Rural Connectivity and Development v4