Solar-powered base stations
This week sees the launch by Indian company VNL of a low-cost, solar-powered base station that it says it will target African mobile operators.
Although oil prices have abated a little, the continuing cost of diesel fuel to power double generators across many networks’ base stations will continue to be a factor that eats away at profit margins.
VNL’s business strategy is to tackle the cost base of Africa’s mobile operators in a number of different ways. It will produce a solar-powered base station that will function at a lower cost than its diesel-powered equivalent. It has types of base stations, all of which are considerably cheaper than existing base stations.
Lastly, the base station unit has been simplified so that the unit’s can be supplied to franchisees who will be able to set them up out of the box. According to Anil Raj, CEO of VNL:”The BTS will be able to be used out of the box and will have only two connectors, one green that goes into the power socket and one red that goes into the antennae. After that it performs a self-installing routine.”
Unlike other solar powered base stations, Roy claims that VNL’s will be the first production run units whilst have largely been produced on an experimental basis. As the CAPEX to produce solar power is not cheap, VNL has looked at ways of reducing the power and feature specification.
The photo-voltaics are 50% of the overall CAPEX and the addition of batteries pushes that number up again. It has made the assumption that more marginal markets will not use things like GPRS and EDGE.
It has used different components to reduce power requirements but still produced a base station with a capacity of 10,000 subscribers. The standard base station requires 3,000 Watts but VNL’s operate on 35W and 100W. As a result, its solar panels need only be 6-8 sq metres as opposed to 200 sq metres for the current type of base station.
The first phone call was made to a unit a year ago and since then it has been subjected to 2 million test calls. The first units will be deployed in Q3, 08 with Indian tower infrastructure operator Quippo Telecom Infrastructure Ltd, who will lease out both space on its towers and the new base stations, enabling it to move up the equipment supply value chain.
In its first year of production, it anticipates building 10,000 units. Volume deliveries will start early next year and the company is already in discussion with several major African operators. It will seek to work with African partners who will install and run the base stations.
Two examples of costs of its base stations illustrate how they could help attack mobile operator costs. The first base station is a village roof-top model which costs US$3,000: this is designed for a one storey brick-built style of building that might support a water tank. The unit weighs 100 kilos.
The second base station is the 2TRX which is for a hub site: it costs US$15,000 which with US$5,000 for civil works, produces a base station for US$20,000. The base stations are designed to last eight years. Even if the figures are optimistic this has to produce some saving on the US$90,000-120,000 which seems to be the costs for an equivalent base station using existing equipment.
And what if the sun doesn’t shine? Anyone who knows Africa knows that there have been problems with solar power because although it’s hot, there is often not sunlight for periods of time. The base station is designed to have battery back-up that will last for 72 hours and the base station can both power itself and do a recharge of its battery at the same time.
VNL envisages mobile operators offering franchises to individuals (as Celtel is already doing with conventional base stations in Nigeria) who would be trained to look after the base station, do first-line maintenance under telephone instruction and distribute SIM cards.
Alternatively 2009 may be the year that trusted infrastructure sharing operators start to offer mobile operators jointly operated towers along with leased base stations. With the dual pressure of escalating costs and lower prices from increased competition, this has to be something Africa’s mobile operators will take a look at.
Solar powered base station discussion
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