growth of telecom in india
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Company Confidential
Growth of Telecom in IndiaGrowth of Telecom in India
Ashish Chowdhary NokiaAshish Chowdhary Nokia
IndiaIndia
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Very Positive Macroeconomic Trends
58% % of eligible voters casting votes in India (64% in theUS)
20% Indias Share of All International money flowing IntoEmerging Markets
$164B Forex Reserves Today. ($9B in 1992)
350,000 Engineers produced annually in India
#1 Fastest Growing Economy for the next 50 yrs(Goldman Sachs)
2% Loans written off in India (China is 20%)
GDP Growth of BRIC & G6 Economies
0
5,00010,00015,00020,00025,00030,00035,00040,00045,00050,000
2 0 0 0
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2 0 4 8
U S
( $ )
China
USIndia
Brazil
Russia
Italy
France
Germany
Japan
UK
Worlds third largesteconomy by 2032
Worlds growth engine - Fastest growingeconomy by 2012
Source: Goldman Sachs
148% Growth of Indian stock market in last 5 yrs (US mktgrowth 6%)
4.0% Inflation in 2005. Down from previous year (5% in2004)9.3% GDP Growth in Q1 2006. GDP for FY2005 revisedupwards to 8.4%
25 Yrs Median age for Indians
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Bharti
Hutch
BSNL
Reliance (G+ C)
Idea
Escotel
BPL
Others
Tata
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To tal GSM Tot al CDM A Tot al India
Very Strong Subscriber GrowthDramatic Upswing in last 12 months
Source: COAI
Monthly Net Additions, crossing 5m
24.3m Subs
23.6m Subs
19.0m Subs
19.7m SubsMega Operators in the makingKey Trends
Metros Hutch leadsWith 5,634,197 subs
Circle A Bharti leads
With 8,464,371 subs
Circle B BSNL leadsWith 7,381,378 subs
Circle C BSNL leadsWith 2,792,913 subs
0
20000000
40000000
60000000
80000000
100000000
120000000 Reliance (G + C)
Tata
Others
BPL
Escotel
Idea+Escotel
BSNL
Hutch
Bharti
July 2006 subs: 110.6m (GSM 82.4m, CDMA 28.2m)
Huge subscriber additions
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India Telecom Growth Drivers1997- 2004 : tariffs + regulations + major events
National TelecomPolicy 1994
NTP 99announced
UnifiedLicensing
Source: COAI
-5,000
10,00015,00020,00025,00030,00035,00040,00045,00050,000
1997 1998 1999 2000 2001 2002 2003 2004
Net adds Total Subs GSM Subs
Subs 000
Introduction of CPP,CDMA service launch,
Monsoon Hangama
Launch of GSM
services by BSNLand 4 th GSMoperator
BSNL roll outof new linesTariff cuts in
P9
0.37
0.270.18
0.08
0.060.04
0.030.02
Tariff: US$/min.
NTP 99 - Move torevenue share from
fixed license fee
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Nokia India Nokia Everywhere !Number 1 Vendor - Overall, Handsets and now Networks
Highest Ranked MNC
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Mobile Phones Multimedia
EnterpriseSolutions Networks
CorporateFunctions
Research,Venturing
& BI
Customer& Market
OperationsTechnology
PlatformsManufac-turing
Nokia India many diverse activities
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Company Confidential
Nokia India - A History of Innovation in India
1995: Indias first mobile call made from a Nokia handset on a Nokia supplied Network
1998: Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110
2000: First Hindi UI (menu) in a Nokia 3210
2002: First Hindi text input in a Nokia 3610
2003: First Made for India phone, Nokia 1100
2004: Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones
2005: First handset with a talking alarm clock in 5 regional languages, Nokia 1110 & 1600
2005: First telecom company to manufacture both handsets and Networks equipment in India
2006: Nokia Moves managed services hub to India GNSC centre in Chennai becomes operational
2006: Nokia becomes the #1 supplier of handsets AND Networks in India, according to Voice & Datamagazine, July 2006.
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Nokia India Telecom SEZNokia Telecom SEZ
210 acres in Sri Perumbudur 9 key suppliers will be housed within the SEZ by end of 2007 The Nokia Telecom Park strengthens Nokias delivery capabilities and customer
satisfaction Business park infra and services need to meet global standards Requires 24/7 custom clearance Nokia has been the engine of the investment train in Chennais
manufacturing corridor
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Imperitives for Continued Growth
Promote international standards by harmonizing spectrum allocation with ITU
Incentive for shared infrastructure, specially to promote rural growth
Reduce customs duty on imported telecommunication and related equipment for implementingaffordable services. Review The proposed countervailing duty 16.32% on cellular mobilephones w.e.f. 1 Jan, 2007 and similar taxations on mobile phone spare parts/accessories toprevent increase in price of mobile phones,
Have a consistent policy for duty on all components imported into India for use in producingmobile phones within Special Economic Zone (SEZ) or in a DTA and spare parts imported intoIndia for servicing of phones
Flexibility in labor law
Enhance physical infrastructure
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Thank You