INDIA CALLING OPPORTUNITIES IN TELECOM & ITES SECTORDOING BUSINESS IN INDIA

By

N K GOYALPresident,

Communications and Manufacturing Association of India, CMAIFounder Member, Chairman Emeritus,

Telecom Equipment Manufacturing Association of India, TEMACouncil of Electronic Hardware Association of India

TEMA Export Promotion Council, Government of IndiaDirector, NFL, Government of India

nkgoyals@yahoo.co.in 98 111 29879

AGENDA

- India Invites

- India Electronic Potential

- India Telecom

- Electronic & IT Industry

- Entry Strategy for Investors

- Environmental Issues

- Indo-Japan Synergies and R&D

- Leaders Recommend India

Dr Manmohan Singh Hon’ble Prime Minister of India invites you

India has got off to a good start….savor the wonderful journey of creativity andenterprise taking place in the country.

India is a nation on the move, set to regain its

place in the community of nations as a plural,

secular and liberal society with an open economy.

Address at McKenzie Board Meeting in India 24.10.2007

Dr Manmohan Singh Hon’ble Prime Minister to Fortune Global Forum

Be it FDI, investments in India’s stock markets or investment in knowledge economy, the signals are all positive. We will work to keep these positive.

Investment is an act of faith. It is shaped by perceptions, by expectations and by all uncertainties of life. India assure you that your faith will not be misplaced.

All those who invest in India, who invest in its future, who invest in India’s prosperity and who invest in the capacity of Indian people will be investing in the future of democracy.

29th October, 2007

India’s super growth rate

Slowdown in World growth : 5.4% in 2006, 5.2% in 2007 and expected to fall 4.8% in 2008. India : Fell from 11.5% in 2006 to 9.8% in first five months of 2007 - but yet much above the world level!

Current GDP : 1 $ Trillion. World Bank report (Oct’07) foresee India can innovate to $5 Trillion GDP!

Stocks booming : Sensitive Index (Sensex) took 15 years to sail from 1000-10,000 points & 20 months to reach 20,024 points!

With Market capitalization at $1.58 trillion, India is Number 9 in global pecking order after US, Japan, UK, China, France, Hong Kong, Germany, Canada.

India foreign exchange reserves over US$300 Billion. Fifth largest in world and very soon going to be fourth position!

• 28 States & 6 federal territories (UTs)

• 37 official languages and 1652 languages & dialects. Most Indians speak either English or Hindi (More Indians speak English than the entire population of USA)

• Largest Democracy in the world; very strong legal system

• Federal and provincial governments elected by the people.

Monetary Unit: Rupee1 US$ ~ 41 Rupees (INR)

Goa

HimachalPradesh (C)

Punjab

Haryana (B)

Rajasthan (B)

Uttar Pradesh(B)

Gujarat (A)

Madhya Pradesh(B)

Bihar (C)

Orissa (C)

AndhraPradesh

Maharashtra (A)

Kerala

Tamil Nadu

Karnataka

Sikkim

a

Assam (C)

Delhi

West Bengal B)

Andaman and Nicobar Islands(C)

Calcutta

r

Bombay

m

Madras

Jammuand Kashmir (C)

- NORTH EAST (C)(B)

(A)

(A)

(A)(B)

NEPAL

BHUTAN

BANGLADESH

MALDIVES

1.1 Billion People3.3 million sq. kms area

Diverse and Unique India

Fastest Growing Nation GDP grew at 9.8% during 2007, aiming GDP grew at 9.8% during 2007, aiming

double digit growth double digit growth

Today India is a services superpower in

the making. the 12th largest economy in

world.

Strong investment momentumStrong investment momentum

Market capitalization up from USD 140 Bn Market capitalization up from USD 140 Bn

in FY 2001 to > USD 1.58 Trn recentlyin FY 2001 to > USD 1.58 Trn recently

FDI on the rise - USD 7.6 Bn (06) and USD FDI on the rise - USD 7.6 Bn (06) and USD

19.4 Bn (07)19.4 Bn (07)

FII investment - USD 6.5 Bn in 2006-07FII investment - USD 6.5 Bn in 2006-07

140 + public traded companies with 140 + public traded companies with

market cap > USD 1 Bnmarket cap > USD 1 Bn

635 722891

1229

3228

0

500

1000

1500

2000

2500

3000

3500

FY2005 FY2006 FY2007 FY2010 FY2020

US$

BB

Services54%

Industry27%

Agriculture19%

GDP

GDP composition – FY 2007

By 2050, India projected GDP is US$ 70 Trillion

Source: CMIE

India : The 5 Ds• Diversity

– Highly diverseHighly diverse– 23 languages, 30 23 languages, 30

provincesprovinces– 6 major religions6 major religions– Cultural,religious, Cultural,religious,

& Climatic& Climatic

• Diaspora

– Over 2 Mn Indians Over 2 Mn Indians

outside Indiaoutside India

– Indian companies Indian companies

outbound M&A > outbound M&A >

USD 15 Bn in 2006USD 15 Bn in 2006

• Demographics– 1.12 Bn population, 1.12 Bn population, Remain a Remain a

‘young’ nation beyond 2050‘young’ nation beyond 2050– < 20 yrs population< 20 yrs population

– 442 Mn currently 442 Mn currently – 479 Mn by 2050479 Mn by 2050

– ~10 Mn finishing school, 600,000 ~10 Mn finishing school, 600,000 Engineers and 3 Mn graduates Engineers and 3 Mn graduates p.ap.a

• Demand– 5th largest consumer market in 5th largest consumer market in

the world by 2025.the world by 2025.– 300 Mn growing middle class300 Mn growing middle class– Rising incomes to lift 291 Mn Rising incomes to lift 291 Mn

out of poverty to make middle out of poverty to make middle class 583 Mn by 2025class 583 Mn by 2025

Ingredients for sustained and consistent economic performance

• Democracy– Largest democracy in Largest democracy in

the worldthe world– Largest digital electionsLargest digital elections– 9 Prime ministers from 6 9 Prime ministers from 6

major parties, 50 + state major parties, 50 + state parties, 3 MM elected parties, 3 MM elected representatives representatives

– ONE POLICYONE POLICY

India advantage

A very rapidly growing domestic market: CAGR 30%+

Global recognition for back-end services:

A proven case for IP, embedded systems and IC design

Attractive for Manufacturing Investments

Skilled employee base Fast and upcoming modern

infrastructure (SEZs)

Proximity to EU and MEA market Freight Cost; 20% cheaper

than China - Faster delivery and lesser pipeline inventory

Local Market

Profit from Local Sales

Manufacture

Harness low cost manufacturing base to service local, European

and MEA markets

Back-end Services

Use India for IP and ITes Services-New Product development-Engineering services-BPO

Advantage

India

India is a great Opportunity - –Triple Advantage

India’s Electronics Potential Current India market size about US $ 34 Bill.

out of which production $16.1 Bill. 2005-06 and imports about $ 18.00 Bill. Exports $ 2.2 Bn.

Demand to grow from 4% of GDP to 12% by 2015 i.e.. 320 Bill. Total production may go up to $ 150 Bill. with employment potential of 21 mill.

Indian ICT spending is expected to grow at 19% from $ 29.5 Bill. During 2004 to $54.8 Bill by 2008.

ICT exports including BPO during 2005 was $ 16.5 Bill.

Indian IT Sector….high growth

Gartner report states that the top six India-centric offshore service providers, collectively referred to as SWITCH companies (TCS, Infosys, Wipro, Cognizant, Satyam and HCL Technologies), accounted for 1.9 percent of the total $672 billion IT services market in 2006, compared to 0.5 percent of the  $554 billion IT services market in 2001. 

At least two companies will be a part of the top ten companies globally if current growth pace is maintained.

India-centric providers have perfected their respective value propositions through global delivery models (GDMs), providing high-quality yet lower-cost labour to buyers globally. These companies are making inroads in key clients, often beginning with smaller, project-based or staff augmentation work.

Indian IT Sector……cont.

The average annual growth rate of the SWITCH companies was 42.4 percent in 2006, compared with a 4.3 percent growth of the market leader during the same period.

Gartner says "From being relatively unknown brands a decade ago, leading India-centric providers now offer formidable competition to the global players.”

Indian Telecom

World’s fastest Growing Telecom Market – 8-10 Mn. subscriber addition per month

Second largest in the world after China 300.51 Mn. Subscribers, Mobile 261.09 Mn., tele-density 26 % Fastest sale of a million mobile phones – 1 Week World’s cheapest mobile handset made in India –

US$17.2. Reliance plans web enabled phone at $12.

World’s Most affordable color phone made in India – US$27.42

Retail Market for Mobile Phones – handsets, accessories etc. is worth over US$ 15 Billion and growth 15%

Internet Subscribers 9.27 Mn. Internet Mobile 31.30 Mn. Broadband 3.90 Mn.

Indian Telecom…… Lowest tariff but highest profitability. Lowest Call Rates in the World at 2-3 US Cents,

Declining ARPU, even then Rs 275 per month for GSM

India ranks highest in Mobile monthly Minutes of Usages per subscriber in Asia Pacific Region and second to USA in the world….500 minutes per month

Innovative approach of doing business at lowest operation costs.

Innovative value added concepts…missed calls, rural applications, lowest prepaid charge of 2.5 cents.

Existing Indian Telecom Operators Consist of 7 fixed line and 12 mobile operators. Fixed line dominated by two PSUs- BSNL & MTNL

constituting over 90%. Other 5 with 9-10 % share are Tata Teleservices, Bharti Airtel, Reliance Communications, HFCL Infotel, Shyam Telecom

Mobile by GSM-Bharti Airtel & Reliance in all 23 circles. BSNL,

Vodafone, MTNL, Idea Cellular, Aircel CDMA- Reliance, Tata largest, HFCL, Shyam in one of

the States New Licenses given for CDMA/GSM/Unified

Access3G Auctions likely in near future.

Government initiatives in Telecom

National Telecom Policy 1994 Private sector to Supplement Government Provide world class telecom service at affordable cost

Establishment of Telecom Regulatory Authority of India (1997)

New Telecom Policy 1999 Transition from Fixed license fee to Revenue Share Introduction of Free Competition Technology Neutral Licenses

Establishment of Telecom Dispute Settlement Appellant Tribunal (2000)

Opening of National & International Long Distance Establishment of Universal Service Obligation Fund

Govt. initiative in Telecom……

National Broadband Policy 1994 ISPs permitted to use underground

copper cables for establishing their own last mile linkages

Setting up of National Internet Exchanges (2003)

Guidelines issued for intra-circle mergers of licenses (2004)

Introduction of Unified Access Service License

Untapped Rural Potential

600,000 villages with 700 million people

530,000 villages connected

>50% of total GDP from rural India

Nearly 50% of Very rich + Well off households in rural India

No. of Households (mn)

Demographic Classification Urban Rural Total

Very Rich 4.84 1.32 6.16

Well off 29.45 27.36 56.81

Total 34.29 28.68 62.97

% of Total 54% 46% 100%

India Vision for Broadband

Year ending Broadband subscribers

2007 9 million

2010 20 million

2012 140 million(Wireless 100

Million)

Broadband Deployment Plan - Urban

Broadband deployment on ADSL To use more than 25 million existing

copper loops in 1800 Towns/cities To use existing 100 million Cable TV

network in all major Towns/cities Broadband for all Secondary

Schools & Public Health care centers

Broadband Deployment Plan - Rural

Broadband deployment in 20,000 rural Telephone Exchanges on ADSL covering more than 25,000 villages

Broadband on wireless through Wi-Max in 1000 Blocks covering 30,000 villages

To set up 100,000 Common Service

Centres (CSC) in Villages

USO subsidy support scheme

Universal support obligation (USO) subsidy for shared wireless infrastructure in rural areas

Support for 8,000 Towers by 2007 Subsidy for 10,000 additional Towers by 2010 Aim to provide wireless connectivity for

Broadband and Mobile services in rural areas

HUGE MARKET FOR VALUE ADDED SERVICES

India has huge market for VAS services India ranks highest in Mobile monthly

Minutes of Usages per subscriber in Asia Pacific Region and second to USA in the world.

As on Dec. 2006 Indian average 461 (GSM 454, CDMA 424)

USA 838, China 323, Russia 88, Australia 179, Singapore 320, Malayasia 159, Korea 315, Thailand 326, (June, 2006 Merril Lynch)

Electronics & IT industry

The Market: 2006-07

ITES & Software Exports: USD 31.3 bn ; Domestic: USD 8.4

billion 6.3 million PCs sold; Installed base: 22 million

13 million TVs consumed; Installed base 100 million +

Cable TV installed base 65 million

5 million + DVDs sold: growing at 40% annually

Internet users: 38 million+ including wireless mobile internet users

30+ million Broadband connections: 2.65 million

Mobile sales: 75 million; Installed base: 209.08 million

Significant R&D and product development

Sizeable presence of MNCs: Intel, IBM, Cisco, Motorola, Nokia,

Samsung, LG

India is suddenly attractive for hardware/electronics manufacturing

The PC market (Desktop + Notebooks)

Un

its

1,715,620

2,344,6173,124,422

3,809,724

5,046,558

6,341,451

0

1,500,000

3,000,000

4,500,000

6,000,000

7,500,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

• CAGR 2001-07: 30%

• Growth over 2005-06: 26%

Desktop Market: Share of Indian, MNC & Assembled

2006-07

• Consumption of Indian brands decreased 2% in absolute terms

• Sales of MNC Brands grew by 33% and that of Assembled by 22% in absolute terms

23%

38%

39%

Indian Brands MNC brands Assembled

2005-06

28%37%

35%

Indian Brands MNC brands Assembled

The Set top box market: 2004-07 Million Units

0.75

1.5

2.75

0

0.5

1

1.5

2

2.5

3

2004-05 2005-06 2006-07Set-top box

• Annual growth 84%;

• 2007-08: sales expected to cross 2.5 million

The Software & Services market

7,6809,870

12,500

17,700

23,600

31,300

10,10012,450

15,900

22,600

30,300

39,700

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Year

Industr

y S

ize

Domestic

Exports

Total

USD Million

Source: NASSCOM

Annual growth: 31%; Exports growth at over 32% and

domestic at 25%

Software & Services Exports Markets

Source: NASSCOM

~ 80% of Fortune 500 outsource their IT from India

2003-04 2004-05 2005-06

Americas

69.4% 68.3% 67.18%

Europe 22.6% 23.10% 25.13%

ROW 8.0% 8.60% 7.69%

India Semiconductor Market

• India’s share in the global semiconductor market is expected to increase from 1.2 % in 2005 and is forecast to be 5 % by 2015

• Telecommunication, Consumer and IT Hardware are the segments driving the market during the forecast period

• Wireless handsets, Base Station Transceivers (BTS) are the major sub product categories driving the TAM for telecommunications segment

• Set Top Box, DVD players and writers are the emerging product categories in consumer segment

• Few other emerging product categories are electronic clusters, Capacitive Discharge Units (CDI) and Engine Management Systems (EMS)

2.82

12.67

36.3

1.14

5.8

15.52

0

5

10

15

20

25

30

35

40

2005 2010 2015

Re

ven

ue

s $

Bill

ion

TM TAMTM CAGR – 29.8%, TAM CAGR- 29.4% TM in 2015 is expected to grow

by 13 times the TM in 2005

TAM in 2015 is expected to grow by 14 times the TAM in 2005

Source: ISA – Frost & Sullivan

The Future…

Electronic hardware market by 2015 USD 320 billion including

production USD 150 billion and exports USD 21 billion.

Telephone subscribers: 500 million by 2010

PC sales: 25 million; installed base 65 million by 2010

ITES & Software exports: USD 60 billion by 2010

40 million new internet connection; at least 50% broadband by 2010

Nationwide TV broadcast to be digital by 2015 beginning 2010:

significant opportunity for STB consumption & manufacturing

Over USD10 bn investment in e-governance and national id card by

2010

2015: Total expected Market USD 320 bn; Domestic production USD 155 bn

Venture Capital Industry

An estimated USD 7.5 billion in VC/PE in 2006 across 299

deals

• Over 250 deals in first half of 2007 with USD 5.6 billion

• Expected to cross USD 10 bn in 2007

Key Investment Verticals – IT/ITES (23.5%), BFSI (12.1%),

Manufacturing (12%), Real Estate (7.1%); Engg & Construction

(7.9%)

India Specific VCs: ChrysCapital, HSBC Pvt Equity, ICICI

Ventures, IL&FS Venture Corporation, Infinity Technology

Ventures, SIDBI, Walden International etc.Source: IVCA

India emerging Manufacturing Destination

Surge in manufacturing confidence led by mobile players

Branded players: Nokia, Motorola,Ericsson, Texas, Alcatel, …

EMS companies: Elcoteq, Flextronics, Solectron, Jabil Circuits, Sanmina, Celestica, Aspcomp etc.

With new Fab policy several Semiconductor firms like AMD etc. are keen to manufacture in India

Consumer Electronics: LG, Samsung, IT Companies: CISCO, Dell, IBM, Intel, Microsoft,Lenova

Taiwanese Companies just about coming in Foxconn/Honhai; Compal (Reliance), Delta Electronics,

Liteon

India Growing Services Sector

Today India is a services superpower in the making. the 12th largest economy in world.

Indian growth can be attributed to traditional drivers like growing urbanization, significant development of small towns and rural India,

Increased focus on infrastructure and education. Services sector that witnessed three waves 1990s the software services 2002s telecom services witnessing 80% growth 2005 financial services wave

Indian Media & Entertainment (M&E) Industry

Global M&E industry $2 Tr. By 2011 Domestic entertainment industry estimated USD 10 Bn.

Employing 8 Mn. People. Indian M&E will grow double the rate of Country’s GDP over

next few years driven by emergence of regional players, technology and digitization (Ernst & Young Dec. 07)

Indian film industry $ 1.8 bn. in 2006 expected to be $ 4.4-5.1 bn. by 2011. Producing over 800 films p.a.

Cable and satellite market third largest in world growing at 38% CAGR for last 17 years.

TV advertising to grow 14% over next three years and continue to constitute 43% of total spend.

350 TV channels in India, 3rd largest in world. Out of 200 Mn. homes, TV spread to 60% i.e.. Over 120 Mn.

Homes.

India M&E……..cont

56 Mn. households are expected to be digitally connected by 2010, out of which 27 Mn. would be on DTH. The DTH industry expected to be Rs 100 Bn. by 2010.

Around 28% of 100 Mn. pay TV households by 2010 would be going digital. IPTV would be close to 1Mn. By 2010.

Indian animation industry nascent at $ 285 Mn. Gaming industry currently $ 50 Mn. expected $ 300 Mn. By

2009 Over 60,000 newspapers registered, print media reach around

220 Mn. This is 30% of literate population (which in turn is 65% of India’s population)

Music & radio industry shrunk $ 250 Mn. during 2000 to $ 155 Mn. during 2004. Film music contributes more than 70% of music industry content. Digital music expected to be 88% of total music market.

Incentives provided by Indian Government

Custom duty on ITA-I products zero w.e.f. 01.03.2005. No industrial licence for manufacturing of telecom

equipment. 100% Foreign Direct Investment (FDI) through

automatic route permitted for Manufacturing and 74% for services

Fully repartriable dividend income and capital invested Payment of technical know-how fee of up to US$ 2

million and royalty up to 5% on domestic sales and 8% on export sales, net of taxes, through automatic route.

Promotion of telecom product specific SEZs.

Incentives by Govt… ...contd. Import of all capital goods for manufacturing telecom

equipment does not require any license. 10 year income tax holiday for EOU/EPZ/STP/EHTP units. Export income is exempt from income tax for all

exporters. Tax holiday 100% for five years and 30% for next five

years in a block of 15 years. Infrastructure Telecom equipment exempted from

customs duty. Exemption from Excise duty on Cellular Phones and it

components, Pagers, Radio Trunking Terminals and Parts.

Telecom services sector allowed the benefit of carry forward of losses on mergers.

Entry Strategies for Foreign Investors

STARTING OPERATIONS IN INDIA Incorporation of Company For registration and incorporation, an

application has to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies.

A foreign company planning to set up business operations in India has the following options

Indian Company

A foreign company can commence operations in India by incorporating a company under the Companies Act,1956 through

Joint Ventures; or Wholly Owned Subsidiaries Foreign equity in such Indian companies

can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.

Joint Venture

Joint Venture With An Indian Partner Foreign Companies can set up their operations

in India by forging strategic alliances with Indian partners.

Joint Venture may entail the following advantages for a foreign investor: 

Established distribution/ marketing set up of the Indian partner

Available financial resource of the Indian partners

Established contacts of the Indian partners which help smoothen the process of setting up of operations

Subsidiary Company

Wholly Owned Subsidiary Company

Foreign companies can also to set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy.

Foreign Company

Foreign Companies can set up their operations in India through

Liaison Office/Representative Office Project Office Branch Office Such offices can undertake any

permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

Liaison Office

Liaison office acts as a channel of communication between the principal place of business or head office and entities in India.  Liaison office can not undertake any commercial activity directly or indirectly and can not,  therefore,  earn any income in India.  Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers.  It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India.

Project office

Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. Such offices can not undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

Branch Office

Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes:

Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is

engaged. Promoting technical or financial collaborations between Indian

companies and parent or overseas group company. Representing the parent company in India and acting as

buying/selling agents in India. Rendering services in Information Technology and

development of software in India. Rendering technical support to the products supplied by the

parent/ group companies. Foreign airline/shipping company.

Branch Office….contd.

A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).

Branch Office on “Standalone Basis”

Such Branch Offices would be isolated and restricted to the Special Economic zone (SEZ) alone and no business activity/transaction will be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India.

No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities subject to specified conditions.

ENVIRONMENTAL ISSUES

Environmental issues have been rising up throughout the world during last several years.

Climate change is already with us. Scientific evidence shows that past emissions of greenhouse gases (GHG) are already affecting the Earth’s climate. If current trends and policies continue, the result will be a rapidly warming world.

Most of the observed warming in the past 50 years has been caused by human activities, particularly producing and consuming fossil fuels, increasing agriculture and changing land use. Cont………

WORLD IS SERIOUS ON ENVIRONMENTAL & HAZARDOUS ISSUES

Kyoto Protocol (2005):It caps the quotas on maximum amount of greenhouse gases for developed & developing Nations. Countries made commitments to individual, legally binding targets to limit or reduce their greenhouse gas emissions by 2008-2012.

UN Convention: Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.

Rotterdam Convention: Under this expert body recommends whether a hazardous product should be placed on special list which requires countries to obtain prior consent before they can export product.

All countries have taken precautions for Air, Water, Sound Pollution.

Basel Convention for E waste and Hazardous Waste Management Amendment Rules 2003 List A & B Schedule 3

Concern - Health & Environment

E Waste….becoming more and more Radiation… can’t touch it, feel it, smell it, taste

it. Use of Bio gradable materials Hazardous growth of telecom towers in unsafe way Problems :

Do we wait for evidence or lack of it to act Do we wait for Policy and regulations Mindset & resistance to amend and changes, alternatives

Solution : Awareness and willingness to Act immediately Anti EMR Products and Solutions, E waste

management

E WASTE

Electronic Waste “E-waste” or “Waste Electrical and Electronic Equipment (“WEEE”) is a waste consisting of any broken or unwanted electrical or electronic appliance or E-waste comprises of waste electronic goods which are not fit for their originally intended use.

E-Waste contains Toxic Substances and chemicals, which have adverse effect on environment and health, if not handled properly, e-waste is hazardous as it contains hazardous constituents.

E waste is source of carcinogenic ( cancer causing) substances and release most harmful elements in atmosphere.

WORLD IS CONCERNED FOR E-WASTE

Covered under Hazardous Waste Management Amendment Rules 2003 List A & B Schedule 3

Covered under Basel Convention Annexure VII The restriction of hazardous substances--

known simply as RoHS--bans six substances, including lead and mercury, from consumer electronics.

Eco-Design Requirements for Energy Using Products directive (EuP) requires that the physical inputs and outputs of certain products throughout their entire life cycle be measured and minimized; and this includes materials, packaging, distribution, emissions and waste.

World concern….contd.

The European Union's WEEE (Waste Electronics and Electrical Equipment) directive stipulates that discarded electronic items must be kept separate from regular trash, and that the makers must take them back for recycling and proper disposal, or pay others to do this.

Countries like Switzerland, Norway, Japan, Belgium, South Korea, Taiwan etc. have legislation and fees levied on consumers and producers for tackling e waste.

Companies that do not comply with the directives face exclusion from European markets.

Global Electromagnetic Radiation (EMR)

For millions of years, life evolved on earth where the natural For millions of years, life evolved on earth where the natural frequency/radiation background level has been very low. frequency/radiation background level has been very low.

The Earth's natural geomagnetic resonating frequency is The Earth's natural geomagnetic resonating frequency is normally 7.8Hz. Then starting only 100 years ago, a literal normally 7.8Hz. Then starting only 100 years ago, a literal explosion of EM frequencies in the form of television, radio and explosion of EM frequencies in the form of television, radio and microwave radiation has increased our everyday exposure level microwave radiation has increased our everyday exposure level by at least 10,000 times.by at least 10,000 times.

Clearly, global EMR is a major human health threat. Immediate Clearly, global EMR is a major human health threat. Immediate efforts needed now to efforts needed now to limitlimit, , managemanage and and control exposurecontrol exposure to all levels of harmful EMFs and frequencies in our to all levels of harmful EMFs and frequencies in our environment. environment.

The threat is invisible, insidious and increasing exponentially in The threat is invisible, insidious and increasing exponentially in scale and in magnitude as the Mankind enters the 21st century.scale and in magnitude as the Mankind enters the 21st century.

Global Electromagnetic Field (EMF)

EMF is everywhere. It is generated by cosmic, solar, every electrical EMF is everywhere. It is generated by cosmic, solar, every electrical device and man made sources. device and man made sources. EMF not composed of atoms but can EMF not composed of atoms but can be measured. Tbe measured. They are forms of energy, not matter, having their own hey are forms of energy, not matter, having their own properties. properties. 

EMFs can be a health risk and steps ought to be taken to avoid EMFs can be a health risk and steps ought to be taken to avoid exposureexposure.. Researchers have found scientific evidence EMF radiation Researchers have found scientific evidence EMF radiation damages cells and other affects on health.damages cells and other affects on health.

““I have no doubt in my mind that, at the present time, the greatest I have no doubt in my mind that, at the present time, the greatest polluting element in the earth's environment... more serious even than polluting element in the earth's environment... more serious even than global climate change and chemical pollution... is the proliferation of global climate change and chemical pollution... is the proliferation of electromagnetic fields” electromagnetic fields”

Dr. Robert O. Becker, M.D.Dr. Robert O. Becker, M.D.

Still another view is No evidence of established health effects at levels below the existing standards (MMF)

Some seriousness attached to Radiations

In Airplanes, passengers advised to keep mobile phones in switch off mode to avoid interference with the sensitive operating machinery of the aircraft.

At ISRO, small rockets took off due to radiations’ interference with the operations of the rocket launching system.

People with Pacemakers advised not to carry mobile phones as the radiations emitted from mobile can interfere with the functioning of pacemaker. Mobile Phones not permitted in ICUs.

Recorded cases of Birth disorders and untimely abortions due to excessive exposure of pregnant ladies to microwaves.

Butterflies, Sparrows, pigeons, vultures, parrots etc increasingly vanishing from skies due to onslaught of, power transmissions, mobile telephony and satellite communications.

Sweden Govt. giving radiation affected disability allowance. State Governments of India banning towers in Residential

areas.

Some Researches

Recent research project by Spanish Scientists discovered that wireless radiation penetrates deeply into the skulls of users and that a single 2 minute usage disrupted normal brain waves for up to one full hour afterwards.

Several medical research studies have concluded that the microwave frequencies entering into the heads of wireless users are enough to cause neurological damage.

Research by University of Washington professor Dr. Henry Lai shows brain cells are clearly damaged by microwave and that even tiny doses of radio frequency can cumulate over time and lead to harmful effects.

Governments across the world like US and UK are taking precautionary approach and adopting safety guidelines IEEE, ICNIRP etc.

World Standards coming up

EU Radio & Telecom Terminal Equipment Directive (R&TTE Directive 5/1999/EC) managed by DG Consumer Protection and Health, Generally accepted as the reference for exposure values

ICNIRP, IEEE recommendations & guidelines US National Academy of Sciences (2008): a great deal of research

has been carried out to investigate possible biological or human health effects resulting from the use of these devices

WHO Fact Sheets: FS 183: Effects of Radiofrequency Fields, FS 184: Public Perception of EMF Risk, FS 296: Electromagnetic Hyper sensitivity, FS 304: Base Stations & Wireless Technologies

ITU-T K.52 “Guidance on complying with limits for human exposure to electromagnetic fields” states/recommends: In many cases, local or national regulatory agencies or standards bodies promulgate the EMF safety limits. If such limits do not exist, or if they do not cover the frequencies of interest, then ICNIRP limits should be used.

SAR value prescribed by Australia, Malayasia, Thailand, Singapore & Philippines, China, USA, UK etc. 2W/kg averaged over 10g

Environmental Issues – Way Forward

India offers expertise and technology for Policy regulations, public policy for

radiations Technology to control and make radiation

safe the towers and other gadgets Products for Anti Radiation Measures

Coordinated efforts for Research & Development in this field.

Summary India is one of the strongest and fastest growing

economies in World Indian Telecom sector growing at an explosive

pace with the highest growth in wireless users India will lead to massive opportunities for

broadband wireless & VAS Government of India fully supports growth of all

technologies and will provide necessary regulatory framework to promote and facilitate such growth.

All assistance and cooperation assured.

Why is India & Japan worth Attention?

• India as an Emerging Economy• Growing middle class market• Indian stock boom • Indian economy featured in business magazines and

newspapers• Japan known world over for high tec high quality

products with well known brands.• Excellent Ties between the Governments.• Government Level INDO ICT Japan Forum• Cultural affinity

　　　Source:JETRO

Japanese Global Share

Japan’s global market share and exports share declined in almost all ICT-related products between 1997 and 2005.

Regardless of the decrease of the weight of the Japanese market in the global market, the ICT vendors of Japan tend to be domestic market-oriented compared to those of the US and Europe.

There is reported shortage of domestic software engineers. One of the major purposes of off shoring is offset the shortage.

Source: The Foundation for Multi Media Communications (FMMC), Japan

Japanese ICT Vendors

ICT vendors of Japan tend to develop their business in a wider product range than those of the US and Europe. This makes it possible to spread business risk and build up a wide variety of technologies

Japanese ICT vendors are competitive in product areas where material technologies, optical/electronic device technologies, equipment technologies, and technologies for metal dies are important.

As the demand for high-end products is expected to increase, Japan, as the most advanced country in terms of broadband infrastructure, will become a test bed for products with the highest technology, which will create important opportunities for Japanese ICT vendors.

Source: The Foundation for Multi Media Communications (FMMC), Japan

Research & Development

Japan very strong in 4G, gaming, animation, media contents.

Japan I Burst, PHS very good technologies suitable for India and Asian countries.

India has good demand for above. There can be collaborative efforts for

joint R&D and marketing of telecom ICT products.

Way Ahead

Let us move ahead Joint venture Joint R&D Joint Marketing in third world countries Collaboration in exchange of business

delegations, trade exhibitions. All assistance assured from India

Leaders Recommend India

Arun Sarin, Vodafone says…. I am getting a taste of how they do business in

India. My team studying secret of low cost business model

In UK average call costs 15 cents and in India only 2 cents. Margin remains 40%. Low cost labour is hardly one third. The other two third is just how they do business.

India has innovative approach to delivery, services and distribution systems.

India more open in telecom. In China they own just 3% & balance Govt., but in India up to 74% and balance with private parties.

Leaders recommend India

We see in India telecom companies doing 30% plus margin on $8 monthly revenue. There is no place in the world where wireless fetch these kinds of numbers.

What India has shown on the wireless side is significant to the whole world.

India is platform for Asia. It’s a billion people under one regulatory environment, you can come here and scale and then leverage that grow into Asia.

Randall Stephenson, Chairman & CEO, AT&T at New Delhi Press 1 July,

2007(Mint)

Leaders Recommend India… India has a fantastic pool of software professionals. The world needs tobenefit from thisBill Gates, Microsoft Chairman

Not only are there brilliant engineers here [in India], I've been seeing thatthe entrepreneurial spirit of the businesses is second to noneMike S. Zafirovski President and Chief Operating Officer Motorola

Through the wisdom of its government leaders and the entrepreneurshipof its private sector, India has risen to become a major force in the global economy John Chambers, President and CEO, Cisco Systems Inc India has evolved into one of the world's leading technology centresCraig Barrett, Chairman, Intel Corporation  

I put India on the top priority market among emerging marketsYuanquing Yang, Chairman, Lenovo     

World View There is keen awareness of the need to continue to strengthen India's fiscal

position, open the economy more fully to the world and remove the remaining domestic constraints on growth

Rodrigo de Rato, ManagingDirector, IMF

Because of the dynamism of the economy, there is a very optimistic view of the direction of the country. Lee Howell, World Economic Forum

India has the potential to deliver the fastest growth over the next 50 years with an average rate of more than 5 per cent a year for the entire period

Dominic Wilson, Senior Global Economist Goldman Sachs   India has displaced US as the second-most favoured destination for foreign direct

investment (FDI) in the world after China ` ]A T Kearney, FDI index report

If you put one dollar in the US, you may get two dollars in three years. But if you put the same dollar in India, there is a high chance of getting three dollars

Wayne W Tosu, Managing Director, Carlyle Group

GIO Factor

In Hindi – GIO means Live LongIn Hindi – GIO means Live Long

Come…..explore….and be a part of the….Come…..explore….and be a part of the….

GGreat reat IIndian ndian OOpportunitypportunity