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MOBILE NUMBER PORTABILITY By: Ashutosh Kalra Ashwini Kumar Gogoi Esha Malhotra Jeet Khushhal Gupta Kirti Sharma

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What is MNP Why MNP Challenges Impacts Live Example of MNP What will we covering

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Evolution of Telecom In India Go-ahead to the CDMA technology INDIA Private players were allowed in Value Added Services National Telecom Policy (NTP) was formulated 1992 1994 1997 Independent regulator, TRAI, was established NTP-99 led to migration from high-cost fixed license fee to low- cost revenue sharing regime 1999 2000 2002 BSNL was established by DoT ILD services was opened to competition Internet telephony initiated Reduction of licence fees 2003 Calling Party Pays (CPP) was implemented Unified Access Licensing (UASL) regime was introduced Reference Interconnect order was issued 2004 Intra-circle merger guidelines were established Broadband policy 2004 was formulated targeting 20 million subscribers by 2010 2005 FDI limit was increased from 49 to 74 percent Attempted to boost Rural telephony 2006 Number portability was proposed (pending) Decision on 3G services (awaited) 2007 Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. ILD International Long Distance

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MOBILE NUMBER PORTABILITY Mobile number portability (MNP) allows mobile phone users to keep their number when changing from one network to another carrier Applicable to both CDMA and GSM, as well as post-paid and pre-paid categories of clients Is the greatest upside and improvement of network quality and customer service expected in telecommunications Keep single mobile number lifetime

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WHY MNP ? Moving to a new city, and city falls in same circle Current network seems to be having costly calling rates. Network issue.

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Main reason for leaving your current operator ? The main reason for switching existing operator came out to be the Tariff followed by Network Coverage.

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SURVEY Will you change your Operator? Indian mobile users are ready for Mobile number portability. Almost 80% of people said they will use MNP and will change their existing operator

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Challenges Huge Costs Customer Retention/ Increased Competition Infrastructure Upgrade Cost Recovery and Bill Reconciliation/Query CHALLENGES for OPERATORS If the new city one is moving to isnt in same circle, MNP is useless for him/her Not happy with services, wait for 90 days. CHALLENGES for CONSUMERS

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Impact of MNP on Mobile Operators Positives Operators who are having existing pool of strong customer base will be able to retain customer by providing competitive services New telecom service providers can survive in the market by providing competitive tariffs and VAS ARPU is likely to improve as customer reduce number of active connection of several operators Negatives Competition among telecom service providers is increasing Profit margins are likely to erode Complex task to find out subscribers owns by operators as it can change service providers when ones found better value for money

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Positives Subscribers would likely to have efficient services at cheapest rate Can retain one number lifetime while choosing competitive plans from other operators. CDMA users can switch to GSM network. Negatives A subscriber is eligible to make a porting request only after 90 days of the date of activation of his mobile connection. Subscribers transferring the mobile number with some balance amount, no credit transfer would be allowed to the new account. Consumers allowed to change operators within their registered circle only (So if you are moving to another city and want to retain your mobile number, MNP is not the answer). Impact of MNP on Mobile Subscribers

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Which new Operator you will select ? Airtel the most preferred operator after Vodafone Ref: Telecom Daily

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AIRTEL - Company History 1995 mobile service brand in Delhi and HP and BT acquires a stake 1996-97 Formed Bharti BT VSAT Ltd 1999-2000 Acquires JT Mobiles in Karnataka, AP and Punjab 2001-02 Launches IndiaOne, 8 new licenses in the East, becomes largest operator, launches Airtel tune 2003-04 Association with Ericsson, IBM, RIM 2006-07 Forays into Sri Lanka and US, tie up with Google and Microsoft

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Airtel Strategy MANTRA : Focus on Core Competencies and Outsource the rest! Core Competenci es Product Innovati on VAS Marketi ng and Brandin g Pricing

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AIRTEL Leading global telecommunications company 19 countries operations across Asia and Africa Offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers Has been ranked among the six best performing technology companies in the world by business week

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Bharti Hexacom Bharti Comtel Bharti Aquanet Bharti Broadband Bharti Infratel Bharti Telemedia Bharti Airtel(UK,US,Canada, Hongkong, USA, Lanka) Subsidiary Companies

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Rs 8,340.15 million raised through the IPO 2002 Went Public Shares in issue 1,898,101,604 as at September 30, 2008 Market Capitilization Approx. Rs. 1,371 billion P/E 19.98 EPS 36.16

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Some Key highlights Income Statement (Sep '08)(Mar '08) QuarterlyAnnual Net Sales8274.3725703.51 Other Income 28.43235.86 PBDIT3151.0610736.89 Net Profit1604.786244.20 Balance SheetAmount in Rs. Cr Total Share Capital1897.91 Net Worth20241.49 Total Debt6570.34 Net Block19030.65 Investments10952.85 Net Current Assets-5922.94 Total Assets26811.84

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Key Ratios Key Ratios - AirtelMar-08Mar-07Mar-06Mar-05Mar-04 Debt-Equity Ratio0.380.540.830.60.07 Long Term Debt-Equity Ratio0.350.50.760.50.03 ROCE (%)34.8834.0722.5523.960.16 RONW (%)39.5343.0431.8223.88-0.27 Key Ratios - Industry20072006200520042003 Debt-Equity Ratio0.350.210.270.340.36 Long Term Debt-Equity Ratio0.30.190.240.290.33 ROCE (%)9.7210.288.258.433.07 RONW (%)10.1110.6210.876.760.18

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Income and Expenditure(Rs. Cr)

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WHY AIRTEL ? Airtel's 3G services can also be availed with Mobile Number Portability with attractive offers.

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Steps to move your mobile number to AIRTEL To begin with, you need to generate UPC (unique porting code) by sending SMS to 1900. UPC is an alphanumeric code allocated, upon request, by a mobile operator to its subscriber for the purpose of facilitation of porting of his/her mobile number to another operator. SMS to be sent : PORT to 1900. Operator SMS charges will be applicable. Eg. SMS PORT 98XXXXXXXX to 1900 After sending SMS to 1900, you will receive UPC (Unique Porting Code) as a SMS from 1901 giving 8 digit alpha-numeric Unique Porting Code (UPC) and UPC expiry date in MM/DD/YYYY format Visit your nearest airtel outlet / showroom Fill airtel Mobile Number Porting (MNP) form providing details like Current Mobile Number Current Operator name UPC code Submit Address & Id proof documents, self-attested photo and last bill copy of postpaid connection (if applicable) along-with filled MNP form and Customer Agreement Form

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Continued Buy the Airtel MNP SIM card from Airtel outlet / showroom. SIM charges, talktime value and porting charge are non-refundable in the event of cancellation / rejection of port-in request Airtel will send an SMS on your old/existing operators SIM (existing connection) intimating about the porting date and time, i.e. the date and approximate time till when you can continue to use your existing operators SIM card. There will be a 2-hour no service period which will begin after the porting time as given above. The no service period will be between 12 midnight to 5 am during which your mobile service will not be active on any SIM. All efforts will be made to ensure that this no service period causes minimum inconvenience to you After the no service period, you can replace your existing operators SIM card with the new airtel SIM card in your handset Once your Airtel SIM card is activated you would be ready to enjoy airtels high-quality network, innovative value added services and best-in class customer service using your existing mobile number.

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KEY POINTS Toll Free Number 1800 103 1111 Nominal porting fee of Rs.19 at the time of making the porting request MNP would be available only within the same telecom Circle (licensed service area) i.e. you can switch mobile operators within your telecom Circle only. Example a customer from Delhi telecom Circle can switch operators within Delhi telecom Circle and not outside Delhi telecom Circle. Offers: Those who recharge their mobile with 27 rupees will get life time validity along with 1 paisa per second pulse rate for all local and STD calls. This offer remains for one year. Those who recharge with 222 rupees will get full talktime

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AIRTEL GROWTH RATE Airtel added 1,48,215 number of subscribers after MNP Launch Bharti Airtel remains the top player in Indian telecom industry with mobile subscription base of 162.2 million after the end of March 2011 after MNP Launch A irtel is the top most in demand for subscribers across the country to switch to with the help of MNP (ref: Xcelone of Indias leading end-to-end market research firms that provides custom market research solutions)

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For the current year Customer Growth Rate 86% Increase in Revenue 58% Increase in EBITDA 79% Growth in Profit 100%

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Consumers allowed to switch operators only 90 days after a connection is activated. Consumers allowed to change operators within their registered circle only (i.e. if you are within the Gujarat circle you cant shift to a Karnataka circle and so on) LIMITATIONS to MNP

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MNP Statistics From 20th Jan 2011 till end of February 2011, source TRAI

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All India MNP Port-in / Port-out Data All India MNP Port-in / Port-out Data

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Telecommunication Policies Declining ARPU Govt. policies Content Piracy Better Service Quality Healthy Competitive approach for operators Promotes more services to customer Poor Infrastructure Late Adopters Competitive Market Difficult to switch from one operator to other Huge Customer Potential High Growth Rate Liberalization efforts by Govt Lower Capital expenditure for switching between Operators Strengths Weakness Threats Opportunities

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Appendix List of Codes for Service Providers

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Appendix List of Codes for Service Area

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Appendix MNP - SLA Business days: Excludes Sundays and state Holidays Calendar days: Includes Sundays and state Holidays. Port Validation Time: 24 Business hours Hrs. Maximum allowed Time difference between message 1002 and message 1003. Port cancellation Time: 24 Hrs Business Hours. Maximum Time difference between message 1001 and 3001. Port Deactivation and Activation: 1 Business hour each. Total 2 hrs. Non Payment disconnect Initiation : 89 calendar days. Maximum time allowed between 1010 and 7001. Non Payment disconnect response time: 15 calendar days. Maximum permissible time between 7001 and 7003. Port Termination Time: 90 calendar days/3 Months Re Port In Time: 90 days from the time the number is broadcasted

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Thank you !!

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