Telecom IndustryConnecting the World

Telecom in the real sense means transfer of information

between two distant points in space

Telecom is a huge and varied bastion of technologies, companies, services and

politics that is truly global in nature

A Historical Perspective

World Telecom Evolution

The Indian Story

1851 First operational landlines were laid by

government neat Calcutta 1881

Telephone Service introduced into India 1883

Merger with postal System 1923

Indian Radio Telegraph Company formed

The Indian Story

1932 Merger of ETC & IRT Indian Radio &

Cable Communication Company 1947

Nationalization of Foreign Telecom Companies to form Posts, Telephone & Telegraph (PTT) India

1985 Department of Telecommunications

established

The Indian Story 1986

Conversion of DOT into two wholly state owned companies VSNL for international telecommunications & MTNL for service & metropolitan areas

1994 National Telecom Policy created with motto “Telecommunication for all

& Telecommunication within reach of all” 1995

Entry of GSM in India triggering telecom revolution

1997 Telecom Regulatory Authority of India created.

1883 Merger with postal System

1923 Indian Radio Telegraph Company formed

The Indian Story

1995 BPL Mobile services launched

1997 Telecom Regulatory Authority of India

formed in January 1999

NTP-99.National Telecom Policy with reformed goals set.

2000 1st October BSNL created.

The Indian Story

2003-04 Tele-density growth of 2% >50 yrs

growth 1948-98(1.92 %) achieved 2005

ILD & NLD annual license fees reduced from 15% to 6%.

2008 3G guidelines issued; spectrum

allocation through auction, foreign players allowed to bid.

The Indian Story

2009 TRAI announces rules & regulations to be

followed for Mobile Number Portability on 23rd Nov.

2010 BSNL becomes 1st country to launch

WIMAX service

Latest News : India to launch MNP from Nov 25th 2010….

User Centricity

Prime pillar for Telecommunication Development

Stakeholders in the Business

Value Parameters

Cheap Calling Services Network Coverage Customer Care DTH Programme Packages Internet Speeds offered Number Series offered Push mail services

Value Offerings

Corporate Solutions Solutions by Business Need

Office Centrex Voice Management Centralized High Speed Internet Virtual Private Networks Audio Conferencing IPLC

Solutions by Business Size Work From Home VPN DATA centre Infrastructure

VPN solutions for BFSI, Retail, Manufacturing, IT/ITES & Hospitality Industry.

Value Offerings

Personal Usage 3G Prepaid Mobile Postpaid Mobile Handsets Internet Home Phone Global Calling T.V.

Telecom Network Statistics

Worldwide

Top 10 Countries in terms of Mobile Phone Usage

Rank Country No. of Phones % of Population

- World 5,000,000,000 67.6

1 833,300,000 62.5

2 670,600,000 56.6

3 285,610,580 91

4 213,900,000 147.3

5 191,472,142 98.89

6 168,264,000 73.1

7 109,500,000 65.1

8 107,490,000 130.1

9 107,000,000 84.1

10 88,580,000 147.4

Top Mobile Operators by Number of Subscribers Worldwide in Millions

# Mobile Operator

Operating Regions

Mobile Subscribers

Date

1 China Mobile China 544.2 Apr-10

2 Vodafone EMEA, India, USA, Pacific

341 Mar-10

3 Telefonica Spain, Europe, Latin America

206.7 Mar-10

4 America Movil Latin America 201.1 Dec-09

5 Telenor Eastern Europe, SE Asia

179 Mar-10

6 China Unicom China 155.3 May-10

7 T-Mobile Europe, USA 150.2 Mar-10

8 Telia Sonera Europe, Asia 138.1 Feb-10

9 Bharti Airtel India 133.7 Mar-10

Top Mobile Operators by Number of Subscribers Worldwide in Millions# Mobile

OperatorOperating Regions

Mobile Subscribers

Date

10 Orange Europe, Africa, Caribbean

132.6 Dec-09

11 MTN Group Africa, India 116.0 Dec-09

12 Reliance Comm India 102.4 Mar-10

13 Etisalat UAE 100.0 Feb-10

14 MTS India, Russia, Eastern Europe

97.8 Dec-09

15 Orascom Telecom

Egypt, Middle East & Africa

96.0 Mar-10

16 Verizon Wireless USA 92.8 Mar-10

17 AT & T Mobility USA 87 Mar-10

The Indian Market Scenario

Indian Telecom Providers

Indian Wireless Service Providers

Indian Wire line Service Provider Market Share

Trends & Patterns Observed

Survival of the Fittest

Telecom stands as one of the most essential elements of the business world in terms of “Connecting the World”

Volatile Sector Regulatory discord Cut-throat competition Emergence of Technologies

Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure

To survive, telecom carriers need to consider various options Consolidation, Convergence, Costly Technological upgrades

Global Growth Patterns

Emerging Markets Driving Volume Growth Low Tariffs (ARPUs)

Developed Markets Low Subscriber Base Technological Advancements

Indian Telecom depends on the global telecom industry for technology platforms & network management

WhileIndian market size attracts telecom giants

Rise of 3GBy end of 2010 there will be an estimated 5.3 billion cellular subscriptions including 930 million 3G subscriptions. In 2010 143 countries offering 3G services.

Slowdown in Mobile growthIn developed countries mobile market reaching saturation levels with marginal growth of 1.6% from 2009-2010. Developing world is increasing its share of mobile subscriptions from 53% of total mobile subscriptions at the end of 2005 to 73% at the end of 2010.

Internet StatsWorldwide Internet usage has doubled between 2005 & 2010. By the end of 2010, Internet user penetration in Africa will reach 9.6%, far behind both the world average (30%) and the developing country average (21%).

Trends to be observed in 2011The Most Significant Trend

Other Significant Trends in 2011

Local Landline Services suffer, bundled services pick up slack

3G Cellular Systems, Including EV-DO, Are Enhanced/HSPA+ Offers High Speed Competition to 4G

Chinese, Indian and African Cellphone Markets Skyrocket

VOIP Use Soars and Threatens To Revolutionize Telecom

Other Significant trends in 2011

Telecom Equipment Makers Face Intense Competition from Manufacturers in China

TV over IP—Telecom Companies Enter the Television Market

WiMAX Extends Wireless Range Far Beyond Wi-Fi

Global Trends – Connecting WorldConvergence & Mobility

Mobile Devices withvoice, data & video

Mobile WirelessBroadband

Fibre to Home Communications

Computers & IT

Consumer Electronics

Entertainment becomes Digital Mobile Personal Digital Devices prevail

Laptops & Handheld PCs Entertainment major PC driver IP to & in the Home VoIP handsets

Public Safety Mobile Police &

Fire personnel devices Interoperable Communications

Connecting India to the World

CHALLENGES

Regulatory Policies Lack of level playing field

Penetration Level Across the world and within India Seamless Roaming

Infrastructure Program Manufacture telecom equipment in India Passive Infrastructure Sharing

VoIP Value Added Services

Unutilized software capability Digital Divide

Non Availability of technology, equipment, network access for millions of poor

Indian Telecom – Way Forward to being Global

Transparent and truly technology-neutral Government policies Allow full range of private & Public Sector telco's to compete fairly and fully

Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers

Low regulatory restrictions over new services such as Push-to-talk, IP-enabled services, particularly Voice-Over IP (VoIP)

Ensure level playing field and “No” worse-off position for existing license holders

Duties on imported telecommunications and related equipment must be reduced to zero

To promote competition in IPLC

“Put in Right Policies” for technology multinationals to build business in consumer end user device segments like mobile, handset, PC’s and networking product manufacturing

Acquisitions with “Strategic” intent

Thank You

Vignesh Iyer Sagar Shah Saloni Mamodia