a glimpse into a developing market -...
TRANSCRIPT
A glimpse into a developing marketLloyd Mathias
President & CMOTata Teleservices
San Diego,November 10, 2009
2
India Market
1.1B Population 25,000 Towns 600,000 Villages Source: Census Bureau of India, IDC, QC India
Analysis
• Large Population• Low Teledensity• Very small computer base• Very low wire line broadband
Unique Opportunity
4
India Market
Urban India Rural India Total
Population (M) 350 750 1,100
Households 78 150 228
Wireline Subs (M) 27 11 38
Wireless Subs (M) 237 110 347Wireless Teledensity 68% 15% 32%
Broadband Subs (M) 4.9 0.5 5.4
Computers 28 3 32Computer Penetration per Household 37% 2% 14%
68% Urban Tele-density and increasing, potential Rural opportunity2% Rural Computing Penetration: Significant Opportunity for Rural Broadband
Source: Census Bureau of India, IDC, QC India A l i
5
Youth are the biggest drivers of mobility growth in India
India – The temple of youth
•30% of India’s population is
between 15 -34 years
•Another 30% is below 15 years of
age
• Youth constitutes 57% of the
mobile market
• Youth constantly seek variety &
smart price points
CDMA milestones• 110 million subscribers – May ’09• EV-DO off to a great start – Q1 ‘09• 3rd national CDMA operator – MTS (Sistema), Q2
‘09• OMH launch – July 09• One additional 800 Mhz EV-DO channel to be
auctioned during 3G auction in Jan 10
ROW^ India
CDMA (M)* 15 27.2
ROW^ India
GSM (M) 437 86
*Note: CDMA net adds do not include disconnects from China (14M), Americas (13M) and South Korea (8M). Only positive net adds have been considered for this purpose
India Wireless Subscribers CY08 Net Adds Share
India leads with 64% of global CDMA positive net addsHighest net adds in 2008 at 27M followed by USA at 11M
^ROW: Rest of World
84%
16%
GSM
World India
36%
64%
CDMA
World India
8
Competition and Technology Landscape
• Introduction of mobile technology in India
• GSM – 1995 : CDMA – 2003
• EVDO expected to be introduced end of this year.
• WCDMA is some time away…
• Wi-Max expected to be introduced some time next year.
CDMA27%
GSM73%
4 more launches in waiting
5 Indian Wireless Operators in World’s Top 20(June 09)
Source: Wireless Intelligence,
Source: Wireless Intelligence, Q4’08
India: 2nd largest CDMA Market, Reliance & Tata in Top 5
� Virgin Mobile completes one year of operation ~1.7M+ subs
� Systema-Shyam launch under brand MTS ~ 1M+
� Reliance, Tata and BSNL launch Wireless Broadband ~ Top 40 cities
� Open Market Handset (OMH) commercially launched
CDMA installed base at 100M+ (June 2009)
11
TECH MKT SHARE(%)
BANDOPERATOR PRIMARYINFRA
SUBS(M)
Top 6 Wireless Operator Snapshot (Sept 09 2009)
COVERAGE/ TOT AL CIRCLES
19.5 ALU, HW, ZTE
11.7 NSN, ERIC
25 900: 14/231800 : 9/23
ERIC, NSN
11.6 ZTE, HW, MOTNSN, HW, ZTE
13.3
HW, ZTE
18.8
� GSM
� CDMA2000
� GSM
� GSM
� GSM
� GSM
� CDMA2000
� GSM
23/23
23/23
22/23
22/23
21/23
23/23
12/23
15/23
900: 21/21
800: 23/23
1800: 12/23
800: 22/23
900: 14/221800: 8/22
900 : 8/151800 : 7/15
86
51.5
110.5
51
58.8
82.8
900: 5/221800: 17/22
800: 22/23
MOT, HW
ERIC, NSN
ALU-ITI, ERIC, NSN, NORTEL
� CDMA2000 22/23
12Total INDIA wireless subscribers at 441M+ (Sept 2009) ~ 24%
CDMA
The Two faces of India
Source: Census of India, NCAER, Rural Market Overview 2008, MART, MINT Rural Series
India Urban & Rural Opportunity:Income & Affordability Perspective
Urban India: 295M Population Rural India: 805M Population
74M
62M
159M
80M
241M
483M
Proportion of Prepaid Subscribers
• India predominantly a Prepaid Market• New operators launch aggressive prepaid tariffs
- Passive Infra Sharing between operators
Hurdles to growth
• Limited handsets & absence of some of the big handset brands
- Nokia/ Motorola/Sony Ericsson• Spectrum availability• Roaming concerns
Opportunities
• Drive data usage & EV-DO advantage• Expand the VAS bouquet/ BREW in lower
end devices• Entry level bundling opportunity• Rural penetration/spectral efficiency of
CDMA• Customer specific tariffs• M-Commerce/m Banking• Leverage retail advantage
TTL recently entered the Limca Book of Records by launching 100 exclusive outlets on a single day
5000 Tata Indicom stores
� India’s largest branded telecom retail chain
� Over 5,000 exclusive outlets, occupying 1 Mn Sq Ft of prime retail space
� Extensive handset distribution reach through presence at over 100,000 multi-brand retail outlets
� Recharge vouchers distributed through more than 140,000 outlets
Wireless Broadband inIndia
Tata Photon Plus
Tata 1X Data Card
•EV-Do Rev A launched in Q1
•Significant traction
•OEM tie ups
Source: Operator Website
High End
Mar Apr 2008 FebJan May June July Aug Sep Oct
HaierC2020
HuaweiC2802
Haier2010
LG 3600 LG 3500Classic 161
Coolpad288
LG 6100 Spice C810
vBling
vSleek vkewl
vSwing
Samsung2ON
HTC P3000 HTC S720
vTrendy
ZTE C336
Classic 161
ZTE C335HaierC3010
HaierC3000
Blackberry Pearl 8130
HaierC2821
FLY V80
Moto W362 Huawei2803
SamsungRaaga
LGERD10000
Blackberry Curve
Huawei2901
LG 9100
Nov Dec
HTC Touch Diamond
SamsungSCH-F309
SamsungSCH-M569
Huawei2206
Huawei5100
Huawei5320
LG3610
SamsungB259
SamsungB139
SamsungB279
TATA Virgin
ZTE C310
Low End
Mid End
CDMA Device Ecosystem
60 New CDMA Handset models in CY08; Mid-tier being addressed through open market by Samsung and local brands
26
29
Localized Content Across Popular Segments
�Bollywood
�Cricket
�Astrology
�Devotional
�Location
English Seekho
•IVR based English tutorial on phone
•40 lessons for a fixed fee
•Voice recognition
M-Krishi
• Mobile advisory for Farmers– Crop patterns– Fertilizers– Weather forecasts
• Market Price of agri- produce
