GROWTH GROWTH PROSPECTS OF PROSPECTS OF

INDIA’S TELECOS INDIA’S TELECOS IN 2012IN 2012GROUP MEMBERS:GROUP MEMBERS:

VEDANT PODDAR VEDANT PODDAR PIYUSH K CHANDAK PIYUSH K CHANDAK KESHAV JHAKESHAV JHAMUNNESHWAR SINGHMUNNESHWAR SINGHVIKAS SAINIVIKAS SAINIMOHAMMAD IRFAN MOHAMMAD IRFAN

PRESENTATION PLAN• Introduction by Vedant Poddar• Telecom Investment Attracting Sector by Piyush K. Chandak• Regulatory Framework and its Impact by Keshav Jha• Emerging Trends by Munneshwar Singh• Growth Opportunitiesby Vikas Saini• Growth Avenues (Conclusion)by Mohammad Irfan

INTRODUCTION

• Big market potentiality • socio-economic development • Telecom Regulatory Authority of India

(TRAI) was formed in 1997• Two segments, which are Fixed Service

Provider (FSPs) and Cellular Services. • The sector requires 14 billion units of

electricity annually• India: An Ideal Destination for

Investments in Telecom Sector

Indian Telecom Investment Opportunities(1)

• Second largest telecom penetration, world’s highest monthly additions.

• Indian Telecom sector to witness huge investments .

• Telecom Subscribers to cross 1.5 billion by 2015 and 5 billion by 2020.

Indian Telecom Investment Opportunities(2)• About 25 per cent ( Appx. 300 million) would be 3G/4G

subscribers

• About $ 70 Bn. is estimated to be invested in rolling out green field 2G, 3G/4G

• The total investment in the pan-India broadband rollout

is expected to be $ 20 Bn,.

8

Indian Telecom Industry FrameworkIndian Telecom Industry FrameworkIndian Telecom Industry FrameworkIndian Telecom Industry Framework

Indian Government Indian Government BodiesBodies

Independent BodiesIndependent Bodies

Wireless Planning Wireless Planning and Coordination and Coordination (WPC)(WPC)

Department of Department of TelecommunicatioTelecommunicationsns

Telecom Telecom CommissionCommission

Group on Telecom Group on Telecom and IT (GoT-IT)and IT (GoT-IT)

Telecom Regulatory Telecom Regulatory Authority of India (TRAI)Authority of India (TRAI)

Telecom Disputes Telecom Disputes Settlement and Appellate Settlement and Appellate Tribunal (TDSAT)Tribunal (TDSAT)

Handles spectrum allocation Handles spectrum allocation and managementand management

DoT – Licensee and frequency DoT – Licensee and frequency management for telecommanagement for telecom

Exclusive policy making body Exclusive policy making body of DoTof DoT

Handles ad hoc issues of the Handles ad hoc issues of the telecom industrytelecom industry

Independent regulatory bodyIndependent regulatory body

Telecom disputes settlement Telecom disputes settlement bodybody

Regulatory Framework provides level playing field for all operators Regulatory Framework provides level playing field for all operators

The Department of telecommunications (Government of India) is the main The Department of telecommunications (Government of India) is the main

governing body for the industry. governing body for the industry.

Telephone Regulatory Authority of India (TRAI) assists the Government of India Telephone Regulatory Authority of India (TRAI) assists the Government of India

(GoI) to take timely decisions and introduce new technologies in the country.(GoI) to take timely decisions and introduce new technologies in the country.

RECENT REGULATORY NEWS

A. Liberalization of long distance segment

B. Corruption investigation still on for 2G spectrum

C. Mobile number portability

D. Fresh guidelines for telemarketer.

E. User tally crossed 800 mn.

F. Increase in FDI limit to 74% & 100% in manufacturing

G. New telecom policy expected in Jan 2012

• Advent of 4G • Licensing and sale of spectrum • Below cost pricing and industry profitability• Managing competition• Security• Managing M&A

Concerns…

EMERGING TRENDSEMERGING TRENDS

TELCO GENERATIONS

1G 2G 3G 4G

INTO THE FUTURE

VALUE ADDED SERVICES

Booming Knowledge Sector

major global hub for IT enabled services.

Burgeoning Middle Class

MNs add every year

Rising Income Levels

4th largest economy.

Large Young Population

60% population below age of 35

High GDP Growth

8% -9% p.a. in next coming years.

GROWTHGROWTH

FUTURE GROWTH DRIVERS

CompetitionInnovation leads to

growth

M- Commerce M wallet and Mobile

Banking.

Mobile TV Mobisodes

entertainment video clips.

LBS Market place navigation,

emergency etc.

Video on Demand

Entertainment, news, sports etc.

Mobile Gaming Positive shift of

consumer’s behavior.

GROWTHGROWTH

Technical Opportunities

Data Cardsneed to connect anywhere and

anytime.

17

Basic Services Operators

BSNL

MTNL

Major Players in different segments of Indian telecom industry

Reliance

TTSL

GSM Services Operators

Airtel

Vodafone

Idea

Reliance

TTSL

BSNL

CDMA Services Operators

Reliance

Internet Services Operators

BSNL

MTNL

Reliance

TTSLBSNL

Airtel

TTSL – Tata Teleservices Ltd.

MOBILE SERVICES