1. snldxsdn
Annual Expansion Report

2. 1400 1347
1210
• An overview. 1200 1120
•Types of Services 1000
•Level of Govt. participation. 800
600 Population (In Millions)
•Major Competitors. GDP (US$ )
400
•S.W.O.T Analysis 200
220
194 188
116 113
66 50
61.6 74 87 90
•Scope of Investments.
32 23
0
•Questions.

3. An Overview
 India is the second most populous country in the world
with the Overall GDP of $1.85 trillion (10th overall)
 World’s largest democracy system with multi party model
at its core.
 Indian telecom is the second largest in the world (behind
china) on the basis of telephone users (Both fixed and
wireless).
 The Industry grew over 30 times from 37 million users in
2001 to 960.09 million (Both fixed and wireless) in 2012.
 Fixed lines stood at 31.53 million in May 2012.

4. An Overview
 Total mobile phone active were at 929.37 million in
2012.
 Total Wireless Teledensity were at 79.37% in 2012.
 Total monthly additions were at 8.35 million by may
2012. (Both fixed and wireless lines).
 Fixed line rural density is at 33 % as of May 2012
 Projected Wireless Teledensity is at 84%.
 The Industry in India is rapidly transforming into Next
Gen Network through various telephone
exchange, mobile switching centers and media
gateways using optical fiber or microwave radios.

5. An Overview
 1.18% of household in India have broadband access.
 There were 14.31 million internet users in India as of
May 2012.
 Total ARPU for 2012 stood at $2.36 as compared to
$46.50 in US
 Lowest mobile tariffs in India due to high competition.
 Total revenue generated in 2012 by telecom sector to be
estimated upward of US$50 billion.

6. Types of Services
•Telephone 1000 926
900
•Broadband 800
services 700
Telephone (In
600
•Broadcasting
millions)
500 Internet (In millions)
400 329 Broadcasting (In
millions)
300
200
99
100 19 20
44 37
0 10 0 1.1 14.3
0
1952 1991 2000 2012

7. Fixed Telephone

8. Types of Services
 Telephone (Fixed and Wireless).
 Fixed connections: - Based on copper or optical fibers.
 The cost per connections depend upon the regions with
northern sectors being the cheapest.
 Besides adding future connections the introduction of
FDI also adds to the demand for wired connections.
 Digitization in fixed lines were recently introduced.
 Bulk of the population rely on landline for their internet
connections thus adding to the future demand.
 Interconnectivity charges to be paid to BSNL.

9. Fixed Continued…
 With 31.6 million SHARE
connections in India
0.16
following are the key 0.61
BSNL
0.07
players
4.04 MTNL
 BSNL 4.04
 MTNL 10.49 BHARTI
 BHARTI
TATA
 TATA 11.07
 RELIANCE RELIANCE
 QUADRANT 68.86
QUADRANRT
 SISTEMA
 VODAFONE SISTEMA
VODAFONE

10. WIRELESS

11. 1000
WIRELESS 800
•Subscriber base of more than 929 600
million. (second largest in world) USERS
400 REV ($BILLIONS)
•Estimated ARPU of $2.3 as compared to
$46.32 in US. 200
•Cost per user fluctuates at $1.7 to $2.2. 0
•India has 7,36,354 base transreceiver
stations . 20% of them can handle 3G
services. 0.58% 0.34%
1.85% 0.53%
•India has 75 million Smartphone users. 0.17%
MARKET SHARE
•Smartphone's will grow at a CAGR of over BHARTI
4.64%
30% (US$18 billion) VODAFONE
7.26%
•Wireless handset service grew 16.7% in 20.58% RELIANCE
2012 with revenues adding up to Rupees IDEA
288,882 crore or US$ 64.4 billion. BSNL
8.66%
TATA
AIRCEL
16.88% UNINOR
10.93%
SISTEMA
MTNL
VIDEOCON
12.77% LOOP
14.83%
HFCL

12. Wireless Contd..
•Third highest Teledensity in world with
bulk in urban areas, marked by high
prospect of growth in rural areas.
•3G and broadband services were auctioned
at US$19.2 billion in 2010.
•4G services have been slow to roll out due
to high price, unforeseen policies. Indian
government requires local operators to
partner with global giants to ease the
burden of the costs.
•Private sector hold 88.49% of the market
share; whereas government held agencies
account for remaining 11.51%.
•High competition with at least 7 to 12
companies in the same circle.
•GSM is the dominant form of technology
with around 80% and CDMA being at 20%
of total wireless consumers base.
•Wireless alone generates revenue of
upwards US$31.6billion of estimated
US$35.6 billion.
•Lowest ARPU among fellow nations
fostered by stiff competition and govt.
regulation policies.

13. ARPU IN US$
Wireless Contd. 50 46
•Voice services near saturation in urban 40 33
areas; future growth possible by 30 26
expanding data services and expansion
in uncharted rural areas. 20 12 ARPU IN US$
•Telecom equipment requirement 10 2.3
stood at 6.5% (US$14.3 billion) of the 0
worlds requirement with most of it
being imported.
•2G still to be a dominant force to be
reckon with. (please see graph below).
CONSUMER BASE (Millions)
Mobile Equipment 1500
Break Up by 2015 1004 929
1000
5 CONSUMER BASE
2G 500 327 (Millions)
121 75
50 3G 0
45
4G LTE

14. BROADBAND SERVICES

15. No of Internet Users (In Millions)
BROADBAND SERVICES 600 513
Introduced in 1995.
•Current users at 14.82 million from 14.62 400
245 No of Internet Users (In
million. Increase of 1.37% Millions)
•Annual growth of 16.78% 200 121 101 81
•The global trend of offering internet as
0
valued added services being followed in CHINA US INDIA JAPAN BRAZIL
India.
•Government mandated 256Kbps as a
requirement, however India still ranks at NO OF CONNECTIONS (IN MILLIONS)
110 in Internet speed.
MARKET SHARE
• Bulk of these users are concentrated in 9.47
urban areas, whereas rural areas have
10
N
O
limited exposition. O
•155 Internet service providers in India.
F
19.70% 5 C
• Internet services are slated for explosive 1.37 1.06
O
N
growth in 2013with the advent of mobile 7.20% 0.68 0.37 N
E
NO OF CONNECTIONS (IN
MILLIONS)
payment services in India. User 9.30% 63.90% 0
subscription rate to go over 20 million by
2015. BSNL
•About 75% of the connections are BHARTI
landline based. MTNL
OTHERS

16. BROADCASTING SERVICES

17. 800 723
689
BROADCASTING 600 526
•Launched in 1952, deregulated in 1992. Comprises 399
355 356 NO OF TV'S (IN
more than 500 channels as of 2012. 400 MILLIONS)
199 199
•Employs 3 million people with over US$15 billion 186
156 VIEWERS
in revenue.
200
• 70% of the revenues are generated by advertising 0
and rest by subscriptions.
• TVS being promoted as part of the one of the
value added services in this day and age by local
operators.
ADVERTISING REVENUE (IN MILLIONS-2005 DATA)
•There are 552 million viewers with 462 million on
satellite subscription. $247.27 $236.36
$250.00
•With the onset of High Def services, ad revenues $181.82
$200.00
have been further increased by 6.7%.
$150.00 $120.91
•Regional channels could be set up for US$20
million, whereas national channel could take $100.00
$54.55
ADVERTISING REVENUE
US$100 millions. $50.00
(IN MILLIONS-2005 DATA
•Heavily rely on revenues from Advertising $-
(revenues generated by advertising in 2012 were
US$4.91 billion).
•High competition due to large number of
operators in various regions.

18. LEVEL OF GOVERNMENT PARTICIPATION

19. GOVERNMENT
•The Government of India allowed FDI in 250
250
telecom in 90s with the launch of
Comparison of subscriber base in relation to Tariff
economic revival program.
•At present 74%-100% FDI is allowed in 3G
or less spectrums. Up to 49% is allowed in 200
4G spectrum. 200 190
•The formation of NTP’s (National telecom 180
policies)helped in better foreign
investment flows in India. Current NTP
2012 is released for the fiscal year. 150
•TRAI (Telecom Regulatory Authority of
India) was establish in 1997 to oversee day TARIFF
to day operations related with Telecom
SUBSCRIBERS
sector.
100
•TDSAT (Telecom Disputes Settlement
Appellate Tribunal) was formed in the year
2000 to assist with ranging disputes among 70
operators in Telecom sector.
•With the auction of 3G services TRAI 50 40
45
helped Indian government earn over US$19 35
billion. 20 20
25
16 16
•The subscriber base exploded with the 8 5 5 4 3.5 3 2.7 2
onset of NTP 99. Please see chart for 1.7
0
references
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

20. Government Continued..
•The current government allows operators
to provide fixed and wireless line under
WPC-
one license. SPECTRUM
MANAGMENT
•The government launched USO TRAI
Independent Regulator
(Universal service obligation) along with
NTP 99 to widen the reach of telecom and DoT-
Indian Telecom
Industry Framework
increase Teledensity. License and
frequency
• Pricing policy and execution to be management
TDSAT
approved by TRAI and DOT. Handles Disputes
among operators
•Interconnectivity charges among GoT-IT
Handles Ad-
operators are also to be approved by TRAI Hoc Issues
and DoT.
•NTP-2012 incorporates framework for
increasing the availability of spectrum for
telecom services including triple play
services (voice, video and data) for which
broadband is the key driver. Integred Fixed Line
BSNL
ILD Players
Private CDMA
Reliance
GSM Players
Bharti / Vodafone /
VSNL
•Through the NTP-2012, DoT is floating MTNL TTSL Idea/BSNL/Aircel
tenders that requires 24 fibreOFN
(optical fiber network) of 350,000 miles;
this project will further boost the
interconnectivity between rural and urban
areas.

21. Per the NTP 2012, Govt of India is rapidly developing its communication
abilities and is leaving no stone unturned.
Following are the main excerpts: -
•Increase rural Teledensity from the current level of around 39 to 70 by the year 2017 and 100 by the
year 2020.
•Provide affordable and reliable broadband-on-demand by the year 2015 and to achieve 175 million
broadband connections by the year 2017 and 600 million by the year 2020 at minimum 2 Mbps
download speed and making available higher speeds of at least 100 Mbps on demand
•Simplify the licensing framework to further extend converged high quality services across the
nation including rural and remote areas. This will not cover content regulation.
•Reposition the mobile phone from a mere communication device to an instrument of empowerment
that combines communication with proof of identity, fully secure financial and other transaction
capability, multi-lingual services and a whole range of other capabilities that ride on them and
transcend the literacy barrier.
•Strive to create One Nation - One License across services and service areas.
•Achieve One Nation - Full Mobile Number Portability and work towards One Nation - Free
Roaming.

22. 10’-
THE INDIAN TELCOME TIMELINE 3g Auctioned
2008 – 3G policy
announced, spectrum
auction awaited.
2006 – Number Portability was
proposed
2005- Measures to boost rural Teledensity.
FDI limit was also increased from 49 to 74%
2004 – Intra circle merger guidelines was established.
Broadband 2004 policy was formulated
2003 – Calling party pay was implemented. Unified license regime
was introduced.
2002 – CDMA services launched.
2000-BSNL was established / Reduction of license fees / ILD services opened.
1999 – NTP 99 was launched
1997 – TRAI established
1994 – NTP Formulated
1992 – PVT companies allowed in VAS

23. PRESENT TELECOM MARKET SHARE
Indian Telecom (Includes phone, broadband and broadcasting subscriptions) in 2012
12%
23% AIRTEL
5%
IDEA
VODAFONE
15%
10% RELIANCE
BSNL
12% 10% TATA
OTHERS

24. MAIN COMPETITION

25. •Established in 1995 by Sunil Bharti Mittal. It
generated US$14.49 billion in revenue for 2012
with overall total assets of US$31.85 billion.
Its PPS (price per share is) US$5.82.
•Currently operates in 20 countries. Offering
2G, 3G and 4G services.
•Focuses on B2C (Business to customer) and $16.00
B2B (Business to Business) segments.
$14.20
$14.00
•Fourth largest telecom company in the world
with 261 million subscribers worldwide and $12.00
183.6 million in India alone. $11.20
•Offers various diversified services such as $10.00
STOCK PRICES
broadband, phone (fixed and wireless), TV
subscription services, Airtel money $8.00
TOTAL REVENUE (IN
$7.27
BILLIONS)
(Ecommerce platform ) $6.45
$6.24
$6.00
•Has a business strategy of outsourcing its $5.78
operations to IBM and Ericsson thus further $4.00
reducing its call rate to Rupees 1 or $0.02 /
minute. $2.00
$-
2010 2011 2012

26. •Founded in 1995, currently head by
Kumar Mangalam Birla.
•Had an overall revenue of US$2.8 billion.
•Total Assets of US$5.34 billion in 2011.
•Subscriber (Wireless) base set at 97
million subscriber.
•Current 3G service provider in 11 circles.
•Idea’s ARPU stood at US$2.2 for the year
2012. P
r
•Has a 3G subscriber base of 3.7 million i
Price per share (US$) c
user. e
• Average share price US$ 1.9. $2.00 p
e
•Overall employees at 6489 in 2012 r
•Extensive operational infrastructure in $1.50
s
India. h
a
$1.00
•Involved in PAN-India network for its 3G r
e
distribution to its subscribers.
$0.50 (
•Offers wireless services as of 2012. U
S
$-
2010 2011 2012
Price per share (US$)

27. •Came into existence in the year 2000 by MARKET SHARE IN WIRELESS, BROADBAND AND
diverging DoT (department of telecom was WIRELESS
divererged into BSNL)
•Generated revenues worth US$5.08 billion in 10.93
2012.
•BSNL has the largest 3G network in India.
Additionally, BSNL 3G services usually cover
not only the main town/city but also the
adjoining suburbs and rural areas as well. As of
now BSNL has 3G services in 826 cities across
68.89
India. WIRELESS
•Wireless subscriber base of 97.7 million.
•Broadband share of 9.7 million subscription 63.89 BROADBAND
•Fixed line share of 68.8 % at 24.2 million
subscribers.
FIXED LINE
•Total operational assets are based at US$21.41
billion.
•Net income based at –US$1.61 billion (incurred
losses in 2012)

28. VODAFONE
Global Coverage as of
2012
•Vodafone revenue for 2012 at US$5.2 billion.
•Vodafone is a successor to Essar + Hutch
collaboration.
•operational profit margin increased to 28.4 per
cent as a result of increasing operating
efficiency, based on scale and lower customer
acquisition cost.
•Vodafone annual ARPU at US$3.26 in 2012.
•Has 141 million wireless subscribers.
•Vodafone India is a subsidiary of Vodafone
Global.
•Vodafone paid US$2.6 billion (the second
highest. Vodafone India Revenue (in US$ Billions)
•amount in the auctions) for spectrum in 10
circles. The circles it will provide 3G in are 8 6.6
Delhi, Kanpur, Gujarat, Haryana, Kolkata, Mah
arashtra & Goa, Mumbai, Tamil Nadu, Uttar
5.3
Pradesh (East) and West Bengal. 6 4.9
•Vodafone also operates 3G services in
Kerala, Andhra Pradesh and Uttar Pradesh Vodafone India
(West) through an agreement with Idea and in 4 Revenue (in US$
Karnataka through an agreement with Airtel. Billions)
This gives Vodafone a 3G presence in 13 out of
22 circles in India 2
0
2010 2011 2012

29. •Ranks among the top 5 telecommunications
companies in the world by number of
customers in a single country.
•Headed by Anil Dhirubhai Ambani.
•Generated revenues to the tune of US$2.02
billion in 2012.
•Has total assets worth US$14.65 billion
•Generated net income of US$28.39 million
in 2012.
•Has 28000 employees on its payroll.
•The company has established a pan-
India, next-generation, integrated (wireless
and wire line), convergent (voice, data and
video) digital network that is capable of
supporting services spanning the entire $3.00 $2.91
communications value chain, covering over
24,000 towns and 600,000 villages. $2.02
•Reliance Big TV offers its 1.7 million
$2.00 $1.65
$1.34 $1.49
$1.27
customers DVD-quality pictures on over 200 Reliance Stock Comparison
channels using MPEG-4 technology. $1.00 Reliance Revenue
•Reliance Communications paid US$1.8
billion for 3G spectrum in 13 circles. $-
2010 2011 2012

30. STRENGTH
LENSER
THREATS S.W.O.T WEAKNESES
ANALYSIS
OPPURTUNITY

31. STRENGTHS
Global ARPU @ $29.98
Largest telecom infrastructure in the world Annual global Wireless subscribers at 335
(US$108.98 Billion) million.
2012 Global sales pegged at US$42.56 Largest OFN facility in the world (annual
billion. production @ 400,000 miles)
Net Income in 2012 @ US$8.9
US$100.62 billion in cash flow reserves
Providing time tested Value added services Annual stock price for 2012 at US$22.56 Extensive dealership network in over 89
in 29 nations nations
Global impressive brand image
Global Operational costs down by 2.9% Merger /Acquisitions in over 89 nations
Robust research and development
Pioneer in GPS technology department (Annual patent fees revenue Overall global penetration @ 66% in
from various organizations at US$2.9 subscriber base.
Billion)

32. w
E
A
K
N
E
S
E
S

33. Our global presence
and strong financials
allow us to compete
with the competition
in India. The key to
generate profit will be
lower costs and quality
service at
Advent of acquisition or merger can
lower cost of entry in Indian scenario.
TRAI and DoT are efficient telecom Wireless market in metros is saturated
regulators as compared with agencies but rural areas is majorly untapped.
in other countries . Approx 67% of the population lives in
rural areas. This vast market has a
Mobile Broadband is slow to pick up; potential of another $8.9 billion in
our global pioneer position with
discounted value added service could
value added services. OPPORTUNITY
be beneficial factor Manufacturing telecom equipment is
our forte that India has so less to offer.
The relative young generation of the Further $6.8 billion can be generated
populous also adds to the lucrative by manufacturing telecom equipment.
market of the smart phones.
The introduction of
FDI in various sectors
in particular Retail
would boost the
demand for wire line
based broadband. The
potential market is
estimated to be $8.9
billion in 2013.

34. The presence of a coalition in the federal
government structure creates policy paralysis
in the Indian scenario (important decisions
impacting economic growth and welfare are
difficult to pass due to the vested interests of
various political parties and groups)
Developing own telecom infrastructure will be a
challenge as to get the laws passed will take
considerable time and would be met with
opposition from the competition.
Cut throat competition in India is the biggest The 2G scam in 2008 brought out the
threat (Reliance, Tata , BSNL have incurred vulnerability of the security of foreign
loses due to loss-$1.9 billion combined in investment in India. The reversal order by
revenue and rising costs). Supreme court of India incurred losses in
Global financial scenario (India seems to have billions of dollars on various Multi national
dodged the 2008 crises bullet but is telecom carriers. Although lobbying in illegal in
experiencing slower growth in 2012). India but on the other hand very little or
nothing is accomplished without lobbying.
THREATS

35. INVESTMENT IN INDIA? WHY NOT!!
Yes, the political situation in India is very delicate and fragile. Lobbying is illegal and a necessary evil. India has the lowest
ARPU and cut throat competition. But we shouldn’t forget this lucrative market because of these following reasons: -
 Second most populous country in the world with overall disposable income per person at $1,326 annual.
 An upcoming younger generation eager to get their hands on a Smartphone (an estimated $18 billion dollar market in
next 2 years – we pioneered with Apple and introduced I-phone to the world, a similar wind in India could add at least
give us $6 billion of that share.)
 We are known leaders in the telecom equipment manufacturing; India relies on the imports of the telecom equipment.
By setting up a production plant we can bank on to capturing at least $4 billion of the $6.5 billion equipment market in
India.
 Our strong financials and global presence can help us manage our losses for first five years as we catch on with the
competition and dig in for the long haul. (With the full nationwide thrust we are expecting to incur $656 million in
losses in the first year with an increment of 12.8% every other year).
 Losses would be generated into profits by eliminating local carriers and capitalizing on the vast untapped rural
network.
 Losses would also include getting spectrum licenses in all circles thus setting up our infrastructure (cell towers, OFN).
We wouldn’t have to pay hefty interconnectivity charges to any carriers except BSNL. This would help us on saving on
operational costs.
 India’s growing economy needs more faster network, we are leaders in innovation and pioneers in establishing new
technology through time – place tested measures. Our overall global assets @ $110.89 billion would come in handy in
the Indian Market.

36. •UPON REQUEST
•----Rohan krishan