Recent Trends in Mobile Data Needs

6/25/2010
Changing Needs

Mbps

0
20000
40000
60000
80000
100000
120000
140000
160000
0
200
400
600
800
1000
1200
1400
1600
1800

Mar-09
M
Mar-…
Apr-09
Aprr-09
May-09
May…
M
Jun-09
Jun-09
Jul-09
Jul-09
Aug-09
Aug-…
A
Sep-09
Sep-…
Oct-09
Octt-09
Nov-09
Nov-…
Dec-09
D
Dec-…
Jan-10
Jan-10
ISP Bandwidth (Mbps )

Feb-10
Busy Hour Data Connections

Feb-…
Mar-10
Mar-…
M
Apr-10
(Mbps)

Aprr-10
May-10
May…
M
ISP Bandwidth

Busy Hour PDP

2
subscribers want Internet access and e-mail

How often do you use the

following applications/
services at your commonly
used location? Total India Brazil Croatia Romania Russia Morocco
(n=3834) (n=708) (n=709) (n=500) (n=707) (n=711) (n=499)
(daily/at least once per week)

B
Browsing
i &
searching the web 85 80 92 89 92 83 97

Reading /
sending e-Mails 85 88 86 85 88 76 93

Downloading
music / photos 42 38 38 47 49 37 67
Downloading
videos 27 23 21 32 39 21 46
Watching TV
TV,
streaming movies 23 23 12 16 29 26 53
Uploading
music / photos 33 28 17 34 40 39 50
Playing
y g online
games 28 32 20 27 36 18 34

IP telephony 14 16 16 9 19 51
9

1Source: Mobile Broadband Study, 2008

6/25/2010 3
Changing mobile handset landscape
Laptops：Annual growth of 25%；and shipments exceed Smart Phones：rise 28%, shipments hit new peak of 39.9
desktops in Q3,2008 million in Q3 2008

PC Shipments
p (in
( Millions),
), 2007-2012
400
350
300
Laptops
250
200 Desktops
150
100
50
0
USA

USA

USA

USA

USA

USA
others

others

others

others

others

others
2007 2008 2009 2010 2011 2012 S ce：II DC
Sour

HSPA Terminals: ( May, 2009) Output/Input ready：big screen and high performance
Suppliers: 171; Launched Devices: 1470 （Apple、Google、Microsoft）

•NOKIA N95 8GB •HTC S730 •SAMSUNG G800 •SONY ERICSSON K660i •NOKIA N82
BLACK BEAUTY TOP SMART SHARP SHOOTER SIDE SURFER MULTIMEDIA MAGIC

•LG KU990 VIEWTY •TOSHIBA G910 •MOTOROLA Z10 •SONY ERICSSON W890i
TOUCH OF CLASS WORKERS PLAYTIME •3G iPhone FILM STAR WALK THE TALK

Source：GSA
 India Demographic Profile

Population
Population Growth
Growth Income Profile
1,300
1,269
1254
1,254 Income Profile - 2001 Income Profile - 2015E
1,250 1,239
1,224 < 90,000
1,208 90,000 - 2 Lacs
72.0%
1,193 43.4%
1,200 1,177 < 90,000
1,161 30.4%
1,145
1,150 1,129
1,112
1,100
10+ Lacs
0.4% 10+ Lacs
1,050
5 Lacs - 10 Lacs 90,000 - 2 Lacs 1.4%
2 Lacs - 5 Lacs 2 Lacs - 5 Lacs
0.9% 21.9% 5 Lacs - 10 Lacs
4.8% 22.6%
1,000 2.3%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

P o pulatio n

Age Profile Key Statistics

Age Profile - 2001 Age Profile - 2016E

55+ yrs
55+yrs 55+ yrs
55+yrs Literacy Rate (2001) (%) 61 0%
61.0%
10.2% 13.4% 0-14 yrs
0-14 yrs
35-54 yrs 26.8%
35.4%
20.5% Urban Population (2008) (%) 28.7%

35-54 yrs Urban Population (2016E) (%) 31.6%

23.8%

GDP Growth (2009E) (%) 7.0%

15-34 yrs 15-34 yrs
33.9% 36.0%

Increasing young population and rising income levels will drive the demand for information &
entertainment
t t i t
Source: CrisInfac, Census of India, NCAER, Global Insight
India Telecom Market
MobileMobile
subscriber
subscriberbase &penetration
base & penetration trends
trends InternetInternet
and broadband
and broadbandsubscribers
subscribers
80.0
1200 90% 72.5
78.4% 69.4
74.5% 80% 70.0
1000 69.7%
63.8% 70% 58.2
60.0 55.5
800 56.8% 60%
50.0 45.0
49.0% 42.7
50%
600 40.3% 40.0
40% 33.6
30.3% 991.2 29.4
930.5
858.8 30.0 24.4
400 775.8 30%
20.7% 681.0
13.5%
3 5% 579.4 20% 18.6 18.0
80
471.7 20 0
20.0 15.3
53
200 346.9 10.9
233.6 10% 7.7
149.6 10.0
0 0%
Dec-06 Dec-07 Dec-08 Sep'09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 -
2009 2010 2011 2012 2013 2014 2015
Subscriber B ase M o bile P enetratio n Internet B ro adband

Wireline subscriber
Wire-line subscriber basebase Broadband access technologies (Jun'09)
Broadband access technologies (Jun ’09)
42.0

40.9 41.0 Fiber Radio Others

41.0 40.6
40.3 0.5% 0.9% 0.0%
Leased Line
40.0
Ethernet LAN 0.3%
39 3
39.3
39.0 4.1%

37.9
38.0
37.3
Cable Modem
37.0
7.4%
36.0

35.0
2003 2004 2005 2006 2007 2008 Sep'09
DSL
Wireline Subs 86.7%

With limited wire-line infrastructure,, wireless technologies

g are expected
p to drive broadband
penetration
Source: TRAI, Noble Research. EY Analysis
Growing devices market fuelling broadband
market
300
3G handsets 25%
Computing devices – Installed base
21.4% 70.0

250 57.9
20% 60.0 55.5
53.9
15.4% 49.6
200 50.0 44.9
15% 40 5
40.5 42.0
40.0 36.3

Million
150 10.6% 32.7 34.4
268 29.1 29.9
10% 30.0 24.6
100 6.7% 20.3
191
4.6% 20.0
129 5% 12.5
50 2.8% 8.6
1.8% 81 10.0 6.3
55 47
4.7
1.4 2.7
21 33
- 0% 0.0
2009E 2010E 2011E 2012E 2013E 2014E 2015E 2006 2007 2008 2009E 2010E 2011E 2012E 2013E 2014E 2015E

3G Handsets Handset P enetratio n Deskto ps Lapto ps

Drivers for growth
Drivers for growth
• Falling prices of laptops & Increasing disposable income levels
• Falling prices of 3G enabled handsets & Increasing disposable income levels
• Need to access high bandwidth applications on the go
• Need to access high bandwidth applications on the go
• Need for privacy and individual ownership leading to higher laptop
Wireless Broadband Subscribers growth
Wireless Broadband Revenues
200 8,000

7,000

150 6,000

5,000

100 208 4,000 8,358

155 6,456
3,000
111 4,583
50 2,000
74 2 795
2,795
1,000
34 1,229
13 582
0 -
2011E 2012E 2013E 2014E 2015E 2016E 2011E 2012E 2013E 2014E 2015E 2016E

To tal Subscribers To tal revenues

3G handsets and computing devices are projected to grow at a fast pace fuelling demand
for wireless broadband
Source: EY Analysis
Technologies matching the user needs

Gaming
Full HD
on-line
Mobile TV
USER HD Interactive
EXPERIENCE Mobile TV Gaming
Web Music
Download
Video
Downloa
WAP
d Vid Bl
Video Blog
Chat/Dating
Mobile Office
Video
Teleservices Push-to-View
Ring (IMS-based)
Location Serv.
Back tones
Video Video
SMS/MMS Mobile E-mail Mailbox Conferencing

M2M

VoIP
Voice FMC
LTETECHNOLOGY
WCDMA/HSPA/HSPA+/EVDO
GSM/EDGE/GERAN

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Thank You