Telecommunications 171109

TELECOMMUNICTIONS
September 2009
TELECOMMUNICTIONS September 2009
The focus of this presentation is to discuss the…
 Telecom industry - overview
 Telecom – attracting investments
 Regulatory framework
 Key trends in the telecom industry
 Growth avenues in the telecom industry
2
TELECOM INDUSTRY OVERVIEW
Telecommunications September 2009
Indian telecom industry – a snapshot

• India has one of the biggest telecom markets in the world. It has more GSM subscribers than fixed-lin
subscribers.
• Total telecom subscribers – 494.07 million (August 2009)1
• Teledensity – 42.27 per cent (August 2009)1
• Addition of mobile subscribers (July–August 2009) – 15.08 million1
• Annual growth rate of telecom subscribers (June 2008–June 2009) – 42.68 per cent
• Average Revenue Per User (ARPU) for GSM (as on 30 June 2009) – US$ 3.801
• Telecom equipment market (2008–09) – US$ 24.99 billion2,3
• Handset market (2008-09) – US$ 5.82 billion2,3
• Expected mobile subscriber base (2013) – About 771 million.4
Sources: 1) Exchange rate as on 30 June 2009 (1 US$ = INR 48.64380) , TRAI and TRAI; 2) Average exchange rate for the year 2008–09 and TRAI;
3) Cybermedia; 4) Stockwatch
3
Telephony services (mobile and basic) and internet services

dominate the Indian telecom services market.
• The Indian telecom industry generated

revenues of approximately US$ 32 billion in
2007–081 with a growth rate of 60 per cent
over 2006–07.
• It witnessed a compound annual growth rate

(CAGR) of approximately 29 per cent from
2002–03 to 2007–08.
• The CAGR is expected to stabilise at 16 per

cent between 2007–08 and 2009–10.
Sources: 1) Average exchange rate for the year 2007–08; 2)
TRAI Report
4
Telephony services (mobile and basic) and internet services

dominate the Indian telecom services market.
Telecom Services In India
Internet
PMRTS
VSATs
Radio Paging
GMPCS
Basic Services
Cellular Mobile Services
• The Indian telecom industry can be primarily divided into basic, cellular mobile and internet services. It also
has smaller segments such as radio paging services, Very Small Aperture Terminals (VSATs), Public Mobile
Radio Trunked Services (PMRTS) and Global Mobile Personal Communications by Satellite (GMPCS).
• The mobile services in India are growing more than basic wireline services.
5
The wireless segment in India is much larger than the

wireline segment and is growing steadily owing to
convenience and utility.
Market Share of Basic Services Segments in India (2008–09)
Basic Services
• Basic services encompass fixed wireline and

wireless in local loop (WLL-fixed) services.
• Wireless services hold a major market share of

92 per cent in basic services as compared to the
wireline.
Source: TRAI
6
Government-owned players account for the highest growth

in subscriber base in the basic telephony services segment.
• Government-owned Bharat Sanchar Nigam Market Share of Wireline Service Operators in India (2008-09)
Ltd (BSNL) and Mahanagar Telephone Nigam
Ltd (MTNL) are the two largest operators in
the wire line segment, whereas Bharti Airtel
Ltd is the leader in wireless segment.
• MTNL is present in Delhi and Mumbai,

whereas BSNL covers the rest of the
country.
• Though private players such as Bharti Airtel

and Reliance have registered notable growth,
BSNL still dominates the segment in terms of
wireline subscriber base despite the nominal
decrease in its market share.
Source: TRAI report
7
Reduction in tariffs have led to a constant reduction in the

Average Revenue Per User (ARPU). The gradual decline in ARPU
remains well supported by the increase in subscriber base.
Average Revenue Per User in India

• The ARPU for GSM service in India is much
higher than that for CDMA service. The ARPU
per month for GSM services has declined from
ARPU (US$ per month)

US$ 6.64 for the quarter ending (QE) March
2008 to US$ 4.10 for the QE March 2009, while
that for CDMA services has fallen from US$
3.99 to US$ 1.98 during the same period.1,2
Sources:1) TRAI Report; 2)Exchange rate as applicable on an average

basis for respective quarters
8
Reduction in tariffs have led to a constant reduction in the

Average Revenue Per User (ARPU). The gradual decline in ARPU
remains well supported by the increase in subscriber base.
• The Minutes of Usage (MoU) for GSM have Minutes of Usage (MoU) Per Subscriber
been significantly higher than those for CDMA. Per Month in India
The MoUs for CDMA service have declined
from 364 in March 2008 to 357 in March 2009,
MoU (per subscriberper month)

whereas those for GSM have decreased from
493 to 484 during the same period.
Sources:1) TRAI Report; 2)Exchange rate as applicable on an average

basis for respective quarters
9
The telecom subscriber base in India is likely to reach 500

million by 2010.
Telecom Subscriber Base in India
• The subscriber base grew to 494.07 million (August
2009), registering a growth of approximately 42.67
per cent over last year. It grew at a CAGR of 45.21
per cent from June 2004 to June 2009.
• Teledensity in India is still low as compared to that

in some countries. As on August 2009, India had a
teledensity of 42.27 per cent as compared to the
previous year’s figure of 29.83 per cent.
(in millions)
Source: TRAI Report
Source: TRAI Report 10

Private players have maximum subscribers in the wireless

services segment
• Wireless services have led to significant Market Share Of Wireless Service Operators In India
growth in the Indian telecom industry. (As of June 2009)
• Currently, there are 11 players—Bharti Airtel,

Reliance,Vodafone, BSNL, Tata Tele Services
Ltd, Idea, Aircel, MTNL,BPL, HFCL and
Shyam—active in this segment.
• As compared with 2007–08, the subscriber

base of most wireless service providers has
increased leading to an increase in their
revenues.
Source: TRAI Report
11
Private players have maximum subscribers in the wireless

services segment
• The subscriber base of Bharti Airtel, a leader in Indian Mobile Services Market Share
this market, increased from 69.38 million in (As of June 2009)
2007–08 to 102.37 million in 2008–09, followed
by Reliance (79.62 million subscribers) and
Vodafone (76.45 million subscribers).
GSM preferred to CDMA segment by a large margin in terms of subscriber numbers.
Source: TRAI Report
12
GSM preferred to CDMA in number of additions to

subscriber base
• Bharti has the largest market share in the GSM segment. During 2008–09, out of the total subscriber
base of 328.83 million, private players accounted for approximately 84 per cent, while the public
sector operators (BSNL and MTNL) accounted for the remaining share (16 per cent).
• Reliance Communications dominates the Indian CDMA mobile services segment with a subscriber
base of 54.19 million.
Market Share Of GSM Service Providers (As of June 2009) Market Share Of CDMA Service Providers (As of June 2009)
Source: TRAI Report 13

Various other services emerged by leveraging the telecom

services industry...(1/2)
Radio Paging Services
Radio paging services were launched in India in 1995. This service, however, could not compete
well with cellular services in general and SMS technology in particular and is shrinking continuously.
At present, all but four radio paging service providers have been marginalized in the Indian market.
Very Small Aperture Terminals (VSATs)
At present, there are 8 VSAT service providers in India including BSNL, Bharti Airtel, Hughes
Communication and HCL Comnet Ltd. The number of subscribers of VSAT services increased on a
quarterly basis by 6,108 to 108,328 in June 2009.The market for VSAT services registered a 5.98
per cent growth for the quarter ending June 2009. Hughes Communication is the market leader,
with a market share of 29.4 per cent, followed by Bharti Airtel with 25.9 per cent.
Source: TRAI Report
14
Various other services emerged by leveraging the telecom

services industry...(2/2)
Public Mobile Radio Trunked Services (PMRTS)
PMRTS services have been showing a negative growth. PMRTS’ subscriber base decreased by 2.06 per
cent during the quarter ending June 2009.1 High license fee for this service leaves low margin for
services providers, thereby inhibiting its growth. In India, 12 operators are offering this service to a total
of more than 30,951 subscribers.
Global Mobile Personal Communication by Satellite (GMPCS)
GMPCS2 services were launched in India in 1999. These services allow a subscriber to communicate
with others from any point on earth through a hand-held terminal. Moreover, the telephone number
remains unchanged, irrespective of the subscriber’s location. Iridium India Telecom Limited is the pioneer
in GMPCS services in India. The Government of India has restricted foreign equity participation in this
segment to 74 per cent.
Sources: 1) TRAI Report; 2) DOT
15
Despite a slow penetration rate, the internet services segment

embodies huge growth potential in India.
• The total number of internet subscribers Internet Subscribers: 2000-2009*
increased at a CAGR of approximately
Internet Subscribers(in million)

21.09 per cent from 2000–01 to 2008–09.
Internet Services: June 2009
* The Internet subscribers for the above graph does not include
wireless data subscribers and those with broadband connections
• The total revenue from internet services

increased 4.32 per cent from US$ 400.6 million
in March 2009 to US$ 417.9 million in June
2009.
• Broadband contributed 250.20 million to the

total revenue from the internet services, where
Source: TRAI Report as share of leased line was 93.04 million in
16 quarter ending June 2009.
Despite a slow penetration rate, the Internet services segment

embodies huge growth potential in India.
• The total number of internet subscribers grew Top Five Internet Service Providers by Market Share
(As of June 2009)
from 11.66 million in June 2008 to 14.05 million
in June 2009.This is primarily attributed to an
increase in broadband subscriber base from 4.38
million in June 2008 to 6.62 million at the end of
June 2009.
• BSNL is the biggest player in this market with

7.6 million subscribers, followed by MTNL,
Bharti Airtel, Reliance and Sify Technologies.
• Internet services can also be accessed through

mobile phones (CDMA and GSM). Bharti Airtel
is the leader among the wireless internet
operators with a market share of approximately
24 per cent in June 2008.
Source: TRAI Report
17
The sales for GSM-based handsets have been growing in India as

compared to CDMA-based handsets.
• The handset market in India, consisting of Mobile Handsets Market in India
mobile and fixed handsets, registered an
overall growth of 5.8 percent from 2007-08
to 2008-09.
• The expansion of wireless networks and an

increase in subscriber base, both in urban and
rural areas, led to a boost in the sale of
mobile handsets across India. The mobile
handsets sale grew by 7.9 per cent, while that
of fixed handsets declined by 36.6 per cent
over 2008–09.
Values (in US$ million)
• Out of the total number of handsets sold in
2007–08, 68.3 million were based on the
GSM technology and the remaining (27.3
million) on CDMA. GSM handset sales grew
by 34 per cent as compared to 28 per cent
for CDMA phones.
Source: Voice & Data
18
Nokia, Samsung and Sony Ericsson mobile phones are most

popular in the country.
• Nokia continues to dominate the handsets Market share of Mobile Handset Manufacturers 2008–2009
market. Its market share increased from 62.5 (GSM and CDMA)
per cent in 2007–08 to 64 per cent in 2008–09.
Samsung has the second-highest market share
(10 per cent) in 2008–09.
• LG, Motorola and Sony Ericsson witnessed a

decline in their market share in 2008–09 as
compared to 2007–08.
Source: Voice & Data
19
20
TELECOM - ATTRACTING INVESTMENTS
India – an ideal destination for investments
• World’s largest democracy
• Independent judiciary
• Third-largest telecom network in the world, second-largest among the emerging economies after China
• On an average, approximately 8 million users are added per month, making India the world’s fastest growing
telecom market.
• Liberal Foreign Investment Regime: FDI limit increased from 49 per cent to 74 per cent; the rural telecom
equipment market also open to large investments
• Among countries offering the highest rates of return on investment
• The large untapped potential in India’s rural markets revealed by 9.21 per cent teledensity in rural markets as
compared to the national level of 28 per cent in 2008.
• The government is promoting telecom manufacturing by providing tax sops and establishing telecom-specific
Special Economic Zones
• Fully repatriable dividend income and capital invested in telecom equipment manufacturing
Source: TRAI
21
22
REGULATORY FRAMEWORK
The regulatory framework provides a level-playing field for all

operators.
• The Department of WPC
Telecommunications (DoT) governs (Wireless Planning
the Indian telecom industry. DoT, in Commission)
Spectrum Management
coordination with its arm, Telecom
Commission, looks after licensing, DoT
Licensor and Frequency TRAI
policy making, frequency Management for Telecom Indian Independent Regulator
management, administrative Telecom
monitoring, research and Telecom Commission Industry
development, equipment Exclusive Policy Making
Function of DoT
Framework TDSAT
standardisation and validation along Disputes Settlement
Body
with private investments.
GoT–IT
(Group on Telecom and
• Telecom Regulatory Authority of IT)
Handles ad–hoc issues
India (TRAI) was established in 1997
by DoT to streamline policy reforms
and safeguard consumer interests.
GSM Operators
• The Telecom Disputes Settlement Integrated Fixed ILD Players Private CDMA
Reliance
Vodafone
Bharti
and Appellate Tribunal (TDSAT) was Line
BSNL
VSNL
Bharti TTSL Idea
also established in the same year. MTNL Reliance HFCL Spice
Tata Systema BSNL
Communications Reliance
Source: TRAI Aircel
Bharti
reliance BPL
23

operators.
Unified Access Licensing Regime (UALR)
• The establishment of the UALR (2003) eliminated the need for separate licences for different services. This
regime allowed players to offer both mobile and fixed-line services under a single licence after paying an
additional entry fee. The regime does not take into account the national and international long-distance
services and Internet access services.
• Between February and March 2008, DoT granted 120 new licences to provide Unified Access Services to
various companies, including Datacom Solutions Pvt Ltd, Aska Projects Ltd, Swan Telecom Pvt Ltd, Loop
Telecom Pvt Ltd and S Tel Ltd.
Universal Service Obligations (USO)
• The USO policy was implemented along with National Telephone Policy (NTP) 1999 to widen the reach
of telephony services in rural India. All telecom operators are bound to contribute 5 per cent of their
revenues to this fund. This system was put in place to bridge the wide gap between urban and rural
teledensity, bringing it down from the current 31 per cent. Initially, only basic service providers were
under the purview of USO. Later, its scope was expanded to include mobile services also. Although it
increases the cost burden for telecom companies, USO helps in building the telecommunication
infrastructure in rural areas.
Source: TRAI
24

operators.
Impact of Policy Change on Indian Telecom Industry
Number of subscribers (millions)

Cellular tarrif (INR per minute)
Lowering of ADC Removal of ADC
Telecom Tariff Order UASL, CPP
WLL
NTP 99
Sources: 1) TRAI; 2) Fitch Report
25
Various important regulations and laws have been passed

in the Indian telecom industry post-liberalisation era
Department of Telecommunication (DoT) is the main body formulating laws
and various regulations for the Indian telecom industry.
Mobile
Number
Portability
Communication Convergence Regulations
Private players Bill introduced introduced
were allowed in
Independent ILD services was Intra-circle merger
Value Added BSNL was Number portability 3G policy
regulator, TRAI, opened to guidelines were
Services established Calling Party Pays was proposed
was established competition established Attempted to unveiled
by DoT (CPP) was (pending)
Go-ahead to implemented boost Rural
the CDMA telephony
1994 1999 technology
2001 2003 2005 2007 2009
1992 2002 Internet Unified Access 2004 2006 2008

2000
1997 telephony Licensing (UASL)
Information initiated regime was Broadband
National Telecom Technology policy 2004 was
introduced
Policy (NTP) was NTP-99 led to Act introduced formulated— Decision on 3G ADC removed
formulated migration from high- Reduction of Reference targeting 20 FDI limit was services and Indian
cost fixed license fee licence fees Interconnect million increased from (awaited) Telegraph
to low-cost revenue order was subscribers by 49 to 74 percent Rules
sharing regime issued 2010 introduced
ILD – International Long Distance
Sources: 1) TRAI; 2) Fitch Report 3) India Law Journal

26
27
KEY TRENDS IN TELECOM INDUSTRY
MERGERS AND ACQUISITIONS (M&A)

• The market is witnessing several M&A activities that are resulting in consolidations in the industry.This
trend has assisted companies in expanding their reach in the Indian telecom market to offer better
services to customers.
Recent Mergers and Acquisitions in the Indian Telecom Industry

Deal Date Target Company Acquirer Company Deal Value (US$mn)
September 15, 2009 XL Telecom & Energy Ltd Morgan Stanley Mauritius Co 3.68
August 19, 2009 Wireless TT Info Services Ltd Quippo Telecom infrastructure 1,320.63
July 23, 2009 Words Infocomm Pvt Ltd Lighthouse Funds LLC -
July 20, 2009 Shree Shree Telecom Pvt Ltd Goldstone Infratech Ltd -
July 14, 2009 Spice Mobiles Ltd Spice Televentures Ltd 7.05
July 12, 2009 S Tel Ltd Investor Group 225
July 08, 2009 HFCL Infotel Ltd Investor Group 17.78
June 06, 2009 Spanco Ltd Investor Group 3.93
May 27, 2009 Allianz Infratech (P) Ltd Swan Telecom Pvt Ltd -
Source: Thomson One Banker
28
KEY TRENDS IN TELECOM INDUSTRY
FDI in the Indian Telecom Sector

The Indian government allows FDI of up to 74 per
cent, subject to licensing and security requirements, in FDI in telecommunications sector
the following categories:
• Basic and cellular services

• National/international long distance services
• Value-added services such as PMRTS and GMPCS
• Radio paging service
• Internet services (providing service gateway)
• Infrastructure providers (Category-II)
The Indian government allows FDI of up to 100 per

cent in the following categories:
(US$ millions)
* Estimate
• Manufacturing of telecom equipment
• Internet services (not providing international
gateways)
• Infrastructure providers providing dark fibre, right of
way, duct space, tower (IP Category-I)
• Electronic mail
• Voice mail
29
Source: Ministry of Commerce and Industry
30
GROWTH AVENUES
India presents a host of opportunities for telecom

companies…(1/9)
3G Services
• The Indian government plans to auction the Enterprise Telecom

services
spectrum for 3G services by inviting bids from 3G
domestic as well as foreign players. The 3G
spectrum is among the major investment
Rural
opportunities and is expected to attract Telephony WiMax
investments worth US$ 8–10 billion during 2008–
11. Growth
Avenues
• International and foreign players can enter this Infrastructure

Value–
segment through joint-ventures with Indian Added
Sharing
companies with a stake of not more than 74 per Services
cent. They will also have to pay an additional entry Virtual Managed
Private Services
fee of US$ 344 million to acquire Unified Services Network
Access Licence (USAL).4 Companies such as AT&T
and NTT DoCoMo are planning to enter this
sector.
Sources: 1) TRAI Report; 2) International Business Times; 3) Indiapwire 4) Business Standard 5) e-Eighteen.com Ltd
31
GROWTH AVENUES

companies…(2/9)
3G Services
• The Telecom Ministry would auction four licences for 3G services including one reserved licence
for US$ 4.09 billion.5
• BSNL launched 3G services under the proposed 'India-Golden 50' scheme that allows customers
to make long-distance calls for 50 paise (About US 1 cent) per minute. The subscribers also get
additional features such as video telephony, Internet access, video on demand, mobile TV and
others facilities.3
Sources: 1) TRAI Report; 2) International Business Times; 3) Indiapwire 4)
Business Standard 5) e-Eighteen.com Ltd.
32
GROWTH AVENUES

companies…(3/9)
Worldwide Interoperability for Microwave Access (WiMax)
WiMax has been one of the most significant developments in wireless communication in the recent
past. Since this mode of communication provides network access in inaccessible terrains at a speed
of more than 4 Mbps, it is expected to be a major factor in driving telecom services in India,
especially the wireless services. Thus, it will lead to the increased use of telecom services, internet,
value added services and enterprise services.
ICOMM Tele and Beceem Communications jointly announced the commercial availability of WiMAX
modems for the Indian market.
The Telecom Ministry is also planning to auction three WiMax slots for US$ 1.07 billion with an
approximate auction cost of US$ 358 million each.
Source: TRAI; Indiapwire; Indiapwire; e-Eighteen.com Ltd
33
GROWTH AVENUES

companies…(4/9)
Managed Service
Managed service is another segment that is attracting telecom companies. On account of the rapidly
growing subscriber base, service providers find it difficult to manage their infrastructure and
network. In such cases, they completely or partially outsource their infrastructure or network
management operations.
Bharti Airtel and Nortel entered into an enhanced managed-services agreement in November 2008
that allows Nortel to continue providing contact centre technology (CCT) solutions.
In turn, Bharti Airtel is able to leverage Nortel’s solution to provide its customers with interactive
voice and video response capabilities.
Source: TRAI; Indiapwire; Indiapwire; e-Eighteen.com Ltd
34
GROWTH AVENUES

companies…(5/9)
Infrastructure Sharing
In order to curtail their network deployment costs, many service providers are considering infrastructure
sharing. It is a major step towards India’s ambitious target of 500 million subscribers by 2010.
Infrastructure sharing promises several advantages. Some of which are:

• Significant reduction in initial set up costs
• Increased environmental aesthetics
• Lower operating costs for service providers
• Improved service quality
• Increased affordability for customers
• Faster roll out of services in rural and remote areas
New Guidelines for Infrastructure Sharing in Mobile Telephony
• TRAI has recommended all mobile service providers in India to share infrastructure so as to meet the
requirements of the flourishing telecom industry.
• Its proposal to Department of Telecommunications (DoT) states that the mobile telephony service
providers should have better cooperation among them and have least regulatory interventions.
• The service providers can share active infrastructure if they have entered into a mutual agreement.
• The sharing of infrastructure includes sharing of antenna, feeder cable, nodes, radio access network
and transmission system only.
35
Source: TRAI
GROWTH AVENUES

companies…(6/9)
Virtual Private Network
Virtual Private Network is a private data network that provides connectivity within closed user groups
(CUG) via public telecommunication infrastructure. It is similar to leasing/owning lines and yet getting
exclusive access.
Enterprise Telecom Services
Telecom service providers are increasingly targeting enterprises by providing them dedicated services.
Some of the key services include VoIP, dedicated telecom communication systems; IT infrastructure-
enabled unified communication services, etc. This segment is expected to witness major developments
as the demand for enhanced telecom infrastructure is increasing along with the growth in the
information and communication technology (ICT) industry.
Source: TRAI
36
GROWTH AVENUES

companies…(7/9)
Value-Added Services Value-Added Services in India (2007–08)
The VAS industry in India generated revenue of

US$ 1.2 billion in 2007–08 and is expected to
reach US$ 4.0 billion by 2015.1,2
Major growth drivers for VAS in India
• Increasing focus on localisation and availability

of content in local languages
• Development of M-commerce applications,
such as booking tickets and making bill
payments
• Availability of mobile TV and development of
shows, films, images, news, etc.,
• Availability of complete subscriber data has
helped in reaching niche audience leading to a
growth in advertising revenue through M-
marketing
• Development of video-based applications, such
as video SMS and podcasts
Sources: 1)India PRwire; 2) Exchange rate as on 20 November 2008;
3) Indiapwire 37
GROWTH AVENUES

companies…(8/9)
Current Initiatives
•Mumbai-based Mobile Value Added Service company called Planet41 Mobi-Venture Ltd is planning
an initial public offer in the coming months.
•The telecom companies can leverage VAS services to increase ARPU through content rather than
voice services.
Sources: 1)India PRwire; 2) Exchange rate as on 20 November 2008;

3) Indiapwire
38
GROWTH AVENUES

companies…(9/9)
Rural Telephony Urban – Rural disparity in India
Under the Bharat Nirman Programme, the

government will invest US$ 2 billion, from 2008
Teledensity percentage
to 2009, to set up about 100,000 community
service centres in rural areas to provide
broadband connectivity.
With the teledensity in rural areas at less than

10 per cent against the national teledensity of
approximately 28 per cent in 2008, there seems
to be huge untapped potential for mobile phone
penetration in rural India.
In March 2009,TRAI released recommendations

for accelerating growth of telephony in the rural
areas.
The suggested measures focus on the Universal

Service Obligation Fund (USOF) to empower
effective investments in less-lucrative rural areas.
Sources: 1) TRAI Report ; 2) ZDNet Asia Report; 3) TRAI

39
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TELECOMMUNICTIONS

The focus of this presentation is to discuss the…

 Telecom industry - overview

 Telecom – attracting investments

 Key trends in the telecom industry

 Growth avenues in the telecom industry

Indian telecom industry – a snapshot

• Total telecom subscribers – 494.07 million (August 2009)1

• Teledensity – 42.27 per cent (August 2009)1

• Addition of mobile subscribers (July–August 2009) – 15.08 million1

• Telecom equipment market (2008–09) – US$ 24.99 billion2,3

• Handset market (2008-09) – US$ 5.82 billion2,3

• Expected mobile subscriber base (2013) – About 771 million.4

Telephony services (mobile and basic) and internet services

• The Indian telecom industry generated

• It witnessed a compound annual growth rate

• The CAGR is expected to stabilise at 16 per

Telephony services (mobile and basic) and internet services

The wireless segment in India is much larger than the

• Basic services encompass fixed wireline and

• Wireless services hold a major market share of

Government-owned players account for the highest growth

• MTNL is present in Delhi and Mumbai,

• Though private players such as Bharti Airtel

Reduction in tariffs have led to a constant reduction in the

Average Revenue Per User in India

ARPU (US$ per month)

Sources:1) TRAI Report; 2)Exchange rate as applicable on an average

Reduction in tariffs have led to a constant reduction in the

MoU (per subscriberper month)

Sources:1) TRAI Report; 2)Exchange rate as applicable on an average

The telecom subscriber base in India is likely to reach 500

• Teledensity in India is still low as compared to that

Source: TRAI Report 10

Private players have maximum subscribers in the wireless

• Currently, there are 11 players—Bharti Airtel,

• As compared with 2007–08, the subscriber

Source: TRAI Report

Private players have maximum subscribers in the wireless

GSM preferred to CDMA segment by a large margin in terms of subscriber numbers.

Source: TRAI Report

GSM preferred to CDMA in number of additions to

Source: TRAI Report 13

Various other services emerged by leveraging the telecom

Radio Paging Services

Very Small Aperture Terminals (VSATs)

Source: TRAI Report

Various other services emerged by leveraging the telecom

Public Mobile Radio Trunked Services (PMRTS)

Global Mobile Personal Communication by Satellite (GMPCS)

Sources: 1) TRAI Report; 2) DOT

Despite a slow penetration rate, the internet services segment

Internet Subscribers(in million)

Internet Services: June 2009

• The total revenue from internet services

• Broadband contributed 250.20 million to the

Despite a slow penetration rate, the Internet services segment

• BSNL is the biggest player in this market with

• Internet services can also be accessed through

The sales for GSM-based handsets have been growing in India as

• The expansion of wireless networks and an

Source: Voice & Data

Nokia, Samsung and Sony Ericsson mobile phones are most