Operators – Subscriber Base Study

Subscriber Base: GSM & CDMA

800
Mi l l i on s

687
668
700 652
633
616
600
580
600 560
538 205
505 195 200
471 487 189
178 183
500 441 457 172
427 158 166
415 138
126 132
400 115 121
108 111
300
444 457 468 482
200 408 422 433
355 367 380 394
307 316 326 336 345
100

0
9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0
'0 '0 '0 '0 '0 t'0 v'0 c'0 '1 '1 r' 1 r'1 '1 '1 l'1 '1
ay Ju
n
Ju
l y
Au g
Se
p
Oc No D e Ja
n
Fe
b
M
a Ap ay Ju
n Ju Au
g
M M
GSM CDMA

Source: COAI & AUSPI

 Su bsri b e r - Ne t Add i ti o n
Million
M

10
15
20
25
30
35

0
5
ay
'0
Ju 9

9
3
12
n'
0
Ju 9

9
3
ly

12
'0
Au 9

4
14
g'
0
Se 9

6
16

10 10
p'
0
Oc 9

9
6
15
t'0
No 9 6
16

10
v'0
De 9

GSM
6
18

12
c'0
Ja 9
33

n'
1
Fe 0
8
20 22

b'
1
M 0
6
20

ar

CDMA
'1
Ap 0
6

13 14 14 14
20

r'
Net Addition: GSM & CDMA

M 10
5

ay
16

'1
Ju 0
6
17

11 11

n'
10
Ju
6
18

12

l'1
Au 0
6
17

11

g'
10
5
19

14

Source: COAI & AUSPI

 Total Wireless & Teledensity

700 60

Percentage
Millions

49.6
600
44.72 50
40.3
500 36.64
33.71 40
400 29.96
27.32
30
300

20
200

100
10

0 0
Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Mar '10

Wireless Subscribers Teledensity

Source: TRAI
 Operator Market Share - GSM

Bharti Airtel: 141 mn

35% Vodafone: 113 mn
29.3% BSNL: 70 mn
30% Idea: 69 mn
23.6%
25%
Market Share

20%
14.6% 14.5%
15%

10%
6.1%
5% 3.2% 3.1%
1.9% 1.0% 0.8%
0.6% 0.6% 0.3% 0.3% 0.0%
0%

Source: COAI
 Operator Market Share - CDMA

Reliance: 116 mn
60%
56.80% TATA: 78 mn
Shyam: 61 mn
BTVL: 32 mn
50%

40% 38.10%
M arket Sh are

30%

20%

10%

3.00%
1.56%
0.55%
0%
R e lia nc e TATA S hya m B TVL HF C L

Source: AUSPI
 Telecom Industry Snapshot – Wireless Subscribers

Sep. ‘09 Dec. ‘09 Mar. ‘10

Sep’09 Dec’09 Mar’10

Total Wireless Subscriber 471 mn 525 mn 584 mn

Urban Subscribers 330 mn 361 mn 393 mn

Rural Subscribers 142 mn 165 mn 191 mn

CDMA Subscribers 101 mn 104 mn 106 mn

Teledensity 40.31% 44.72% 49.60%

Urban Teledensity 94.98% 103.20% 112.03%

Rural Teledensity 17.22% 19.95% 23.08%

Bharti Airtel Leading with 29.33% Market Share (141 mn Subscribers)

(As on Aug’10)

Source: TRAI, COAI & AUSPI

Handset Market
GSM & CDMA Handset Sale
 GSM – Market Scenario
1. On an average around 10 mn units sold every year (25% being Dual)
2. Nokia has been consistently loosing its Market Share, Samsung has been consistently gaining (Guru Series Phone)
3. Chinese Market Share due to increasing demand for Dual SIM has been increasing
4. As an Indian Brand Spice & Micromax have been gaining high volumes
5. Overall Segment size of 1.5K ~ 4.5K has grown

Market Share Segment Share

*GSM Data
Dual SIM & Chinese
GSM Handsets
Dual SIM
Dual SIM : Market Trend & Segment
• Dual SIM rising as Operators drive differentiated value (Lifetime, Call Rates,
Data,
Promotional Offers/Trial Packs)
• Dual SIM contributed 84% in Jan’10 but 79% in Apr’10 (Purchase for Single SIM
is increasing)
• Corner a large portion of Utilitarian Zone ($40-$80)
• 2-3K represents 17% of Mkt by Unit & 3-4K represents 13%
Dual SIM Trend Dual SIM Segment Contr%

Qty%
Qty%

(Rs.)

Source : GFK Top 35 Report

Dual SIM : Market Share
• Emergence of Local Brands driving Dual SIM Biz
• Videocon & Onida (Cons. Durable Brands) join the race for MS
• Micromax is clear leader with differentiated models & media promotions
• Karbonn & Spice increase media spends
• Samsung launched 3 Models in last Qtr

Dual SIM MS
100%

43.4%
51.4%
59.5% 59.2% 58.8%
68.6%

50%
11.2%
9.1%
10.0% 12.3%
13.2% 11.2% 10.1%
10.4% 7.7% 8.1%
7.3%
4.7% 22.2% 25.8%
12.8% 15.8% 16.3%
8.6%
0%
200906 200907 200908 200909 200910 200911
MICROMAX SPICE KARBONN SAMSUNG
FLY ONIDA VIDEOCON OTHERS

Source : GFK Top 35 Report

 Dual SIM : Top 24 Model (60% of Vol)
RRP Micromax [6/24] Karbonn [4/24] Spice [2/24] Others [12/24]
($) SS C5212
Q3
K444 M5252
4
2
X250 K451 1.3MP, BT
1.3 MP, BT 1000 mAh
Full QWERTY 1 VGA, MP3, BT VGA, MP3, BT
1000 mAh Torch, Motion Games
Torch, 8GB Exp
VGA, MP3, BT, 1800mAh 1300 mAh
VGA, MP3, BT, Alfatel H1
X225 Torch, 2GB Exp Torch, 4GB Exp FXD S80i Maxx MX533
1100 mAh FXD S90i
1300 mAh
$60
5 K217
2.6” Touch,
VGA, MP3,
Touch Panel, Touch, VGA, 1.3 MP, 8 GB Exp
BT, 2GB Exp 2 MP, BT
1.3MP, BT, BT, Exp. Mem 900 mAh
700 mAh 2GB Exp
X116 VGA, MP3 2GB Exp 1050 mAh
BT, 2GB Exp SigmaTel T99
G Five U800
X21 700 mAh
3 NKTEL 2008
7 MP3, 8GB Exp
1800 mAh
VGA, 4GB Exp 1.3 MP Flash, BT 2.4” 1.3MP, BT
1800mAh 1000 mAh Super Bass, Exp Mem
$50 Touch Scr,1.3MP,BT
Exp Mem Sigmatel S90
M4580
K330
6 GEEPEE 2144 10

NKTEL A200 Half Touch,

X114 Torch, 4GB Exp FLY DS100 1.3 MP, BT
MP3, 4GB Exp 1500 mAh 1800 mAh
8 1100mAh 9 Mp3, 4GB Exp
1800 mAh
$40
MP3, 2GB Exp, Torch MP3, Exp Mem Touch Panel, VGA,, BT
1050 mAh 1000 mAh 1200 mAh

•Top 25 Models according to GFK Sales

•Chinese E71 not considered
Dual SIM : Media Snippets

Videocon TVC

Micromax MTV Phone TVC

Micromax EZPad TVC

Spice TVC

Cricket Series Sponsors Spice Celeb Endorsement

Dual SIM : Micromax

Micromax EZPad TVC

Micromax MTV Phone TVC
Dual SIM : Spice Mobiles

Spice TVC
Chinese Handsets
Chinese Handsets
Chinese : Market Trend & Segment

• Chinese handsets offering cheap handsets & are relevant largely in 2-3K ($45-65) Price
Segment
• Big Battery, Big Screen & Big Sound and additional features are key selling points
• Either Procured or Traded in Grey Market
• Sold as is basis, No Service or Support

Chinese (GSM) Handset Chinese Handset Segment Contr%

100% 100%

Qty%
Qty%

50% 50%

9.6%

1.2%
2.1% 2.1% 2.2% 25.9%
2.1% 1.9% 2.2%
14.6%
4.4% 3.8% 5.2% 6.4% 6.1% 6.1% 0.8% 0.3% 0.0% 0.0%
0% 0% 0.6% 1.0% 0.3% 0.0%
200906 200907 200908 200909 200910 200911 1-2K 2-3K 3-4K 4-6K 6-8K 8-10K (Rs.)
CH-DUAL CH-SINGLE BRANDED CH-DUAL CH-SINGLE BRANDED

Source : GFK Top 35 Report

Chinese : Price Bandwise Feature Offering

Price Range Branded Players Indian Brands Chinese Brands

3-4K VGA Multimedia, 1.3

Branded M/S : 53%
Indian Brand M/S : 31%
Chinese Brand M/S : 16%
1.3~2 MP Dual SIM
Phones, Touch Screen
Dual SIM, TV Out,
Touch Screen Phones,
MP Phones
Phones Mega Pixel 2~5MP

2-3K
Dual SIM, 1.3MP~to 3.2 MP
MP3, VGA with Dual SIM VGA, 1.3 MP Phones with Bluetooth,
Branded M/S : 49%
Expandable Memory, Multimedia Phones, Loud Metallic Design, Very Loud
Indian Brand M/S : 15% BlueTooth Sound Proposition Sound, Touch/Big Screen,
Chinese Brand M/S : 36% 1800mAh Battery

0-2K Single SIM FM Phones,

Differentiation on features
Dual SIM FM & MP3
Phones with Expandable
MP3, VGA/1.3MP with
Expandable Memory, Dual
Branded M/S : 94% like Wireless FM, Screen SIM, Dual SIM Touch
Indian Brand M/S : 4.5% Memory
Size, Solar, Dual Speakers Phones, Large Batteries
Chinese Brand M/S : 1.4%
Summary :

• Dual SIM represents a Big opportunity in 3-4K price segment.

• Branded Dual SIM has redefined Value Proposition in this segment along with Big
Battery, Big Sound & better Design

• ‘Dual SIM Qwerty’ & ‘Basic Multimedia with Big Battery & Sound’ deliver winning
Story so far.

• Chinese Phones (Unbranded) offer “Cheap” phones with great Battery & Sound in
2-3K price segment. They have low reliability & service backup

• Over 70% of Unbranded Chinese Handsets are also Dual SIM

• Dual SIM has universal appeal as a Feature

End of Document