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Ibef Telecom Report

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Telecommunications

NOVEMBER

2011

For updated information, please visit www.ibef.org

1

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

2

Telecommunications
Advantage India
Strong demand


NOVEMBER

2011

Attractive opportunities


2014E
Number of subscribers: 1 billion

Telecom’s revenues rose at a CAGR of 18.1 per cent during 2006–10 India is the second-largest telecom market in the world with 752 million subscribers as of December 2010



By 2012, the total telecom outreach in the nation’s rural markets is expected to be close to 40 per cent India is expected to feature among the top 10 broadband markets by 2013



Advantage India
Better telecom ratings


Policy support


The country has strong telecom infrastructure Compared to peers in western and Asian countries, India has a comparative advantage in telecom ratings



The Government of India aims to develop the nation as a global telecommunication hub and provides regulatory support to the industry to achieve the goal Government has released Draft National Telecom Policy – 2011; proposes ‘infrastructure’ status to telecom

2005
Number of subscribers: 189.9 million



Source: BMI (Business Monitor international) Report, Aranca Research
ADVANTAGE INDIA

For updated information, please visit www.ibef.org

3

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

4

Telecommunications
The telecom market is split into three segments

NOVEMBER

2011

Mobile (wireless)

• Comprises establishments operating and maintaining switching and

transmission facilities to provide direct communications via airwaves

Telecom

Fixed line (wireline)

• Consists of companies that operate and maintain switching and

transmission facilities to provide direct communications through landlines, microwave or a combination of landlines and satellite link-ups

Internet services

• Includes internet service providers (ISPs) that offer broadband internet

connections through consumer and corporate channels

Source: Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

5

Telecommunications
Rising telecom revenues … (1/2)

NOVEMBER

2011



India emerged as the second largest telecommunication network in the world in 2010 Wireless & wireline revenues rose at a CAGR of 13 per cent during FY07-1 1
Notes: CAGR – Compound annual growth rate

Wireless & wireline revenues in USD billion
40 35.8 35 31.7 30 26.9 25 20 15 10 FY07 FY08 FY09 FY10 FY11 21.9 32.9



Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

6

Telecommunications
Rising telecom revenues … (2/2)

NOVEMBER

2011



The internet access revenues have increased to USD3.6 billion in 2010 from USD1.7 billion in 2006 at an impressive CAGR of 20.6 per cent during 2006-10 Revenues are forecasted to increase to USD5.9 billion by 2015

Internet access revenues in USD billion
4 3.2 3 2.5 2.2 3.6



2

1.7

1

0 2006 2007 2008 2009 2010

Source: Datamonitor, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

7

Telecommunications
Mobile teledensity is growing at the expense of fixed line … (1/2)

NOVEMBER

2011



The mobile segment’s teledensity surged 4.7x from 13.5 per cent in 2006 to 63.2 per cent in 2010
Notes: Teledensity – The number of telephone lines for every 100 people in a country 2006 2007 2008 2009 2010

Mobile (wireless) segment’s teledensity

13.5% 20.4% 30.0% 44.7% 63.2%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

8

Telecommunications
Mobile teledensity is growing at the expense of fixed line … (2/2)

NOVEMBER

2011



Fixed line’s teledensity declined from 3.6 per cent in 2006 to 3.0 per cent in 2010. However, revenues increased in the period
2006

Fixed line segment’s teledensity

3.6%

2007

3.4%

2008

3.3%

2009

3.2%

2010

3.0%

Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

9

Telecommunications
Strong growth in mobile and internet subscriptions … (1/2)

NOVEMBER

2011



Mobile subscriptions went up at an impressive CAGR of 49.7 per cent during 2006–10 Mobile penetration rates reached 140.5 per cent in urban areas and 30.1 per cent in rural areas as of December 2010
Notes: CAGR – Compound annual growth rate

Mobile (wireless services) subscriptions (in million)
800
700 600 500 400 300 200 100 0 2006 2007 2008 2009 2010 149.6 233.6 346.9 525.1 752.2



Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

10

Telecommunications
Strong growth in mobile and internet subscriptions … (2/2)

NOVEMBER

2011



Internet subscriber figures went up to 18.7 million in 2010 from 8.6 million subscribers in 2006, at a CAGR of 21.4 per cent Top 10 Internet Service Providers (ISPs) together hold 95 per cent of total internet subscriber base, while state owned BSNL is the market leader with 57 per cent of market share
Notes: CAGR – Compound annual growth rate; BSNL – Bharat Sanchar Nigam Ltd

Internet subscriptions (in million)
20.0 16.0 12.9 12.0 8.6 8.0 4.0 0.0 2006 2007 2008 2009 2010 10.4 15.2 18.7



Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

11

Telecommunications
Fixed line revenues growing; BSNL is the market leader … (1/2)

NOVEMBER

2011



Fixed line’s revenues increased at a CAGR of 5.6 per cent from USD6.6 billion in 2005 to USD8.2 billion in 2009 The market is forecasted to accelerate at a CAGR of 7.2 per cent during 2009–14, to reach USD1 1.6 billion by the end of 2014

Fixed line revenues (in USD billion)
9 8 7.9 6.6 7.1 7.5 8.2



7 6 5 4 3 2

1
0 2005 2006 2007 2008 2009

Source: Datamonitor, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

12

Telecommunications
Fixed line revenues growing; BSNL is the market leader … (2/2)

NOVEMBER

2011



BSNL is the market leader with a market share of 73.1 per cent, MTNL is second with 9.9 per cent Private players like Bharti, Tata and Reliance are growing y-o-y, commanding an increasingly significant share
Notes: y-o-y is year-on-year

Fixed line market share (2010)
3.5% 0.6%



3.6% 9.3% 9.9% BSNL MTNL Bharti

Tata teleservices
Reliance 73.1% Others

Source: BMI, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

13

Telecommunications
Strong growth in broadband drives internet access revenues … (1/2)

NOVEMBER

2011



Broadband subscription increased at an impressive CAGR of 51.9 per cent during 2006–10 The market is forecast to accelerate at a CAGR of 61.1 per cent during 2010–15, to reach 1 17.6 million by the end of 2015
Notes: CAGR – Compound annual growth rate

Broadband subscriptions (in million)
12 10 8 6 4 2 0 2006 2007 2008 2009 2010 2.1 3.1 5.5 7.8 10.9



Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

14

Telecommunications
Strong growth in broadband drives internet access revenues … (2/2)

NOVEMBER

2011



Of the total broadband subscriptions in the country:


Market break-up by broadband subscriptions (2010)
BSNL 16.5% Bharti Airtel 11.5% 20.3% MTNL Hathway Cable and Datacom 35.0% Others

BSNL topped with 6.3 million subscriptions
16.7%



Bharti Airtel followed at the second place with 1.3 million subscribers
Notes: BSNL – Bharat Sanchar Nigam Ltd; MTNL – Mahanagar Telephone Nigam Ltd

Source: BMI Report, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

15

Telecommunications
Key companies in the market

NOVEMBER

2011

Company

Ownership

Presence

Mahanagar Telephone Nigam Ltd (MTNL)

Government (56.3 per cent)

Fixed line and mobile telephony (in Delhi and Mumbai), data and internet Fixed line and mobile telephony (GSM – outside Delhi and Mumbai), data and internet in 22 circles

Bharat Sanchar Nigam Ltd (BSNL)

Government (100 per cent)

Reliance communications

ADAG Group (Approx 64 per cent) Bharti Group(45.50), SingTel (15.57 per cent), LIC India (5.0 per cent) Vodafone (74 per cent), Telecom Investment India (19.5 per cent)

Mobile (CDMA) and Broadband

Bharti Airtel

Broadband and mobile (GSM) in 22 circles

Vodafone Essar

Broadband and mobile (GSM) in 22 circles

Source: Companies’ websites, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

16

Telecommunications
Notable trends in the Indian telecom sector

NOVEMBER

2011

• The green telecom concept aims at reducing the carbon footprint of the telecom

industry through reduced energy consumption

Green telecom

• TRAI initiated a consultation process in May 2010, requesting inputs from firms

across the telecom value chain to provide recommendations on green telecom’s framework and implementation
• Rural markets are expected to be the next key growth drivers for the Indian

Expansion to rural markets

telecom sector, given the country’s growing rural population and disposable income
• By 2012, the rural subscriber base is anticipated to account for nearly half the total

subscriber base, thereby fuelling the sector’s growth
• BWA technologies such as WiMAX have been among the most significant recent

Emergence of BWA technologies

developments in wireless communication
• WiMAX is likely to attract around 8 to 10 million subscribers and account for

around USD1–1.5 billion by 2012

Outsourcing noncore activities

• As part of the recent outsourcing trend, operators have outsourced functions like

network maintenance, IT operations and customer service
Source: Aranca Research Note: BWA – Broadband Wireless Access, TRAI – Telecom Regulatory Authority of India

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

17

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

18

Telecommunications
Sector benefits from rising incomes, growing young population

NOVEMBER

2011

Growing demand

Policy support Strong government support Reduction in the license fee
Inviting Resulting in

Increasing investments

Rising incomes

Rising FDI

Growing young population

Relaxed FDI Norms

Lucrative M&A opportunities

Increasing MOU

Encourages firms to expand to rural areas

Notes: FDI – Foreign direct investment; MOU – Minutes of use per month and per subscriber; M&A – Mergers and acquisitions

For updated information, please visit www.ibef.org

GROWTH DRIVERS

19

Telecommunications
Rising incomes fuel demand for telecom services … (1/2)

NOVEMBER

2011



The increasing per-capita income is set to touch INR65,000 by 2016
2,060

Rising per-capita income



It is projected to rise at a CAGR of 7 per cent during 2009–16 The growth in the per-capita income drives demand for telecom services
USD

1,860 1,660 1,460 1,260 1,060 860



660
460 FY00 FY02 FY04 FY06 FY08 FY10E FY12E FY14E FY16E per capita income, current prices

Source: IMF, Aranca Research

For updated information, please visit www.ibef.org

GROWTH DRIVERS

20

Telecommunications
Rising incomes fuel demand for telecom services … (2/2)

NOVEMBER

2011



The emergence of an affluent middle class is triggering demand for the mobile and internet segments A rising young population is increasingly purchasing mobile phones and mobile internet services Thus, the increase in this population segment implies more demand for telecommunications

Indian residents shifting from low to high income groups
70 60 50 40 million households Aspirers: annual income INR90,000200,000 Seekers: annual income INR200,000500,000





30 20 10 0 2005 2010 2015 Deprived annual income INR1,000,000

2020

2025

Strivers

Seekers

Deprived

Aspirers

Globals

Source: McKinsey Quarterly, Aranca Research

For updated information, please visit www.ibef.org

GROWTH DRIVERS

21

Telecommunications
Increasing internet revenues and subscriptions … (1/2)

NOVEMBER

2011



The MVAS industry is expected to reach USD5.8 billion by 2013 from USD2.0 billion in 2009, representing a CAGR of 30.5 per cent TR AI estimates the share of non-voice revenues of telecom operators to rise from 10 per cent in 2010 to over 30 per cent over the next 5-7 years
Notes: CAGR – Compound annual growth rate; VAS – Value-added services

MVAS revenues in USD billion
7 6 5.8



5 4 3.3 3 2 1 0 2009 2010E 2011E 2.5

4.5

2.0

2012E

2013E

Source: Deloitte, Aranca Research

For updated information, please visit www.ibef.org

GROWTH DRIVERS

22

Telecommunications
Increasing internet revenues and subscriptions … (2/2)

NOVEMBER

2011



Minutes of usage of dial-up internet access has increased to 41 in 2010 from 205 in 2006 at a CAGR of 1 19 per cent
Notes: CAGR – Compound annual growth rate; MOU – Minutes of use

Internet - dial up access MOU (per month per subscriber)
450 400 350 300 250 200 150 100 50 0 2006 2007 2008 2009 2010 205.0 210.0 222.0 324.0 411.0

Source: Telecom Regulatory Authority of India, Aranca Research

For updated information, please visit www.ibef.org

GROWTH DRIVERS

23

Telecommunications
India has a distinct competitive advantage over peers


NOVEMBER

2011

In terms of the telecom market environment , India competes with Japan, Singapore, Australia, South Korea, Hong Kong, Malaysia and Taiwan



The country has an edge over China, Indonesia, Philippines, Pakistan, Bangladesh, Laos, Cambodia, Thailand, Vietnam and Sri Lanka Telecom Industry Rewards
India China Indonesia Philippines Pakistan Bangladesh Laos Cambodia Thailand Vietnam Sri Lanka 63.3 52.5 47.5 50 52.5 40.5 46.8 40 37.5

Country rewards
35 42.7 46.7 45.3 36 60 54 32.7 36.7

Telecom industry risks
70 60 70 70 60 50 50 60 60

Country risk
70.6 51.1 53.1 28.1 44.5 49.9 36.4 62.2 47.8

Telecom Rating
58.4 51 50 48.6 48.4 48.1 47.5 44.5 42.2

33.8 63.3

30 35

50 70

59.9 70.6

39.2 58.4

Source: BMI, Aranca Research, Note: explanation of the indicators given under appendix

For updated information, please visit www.ibef.org

GROWTH DRIVERS

24

Telecommunications
Strong policy support is crucial to the sector’s development … (1/2)

NOVEMBER

2011

• The Government of India plans to cut license fees up to 33 per cent for operators

Reduction in license fees

that cover services for over 95 per cent of the residential areas in a calling circle
• The issuance of several international and national long-distance licenses has

created opportunities and attracted new companies into the market

Removal of restrictions

• In 2008, TRAI removed restrictions that governed the provision of national long-

distance VoIP services

• FDI of up to 74 per cent is allowed in basic and cellular, unified access,

Relaxed FDI norms

national/international long distance, and V-Sat services as well as public mobile radio trucked services
• FDI of up to 100 per cent is permitted for infrastructure providers offering dark

fibre, electronic mail and voice mail
• In August 2008, the DoT allowed operators to use WiMAX networks as an

Allowed the use of WiMAX

alternative to cable and DSL to offer voice services
• This would enable faster delivery of wireless broadband services

Notes: FDI – Foreign direct investment; TRAI – Telecom Regulatory Authority of India; DoT – Department of Telecommunication; WiMAX – Worldwide interoperability for microwave access telecommunications. VoIP- Voice over Internet Protocol.

For updated information, please visit www.ibef.org

GROWTH DRIVERS

25

Telecommunications
Strong policy support is crucial to the sector’s development … (2/2)
Set up internet connections

NOVEMBER

2011

• The Department of Information Technology intends to set up over 1 million

internet-enabled common service centres across India as per the National eGovernance Plan

• The USOF identified 5,000 villages, and is in the process of developing a scheme to

Expansion to rural areas

connect through wireless broadband
• It also intends to provide 888,832 broadband connections in rural areas by 2014 • The USOF also has plans to strengthen the OFC network in rural and remote

areas

Financial support

• The USOF is expected to extend financial support to operators providing service

in rural areas and encourage active infrastructure sharing among the operators

Notes: USOF – Universal Service Obligation Fund; OFC – Optical fibre cable

For updated information, please visit www.ibef.org

GROWTH DRIVERS

26

Telecommunications
Draft National Telecom Policy - 2011

NOVEMBER

2011

‘Broadband on demand’ and target 600 million connections by 2020

Propose to increase rural teledensity from 35 to 100 by 2020

Draft National Telecom Policy 2011

Additional spectrum of 300 MHZ by 2017 and another 200 MHZ by 2020 to be made available

Aims at a ‘One NationOne license’ regime with no roaming charges and nation wide number portability For updated information, please visit www.ibef.org

Domestic manufacturing intended to meet 80 percent of telecom hardware demand by 2020
GROWTH DRIVERS

27

Telecommunications
Foreign investments flowing in … (1/2)

NOVEMBER

2011



FDI inflows into the telecom industry from April 2000 to April 201 amounted to USD10.6 billion 1 The industry accounted for 8 per cent of the total cumulative FDI between April 2000 and April 201 1
Notes: FDI – Foreign direct investment

FDI inflows: Telecommunication sector
3000 2,558 2,554



2500
2000 1500 1000 500 0 FY07 FY08 FY09 FY10 FY11 478

1,665 1,261

Source: Department of Industrial Policy & Promotion,
Aranca Research

For updated information, please visit www.ibef.org

GROWTH DRIVERS

28

Telecommunications
Foreign investments flowing in … (2/2)

NOVEMBER

2011



In 2010, the telecom sector’s M&A deal value stood at USD14.6 billion (29.4 per cent of the total M&A deal value)
Source: Thomson Banker, Deal Tracker, Aranca Research
Notes: M&A – Merger and acquisition

Merger and Acquisition deals (2010 and 2011) Target
Viom Networks Ltd Qualcomm India Pvt Ltd MVL Telecom Ltd

Acquirer
Macquarie SBI Infrastructure Investor Group MVL Ltd

Acquisition price (USD million)
306.1 57.7 52.6 43.8 9.9 5.1 0.9

Micromax Informatics Ltd Investor Group Kavveri Telecom Products Investor Group Ltd Tata AutoComp Mobility Eduexel Infotainment Ltd Trimble Navigation Ltd

Discovery Infoways Ltd

For updated information, please visit www.ibef.org

GROWTH DRIVERS

29

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

30

Telecommunications
Bharti Airtel: An inspiring success story … (1/2)

NOVEMBER

2011



In 2010, Bharti established a major outsourcing relationship with IBM, which gave IBM full control and ownership of Bharti’s IT infrastructure and associated processes In September 2010, Bharti launched the Global Data portfolio in Thailand and Malaysia as part of its global expansion strategy

Revenues (in USD billion)
14 12.4 12 10 8 6 4 2 0 FY07 FY08 FY09 FY10 FY11 3.8 5.6 7.8 8.7



Source: Company Annual report, Aranca Research

• Set up in 1995, Bharti Airtel is India’s largest mobile operator with presence in all of India’s 22 circles • It is the country’s leading mobile operator with more than 211 million mobile subscribers as of March 2011
For updated information, please visit www.ibef.org
SUCCESS STORIES: AIRTEL, VODAFONE

31

Telecommunications
Bharti Airtel: An inspiring success story … (2/2)

NOVEMBER

2011



In November 2010, Bharti Airtel rebranded operations in 19 countries In January 2009, Bharti Airtel launched an IPTV service, Airtel Digital TV Interactive using MPEG-4 technology In 2009, the company launched global wholesale services to provide operators access to its fibre network
Notes: MPEG – Moving picture experts group ; IPTV : Internet Protocol Television

Mobile subscribers (in million)
250 211.9 200 150 100 62.0 50 0 FY07 FY08 FY09 FY10 FY11 37.1 94.5



131.3



Source: BMI Report, Aranca Research

For updated information, please visit www.ibef.org

SUCCESS STORIES: AIRTEL, VODAFONE

32

Telecommunications
Vodafone Essar: India’s third-largest mobile operator … (1/2)

NOVEMBER

2011



In February 2007, Vodafone unveiled a high-growth five-year strategy for India to offer low-cost handsets and wireless connectivity to the country’s rural areas In August 2008, Vodafone introduced Apple’s iPhone to the Indian market

Revenues (in USD billion)
6 5 4.2 4 3 3.3 4.8



2
1 -

2.0

2007

2008

2009

2010

Source: BMI Report, Aranca Research

• Set up in 1994, it is India’s third-largest mobile operator with more than 124 million customers as of December 2010

For updated information, please visit www.ibef.org

SUCCESS STORIES: AIRTEL, VODAFONE

33

Telecommunications
Vodafone Essar: India’s third-largest mobile operator … (2/2)

NOVEMBER

2011



Vodafone aims to build more than 5,000 base stations by Q41 1 Vodafone Group plans to invest heavily in the establishment of a fibre-optic network in India Vodafone plans to invest USD400–500 million to purchase 3G equipment by 2015

Number of subscriptions (in million)
140
120 100 80 60.9 60 40 20 0 2007 2008 2009 2010 39.9 91.4 124.3





Source: BMI Report, Aranca Research

For updated information, please visit www.ibef.org

SUCCESS STORIES: AIRTEL, VODAFONE

34

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

35

Telecommunications
Opportunities … (1/2)

NOVEMBER

2011

Increasing mobile subscribers

Untapped rural markets

Rising internet penetration

• The number of wireless

• The rural market’s

• The Internet penetration is

subscribers is expected to reach approximately 1 billion by 2014
• Of the total subscribers,

teledensity was around 31.2 per cent in December 2010
• By 2012, the total telecom

expected to grow steadily and is expected to be bolstered by government policy
• The current broadband

around 572 million are likely to be from urban areas and the rest would be rural subscribers (468 million)
• Indian mobile operators

outreach in the largely untapped rural markets of India is expected to reach close to 40 per cent

penetration rate is 1.5 per cent and is likely to be 9.4 per cent by 2015
• The country is expected to

added about 8–10 million subscribers every month throughout 2010

feature among the top 10 broadband markets by 2013

For updated information, please visit www.ibef.org

OPPORTUNITIES

36

Telecommunications
Opportunities … (2/2)

NOVEMBER

2011

Development of telecom infrastructure

Growth in MVAS

Telecom equipment market

• Telecom infrastructure is

• The Indian Mobile Value-

• The telecom equipment

expected to increase at a CAGR of 20 per cent during 2008–15 to reach 571,000 towers in 2015
• TRAI has made several

Added Services (MVAS) industry is expected to reach USD5.8 billion by 2013, from USD2.0 billion in 2009
• Currently, VAS contributes

market’s production of electronics and equipment went up 11.7 per cent to reach USD10.5 billion in 2008–09
• It is anticipated to reach

recommendations for the development of telecom infrastructure including tax benefits and recognising telecom infrastructure as essential infrastructure

10–12 per cent of the total telecom revenues
• Introduction of 3G

USD29.5 billion by 2013–14

services will help in the faster growth of VAS Industry
Notes: VAS: Value-added services

For updated information, please visit www.ibef.org

OPPORTUNITIES

37

Telecommunications
Contents
 Advantage India

NOVEMBER

2011

 Market overview and trends  Growth drivers  Success stories: Airtel, Vodafone  Opportunities  Useful information

For updated information, please visit www.ibef.org

38

Telecommunications
Industry Associations

NOVEMBER

2011

Association Of Unified Telecom Service Providers Of India (AUSPI) B-601, Gauri Sadan 5, Hailey Road, New Delhi – 1 001, India 10 Tel: 91 1 23358585 1 Fax: 91 1 23327397 1 Website: http://www.auspi.in/ Association Of Competitive Telecom Operators (ACTO) 601, Nirmal Tower, 26, Barakhamba Road, Connaught Place, New Delhi – 1 001, India 10 Tel.: 91 1 43565353 / 43575353 1 Fax: 91 1 43515353 1 E-mail: info@acto.in Website: www.acto.in Internet & Mobile Association Of India (IAMAI) F-36, Basement, East of Kailash, New Delhi – 1 065, India 10 Tel: 91 1 46570328 1 E-mail: kalyan@iamai.in Website: www.iwww.iamai.in

For updated information, please visit www.ibef.org

USEFUL INFORMATION

39

Telecommunications
Appendix
BMI telecoms business environment ratings


NOVEMBER

2011

Industry rewards: it considers Average revenue per users, number of subscribers, subscriber growth, and number of operators


→ → →

Country rewards: it considers urban/rural split, age range, GDP per capita, USD
Industry risks: it considers regulatory independence Country risk: it rates the country on short-term external risk, policy continuity, legal framework corruption Telecom ratings: overall rating of the above indicators

For updated information, please visit www.ibef.org

USEFUL INFORMATION

40

Telecommunications
Glossary … (1/2)
→ → → → → → → → → → →

NOVEMBER

2011

BWA: Broadband wireless access CAGR : Compound annual growth rate DoT: Department of Telecommunication FDI: Foreign direct investment FTTH: Fibre to the home FY: Indian financial year (April to March) IMF: International Monetary Fund INR: Indian Rupee IPTV Internet protocol television M&A: Mergers and acquisitions MoU: Minutes of use per month and per subscriber



MPEG: Moving Picture Experts Group

For updated information, please visit www.ibef.org

USEFUL INFORMATION

41

Telecommunications
Glossary … (2/2)
→ → → →

NOVEMBER

2011

OFC: Optical fibre cable TRAI: Telecom Regulatory Authority of India USOF: Universal Service Obligation Fund USD: US Dollar


Conversion rate used: USD1 = INR48, HKD1 = USD0.128, GBP1 = USD1.854

→ → →

VAS: Value-added services WiMAX: Worldwide Interoperability for microwave access telecommunications Wherever applicable, numbers have been rounded off to the nearest whole number

For updated information, please visit www.ibef.org

USEFUL INFORMATION

42

Telecommunications
Disclaimer

NOVEMBER

2011

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

For updated information, please visit www.ibef.org

DISCLAIMER

43

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