1. Telecom Industry

2. Telecom in the real sense means transfer of information between two distant points in spaceTelecom is a huge and varied bastion of technologies, companies, services andpolitics that is truly global in nature

3. Introduction Telecom stands as one of the most essential elements of the business world in terms of “Connecting the World” Volatile Sector Regulatory discord Cut-throat competition Emergence of Technologies Emergence of broadband & wireless technologies pose threat to carriers relying on aging infrastructure To survive, telecom carriers need to consider various options Consolidation, Convergence, Costly Technological upgrades

4. Global Growth Patterns Emerging Markets Driving Volume Growth Low Tariffs (ARPUs) Developed Markets Low Subscriber Base Technological Advancements Indian Telecom depends on the global telecom industry for technology platforms & network management While Indian market size attracts telecom giants

5. Indian Telecom - Scenario India – Fastest growing market in World – 190 mn subscribers 4th largest mobile market growing at 6 mn Sub/month 4th largest internet market, 3rd largest by 2007 Voice Revenue dropping; PCOs - 4.5 mn @ CQGR of 7.22% Paying highest taxes and regulatory charges; Variable License fee OPPORTUNITIES Data revenues – 8.5% of service revenue against world avg of 16.5% Content Services – Music/Video etc Applications – m Commerce/PVR Ticketing Tele-density – From 2% in 2000 to 15.44% in 2006 TEMA target of $100 bn for equipments in next 3 yrs IT & ITES Industry – $35 bn with CAGR of 35%

6. Indian Telecom – Global Reach Source: Voice & Data

7. Indian Telecom - Global Connectivity Submarine Cable System Landing at Chennai, Mumbai, Cochin & Tuticorin SMW 4 Mumbai FLAG SMW 3 i2i Chennai TIC SMW 3 SMW 4 Cochin SAFE Tuticorin Bharat Lanka

8. International Bandwidth Growth - India Source : Telegeography Conversion: 1 Gbps ~ 6.4 STM1

11. VoIP handsets

13. Connecting India to the World ENABLERS Unified Licensing Telecom Technologies - Internet/Wimax/VOIP Reduced License Fees in Long Distance Sector Outsourcing Network Management to Global Manufacturers India - Telecom Equipment Manufacturing Base Convergence - ICT FDI Relaxation in Telecom (26% to &74%) - $2.67 bn Aug,06 Emergence of IT & ITES Sector Consolidation & Partnerships between Indian & Foreign Players viz. BT, AT&T , Aircel & Maxis Telecom has attracted significant FDI and technology which has resulted in huge benefits to the Indian Telecom Growth

14. Connecting India to the World CHALLENGES Regulatory Policies Lack of level playing field Penetration Level Across the world and within India Seamless Roaming Infrastructure Program Manufacture telecom equipment in India Passive Infrastructure Sharing VoIP Value Added Services Unutilized software capability Digital Divide Non Availability of technology, equipment, network access for millions of poor

15. Indian Telecom – Way Forward to being Global Transparent and truly technology-neutral Government policies Allow full range of private & Public Sector telco's to compete fairly and fully Adequate spectrum in useable frequency bands advocated by the ITU to wireless service providers Low regulatory restrictions over new services such as Push-to-talk, IP-enabled services, particularly Voice-Over IP (VoIP) Ensure level playing field and “No” worse-off position for existing license holders Duties on imported telecommunications and related equipment must be reduced to zero To promote competition in IPLC “Put in Right Policies” for technology multinationals to build business in consumer end user device segments like mobile, handset, PC’s and networking product manufacturing Acquisitions with “Strategic” intent

16. Thank You