04/07/2010

Section F, Group 1 Indian Telecom Industry

Evolution
1995
NTP 1999 - > growth 1999-2003 Per month net addition >6mn 2006-07

Subscriber base boom 2008-09

Price war 2009-11

 Prepaid vs postpaid
Technologies ARPU (Average Revenue Per User)

Minutes per Use (MoU)

Major Players In Telecom Industry

There are 3 types of players in telecom services:
State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Communication, Tata Teleservices) Foreign invested companies (Vodafone Essar, Bharti Airtel, Idea )

Operator Bharthi Airtel Reliance telecom

No Of subscribers('000) 162203 135719

Market Share 19.99 16.72

Vodafone Essar BSNL

Idea Tata AIRCEL Uninor Sistema Videocon Others TOTAL

134570 91834
89503 89139 54843 22792 10057 7106 13823 811589

16.58 11.32
11.03 10.98 6.76 2.81 1.24 0.88 1.70

Percentage Market Share

3.81 2.81 6.76 19.99 10.98 16.72
All India GSM Cell Subscribers as on Mar 10

Bharthi Airtel Reliance telecom Vodafone Essar BSNL Idea Tata

11.03
11.32

AIRCEL
Uninor 16.58 Others

Bharti Airtel
Founder Sunil Bharti Mittal Bharti s Famous Minute Factory Model combined with a low

cost structure. New identity seems to focus clearly as their portrayal of a global brand Brand ambassdors being Saif and Kareena

VODAFONE
Predecessor Hutchison Essar From Pug to Zoozooperstars Vodafone ZOOZOO Magic

BSNL
India's largest public sector Telecommunications Company Undisputed Leader in Broadband with 60 % Market Share. It has1.5 Million 3G Users out of 60 Million Total Consumer

Base. Deepika padukone became Brand Ambassador of BSNL India By replacing Preety Zinta.

AIRCEL
COO -Gurdeep Singh
Joint enterprise between Maxis Communications and the

Apollo Hospitals. Mass marketing in Southern India Roped in Indian Captain M S Dhoni as the brand ambassador.

Present and Future Industry estimates

MOBILE
1600000 1400000 No of mobile phone subscribers ('000) 1200000

1000000
800000 MOBILE 600000 400000 200000 0 2008 2009 2010 2011f 2012f 2013f End of Year (f denotes forecast)

ARPU
200
180 160 140 Indian Natioanl Rupee 120 100 80 60 40 20 0 2008 2009 2010 2011f 2012f 2013f End of Year (f denotes forecast)

GSM ARPU CDMA ARPU

Fixed-Line
40000 35000

Fixed Line Subscribers ('000)

30000

25000

20000
Fixed-Line 15000

10000

5000

0 2008 2009 2010 2011f 2012f 2013f End of Year (f denotes forecast)

Internet
450000 400000

350000 No of internet subscribers ('000)

300000

250000

200000

Internet

150000

100000

50000

0 2008 2009 2010 2011f 2012f 2013f Year (f denotes forecast)

2G SCAM

TRAI DoT

Sources and references

Business Monitor International India

Telecommunications Report Q3 2011 CRISIL Telecom Services Industry Report April 2011 TRAI website http://www.trai.gov.in/ Websites of telecom service providers: http://www.airtel.in/ http://www.vodafone.in/ http://www.ideacellular.com http://www.bsnl.co.in/ http://www.aircel.com/