A glimpse into a developing market -...

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A glimpse into a developing marketLloyd Mathias

President & CMOTata Teleservices

San Diego,November 10, 2009

India Market

1.1B Population 25,000 Towns 600,000 Villages Source: Census Bureau of India, IDC, QC India

Analysis

• Large Population• Low Teledensity• Very small computer base• Very low wire line broadband

Unique Opportunity

India Market

Urban India Rural India Total

Population (M) 350 750 1,100

Households 78 150 228

Wireline Subs (M) 27 11 38

Wireless Subs (M) 237 110 347Wireless Teledensity 68% 15% 32%

Broadband Subs (M) 4.9 0.5 5.4

Computers 28 3 32Computer Penetration per Household 37% 2% 14%

68% Urban Tele-density and increasing, potential Rural opportunity2% Rural Computing Penetration: Significant Opportunity for Rural Broadband

Source: Census Bureau of India, IDC, QC India A l i

Youth are the biggest drivers of mobility growth in India

India – The temple of youth

•30% of India’s population is

between 15 -34 years

•Another 30% is below 15 years of

• Youth constitutes 57% of the

mobile market

• Youth constantly seek variety &

smart price points

CDMA milestones• 110 million subscribers – May ’09• EV-DO off to a great start – Q1 ‘09• 3rd national CDMA operator – MTS (Sistema), Q2

‘09• OMH launch – July 09• One additional 800 Mhz EV-DO channel to be

auctioned during 3G auction in Jan 10

ROW^ India

CDMA (M)* 15 27.2

ROW^ India

GSM (M) 437 86

*Note: CDMA net adds do not include disconnects from China (14M), Americas (13M) and South Korea (8M). Only positive net adds have been considered for this purpose

India Wireless Subscribers CY08 Net Adds Share

India leads with 64% of global CDMA positive net addsHighest net adds in 2008 at 27M followed by USA at 11M

^ROW: Rest of World

World India

Competition and Technology Landscape

• Introduction of mobile technology in India

• GSM – 1995 : CDMA – 2003

• EVDO expected to be introduced end of this year.

• WCDMA is some time away…

• Wi-Max expected to be introduced some time next year.

CDMA27%

GSM73%

4 more launches in waiting

5 Indian Wireless Operators in World’s Top 20(June 09)

Source: Wireless Intelligence,

Source: Wireless Intelligence, Q4’08

India: 2nd largest CDMA Market, Reliance & Tata in Top 5

� Virgin Mobile completes one year of operation ~1.7M+ subs

� Systema-Shyam launch under brand MTS ~ 1M+

� Reliance, Tata and BSNL launch Wireless Broadband ~ Top 40 cities

� Open Market Handset (OMH) commercially launched

CDMA installed base at 100M+ (June 2009)

TECH MKT SHARE(%)

BANDOPERATOR PRIMARYINFRA

SUBS(M)

Top 6 Wireless Operator Snapshot (Sept 09 2009)

COVERAGE/ TOT AL CIRCLES

19.5 ALU, HW, ZTE

11.7 NSN, ERIC

25 900: 14/231800 : 9/23

ERIC, NSN

11.6 ZTE, HW, MOTNSN, HW, ZTE

HW, ZTE

� GSM

� CDMA2000

� GSM

� CDMA2000

� GSM

900: 21/21

800: 23/23

1800: 12/23

800: 22/23

900: 14/221800: 8/22

900 : 8/151800 : 7/15

900: 5/221800: 17/22

800: 22/23

MOT, HW

ERIC, NSN

ALU-ITI, ERIC, NSN, NORTEL

� CDMA2000 22/23

12Total INDIA wireless subscribers at 441M+ (Sept 2009) ~ 24%

The Two faces of India

Source: Census of India, NCAER, Rural Market Overview 2008, MART, MINT Rural Series

India Urban & Rural Opportunity:Income & Affordability Perspective

Urban India: 295M Population Rural India: 805M Population

Proportion of Prepaid Subscribers

• India predominantly a Prepaid Market• New operators launch aggressive prepaid tariffs

- Passive Infra Sharing between operators

Hurdles to growth

• Limited handsets & absence of some of the big handset brands

- Nokia/ Motorola/Sony Ericsson• Spectrum availability• Roaming concerns

Opportunities

• Drive data usage & EV-DO advantage• Expand the VAS bouquet/ BREW in lower

end devices• Entry level bundling opportunity• Rural penetration/spectral efficiency of

CDMA• Customer specific tariffs• M-Commerce/m Banking• Leverage retail advantage

TTL recently entered the Limca Book of Records by launching 100 exclusive outlets on a single day

5000 Tata Indicom stores

� India’s largest branded telecom retail chain

� Over 5,000 exclusive outlets, occupying 1 Mn Sq Ft of prime retail space

� Extensive handset distribution reach through presence at over 100,000 multi-brand retail outlets

� Recharge vouchers distributed through more than 140,000 outlets

Wireless Broadband inIndia

Tata Photon Plus

Tata 1X Data Card

•EV-Do Rev A launched in Q1

•Significant traction

•OEM tie ups

Source: Operator Website

High End

Mar Apr 2008 FebJan May June July Aug Sep Oct

HaierC2020

HuaweiC2802

Haier2010

LG 3600 LG 3500Classic 161

Coolpad288

LG 6100 Spice C810

vBling

vSleek vkewl

vSwing

Samsung2ON

HTC P3000 HTC S720

vTrendy

ZTE C336

Classic 161

ZTE C335HaierC3010

HaierC3000

Blackberry Pearl 8130

HaierC2821

FLY V80

Moto W362 Huawei2803

SamsungRaaga

LGERD10000

Blackberry Curve

Huawei2901

LG 9100

Nov Dec

HTC Touch Diamond

SamsungSCH-F309

SamsungSCH-M569

Huawei2206

Huawei5100

Huawei5320

LG3610

SamsungB259

SamsungB139

SamsungB279

TATA Virgin

ZTE C310

Low End

Mid End

CDMA Device Ecosystem

60 New CDMA Handset models in CY08; Mid-tier being addressed through open market by Samsung and local brands

Localized Content Across Popular Segments

�Bollywood

�Cricket

�Astrology

�Devotional

�Location

English Seekho

•IVR based English tutorial on phone

•40 lessons for a fixed fee

•Voice recognition

M-Krishi

• Mobile advisory for Farmers– Crop patterns– Fertilizers– Weather forecasts

• Market Price of agri- produce

Thank you

Lloyd.Mathias@tatatel.co.in

A glimpse into a developing market -...

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