telecommunication 261112
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For updated information, please visit www.ibef.org
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
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Telecommunications
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
Advantage
India
India is the second-largesttelecommunications market in theworld with 951.3 millionsubscribers as of March 2012
With 70 per cent of population
staying in rural areas, the ruralmarket will be a key growthdriver in coming years
By end-2012, total telecomoutreach in the nations ruralmarkets is expected to beclose to 40 per cent
India is expected to feature
among the top 10 broadbandmarkets by 2013
The country has a strongtelecommunication infrastructure
In telecommunication ratings, Indiaranks ahead of peers in the Westand Asia
The government has been proactive inits efforts to transform India into a
global telecommunication hub;prudent regulatory support has alsohelped
National Telecom Policy 2012 proposesunified licensing, full MNP and freeroaming
Number of
subscribers:
1.2 billion
2016E
Number of
subscribers:
951.3 million
2012*
Source:BMI (Business Monitor international) Report, Aranca Research
Notes: * figure are till March 2012; MNP- Mobile Number Portability; E Estimates (2016E estimates for 2016)
Strong demand Attractive opportunities
High ratings Policy support
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Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
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55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
The telecom market is split into threesegments
Telecom
Comprises establishments operating and maintaining switching andtransmission facilities to provide direct communications via airwaves
Mobile (wireless)
Fixed line (wireline)
Internet services
Consists of companies that operate and maintain switching andtransmission facilities to provide direct communications throughlandlines, microwave or a combination of landlines and satellite link-ups
Includes internet service providers (ISPs) that offer broadband internet
connections through consumer and corporate channels
Source:Aranca Research
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Telecom revenues have been surgingahead
MARKET OVERVIEW AND TRENDS
Indian telecom sectors revenue grew by 7 per cent to
USD56.5 billion in FY11
Wireless and wireline revenue amounted to USD35.8
billion with a CAGR of 13.1 per cent over FY07-11;
revenues from the telecom equipment segment stoodat USD23.4 billion in FY11
During 2012, India emerged as the worlds second
largest telecommunication market and has the third
highest number of internet users in the world
Wireless and wireline revenues in USD billion
Source:Telecom Regulatory Authority of India, Aranca Research
Notes: CAGR Compound Annual Growth Rate
Telecommunications
21.9
26.9
31.732.9
35.8
10
15
20
25
30
35
40
FY07 FY08 FY09 FY10 FY11
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1.7
2.22.5
3.2
3.6
0.0
1.0
2.0
3.0
4.0
2006 2007 2008 2009 2010
CAGR: 20.6%
For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Internet access revenues stood at USD3.6 billion in
2010, thereby clocking an impressive CAGR of 20.6 per
cent over 2006-10
Revenues are forecasted to increase to USD5.9 billion
by 2015
Internet access revenues in USD billion
Source:Datamonitor, Aranca Research
Telecommunications
Impressive rise in internet revenues
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Mobile teledensity growth continues
MARKET OVERVIEW AND TRENDS
The mobile segments teledensity surged 5.5x from
13.5 per cent in 2006 to 74.2 per cent in 2011
GSM services continue to dominate the wireless
market with an 87.9 per cent share (2011); CDMA
accounts for the remaining 12.1 per cent
Mobile (wireless) segments teledensity
Source:Telecom Regulatory Authority of India, Aranca Research
Notes: Teledensity The number of telephone lines for every 100 people in a country,
GSM- Global System for Mobile Communications,
CDMA-Code division multiple access
Telecommunications
74.2%
63.2%
44.7%
30.0%
20.4%
13.5%
0.0% 20.0% 40.0% 60.0% 80.0%
2011
2010
2009
2008
2007
2006
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99For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Dur ing 2011, Fixed lines teledensity reached 2.7 per
cent due to wide usability of wireless segment
During FY12, BSNL continued to lead the segment
with a 69.8 per cent share (in the total fixed line
market)
Fixed line segments teledensity
Source:Telecom Regulatory Authority of India,
Aranca Research
Notes: BSNL- Bharat Sanchar Nigam Limited
Telecommunications
Fixed line market is dominated by BSNL
2.7%
3.0%
3.2%
3.3%
3.4%
3.6%
0.0% 1.0% 2.0% 3.0% 4.0%
2011
2010
2009
2008
2007
2006
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1010For updated information, please visit www.ibef.org
Strong growth in mobile subscriptions
MARKET OVERVIEW AND TRENDS
By March 2012, mobile subscriptions stood at 919.2
million; over 2006-11, subscriptions had recorded an
astounding CAGR of 43.0 per cent
The current urban wireless teledensity is 162.82 and
rural teledensity is 38.33
Mobile (wireless services) subscriptions (in million)
Source:Telecom Regulatory Authority of India, Aranca Research
Note: 2012* - the figure for 2012 is till March 2012
Telecommunications
149.6233.6
346.9
525.1
752.2
893.8 919.2
0
200
400
600
800
1000
2006 2007 2008 2009 2010 2011 2012*
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1111For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Internet subscriber figures went up to 22.4 million in
2011 from 8.6 million in 2006, a CAGR of 21.1 per cent
Top 10 Internet Service Providers (ISPs) together hold
95.0 per cent of total internet subscriber base; state
owned BSNL is the market leader with 55.0 per centof market share
By 2016, internet subscriptions are expected to rise to
215.0 million, with a penetration rate of 16.2 per cent
Internet subscriptions (in million)
Source:Telecom Regulatory Authority of India, Business Monitor
International, Aranca Research
Notes: CAGR Compound annual growth rate;
BSNL Bharat Sanchar Nigam Ltd
Telecommunications
Number of internet subscribers are alsogoing up at a fast pace
8.6
10.4
12.9
15.2
18.7
22.4
0.0
5.0
10.0
15.0
20.0
25.0
2006 2007 2008 2009 2010 2011
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1212For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Fixed line revenues increased at a CAGR of 5.6 per
cent to USD8.2 billion over 2005-09
The market is forecasted to accelerate at a CAGR of
7.2 per cent over 2009-14 (to USD11.6 billion by the
end of 2014)
Fixed line revenues (in USD billion)
Source:Datamonitor, Aranca Research
Telecommunications
Fixed line revenues are growing steadily
6.6
7.1
7.5
7.98.2
4.0
5.0
6.0
7.0
8.0
9.0
2005 2006 2007 2008 2009
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1313For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
BSNL is the market leader with a share of 69.8 per
cent; MTNL comes second (10.8 per cent share)
BSNL, MTNL and Bharti together account for over 90
per cent of the total fixed line market
Fixed line market share (FY12)
Source: Telecom Regulatory Authority of India, Aranca Research
Note: MTNL-Mahanagar Telephone Nigam Limited,
BSNL-Bharat Sanchar Nigam Limited'
Telecommunications
BSNL is the market leader in the fixedline segment
69.8%
10.8%
10.2%
4.5%4.0% 0.6%
BSNL
MTNL
Bharti
Tata
Reliance
HFCL
Vodafone
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1414For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Broadband subscription increased at an impressive
CAGR of 46.1 per cent during 200611
Growth is set to pick up pace even further; the market
is set to post a CAGR of 72.1 per cent during 201115,
with subscriptions increasing to 117.6 million by end-2015
Broadband subscriptions (in million)
Source:Telecom Regulatory Authority of India, Aranca Research
Note: 2012* - the figures for 2012 are as of March 2012
Telecommunications
Strong growth in broadband drivesinternet access revenues
2.1
3.1
5.5
7.8
10.9
13.414.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2006 2007 2008 2009 2010 2011 2012*
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1515For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Of the total broadband subscriptions in the country:
BSNL topped with 64.6 per cent of total
broadband market share
Bharti Airtel followed at the second place with 9.9per cent of total broadband market share
Market break-up by broadband subscriptions (FY12)
Source:Telecom Regulatory Authority of India, Aranca ResearchNotes: BSNL Bharat Sanchar Nigam Ltd;
MTNL Mahanagar Telephone Nigam Ltd
Telecommunications
BSNL has the major share in broadbandsubscriptions, followed by Bharti Airtel
64.6%9.9%
7.6%
18.0%
BSNL
Bharti
MTNL
Others
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1616For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Key companies in the market
Telecommunications
Company Ownership Presence
Mahanagar TelephoneNigam Ltd (MTNL)
Government (56.3 per cent)Fixed line and mobile telephony (in Delhi
and Mumbai), data and internet
Bharat Sanchar Nigam Ltd(BSNL)
Government (100 per cent)
Fixed line and mobile telephony (GSM
outside Delhi and Mumbai), data and
internet in 22 circles
Reliance communicationsADAG Group (approximately
67.9 per cent)Mobile (CDMA) and Broadband
Bharti Airtel Bharti Group(45.7), Pastel Ltd(15.57 per cent), LIC India
(4.3 per cent)
Broadband and mobile (GSM) in 22 circles
Vodafone Essar
Vodafone (74 per cent),
Telecom Investment India (19.5per cent)
Broadband and mobile (GSM) in 22 circles
Source: Companies websites, Aranca Research
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1717For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Notable trends in the Indian telecomsector
Telecommunications
Green telecom
The green telecom concept aims at reducing the carbon footprint of the telecom
industr y through reduced energy consumption
TRAI initiated a consultation process in May 2010, requesting inputs from firms
across the telecom value chain to provide recommendations on green telecoms
framework and implementation
Expansion to rural
markets
There are over 62,443 uncovered villages in India; these would be provided with
village telephone facility with subsidy support from the governments UniversalService Obligation Fund (thereby increasing rural teledensity)
By 2012, the rural subscriber base accounted for 39.2 per cent of total subscriber
base, thereby fuelling the sectors growth
Emergence of BWA
technologies
BWA technologies such as WiMAX have been among the most significant recent
developments in wireless communication
WiMAX is likely to attract around 8 to 10 million subscribers and account for
around USD11.5 billion in 2012
Outsourcing non-core
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
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1818
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
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1919For updated information, please visit www.ibef.org GROWTH DRIVERS
Sector benefits from rising incomes,growing young population
Strong
government
support
Inviting Resulting in
Growing demand Policy supportIncreasing
investments
Rising incomesReduction in the
license feeRising FDI
Growing young
population
Relaxed
FDI Norms
Lucrative M&A
opportunities
Increasing MOU
Encourages firms
to expand to rural
areas
Telecommunications
Notes: FDI Foreign direct investment; MOU Minutes of use per month and per subscriber; M&A Mergers and acquisitions
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2020For updated information, please visit www.ibef.org
Rising incomes fuel demand for telecomservices
GROWTH DRIVERS
Telecommunications
Rising incomes has been a key determinant of
demand growth in the telecommunication sector in
India
Per-capita income in the country rose at a CAGR of
11.5 per cent over 2001-11 (to USD1388.8)
Strong income growth is set to continue in future as
well; IMF forecasts point to a CAGR of 8.2 per cent
over 2011-17 (to USD2225.9)
Rising Per capita Income
Source: IMF, Aranca Research
-5%
0%
5%
10%
15%
20%
25%
30%
0
500
1000
1500
2000
2500
2001 2003 2005 2007 2009 2011E 2013F 2015F 2017F
Per capita income, USD, LHS Annual growth rate, RHS
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2121For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Rising incomes and growing ruralmarket fuel form the key demand drivers
The emergence of an affluent middle class is
triggering demand for the mobile and internet
segments
A young and growing population is aiding this trend
(especially demand for smart phones)
Indian residents shifting from low to high incomegroups
Source:McKinsey Quarterly, Aranca Research
Strivers: annual
income
INR500,000-
1,000,000
Seekers:
annual income
INR200,000-
500,000
Deprived
annual income
INR1,000,000
0
10
20
30
40
50
60
70
2005 2010 2015 2020 2025
million
households
Strivers Seekers DeprivedAspirers Globals
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2222For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Increasing internet revenues andsubscriptions (1/2)
The MVAS industry is expected to reach USD5.8
billion by 2013 from USD3.3 billion in 2011
The share of non-voice revenues, which currently
stand at around 10 per cent of telecom operators
revenues, is estimated to rise to over 30 per cent inthe next five to seven years
MVAS revenues in USD billion
Source:Deloitte, Aranca Research
Notes: CAGR Compound annual growth rate;
MVAS Mobile Value-added services
2.02.5
3.3
4.5
5.8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2009 2010 2011 2012E 2013E
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2323For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Increasing internet revenues andsubscriptions (2/2)
Minutes of usage of dial-up internet access increased
to 411 in 2010 from 205 in 2006, a CAGR of 19 per centInternet - dial up access MOU (per month per subscriber)
Source:Telecom Regulatory Authority of India, Aranca Research
Notes: MOU Minutes of use
205.0 210.0 222.0
324.0
411.0
0
50
100
150
200
250
300
350
400
450
2006 2007 2008 2009 2010
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2424For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
India has a distinct competitiveadvantage over peers
In terms of telecom ratings, India competes primarily with China, Indonesia and Philippines
In terms of country risk, India has an edge over Indonesia, Philippines, Pakistan, Bangladesh, Laos, Cambodia,
Thailand, Vietnam and Sri Lanka
Telecom
Industry
Rewards
Country
rewards
Telecom industry
risks
Country
risk
Telecom
Rating
India 65.0 32.1 60 58.1 55.1
China 63.3 35.0 70 67.9 58
Indonesia 62.5 45.0 60 57.7 57.1
Philippines 52.5 46.7 60 51 52
Pakistan 57.5 42 60 38.4 51.2
Bangladesh 50 36.7 60 46.8 47.8Laos 36 39 50 33.5 43.2
Cambodia 46.8 38.3 50 33.5 43.2
Thailand 50 32.7 60 57.7 48.4
Vietnam 42.5 33.3 60 46.9 43.5
Sri Lanka 36 30 50 49.7 38.7
Source: BMI, Aranca Research, Note: explanation of the indicators given under appendix
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2525For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Strong policy support is crucial to thesectors development (1/2)
Reduction in license
fees
The Government of India plans to cut license fees up to 33 per cent for operators
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
Abolishment ofroaming charges
During May 2012, the Union Cabinet declared to abolish roaming charges andallow mobile number portability even outside designated circles (without having to
pay extra charges)
Relaxed
FDI norms
FDI of up to 74 per cent is allowed in basic and cellular, unified access,
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
Allowed the use of
WiMAX
In August 2008, the DoT allowed operators to use WiMAX networks as an
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.
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2626For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Strong policy support is crucial to thesectors development (2/2)
Set up internet
connections
The Department of Information Technology intends to set up over 1 mill ion
internet-enabled common service centres across India as per the National e-
Governance Plan
Expansion to rural
areas
The USOF identified 5,000 villages, and is in the process of developing a scheme to
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
Enhanced spectrum
limit
An increase in the prescribed limit on spectrum from 6.2MHz to 2x8 MHz (paired
spectrum) for GSM technology in all areas other than Delhi and Mumbai where it
will be 2x10MHz (paired spectrum)
Telecom players can however obtain additional frequency; there will be an auction
of spectrum subject to the limits prescribed for merger of licenses
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2727For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
National Telecom Policy - 2012
Broadband for all witha minimum download
speed of 2Mbps
Liberalisation ofspectrum, and
convergence of network,services and devices
Unified licensing,delinking of spectrum
from license, online real-time submission and
processing
Aims at a One Nation-One license regime withno roaming charges and
nation wide numberportability
Increase ruralteledensity from 39 to
70 per cent by 2017, and100 per cent by 2020 National Telecom
Policy - 2012
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2828For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Foreign investments flowingin (1/2)
Cumulative FDI inflows into the telecom sector over
April 2000 Feb 2012 amounted to USD12.6 billion
During this period, FDI into the sector accounted for
an 8 per cent share of total FDI inflows into the
country
FDI inflows into telecommunication (USD million)
Source:Department of Industrial Policy & Promotion,
Aranca Research
Note: FY12* -Figures are from April 2011 to February 2012
Notes: FDI Foreign direct investment
478
1261
2558 2554
1665
1995
0
500
1000
1500
2000
2500
3000
FY07 FY08 FY09 FY10 FY11 FY12*
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2929For updated information, please visit www.ibef.org GROWTH DRIVERS
Telecommunications
Foreign investments flowingin (2/2)
In 2010, the telecom sectors 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 to 2012)
Target Acquirer
Acquisitio
n price
(USD
million)
Division
acquired
Qualcomm India Pvt
Ltd
Bharti Airtel Ltd
(2012)
165 Broadband
wireless access
Zains African
operations
Bharti Airtel Ltd
(2010)11 Entire business
Radiacion
Kavveri Telecom
Products Ltd
(2011)
27.5 Telecom unit
Kavveri Telecom
Products Ltd
Investor Group
(2010)9.9 -
Tata AutoComp
Mobility
TrimbleNavigation Ltd
(2010)
5.1 -
Eduexel Infotainment
Ltd
Discovery
Infoways Ltd
(2010)
0.9 -
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3030
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
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3131For updated information, please visit www.ibef.org SUCCESS STORIES: AIRTEL, VODAFONE
Bharti Airtel: An inspiring success story (1/2)
Telecommunications
Set up in 1995, Bharti Airtel is Indias largest mobile operator with presence in all of Indias 22 circles
It is the countrys leading mobile operator with a customer base of more than 0.3 billion (as of March 2012)
In 2010, Bharti established a major outsourcing
relationship with IBM, which gave IBM full control and
ownership ofBhartis IT infrastructure and associated
processes
Bhartis revenues increased from USD3.8 billion inFY07 to USD14.9 billion in FY12, a CAGR of 31.4 per
cent
Revenues (in USD billion)
Source:Company Annual report, Aranca Research
3.8
5.6
7.88.7
12.4
14.9
0
2
4
6
8
10
12
14
16
FY07 FY08 FY09 FY10 FY11 FY12
2012
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3232For updated information, please visit www.ibef.org SUCCESS STORIES: AIRTEL, VODAFONE
Bharti Airtel: An inspiring success story (2/2)
Telecommunications
Bharti has over 251.6 million subscribers, out of which
mobile service subscription accounts for 95.8 per cent
(FY12)
The total subscriber base has grown at a CAGR of
45.2 per cent to 251.6 million from 37.1 million overFY07-12
Mobile subscribers (in million)
Source:Company Annual Report 2012, Aranca Research
37.162.0
94.5
131.3
211.9
241.2
0.0
50.0
100.0
150.0
200.0
250.0
300.0
FY07 FY08 FY09 FY10 FY11 FY12
2012
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3333For updated information, please visit www.ibef.org SUCCESS STORIES: AIRTEL, VODAFONE
Vodafone :Indias third-largest mobileoperator (1/2)
Telecommunications
Set up in 1994, it is Indias leading mobile operator with more than 150.5 million customers as of March 2012
In February 2007, Vodafone unveiled a high-growth
five-year strategy for India to offer low-cost handsets
and wireless connectivity to the countrys rural areas
In August 2008, Vodafone introduced Apples iPhone
to the Indian market
Vodafone's revenues from India grew at a CAGR of
27.4 per cent over FY07-12; revenues stood at USD6.7
billion in FY12
Revenues (in USD billion)
Source:Media news ,Aranca Research
2.0
3.3
4.2
4.8
5.6
6.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY07 FY08 FY09 FY10 FY11 FY12
2012
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3434For updated information, please visit www.ibef.org SUCCESS STORIES: AIRTEL, VODAFONE
Vodafone :Indias third-largest mobileoperator (2/2)
Telecommunications
Vodafones customer subscription grew at a CAGR of
38.7 per cent over 2007-11 (to 150.5 million)
Vodafone Group plans to invest heavily in the
establishment of a fibre-optic network in India
Vodafone plans to invest USD400-500 million by 2015
to purchase 3G equipment
Number of subscriptions (in million)
Source:BMI Report, Aranca Research
Note: 2012*- figures are as of February 2012
39.9
60.9
91.4
124.3
147.7 150.5
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2007 2008 2009 2010 2011 2012*
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3535
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
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3636For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities (1/2)
The number of wireless
subscribers is expected toreach approximately 1
billion by 2014
Of the total subscribers,
around 572 million are
likely to be from urban
areas and the rest would
be rural subscribers (468million)
The ru ral teledensity is
expected to reach 70percent by 2017 from the
current 39.2 per cent
Rural telecom users are
set to account for over 60
per cent of the handsets
market (by volume) by
2012
The Internet penetration is
expected to grow steadilyand is expected to be
bolstered by government
policy
The current broadband
penetration rate is 1.5 per
cent and is likely to be 9.4
per cent by 2015
The country is expected to
feature among the top 10
broadband markets by 2013
Increasing mobile subscribers Untapped rural marketsRising internet
penetration
Telecommunications
Source:Press information bureau, Government of India ,Aranca Research
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3737For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities (2/2)
Telecom infrastructu re is
expected to increase at aCAGR of 20 per cent
during 200815 to reach
571,000 towers in 2015
TRAI has made several
recommendations for the
development of telecom
infrastructure includingtax benefits and
recognising telecom
infrastructure as essential
infrastructure
The Indian Mobile Value-
Added Services (MVAS)industry is expected to
reach USD5.8 billion by
2013, from USD2.0 billion
in 2009
The Indian cloud
computing market is
expected to grow at aCAGR of 76 per cent over
the period till 2012 (to
USD15-18 billion)
The production of electronic
and related equipmenttouched USD19.8 billion in
FY12
It is anticipated to reach
USD52.0 billion by 2020
NTP 2012 is likely to fuel
further growth with its
Broad for all schemes and
policies to increase rural
penetration
Development of telecom
infrastructureGrowth in MVAS and Cloud
computing
Telecom equipment market
Telecommunications
Source:Press information bureau ,Government of India ,Aranca Research
Notes: VAS: Value-added services, NTP- National Telecom Policy
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3838
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Airtel, Vodafone
Opportunities
Useful information
For updated information, please visit www.ibef.org
TelecommunicationsAUGUST
2012
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3939For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry Associations
Telecommunications
Association Of Unified Telecom Serv ice Providers Of India (AUSPI)B-601, Gauri Sadan 5, Hailey Road, New Delhi 110 001, India
Tel: 91 11 23358585
Fax: 91 11 23327397
Website: http://www.auspi.in/
Association Of Competitive Telecom Operators (ACTO)601, Nirmal Tower, 26, Barakhamba Road, Connaught Place, New Delhi 110 001, IndiaTel.: 91 11 43565353 / 43575353
Fax: 91 11 43515353
E-mail: [email protected]
Website: www.acto.in
Internet & Mobile Association Of India (IAMAI)F-36, Basement, East of Kailash, New Delhi 110 065, India
Tel: 91 11 46570328
E-mail: [email protected]: w ww.iww w.iamai.in
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4040For updated information, please visit www.ibef.org
Appendix
BMI telecoms business environment ratings 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
USEFUL INFORMATION
Telecommunications 2012
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4141For updated information, please visit www.ibef.org
Glossary (1/2)
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
USEFUL INFORMATION
Telecommunications 2012
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4242For updated information, please visit www.ibef.org
Glossary (2/2)
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
USEFUL INFORMATION
Telecommunications 2012
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Telecommunications 2012