Growth Opportunities in the Indian Telecom Market 2011

7/31/2019 Growth Opportunities in the Indian Telecom Market 2011

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Growth Opportunities in Indias Telecom

Market: Separating the Wheat from the

ChaffDecember 2010

Author: Ramesh Balakrishnan

Founder and Principal, Next On Mobile


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About Next On Mobile

Next On Mobile is a research, advisory and consulting practice providing strategic

insight to networked enterprises that leverage the mobile channel to deliver

consumer services, enable enterprise collaboration and transact commerce in the eraof personalized mobile communications. We deliver value to our clients through

intense industry research and consulting; focusing on emerging technologies, market

trends and opportunities which will determine the pathways for a mobile centric

future. Our approach to the mobile industry is characterized by four major vision

elements - Next Innovation, Next Growth Markets, Next Practices and Next

Inclusion. We provide research and consulting services to various stakeholders in the

mobile ecosystem including mobile operators, application developers, venture

investors, mobile enterprises and device makers among others.


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Disclaimer and legal notices

This report does not constitute professional advice. The information in this report has been

obtained or derived from sources believed by Next On Mobile to be reliable but Next On

Mobile does not represent that this information is accurate or complete. Any opinions orestimates contained in this report represent the judgement of Next On Mobile at this time

and are subject to change without notice. Readers of this report are advised to seek their

own professional advice before taking any course of action or decision, for which they are

entirely responsible, based on the contents of this report. Next On Mobile neither accepts nor

assumes any responsibility or liability to any reader of this report in respect of the

information contained within it or for any decisions readers may take or decide not to or fail

to take. Next On Mobile does not promote or endorse specific companies, products, services.


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Questions Answered in this Report

What are the key emerging trends in the Indian telecom space?

What is the role of wireless broadband in driving future growth?

What are the key challenges in driving services adoption among users,

especially in rural markets?

How are 3G services likely to develop in terms of consumer segments

(enterprise, rural, consumer)?

What business models are being adopted by operators?

How has the industry evolved in the past few years?

What are the key opportunities for players in the value chain?

What are the most promising software platform and applications opportunitiesin the coming years?

What are the strategic options for a new entrant?

Audience

Network Equipment Manufacturers Independent Software Vendors

Content Aggregators

Media Companies

Systems Integrators

Content and Applications Developers


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Table of Contents

Questions Answered in this Report...............................................................................................5

Audience .......................................................................................................................................5

Table of Contents .........................................................................................................................6

1.0 Background ........................................................................................................................9

1.1 Industry Structure ........................................................................................................ 13

1.2 Telecom Ecosystem......................................................................................................14

1.3 Regulatory Ecosystem ..................................................................................................15

1.4 Fixed Line Voice Infrastructure....................................................................................16

1.5 Mobile 2G Infrastructure .............................................................................................. 16

1.6 Internet, Cable and Broadband Infrastructure ............................................................17

1.7 Investment Scenario .....................................................................................................18

2.0 Industry Trends ................................................................................................................19

2.1 New ARPU Growth from Data .......................................................................................20

2.2 Mobile Penetration in Rural India ................................................................................ 20

2.3 Mobile Money and Payments ........................................................................................20

2.4 Low cost Smart Phones ................................................................................................21

2.5 Penetration of Mobile/Fixed Broadband ......................................................................21

2.6 Outsourcing and Cloud Models .....................................................................................21

2.7 Rise of Mobile Video Usage .......................................................................................... 22

2.8 App Stores and Rich Media Content ............................................................................. 22

2.9 Mobile Infrastructure Software ....................................................................................22

2.10 Growth in Enterprise Mobility ......................................................................................22

3. Market Outlook ....................................................................................................................... 23

3.1 Industry Size .................................................................................................................233.2 Subscriber Projections .................................................................................................23

3.3 Mobile Data Subscribers ...............................................................................................24

3.4 ARPU Trends .................................................................................................................24


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3.5 Operator Market Share .................................................................................................25

3.5.1 Mobile Services Market Share ................................................................................ 25

3.5.2. Fixed Line Services Market Share ..........................................................................27

3.6 Market Segments .......................................................................................................... 283.6.1 Consumer ...............................................................................................................28

3.6.2 Enterprise Segments .............................................................................................. 30

3.7 Market Analysis.............................................................................................................31

3.7.1. Network .................................................................................................................... 31

3.7.2. Software Platforms ...................................................................................................31

3.7.3. Telecom Towers........................................................................................................ 31

3.7.4. Devices ...................................................................................................................... 31

3.7.5. Content and Applications .........................................................................................32

4. Network ...............................................................................................................................32

4.1 Internet and Broadband Usage in India ........................................................................32

4.2 State of Broadband Roll out .........................................................................................33

4.3 Broadband for All Vision Agenda for the Future........................................................34

4.4 3G Roll-out ...................................................................................................................35

4.5 4G BWA (Broadband Wireless Access) ..........................................................................36

4.6 Cable Networks ............................................................................................................36

5. Software Platforms.................................................................................................................37

5.1 Role of Software Platforms in Cost Competitiveness ..................................................37

5.2 Vendor Selection .......................................................................................................... 38

5.3 Software Platforms: Market Opportunities Assessment ...............................................42

5.3.1 Content Aggregation, Engagement, App Stores and Monetization........................42

5.3.2 Mobile Marketing, Off-Deck Content Aggregation & Management........................44

5.3.3 Mobile Commerce & Payments .............................................................................. 46

5.3.4. Mobile Application Stores ......................................................................................48

5.3.5. Mobile Advertising .................................................................................................49

5.3.6. Mobile Messaging, Social Address Book, Social Networks and UGC.......................50

5.3.7 Mobile Enterprise ..................................................................................................51

5.3.8. Mobile Video/TV ....................................................................................................52


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5.4 Vendor Success Factors ................................................................................................53

6. Indian Operators ..................................................................................................................... 55

7. Telecom Towers ..................................................................................................................... 59

7.1 Infrastructure Sharing Models ......................................................................................607.2 Market Opportunity Mapping........................................................................................61

8. Devices................................................................................................................................. 62

8.1 Device Market Share.....................................................................................................63

8.2 Device Trends ...............................................................................................................64

9. Content and Applications ....................................................................................................66

10. Vendor Profiles ..................................................................................................................... 69

10.1 Network Equipment Vendors........................................................................................69

10.2 Systems Integrators ......................................................................................................71

10.3 Communications Software Vendors.............................................................................. 73

11. Business Models .................................................................................................................... 75

12. Market Engagement ......................................................................................................... 77

12.1 Market Entry Strategies................................................................................................77

12.2 Strategic Options for Market Entry .............................................................................. 78

12.3 Canadian Success: Case Studies ...................................................................................81

13. Next Practices ..................................................................................................................84

13.1 Outward M&A of Indian Telecom Software Vendors .................................................... 84

14. Conclusions and Recommendations ................................................................................. 85

Bibliography ................................................................................................................................86


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Fig 1: GDP Leadership Trends

Source: IMF, Standard Chartered Bank `The Super Cycle Report`, 2010

Growing Urbanization

With increasing urbanization of India`s population, investment in telecom

infrastructure is expected to accelerate in the coming decades. A Study by Mckinsey

Global Institute predicts that 68 cities in India will have a population of 1 Million by

the year 2030 and more than 70% of economic output will be generated by India`s

urban population by the same year. This drive towards increased urbanization is

expected to create a huge reservoir of demand for modern communications and

internet services in Indias cities and towns.


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players including the likes of Google, Yahoo and Microsoft are yet to make a

concerted push into the mobile market and await the arrival and the widespread

availability and use of mobile data. Meanwhile, emerging companies in the retail and

banking and micro finance verticals are in the early stages of building strong

consumer franchises and leveraging the power of real time analytics and the mobilechannel to create profitable customer relationships.

1.3 Regulatory Ecosystem

The Indian Telecom industry has been steadily deregulated since the late 90s with the

pace and direction of deregulation accelerating since the 2G license regime was

installed in 2004. Since fixed line infrastructure in the country is vastly under

developed, the Government has focused attention on the mobile sector with impetusfor investment, growth and competition.

India`s telecommunications industry is regulated by the Telecom Regulatory Authority

of India (TRAI). It is an agency that functions under the auspices of the Department of

Telecommunications (DOT). The TRAI is currently working on formulating a mass

Broadband deployment strategy after the conclusion of an extensive industry

consultation process. While the TRAI is responsible for industry consultation and

policy formulation and recommendation, the DOT, which is the arm of the

Government, is responsible for enunciating telecom policy, allocating and licensing

spectrum and setting industry direction.

There are quite a few regulatory barriers to industry consolidation which explains why

there are 14 mobile operators who offer services in different parts of the country and

7 national operators who offer services in all 22 circles. Current rules do not permit

any operator to purchase more than 10% stake in another operator in the same circle.

However, new changes being contemplated will allow two or more companies to

merge their operations within each circle which has 6 operators or more, but will not

be allowed to enjoy more than 30% market share after the merger.

Operators will also be permitted to retain excess spectrum after an acquisition andbecome eligible for a refund in circles where they were allocated additional spectrum

during the auction process. Though the regulatory barriers are falling, industry

consolidation is unlikely to unfold anytime in the near future. This is because large

national players have sufficient spectrum from the 3G auctions and have well


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The Cable MSO (multiple systems operator) industry is going through rapid changes as

the era of digitization is finally beginning to have an impact on the industry. India`s

Cable networks provide services to 85 Million homes. Large Cable MSOs are now

consolidating and organizing themselves for investment led growth in a market whichwas highly fragmented only a few years ago. Leading MSOs include companies like Digi

Cable, In2Cable, Hathway, Wire and Wireless Limited, SCV Network and DEN

Networks. There is vast scope for consolidation with thousands of small cable

operators spread out across the country. Future investments in this space will enable

the deployment of two way digital cable and Interactive TV, Broadband Internet and

other multimedia services.

1.7 Investment ScenarioIndia has relaxed investment by foreign firms in the telecom operator sector by

allowing up to 74% equity investment, with the rest of the 26% to be mandatorily in

the hands of a local company. This has encouraged many global players to enter the

market. This includes Vodafone, Maxis (Malaysia), DoCoMo (Japan), Sistema (Russia),

Etisalat (U.A.E) and Telenor (Norway) to enter the India market. Telenor has invested

$431.3 Million in Uninor, its local mobile arm while Sistema has invested $660 Million

in MTS. Maxis (Malaysia), Singtel (Singapore) and Vodafone (U.K.) have been operating

in India for many years.

While foreign investors have shown interest in investing in the Indian market, Indias

largest operator and market leader Bharti Airtel acquired the African Telco Zain

Groups African mobile operations for $10.7 Billion, making it the largest acquisition

by an Indian firm. Bharti Airtel already operates networks in Srilanka and Bangladesh

besides its home market in India. In mid-2010, Indias Reliance Industries acquired

Infotel, a 4G Licensee for $1.32 Billion to establish a foothold in the 4G Broadband

Wireless Access (BWA) market.

The investment climate for telecom investments in both the equipment and services

space is expected to remain vibrant as the Government pushes for domestic

equipment and handset manufacturing as key priorities for future growth in this

important sector.


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2.0 Industry TrendsIndias communications, media and entertainment industries are slated for

exponential growth over the next decade. With a young demographic, greater

educational attainment, higher literacy and the growth of private English language

instruction, Indias appetite for western style information, entertainment and

communications services is growing rapidly. This section deals with the core industry

trends that will propel the engine of growth over the next decade and beyond. The

Top 10 trends that are shaping the future of the Indian telecommunications industry

are highlighted below.

Fig 5: Trends Shaping Indian Telecom

FALLING VOICE ARPU; GROWTH IN 3G DATA ARPU

INCREASING MOBILE PENETRATION IN RURAL INDIA

INCREASE IN USAGE OF MOBILE BANKING, PAYMENTS AND MONEY TRANSFER

INCREASING PENETRATION OF LOW COST SMART PHONES

INCREASING PENETRATION OF MOBILE AND FIXED BROADBAND

EMPHASIS ON OUTSOURCING AND CLOUD MODELS

RISE OF MOBILE VIDEO USAGE

APP STORES AND USAGE OF RICH MEDIA CONTENT

RISING SPEND ON MOBILE INFRASTRUCTURE SOFTWARE

GROWTH IN ENTERPRISE MOBILITY

Source: Next On Mobile; Fig 3: India Telecom Trends

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2.4 Low cost Smart Phones

The smart phone is at the heart of the mobile Internet revolution. In many advanced

markets, more than 25-30% of the user base has migrated to Smart Phones. In India

less than 2% of the user base enjoys the Mobile Internet on Smart Phones. As prices of

chipsets (Mediatek) fall, smart phones with capabilities like Qwerty Keyboard, Dual-

SIM, 2MP Camera, Wi-Fi etc will be available for $100 or less. More and more users

will be able to afford smart phones as price points drop below $100 driving demand

for a new category of low end Smart Phones with advanced features that are taken

for granted by most high end users today.

2.5 Penetration of Mobile/Fixed Broadband

The Indian Government has made a policy declaration that the next decade will be

the decade of Broadband roll out across the country. The stated objective is to reach

100 Million 3G subscriber connections by 2015 (Sivarama Krishnan, Siddharth

Vishwanath , 2010). While DSL and Cable Broadband connectivity will grow somewhat

slower, mobile Broadband connectivity will become more widespread. The imminent

launch of 3G services soon to be followed by 4G Broadband Wireless Access will fuel

the growth of Broadband into the next decade and beyond.

2.6 Outsourcing and Cloud Models

Indias reputation as a low cost provider of mobile services has been enabled to a

large extent by the early and pioneering decision of Indian operators to outsource

their network and operations and business and customer support services. Outsourcing

of non-core assets have allowed operators to focus on marketing, product

development, new product introduction, distribution and brand. The advent of cloud

computing business models offers new opportunities for vendors to reinvent the

traditional outsourcing model.


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3. Market Outlook

3.1 Industry Size

The telecommunications industry in India is worth $43 Billion, with mobile servicesconstituting the lion`s share of the revenues. Mobile services are also the fastest

growing segment among the revenue growth engines of the industry.

Fig 6: India Telecom Industry Revenues

Revenue Metrics Fig. in Billion (2009-10)Fixed Line Revenues $4Mobile Revenues $30Long Distance Revenues $7

Broadband Revenues $1.8Industry Size $43

Source: Voice and Data, July 2010, Gartner Research

According to Pyramid Research, Indias telecommunications service industry is slated

to grow to $72 Billion by the year 2015. While Voice revenues are expected to grow by

a Cumulative Annual Growth Rate (CAGR) of 8.1%, data services revenue will grow by

27.3%. Mobile Value Added Services (including SMS) contributed 10-12% of total

industry revenues in 2009.

3.2 Subscriber Projections

India is the second largest telecom market in the world after China. As of Sep 2010,

there were 721 Million mobile and fixed subscribers. Total mobile subscribers stands

at 685 Million. According to Pyramid Research, mobile subscribers in India are

expected to grow to 1.2 Billion by 2015. Total market penetration stands at 64%.


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Fig 7: India Telecom Subscribers

Subscriber Metrics Fig. in Million (Sep 2010)Total Telecom Subscribers (Mobile and

Fixed)

721

Mobile 685Fixed line 36Broadband 10Mobile Data (GPRS) 149Cable TV 85DTH TV 25

Source: Next On Mobile, Voice and Data (July 2010), Cable Quest

Fixed line subscribers are declining as more and more consumers cut the chord in

favour of mobile usage. Though Broadband penetration is extremely low at 10 Million,

this figure is expected to grow to 100 Million by 2015 and possibly to 200 Million bythe year 2020.

3.3 Mobile Data Subscribers

While Indias mobile voice subscriber base has skyrocketed over the past decade, the

use of mobile phones for accessing and using data services has languished. Only 20% of

mobile subscribers have used data services and less than 10-15% use data services on a

regular basis. Only 2% of mobile subscribers use Smart Phones though the rate of

growth in Smart Phone usage is steadily increasing. A major obstacle to adoption of

mobile data services has been the prevalence of high data tariffs. With theintroduction of 3G services in December 2010, operators are planning to drastically

cut data rates and introduce tiered pricing to encourage data usage. As Smart Phone

adoption rises, more and more vendors and operators are gearing up to bring

innovative applications to market by launching application stores, enabling developers

to build high quality apps and also providing them with a payment platform to

monetize their applications. Global mobile platforms - Google (Android), Blackberry

and Nokias MEEGO are investing in creating local market ecosystems to spur

innovation and drive adoption for mobile data services.

3.4 ARPU Trends

In keeping with global trends, for many years, mobile voice ARPU has been on a

steady decline in the Indian market. Pricing has somewhat stabilized after another

round of competitive price wars in 2009 and 2010. ARPU levels that were in the $8-10


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3.6 Market Segments

Indias telecom services market is a highly fragmented, non-monolithic entity. About

75% of users reside in urban centres while the rest reside in rural markets. The marketis segmented into multiple categories as profiled below - Consumer, Small and

Medium Enterprise, Large Enterprise and Government

3.6.1 Consumer

Urban/Youth Segment

The Urban/Youth segment (15-25 Years of age) is the most vibrant and dynamic

among the many different market segments within the mobile landscape. These

consumers are primarily concentrated in the large Tier 1 and fast urbanizing cities ofNew Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Ahmadabad and Bangalore.

Extraordinarily brand conscious

Likely users of Fixed Internet and Broadband

Urbane and Suave

Interested in Video, Music and Multimedia

Higher than average voice users

Mobile email users

Blend in with global fashion trends

Users of mobile apps and content

Have a modern outlook towards life

Active on social networks and communities

Share rising aspirations for earning more, spending more, saving and growing

careers

Interested in enhancing personal lifestyle

Likely to be smart phone users

Urban Adults

The Urban/Adult segment (25-40 Years of age) comprises of young executives,

housewives, factory workers and others who belong to the pre-liberalization era (born

before the year 1991). This is the single largest age group among all mobile users.

Primarily voice and SMS users


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Brand Conscious

Look for Value brands

Higher than average voice users

Users of social networks

Potential users of m-education tools

Semi-Urban Youth

This segment of mobile users can be found in the Tier 2 towns and cities that are now

seeing rising incomes from increased economic activity.

Video and music lovers

Increasing disposable income

Rising aspirations for a better life

Likely Feature Phone/High end Phone user

Spend conscious

Seek value brands

Looking to emulate their more urbanized counterparts living in large cities

Aspiring for more educational opportunity

Rural Youth

This segment of the population is the most interesting market segment as theyconstitute the vast majority of job seekers and entrepreneurs who are migrating to

urban centres in search of jobs and partake in the booming economic growth. They

are the products of the demographic dividend and the so called Youth Bulge.

Brand Conscious

Want to follow other influencers

Semi-literate

Increasing disposable Incomes

Looking for Intuitive User Interfaces in accessing services

Information Needy Crop Prices, Weather News etc

Interested in watching video on mobile phones

Users of Government programs for guaranteed employment

Generation migrating from agriculture to industry


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3.7 Market Analysis

There are five major spend categories in the Indian market that are critical from a

supplier perspective. Each of these market categories are analyzed and explored inmore detail in the following sections.

3.7.1. Network

As India begins the much delayed roll out of 3G services in December, deployments of

3G and WiMAX networks will generate a profitable user base over the next 5 years,

according to Maravedis and Tonse Telecom. Accumulated 3G enabled data subscriber

base (notebooks, modems and dongles) will reach 40 million by 2015; 4G subscriber

base including 802.16e and TD-LTE adopters will reach 33 million subscribers in 2015and in the next five years, the 4G infrastructure market will reach an accumulated

US$ 1.5 billion.

3.7.2. Software Platforms

India`s software platforms and applications market is estimated to be $1.0 -1.6 Billion

(3-5% of India`s telecom services industry of $43 Billion, which is based on a global

norm for such estimates). As India`s telecom market continues to grow rapidly over

the next 5 years, the market size for software platforms and services is estimated to

reach almost $3 Billion by 2015.3.7.3. Telecom Towers

Telecom Towers present a $2 Billion market opportunity. Investment opportunities

exist in new and renewable energy efficient power sources and energy management

capabilities. Players in the Telecom towers space are evaluating new optimization

technologies, outsourcing practices and tower management services.

3.7.4. Devices

The device market is changing in complexion rapidly as a slew of local players are

emerging on the scene. While they are yet to challenge the large established vendors

Nokia, LG, Samsung and Sony Ericsson, they have ignited a new wave of competition

in the hotly contested market for consumer device mind share. Android devices are


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these connections are predominantly owned by state owned companies and are in bad

shape, it is hard to justify a business case for pouring more investments into DSL.

Moreover, a case for leveraging high cost fibre based technologies to facilitate ultra-

Broadband connectivity for more bandwidth intensive applications like Broadcast

Video, entertainment; Multi-player gaming etc is yet to be made. Finally, since theprivate sector dominates the market, major operators are disinterested in rolling out

networks in remote villages due to the poor quality of subscribers.

In the longer run, as affluence in urban centres grows, in more lucrative Metro and

Urban markets, FTTC could be the technology of choice in enabling a connected

society and unleashing a digital future that can be embraced by all Indians.

4.3 Broadband for All Vision Agenda for the Future

Fig 11: Broadband Adoption in India

Source: Next On Mobile

The Government of India has identified mass scale Broadband deployment as a major

strategic imperative over the next decade, dubbed The Broadband Decade.

More affordable (sub $100) network-enabled Tablet style devices are being designed

and manufactured in India for the mass market by companies like Novatium. The

BroadbandAdoption

Affordable

InternetDevices

Local Mobile and

Internet Content

Demographic

Dividend

e-Government Multimedia

Affordable

BandwidthSchools/e-

Education

e-Payments/UID


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devices will assume many form factors including smart phones, smart tablet

computers among others.

Rural Broadband is being promoted through directed investments in rural broadband

funds that are instituted and managed by the USOF. This fund is disbursed through aopen RFP process to local IT entrepreneurs to establish, manage and operate

networks in small communities all across the country. The definition of what

constitutes the baseline in terms of minimum data speed is being reviewed every

2 years and will be steadily upgraded over the next 10 years to reach speeds of

3MBPS, 5MPBS and beyond. Tiered Broadband is now a major component of the tariff

plans being offered by Broadband service providers so various market segments (heavy

users vs. light users) could choose the most appropriate pricing plan that matches

their usage patterns and disincentives are built in so a few heavy users do not turn

into bandwidth hogs.

4.4 3G Roll-out

In May 2010, the Department of Telecommunications of the Government of India

conducted a 3G auction that led to the licensing of spectrum to operate 3G networks

across the country. Seven mobile operators paid $15 Billion to license new spectrum

in 71 blocks to roll out 3G services across all 22 circles.

The State Owned operators - BSNL and MTNL who own 3G spectrum (being directlycontrolled by the Government they did not participate in the auction and were

granted spectrum earlier) offer 3G services today, but take up rates have been poor

due to low key marketing and lack of awareness. BSNL now offers 3G services in 22

circles and MTNL in 2 circles. BSNL has reported a total usage base of 1.3 Million

subscribers and MTNL has about 0.5 Million subs. Several operators also provide data

card services to laptop users and there are 3 Million data card users as well.

According to Edelweiss securities, the number of 3G users is likely to rise from 67

Million in 2012 to 194 Million by 2015. Though the arrival of 3G services have been

heralded by a lot of industry buzz about the limitless possibilities that lie ahead, theroad to growth of the 3G mobile data market is likely to be a bumpy one. Since the

central lesson gleaned from other global mobile markets suggest that there is no killer

application in the 3G world like voice was to the world of 2G, the scenario in India is

unlikely to be different from the global 3G experience. In the short term, operators


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Content store, VAS Platforms, mobileapplications, mobile analytics, messagingsoftware, mobile advertising deliveryengine, content discovery software,applications personalization and

recommendation software, operatorspecific user interface among others.

application layer bydelivering new consumerservices.

Device Software Device operating systems, device protocolstacks, device management and OTA.

These systems are devicelayer software systems thatare either sourced fromdevice or OS vendors byoperators to customize andpersonalize devices.



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Fig 15: Vendor selection for Software Platforms

Type of Software Vendor Selection Process

Communications Software Infrastructure The operator looks for a proven technology

vendor who can deliver best of breedsolution at an affordable price. Typicalvendor selection follows a due diligenceprocess through an RFI phase culminating inan RFP.

If the solution implementation is StandAlone and light on integration, the operatorwould work directly with the vendor withoutthe need for a Systems Integrator (SI).

Revenue Management and Assurance Vendor selection follows an intensive RFP

process through Systems Integrators who playthe role of Prime Integrator. Vendors workwith a single SI or all SIs who are active in aparticular operator account.

For Revenue Assurance solutions, theoperator engages a business consultant or aSystems Integrator as a prime vendor to studythe leakage problem. Vendor selectiondepends on the appropriateness of thesolution to address the problem and

Operational Support The operator looks for a proven technologyvendor, but would bring in SIs to respond toRFPs.

Enterprise Software and Applications Vendor selection follows an intensive RFPprocess through Systems Integrators who playthe role of Prime Integrator.

Network Operations Operators prefer their network equipment

partner to supply network management andnetwork optimization solutions.

However they are open to working with ISVwho offers unique solutions to problems.


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5. Growth Potential Traditional ringtones, games, wall papers, music, RingbackTones market growth is stagnant and in some cases declining.Operators are always on the lookout for exciting new content

and applications for their app stores.

6. Revenue Stream Revenue share with content providers is typically 20% of retailbilled revenue. Indian operators typically retain 70-80% ofretail revenue.

7. Market Players Content Management System vendors, App Store White LabelVendors and content aggregators

Amdocs/QPASS, Motricity, Wider Than (RBT), Quickplay Media(Video Clips), IMI Mobile, On Mobile (RBT and Reverse RBT),

Rock Entertainment, GetJar, Flypp from Infosys

8. Business Model Platform (Managed Services/Mobile Cloud) + Support

9. Entry Barriers Domestic Competitors

10. Entry Strategy Work directly with operators.

11. Content Servicesoffered

Games, Utility Apps, Productivity Apps, Entertainment Apps,Wallpapers, Ringtones, Weather, News, Music etc

12. MarketInhibitors/Threats

New app stores will gradually erode the value of traditionalpaid content offered over WAP (Wireless Application Protocol)traditional store fronts, as free content and apps are nowavailable through iTunes and other vendor specific app stores.



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5.3.3 Mobile Commerce & Payments

Fig 18: Mobile Commerce and Payments

No Market factors Description1. Market Definition Mobile Commerce includes both digital good and non-

digital good transaction processed and billed through themobile device and an accompanying backend commerceinfrastructure.

Mobile Commerce may be categorized as follows - mobilebanking, mobile coupons, mobile ticketing, mobile wallet,mobile payments (NFC based, Mobile P2P) etc.

2. Trends Most operators are currently in early stage trials withmobile coupons, mobile ticketing type of applications.

Mobile Banking is now widely available in the India marketthrough large Banks (ICICI, HDFC and other large publicsector banks).

Operators, Banks and Merchants are all vying for poleposition, so technology standards have been slow toevolve. But NFC is slow to be rolled out as devicemanufacturers position themselves as servicescompanies.

3. Market Size M-Commerce (both digital and physical goods, micropayment and macro payment) could be potentially worthbillions of dollars.

4. Product Offering Mobile Wallet Platform.

Mobile Banking Platform and Mobile Money TransferPlatforms.

Mobile NFC Platform.

5. Growth Potential Huge growth potential, but timing for hockey stickgrowth curve still uncertain.

6. Revenue Stream % of transaction value, platform license fee, professionalservices and support.


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5.3.4. Mobile Application StoresFig 19: Mobile Application Stores

No Market factors Description1. Market Definition Mobile App Stores involve the next generation of content and

downloadable apps with mobile WEB capabilities, HTML 5, native clientapps and the rapid integration of new services with carrier contentbilling.

2. Trends With the gradual collapse of the walled garden model, operators areonce again focusing their investments on reinvigorating their contentand media portfolio.

Many operators will co-opt stores from Android, and Blackberry) andwork with the likes of Infosys, Amdocs, Comverse, Getjar and Handangoto build their own app stores. Some operators are likely to deemphasizetheir own app stores while working aggressively to promote 3rd partyapp stores to sell new apps.

3. Market Size Apple iTunes has no local presence in India. Android has plans to launchan Indian version of the Android market place. (Timing TBD). BlackberryApp World, Microsoft and Nokia Ovi are planning to expand their marketpresence.

Operators dominate the app store landscape.

4. Product Offering App storefronts on the WEB, WAP, HTML, Downloadable clients.

5. Growth Potential Immense growth potential for paid apps, free app, freemium apps,and advertising funded apps.

6. Revenue Stream % of transaction value for paid apps.

7. Market Players Getjar, Android, MSFT, Ovi, Blackberry.

8. Business Model SAAS based business model.

9. Entry Barriers Existing players Involvement of large behemoths like Nokia, Blackberry and Android Need for an App storefront platform

10. Entry Strategy Application store as a white label offering for other 3rd parties who areinterested in launching an app storefront of their own.

11. Services offered Mobile Apps, Downloadable Content.12. Market

Inhibitors/ThreatsPoor demand for paid mobile applications as consumers warm up towidespread availability of free applications.



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market. New cost models for delivering low cost managed services should be

developed using cloud computing principles.

Partnering

Canadian software vendors already partner with the major equipment vendors

globally. They needs to be selective in working with local partners and services firms

since these firms also compete with them in the OSS and BSS Systems Integration

market.

Pricing Strategy

Since the Indian market can only support an ARPU of $4-5, it is important for

Canadian software vendors to adopt a pricing approach and strategy that can adapt to

local market needs. Getting pricing right is a key ingredient in winning deals.

Autonomy to Local Teams

In any emerging market, it is important to defer greater autonomy to local teams so

they can take quick action to resolve conflict situations stemming from major

customer issues. It also fosters local leadership talent that goes on to build long

lasting customer relationships.


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6. Indian Operators

This section provides an overview of Indias telecom operators and profiles the major

operators who play a significant role in driving the mobile telecommunications

industry.

Fig 24: Operator Revenues

Name of Operator Revenues (2009-10)Billions

Bharti Airtel $9.90BSNL $7.60Vodafone India $5.50Reliance Communications $5.20

Idea $2.50Tata CommunicationsTata Teleservices

$2.60$1.60

Aircel $1.10MTNL $0.80

Source: Voice and Data, Sep 2010

Bharti Airtel

Fig 25: Bharti Airtel: Key Highlights

BusinessPortfolio

Consumer Mobile, Enterprise, DTH, IntegratedTelco, Broadband

UniqueProposition

Brand Image, Market Leader

Non VoiceServices

12% of total revenues

Market

Presence

India, Africa. Bangladesh, Srilanka

3G Roll out December 2010



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Reliance Communications

Fig 26: Reliance Communications: Key Highlights

BusinessPortfolio

Consumer Mobile, Enterprise, DTH, IntegratedTelco, Broadband, Global IP Network

UniqueProposition

Innovator, Price Leader, Offer both CDMA and GSMservices

Non VoiceServices

GetJar platform with 65,000 free applications;MSFT Hosted Infrastructure platformIPTV ServicesNation-wide Data Card based Internet Broadband

MarketPresence

India



Tata Teleservices

Fig 27: Tata Teleservices: Key Highlights

BusinessPortfolio

Consumer Mobile, Enterprise, DTH, IntegratedTelco, Broadband

Unique

Proposition

Partnership with Japans NTT DoCoMo, Provide

services under both Tata Indicom and DoCoMobrands

Non VoiceRevenues

Push email, Rural VAS, Photon Mobile TV

MarketPresence

India

3G Roll out November 2010



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Idea

Fig 28: Idea: Key Highlights

BusinessPortfolio

Consumer Mobile in all 22 circles nationwide

UniqueProposition

Pure play mobile operator; App store powered bySpice Digitals Mobstore to be launched

Non VoiceRevenues

12%

MarketPresence

India

3G Roll out Q1 2011


BSNL

Fig 29: BSNL: Key Highlights

BusinessPortfolio

Consumer Mobile, Enterprise, Integrated Telco,Broadband

Unique

Proposition

State Owned with a social consciousness; First to

launch 3G Services; Major foray into WIMAX for 4GNon VoiceRevenues

20% of total revenues; Mobile TV, High SpeedMobile Internet

MarketPresence

India

3G Roll out Available Today



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Vodafone India

Fig 30: Vodafone India: Key Highlights

BusinessPortfolio

Consumer Mobile

UniqueProposition

Global Brand in India; First operator to launchApple iPhone 4,

Non VoiceServices

Launched app store with 10,000 downloads

MarketPresence

Pan-India



Aircel

Fig 31: Aircel: Key Highlights

BusinessPortfolio

Consumer Mobile

UniqueProposition

Unlimited Internet Plan, Daily Internet Plan

Non Voice

Revenues

Pocket Express Mobile app store front; 7% of total

revenuesMarketPresence

India

3G Roll out Likely in Q1 2011



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Fig 32: Tower Companies

Source: Edelweiss

7.1 Infrastructure Sharing ModelsThere are several infrastructure sharing models in the context of the India market

that needs to be understood for any new player entering the market. The industry

which has traditionally depended on passive infrastructure sharing models is moving

rapidly towards active infrastructure sharing as innovative new sharing models are

becoming more common in practice. A synopsis of the models that in vogue in theIndia market today is illustrated in the diagram below:

Fig 33: Infrastructure Sharing Models

Model Prime Functions Current StatusNetwork Sharing This would enable multiple

operators to share capacityon the network elementsthat constitute accessand/or core networks

To be pursued with theintroduction of 3G andBWA

Site Sharing/Collocation This model enablesoperators to collocate theirnetwork equipment on thesame tower

Currently in operation

Mobile Virtual Network This model enables Currently in Operation.


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further reduction in application development costs and spawning new business

models

Vendor led India Centric application stores with content and applications developed

for the Indian consumer is around the corner, further accelerating the pace ofinnovation in creating new application categories UGC/Social Networking, Utility,

Entertainment and Sports, Productivity among others

Content for low end phones will continue to attract attention as vendors focus their

application development efforts on SMS based mass market applications

The table below depicts various mobile applications and the state of maturity each of

them have attained with respect to consumer adoption. With the advent of 3G

applications and the launch of application stores from the various mobile operators,

the market is expected to steadily mature over the next decade, leading to increased

adoption of data services.


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Fig 37: VAS Applications Maturity Profile

No Type of Application Maturity Level

1. Mobile email

2. Mobile Video and TV

3. C-RBT

4. Ringtones

5. Mobile Music

6. Mobile Social Networking

7. SMS P2P

8. Mobile Games

9 SMS A2P

10. Mobile Banking

11. Mobile Micro Finance

12. Mobile Payments

13. Mobile Marketing

14. Mobile Advertising

15. Video Calling



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10. Vendor ProfilesThis section profiles some of the leading vendors to the Communications industry who

operate in India. The vendors have been

Network Equipment Systems Integrators

Enterprise Software

Communications Software

10.1 Network Equipment VendorsThe following Network Equipment vendors who are active in Indias Telecom market

have been profiled Huawei Technologies, ZTE, Ericsson, Nokia Siemens Networks and

Alcatel Lucent.

Fig 38: Network Equipment Vendor Profiles

Name of Company Description of Activities in the IndiaTheatre

1. Huawei Technologies Huwaei is a major player in the India market withcustomers including Reliance, Tata, BSNL, Airtel,MTNL and Aircel. It employs more than 2000people and does sales of close to $1 Billon. Thecompanys R&D centre in Bangalore is the largest

outside China.

Huawei has a strategic relationship with RelianceCommunications in network expansion with along-term cooperation agreement signed in 2007worth over $200 million. Huawei has a contractwith Idea Cellular to deliver managed services forits NGN network and has been chosen as amanaged services partner by Aircel. TataTeleservices, for its southern states has acontract for design, deployment, andmanagement of its GSM network, MPLS network,

and SDP with Huawei. Uninor, in October 2009,signed a deal for $ 225 million for the design,deployment, and management of the operator'snew GSM mobile network in India.

2. ZTE ZTE is another Chinese vendor with a major


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10.2 Systems IntegratorsThe following Systems Integrators who are active in Indias Telecom market have

been profiled - IBM, Tech Mahindra, Wipro, HP/EDS, Infosys, IBM, Accenture, TCS, HCL

Technologies, and Aricent.

Fig 39: Systems Integrator Profiles

Name of Company Description of Activities in the India Theatre

1. IBM IBM is a leader in Indias telecom outsourcingmarket. It signed a landmark agreement with BhartiAirtel worth $750 Million for managing theoperators IT services and followed that up with a

similar agreement with Vodafone and with Aircel.IBM also signed a 7-year contract with Idea Cellularin October 2009 to provide a Service DeliveryPlatform (SDP). IBM now manages around 300million subscribers in India by providing support tothe country's top telecom operators.

2. HP/EDSHP has had a long standing presence in the Indianmarket. HP sells hardware, IT services, andenterprise computers and has also established a

major R&D facility in India.

Hewlett Packard (HP) signed a deal with Aircel inApril 2010 to manage IT operations. The contractinvolves supplying billing, customer management,and database maintenance services.

3. Tech Mahindra Tech Mahindra is a large telecom focused SI with aglobal customer base. In India, Tech Mahindrascustomers include Airtel, Etisalat among otheroperators. Tech Mahindra offers a complete suite

of IT services including BPO, Systems Integration,VAS, Infrastructure Management, ApplicationMaintenance and Development.

4. Infosys Infosys is a global technology services firm and one


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of Indias largest IT services providers. Infosys hasrecently stepped up its India Business Developmentwith the establishment of an India Business Unit.The company has announced the deployment of its

Flypp mobile application development and contentstore platform at Aircel to support that operatorsmobile app store.

Infosys is also involved in IT enabling Airtels 3Screen strategies to bring digital consumerscontent across multiple platforms Mobile,Broadband and TV.

5. Wipro Wipro Technologies is a Global Consulting, System

Integration and Outsourcing company. Wipro worksclosely with major software vendors includingOracle to bring new VAS services to market byleveraging the Oracle SDP platform. The VASoffering is targeted towards operators toaccelerate VAS roll out.

Wipro works with two Telcos in India Aircel andUninor.



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the Oracle E-Business Suite.4. Comviva Comviva (formerly Bharti Telsoft) is an ISV that

provides VAS software platforms for mobilemessaging, Ringback Tones (RBT), mobile payments.

The company manages hundreds of VAS networknodes in a managed services model for Bharti Airtel.Besides a large presence in the India market, it hasoperations in the middle east and Africa.

5. On Mobile OnMobile is a provider of VAS software platformsand services to service providers. Based in India,OnMobile

6. Acision Acision is a provider of billing, messaging andcontent management software to service providers.

Acision recently signed a deal with TataTeleservices in February 2010 to provide billingsoftware.

7. Telcordia Telcordia is a provider of operating supportsystems, Mobile Number Portability Platformssystems for services providers. In India, Telcordiawas recently confirmed as one of the two MNPproviders that will manage and support the MNPdatabase for operators. Also, Telcordia signed a 5-year multi-million dollar contract with Unitech

Wireless (Uninor) in June 2009 for customermanagement solutions (incl. real-time charging).

8. Motricity Motricity is a provider of mobile contentmanagement solutions to service providers. In India,Motricity signed a software deal with RelianceCommunications in October 2010. The software letswireless carriers get their users onto the Internetvia mobile devices such as cell phones and will beused for Reliance's mobile data services business.

9. Redknee Redknee is a provider of billing, messaging andmobile money solutions to service providersglobally. In India, Redknee has signed a deal withLoop Mobile to provide real-time charging andbilling systems.


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10. Subex Subex is a provider of revenue assurance andservice activation solutions for global servicesproviders. IBM and Subex signed a deal with IdeaCellular in August 2010 to implement ROC (Revenue

Operations Centre) for interconnect billing.



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11. Business Models

While it is a well know fact that Indian IT services providers have emerged as leaders

in global outsourcing, what is not so well known is that Indian operators like Airtel

pioneered the outsourcing of network services, IT services and call centre services.

Except for core business functions like sales, marketing and new product

development, Indian operators outsource all non-core functions to third party

specialists. Typically, they outsource network services to large global equipment

vendors, IT services to IT providers and Call centre services to Business Process

Outsourcing (BPO) specialists.

A list of core principles that Indian operators apply to their business philosophy is

summarized below:

When investing in networks, software or procuring services, Indian operatorshave a preference for Opex based pricing models rather than Capex based

investments.

Only in very rare instances are they willing to work with vendors on a license

model (perpetual license or a monthly per subscriber license model)

Pricing for outsourcing services is based on the managed services model and

the vendor is expected to supply the data centre and all associated software

and support

Indian operators are interested in cloud computing and some are investing in

the infrastructure as part of their enterprise service offering

Cloud computing is still very much at a conceptual framing stage and it couldtake a few years for commercial deals to emerge; However, all major

players in the IT space are formulating their cloud strategies and positioning

themselves for the future

Pricing models need to be tailored to the realities of the Indian market

where ARPU has dipped to as low as $4.50/month. A good benchmark for

pricing would be as follows - India pricing is typically 20% of the price for a

similar solution in the Canadian market unless the solution is a proprietary

product or a network solution that is unique in addressing the market need

Support needs to be provided sometimes in the local language using local

assets

Product needs to be customized and localized to meet operators in the

Indian market even if the core product is developed in Canada

Operators would like to deal with an Indian face who can speak the local

language


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12. Market Engagement

India is among one of the biggest telecom market opportunities in the world.

However, it is also the most complex and difficult market to enter for a variety ofreasons - cultural factors, business practices that are often at odds with Western

business practice, lengthy business decision making process, the peculiarities of

Government policies, infrastructure issues among many others. It is important that

Canadian companies entering the market devise a market entry strategy that is in

congruence with their market objectives short, medium and long term.

12.1 Market Entry Strategies

For the most part, Canadian telecom companies that are interested in entering India

are small start ups or mid level companies with limited resources and capital. They

also have shorter time frames for demonstrating success in the market. With more

than 14 operators in the market, hundreds of ISVs in the telecom ecosystem and a

complex purchasing process.

1. Medium to Long Term Commitment

It is imperative that firms that are committed to enter the India market plan for a 4-5

year time horizon for achieving success and building a sustainable revenue stream. In

some cases, it may take longer to

2. Defining Market Entry Objectives

It is absolutely important to define high level objectives prior to performing due

diligence on the market opportunity. If the objective is long term growth (0-5 year

horizon), it is imperative that a pre-defined and phased evolution of the objectives

and growth mode is communicated to the team.

3. Selecting the right team

It is critical to select the right team with the right capability set, values, relationships

and deep industry connections to execute the strategy. If need be, involve the local

team in the strategy formulation process once a strawman is ready prior to


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recruitment. It is never advisable to recruit a team and then handover the objectives

of market entry to the local team without a formal agreement on the entry strategy

with the corporate executive home team.

4. Managing expectations

While it is generally true that the Indian telecom market is due for explosive growth

over the next decade, it is also important to evaluate each market opportunity on its

own merit rather than be swayed by general euphoria of growth.

5. Patience is virtue

New entrants are often frustrated by slow pace of progress in winning deals. It is

important to be patient in dealing with operators and partners as the key to winning

in the long term depends to a large extent on winning the trust of decision makers

and influencers.

6. Partner Selection

For many first time market entrants pursuing a partner strategy, a major hurdle to

claiming initial success is the ability to be able to select a suitable local partner who

is trustworthy and successful in clinching the initial deal. Successful companies are

clear about why they should partner, whom they should partner with and spend time

in studying the partner prior to joining hands to achieve common objectives and seek

win-win propositions while approaching and taking advantage of market opportunities.

7. Organizing a Field Team

The success or failure in the market will be determined by the quality of the field

team, the chemistry among its core members, prior success in the market and

building a solid team orientation for attaining long term success.

12.2 Strategic Options for Market Entry

This section deals with the various market entry modes that are available to a new

market entrant, the pros and cons of adopting each of these strategies and the

conditions under which each one of these strategies can be successful.


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Fig 41: Market Entry Modes

Entry Mode Pros Cons StrategicImperatives

Go it alone Entrant is a largeplayer in its homemarket

Too risky, timeconsuming andexpensive option forsmall players

Huge upfront costsand Time to marketissues recruitmentof local team,training, set upcosts etc

Market space is ata nascent stage ofgrowth in theProduct Life Cycle

Entrant possessesthe financialstrength/power to addressthe long termopportunity

Entrant has plansto tap into localtalent pool andbuild a centre ofexcellence fortechnology in India

Entrant has longterms plans forlocal product

design anddevelopment toaddress the Indiamarketopportunity

Entrant is a globalplayer withsubstantialtechnicalresources to

support Indiamarket operation

The addressablemarket spacerepresents a largeand growing


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marketopportunity thatneeds long termcommitment for

success

Global ChannelPartner (NEM, ISV,SI)

Ex., Ericsson, NSN,Huawei,Accenture, Oracle,

IBM

OEM product thatcan be bundled withPartner solution

Need to addressimmediate marketrequirement

Short terminvestment timehorizon

Cost effectivemarket entry

Tap into Partnersglobal resources

Little to no controlor visibility intosales pipeline

Lack of partnercommitment

Ideal strategy totest waters priorto developingstrategies for in-depth marketpenetration

Joint Venture

Local orInternationalPartner

Partners sharesimilar world viewof the marketopportunity

Each partner bringsunique strengths tothe table

Have a 3-5 year

time commitment

Entrant facesformidable entrybarriers

Local Partner as a Tap into immense


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to provide mobile access to email,IM, apps, media file and theInternet.

at long term growthInvest for the long haul

Wesley

Clover

Wesley Clover Communication

Solutions (WCCS) deploystechnology solutions from aroundthe world into the Indiamarketplace. WCS operates withpan-India presence, includingGurgaon and sales and post-salessupport in Tier 1 cities acrossIndia.In 2008 WCCS acquired Pune-based software engineeringservices company Telesoft, with

the goal of providing India-specificfeature development. The Indiateam in Pune develops softwareproducts and features for leadingproduct companies from NorthAmerica.WCCS is a subsidiary of TaraSpanInc, Canada's technology industryleader for the acceleration ofmarket entry into India.

Localization

Leading edge technologysolutions tailored to Indianmarket needDistributor and Value-addedreseller of Canadian technologysolutionsProduct based solution and localservices, support

Redknee Redknee provides wireless and

wireline operators with real-time,end-to-end solutions that addressthe entire subscriber life cycle. -Provisioning, rating, charging andbilling, to launching newpersonalized services andenhancing customer care,

Work with Local SI as well as use

direct channel to sell solutionsLocal Professional services teamto build solutions for IndiamarketUse low cost Indian talent poolto serve other markets acrossAsia PacificBuild small base of R&D talent towork with HQ teams on coreproducts of the futureUse local talent pool to provide

global technical support forproducts and servicesiSee Media Iseemedia Inc is a mobile wireless

software solutions company with aportfolio of content adaptation,interactive streaming and media

Work directly with Indianoperators to sell solutions


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server technologies for use inmobile wireless applications.Iseemedia products includeiseedocs and iseemail mobile

wireless applications. iseeMedia isnow a part of Synchronica Plc.CGI CGIs operations in India, which

began in 1991. The companyoperates centers of excellence inMumbai, Bangalore and Hyderabadas part of the global deliverymodel. This model offersonshore, near shore and offshorecapabilities. CGIs state-of-the-artdelivery centers in India provide

clients with high-end softwaredesign and development,application maintenance, businessprocess services and infrastructuremanagement. Working withmarquee clients across the UnitedStates, Canada and Europe, ourIndia centers have particularexpertise within the followingareas

Tap into local talent pool toestablish low cost global deliverymodelOutsource North American clientoperations to India

Dragonwave DragonWave is a provider of high-capacity packet microwavesolutions for next-generation IPnetworks. DragonWaves point-to-point packet microwave systemstransmit broadband voice, videoand data, enabling serviceproviders, government agenciesand enterprises to meet theirincreasing bandwidthrequirements. DragonWaves

products include wireless networkbackhaul, leased linereplacement, last mile fibreextension and enterprisenetworks.

Joint Venture strategy with alocal Indian company HFCL topursue opportunities in IndiaLong term investments in localmanufacturingJV Partner takes the lead in thedomestic venture with coretechnology elements beingprovided from HQ



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13. Next Practices

Over the course of the past decade, Indian operators have been primarily focused on

growing their domestic subscriber base. Early entrants like Bharti Airtel, Essar andTata Teleservices have grown into major players in India supporting millions of mobile

subscribers. Bharti Airtel in particular has emerged as a leader in the industry in many

respects: It has built formidable brand equity in the market, introduced compelling

new service offerings for consumers, adopted cost control through innovative cost

sharing models with suppliers through outsourcing of the network and

billing/customer care models and generated profits by running a lean organization.

Having achieved enormous success in conceiving, managing and operating a low cost

mobile operator business model, Bharti Airtel is transplanting this model to the global

stage. In April 2010, Bharti Airtel acquired Zain, a Pan-African operator for $10.4

Billion to enter the African market which resembles the low ARPU India market.

13.1 Outward M&A of Indian Telecom Software Vendors

Indian software services vendors have globalized their footprint and operations around

the globe. India`s software exports industry now exceeds $50B per year. Increasingly,

India`s mobile software and telecom software product vendors are stepping out of

India to pursue growth opportunities in advanced markets including strategic

acquisitions.

Fig 43: M&A of Indian Vendors

Name of Company Target Rationale

On Mobile Voxmobili, Telisma,Dilithium Networks

Acquire strategictechnology expertiseand IP

Expand into Europe,Latam and NA

IMI Mobile WIN Plc European and UKexpansion strategy

Gain foothold withmarquee clients inmobile entertainment


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Sensitivity to regional disparities and differences India is a vast market with stark

differences in levels of development and disparities in growth. It is important to

recognize this fact and shape strategies accordingly.

Focus on ROI (Return on India) Market commitment, staying power, a clear eyedlong term strategy, partnering with the right organizations, securing quick wins and

building the right local sales organization are pre-requisites for success.

Bibliography

K.Jha, L. (2010, June 23). India to clock double digit growth by 2012: FM. RetrievedOctober 20, 2010, from Livemint:

http://www.livemint.com/articles/2010/06/23151303/India-to-clock-double-digit-

gr.html

Krishnan, U. (2010, October 7). India 2010 Economic Growth Raised to 9.7%, More

Than Expected, IMF Says. Retrieved October 20, 2010, from Bloomberg :

http://www.bloomberg.com/news/2010-10-06/imf-raises-india-2010-economic-

growth-forecast-to-9-7-on-consumer-demand.html

Ram Kumar, A. (. (2010). Indian Telecom Sector . New Delhi: Department ofTelecommunications, Government of India .

Singh, R. (2010, September ). New Dimension: Co-Location of antennas on existing

towers is being touted as an attractive way to save capital and operational expenses .

Voice and Data , pp. 62-66.

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