March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 3
March 2005 Telecom Population States/UTs Geographical Area
Languages recognised Business language Per Capita Income** GDP**
Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at
factor cost & at current prices) 1USD=43.54 INR (as on July 4,
2005) Source:CSO Statistics
Slide 4
March 2005 India - Fast pace Growth Largest democracy 4th
largest economy by PPP index 6th largest energy consumer ForEx
reserves skyrocket from US$ 42 bn (2001) to US$ 133 bn (February,
2005) GDP growth to continue between 6-8% 3rd largest economy by
2050: Goldman Sachs Leading in IT & ITES Oil & Gas and
Biotechnology sunrise industries
Slide 5
March 2005 India - Leading the world Hero Honda - largest
manufacturer of motorcycles Moser Baer - among the top three media
manufacturers in the world Pharmaceutical Industry - 4th largest in
world Walmart, GAP, Hilfiger sources more than USD 1bn worth
apparel from India 100 Fortune 500 have set R&D facilities in
India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
Slide 6
March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 7
March 2005 Equilibrium Rumblings Identity crisis Refocus
Dynamiccompetition 2001 1999 1998 1995- 1996 1997 1994 2000 2002
2003 Upto1994 National Telecom Policy, 1994 New Telecom Policy,
1999 2004 Unified Licensing Regime State regulated firms Strategy
heavily influenced by Government and Regulators Corporate values
based on public interest Limited customer choice Threats of
privatisation Fully adjusted marketplace No distinction between
incumbents and challengers Wide range of customer choice Normal
market forces apply Industry consolidates Mobile fixed crossover
Technological advances lead to substitutes Niche players evolve /
Call-back operators provide service Regulators formed Competition
begins An argument for Strategic Partnerships Traditional
assumptions challenged Marketing and sales focus Regulator vs
Provider conflict Increasing competition Losing key competencies
Competitors find niche or die out Industry settles Greater emphasis
on shareholder value Focus on customer satisfaction Foreign
Promoter Exits Bell Canada, British Telecom, Millicom, Shinawatra,
Swisscom, Telecom Italia, Telekom Malaysia, Telia, Telstra,
Vodaphone Indian Promoter Cash-Outs HFCL, Max, RPG, Usha Foreign
Promoter Exits Firsy Pacific, TIW, Vodaphone Indian Promoter Exits
RPG, Escorts Life Cycle Stage of Indian Telecom
Slide 8
March 2005 Revenue to increase 3 times in the next 5 years
Current teledensity of 8.8 % set to increase to 20% in the next 5
years beating Government targets by 3 years Growth rate about 2.5
million subs per month Mobile subscriber base has surpassed the
fixed lines Indian telecom on the cusp of paradigm shift
Slide 9
March 2005 Telecom Market 7th largest telecom network in the
world Telecom network growth rate30% Fixed lines (Dec, 2004)44.76
million Wireless connections (Dec, 2004)48 million Size (2003)US$ 9
billion 2010 (projected)US$ 23 billion
Slide 10
March 2005 Telecom Services Market Share in total revenue of
Wireline servicesto fall from half to 30% Wireless services to rise
to half Data revenue to rise from 2% to 8% Over next 5-8 years
Slide 11
March 2005 Switching Infrastructure Switching capacity of 60
million fixed network BSNL MTNL Other Private Operators As on
September 2003
Slide 12
March 2005 Transmission Infrastructure Optical fibre base 0.5
million route km Microwave base 0.15 million route km
Slide 13
March 2005 Telecom Infrastructure - Enormous Scope Urban
teledensity18.2% Rural teledensity1.5% High on Growth Bound to
spread into rural India
Slide 14
March 2005 Rising Teledensity & Telephone Subscribers India
is targetting 250 million users by 2007 India needs $30 billion to
meet a target of one phone for every five people by 2010 Total
telecom revenues expected to almost triple from US$ 9 billion in
2002 to US$ 23-25 billion by 2007.
March 2005 Subsciber base : Almost 1.5 million wireless
subscribers added every month The Mobile Market GSM37.37 mn CDMA
11mn Number of networks(GSM)70 Number of cities covered(GSM)
2000
Slide 17
March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 18
March 2005 Service Providers GSM service providers Bharti BSNL
Hutch IDEA BPL Spice Escotel Aircel Reliance MTNL Hexacom CDMA
service providers Tatas Reliance HFCLShyam
Slide 19
March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 20
March 2005 India - An attractive and lucrative destination
(1991-2003) FDI in Telecom US$ 2 billion 20% of total FDIrelated to
telecom
Slide 21
March 2005 Huge Demand Potential Low teledensity levels
indicate a huge untapped market.
Slide 22
March 2005 Invest in India Intra-Circle and Acquisition
Guidelines provides increasing opportunities for investor
stakes
Slide 23
March 2005 India outshining China In the 9th year of wireless
operation China 6.8 million India 28 million India Vs China in
comparable years of service In millions
Slide 24
March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 25
March 2005 India Advantage India -an emerging destination for
software, IT enabled services and tourism Share of the services
sector in GDP to rise to 60% by 2020
Slide 26
March 2005 Demographic Advantage Working age population to rise
to 65% Urban population to rise to 40% 30-40 mn people join middle
class every year By 2020
Slide 27
March 2005 National Telecom Policy (NTP) - 1999 Impact of
NTP-99 on mobile subscriber uptake Migration from fixed to revenue
share license fee regime Liberalised long distance sector
Slide 28
March 2005 FDI limit increased from 49% to 74%. India needs US
$30 bn to increase tele-density to 20% by 2010 100% FDI permitted
under automatic route in the manufacturing sector Virtually
complete deregulation Unified Access Service License
Interconnection Usage Charge (IUC) Broadband Policy announced.
Targets 20 million broadband subscribers by 2010. Exemption from
customs duty for import of MSCs(Mobile Switching Centres) Policy
Advantage
Slide 29
March 2005 Telecom India - An Overview Market and Growth
Potential Players Opportunities Why India? Contact in India
Slide 30
March 2005 Contact in India Confederation of Indian Industry
249 -F, Sector 18 Udyog Vihar Phase IV Gurgaon 122015 Haryana,
India Tel 0091 124 5014060-67 Fax 0091 124 5014080/5013874 E mail
[email protected]