Indian Telecom Industry A Brief History

2006: DoT announces criteria for additional spectrum

1981: Contracts 1992: VAS opened with a French to private sector company to merge participation with the state 1947: owned ITI, to set up 1994: NTP 1994 Nationalization of 5 million lines per 1997: Establishment all foreign year of TRAI telecommunication 1985: Establishment 1999: NTP 1999 companies to of DoT constitute the posts 2000: Establishment & telegraph 1986: Establishment of TDSAT of VSNL and MTNL 1950: Telephone exchanges taken over from the princely states

1991: Telecom equipment manufacturing deregulated

2003: Unified Access Service License (UASL); 2008: New licenses Interconnect Usage granted by DoT Charges (IUC); and 2010: 3G and BWA calling party pays spectrum auction (CPP) 2011: MNP launched 2004: Broadband Pan-India policy; universal
licensing regime; and guidelines for intra-circle M&A

2007: Cap on number of players in a circle removed

2012: 122 2G licenses revoked

SWOT Analysis Idea Cellular

Strengths
Pan India Presence

Weakness
Low Presence in Non-Voice & VAS Segments Overall Industry Competitiveness Result In Low Prices & Margins Company Has Low Presence As Compared To Larger Competitors Revocation of Licenses by The Supreme Court Has Dampened Investment Sentiment

Strong Infrastructural Capabilities

Presence In 3G Market Growing Revenue Market Share Competitive Operations & Cost Management Strong Operational Fundamentals

Global Scale Of Operations

Roll Out of 4G Services A Potential Dampener For 3G Profits

SWOT
Opportunities
Mobile Banking
Rollout of 3G In Market Revoking of 122 Telecom Licenses By The Supreme Court of India Provides Passive Infrastructure Services In 15 Service Areas Infra Sharing (Through Indus) Provides Significant Cost Benefits

Threats
High level of competition
Overall Saturation of Telecom Market Lack of Clarity In Government Policy Huge Bet on 3G Services (Large Capex) New Entrants Can Disrupt Pricing & Profitability In Market (Tata DoCoMo) Mobile Number Portability Weak Investment Climate May Hamper Foreign Investments