Operators – Subscriber Base Study

Subscriber Base: GSM & CDMA

Millions

800 700 600 500 400 300 200 307 100 0
No v'0 9 Oc t'0 9 M ar '1 0 Ap r'1 0 M ay '1 0 M ay '0 9 Au g' 09 De c'0 9 Ju l'1 0 Au g' 10
Source: COAI & AUSPI

415

427

441

457

471

487

505

538

560

580

600

616

633

652

668

687

108

111

115

121

126

132

138

158

166

172

178

183

189

195

200

205

316

326

336

345

355

367

380

394

408

422

433

444

457

468

482

Ju n' 09 Ju ly '0 9

Ja n' 10 Fe b' 10

Se p' 09

GSM

CDMA

Ju n' 10

Net Addition: GSM & CDMA
Million

35 30 25 20 15 10 5 0
14 12 12 18 16 15 16

33

Subsriber - Net Addition

20

22 20 20 16 17 18 19 17

8 6 6

6

6

3 9

3 9

4

6

6

5

6

6

5 6

10 10 9

12 13 14 14 14 11 11 12 11 14 10

M ay '0 Ju 9 n' 0 Ju 9 ly '0 Au 9 g' 0 Se 9 p' 09 Oc t'0 No 9 v'0 De 9 c'0 Ja 9 n' 1 Fe 0 b' 1 M 0 ar '1 Ap 0 r'1 M 0 ay '1 Ju 0 n' 10 Ju l'1 Au 0 g' 10

GSM

CDMA

Source: COAI & AUSPI

Total Wireless & Teledensity
700 Millions 600 500 33.71 400 300 200 100 0 Sep '08 Dec '08 M ar '09 J un '09 Sep '09 Teledensity
Source: TRAI

49.6 44.72 40.3 36.64

27.32

29.96

Dec '09

M ar '10

W ireless Subscribers

Percentage

60 50 40 30 20 10 0

Operator Market Share - GSM
35% 30% 25% Market Share 20% 15% 10% 5% 0%
ID Air EA ce l Li mi Dis ted hn et wi Re rel lia es nc eT s ele co m Un ino r MT N Vid L eo co Sp n ice Co mm Lo . op Mo bil e BS NL ST el Bh art iA Vo irt da el fon eE ssa r Int er ne t Eti sal at
Bharti Airtel: 141 mn Vodafone: 113 mn BSNL: 70 mn Idea: 69 mn

29.3% 23.6%

14.6%14.5% 6.1% 3.2% 3.1% 1.9% 1.0% 0.8% 0.6% 0.6% 0.3% 0.3% 0.0%

Re lia ble
Source: COAI

Operator Market Share - CDMA
6% 0

5. 0 68 %

Reliance: 116 mn TATA: 78 mn Shyam: 61 mn BTVL: 32 mn

5% 0

Marke S t hare

4% 0

3. 0 81 %

3% 0

2% 0

1% 0 30 % .0 0 %
R lia c e ne T A AT S ym ha BT L V H L FC

15 % .6

05 % .5

Source: AUSPI

Telecom Industry Snapshot – Wireless Subscribers Sep. ‘09
Sep’09 Total Wireless Subscriber Urban Subscribers Rural Subscribers CDMA Subscribers Teledensity Urban Teledensity Rural Teledensity Bharti Airtel 101 mn 40.31% 94.98% 17.22% 471 mn 330 mn 142 mn 104 mn 44.72% 103.20% 19.95%

Dec. ‘09
Dec’09 525 mn 361 mn 165 mn 106 mn

Mar. ‘10
Mar’10 584 mn 393 mn 191 mn

49.60% 112.03% 23.08%

Leading with 29.33% Market Share (141 mn Subscribers) (As on Aug’10)

Source: TRAI, COAI & AUSPI

Handset Market

GSM & CDMA Handset Sale

GSM – Market Scenario
1. 2. 3. 4. 5. On an average around 10 mn units sold every year (25% being Dual) Nokia has been consistently loosing its Market Share, Samsung has been consistently gaining (Guru Series Phone) Chinese Market Share due to increasing demand for Dual SIM has been increasing As an Indian Brand Spice & Micromax have been gaining high volumes Overall Segment size of 1.5K ~ 4.5K has grown
Market Share Segment Share

*GSM Data

Dual SIM & Chinese GSM Handsets

Dual SIM

Dual SIM : Market Trend & Segment
• Dual SIM rising as Operators drive differentiated value (Lifetime, Call Rates, Data, Promotional Offers/Trial Packs) • Dual SIM contributed 84% in Jan’10 but 79% in Apr’10 (Purchase for Single SIM is increasing) • Corner a large portion of Utilitarian Zone ($40-$80) • 2-3K represents 17% of Mkt by Unit & 3-4K represents 13%
Dual SIM Trend Dual SIM Segment Contr%

%t Q y

%t Q y

(Rs.)

Source : GFK Top 35 Report

Dual SIM : Market Share
• Emergence of Local Brands driving Dual SIM Biz • Videocon & Onida (Cons. Durable Brands) join the race for MS • Micromax is clear leader with differentiated models & media promotions • Karbonn & Spice increase media spends • Samsung launched 3 Models in last Qtr

Dual SIM MS 100%

68.6% 50%

59.5%

59.2%

58.8%

51.4%

43.4%

11.2% 9.1% 13.2% 10.4% 4.7% 8.6% 200906 7.3% 12.8% 200907 11.2% 7.7% 15.8% 200908
SPICE ONIDA

10.0% 8.1% 16.3% 200909
KARBONN VIDEOCON

10.1% 22.2%

12.3% 25.8%

0%

200910

200911
SAMSUNG OTHERS

MICROMAX FLY

Source : GFK Top 35 Report

Dual SIM : Top 24 Model (60% of Vol)
RRP ($)
Q3

Micromax [6/24]

Karbonn [4/24]
K444

Spice [2/24]
M5252

Others [12/24]
SS C5212

4
1.3 MP, BT Full QWERTY 1000 mAh

X250

K451

2
1.3MP, BT 1000 mAh VGA, MP3, BT Torch, 8GB Exp 1800mAh VGA, MP3, BT Torch, Motion Games 1300 mAh FXD S80i FXD S90i Maxx MX533

1
VGA, MP3, BT, Torch, 2GB Exp 1300 mAh VGA, MP3, BT, Torch, 4GB Exp 1100 mAh

X225

Alfatel H1

$60

5
VGA, MP3, BT, 2GB Exp 700 mAh

K217
Touch Panel, 1.3MP, BT, 2GB Exp 2 MP, BT 2GB Exp Touch, VGA, BT, Exp. Mem 1050 mAh 2.6” Touch, 1.3 MP, 8 GB Exp 900 mAh SigmaTel T99 NKTEL 2008

X116

X21

VGA, MP3 BT, 2GB Exp 700 mAh

G Five U800

7
VGA, 4GB Exp 1800mAh

3
1.3 MP Flash, BT 1000 mAh

MP3, 8GB Exp 1800 mAh 2.4” 1.3MP, BT Super Bass, Exp Mem Touch Scr,1.3MP,BT Exp Mem Sigmatel S90

$50

M4580 K330

6
Torch, 4GB Exp 1500 mAh FLY DS100 NKTEL A200

GEEPEE 2144 Half Touch, 1.3 MP, BT 1800 mAh

10

X114

$40

8
MP3, 2GB Exp, Torch 1050 mAh

MP3, 4GB Exp 1100mAh

9
MP3, Exp Mem 1000 mAh Touch Panel, VGA,, BT 1200 mAh

Mp3, 4GB Exp 1800 mAh

•Top 25 Models according to GFK Sales •Chinese E71 not considered

Dual SIM : Media Snippets

Videocon TVC

Micromax EZPad TVC

Micromax MTV Phone TVC

Spice TVC Spice Celeb Endorsement Cricket Series Sponsors

Dual SIM : Micromax

Micromax EZPad TVC

Micromax MTV Phone TVC

Dual SIM : Spice Mobiles

Spice TVC

Chinese Handsets

Chinese Handsets

Chinese : Market Trend & Segment
• Chinese handsets offering cheap handsets & are relevant largely in 2-3K ($45-65) Price Segment • Big Battery, Big Screen & Big Sound and additional features are key selling points • Either Procured or Traded in Grey Market • Sold as is basis, No Service or Support

Chinese (GSM) Handset 100% 100%

Chinese Handset Segment Contr%

50%

%t Q y

50% 9.6% 1.2% 14.6% 3-4K 0.3% 1.0% 4-6K 0.0% 0.3% 6-8K 0.0% 0.0% 8-10K (Rs.)

%t Q y

0%

2.1% 4.4% 200906

1.9% 3.8% 200907

2.2% 5.2% 200908

2.1% 6.4% 200909

2.1% 6.1% 200910

2.2% 6.1% 200911

25.9% 0% 0.8% 0.6% 1-2K 2-3K

CH-DUAL

CH-SINGLE

BRANDED

CH-DUAL

CH-SINGLE

BRANDED

Source : GFK Top 35 Report

Chinese : Price Bandwise Feature Offering
Price Range Branded Players Indian Brands Chinese Brands
Dual SIM, TV Out, Touch Screen Phones, Mega Pixel 2~5MP

Branded M/S : 53% Indian Brand M/S : 31% Chinese Brand M/S : 16%

3-4K 2-3K
0-2K

VGA Multimedia, 1.3 MP Phones

1.3~2 MP Dual SIM Phones, Touch Screen Phones

Branded M/S : 49% Indian Brand M/S : 15% Chinese Brand M/S : 36%

MP3, VGA with Expandable Memory, BlueTooth

Dual SIM VGA, 1.3 MP Multimedia Phones, Loud Sound Proposition

Dual SIM, 1.3MP~to 3.2 MP Phones with Bluetooth, Metallic Design, Very Loud Sound, Touch/Big Screen, 1800mAh Battery

Branded M/S : 94% Indian Brand M/S : 4.5% Chinese Brand M/S : 1.4%

Single SIM FM Phones, Differentiation on features like Wireless FM, Screen Size, Solar, Dual Speakers

Dual SIM FM & MP3 Phones with Expandable Memory

MP3, VGA/1.3MP with Expandable Memory, Dual SIM, Dual SIM Touch Phones, Large Batteries

Summary :
• Dual SIM represents a Big opportunity in 3-4K price segment. • Branded Dual SIM has redefined Value Proposition in this segment along with Big Battery, Big Sound & better Design • ‘Dual SIM Qwerty’ & ‘Basic Multimedia with Big Battery & Sound’ deliver winning Story so far. • Chinese Phones (Unbranded) offer “Cheap” phones with great Battery & Sound in 2-3K price segment. They have low reliability & service backup • Over 70% of Unbranded Chinese Handsets are also Dual SIM • Dual SIM has universal appeal as a Feature

End of Document

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