India has one of the biggest telecom markets in the world.

It has more GSM subscribers than fixed-line fixedsubscribers.

Total telecom subscribers 525 million (Dec 2009) Teledensity 42.27 per cent (August 2009)1 Addition of mobile subscribers (July August 2009) 15.08 million1 Annual growth rate of telecom subscribers (June 2008 June 2009) 42.68 per cent Average Revenue Per User (ARPU) for GSM (as on 30 June 2009) Rs 184.83 Telecom equipment market (2008 09) US$ 24.99 billion Handset market (2008-09) US$ 5.82 billion (2008Expected mobile subscriber base (2013) About 771 million.

10The telecom subscriber base in India is likely to reach 500 million by 2010. The subscriber base grew to 494.07 million (August 2009), registering a growth of approximately 42.67 per cent over last year. It grew at a CAGR of 45.21 per cent from June 2004 to June 2009. Teledensity in India is still low as compared to that in some countries. As on August 2009, India had a teledensity of 42.27 per cent as compared to the previous year s figure of 29.83 per cent Teledensity
45 40 35 30 25 20 15 10 5 0 Teledensity

1 7.04

2 9.61

3 13.96

4 19.06

5 28.33

6 39.86

Large population. Low telephony penetration which is giving a lot of scope to increase subscriber base. Rise in consumer income & spending owing to strong economic growth

By selling VAS

ARPU numbers as reported by players currently are understated. Increase in profitability in the next five years because of
 Increase in revenue  Decrease in operating cost

Larger and more profitable operators are bound to emerge after a wave of consolidation

3G services will help increase revenues Mobile Number Portability will benefit the companies users switch to

Lower tariff rates

 Greater savings  Easy availability of service providers  More options in terms of network providers

Usage increased Mobile number portability

Improvement in quality of services

 Network coverage  Call drops are less  Easy bill paying options Payment Kiosks Online payments Drop boxes  Improved customer helplines

Value added services

 Can plan their own tariff plan  Internet services have improved  Ring tones downloads, Caller tunes  MMS, GPRS  Infotainment etc.

Focus on careful market segmentation and value-based differentiation adopt a dynamic pricing strategy well designed self service system differentiate services offered to these segments through better network quality, customer care and marketing