ETOP for TATA DoCoMo

Tarun Kandarpa Suraj Jain Saurabh Thadani Srikanth Konduri Tushar Gupta Nikhil Gupta Anirudh Verma 10DM-162 10DM-163 10FN-102 10FN-109 10FN-115 10FN-121 10IB-069

Environmental Sectors

ETOP FOR BICYCLE COMPANY

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Economic

Expanding Indian Economy with positive GDP trends compared to other countries. Population mix moving favorably towards a younger age population. Urbanization with increasing disposable incomes. Increase in growth rate of number of new connections added per year. Increase in average revenue per subscriber due to increase in number of value added services.

Social

Lifestyle Changes, Increased standard of living- A normal Indian is becoming more and more equipped with technology and telecom is seen as a tool to empowerment. Consumer activism- market is becoming more consumer centric and due to stiff competition in the industry it is the end users that are benefiting. Growth rate of population- A big market size is the main attraction for all the players, penetration is still quite low in rural and semi-urban areas, thus tremendous scope.

Environmental Sectors

ETOP FOR BICYCLE COMPANY

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Political

Mobile phone licenses are tightly controlled and access to spectrum is limited. DoCoMo got licenses in only 19 out of 22 circles. Due to allegations 2G scam, price of TTSL dropped by 20%. Ministry of Communications recent study on SAR absorption levels indicate a significant health risk posed by usage of cell phones. The committee has also recommended high density residential areas, schools and hospitals to be kept free from mobile tower installations. Needs to pay extra fee for gaining extra spectrum. TRAI has welcomed the innovative per second tariff idea of Docomo. Govt. is on a mission to cancel out illegitimate 2G licenses issued by ex-minister A.Raja, affecting old operators but not Tata Docomo. TTML won 3G licenses in 9 circles. The existing M&A norms will be eased in new telecom policy to bring-in much needed consolidation in this hyper competitive sector. TRAI is also proposing deep cuts in charges paid by operators to each other, in a move to lower tariffs for customers, issued notice that new subscribers from 16-July have to pay an increased tariff, indicating improved tariff environment.

Regulatory

Environmental Sectors

ETOP FOR BICYCLE COMPANY

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Market

Showing signs of saturation with a dip in new net subscriber adds in 1QFY12 (only 13m-15m per month) compared to preceding quarters (19m-20m), penetration in urban markets is >50% (overall 72.08%), better competitive environment because of high churn levels. (8%-10% per month)Traffic growth & data revenue collection (launch of 3G services) will be key revenue drivers going forward. Its positive for existing GSM incumbents. Tata Teleservices : 9% revenue share and 5% in most circles.

International

The existing wireless infrastructure in India was TTSL joint venture with NTT DoCoMo in November 2009. TTSL partners with canadian firm iseemedia launch industry first email service on sms – Push 4 All Mail on 3rd February 2010. Tata Docomo have tied-up with Navteq, a subsidiary of Nokia to introduce location based services – Route finder and Smart pilot.

Environmental Sectors

ETOP FOR BICYCLE COMPANY

Nature of Impact

Impact of each sector

Supplier

The need for infrastructure and quality managed services has increased substantially, presenting opportunities not just for telecom equipment-makers but also for content providers. The existing wireless infrastructure in India was designed to support only 2G technologies (for more voicecentric services) but with 3G, the networks need a complete overhaul. Industry experts peg the total investment in 3G networks at about $3 billion. Had a pact with Huawei after surpassing months long hurdles to setup networks for 3G in 5 of its circles. Sourced Dongles and Data Cards from Huawei & ZTE at a lower cost and sells them in retail markets at Rs. 1,500 – Rs. 2,500.

Technology

First Indian private operator to launch 3G services in India. DOCOMO has concluded conducting 4G trials in physical geographies, not just inside laboratories! DOCOMO is a global leader in the VAS space, both in terms of services and handset designs, particularly integrating services at the platform stage. In 1999, DOCOMO launched i-mode™, the world's most popular platform for mobile Internet services.