Wimax – Leading the Broadband Charge in India

Mehul Kapadia General Manager – Marketing & Sales TCISL

Retail

15th Oct 2008

©2008 Tata Communications Internet Services Limited, Ltd. All Rights Reserved.

A market like no other…… Explosive Mobile Growth Rapid Urbanization of the economy A young country gearing to conquer Retail 1 .

The New World is upon us and India is pretty much right there Globalization Web 2.0 Retail 2 .

000 10.8% 0.000 20.000 40.165 27.5% 3.9% 5.India: Strong Economic Fundamentals Third Largest Economy by 2050(1) GDP (US$bn) 50.673 6.5% 8.200 797 640 600 CAGR 5. currency translated using 2003 US $ rate (2) Source: Street research & RBI website (3) Source: McKinsey Report: The ‘Bird of Gold’ dated May 2007 3 France Brazil Brazil .453 35.5% With Highest Projected Growth Rate(1) GDP CAGR (2005-2050E) 10% 8% 7.6% 2.603 44.3% 1.148 2% 0% 1.9% 1.782 3.000 0 6.6% 3.870 3.3% Urban 900 All India 3.000 30.9% 5.140 961 Avg HH disposable income Rupees („000) 500 CAGR 4.8% 5.803 6% 4% 2.7% Germany US China India Japan Russia UK France Germany US China India Japan Russia UK Increasing Per Capita Income(2) Per Capita Income (US$) CAGR : 10% Increasing Household Disposable Income(3) 1.074 5.8% 1.6% 250 Rural 300 0 FY04 FY07 FY08E FY10E 0 FY95 FY90 FY95 FY00 FY05 FY10E FY15E FY20E FY25E Retail (1) Source : Industry Research.

000.000-500.000 pa) 30 20 10 0 FY 1981 FY 1991 FY 2001 FY 2011E Retail (1) Source: Mckinsey Report May 2007 (Income levels are at real 2001 prices) (2) Source: The National Commission On Population May 2006 (3) Source: India stats website.000-200.000 pa) Seekers (Rs.1.000 pa) Strivers (Rs.000 . 500.000 pa) FY 2015E FY 2025E Aspirers (Rs.000. 1.India: Favorable Demographic Shift Favorable Shift in Income Profile % of population (1) Growing Work Force (15-59 yrs)(2) % of population 100% 7% 75% 58% 60% 63% 64% 50% 64% 64% 100% 1 4 1 19 1 2 8 8% 8% 9% 11% 12% 80% 41 32 25% 0% 35% 32% 29% FY 2011E 27% FY 2016E 25% FY 2021E 23% FY 2026E 60% 43 FY 2001 FY 2006 0-14 yrs 15-59 yrs >60 yrs 40% 36 Increasing Literacy(3) % literate population 54 20% 35 22 80 70 60 50 40 36 43 55 75 0% FY 2005 Deprived (<Rs.000 pa) Globals (>Rs. 90. 2011 rate is India’s 10th Economic Plan objective 4 . 200. 90.

5 million Provisioning of wireless technology would enable conversion of addressable market into subscribers Retail Source : TRAI. Management estimates (Estimates for September 2007) 5 . IAMAI.India – Huge Internet Potential Population 1.2 billion Phone Connections 300 million Total Population Urban Population Addressable Urban population Cable Connections 80 million 300+ million People with Phone (Wireline/ Wireless) connections Cable/ Internet/ Broadband Connections Internet User 70 million Internet Connections 11 million Fixed Connections 40 million Broadband Connections 4.

India – Huge Internet Potential… • Not enough wireline infrastructure • Legacy network with long loop lengths • Unorganized cable infrastructure with poor network Current Impediments for growth • High Buried Access Costs • 200 months of ARPU as Capex • Limited green-field deployment • Limited content offering – restricted utility for access Wireless to be the technology for choice • Far superior roll-out mechanism with the advantage of existing infrastructure of wireless telecom players • Spectrum auction likely in near term – Transforming the Indian industry • Potentially large coverage and faster expansion Wireless is the best technology to drive internet growth in India Retail 6 .

Bypassing Legacy – the India Way Voice Services: Digital mobile is 8X of fixed lines  GSM introduced in 1995 and CDMA-1X in 2003  No analog. No standards issues Pay TV Services: Satellite leading the introduction of digital TV  Analog cable prevalent since mid nineties  Government mandates “conditional access” in metros  Satellite (DTH) services achieve 5% share in a year… 3 new players entering the market Retail 7 .

Target Customer base Residential  Residential Customers  Driven by: – Price – Fragmented – Wide range of application/content – Work from home  Branch & Small Business  Driven by: SMB – Looking for Web presence – Increased replacement of Internet for other lack of infrastructure Retail 8 .

Wimax well suited for host of services beyond just connectivity!! On Demand Entertainment Memories Mail! Talk! Video Chat! @ Café Culture Web Services 24 x7 I want it ALL Always On! Personal & Mobile World‟s Information Retail 9 .

True “Personal Broadband” possibilities and hence create viable business opportunities for the entire Ecosystem Personal Broadband Retail 10 .

Wireless / Mobile Broadband = Multiple touch points Home Business / Office College / School Vehicle Commute Café / Diner Hotels Airports / Stations Malls Global Roaming Retail 11 .

Ltd. . All Rights Reserved.Wimax – Truly the choice for India!! Retail 15th Oct 2008 ©2008 Tata Communications Internet Services Limited.

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