Wimax Ppt1

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

15th Oct 2008Retail

Wimax Leading theBroadband Charge in India

Mehul Kapadia

General Manager Marketing & Sales

TCISL

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A market like no other

A youngcountry

gearing toconquer

RapidUrbanization

of theeconomy

ExplosiveMobile Growth

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The New World is upon us and India is pretty much right there

Globalization Web 2.0

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1.7%1.3%1.8%

5.5%5.9%

0.9%

2.5%

7.5%

8.9%

0%

2%

4%

6%

8%

10%

C

hina

US

India

Japan

B

razil

Ru

ssia

UK

Germ

any

France

(1) Source : Industry Research; currency translated using 2003 US $ rate

(2) Source: Street research & RBI website(3) Source: McKinsey Report: The Bird of Gold dated May 2007

3,1483,6033,7825,8706,0746,673

35,165

44,453

27,803

0

10,000

20,000

30,000

40,000

50,000

C

hina

US

India

Japan

B

razil

Ru

ssia

UK

Germ

any

France

GDP (US$bn) GDP CAGR (2005-2050E)

1,140

961

797

640

0

300

600

900

1,200

FY04 FY07 FY08E FY10E

Per Capita Income (US$)

CAGR : 10%

Rural

All India

Urban

0

250

500

FY95 FY90 FY95 FY00 FY05 FY10E FY15E FY20E FY25E

Avg HH disposable incomeRupees (000)

CAGR CAGR

4.6%

3.6%

2.8%

5.8%

5.3%

3.6%

Third Largest Economy by 2050(1) With Highest Projected Growth Rate(1)

Increasing Per Capita Income(2) Increasing Household Disposable Income(3)

India: Strong Economic Fundamentals

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3643

55

75

0

10

20

30

40

50

60

70

80

FY 1981 FY 1991 FY 2001 FY 2011E

(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; 2011 rate is Indias 10th Economic Plan objective

Increasing Literacy(3)

Growing Work Force (15-59 yrs)(2)Favorable Shift in Income Profile (1)

% literate population54

35

22

41

43

36

4

19

32

1 1821

0%

20%

40%

60%

80%

100%

FY 2005 FY 2015E FY 2025E

Deprived (Rs. 1,000,000 pa)

35% 32% 29% 27% 25% 23%

64% 64% 64%

9% 11% 12%

63%60%58%

8%8%7%

0%

25%

50%

75%

100%

FY 2001 FY 2006 FY 2011E FY 2016E FY 2021E FY 2026E

% of

population

0-14 y rs 15-59 y rs >60 y rs

% of population

India: Favorable Demographic Shift

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Total Population

Addressable Urbanpopulation

People with Phone (Wireline/Wireless) connections

Cable/ Internet/ BroadbandConnections

Population 1.2 billion

PhoneConnections

300 million

CableConnections

80 million

FixedConnections

40 millionInternetConnections

11 million BroadbandConnections

4.5 million

InternetUser

70 million

Source : TRAI, IAMAI, Management estimates (Estimates for September 2007)

Provisioning of wireless technology would enable conversion of addressable market into subscribers

India Huge Internet Potential

Urban Population

300+ million

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IndiaHuge Internet Potential

CurrentImpediments

for growth

Not enough wireline infrastructure

Legacy network with long loop lengths Unorganized cable infrastructure with poor network

High Buried Access Costs

200 months of ARPU as Capex

Limited green-field deployment

Limited content offering restricted utility for access

Wireless to bethe technology

for choice

Far superior roll-out mechanism with the advantage of existinginfrastructure 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

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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 theintroduction of digital TV

Analog cable prevalent since mid nineties

Government mandates conditional access in

metros

Satellite (DTH) services achieve 5% share in ayear 3 new players entering the market

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Target Customer base

Residential

SMB

Residential Customers

Driven by:

Price

Fragmented Wide range of application/content

Work from home

Branch & Small Business

Driven by:

Looking for Web presence

Increased replacement of Internet for other lack of infrastructure

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Wimax well suited for host of services beyond just connectivity!!

On Demand Entertainment

Worlds

Information

Mail! Talk! Video Chat!

Personal & Mobile

Memories

Web ServicesCaf Culture

@ 24x 7Always On!

I want itALL

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True Personal Broadband possibilities and hence create viable business

opportunities for the entire Ecosystem

Personal Broadband

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Wireless / Mobile Broadband = Multiple touch points

Home Business / Office Vehicle

Caf / Diner Airports / StationsHotels Global RoamingMalls

College / School Commute

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Wimax Ppt1