10 Things You Didnt Know About The Indian Mobile Consumer Monetizing Mobile in Emerging Markets London, September 2010

India … Big On Heart & In Size 2

A Billion strong consumer base Among the world largest & fastest growing economies The worlds second largest mobile market Over 3X more mobile phones than televisions Mobile phones leading the next wave of consumer revolution India: Comfort In Numbers 3

Indian Mobile Industry Provides as many Opportunities as Challenges Set to overtake China as the largest mobile population by 2013 Currently Bn and 650Mn+ subscriptions Characterized by low ARPU ($3.5) and a high rate of consumer churn 4

The Indian Mobile Consumer 10 Things You Probably Didnt Know 5

The actual subscriber base is approximately 440 Mn Still larger than the entire population of USA Explains the popularity of the dual SIM device (15% share) Tele-density in urban India has crossed 100% 1. An Irresistible Number 6

2. Captivating The Grassroot Consumer Too Rural consumers form half the Indian mobile universe penetration, still has potential to grow Adoption of services driven by VAS services besides mere calling 7

3. Have Small Pockets But Big Dreams Essentially a low ARPU, prepaid market Sachet pricing key to success for innovative products Full song added 6,00,000 consumers 8

4. Are Young, Restless & Mobile 50% consumers are less than 30 years old. In fact the new age mantra of the youth is Kapda (clothing) – Music – Mobile By 2011, 1 in 5 young mobile consumers will be from India; even today every 2 nd teenager already has a mobile 9

My mobile is A mail box / a social connect device / a jukebox / a chat device o Facebook is the 3 rd most visited site and has seen a YoY growth of over 600% o A whopping over 50% claim the mobile to be their primary device for music consumption 5. Helps Them Stay Connected Anytime, Anywhere 10

Mobile internet users comprise 25% of all Internet users and have grown by 120% in the last year While trial is a challenge, adoption is almost a given Of all mobile Internet users, 63% use it daily With 3G coming in data consumption is set to increase 6. Is Their Window To The World 11

Indian households characterized by single TV sets but multiple mobile phones. 1/3 rd have more than one phone TV serves as a family device often controlled by the housewifes preferences Given the large young, male audience mobile sees greater consumption of (S)exciting imagery and video Cricket info / scores / updates Playing games (82%) 7. Is A Personal Screen 12

Smartphone adoption growing rapidly Smartphone devices grew 120% in volumes Sold an estimated 5 Mn devices RBT is a reflection of self RBT market in India is worth $ 500 Mn Touchscreens / Social connect / Hi Res Camera / Apps are spoiling the consumer for choice 8. Is Their Projection To The World 13

Services like voice chatting, follow celebs picking up rapidly Airtels Talk 2 Me with Bipasha witnessed traffic of over consumers in just one circle over one hour. Airtels Movie Talkies offering compressed 30 min audio clips (original time: 180 min) seen stupendous success Voice chat offering an Agony Aunt service sees heavy traction across operators 9. Works As A Filler Medium 14

Bollywood forms a core connect to India through its culture of song n dance, dramatic story telling and larger than life stars 50 Mn strong Diaspora across the world Hungama touches 3 Bn across 40 countries everyday 10. Provides A Connect To Their Roots 15

A huge market with equally huge opportunities and challenges Customization and innovation are key to lure the consumer Price point innovation is extremely important particularly for low ARPU consumers Localization of content - the mantra to reach out to the masses Segmentation is a must, while Bollywood offers the largest base, devotional and regional content also thrive Appeal to the youth imperative for success Advent of 3G to drive Internet traffic and higher data consumption Rise of smartphone sales An increasingly mobile consumer seeking entertainment and social connect on the go To Sum It All… 16

Thank You 17