Dalian and India Potential for Investment and ICT Keynote Presentation By NK Goyal, President CMAI Chairman Emeritus, TEMA Vice Chairman ITU APT Chairman, ITPS Dubai Member, Governing Board Telecom Equipment and Services Export Promotion Council (Govt. of India) CISIS China International Software & Information Service Fair 2012 Dalian China, June 15 th

China recognizes the need for fast development of IT Industry and we are in second year of the China 12th 5 Year Plan New 18 th Policy of China, envisages to boost the growth of Software and IC Industry CISIS Fair 2012 is recognized as Top IT Event in China India and China Offers good scope for ICT development and cooperation China-the growth Engine ICT

India China Trade China is India’s largest trade Partner 2011 the bilateral trade between India and China reached 73.9 Bn $ By 2011 end, Chinese companies invested 555 $ in India and Indian Companies invested 447 $ in China Target 100 Bn $ of Bilateral Trade by 2015

Dalian Government is giving high priority for ICT. Rise of Asia presents tremendous opportunities for growth in this Century India, China are two big markets Huge Scope in several verticals…Health, Automobile, Aviations, Education, Banking, Commerce Dalian Government and Indian Government coming with new policies to attract investment Advantage Asia

GDP crossed USD 1 Trillion Mark 4 th largest economy in world when adjusted for purchasing power parity Growing well in excess of 8% per annum for last three years. USD 380 Billion Projected infrastructure investment in next 5 years Over the next two years, India could attract FDI worth $ 80 billion Large Domestic Market: million consumers in age group expected by th largest consumer market by Increased disposable incomes & changing lifestyles Human capital: - Third largest pool of scientific & technical manpower (2,00,000 Engineering Gradates Annually) - Over 500 universities (20,000 colleges) - Large English speaking population Advantage India

6 National Optical Fiber Network Provide broadband connectivity to panchayats so that banking and health services can be accessed online US$ 4 Bil US$ 1.2 Bil US$ 4 Bil National Knowledge Network Infrastructure project to connect educational and research institutes National e-Governance Plan Countrywide infrastructure reaching down to remotest of villages; bringing public services closer to home US$ 1.2 Bil Set Top Box Digital Addressable System (DAS) mandatory throughout country by December 2014 US$ 0.2 Bil LED products Distribution of free LED lights to all BPL families ; Excise duty reduction on LED lamps and LEDs India Govt. Procurement Projects

7 Triad of Policies : IT, Telecom and Electronics NPE Vision “ To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market” NPE Goals for Turnover of US$ 400 Bil; Chip design/ embedded software industry to US$ 55 Bil 2.Investment opportunity US$ 100 Bil 3.Includes over 50 initiatives to create an overall ecosystem to make electronics manufacturing globally competitive. India | National Policy on Electronics

8 Cost of semiconductor design (US$ Mil, 2010) As R&D costs in development of each new chip increase, India becomes the destination of choice for chip design and VLSI. Projected semiconductor design market in 2020 US$ Bil India | Semiconductors

Demand in 2010 ~ US$ 11 Bil Projected demand 2020 ~ US$ 34 Bil Broadband on Demand by 2015, 600 Mil connection by 2020 at min. 2 Mbps speed National Optical Fibre Network (NOFN) : US$ 4 Bil project to provide broadband connectivity to 2,50,000 villages National Knowledge Network (NKN): US$ 1.2 Bil Infra project to connect educational and research institutes Total telephone subscribers ~ 950 Mil, tele density 77% India |Telecom Equipment

Cabinet has approved providing Digital Addressable System (DAS) throughout country by December 2014 Tamil Nadu state government owned Arasu Cable TV Corporation floated tender for 2 Mil STB 10 Projected Market for Set Top Box in next 5 years 200 Million units India |Set Top Box

11 Value of electronics in automobiles ~ 20%-40%, increasing rapidly Centre of Excellence for development of automotive electronics in India Production of nearly 18 Mil Automotive vehicles in Established automobile components hub Market ~ US$ Bil India |Automotive Electronics

12 Example : Digital Hearing Aid Needed by 3-10% population in India Current price: US$ 300 Target price : US$ Application Specific Integrated Circuit (ASIC) has been developed by CDAC Thiruvananthapuram Field trials currently going on Size of medical electronics equipment market by 2020 ~ US$ 5 Bil GoI committed to development of affordable medical electronic device industry India |Medical Electronics

India PC shipments increase in 2012 ~ 17%; world average ~ 4.4% Government aims to provide 1 tablet to every student under Aakash scheme State Government initiatives Free laptop to students in Tamil Nadu and Uttar Pradesh Other states coming up with similar schemes 13 Projected Market for laptop, desktop by 2020 US$ 34 Bil India |Computers

Demand in 2010 < US$ 1 Bil Projected demand 2020 ~ US$ 35 Bil Lower carbon emissions by 20-25% by 2020 Distribution of free LED lights to all Below Poverty Line (BPL) families (20 Mil lights) Government initiatives : Excise duty reduced to 6% on LED lamps and LEDs SAD fully exempted on LEDs used for manufacture of LED Lamps India |LED Market

Electronic Development Fund Electronics Sector Skill council Study to identify major job roles Preferential Market Access Semiconductor Wafer Fab Modified SIPS Electronic Manufacturing Clusters Creating Ecosystem Building Demand R & D initiatives HR aspects India |Govt. Initiatives

About CMAI CMAI prime Integrated Association of India representing all verticals of ICE, telecom sector of India in India having more than 34 MOUs with International organizations, with branch offices in Japan, Korea, Singapore, Taiwan, China and Malaysia. It offers one window service for information dissemination, guidance on setting up businesses in India. It connects you to Industries, Government, Trade and business It is involved in policy formulations with Government and other stake holders for Technology Innovations, Indigenous manufacturing It is developing scientific knowledge and practical means for protecting human ecology and environment from the harmful effects of environmental hazards like e waste, radiation etc. It assists manufacturers to maximize competitiveness in the domestic and international markets. It also offers consultancy services on turn key basis through its member companies

CMAI Activities in China Regular Delegation to Shenzhen, Beijing, Kunshan, Dalian, Shanghai, Quingdao etc. In contact with Several Mayors and Vice Mayors and leaders Has promoted Bi-lateral trade between India and China for more than ten years Organizing Int’l Mobile and electronic exhibition in China & India for last seven years. Has three offices in Shenzhen and CMAI Offices in Shanghai, Kunmin, Chengdu Regular key note speaker in CISIS, Dalian, China Trade in Services, Bejing, Kunshan Computer and Electronics Fair, China Mobile Sourcing & Investment Fair, China International Mobile Science Tech Exhibition, Hongkong Guangdong Business Conference, India China Economic Conference, Electronics & Information Fair, Hangzhou, 2009, etc

CMAI MOU’S in China CCIIP - China Council for International Investment Promotion CCPIT- China Council for the Promotion of Intll. Trade SIDA - Shenzhen Industrial Design Association, Shenzhen CECC - The China Electronic Chamber of Commerce DAIT - Dalian Association for Investment & Trade with India, SMCA - Shenzhen Mobile Communications Association SEIA - Shenzhen Electronics Industry Association ICEC - Indo China Economic & Cultural Council Zhongrui – Zhongrui Exhibition Company. CME - Shanghai Kuozhan Exhibitioin Service Co. IMA- Internet Mobile Association

CMAI ICOMM TH CMAI India International Communications Fair 2012 Mobiles Tablets Consumer Electronics September 2012 NSIC Expo Grounds | New Delhi | India The Biggest Buyer Sourcing Platform-One to One Business Meetings Your Best Partner for Market Expansion, Lead Generation in India’s Mobile Handset and Electronics Industry

Indian UID Project India Govt. has started first of its kind project in the world Unique Identification Authority of India (UIDAI) Over 10 $ Bn. projected investment in National ID and E Governance. Under this unique identity number will be issued to 600 Mn. of Indian population by Single identity paradigm would facilitate giving identity to citizens, enable tracking of end to end service delivery, subscription to new services, help tracking people related with security concerns. This project offers tremendous opportunities for technology and products.

Indian VAS Market SMS continues as world over highest revenue generator Ring tones and SMS account for large portion of VAS market. About 8,00,000 ring tones downloaded daily In India Revenue from VAS presently is 10-14% of total revenue, expected to grow 30% within next 5-7 years. VAS core component of operators revenue High end users....video on demand, user generated content ie. interface between web and mobile Long tail users, who focus on contents subsidized by ads. Good scope for utility based services eg. Location information, M commerce etc. Gaming coming up in big way. 30% of games download in Category B/C towns. Mobile advertisement picking up. Global revenue from mobile advertisement expected to grow $ Mill by 2011 The Indian mobile VAS) expected to reach US$ 5.8 Bn. by 2013, from US$ 2.0 Bn. in Currently,

IPv4 Migration to IPv6 India will also face problem of IPv4 addresses and the problem is worsening due to continuous addition of miles users, connected devices and start of 3G and Broadband Wireless Access services. IPv4 allows 4.3 billion IP addresses whereas IPv6 will enable another 340 trillion, trillion, trillion addresses -- enough to accommodate global Internet demand for the foreseeable future. India has taken a policy decision that all ISPs and telecom providers will have to be IPv6-compliant by the end of And by March 2012, all Central and State Government Ministries and public sector companies will make the switch to IPv6 Internet protocol based services.

Opportunities in Cloud Computing The cloud computing market in India is expected to grow at a CAGR of 40 per cent by 2015 to Rs 11,200 Crores ( $3 Bn.) from an estimated $66.7 million in 2009, $ 500 Mn. In 2011 driven by cost and performance efficiencies During the same period, the global revenues from cloud services will grow from $29 Bn. to over $70 Bn. Some well know cloud services today are Google's search, Apple's iTunes, Amazon Web Services, Microsoft's Azure.. As compute loads grow 10 times, 100 times and even 1,000 times, there is need for new architectures for IT systems.

Other Web Based Technologies In IT, the technology and the usage evolves faster even more than 10 times than any other industry. This means new business opportunities and old technology becoming obsolete. The internet has grown from 10 million users to one billion users and up to three billion if we count Internet-enabled mobile phones too. The total connected devices today are about 5 Bn. likely to grow within few years to 1 Trillion. The active websites have grown from 1 Mn. to more than 100 Mn.

SOCIAL NETWORKING India currently has 50 Mn. mobile web users. The growing popularity of mobile social networking can also be attributed to youth. Youth being mobile savvy as well as enthusiastic users of social networking sites are setting the trend, attributing to the rise of social networking through mobiles. Approximately 10 Mn. urban Indians used their mobile phones for engaging in social networking during quarter ending August, 2009, a reach of 3.3% among urban Indian mobile phone user. It also overtook China to take the 3 rd place in the global mobile internet industry. 7 out of top 20 sites Indian internet users are visiting are in the arena of social media. 4 out of top 20 most visited sites in India are social networking sites. More than 70% people who are online are engaging with social media on some or the other platform.

Mobile Commerce and Social Commerce About 7 per cent of the overall internet users in India are active on line shoppers. This is likely to grow to 25% in next three years with more mobile users and growing mobile commerce applications on use. Social commerce is also expected to grow substantially as it could prove to be a key revenue model for social sites. This can be achieved either by creating a universal social currency or through social apps that will either help people transact or provide consumer feedback about a specific product or brand.

Fusion Cable Technologies Demand for access to media and communications on any device has increased, cable operators have embraced innovative solutions that move beyond first-generation, triple-play services and seamlessly fuse communications and entertainment to meet demands for an integrated digital lifestyle and new social media interactions. Multiparty, multimodal, multimedia services – or 'fused' services – blend high definition voice, video and data to create personalized entertainment services. New emerging services and technologies required to provide fusion between communications services that allow users to communicate and share content in different ways, regardless of end-user device or access network type.

Global Mobile Handset Market Over 2 Bn. people worldwide will own at least one smart phone in 2015, with unit sales growing over 175% from (Parks Associates ) Global mobile handset industry valued at appx $133bn in 2009 likely to grow at CAGR of 17.1% during 2009–14 to reach $293bn by India and China largely driving growth of smart phones in Asia Pacific, which constituted 47% of total of 112 Mn. shipments during Likely to grow more than 50% by 2014 with total shipment forecasted 712 Mn. Smart phones contributed 79 % of profits during 2009 even though market share was hardly 17%.

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