Caspian Opportunities & Challenges Eugene Pradas VP, Global Voice Sales Europe April 2010

2 In a tough global economic climate, carriers face challenges, but also many opportunities for growth

3 3 Telcos also face a range of potentially disruptive competitors  AOL  Yahoo!  Altnets / cablecos  Retail brands  Google  Microsoft (MSN)  Skype  Social networks  Wireless operators  IT services / SIs  Device vendors Minimal impactModerate impactSignificant impact Significant disruption Moderate disruption Minimal disruption Impact on wireline telcos Potential for disruption Source: Ovum

4 International Voice Industry Trends is estimated to carry 8% of the world’s international voice traffic Mobility to remain the high- growth segment. Ovum predicts 280 B mins of Int. VoIP by 2012 Carriers need to respond to a changing industry with innovative services, strategies and business models

5 International Voice Industry Challenges Traffic management complexity Margin decreasing while risk is increasing Profitability through IP and NGN Meeting new customer requirements

6 India Telcos Face Unique Challenges of growth Pricing pressures remain strong, as MNOs seek to expand the potential user base for their services Mobile subscriber growth rates remain strong, but customers demand new, differentiated services such as mComerce and video Customer acquisitions Growing ARPU Innovative solutions …. to remain focus on key business areas

7 So… … the solutions are Economic situation still challenging Entry of disruptive players Slow down in addressable market grow New technologies More complexity

8 Evolving Cooperatively to an IP World –37 member carriers from around the globe –Members collectively carry more than 80% of the world’s international voice traffic –Focused on pragmatic guidelines for a smooth, efficient and speedy transition to IP –Multiple working groups –IPX Technical & Commercial specifications to facilitate the global interworking of IP services

9 Enabling Next-Generation Services with Network Investment Unified global IP switching network –Tata Communications has NGN infrastructure rolled out in 12 cities to date VoIP interworking expertise –More than 90% of Tata Communications’ traffic touches IP –Both VoIP and TDM interconnects deployed over the NGN

10 Addressing Critical Growth Segments with New Services Voice Peering Expanding the community of on-net users for VoIP and IPT providers Access Services for Conferencing Providers IPX Interconnection Enabling the full potential of mobile data offerings with flexible and converged interconnection models Mobile Video Telephony Enabling seamless transport of mobile video telephony calls, ensuring a high-quality image Telepresence HD Voice and Video on equipment Managed Security Services Monitoring & management of traffic on various security aspects Televoting Access into the lucrative interactivity-based Televoting market

11 Ensuring Efficient Termination To Number Portability Destinations More than 50 countries have implemented number portability for fixed or mobile networks - or both Rates of ported numbers range as high as 58% in Finland and over 100% in Hong Kong There is no global standard for the implementation of number portability All Call Query

12 Global Voice Solutions 12 Wholesale providers have to: grow big and smart “While voice traffic continues to grow, and a greater proportion of it is being carried by wholesalers, declining prices and the migration to VoIP are negatively impacting revenues…Carriers of wholesale voice must therefore choose between becoming bigger and more efficient, or leaving the market to those that can.” - Ovum, 2009 “Smart wholesale focuses on services that extract better quality, performance, intelligence and analytics from network and IT assets. But that’s not all. Smart wholesale enables service differentiation and innovation. That’s powerful because it’s about growing top-line revenues.” - Yankee Group, 2009

13 International Voice Strategic Sourcing Benefits Reduced exposure to risk in low-margin business sector Access to economies of scale Ability to focus on core areas of expertise, including building customer relationships, driving revenue from on- net terminations and enhancing value- added services Access to new suite of services, especially with transition to IP Access to market leading technology and traffic management systems Share of Network infrastructures

14 “This is what I call ‘smart wholesale’ for both BT and Tata Communications.” -Camille Mendler, Yankee Group Management of International Direct Dial termination traffic for BT outside of home footprint Tata Communications Delivers Tata Communications Gains  Improved sales channel within the UK market  Insight and expertise in key market  Additional scope to develop core capability  Access to greater efficiencies of scale  Advanced routing and management capabilities  Improved focus on core business growth BT Gains BT Delivers Main distribution channel for Tata Communications in the UK market Strategic Agreement with BT for International Voice Services Focus on your core business

15 In a collaborative future, ensure you have a partner with the right vision and tools