1. Presentation on investing opportunities in Telecommunication sector in India  Presented by- Pargat Singh

2. Telecom Industry India  world’s fastest growing industry with 792 million mobile phone subscribers  second largest telecommunication network in the world  $80 billion in revenues by 2012

3. Telecom Industry India (opportunities for Investors)  will employ 1 crore employees  India is set to see another spurt of growth as 3G in India3G in India  India, the world’s second largest market for mobile phones  forecasted to become an even larger market with unit shipments of 209 million each year by 2016 at a compound annual growth rate of 12% from 2010 to 2016

4. Telecom Industry India (opportunities for Investors)  mobile entertainment industry in India is also witnessing significant growth and a latest research forecasts this market to reach $5 billion in 2015 from $1.2 billion in 2009  India has many things going in its favour provided we do things right the first time every time-  Economic growth rate touching double digits is a strong positive factor

5. Opportunities for Investors  Demographics of target market-60% of its population is young < 35 years old. which means more users of the latest technology.  We are a young and the largest democracy with the largest English speaking population after USA

6. Telecom companies in India  Bharat Sanchar Nigam Ltd. – One of the largest & leading public sector units  is World’s 7th largest Telecommunications  only service provider, making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide  BSNL cellular service, CellOne, has 55,140,282 2G cellular customers and 88,493 3Gcustomers

7. Telecom companies in India  more than 2.5 million Internet Customers  Mahanagar Telephone Nigam Ltd MTNL) – It is a state-owned telecommunications service provider in the metro cities of Mumbai and New Delhi  provides fixed line telephones, cellular connection of both GSM & CDMA and internet services through dialup and DSL

8. Telecom companies in India  other services include VPN,Internet Telephony- VOIP and leased lines through BSNL and VSNL  Has unveiled a very cost-effective Broadband Internet access plans (TriBand) targeted at homes and small businesses  Reliance Communications Ltd. It is the 16th largest operator in the world with more than 128 million subscribers

9. Telecom companies in India  only telecom operator offering nationwide CDMA, GSM and 3G mobile services  RCom became the second private sector telecom company (fourth overall) to launch 3G services in India  TATA Teleservices Ltd. – is the pioneer of the CDMA 1x technology  presence through existing operations in all of India’s 22 telecom Circles

10. Telecom companies in India  market leader in the fixed wireless telephony market  the first Indian private telecom operator to launch 3G services in India  Idea Cellular Ltd. – is an Aditya Birla Group company.  among the top four mobile telephony players in India with an 11 per cent all-India subscribers market share

11. Telecom companies in India  Bharti Airtel Ltd. -It is the largest India mobile operator by subscriber base  Airtel, is an Indian telecommunications company that operates in 19 countries across South Asia and Africa  fifth largest mobile operator in the world  Vodafone Ltd. – The world’s largest mobile telecommunications company

12. Telecom companies in India  Vodafone entered India by acquiring the Hutchinson stake Vodafone  Aircel Group -is India’s Seventh largest GSM mobile service provider  present in all 23 telecom circles  Spice Communications Ltd. - Now a subsidiary of Idea Cellular Ltd. Operates in Karnataka & Punjab

13. Detterents for Investors  Corruption- 2G Telecom Scandal – biggest scam in India.Cheating Charge against Essar,Reliance Communications, minister Raja sent to jail Corruption- 2G Telecom Scandal – biggest scam in India.Cheating Charge against Essar,Reliance Communications, minister Raja  Most of the telecom companies have been found to be implicated in colluding with sleazy politicians/bureaucrats in looting the Indian taxpayers  Bureaucracy- 2 nd biggest problem. Too many hierarchical levels. Too much paper work and corruption is quite prevalent at all levels.

14. Detterents for Investors  More than 70% population lives in rural areas. Profitability in rural operations is a big question mark. Consistent supply of electricity is a big problem.  economies, operational and security risks and availability of skilled manpower are some other issues and challenges faced when going rural.

15. Detterents for Investors contd……  Power Distance- there is a large power distance between common mass and authority which act as another deterrent.  legislative system- judiciary in India is very complex. Vast stack of cases already pending so getting a decision can take up to decades.