Build the most exciting brand of the next decade

Krishna Basudevan (Aircel)Ranjith Mukundan (Wipro)

VAS : Trigger to new revenue stream & service differentiation

23rd September, 2009

State of VAS market….key points to ponder

2

How is technology adoption shaping

operator strategies with regards to the VAS

market ?

Which value added services have been

successful in terms of revenue streams or as

retention tools?

How is the use of smart phones contributing to

greater VAS traffic?

To what extent is mobile broadband shaping

growth in the wireless data market?

What are the growth drivers for this market?

to be a market leader in VAS/content lead era

3

VAS-led Transformation:from a Network Operator to a Service Provider

Few Cash Cow Services

Long and Costly Service Design and Deploy

Cycles

Relied on Limited network capabilities

IN Based Service Layer,

Silo Applications

Large number of

Services Short and low budget

Design and Deploy Cycles

Exploit all network

capabilities Flip the business model

– exploit the content on the internet

Leverage innovativeness of 3rd

parties

4

Aircel VAS Innovation– Key attributes

3rd Party Ecosystem

SOA Based Architecture for Integrating Applications

Network Enablers

Application Innovation Center –Concept to Commercialization

OrganizationTransformation

Roadmap

Ongoing

Focus Areas

VAS Innovation – enabling 3rd party ecosystem

Quick PrototypingFor Proof of Concept

Idea for a new Service

Alpha Trials by In-house Users

Engineer the SolutionFor Robustness

Small Scale Deployment and Beta Trials

Monitor UsageEncourage High Runners

(Kill non-performers)

Common Data Center for Application Rollout

3rd Party Applications request for hosting

6

VAS-led Innovation- Solving the Innovators Dilemma

Ideas! Commercial Deployment

Not all ideas can be rolled out commercially

Each idea has the potential to become “Killer App”

Need the process and mechanism to test and exploit every Idea – Don’t Miss That Idea!!

I have an idea! Where do I start?

Assessing your idea

How will I profit from my idea?

Apply for funding for Proof of Concept

(R&D)

Build your first prototype

Apply for IPR

Continue to build your marketing and business

plan

Is my proof of concept successful?

Secure further financing for Product Development

Engineering and scale-up of prototype

Complete Market Study

Certification

Business Model and Marketing Strategy

Secure financing for Commercialization

Production and Inventory

Management Plan

Implementation of Commercialization and Marketing Plan

WINNER!!What is my next idea?

7

Learning from the Internet world:typical Innovation Cycle Facts and Figures

Number of Ideas

TimelineFew Weeks

Few Weeks

Few Months

Few Quarters

100

85

30

20 15

CAPEX FOR SERVICE ROLLOUT

15% 20% 30% 35%

VAS market in India

8

Market size – Rs 9760+ crores (2009), Rs 16520 crores (2010 projected)

Continuous decline in voice-led ARPU; need VAS-led data services to boost ARPU

Source: IMRB

MVAS currently contributes around 10% to the operator’s

revenue. It is expected to increase to 12% by June 2010

Aircel – Leading the way

AIRCEL is a joint venture of Maxis group, Malaysia and Apollo Hospitals Group, India. Maxis holds 74% share in AIRCEL.

Turnover of more than Rs.3000 Crores

Fastest Growing Telecom Company in India in 2007 & 2008

Market Leader in Four Circles - Chennai, Tamil Nadu, Assam & North East and number 2 in J&K operation

Launched Pan India operations in April 2009. Currently operational in 18 circles, covering all metros.

Crossed 24 Million subscribers as on date

Rated as best regional operator in Overall Mobile Satisfaction Survey 2007 - IDC

First to Roll out 100% EDGE Enabled Network in India (3G Technology)

9

VAS is a big strategy for gaining market share & new revenue stream for Aircel

10

VAS & Data services as a differentiation than any other new operator

Aircel betting big on its VAS offerings like Location based services & phone banking to attract subscribers in metros

VAS Strategy Realization viaAircel-Wipro SDP

Program Governance

11

Way Forward –Emerging Service Paradigms

12

Customer status based servicesUse the customer status such as presence, profile, location, and personal preferences as a enabler for services and applications

Verticalized services using M2MAbility to extend wide area wireless services to devices, gadgets, and embedded devices that can enable wireless communication to non-human subscribers like vehicles, pets, farm animals, surveillance and medical devices.

Private customer networks as a serviceThe ability to provide a networking capability between multiple customer assets at home and office, and offer programmability of the operator network to the home user

Infrastructure as a serviceAbility to apply the concept of data center, storage virtualization for enterprises and end users.

Context based contentAbility to leverage context like where the customer is, what the customer is doing, what the habits of the customers are, in providing, gaming, music, information, maps, points of interest etc

Touching the Life of PeopleInnovation

9/25/2009 Building the brand 13

Touching the Life of PeopleInnovation……

9/25/2009 Building the brand 14

Thank you

Krishna Basudevan (Aircel)Ranjith Mukundan (Wipro)