growth of telecom in india

8/8/2019 Growth of Telecom in India

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1 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials

Company Confidential

Growth of Telecom in IndiaGrowth of Telecom in India

Ashish Chowdhary NokiaAshish Chowdhary Nokia

IndiaIndia


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Very Positive Macroeconomic Trends

58% % of eligible voters casting votes in India (64% in theUS)

20% Indias Share of All International money flowing IntoEmerging Markets

$164B Forex Reserves Today. ($9B in 1992)

350,000 Engineers produced annually in India

#1 Fastest Growing Economy for the next 50 yrs(Goldman Sachs)

2% Loans written off in India (China is 20%)

GDP Growth of BRIC & G6 Economies

0

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U S

( $ )

China

USIndia

Brazil

Russia

Italy

France

Germany

Japan

UK

Worlds third largesteconomy by 2032

Worlds growth engine - Fastest growingeconomy by 2012

Source: Goldman Sachs

148% Growth of Indian stock market in last 5 yrs (US mktgrowth 6%)

4.0% Inflation in 2005. Down from previous year (5% in2004)9.3% GDP Growth in Q1 2006. GDP for FY2005 revisedupwards to 8.4%

25 Yrs Median age for Indians


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BSNL

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BPL

Others

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To tal GSM Tot al CDM A Tot al India

Very Strong Subscriber GrowthDramatic Upswing in last 12 months

Source: COAI

Monthly Net Additions, crossing 5m

24.3m Subs

23.6m Subs

19.0m Subs

19.7m SubsMega Operators in the makingKey Trends

Metros Hutch leadsWith 5,634,197 subs

Circle A Bharti leads

With 8,464,371 subs

Circle B BSNL leadsWith 7,381,378 subs

Circle C BSNL leadsWith 2,792,913 subs

0

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July 2006 subs: 110.6m (GSM 82.4m, CDMA 28.2m)

Huge subscriber additions


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India Telecom Growth Drivers1997- 2004 : tariffs + regulations + major events

National TelecomPolicy 1994

NTP 99announced

UnifiedLicensing

Source: COAI

-5,000

10,00015,00020,00025,00030,00035,00040,00045,00050,000

1997 1998 1999 2000 2001 2002 2003 2004

Net adds Total Subs GSM Subs

Subs 000

Introduction of CPP,CDMA service launch,

Monsoon Hangama

Launch of GSM

services by BSNLand 4 th GSMoperator

BSNL roll outof new linesTariff cuts in

P9

0.37

0.270.18

0.08

0.060.04

0.030.02

Tariff: US$/min.

NTP 99 - Move torevenue share from

fixed license fee


5/10



Nokia India Nokia Everywhere !Number 1 Vendor - Overall, Handsets and now Networks

Highest Ranked MNC


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Mobile Phones Multimedia

EnterpriseSolutions Networks

CorporateFunctions

Research,Venturing

& BI

Customer& Market

OperationsTechnology

PlatformsManufac-turing

Nokia India many diverse activities


7/10



Nokia India - A History of Innovation in India

1995: Indias first mobile call made from a Nokia handset on a Nokia supplied Network

1998: Saare Jahaan Se Acchha, first Indian ringtone in a Nokia 5110

2000: First Hindi UI (menu) in a Nokia 3210

2002: First Hindi text input in a Nokia 3610

2003: First Made for India phone, Nokia 1100

2004: Saral Mobile Sandesh, Hindi SMS on a wide range of Nokia phones

2005: First handset with a talking alarm clock in 5 regional languages, Nokia 1110 & 1600

2005: First telecom company to manufacture both handsets and Networks equipment in India

2006: Nokia Moves managed services hub to India GNSC centre in Chennai becomes operational

2006: Nokia becomes the #1 supplier of handsets AND Networks in India, according to Voice & Datamagazine, July 2006.


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Nokia India Telecom SEZNokia Telecom SEZ

210 acres in Sri Perumbudur 9 key suppliers will be housed within the SEZ by end of 2007 The Nokia Telecom Park strengthens Nokias delivery capabilities and customer

satisfaction Business park infra and services need to meet global standards Requires 24/7 custom clearance Nokia has been the engine of the investment train in Chennais

manufacturing corridor


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Imperitives for Continued Growth

Promote international standards by harmonizing spectrum allocation with ITU

Incentive for shared infrastructure, specially to promote rural growth

Reduce customs duty on imported telecommunication and related equipment for implementingaffordable services. Review The proposed countervailing duty 16.32% on cellular mobilephones w.e.f. 1 Jan, 2007 and similar taxations on mobile phone spare parts/accessories toprevent increase in price of mobile phones,

Have a consistent policy for duty on all components imported into India for use in producingmobile phones within Special Economic Zone (SEZ) or in a DTA and spare parts imported intoIndia for servicing of phones

Flexibility in labor law

Enhance physical infrastructure


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Thank You

growth of telecom in india

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