1. Telecom Overview By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 6667-1191/ 2784-6137(O) 2784-3121® F: +91 (40) 6667-1111, 2789-6103 hanuman.chowdary@tcs.com thc@satyam.com Talk @ Beijing University, Beijing, China Presentation # I INDIA OVER VIEW (b) Telecoms INDIA NAMASKAR 你好

2. THC_CTMSS360_OCT'072 Telecom Overview 41 licenced private companies besides the state-owned MTNL and BSNL in 23 licenced areas Total number of P-Telcos providing services are 12 Licences for all inland telephone services are state-wide National long-distance (NLD) & international subscriber dialing (ISD) are whole country Some P-Telcos operate only cellular mobile telephone services Some only in a few states State-owned MTNL operators only in 2 cities ( Delhi& Mumbai) Some ISPs have taken NSD & ISD licences to cover their VPN services INDIA

3. THC_CTMSS360_OCT'073 Telecom Overview Department of Telecoms (DOT) (Ministry of Communications & IT) is the Policy maker & licensor Telecom Commission consists of some officers of the DOT (full time) and 3 from other Ministries ( Finance, Planning & Personnel) Telecom Engineering Center (TEC) is the specifications & standards unit in the DOT. C-DOT is the R&D arm jointly funded & administered by the DOT & D.I.T INDIA

4. THC_CTMSS360_OCT'074 Telecom Overview Indian Telephone Industries (ITI) is the state- owned manufacturing company under the administrative control of the DOT. The state-owned BSNL/MTNL are having 95% of the local loop for the 39.5 mln fixed lines BSNL/MTNL have a telephone market share of 28% of the 250 mln phone; their share is declining. There are 3 long distance band-width only ( on O.F cables) providers – National Power Grid Corporation, Rail Tel & ONGC INDIA

5. THC_CTMSS360_OCT'075 Telecom Overview ISRO’s INSAT (Indian Satellite) enterprise sells bandwidth for telecoms ( and TV broadcasters) 3 Telcos (VSNL; Bharati & Reliance – all private) own undersea cables providing global connectivity There are 130 active Internet Service Provider (ISPs) offering dial-up to broad-band; their number can be unlimited; they provide VPN, NLD & ISD; VOIP etc. services. (more than 400 were licensed but they are ineffective) CDMA using companies have, as of Sept 2004, 54 mil users GSM using companies have 152 mln subscribers Fixed (wired & wireless) subscribers are 39 mln. INDIA

6. THC_CTMSS360_OCT'076 Telecom Overview Optical Fiber transmission systems of 650,000 route kms connect about 6000 towns. Coaxial ( 35,000 Rkm) and terrestrial microwave ( 65,000 RKM) are frozen No more construction since 1997 ISPs are deploying WiFi in cities Some state governments like Andhra Pradesh and Gujarat have dedicated State Wide Area Networks ( SWANs) for their e-governances schemes. INDIA

7. THC_CTMSS360_OCT'077 Teledensity Metros (4 cities) Other Urban ( about 6000 towns) Rural 85%55%2.3% INDIA

8. THC_CTMSS360_OCT'078 Telecom Overview Internet Service Providers (ISPs) - Licences issued >400 Internet Kiosks: 100,000 Internet Subscribers: Dial-up: 9.3 million Broad-band: 2.5m(for 256 kbps-2.0 mln & 2MBP -0.5 mln) Users: 50 mln [over 35 mln access Internet thro cell-phones] Telcos Revenues: $ 31.0 bln/yr Telcos Investments $ 10 bln/yr BSNL/MTNL share 28% (declining) of telephones INDIA

9. THC_CTMSS360_OCT'079 Mobile Subscribers Prepaid: 85% Churn: 15% ARPU/month INDIA Year20002001200220032004200520062007 $29.3124.7319.6414.0811.689.508.337.44

10. THC_CTMSS360_OCT'0710 Sale of Cell Phones Year2001‘05‘06’07 mlns2317490 INDIA PCs sold/year: 7 mln PCs in use : 25 mln There are 60,000 retailers of cell phones A cell phone is changed on eh average in 9 months! Nokia, Ericsson, Motorola, LG are the leading vendors

11. THC_CTMSS360_OCT'0711 Villages (habited): 600,000 % Electrified: 87% (public) telephoned: 92% (545/600,000) Public Telephones: Along National Highways : 30,000 Local only: 1.12 mln NLD & ISD: 887,000 Telegraphs – dying : 12 mln/yr Bureau FAX: BSNL : 0.7 mln (declining) INDIA

12. THC_CTMSS360_OCT'0712 THANK YOU: DHANYAWAD INDIA