1. Working Group on Telecom Sector 12 th Five Year Plan July 18, 2011

2. Contents  Indian telecom scenario  Growth potential  Investment estimates 2

3. Indian Telecom Scenario Fastest growing Sector with average monthly addition of 16-18 million subscribers Current subscriber base of over 875 million and active subscribers of about 588 million Second largest mobile network with over 840 million wireless subscribers Addition of over 225 million connections last year Roll out of services in more than 8000 towns and cities and over 500,000 villages 12-14 mobile operators in most of the circles 3

4. Growth Source: DoT, TRAI 4

5. Wireless led Growth March 2007 Total telephones 205.87 million March 2011 Total telephones 846.32 million Source: DoT, TRAI 5

6. Teledensity Growth 6

7. Share of private network (%) Source: DoT, TRAI 7

8. Broadband growth Source: DoT, TRAI 8

9. Growth Potential Network Expansion 1.1 billion subscribers by 2015 Broadband TRAI -National Broadband Plan 160 Million by 2014 – Investment of Rs. 60,000 crore 2,50,000 villages Panchayats within 3 years Broadband coverage for all secondary and higher secondary schools, Village Panchayats and all public health care centers. Leveraging USO funds for faster expansion of broadband Universal Access through support for shared infrastructure for rural cellular mobile Optical fibre connectivity for broadband upto Village Panchayats 9

10. Investment estimates 10

11. Investment in Telecom Sector 11 th Five Year Plan YearInvestment (Source: TRAI) 11 Five Year Plan (Planning Commission) 11 Plan Centre 11 Plan Private 2007-083790031900789424007 2008-0959200522951104841248 2009-1077700642061318651019 2010-11103900*843391398870351 2011-12120000*1039001538797007 Total39870034513461503283631 (Rs crore) *Projected 11

12. Areas of Investment in 12 th Plan Investment required in – Network expansion- Triple Play Especially in rural and remote areas – Network upgrades Rapid Advancements in Technology/ customer demand cycles 3G expected to account for 20% of subscriber base by 2015 NGN & IPV6 – Broadband expansion (BWA) – National Optical Fibre Network (NOFN) – Convergence of Technology – Value Added Services – Manufacturing and R&D 12

13. Investment Assumptions Existing Telephone subscribers more than 875 million Active subscribers about 588 million Broadband subscribers more than 12 million Expected by March 2017 (end of 12 th V Year Plan) Telephone subscribers- 1200 million – 3G/4G subscribers about 25% i.e. 300 million Broadband subscribers- 175 million e-Governance initiative to boost demand Telecom tower, VAS Low ARPU/Tariff 13

14. Estimated Sectoral Investment in 12 th FYP Core telecom equipment - Rs. 1,35,000 crore + 1,50,000 Crore – Investment in 2G network 2G -Capacity addition - 500 million 500 million @Rs. 2700/- per line (average) =Rs. 1,35,000 crore – Investment in 3G/4G, Wimax, LTE etc capacity- 500 million 500 million @Rs. 3000/- per line= Rs. 1,50,000 crore Total Investment in Core telecom equipments = Rs. 2,85,000 crore 14

15. Estimated Sectoral Investment in 12 th FYP Transmission Network (SDH, Microwave Radio, Routers) Rs. 40,000 crore (Approx. 14%) Access Network (Investment in tower, battery, power plant, Green Telecom) Rs. 1,00,000 crore Total Investment in Access and Transmission Network = Rs. 1,40,000 crore 15

16. Estimated Sectoral Investment in 12 th FYP Broadband Roll-out-Rs. 75,000 crore Customer premises equipment (USB Dongles, modem etc) Rs 50,000 crore Spectrum charges (on renewal/ through auction) Rs 1,00,000 crore Total Investment =2,25,000 crore Total Investment in Telecom Infrastructure Rs. 2,85,000+1,40,000+2,25,000= Rs. 6,50,000 16