Vikram Kaushik Managing Director & CEO Tata Sky Ltd.

In India it has taken DTH 5 years to get to 6 million plus subscribers!

And Tata Sky crossed 2 Million subscribers in 20 months… the fastest subscriber ramp-up ever by a DTH platform

The Indian Telecom miracle took 6 years to reach half the DTH number Wireless Subscriber Growth Source : COAI Data

INDIA… 165 Mn Pay TV HHs by 2015 Penetration will double Revenues will quadruple Source : MPA report, March 2007

2007 to 2015…Growth of 683 % Source : MPA report, March 2007 The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

In 5 years… We have managed to overtake Japan as the largest DTH market in Asia And in the next 5 years (by 2012) we will be able to add another 30 million subscribers (which is about the same as the population of Belgium, Portugal and Greece put-together!)

DTH is a nascent category in its growth phase

Playing the volume game… DTH in India Indian cable TV subscribers are currently spending about % (US$ 4 - 5) of their monthly income on cable services Globally, consumers spend 3 - 4% of their monthly income on pay television services While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of scale to fully exploit the market potential This clearly is expensive business (At least in the short-medium run)

Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 – 2007) Source: NCAER Appetite for Entertainment is growing $ 25 Billion being spent annually by Indians on travel 45 Million credit card subscribers growing at 35% annually 10 Million color TVs sold annually 125 Million TV homes ….have doubled in last 6 years Rapid adoption of new technologies by Indians Million mobile phone subscribers are added every month 350,000 Satellite TV subscribers added every month But, the Indian market is changing

DTH …congruence of interests for all stakeholders Consumers Consistent and professional service Superior video / audio quality Multiple channel packages to choose from Interactivity Access to niche content Movies on pay-per-view – 800 films produced in India every year Ability to move anywhere across India w/o buying a new STB Extensive rural reach Broadcasters Transparent / auditable platform with no under-declaration New revenue stream Convenience of dealing with a single operator rather than with multiple MSOs Will minimize piracy Government Plug the tax leakage through declaration Additional source of revenue – license fee payable by DTH operators

With its proven, superior technology, value added services & professional customer service Along with the ability to offer all India coverage at low incremental per subscriber cost (upgrading cable infrastructure across India will need huge investments & appeal of Broadband service will be limited to metros & large cities) DTH is set to win…

Finding the perfect mix for DTH Monetising volumes. Improving ARPU. Reach 1 Brand Building VAS 2 Customer Service 3 National coverage (Urban & Rural) Subscriber Mgmt Payment, Renewals, Recoveries Focus on Interactive Services PPV Alerts Red Button promos New Innovations Outstanding Customer Service at all Touch Points 24/7 Call Center Language support Engineering support Value 4 Value for money brand Quality content Relevant packaging Exclusive / Niche content

Innovation Tata Skys Approach Execution Tata Sky…setting new standards

DOING IT DIFFERENTLY To get to the bottom of the pyramid, start at the top Make technology aspirational to early adopters 1 Mn subscribers in 1 year… fastest ever in the world Upper Middle Low

24x7 Call Centres, Over 800 associates, supporting 11 languages Technology…partnerships with global leaders 3000 engineers across India Professional installations across the country EXECUTION

CUSTOMER SATISFACTION…best in class performance scores Durable SectorTelecom Sector Norms Best In Class Norms Best In Class eQ Index Commitment Share 6662 Vulnerable Share 99 Tata Sky 88 3 Comparison with global industry norms & global best in class scores Source : AC Nielsen Customer Satisfaction study, April 2007

Partnership with Global Leaders…

the dish will also have a different look Tata Sky+ … taking digital TV to the next level Tata Sky+ … taking digital TV to the next level

DTH in India…key imperatives Reduction in License Fees Level playing filed with Cable /CAS rollout Content exclusivity Burdensome Tax structure FDI Norms and investment restrictions

Play the volume game Address the mass market with a volume-led strategy Value based pricing will be the key to success Innovate to differentiate Adoption of global success…Red button applications Payment modes Interactive programming New VAS & Products ( PVR) Execute Effectively Address market complexity Rapid scale up To Make Most Of This Opportunity, we need to… Engage and advise the government / Regulator Develop a pragmatic regulatory framework Correct current policy anomalies

In Sum What is important to recognise is this is a transitory phase Many players means lots of investment And only lots of investment will help to grow the market In the shorter run though competition may trigger lower tariffs and increase SAC & Cash burn The need is to focus on : Creating Reach to build volume Offer affordable pricing Innovation to create customer value & increase ARPU Outstanding execution to keep & gain new customers And Lots of patience!

Thank you