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INDIA CALLING OPPORTUNITIES IN TELECOM & ITES SECTOR DOING BUSINESS IN INDIA By N K GOYAL President, Communications and Manufacturing Association of India,

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Presentation on theme: "INDIA CALLING OPPORTUNITIES IN TELECOM & ITES SECTOR DOING BUSINESS IN INDIA By N K GOYAL President, Communications and Manufacturing Association of India,"— Presentation transcript:

1 INDIA CALLING OPPORTUNITIES IN TELECOM & ITES SECTOR DOING BUSINESS IN INDIA By N K GOYAL President, Communications and Manufacturing Association of India, CMAI Founder Member, Chairman Emeritus, Telecom Equipment Manufacturing Association of India, TEMA Council of Electronic Hardware Association of India TEMA Export Promotion Council, Government of India Director, NFL, Government of India nkgoyals@yahoo.co.innkgoyals@yahoo.co.in 98 111 29879

2 AGENDA - India Invites - India Electronic Potential - India Telecom - Electronic & IT Industry - Entry Strategy for Investors - Environmental Issues - Indo-Japan Synergies and R&D - Leaders Recommend India

3 Dr Manmohan Singh Hon’ble Prime Minister of India invites you India has got off to a good start…. savor the wonderful journey of creativity and enterprise taking place in the country. India is a nation on the move, set to regain its place in the community of nations as a plural, secular and liberal society with an open economy. Address at McKenzie Board Meeting in India 24.10.2007

4 Dr Manmohan Singh Hon’ble Prime Minister to Fortune Global Forum Be it FDI, investments in India’s stock markets or investment in knowledge economy, the signals are all positive. We will work to keep these positive. Investment is an act of faith. It is shaped by perceptions, by expectations and by all uncertainties of life. India assure you that your faith will not be misplaced. All those who invest in India, who invest in its future, who invest in India’s prosperity and who invest in the capacity of Indian people will be investing in the future of democracy. 29 th October, 2007

5 India’s super growth rate Slowdown in World growth : 5.4% in 2006, 5.2% in 2007 and expected to fall 4.8% in 2008. India : Fell from 11.5% in 2006 to 9.8% in first five months of 2007 - but yet much above the world level! Current GDP : 1 $ Trillion. World Bank report (Oct’07) foresee India can innovate to $5 Trillion GDP! Stocks booming : Sensitive Index (Sensex) took 15 years to sail from 1000-10,000 points & 20 months to reach 20,024 points! With Market capitalization at $1.58 trillion, India is Number 9 in global pecking order after US, Japan, UK, China, France, Hong Kong, Germany, Canada. India foreign exchange reserves over US$300 Billion. Fifth largest in world and very soon going to be fourth position!

6 28 States & 6 federal territories (UTs) 37 official languages and 1652 languages & dialects. Most Indians speak either English or Hindi (More Indians speak English than the entire population of USA) Largest Democracy in the world; very strong legal system Federal and provincial governments elected by the people. Monetary Unit: Rupee 1 US$ ~ 41 Rupees (INR) 1.1 Billion People 3.3 million sq. kms area Diverse and Unique India

7 Fastest Growing Nation GDP grew at 9.8% during 2007, aiming double digit growth GDP grew at 9.8% during 2007, aiming double digit growth Today India is a services superpower in the making. the 12 th largest economy in world. Strong investment momentum Strong investment momentum Market capitalization up from USD 140 Bn in FY 2001 to > USD 1.58 Trn recently Market capitalization up from USD 140 Bn in FY 2001 to > USD 1.58 Trn recently FDI on the rise - USD 7.6 Bn (06) and USD 19.4 Bn (07) FDI on the rise - USD 7.6 Bn (06) and USD 19.4 Bn (07) FII investment - USD 6.5 Bn in 2006-07 FII investment - USD 6.5 Bn in 2006-07 140 + public traded companies with market cap > USD 1 Bn 140 + public traded companies with market cap > USD 1 Bn GDP GDP composition – FY 2007 By 2050, India projected GDP is US$ 70 Trillion Source: CMIE

8 India : The 5 Ds Diversity –Highly diverse –23 languages, 30 provinces –6 major religions –Cultural,religious, & Climatic Diaspora –Over 2 Mn Indians outside India –Indian companies outbound M&A > USD 15 Bn in 2006 Demographics –1.12 Bn population, Remain a ‘young’ nation beyond 2050 –< 20 yrs population –442 Mn currently –479 Mn by 2050 –~10 Mn finishing school, 600,000 Engineers and 3 Mn graduates p.a Demand –5th largest consumer market in the world by 2025. –300 Mn growing middle class –Rising incomes to lift 291 Mn out of poverty to make middle class 583 Mn by 2025 Ingredients for sustained and consistent economic performance Democracy –Largest democracy in the world –Largest digital elections –9 Prime ministers from 6 major parties, 50 + state parties, 3 MM elected representatives –ONE POLICY

9 India advantage A very rapidly growing domestic market: CAGR 30%+ Global recognition for back-end services: A proven case for IP, embedded systems and IC design Attractive for Manufacturing Investments Skilled employee base Fast and upcoming modern infrastructure (SEZs) Proximity to EU and MEA market Freight Cost; 20% cheaper than China - Faster delivery and lesser pipeline inventory Local Market Profit from Local Sales Manufacture Harness low cost manufacturing base to service local, European and MEA markets Back-end Services Use India for IP and ITes Services -New Product development -Engineering services -BPO Advantage India India is a great Opportunity - –Triple Advantage

10 India’s Electronics Potential Current India market size about US $ 34 Bill. out of which production $16.1 Bill. 2005-06 and imports about $ 18.00 Bill. Exports $ 2.2 Bn. Demand to grow from 4% of GDP to 12% by 2015 i.e.. 320 Bill. Total production may go up to $ 150 Bill. with employment potential of 21 mill. Indian ICT spending is expected to grow at 19% from $ 29.5 Bill. During 2004 to $54.8 Bill by 2008. ICT exports including BPO during 2005 was $ 16.5 Bill.

11 Indian IT Sector….high growth Gartner report states that the top six India-centric offshore service providers, collectively referred to as SWITCH companies (TCS, Infosys, Wipro, Cognizant, Satyam and HCL Technologies), accounted for 1.9 percent of the total $672 billion IT services market in 2006, compared to 0.5 percent of the $554 billion IT services market in 2001. At least two companies will be a part of the top ten companies globally if current growth pace is maintained. India-centric providers have perfected their respective value propositions through global delivery models (GDMs), providing high-quality yet lower-cost labour to buyers globally. These companies are making inroads in key clients, often beginning with smaller, project-based or staff augmentation work.

12 Indian IT Sector……cont. The average annual growth rate of the SWITCH companies was 42.4 percent in 2006, compared with a 4.3 percent growth of the market leader during the same period. Gartner says "From being relatively unknown brands a decade ago, leading India-centric providers now offer formidable competition to the global players.”

13 Indian Telecom World’s fastest Growing Telecom Market – 8-10 Mn. subscriber addition per month Second largest in the world after China 300.51 Mn. Subscribers, Mobile 261.09 Mn., tele-density 26 % Fastest sale of a million mobile phones – 1 Week World’s cheapest mobile handset made in India – US$17.2. Reliance plans web enabled phone at $12. World’s Most affordable color phone made in India – US$27.42 Retail Market for Mobile Phones – handsets, accessories etc. is worth over US$ 15 Billion and growth 15% Internet Subscribers 9.27 Mn. Internet Mobile 31.30 Mn. Broadband 3.90 Mn.

14 Indian Telecom…… Lowest tariff but highest profitability. Lowest Call Rates in the World at 2-3 US Cents, Declining ARPU, even then Rs 275 per month for GSM India ranks highest in Mobile monthly Minutes of Usages per subscriber in Asia Pacific Region and second to USA in the world….500 minutes per month Innovative approach of doing business at lowest operation costs. Innovative value added concepts…missed calls, rural applications, lowest prepaid charge of 2.5 cents.

15 Existing Indian Telecom Operators Consist of 7 fixed line and 12 mobile operators. Fixed line dominated by two PSUs- BSNL & MTNL constituting over 90%. Other 5 with 9-10 % share are Tata Teleservices, Bharti Airtel, Reliance Communications, HFCL Infotel, Shyam Telecom Mobile by GSM-Bharti Airtel & Reliance in all 23 circles. BSNL, Vodafone, MTNL, Idea Cellular, Aircel CDMA- Reliance, Tata largest, HFCL, Shyam in one of the States New Licenses given for CDMA/GSM/Unified Access 3G Auctions likely in near future.

16 Government initiatives in Telecom National Telecom Policy 1994 Private sector to Supplement Government Provide world class telecom service at affordable cost Establishment of Telecom Regulatory Authority of India (1997) New Telecom Policy 1999 Transition from Fixed license fee to Revenue Share Introduction of Free Competition Technology Neutral Licenses Establishment of Telecom Dispute Settlement Appellant Tribunal (2000) Opening of National & International Long Distance Establishment of Universal Service Obligation Fund

17 Govt. initiative in Telecom…… National Broadband Policy 1994 ISPs permitted to use underground copper cables for establishing their own last mile linkages Setting up of National Internet Exchanges (2003) Guidelines issued for intra-circle mergers of licenses (2004) Introduction of Unified Access Service License

18 Untapped Rural Potential 600,000 villages with 700 million people 530,000 villages connected >50% of total GDP from rural India Nearly 50% of Very rich + Well off households in rural India

19 India Vision for Broadband Year endingBroadband subscribers 20079 million 201020 million 2012140 million (Wireless 100 Million)

20 Broadband Deployment Plan - Urban Broadband deployment on ADSL To use more than 25 million existing copper loops in 1800 Towns/cities To use existing 100 million Cable TV network in all major Towns/cities Broadband for all Secondary Schools & Public Health care centers

21 Broadband Deployment Plan - Rural Broadband deployment in 20,000 rural Telephone Exchanges on ADSL covering more than 25,000 villages Broadband on wireless through Wi-Max in 1000 Blocks covering 30,000 villages To set up 100,000 Common Service Centres (CSC) in Villages

22 USO subsidy support scheme Universal support obligation (USO) subsidy for shared wireless infrastructure in rural areas Support for 8,000 Towers by 2007 Subsidy for 10,000 additional Towers by 2010 Aim to provide wireless connectivity for Broadband and Mobile services in rural areas

23 HUGE MARKET FOR VALUE ADDED SERVICES India has huge market for VAS services India ranks highest in Mobile monthly Minutes of Usages per subscriber in Asia Pacific Region and second to USA in the world. As on Dec. 2006 Indian average 461 (GSM 454, CDMA 424) USA 838, China 323, Russia 88, Australia 179, Singapore 320, Malayasia 159, Korea 315, Thailand 326, (June, 2006 Merril Lynch)

24 Electronics & IT industry The Market: 2006-07 ITES & Software Exports: USD 31.3 bn ; Domestic: USD 8.4 billion 6.3 million PCs sold; Installed base: 22 million 13 million TVs consumed; Installed base 100 million + Cable TV installed base 65 million 5 million + DVDs sold: growing at 40% annually Internet users: 38 million+ including wireless mobile internet users 30+ million Broadband connections: 2.65 million Mobile sales: 75 million; Installed base: 209.08 million Significant R&D and product development Sizeable presence of MNCs: Intel, IBM, Cisco, Motorola, Nokia, Samsung, LG India is suddenly attractive for hardware/electronics manufacturing

25 The PC market (Desktop + Notebooks) Units CAGR 2001-07: 30% Growth over 2005-06: 26%

26 Desktop Market: Share of Indian, MNC & Assembled 2006-07 Consumption of Indian brands decreased 2% in absolute terms Sales of MNC Brands grew by 33% and that of Assembled by 22% in absolute terms 2005-06

27 The Set top box market: 2004-07 Million Units Annual growth 84%; 2007-08: sales expected to cross 2.5 million

28 The Software & Services market USD Million Source: NASSCOM Annual growth: 31%; Exports growth at over 32% and domestic at 25%

29 Software & Services Exports Markets Source: NASSCOM ~ 80% of Fortune 500 outsource their IT from India 2003-042004-052005-06 Americas69.4%68.3%67.18% Europe22.6%23.10%25.13% ROW8.0%8.60%7.69%

30 India Semiconductor Market India’s share in the global semiconductor market is expected to increase from 1.2 % in 2005 and is forecast to be 5 % by 2015 Telecommunication, Consumer and IT Hardware are the segments driving the market during the forecast period Wireless handsets, Base Station Transceivers (BTS) are the major sub product categories driving the TAM for telecommunications segment Set Top Box, DVD players and writers are the emerging product categories in consumer segment Few other emerging product categories are electronic clusters, Capacitive Discharge Units (CDI) and Engine Management Systems (EMS) 2.82 12.67 36.3 1.14 5.8 15.52 0 5 10 15 20 25 30 35 40 200520102015 Revenues $ Billion TMTAM TM CAGR – 29.8%, TAM CAGR- 29.4% TM in 2015 is expected to grow by 13 times the TM in 2005 TAM in 2015 is expected to grow by 14 times the TAM in 2005 Source: ISA – Frost & Sullivan

31 The Future… Electronic hardware market by 2015 USD 320 billion including production USD 150 billion and exports USD 21 billion. Telephone subscribers: 500 million by 2010 PC sales: 25 million; installed base 65 million by 2010 ITES & Software exports: USD 60 billion by 2010 40 million new internet connection; at least 50% broadband by 2010 Nationwide TV broadcast to be digital by 2015 beginning 2010: significant opportunity for STB consumption & manufacturing Over USD10 bn investment in e-governance and national id card by 2010 2015: Total expected Market USD 320 bn; Domestic production USD 155 bn

32 Venture Capital Industry  An estimated USD 7.5 billion in VC/PE in 2006 across 299 deals Over 250 deals in first half of 2007 with USD 5.6 billion Expected to cross USD 10 bn in 2007  Key Investment Verticals – IT/ITES (23.5%), BFSI (12.1%), Manufacturing (12%), Real Estate (7.1%); Engg & Construction (7.9%)  India Specific VCs: ChrysCapital, HSBC Pvt Equity, ICICI Ventures, IL&FS Venture Corporation, Infinity Technology Ventures, SIDBI, Walden International etc. Source: IVCA

33 India emerging Manufacturing Destination Surge in manufacturing confidence led by mobile players Branded players: Nokia, Motorola,Ericsson, Texas, Alcatel, … EMS companies: Elcoteq, Flextronics, Solectron, Jabil Circuits, Sanmina, Celestica, Aspcomp etc. With new Fab policy several Semiconductor firms like AMD etc. are keen to manufacture in India Consumer Electronics: LG, Samsung, IT Companies: CISCO, Dell, IBM, Intel, Microsoft,Lenova Taiwanese Companies just about coming in Foxconn/Honhai; Compal (Reliance), Delta Electronics, Liteon

34 India Growing Services Sector Today India is a services superpower in the making. the 12 th largest economy in world. Indian growth can be attributed to traditional drivers like growing urbanization, significant development of small towns and rural India, Increased focus on infrastructure and education. Services sector that witnessed three waves 1990s the software services 2002s telecom services witnessing 80% growth 2005 financial services wave

35 Indian Media & Entertainment (M&E) Industry Global M&E industry $2 Tr. By 2011 Domestic entertainment industry estimated USD 10 Bn. Employing 8 Mn. People. Indian M&E will grow double the rate of Country’s GDP over next few years driven by emergence of regional players, technology and digitization (Ernst & Young Dec. 07) Indian film industry $ 1.8 bn. in 2006 expected to be $ 4.4-5.1 bn. by 2011. Producing over 800 films p.a. Cable and satellite market third largest in world growing at 38% CAGR for last 17 years. TV advertising to grow 14% over next three years and continue to constitute 43% of total spend. 350 TV channels in India, 3 rd largest in world. Out of 200 Mn. homes, TV spread to 60% i.e.. Over 120 Mn. Homes.

36 India M&E……..cont 56 Mn. households are expected to be digitally connected by 2010, out of which 27 Mn. would be on DTH. The DTH industry expected to be Rs 100 Bn. by 2010. Around 28% of 100 Mn. pay TV households by 2010 would be going digital. IPTV would be close to 1Mn. By 2010. Indian animation industry nascent at $ 285 Mn. Gaming industry currently $ 50 Mn. expected $ 300 Mn. By 2009 Over 60,000 newspapers registered, print media reach around 220 Mn. This is 30% of literate population (which in turn is 65% of India’s population) Music & radio industry shrunk $ 250 Mn. during 2000 to $ 155 Mn. during 2004. Film music contributes more than 70% of music industry content. Digital music expected to be 88% of total music market.

37 Incentives provided by Indian Government Custom duty on ITA-I products zero w.e.f. 01.03.2005. No industrial licence for manufacturing of telecom equipment. 100% Foreign Direct Investment (FDI) through automatic route permitted for Manufacturing and 74% for services Fully repartriable dividend income and capital invested Payment of technical know-how fee of up to US$ 2 million and royalty up to 5% on domestic sales and 8% on export sales, net of taxes, through automatic route. Promotion of telecom product specific SEZs.

38 Incentives by Govt…...contd. Import of all capital goods for manufacturing telecom equipment does not require any license. 10 year income tax holiday for EOU/EPZ/STP/EHTP units. Export income is exempt from income tax for all exporters. Tax holiday 100% for five years and 30% for next five years in a block of 15 years. Infrastructure Telecom equipment exempted from customs duty. Exemption from Excise duty on Cellular Phones and it components, Pagers, Radio Trunking Terminals and Parts. Telecom services sector allowed the benefit of carry forward of losses on mergers.

39 Entry Strategies for Foreign Investors STARTING OPERATIONS IN INDIA Incorporation of Company For registration and incorporation, an application has to be filed with Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. A foreign company planning to set up business operations in India has the following options

40 Indian Company A foreign company can commence operations in India by incorporating a company under the Companies Act,1956 through Joint Ventures; or Wholly Owned Subsidiaries Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.

41 Joint Venture Joint Venture With An Indian Partner Foreign Companies can set up their operations in India by forging strategic alliances with Indian partners. Joint Venture may entail the following advantages for a foreign investor: Established distribution/ marketing set up of the Indian partner Available financial resource of the Indian partners Established contacts of the Indian partners which help smoothen the process of setting up of operations

42 Subsidiary Company Wholly Owned Subsidiary Company Foreign companies can also to set up wholly-owned subsidiary in sectors where 100% foreign direct investment is permitted under the FDI policy.

43 Foreign Company Foreign Companies can set up their operations in India through Liaison Office/Representative Office Project Office Branch Office Such offices can undertake any permitted activities. Companies have to register themselves with Registrar of Companies (ROC) within 30 days of setting up a place of business in India.

44 Liaison Office Liaison office acts as a channel of communication between the principal place of business or head office and entities in India. Liaison office can not undertake any commercial activity directly or indirectly and can not, therefore, earn any income in India. Its role is limited to collecting information about possible market opportunities and providing information about the company and its products to prospective Indian customers. It can promote export/import from/to India and also facilitate technical/financial collaboration between parent company and companies in India.

45 Project office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. Such offices can not undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.

46 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes: Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company. Representing the parent company in India and acting as buying/selling agents in India. Rendering services in Information Technology and development of software in India. Rendering technical support to the products supplied by the parent/ group companies. Foreign airline/shipping company.

47 Branch Office….contd. A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).

48 Branch Office on “Standalone Basis” Such Branch Offices would be isolated and restricted to the Special Economic zone (SEZ) alone and no business activity/transaction will be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities subject to specified conditions.

49 ENVIRONMENTAL ISSUES Environmental issues have been rising up throughout the world during last several years. Climate change is already with us. Scientific evidence shows that past emissions of greenhouse gases (GHG) are already affecting the Earth’s climate. If current trends and policies continue, the result will be a rapidly warming world. Most of the observed warming in the past 50 years has been caused by human activities, particularly producing and consuming fossil fuels, increasing agriculture and changing land use. Cont………

50 WORLD IS SERIOUS ON ENVIRONMENTAL & HAZARDOUS ISSUES Kyoto Protocol (2005):It caps the quotas on maximum amount of greenhouse gases for developed & developing Nations. Countries made commitments to individual, legally binding targets to limit or reduce their greenhouse gas emissions by 2008-2012. UN Convention: Stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Rotterdam Convention: Under this expert body recommends whether a hazardous product should be placed on special list which requires countries to obtain prior consent before they can export product. All countries have taken precautions for Air, Water, Sound Pollution. Basel Convention for E waste and Hazardous Waste Management Amendment Rules 2003 List A & B Schedule 3

51 Concern - Health & Environment E Waste ….becoming more and more Radiation… can’t touch it, feel it, smell it, taste it. Use of Bio gradable materials Hazardous growth of telecom towers in unsafe way Problems :  Do we wait for evidence or lack of it to act  Do we wait for Policy and regulations  Mindset & resistance to amend and changes, alternatives Solution : Awareness and willingness to Act immediately Anti EMR Products and Solutions, E waste management

52 E WASTE Electronic Waste “E-waste” or “Waste Electrical and Electronic Equipment (“WEEE”) is a waste consisting of any broken or unwanted electrical or electronic appliance or E-waste comprises of waste electronic goods which are not fit for their originally intended use. E-Waste contains Toxic Substances and chemicals, which have adverse effect on environment and health, if not handled properly, e-waste is hazardous as it contains hazardous constituents. E waste is source of carcinogenic ( cancer causing) substances and release most harmful elements in atmosphere.

53 WORLD IS CONCERNED FOR E-WASTE Covered under Hazardous Waste Management Amendment Rules 2003 List A & B Schedule 3 Covered under Basel Convention Annexure VII The restriction of hazardous substances--known simply as RoHS--bans six substances, including lead and mercury, from consumer electronics. Eco-Design Requirements for Energy Using Products directive (EuP) requires that the physical inputs and outputs of certain products throughout their entire life cycle be measured and minimized; and this includes materials, packaging, distribution, emissions and waste.

54 World concern….contd. The European Union's WEEE (Waste Electronics and Electrical Equipment) directive stipulates that discarded electronic items must be kept separate from regular trash, and that the makers must take them back for recycling and proper disposal, or pay others to do this. Countries like Switzerland, Norway, Japan, Belgium, South Korea, Taiwan etc. have legislation and fees levied on consumers and producers for tackling e waste. Companies that do not comply with the directives face exclusion from European markets.

55 Global Electromagnetic Radiation (EMR) For millions of years, life evolved on earth where the natural frequency/radiation background level has been very low. For millions of years, life evolved on earth where the natural frequency/radiation background level has been very low. The Earth's natural geomagnetic resonating frequency is normally 7.8Hz. Then starting only 100 years ago, a literal explosion of EM frequencies in the form of television, radio and microwave radiation has increased our everyday exposure level by at least 10,000 times. The Earth's natural geomagnetic resonating frequency is normally 7.8Hz. Then starting only 100 years ago, a literal explosion of EM frequencies in the form of television, radio and microwave radiation has increased our everyday exposure level by at least 10,000 times. Clearly, global EMR is a major human health threat. Immediate efforts needed now to limit, manage and control exposure to all levels of harmful EMFs and frequencies in our environment. Clearly, global EMR is a major human health threat. Immediate efforts needed now to limit, manage and control exposure to all levels of harmful EMFs and frequencies in our environment. The threat is invisible, insidious and increasing exponentially in scale and in magnitude as the Mankind enters the 21st century. The threat is invisible, insidious and increasing exponentially in scale and in magnitude as the Mankind enters the 21st century.

56 Global Electromagnetic Field (EMF) EMF is everywhere. It is generated by cosmic, solar, every electrical device and man made sources. EMF not composed of atoms but can be measured. They are forms of energy, not matter, having their own properties. EMF is everywhere. It is generated by cosmic, solar, every electrical device and man made sources. EMF not composed of atoms but can be measured. They are forms of energy, not matter, having their own properties. EMFs can be a health risk and steps ought to be taken to avoid exposure. Researchers have found scientific evidence EMF radiation damages cells and other affects on health. EMFs can be a health risk and steps ought to be taken to avoid exposure. Researchers have found scientific evidence EMF radiation damages cells and other affects on health. “I have no doubt in my mind that, at the present time, the greatest polluting element in the earth's environment... more serious even than global climate change and chemical pollution... is the proliferation of electromagnetic fields” “I have no doubt in my mind that, at the present time, the greatest polluting element in the earth's environment... more serious even than global climate change and chemical pollution... is the proliferation of electromagnetic fields” Dr. Robert O. Becker, M.D. Still another view is No evidence of established health effects at levels below the existing standards (MMF)

57 Some seriousness attached to Radiations In Airplanes, passengers advised to keep mobile phones in switch off mode to avoid interference with the sensitive operating machinery of the aircraft. At ISRO, small rockets took off due to radiations’ interference with the operations of the rocket launching system. People with Pacemakers advised not to carry mobile phones as the radiations emitted from mobile can interfere with the functioning of pacemaker. Mobile Phones not permitted in ICUs. Recorded cases of Birth disorders and untimely abortions due to excessive exposure of pregnant ladies to microwaves. Butterflies, Sparrows, pigeons, vultures, parrots etc increasingly vanishing from skies due to onslaught of, power transmissions, mobile telephony and satellite communications. Sweden Govt. giving radiation affected disability allowance. State Governments of India banning towers in Residential areas.

58 Some Researches Recent research project by Spanish Scientists discovered that wireless radiation penetrates deeply into the skulls of users and that a single 2 minute usage disrupted normal brain waves for up to one full hour afterwards. Several medical research studies have concluded that the microwave frequencies entering into the heads of wireless users are enough to cause neurological damage. Research by University of Washington professor Dr. Henry Lai shows brain cells are clearly damaged by microwave and that even tiny doses of radio frequency can cumulate over time and lead to harmful effects. Governments across the world like US and UK are taking precautionary approach and adopting safety guidelines IEEE, ICNIRP etc.

59 World Standards coming up EU Radio & Telecom Terminal Equipment Directive (R&TTE Directive 5/1999/EC) managed by DG Consumer Protection and Health, Generally accepted as the reference for exposure values ICNIRP, IEEE recommendations & guidelines US National Academy of Sciences (2008): a great deal of research has been carried out to investigate possible biological or human health effects resulting from the use of these devices WHO Fact Sheets: FS 183: Effects of Radiofrequency Fields, FS 184: Public Perception of EMF Risk, FS 296: Electromagnetic Hyper sensitivity, FS 304: Base Stations & Wireless Technologies ITU-T K.52 “Guidance on complying with limits for human exposure to electromagnetic fields” states/recommends: In many cases, local or national regulatory agencies or standards bodies promulgate the EMF safety limits. If such limits do not exist, or if they do not cover the frequencies of interest, then ICNIRP limits should be used. SAR value prescribed by Australia, Malayasia, Thailand, Singapore & Philippines, China, USA, UK etc. 2W/kg averaged over 10g

60 Environmental Issues – Way Forward India offers expertise and technology for Policy regulations, public policy for radiations Technology to control and make radiation safe the towers and other gadgets Products for Anti Radiation Measures Coordinated efforts for Research & Development in this field.

61 Summary India is one of the strongest and fastest growing economies in World Indian Telecom sector growing at an explosive pace with the highest growth in wireless users India will lead to massive opportunities for broadband wireless & VAS Government of India fully supports growth of all technologies and will provide necessary regulatory framework to promote and facilitate such growth. All assistance and cooperation assured.

62 Why is India & Japan worth Attention? India as an Emerging Economy Growing middle class market Indian stock boom Indian economy featured in business magazines and newspapers Japan known world over for high tec high quality products with well known brands. Excellent Ties between the Governments. Government Level INDO ICT Japan Forum Cultural affinity Source:JETRO

63 Japanese Global Share Japan’s global market share and exports share declined in almost all ICT-related products between 1997 and 2005. Regardless of the decrease of the weight of the Japanese market in the global market, the ICT vendors of Japan tend to be domestic market- oriented compared to those of the US and Europe. There is reported shortage of domestic software engineers. One of the major purposes of off shoring is offset the shortage. Source: The Foundation for Multi Media Communications (FMMC), Japan

64 Japanese ICT Vendors ICT vendors of Japan tend to develop their business in a wider product range than those of the US and Europe. This makes it possible to spread business risk and build up a wide variety of technologies Japanese ICT vendors are competitive in product areas where material technologies, optical/electronic device technologies, equipment technologies, and technologies for metal dies are important. As the demand for high-end products is expected to increase, Japan, as the most advanced country in terms of broadband infrastructure, will become a test bed for products with the highest technology, which will create important opportunities for Japanese ICT vendors. Source: The Foundation for Multi Media Communications (FMMC), Japan

65 Research & Development Japan very strong in 4G, gaming, animation, media contents. Japan I Burst, PHS very good technologies suitable for India and Asian countries. India has good demand for above. There can be collaborative efforts for joint R&D and marketing of telecom ICT products.

66 Way Ahead Let us move ahead Joint venture Joint R&D Joint Marketing in third world countries Collaboration in exchange of business delegations, trade exhibitions. All assistance assured from India

67 Leaders Recommend India Arun Sarin, Vodafone says…. I am getting a taste of how they do business in India. My team studying secret of low cost business model In UK average call costs 15 cents and in India only 2 cents. Margin remains 40%. Low cost labour is hardly one third. The other two third is just how they do business. India has innovative approach to delivery, services and distribution systems. India more open in telecom. In China they own just 3% & balance Govt., but in India up to 74% and balance with private parties.

68 Leaders recommend India We see in India telecom companies doing 30% plus margin on $8 monthly revenue. There is no place in the world where wireless fetch these kinds of numbers. What India has shown on the wireless side is significant to the whole world. India is platform for Asia. It’s a billion people under one regulatory environment, you can come here and scale and then leverage that grow into Asia. Randall Stephenson, Chairman & CEO, AT&T at New Delhi Press 1 July, 2007(Mint)

69 Leaders Recommend India… India has a fantastic pool of software professionals. The world needs to benefit from this Bill Gates, Microsoft Chairman Not only are there brilliant engineers here [in India], I've been seeing that the entrepreneurial spirit of the businesses is second to none Mike S. Zafirovski President and Chief Operating Officer Motorola Through the wisdom of its government leaders and the entrepreneurship of its private sector, India has risen to become a major force in the global economy John Chambers, President and CEO, Cisco Systems Inc India has evolved into one of the world's leading technology centres Craig Barrett, Chairman, Intel Corporation I put India on the top priority market among emerging markets Yuanquing Yang, Chairman, Lenovo

70 World View There is keen awareness of the need to continue to strengthen India's fiscal position, open the economy more fully to the world and remove the remaining domestic constraints on growth Rodrigo de Rato, ManagingDirector, IMF Because of the dynamism of the economy, there is a very optimistic view of the direction of the country. Lee Howell, World Economic Forum India has the potential to deliver the fastest growth over the next 50 years with an average rate of more than 5 per cent a year for the entire period Dominic Wilson, Senior Global Economist Goldman Sachs India has displaced US as the second-most favoured destination for foreign direct investment (FDI) in the world after China `]A T Kearney, FDI index report If you put one dollar in the US, you may get two dollars in three years. But if you put the same dollar in India, there is a high chance of getting three dollars Wayne W Tosu, Managing Director, Carlyle Group

71 GIO Factor In Hindi – GIO means Live Long Come…..explore….and be a part of the…. Great Indian Opportunity


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