KULDEEP SINGH CMD, MTNL

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Presentation Plan
1 2 3 4 Telecom Industry Overview MTNL Overview Telecom Evolution Telecom Emerging Environment

www.mtnl.in

Presentation Plan
1 2 3 4 Telecom Industry Overview MTNL Overview Telecom Evolution Telecom Emerging Environment

www.mtnl.in

Telephony services (mobile and basic) and Internet services dominate the Indian telecom services
The Indian telecom market generated revenues of approximately USD 20 billion in 200607. It registered a CAGR of approximately 22 percent from 200203 to 200607. The CAGR from 200607 to 200910 is expected to stabilise at 21 percent. Apart from mobile telephony services, other value-added services are also gaining importance.

Mobile Services

Telecom Services India

VSATs

The Indian telecom services can be divided predominantly into basic, mobile and Internet services. It also comprises smaller segments, such as Very Small Aperture Terminals (VSATs), and Global Mobile Personal Communications by Satellite. The growth witnessed in the mobile services and Internet services segments was higher as compared to other services, such as basic services and radio services.

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Indian Telecom Industry A Lucrative Option

In recent years, the Indian telecom industry has witnessed phenomenal growth. A conducive business environment, favourable demographic outlook and the political stability enjoyed by the country have contributed to the growth of the industry. India achieved the distinction of having the world's lowest call rates, the fastest sale of million mobile phones, the world's cheapest mobile handset and the world's most affordable colour phone .

Particulars

Wireless

Wireline

Total Wireless + Wireline 85.99 11.30 1.29% 587.94 1.26% 298.05 1.35% 73.97

Total Subscribers (Million) Total Net Addition (Million) % of Monthly Growth Urban Subscribers (Million) % of Monthly Growth Rural Subscribers (Million) % of Monthly Growth Teledensity

851.70 11.41 1.36% 562.12 1.33% 289.57 1.42% 71.11

34.29 8 -0.11 -0.32% 25.82 -0.18% 8.47 -0.73% 2.86

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Indian Telecom Industry A Lucrative Option

Mobile Number Portability requests increase from 105.70 lakh subscribers at the end of May 2011 to 129.85 lakh subscribers at the end of June 2011. Active wireless subscribers on the date of peak VLR in June- 2011 are 594.77 Million. Broadband subscription reaches 12.32 Million in June2011 from 12.12 Million in May-2011.

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Major Players in different segments of Indian telecom industry Basic Services Operators:
BSNL MTNL Reliance TTSL Bharti

GSM Services Operators:

BSNL MTNL Reliance Vodafone Airtel

Internet Services Operators:

BSNL MTNL Reliance TTSL

CDMA Services Operators:

BSNL MTNL Reliance TTSL

Airtel
Sify

Each circle is having atleast one Govt. operator & three Private operator for ensuring competetion. www.mtnl.in

Service Provider wise Market Share as on 30.06.2011

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Presentation Plan
1 2 3 4 Telecom Industry Overview MTNL Overview Telecom Evolution Telecom Emerging Environment

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MTNL Overview
Date of Establishment Revenue Market Cap Corporate Address 1986 22648.5 ( Rs. in Millions ) Jeevan Bharti Building,Tower 1 12th Floor,124 Connaught CircusNew Delhi-110001, Delhi www.mtnl.net.in/www.bol.net.in Wire-line Wireless Broad-Band ISDN Leased Circuit Telecommunication - Service Provider in Delhi & Mumbai The company started its operations by establishing telephone system with a manual exchange. Later in 1986 MTNL (Mahanagar Telephone Nigam) was established. In the same year it brought in digital exchange world technology for the first time in . MTNL, a state-owned telecom service Total Income - Rs. 50578.23 Million ( Year ending Mar 2010) Net Profit - Rs. -26109.72 Million ( Year ending Mar 2010) Nepal, Marritus

Customer Base

Business Operation Background

Financials Overseas Operations

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Presentation Plan
1 2 3 4 Telecom Industry Overview MTNL Overview Telecom Evolution Telecom Emerging Environment

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 Wireline - Since 1878 Wireless Since 1946 2G (GSM/CDMA)Since 1983 2.5G: GPRS, EDGE, 2001X

3G: WCDMA
4G: NGN, IMS
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Services/Application

Fixed-line Services: Ring back Tone Dial Tone Emergency Services Morning Alarm Call Waiting Call Transfer FAX Centrex EPBAX ISDN Dynamic Lock IN Services VAS Supplementary Services

Mobile Services: Ring Back Tone Emergency Services Call Waiting Call Transfer Call Conferencing SMS MMS VoIP VAS Supplementary Services

Data Services: Dial up Internet ISDN Leased Circuit Broad Band (ADSL/ADSL2+) FTTH HSDPA (WCDMA) LTE (4G)

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Evolution of Technologies

Switching Technologies Transmission Technologies Data Technologies

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Evolution of Switching Technologies

Mobile Switching Technologies: Pager/WLL/CorDECT AMPS CDMA 95A /95B 1X 2000 EVDO EVDV WCDMA GSM 2G 2G+GPRS 2G+ EDGE 2G + HSPA WCDMA 4G (LTE) MTNL presently has 100% digital & NGN exchanges for Wire-line & 3G for wireless network. www.mtnl.in

Fixed Line Switching Technologies: T-43 Board (Manual Exchange) Strowger (Mechanical Exchange) Cross Bar (Electromechanical Exchange) Digital Exchange IN NGN/IMS

Evolution of Transmission Technologies

PCM : 2MBPS PDH : 155MBPS SDH : STM1 : 155.52 Mbps STM4 : 622.08 Mbps STM16: CWDW/DWDM : Bandwidth in terms of lamda i.e. STM 16 FE/GE (each interface) 10GE/40GE (each interface)

MTNL presently has MPLS network in Delhi & Mumbai covering at-least all centers of operations with 10G/40G Interface capabilities. www.mtnl.in

Evolution of Data Technologies

Technology Dial up Internet ISDN ATM X.25 ADSL ADSL2+

Speed 56Kbps 128Kbps

2 MBPS 24 MBPS

Wi-fi Wi-Max
HSDPA FTTH

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Presentation Plan
1 2 3 4 Telecom Industry Overview MTNL Overview Telecom Evolution Telecom Emerging Environment

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Emerging Scenario

Customer Perspective Operator Perspective

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Customer Perspective
The proliferation of multi-access, multi-use devices Always-on, anywhere, ubiquitous communications Ad-hoc conferencing- Leverages buddy lists to allow users to easily set up group calls. Chat- Allows users to talk at the same time they are sharing information and applications.

Enhanced messaging- Allows users to escalate from IM to a voice call

Enhanced voice mail- Allows callers to leave messages in either voice, text, or email format. Application Share- A terminal user share an application than the opposite party can use this shared application remotely.

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Customer Perspective
Electronic White Board- Both parties can write & draw on the same picture i.e. discussion, remote teaching etc. IP Centrex- Subscribers of domain/group can make intra-group calls with private numbering plan. Picture messaging. Leverages buddy lists and IM, allowing users to instantly share photos Find-me. Allows callers to choose to ring an alternative number Location-based services. Allows users to specify areas of interest and have relevant information pushed to them based on their locale Push-to-Talk. Near instant one-to-one or one-to-many walkie-talkie style calls Session based transfers. Allows users to switch from voice, to video, to application sharing e-Commerce/m-Commerce/e-learning

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Operator Perspective
Limitation of Todays Telecom System
Circuit/Packet-switched

Expectations from New Telecom System

Internet Protocol (IP) based

Vertical integration of Horizontally-integrated controls layers, application and call control with simultaneous delivery of application. layers, with dedicated networks. Service related functions independent of transport-related technologies
Limited mobility of end-user services. Non-responsive network. Broad-based generalized mobility. New Network will be able to identify and adapt to user needs in real time.
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Emerging Issues
FDI and other M&A activities increasing in number Economic & Environmental Conditions Spectrum Efficiency Value Added Services Interconnection Technological Development Regulations
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FDI and other M&A activities increasing in number

Major trends in the telecom sector is increasing M&A activity, de-regulation of telecom policies and growing interest of international investors.
Vodafone purchased stake in Hutch from Hong Kong's Hutchison Telecom International for USD 11.08 billion.

Deals in Telecom Sector

Reliance Communications Limited has sold a five percent equity share capital of its subsidiary Reliance Telecom Infrastructure Limited to international investors across the US, Europe and Asia. The deal was worth USD 337.5 million.

Telekom Malaysia acquired a 49 percent stake in Spice Communications for USD 179 million.

Maxis Communications acquired a 74 percent stake in Aircel for USD 1.08 billion.

Ericsson to design, plan, deploy and manage Bharti Airtel network and facilitate their expansion in the rural areas, under a USD 2 billion contract.

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Economic & Environmental Conditions

Worlds largest democracy Independent judiciary Skilled and competitive labour force The government promoting telecom manufacturing by providing tax sops and establishing telecom specific Special Economic Zones Unified Access Service License Regime (UASL) Universal Service Obligation (USO)

Increasing mobile subscriber numbers and low level of teledensity offers large opportunities to Indian companies
Green Telecom Utilization of less Carbon Content emission equipment Un-conventional Power Sources for equipments www.mtnl.in

Spectral Efficiency

Spectrum Sharing/Trading Optimum Utilization Spectrum Re-farming Price Discovery

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Interconnection
Interconnection crucial for communicating across networks:
Various types of Interconnection in changing scenario: Interconnection between access service providers Interconnection with long distance operators Interconnection with ISPs Mobile Termination Charges

Interconnection models: TDM based interconnection IP based interconnection

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Value Added Services

Video On Demand

Interactive Gaming
T.V. Tele/Video Conferencing

M-commerce

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Emerging Technologies Fixed Mobile Convergence Common Core for Wire-line & Wireless (MPLS) Next Generation Network (IP Multimedia Subsystem)

Cloud Computing
FEMTO-CELL 4G (LTE) System FTTH
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Regulatory Framework
The Department of telecommunications (Government of India) is the main governing body for the industry. Telecom Regulatory Authority of India (TRAI) assists the Government of India (GoI) to take timely decisions and introduce new technologies in the country.

Indian Telecom Industry Framework

Indian Government Bodies
They formulate various policies and pass laws to regulate the telecom industry in India.

Independent Bodies

Wireless Planning and Coordination (WPC) Department of Telecommunications Telecom Commission Group on Telecom and IT (GoT-IT)

Handles spectrum allocation and management DoT Licensee and frequency management for telecom Exclusive policy making body of DoT Handles ad hoc issues of the telecom industry

They undertake various research activities and monitor the quality of service provided in the Indian telecom industry. They also provide various recommendations to improve the status of telecom operations in India.

Telecom Regulatory Authority of India (TRAI) Telecom Disputes Settlement and Appellate Tribunal (TDSAT)

Independent regulatory body (1997) Telecom disputes settlement body

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Various important regulations and laws have been passed in the Indian telecom industry post-liberalisation era
Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.

Private players were allowed in Value Added Services

Independent regulator, TRAI, was established

BSNL was established by DoT

ILD services was opened to competition Go-ahead to the CDMA technology 2002

Calling Party Pays (CPP) was implemented 2003

INDIA

Intra-circle merger guidelines were established Attempted to boost Rural telephony 2004 2005

3G services

1994
1992 1997

1999 2000

2010 2009

Internet telephony initiated Reduction of licence fees

National Telecom Policy (NTP) was formulated

Unified Access Licensing (UASL) regime was introduced

Reference Interconnect order was issued

NTP-99 led to migration from highcost fixed license fee to low-cost revenue sharing regime

Broadband policy 2004 was formulated targeting 20 million subscribers

FDI limit was increased from 49 to 74 percent

Number portability

ILD International Long Distance

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Telecom Regulatory Authority of India

Prevailing Regulatory framework

TRAI set up in 1997 by government of India Independent regulator for business Telecommunication in the country Mandated to provide an effective framework
To protect the interest of consumers To encourage the growth of telecom To form transparent and fair policy environment To ensure fair competition

of

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Features of Telecom Regulatory Authority of India

Cost based Technology neutral Level playing field Consumer centric Light touch regulations Ensure fair competition

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Benefits from Telecom Regulatory Authority of India

Exponential growth in tele-density Affordable tariffs Increase in number of operators Intense competition
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THANK YOU
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