Telecom–CatalyzingIndia’sNewEconomyPresentationofKeyfindingsAnandRangacharyManagingDirector22ndNov2007Frost&SullivanIndiaSouthAsia&MiddleEast1Content1IndiaStory2TelecomSectorinIndia3KeyFindingsofOurReport4WayForward-StrategicRoadmap21IndiaStoryIndia-PoisedtobecomeanEconomicSuperpowerIndian4thHighestGDPinPPPTerms12ndHighestGDPGrowth2003-20062economyinaresilientmode12.0%intermsof10.1%10.0%14,0008.2%GDPgrowth…11,62812,0008.0%7.0%10,0007,1246.0%8,0004.0%3.9%3.8%3.2%Positionedas6,0004.0%2.7%2.5%3,7743,3631.9%thefourth4,0002,3262.0%2,000largest0.0%0economyinUSUKUSChinaJapnaIndiaGermanyIndiaChinaBrazilJapanRussiaMexicoFrancetermsofCanadaSource:WorldDevelopmentIndicators2006purchasingSource:WorldDevelopmentIndicators2006GDPGrowthpowerparity...DecliningInflationlevels3StrongForexReserves4300270…andhasthebenefitoflow250200180inflation…1401501191007454323842…alongwith502629risingforex0rateandreservesSource:OfficeOfEconomicAdvisor97FY98FY99FY00FY01FY02FY03FY04FY05FYSource:06FY07FYIndiastat.comForexReserves3Content1IndiaStory2TelecomSectorinIndia3KeyFindingsofOurReport4WayForward-StrategicRoadmap42TelecomSectorinIndiaGrowthTrajectoryIndianTelecomIndustry–250million•TotalTelecomSubscriberbase~250million•TotalWirelessSubscriberBase~210million•Teledensity~21%•ARPU<350Rs/Month•MOU~50052TelecomSectorinIndiaWirelessLedGrowthIndianMobileIndustryGrowth180170160140120105.4801008058.544.26037.4406.419.10.8020010.922010.520075.05200520063.120042003200220012000GSMSubscribers(millions)CDMASubscribers(millions)20002001200220032004200520062007GSMAnnualGrowthRate94%76%91%110%70%57%80%61%CDMAAnnualGrowthRate------700%70%75%131%81%62TelecomSectorinIndiaTelecomCirclesMobileSubscriberPenetrationDelhi78%Chennai73%Mumbai63%Kolkata40%Gujrat21%Karnataka20%AndhraPradesh17%•CircleA,BandC,allTamilNadu15%havetremendousMaharashtra11%Pu