India Wireless Market Update • The Indian wireless market grew at 32% Y/Y in the period between December, 2008 to 2009. • India continues to be the hottest market on the planet in terms of net-adds with (again) a world record-setting month in Jan 2010 with 19.9 million net adds. For the year 2009, India added 177 million subs vs. 106 million for China. Combined, one year of growth in these two market is equivalent to the size of the third largest market - the US, to date. • Total Wireless customers in India surpassed 575 Million in Feb 2010. • India became number two wireless market and the world order is : China, India, US, Russia, Brazil, Indonesia, Japan, Germany, Pakistan and Italy. • 3 Members joined the 100M subscription club from India :Bharti , Reliance and Vodafone . • For India, data ARPU continues to stay below $1.0 as most of the new adds are voice only subscribers and there is continued price pressure in the market. • In Q4 2009, Bharti Airtel was leading wireless operator in country with average ARPU of US$ 3.94. • India wireless Industry has witnessed heavy competition and operators wireless ARPU has declined at 8 % Q/Q. • Reliance and TATA DoCoMo launched GSM services this year and fueled intense competition in Voice traffic. India Internet Market Update • Total internet customers in country were approximately 14.6 Million by Q4 2009. • BSNL/MTNL is leading internet market share in India with over 10.9 Million consumers controlling approximately 75% of the internet market. • Number of broadband connection in country was approximately 7.5 Million in Q4,2009. The number of broadband connections is less than 2 % as compared to number of current voice subscribers in India. • Observed average ARPU of Mobile broadband service 2-3 times higher than voice as it stands at US$ 12 current • With new 3G and BWA operators expected to launch services in 2H 2010, average data ARPU of mobile broadband service is expected to decline 2% Q/Q. • TATA , Reliance, BSNL and MTS launched Ev-Do based mobile broadband services in top markets and robust growth in mobile broadband access ( dongles ) were witnessed. What is expected in 2010 and 2011? • Wireless subscribers are expected to grow to 747 Million by Dec 2010. • Ev-Do (dongle) based subscribers are expected to surpass 2 Million by Dec 2010. • 3G spectrum for four operators and launch of 3G services in top markets • BWA spectrum for 3 operators and Mobile broadband services in top markets in India. • Data growth in expected with new BWA operators deploying WiMAX/LTE. • BSNL WiMAX launch in 3 circles and expected to expand to more circles • For India, Growth of 3G and BWA technologies is expected to be limited in 2010 due to limited initial markets. • In 2010, Mobile broadband growth is expected to be fueled by Ev-DO systems. • Starting at a low base, India will experience the highest increase in smartphone penetration, which will triple over five years, and number of smartphone users, which will grow 5.5 fold by 2014. The growth of smart-phones will be driven by 3G and BWA networks. • 3G iphone to fuel growth with availability of 3G networks in 2011. • USB Dongles for Mobile data is expected to become mainstream device for mobile data. • In 2011 , wireless broadband is expected to surpass number of wire-line connections in India. • WiMAX could get significant foothold if three BWA operators deploys nationwide Mobile broadband market.

1. www.beyond4g.org India Wireless Market Update 2H 2009 BP Tiwari

2. DISCLAMER This presentation is prepared by BP Tiwari and the views expressed here are my own and does not reflect my company opinion. All the information is presented in this document were collected from public domain (internet) & wherever possible reference has been provided regarding the source of information. I have made reasonable efforts to ensure that information is true as best of my knowledge at the time of compilation, however I do not warrant that the information presented herein is complete and without error. Author of the paper does not take any responsibility of the errors, omissions, or any other accuracy in any form. I encourage readers to independently verify information as author does not have any responsibility of the presented information & content.

3. India Wireless Market update The Indian wireless market grew at 32% Y/Y in the period between December, 2008 to 2009. India continues to be the hottest market on the planet in terms of net-adds with (again) a world record-setting month in Jan 2010 with 19.9 million net adds. For the year 2009, India added 177 million subs vs. 106 million for China. Combined, one year of growth in these two market is equivalent to the size of the third largest market - the US, to date. Total Wireless customers in India surpassed 575 Million in Feb 2010. India became number two wireless market and the world order is : China, India, US, Russia, Brazil, Indonesia, Japan, Germany, Pakistan and Italy. 3 Members joined the 100M subscription club from India :Bharti , Reliance and Vodafone .

4. India Wireless Market update For India, data ARPU continues to stay below $1.0 as most of the new adds are voice only subscribers and there is continued price pressure in the market. In Q4 2009, BhartiAirtel was leading wireless operator in country with average ARPU of US$ 3.94. India wireless Industry has witnessed heavy competition and operators wireless ARPU has declined at 8 % Q/Q. Reliance and TATA DoCoMo launched GSM services this year and fueled intense competition in Voice traffic.

5. India Internet Market update Total internet customers in country was approximately 14.6 Million by Q4 2009. BSNL/MTNL is leading internet market share in India with over 10.9 Million consumers controlling approximately 75% of the internet market. Number of broadband connection in country was approximately 7.5 Million in Q4,2009. The number of broadband connections is less than 2 % as compared to number of current voice subscribers in India. Observed average ARPU of Mobile broadband service 2-3 times higher than voice asit stands at US$ 12current With new 3G and BWA operators expected to launch services in 2H 2010 , average data ARPU of mobile broadband service is expected to decline 2% Q/Q . TATA , Reliance, BSNL and MTS launched Ev-Do based mobile broadband services in top markets and robust growth in mobile broadband access ( dongles ) were witnessed.

7. Ev-Do (dongle) based subscribers are expected to surpass 2 Million by Dec 2010.

8. 3G spectrum for four operators and launch of 3G services in top markets

9. BWA spectrum for 3 operators and Mobile broadband services in top markets in India.

10. Data growth in expected with new BWA operators deploying WiMAX/LTE.

12. Total Customer base 575 Million wireless customer base by Feb 210. * Tata DoCoMo/Reliance GSM and other regional operators not included

13. Wireless Market Share

14. Average ARPU (2H 2009) Bharti leading ARPU among operators and observed steady decrease of 8% compared to last quarter.

15. Wireless Services , Q4 2009 Revenues

16. Wireless data ARPU of India

17. Wireless Data ARPU : Global Top 10 and Indian Operators

18. Market Share of internet ISPs in India

19. Wireless broadband growth trends

20. Total Internet Subscribers vs Total broadband Subscribers>=256 kbps in India

21. Broadband Traffic and tiered charging trends in India

22. Unlimited QoS based Broadband charging trend in India

23. 3G Networks Availability in 2010: Smartphone Market projected in India The average smartphone user generates 10 times the amount of traffic generated by the average non-smartphone user. Starting at a low base, India will experience the highest increase in smartphone penetration, which will triple over the forecast period, and number of smartphone users, which will grow 5.5 fold by 2014

24. Mobile Internet Time at Home, at Work and On The Move The low wire line penetration in India has resulted in high wireless mobile internet traffic generated from home as compared to other nations. Wireless mobile broadband is expected to fuel growth of broadband in country.

25. Thank-you Email : admin@beyond4g.org Blog : www.beyond4g.org

26. Expected Mobile only data user *Includes smart phone and MIDs