WILL NOT BENEFIT THE COMPANIES AND THE

CUSTOMERS

PRICE WAR IN TELECOM SECTOR

GROUP 5B (Div C)

Ekta Bhalja 304Amey Bhonslay 305Megha Harbhajanka 319Ganesh Jalan 324Ruchi Rudra 348Karan Vasani 359

The News Room

Telecom Conference Overview

Indian Telecom Industry – A Snapshot

India is the 2nd largest wireless network in the world

Currently the total number of subscribers are at 600.69 million Wireless segment increased to 563.73 million Wire line segment it dropped to 36.96 million

Tele-density – 51.05%

Addition of 18.76 million – February 2010

The total broadband subscriber base increased to 8.59 million

Market share of the top players in the Industry

Drivers of the Telecom Industry

The Corporate Angle

News Flash- Corporate Angle

Drop in ARPU – Average Revenue Per user

ARPU levels continue to fall at an increasing rate 19.7% industry average ARPU growth in Q1 2009.

ARPU for Indian industry in March 2009 was Rs 220.

Saturated Urban Market Untapped Rural population Constantly falling tariffs

Distribution of ARPUs Vs Penetration across all circles in India

Figures in the above table is in Million

News Flash- Corporate Angle

Threat of new entrants New price plans

Number Portability IssuesSpectrum limitation

Division into cells for frequency re-use.

News Flash- Corporate Angle

3rd Generation – Higher band-width for better data transmission Future in hands of 3G players Government policy to provide license Customers to be attracted to these players

Cartelization/Consolidation

Zonal Division

Customers Angle

News Flash- Customers Angle

Short term :-

Difficulty in switching to new numbers

Cost of changing usage plans

News Flash- Customers Angle

Long term:-

Consolidation Less choice to customers Quality of service doubtful Increase in prices of VAS 3G service provided by limited Companies

Conclusion

Current scenario Not Beneficial to Companies Beneficial to customers

Future- post 3G and Number portability Limited companies Benefit Others Suffer Not so beneficial to customers

Conclusion

There is no one winner however, who stand tall amidst all this

turmoil : The Mobile subscriber

THANK YOU