EAST AFRICACOM 2014 & BUYER-SELLER MEET INDIA- KENYA Safari Park Hotel, Nairobi, Kenya 9 th September 2014.

EAST AFRICACOM 2014 &

BUYER-SELLER MEET INDIA- KENYA

Safari Park Hotel, Nairobi, Kenya9th September 2014

ICT in India

India

Country• Largest Democracy• 1.2 billion Population

Economy • GDP growth of 5%• Stable Policy Regime

Strength• Large Pool of Young

Talented • Over 50% under 35• Growing Middle Class

Telecom

• 2nd largest Telecom Network

• 943 m Telecom Subscriber

• 915 m Wireless Subscriber

• Overall Teledensity 75.80, Rural Teledensity 44.50 & Urban Teledensity 146.24

Broadband

• 68 million Broadband Subscriber

• 15 m wired broadband and 53m wireless broadband

Internet

• 240 million Internet Subscriber

• 90% access internet through Mobile

Lowest Tariff rate in India

ICT Sector

Voice

e- Commerce

e-Health

e- Education

Mobile Commerce

Mobile Banking

Mobile Health

Mobile Education

Data

100 m User

50 m User

33 m User

Social Media

US$ 16 b (88% YoY Growth)

ICT in India

Telephone Subscribers & Tele-density

2006 2007 2008 2009 2010 2011 2012 2013 20140

100

200

300

400

500

600

700

800

900

1000

0

10

20

30

40

50

60

70

80

90

142.09

205.87

300.49

429.73

621.28

846.32

951.34

898933

12.74

18.22

26.22

36.98

53.46

70.89

78.6673.32

75.23

Subscribers (in Million) Tele-density

(in

mil

lion

)

(in

%)

Broadband Subscribers

Growth PotentialNetwork Expansion

1.2 billion subscribers by 2017

Broadband

175 million Broadband by 2017 Broadband coverage for all secondary and higher secondary

schools, Village Panchayats and all public health care centers Connecting all villages and rural teledensity of at least 70 by 2017 Leveraging USO funds for faster expansion of broadband

Universal Access through support for shared infrastructure for rural cellular mobile

Optical fibre connectivity for broadband upto Village Panchayats

Growth Potential Government of India has approved the setting up of National

Optical Fiber Network (NOFN) to provide high speed broadband connectivity to all the 2,50,000 Gram Panchayats (GPs)

Laying 500K Route Kilometres of Incremental fibre OFC Enable stake holders to provide the basket of services in e-

governance, e-health and e-education etc Estimated cost is about US $4.5 billion, equal investment by

private sector Bharat Broadband Network Limited (BBNL), a Special

Purpose Vehicle (SPV), has been set up to implement this project. Estimated cost of the project is about US $4 billion, equal investment by private sector

Objective to give 250,000 Panchayats of India Broadband Connectivity

8

Population 1.17Billion

Area(Sq. Kms)

3,287,263

States 29

UT 7

Districts 604

Blocks 6,382

Villages 6,38,619

Panchayats 2,50,000

(69% Rural)

FDI Policy in Telecom Sector

Third most attractive Foreign Direct Investment (FDI) location in the world

FDI of 100% (49% under automatic route) for all telecom services

FDI of 100% is permitted through the automatic route in telecom equipment manufacturing

Cumulative FDI Inflow in Telecom SectorCumulative FDI in telecom sector from April 2000 to June 2014 is US $

16,158 million ( US $ 21 million from Kenya)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15(June)0

2000

4000

6000

8000

10000

12000

14000

16000

18000

893110589

12552 1285614163

16158

Series1 Cummulative FDI in US$ Million (Since 2000)

National Telecom Policy 2012 To create an inclusive knowledge society through

proliferation of affordable and high quality broadband services across the nation

Make available 500 MHz additional spectrum

“Broadband on demand” by 2015

600 million broadband connections by 2020

Delivery of various citizen centric services even in remote and rural areas

National Telecom Policy 2012 on Promoting R&D, Manufacturing and Standardization

Promote the ecosystem for design, Research and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand to the extent of 60% and 80% with a minimum value addition of 45% and 65% by the year 2017 and 2020 respectively

Create a corpus to promote indigenous R&D, IPR creation, entrepreneurship, manufacturing, commercialisation and deployment of state-of-the-art telecom products and services

Set up Telecom Standards Development Organisation (TSDO) and industry led standardization body - Telecom Standards Development Society, India (TSDSI)

Policy to Promote Telecom Equipment Manufacturing

No industrial license for manufacturing of telecom equipment

100% Foreign Direct Investment (FDI) through automatic route

Fully repatriable dividend income and capital invested Payments for royalty, lump sum fee for transfer of technology

and payments  for use of trademark/brand name on the automatic route

Promotion of telecom product specific SEZs Modified Special Incentive Package Scheme and Electronics

Manufacturing Cluster Schemes to provide subsidy and incentives upto 25% of investment

Exports of Telecom Equipment

2009-10 2010-11 2011-12 2012-13 2013-140

500

1000

1500

2000

2500

3000

3500

4000

4500

2846

3468

4215

3823

3222

Export of Telecom Equipment (in US$ million)

Exports of Telecom Services

2009-10 2010-11 2011-12 2012-13 0

200

400

600

800

1000

1200

1400

1600

1800

2000

1233

1511

1684

1812

Export of Telecom Services (in US$ Million)

Bilateral Trade with Kenya

Sr. No. \Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

1 EXPORT 1,452 2,182 2,277 3,770 3,882

2 %Growth 50 4 65 3

3 IMPORT 79 124 113 106 127

4 %Growth 57 -8 -6 19

5 TOTAL TRADE 1,531 2,306 2,391 3,876 4,009

6 %Growth 51 4 62 3

7 TRADE BALANCE 1,373 2,058 2,164 3,664 3,755

(Value in US$ Million)

Export of Telecom Equipment to Kenya

Sr. No.

Description/ year

2010-11 2011-12 2012-13 2013-14

1 Telecom Devices

58 51 42 16

2 Telecom Apparatus

4 2 4 4

3Telecom Cables 1 1 1 1

Total 63 54 47 21

(Value in US$ Million)

Telecom Equipment and Services Export Promotion Council (TEPC)

Telecom Equipment and Services Export Promotion Council (TEPC) has been set up by Department of Commerce and Ministry of Communications & IT

Secretary, Telecom is the Chairman and Additional Secretary, Telecom is the Vice Chairman of TEPC

Vision

To make India a globally competitive telecom

manufacturing & services hub for driving telecom export

East AfricaCom 2014 &Buyer Seller Meet

1) Adishwar Tele-Networks

2) Birla Ericsson Optical Ltd.

3) Dyotis Technologies Pvt. Ltd.

4) Frog Cellsat Ltd.

5) Prayaag Technologies

6) Space Telelink Ltd.

7) Star Technologies

8) Telecommunications Consultants India Ltd.

9) Tejas Strategic Technologies Pvt Ltd.

10) Telimart Systems

11) Warm Connect Solutions Pvt. Ltd.

Product Categorization

A)Telecom Manufacturingi. Antennas

ii. Mobile BTS & Fall Arrest System

iii. Repeaters

iv. RF Components

v. Optical Fiber Cables

vi. OFC Blowing Machines

vii. Transmission Equipment

B)Telecom Services

A)Telecom Manufacturing

AntennasTelimart Systems

RepeatersFrog Cellsat Ltd.

RF ComponentsSpace Telelink Ltd.

Optical Fiber CablesBirla Ericsson Optical Ltd.

OFC Blowing Machines

Prayaag Technologies Adishwar Tele-Networks

Transmission Equipment

Tejas Strategic Technologies Pvt. Ltd.

B)Telecom Services

Telecom Services1) Dyotis Technologies Pvt. Ltd.

- Software product design, product development, quality assurance, product support and consulting services

2) Star Technologies

- Fiber Maintenances, OFC Test & Measuring Equipment Repair & Service and IT & Security Solutions

3) Telecommunications Consultants India Ltd.

- Consultancy Services, Managed Services, Turnkey Projects and Trainings

4) Warm Connect Solutions Pvt. Ltd.

- The Warm Dialer uses Vicidial, the world's most versatile dialer. It can switch between power, auto, predictive and broadcast modes. Warm Dialer comes in multiple flavors. Hourly charging with no setup fee, contracts or minimums make it easy to buy.

THANK YOU

Visit uswww.telecomepc.in