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Fastest sale of a million mobile phones – 1 Week World’s cheapest mobile handset made in India – US$17.2.
Reliance plans web enabled phone at $12. World’s Most affordable color phone made in India –
US$27.42 Internet Subscribers 9.27 Mn. Internet Mobile 31.30 Mn.
Broadband 2.56 Mn.
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Indian Telecom……
Lowest tariff but highest profitability.
Lowest Call Rates in the World at 2-3 US Cents, Declining
ARPU, even then Rs 275 per month for GSM
India ranks highest in Mobile monthly Minutes of Usages
per subscriber in Asia Pacific Region and second to USA in
the world….500 minutes per month
Innovative approach of doing business at lowest operation
costs.
Innovative value added concepts…missed calls, rural
applications, lowest prepaid charge of 2.5 cents.
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The Future….
Electronic hardware market by 2015 USD 320 billion including production
USD 150 billion and exports USD 21 billion.
Telephone subscribers: 500 million by 2010
PC sales: 25 million; installed base 65 million by 2010
ITES & Software exports: USD 60 billion by 2010
40 million new internet connection; at least 50% broadband by 2010
Nationwide TV broadcast to be digital by 2015 beginning 2010: significant
opportunity for STB consumption & manufacturing
Over USD10 bn investment in E-Governance and National ID Card by 2010
2015: Total expected Market USD 320 bn; Domestic production USD 155 bn
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UNLEASHING INDIA’S INNOVATION
The World Bank report released in October, 2007
says “India can innovate to $5 Trillion GDP”
Present GDP of India is estimated at around 1 $
Trillion (Rs 40 lac crores)
The Indian economy is flourishing, and the demand
for telecommunications services has outpaced the
legacy wired telecommunication infrastructure.
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Innovation in technology…
Communications and broadcasting are converging together.
TV can be used for internet and voice and likewise mobile can be used for anything.
Terrestrial TV, cable TV, CAS and now DTH, further moving to digitalization.
IPTV, Mobile TV going to change lives and the way we think traditionally.
Indian Telecom most innovative….hello tones, Ring back tones, missed call, maximum music download, mobile in hand a fashion not elsewhere in world.
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Innovation in technology…
Today experts talk of open innovation centered around customer services and developed as inter operable platforms.
The path to innovation…. E.g.. Apple computer to Home ,IPOD Digital Music player to I Phone- multimedia hand phone with camera, internet, music player, WIFI
A group of Google, Intel, Dell, HP and Microsoft collectively formed the White Space Coalition and delivered to FCC two WIFI devices that operates in this spectrum without interfering with high-definition TV.
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Fisherman Vegetable Vendor Textile Merchant
Adult Education E-Medication
I am in Queue Matter of Heart
Checking best rates “Mobile” Vendor Rediscovering Life
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Current Market Situation
Declining revenues make it hard to justify the large
capital investments made in the recent past
Market suspicion of large corporations will hinder
the raising of new capital
Service providers are hesitant to invest in new
opportunities that cannot provide immediate
benefits
Data services not delivering on high expectations
Wireless spectral investments have crippled growth
opportunities domestically as well as internationally
Network services and applications limp along as
enterprises curb spending
Regulation continues to bandwidth hindrance to
truly competitive markets and lower cost structures
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Emerging Trends
Wireless revenues continue to increase as long
distance revenues decline and local calling revenues
stagnate
Globalization
Long distance
Wireless
Emergence of the “Total Communications Service
Provider”
Convergence of
Enterprise and telecom networks
Networks and applications
Impact of the Telecom Industry on the US Economy
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How does the Telecom Industry benefit the US Economy
US cellularwireless
Industry…
…increases US GDP, employment and Government
revenues
… improves the productivity of US business through
use of…
…wireless voice services
…wireless data services
Demand sideSupply side
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Impact of Telecom Services on the US Economy
Telecom Services will provide a
major stimulus to the US economy
over the next 10 years of more than
$617 billions in productivity savings
from data and additional $750
billion consumer surplus from voice
use and $450 billion GDP
contribution from a Telecom
industry.
All amounts in billions of dollars
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Annual Productivity Benefit from Data and Voice Application are Growing to more than $80 billion
In 2005 data and voice services only
contributed $8 billion in productivity
benefits to the US economy – roughly the
size of Bahrain.
By 2015 these benefits have grown to
more than $80 billion per year, which is
approximately as big as the economy of
the Philippines.
All amounts in billions of dollars
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Components of Future Economic Benefit
The two major components that will drive
the future economic benefit are:
More Efficient Management and
Documentation
Heath Care Efficiency Enhancements
Followed by still sizable benefits in:
Field Service Automation
Inventory Loss
Reduction
Field Sales
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A consumer surplus of $157 billion – almost all from wireless voice
Consumer surplus measures how much US
businesses and consumers are prepared to
pay in excess of what they pay
Consumer surplus from use of wireless
services was running at $157 billion at end
2004
Almost all of this surplus is associated with
voice
We expect this surplus to grow:
To $260 bn by 2010
To over $300 bn by 2015
More details on supply side effects
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GDP Contribution of Cellular services in Comparison with other
Industries
0
20
40
60
80
100
120
140
Cellularwirelessservice
Computersystemsdesign
Publishing(incl software)
Motion pictureand soundrecording
Agriculture Motor vehiclemanufacture
Petroleumand coal
production
Con
tibut
ion
to G
DP
($b
n)
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3.6 million US Jobs Depend on the Telecom Industry
0 500 1000 1500 2000 2500 3000 3500 4000
US jobs dependent on the US wireless industry (000)
Direct employment
Support servicesemployment
Indirect employment
Induced employment
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$63 billion in Government Revenue are Generated by the Telecom Industry