Services

beyond

Voice & Text

Mr. Himanshu Kapania

India VAS Revenue spiraling growth

5.0%

7.6%8.8%

8.1%9.4%

11.1%

12.6%13.4%

14.5%

FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Q1

VAS % to Total Revenues

Drivers of growth

-Voice Based applications like RBT, Mobile Radio

-Text based services like cricket alerts, astrology

-Data services growing from 0 to 4% contributing high growth

SOURCE - Internal

International Benchmarks

5.4 5.3 5.1 4.9

2.95

2.2 2

1.30.9 0.9

38%50%

36.50%31%

51%

35%

60%

29%32%

43%

0%

10%

20%

30%

40%

50%

60%

70%

0

1

2

3

4

5

6

Verizon NTT Docomo

AT&T China Mobile

KDDI Sprint Softbank Tmobile China Unicom

O2 UK

Data Revenue Data as % of total revenue

Game changers in growing Non Voice revenue

-Moving from ABC of Current VAS to DEFG of emerging VAS

-Launch of 3G networks supporting high speed data catering to internet demand on mobile

- Device landscape and application ecosystem -Apple growth story – Inspiration for a whole new user experience- Android – Affordable Smartphone fueling the data explosion

-

AstrologyBollywood

Cricket

DoctorEducation

FunGovernance

Apple fueling data traffic growth for AT&T

6

Apple – Devices explosion with Good connectivity

Great User InterfaceDeveloper Tools

Powerful Connectivity3G

Ref – Morgan Stanley Research

Android phone shipments @ 68% Smart phone Share

20

33 36

51

69

82 83

108

25%33% 36%

47%

58%52%

57%

68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

20

40

60

80

100

120

Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

Android % Android ShareIn Mn

Source - Canalys

(Apple & Google) Driving Market Excitement & Momentum

Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12

25% 33% 36%47%

58% 52% 57%68%17%

16%19%

19%14% 23%

24%16%

23%22%

19%13%

12% 9% 6% 3%

15%15% 14%

12% 10% 8% 7% 5%20% 15% 13% 9% 7% 8% 6% 7%

Android Apple Symbian RIM Others

Challenges in Indian VAS Ecosystem

Compliance with the Regulatory

-TCPR implementation-Policy on subscription activation

Implications:-Technical challenges-Revenue implications

Need for innovative and sticky services for which customers are willing to pay

Collaborate and move ahead jointly….

Billing and Charging Infrastructure

Building High speed data networks

Technical investments for Regulatory compliance

To comply with all Regulatory requirements

Participate in the devices explosion and creation of

content for all devices

Focus on innovation

Operator Partner

High engaging content and applicationsCustomer Care

Emerging services in 3G environment to leapfrog Non voice revenue to 30% by 2016

Music & Movies

Rich Games & applications

E Books & Magazines

Location based services

Vernacular & Hyper local content