INDIA- An Overview of Telecom Industry

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INDIA- An Overview of Telecom Industry

• By Terry Sandhu
• Vice President
• Business Development
• HCC Canada
• (www.hcccanada.ca)
• (Your local Partner for India Market)
• JULY 2003

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HCC Background...

• HCC Canada is co-founded in Canada in 1994 as
  Hi-Tech Communications Consortium (HCC) by Terry
  Sandhu.
• HCC Canada (India) Ltd., registered in 2002 in
  India, 100 owned subsidiary, located in New
  Delhi, India.
• HCC Canada operates in India through its own
  subsidiary and a network of 15 ASSOCIATES located
  at Bangalore, Bombay, Calcutta Ahemdabad and
  other major cities.

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Founders Background

• An Electronic Engineer by Profession.
• Graduated from University of Delhi in 1972.
• FELLOW of Institution of Electronic Telecom
  Engineers (IETE) , India.
• Served for 18 years at senior positions with
  Crown Corporations, Government of India.
• Served with Alcatel, France as Consultant from
  1992-1993 to induct SONET/SDH technology into
  India.
• Migrated to Canada in 1994 and since then working
  as Consultant assisting North American companies
  to establish in India .

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INDIA- Political scene

• 1950-1975 CONGRESS Regime
• 1976-1979 BJP (Opposition)
• 1980-1984 CONGRESS Regime
• 1985-1989 CONGRESS Regime
• 1990-1998 CONGRESS Regime
• 1999- onward BJP (Opposition)

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INDIA-Business Culture

• Worlds largest Democracy
• Indian Constitution in English-British Pattern.
• Main Business Language-English
• Worlds largest English speaking cheap technical
  manpower.
• 300million rich median class with high purchasing
  power.

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INDIA- Closed Economy Opens-Contd

• 1950-1975 49 Foreign Investment/Equity allowed
  in India
• 1976-1979 Cap on Foreign Investment /equity
  forcing foreign companies to leave India
  ( Coca-Cola/IBM etc)
• 1980-1984 Manufacturing of Telecom equipments
  opened to the Private Sector
• 1985 -1990 Telecom recognized as important
  Infrastructure industry to fuel economy growth as
  power, Oil Gas, Rail Roads, Ports etc..

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INDIA- Closed Economy Opens

• 1991-1994 De-regulation of Telecom sector to end
  Monopoly of PTT/Reduction of import duty from 80
  to 35(5 on handsets/0 on software)
• 1995-2000 Licenses issued to Private operators
  in Basic telephony/ Cellular phones /Paging/VSAT/
  TV Uplinking /CATV industry /ISPs/ TRAI set
  up/NTP1999 announced.
• 2001- onward Dis-investment continues in major
  public sector allowing foreign companies to
  invest in India(100 equity as ISP)

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INDIA- Telecom Licenses

• Basic Telephone 28
• Cellular Mobile 35
• Radio Paging 97
• Internet Service Providers 144
• VSAT operators 10
• GMPCS 2
• DTH Service2

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INDIA- Telecom Subscribers scene

• Telephone Connections40 million
• TV house holds 60 million
• CATV subscribers 40 million
• Cell Phones subscribers12 million
• Internet Connections2.5 million
• VSAT Terminals70,000

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INDIA- Telecom Broadcast Trade Shows

• Communications India March
• CATV/Broadcast India November, Bombay
• Engineering Trade Fair November, Delhi

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INDIA- Foreign Companies in Communication
India Trade show-March 2003

• CHINA 30
• USA- 29
• UK- 17
• France -14
• ISRAEL 6
• Korea/Germany- 5 each
• Canada-2

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INDIA- Good News for Foreign Companies

• Equity allowed up to 49 .
• 100 Profits can be taken out of India.
• Dropping customs duty (Max. 5 to 35)-Slogan
  import chips not potato chips
• Telecom regulation in place(TRAI).
• TAX holiday for 5 years for setting up industry
  in rural area.

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INDIA- Some mixed views of CEOs in Telecom
Sector

• Indian Telecom sector is at a crossroads and
  faces an uncertain future.
• Current licensees who badly miscalculated the
  Indian market and committed themselves to huge
  license fees, which they are unable to pay
• Key policy issues are still unresolved and still
  limits technology options
• Financing is a challenge
• Despite uncertainty, telecom industries are
  growing, changing and converging driven by the
  internet.
• There are new technologies, new players and even
  some new policies

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INDIA- Telecom

• Thanks you
• Terry Sandhu
• 604-377 7698
• sales_at_hcccanada.ca
• www.hcccanada.ca