Telecom Data Services

Summary

Increasing focus on data services

as a result of pressure on voice
Annual Review May 2010
revenues and the roll out of 3G
services by private operators to be
the trigger points fuelling growth in
the Telecom Data Services sector.

By 2014-15, CRISIL Research

expects internet subscriber base to
reach 138-140 million, largely
driven by the broadband segment
Contents
accounting for 133-135 million
subscribers. Part A: 3G to be the game changer for VAS and Broadband
Executive summary A-1
Roll out of 3G services by private Internet services demand forecast A-3
Mobile value added services A-15
operators to enable them to offer a
Enterprise Data Services A-27
wider range of advanced data
services. CRISIL Research projects Part B: State of the industry
mobile VAS revenues to grow at 21 Internet scenario B-1
Government policies B-7
per cent CAGR and reach Rs 135
Introduction to broadband technologies B-29
billion by 2014-15. Introduction to leased circuits B-43
Player profiles B-49
Size of the EDS market to grow at
11 per cent CAGR and touch Rs 97
Part C: Industry statistics
Industry statistics C-1
billion by 2014-15. Pricing decline
to lead to growth becoming broad
based as SME’s and SOHO’s
would migrate to enterprise
services.

This document has been prepared by Shishir Srivastava, Jayashri Dasgupta and Manoj Mohta (Head of Research).
For any queries please get in touch with our client servicing desk. (clientservicing@crisil.com. Ph -022-33423561)
 Opinion
Executive summary A-1
1.0 Internet services demand forecast A-3
- Overview A-3
- Dial-up and wireline broadband A-4
- Dial-up segment to witness de-growth in net additions A-4
- Broadband demand to accelerate A-5
- Bottlenecks in wireline broadband growth A-8
- PC demand forecast A-11
- Summary of demand forecast A-12
2.0 Mobile value added services A-15
- Mobile VAS market to see buoyant growth over 5 years A-15
- Hindi film content and cricket remain key attractions A-16
- Launch of 3G services to give a boost to the sector A-16
- Differentiation in services in urban and rural markets A-17
- Emerging services A-18
- Challenges in the VAS space A-20
- Primer on VAS A-21
3.0 Enterprise Data Services A-27
- EDS to witness healthy growth over the next 5 years A-27
- Demand drivers A-28
- Sector-wise deployment of enterprise services A-29
- Enterprise data services: Revenue forecast A-30

Boxes

1.0 Internet services demand forecast

01 Government incentive for broadband proliferation in rural areas A-9
02 Methodology for Internet and broadband subscriber base forecast A-10

Charts

1.0 Internet services demand forecast

01 Total internet subscriber base A-3
02 Internet subscriber forecast methodology A-10
03 PC forecast methodology A-12

Continued…

CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW A-i

…continued

Charts

2.0 Mobile value added services

01 Demand drivers for VAS A-16
02 Break-up of non-voice revenues of mobile operators A-17
03 Components of mobile commerce A-19
04 Challenges in the VAS Space A-21
05 VAS environment A-22
06 VAS components A-24
07 Content delivery platforms A-25

3.0 Enterprise Data Services

01 Snapshot- Enterprise data service segments A-28
02 Sector-wise and product-wise usage of enterprise data services A-29
03 VPN based corporate network A-31
04 Key variables assessed for demand forecasting A-32
05 WAN with traditional point-to-point leased lines A-34

Figures

1.0 Internet services demand forecast

01 Internet subscribers: Broadband and dial-up A-4
02 Technology-wise break-up of Internet subscribers A-5
03 Customer profile of broadband customers in India A-6
04 3G subscriber base A-7
05 Data card subscriber base A-7
06 Broadband subscribers market share A-8
07 Contention ratio for different countries A-9
08 Net additions in notebooks and desktops A-11

2.0 Mobile value added services

01 Break-up of non-voice revenues (Rs 51.3 billion) A-15
02 Break-up of VAS revenues A-17
03 Data card subscribers A-18

3.0 Enterprise Data Services

01 Break-up between different segments A-28
02 Number of VSAT subscribers A-33
03 VSAT market share A-33
04 DLC connections A-35

continued…

A-ii CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW

…continued

Tables

1.0 Internet services demand forecast

01 Subscription plans for broadband and dial-up services A-5
02 Dial-up – Subscriber base A-12
03 Broadband – Subscriber base A-13
04 Desktops and Notebooks – Installed base A-13

2.0 Mobile value added services

01 Revenue sharing arrangement A-22
02 Players in the valve chain A-23

3.0 Enterprise Data Services

01 Enterprise data services market size A-27

CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW A-iii

 State of the industry
Sections

1.0 Internet scenario B-1

- Internet subscriber base in India B-1
2.0 Government policies B-7
- Internet policy B-7
- Broadband policy B-10
- Unbundling the local loop B-14
- National Internet Exchange of India B-18
- International private leased circuit (IPLC) policy B-21
- Domestic Leased Circuit (DLC) policy B-22
3.0 Introduction to broadband technologies B-29
- Digital subscriber line B-29
- Cable modem B-31
- Wireless broadband B-32
- Wireless fidelity (Wi-Fi) B-34
- Worldwide interoperability for microwave access (Wi-Max) B-34
- Broadband over 3G networks B-40
- Wi-Bro B-40
- Ultra wide band B-41
- Integrated services digital network (ISDN) B-41
- Fibre optics B-41
- Satellite broadband B-41
- Broadband over power line B-42
4.0 Introduction to leased circuits B-43
- Domestic leased circuit (DLC) B-43
- International private leased circuit (IPLC) B-44
- Virtual private network (VPN) B-44
- Very small aperture terminal (VSAT) B-46
5.0 Player profiles B-49
- Bharti Airtel Ltd B-49
- BSNL B-51
- Reliance Communications (RCom) B-51
- Mahanagar Telephone Nigam Ltd (MTNL) B-53
- Satyam Infoway Ltd (Sify) B-55
- Tata Communications B-56
- OnMobile Global Ltd B-57
- Hungama Mobile B-57
- Mauj B-57

Continued…

CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW B-i

…continued

Charts

3.0 Introduction to broadband technologies

01 Simple overview of ADSL in the phone network B-30
02 ADSL - Current typical network B-30
03 Cable modem network B-32
04 WiMax B-35
05 Duplexing techniques B-36
06 OFDM B-36
07 Evolution of Wi-Max B-37
08 WiMax in an end-to-end network B-40

4.0 Introduction to leased circuits

01 Domestic leased circuit B-43
02 International private leased circuit B-44
03 Typical VPN architecture B-45
04 VPN network B-47

Figures

1.0 Internet scenario

01 Internet – Subscriber net additions and penetration B-1
02 Personal computers – Demand and penetration B-3
03 ISP – Subscriber base B-5

5.0 Player profiles

01 Bharti Airtel – Equity holding information as on December 2009 B-50
02 Bharti Airtel – Subscriber base of Internet services B-50
03 Bharti Airtel – Broadband subscriber base B-50
04 BSNL – Subscriber base of internet services B-51
05 RCom – Shareholding patterns as on Dec 2009 B-52
06 RCom – Subscriber base in Internet services B-53
07 RCom – Broadband access line B-53
08 MTNL – Outstanding equity shares as of December 31, 2009 B-54
09 MTNL – Subscriber base of internet services B-54
10 MTNL – Broadband subscriber base B-55
11 Sify – Subscriber base of internet services B-55
13 Tata Communications – Equity holding information as on December 2009 B-56
14 Tata Communications – Subscriber base of Internet services B-56

Continued…

B-ii CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW

…continued

Tables

1.0 Internet scenario

01 Internet (narrowband+broadband) – Subscriber base, net additions and
penetration B-2
02 Personal computers – Installed base and demand B-3

2.0 Government policies

01 Licenses for providing internet services in India B-7
02 QoS parameters B-12
03 Tariff for IPLC B-21
04 Service area-wise BWA Spectrum to be auctioned B-26

3.0 Introduction to broadband technologies

01 Digital service line technology option B-31
02 Comparison of wireless technologies B-33
03 Range of Wi-Fi in different environment B-34
04 Comparing Mobile WiMax to 1xEVDO and HSPA B-38

5.0 Player profiles

01 Telecom players – A snapshot B-49

CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW B-iii

 Industry statistics
Tables

01 ISP- Subscriber base and market share C-1

02 Internet subscriber base C-2
03 Broadband subscriber base C-3
04 Broadband: Volume-based plans for household subscribers C-4
05 Duties on key hardware items C-4
06 Internet subscriber base in select countries C-5
07 Internet users and users-to-subscribers ratio in select countries C-5
08 Internet users per 100 inhabitants in select countries C-6
09 Broadband subscriber base in select countries C-7
10 Broadband subscribers as a percentage of total Internet subscribers
in select countries C-7
11 Broadband services - population penetration in select countries C-8
12 Relationship between population penetration of broadband and GDP
per capita in select countries C-8
13 Technology-wise broadband penetration per 100 inhabitants in
select countries C-9
14 DSL internet subscribers C-10
15 Percentage of homes with Internet in select countries C-10
16 Number of PCs in select countries C-11
17 PCs - population penetration in select countries C-11
18 Internet subscribers as a percentage of number of PCs in select countries C-12
19 Percentage of homes with PCs in select countries C-12
20 Leased line connectivity C-13
21 Tata Communications leased line tariff C-13
22 BSNL leased line tariff C-14
23 Reliance leased line tariff C-15
24 MTNL leased line tariff C-16
25 Airtel leased line tariff C-17
26 Price of broadband wireless access (BWA) spectrum - international market C-18
27 Assignments of spectrum in the 3.3-3.4 GHz band C-19

CRISIL RESEARCH TELECOM DATA SERVICES ANNUAL REVIEW C-i