Regd No.1226111103 A.

Pratheek reddy Section :A INDIAN TELECOMMUNICATION IN ABROAD Summary India, like many other countries of the world, have adopted a gradual approach to telecom sector reform through selective privatization and managed competition in different segments of the telecom market.The corresponding growth rates to reach China and Japans levels are 23.06 per cent and 17.63 per cent respectively.many private players took successful opportunity in expansion of telecom industry in abroad. Airtel Africa started in Africa and some other country in African vicinity has its upward trend with revenues of $924 million, contributing to a total net income of $314 million for Bharti Airtel, which is an improvement of 7.5 percent from its last quarter,Bharti Airtel bidding for South African telecommunications major, MTN, which would complete the former's biggest foreign acquisition deal, adding to its existing African operations, also spells brighter hopes for airtel's Africa customers, who are still facing hurdles with the new network. INTRODUCTION: India introduced private competition in value-added services in 1992 followed by opening up of cellular and basic services for local area to private competition.The Telecom Regulatory Authority of India (TRAI) was constituted in 1997 as an independent regulator in this sector. Two state-owned public sector incumbents with a large existing subscriber base dominate the fixed line service. As on December 31, 2001, the two Public Sector Enterprises (PSEs), BSNL and MTNL owned 34.73 million Direct Exchange Lines (DELs) against 0.45 million privately owned DELs. Expansion of Bharti Airtel in international market: Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asias leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. The company has an aggregate of around 137 million customers across its operations.Bharti Airtel has ranked among sixth best performing technology companies. Bharti Airtel is structured as four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh.India Airtel is the largest telecom service provider in India with 220.9 million subscribers at the end of March 2011. Bharti Airtel in international market and its market share:

Countries Bangladesh

Percentage share 3.2 million customers

Description of share According to December 31, 2010

Sri Lanka Burkina Faso Chad Garbon Ghana Kenya Madagascar

1.8 million customers 1.43 million customers

Jan 12,2009 50% market share 69%

829000 customers 1.79 millon customers 4 million customers 1.4 million customers

61% At the end of 2010 2nd largest share 39% market share,2nd largest telecom service provider

Malawi Niger Nigeria Congo Seychelles Sierra Leone 15.8 million customers

72% market share 68% market share No.3 player in country 55% market share 55% market share Leading operator mobile service

Tanzania Uganda Zambia

385 market share 38% market share 70% market share

Bharti airtel collaboration Zain Africa BV: Bharti Airtel is set to become worlds fifth largest wireless company with operations across 18 countries. Bhartis total customer base to be around 179 million and includes Zain Africas mobile operations in 15 countries with over 42million customers. Bhartis telecom footprint to cover 1.8 billion people across Asia and Africa second largest among telcos. Bharti Airtel Limited (Bharti), Asias leading telecommunications service provider made agreement with Zain Group (Zain) to acquire Zain Africa BV based on an enterprise valuation of USD 10.7 billion.Under the agreement, Bharti will acquire Zains African mobile

services operations in 15 countries with a total customer base of over 42 million. Zain is the market leader in ten of these countries and ranks second in four countries. With this acquisition, Bharti Airtel will be the worlds fifth largest wireless company with operations across 18 countries. Bharti groups global telecom footprint will expand to 21 countries along with the operations in Seychelles, Jersey, and Guernsey. Change in growth in Africa and increase in revenue of airtel: Zain Africa BV has mobile operations in the following 15 countries - Burkina Faso, Chad, congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia. The total population of these 15 countries stands at over 450 million with telecom penetration of approximately 32%.With this acquisition Bhartis total customer base will increase to around 179 million in 18 countries. Bharti launched mobile services in India in 1995, Sri Lanka in 2009 and acquired Warid in Bangladesh in January 2010. Bharti Airtel, which registered a 32.6 percent decrease in net profit in fiscal 2010-11 at $1,354 million from $1,989 million in the previous fiscal, has made up for it with its 51.3 percent increase in consolidated revenues, providing a total revenue of Rs 59,467 crore for the year ended March 31, 2011.Africa continued its upward trend with revenues of $924 million, contributing to a total net income of $314 million for Q4 2011 for Bharti Airtel, which is an improvement of 7.5 percent from its last quarter, which stood at $289 million.Standard Chartered Bank is the Lead Advisor to Bharti on this transaction. Barclays Capital is the Joint Lead Advisor and SBI Group is the Lead Onshore Advisor. Global Investment House KSCC is the Regional Advisor to Bharti on this transaction. Comparison: Airtels India & Africa business: Particulars Mobile Penetration India 70.9% Africa 45% 3 to 5

Average Competitors 10 to 12 Business Model Minutes of Usage ARPU (US$) ARPM (US cents)

High usage, low pricing Low usage, high pricing 449 ~ $ 4.3 ~1 cent 115 ~ $ 7.2 6.2 cents

AIRTEL IN NIGERIA : The South African-owned MTN Nigeria is one of the foremost actors in the Nigerian telecoms market. MTN Nigeria is regarded as a pacesetter in the market and provides a compelling success story. with the exception of Globacom, other GSM and licensed providers in the Nigerian telecoms market are owned by non-Nigerians. Asian players in the Nigerian telecoms sector come in the form of Chinese companies providing mobile phones and technological equipment to the major telecoms operators, and recently, the entrance of Indian owned Bharti Airtel into the African market. Companies such as Airtel and multinational conglomerate TATA, both of which operate in Nigeria, invest in African markets on their own volition and do not seem to be supported by the Indian Government. These companies wield considerable influence in the Nigerian market and Nigeria is the third biggest importer of Indian goods and services on the African continent. Companies such as Tech Mahindra, an information technology outsourcing company now provides customer care services in several African countries.Bharti Airtel also engages in other developmental projects as part of their strategy to become a household brand in Nigeria. Indo-bangla : The Indian Commerce and Industry minister Anada Sharma, accompanied by a high-profile business delegation to Bangladesh, was considered by many as important for some obvious reasons. This has provided a fresh impetus to closer and mutually beneficial economic relations between Bangladesh and India. The outcome is positive in some areas while providing a signal about future cooperation in other related areas. The Indian delegation indicated the possibility of investment to the tune of US$ 3.5 billion in bangladesh's telecom, food processing, pharmaceuticals and manufacturing sectors by the Indian companies. The Indian minister hinted at materialising such investments in a few years' time. Indian telecom giant Airtel has already invested $300 million in Bangladesh and is expected to invest more Vodafone in talks over move into Bangladesh mobile market: Vodafone is in talks to buy a 30pc stake in Bangladesh's second-largest mobile phone network, AKTEL, for around $300m (152m).Vodafone has been given initial reassurances from the Bangladeshi telecoms regulator that it would be allowed to buy the 30pc stake from AK Khan, a

privately owned textiles-to-telecoms company.The remaining 70pc of AKTEL is owned by Telekom Malaysia International.The talks to buy out AK Khan are thought to be one of a number of options Vodafone is considering to move into Bangladesh, the fifth-largest mobile market in Asia.Vodafone spent 5.7bn last year buying a majority stake in Hutchison Essar, the third network in neighbouring India. As in India, less than one in four people in Bangladesh owns a mobile phone. AKTEL has 7m of the 34.4m mobile customers in a country of 152m people. The expected it to go from 22.5pc penetration to 50pc very quickly.With six mobile operators already competing in Bangladesh, Vodafone is unlikely to be granted a new licence, and Mr Darby has made clear that this is not his preferred way of entering the market. Indo-EU Trade in Telecommunications Services The growing Indian telecom market offers significant investment opportunities for foreign investors and the Indo-EU TIA may have trade complementarities in the sector which can be leveraged under the agreement.The imminent expansion of mobile networks will create significant opportunities for service provision as well as for network deployment and in this context the Indian market could open a host of prospects for European players. There are, barriers in the Indian market and the expectation from the TIA would be to alleviate the restrictions to provide increased market access and to sustain growth of this sector. For Indian companies, opportunities in the EU will in all likelihood be limited to the less advanced countries.The enlargement of the EU has greatly increased the number of operators in Europe.Within the EU 15, there was a 17% increase in network operators and 3% increase in voice operators in 2005. In the 10 new Member States, where the liberalization process started later than in the EU 15, competition remains at an early stage and is largely concentrated in the international calls market. This can be the result of new entrants focusing their business on specific segments in the market, and thus having a limited impact on the overall level of competition.While in 2005 only 7 countries had five or more major competing players (including the incumbent), in 2006 there were 10 such countries. Capital expenditure in mobile is expected to pick up again in 2009 with the onset of a new investment cycle in response to likely future capacity constraints in mobile broadband.with many EU markets reaching saturation levels for existing services, firms increasingly turned their attention to emerging markets such as India, South Africa or Latin America in evaluating investment propositions.49 EU 2008. 38 Growth in Europes consumer online content market has enormous potential on the back of developing mobile and Internet take-up. For example, in the US, Reliance Infocomm and Bharti Televentures

have demonstrated intent of providing data services.It must however be understood that in the US there is a large community of interest (CoI) for Indian service providers. Indian Telecommunications Companies in the US: Name of Company Reliance Infocomm 2003 Wholly-owned subsidiary: Reliance Communication Inc Has obtained the Year of entry Mode of entry Area of operation

International Common Carrier 214 License from FCC. However, yet to start any type of major operation in the u.s

Bharti TeleVentures

2002

No commercial presence in the U.S. They have strategic alliances with 30-40 US carriers for termination of calls.

Exchange

of

voice

and data. Has obtained International Common Carrier 214 License from FCC. Provides services such as voice calls, calling cards, and Internet services. the

Although there are EU companies manufacturing telecommunication equipment and providing network services in India, they have not entered in a big way in provision of telecommunications services. There is a widely-held belief that India is a growing telecommunications market and will offer significant opportunities for FDI on its own and also due to its complementarity with sectors uch as software and business process outsourcing.