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  1. India Telecoms, Mobile and Broadband - Statistics and Analyses 26th Edition Researcher: Sébastien de Rosbo Published: 27 July 2020 Copyright 2020 Paul Budde Communication Pty Ltd GPO BOX 3327 Sydney NSW 2001 AUSTRALIA Tel 02 8076 7665 Email: pbc@budde.com.au www.budde.com.au Int: +61 2 8076 7665 EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  2. India - Telecoms, Mobile and Broadband - Statistics and Analyses About BuddeComm BuddeComm is an independent research and consultancy company, focusing on the telecommunications market and its role within the digital economy. The research offered by BuddeComm’s worldwide network of senior analysts encompasses over 200 countries, 500 companies and 200 discrete technologies and applications. We specialise in strategic planning for government and business innovation and transformation around the converging markets relating to building smart cities and smart communities. Areas such as e-health, e-education, smart grids, e-media and e-entertainment are affecting organisations and communities across the world and so are of particular interest. Disclaimer The reader accepts all risks and responsibility for losses, damages, costs and other consequences resulting directly or indirectly from using this report or from reliance on any information, opinions, estimates and forecasts contained herein. The information contained herein has been obtained from sources believed to be reliable. Paul Budde Communication Pty Ltd disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in the information, opinions, estimates and forecasts contained herein. The materials in this report are for informational purposes only. Prior to making any investment decision, it is recommended that the reader consult directly with a qualified investment advisor. Data in this report is the latest available at the time of preparation and may not be for the current year. © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  3. India - Telecoms, Mobile and Broadband - Statistics and Analyses Forecasts This report includes forecasts for market growth. Contributing factors and market dynamics impacting growth within this period are described in the text accompanying the forecast tables and charts. Sources used as inputs for deriving both estimates (denoted as (e)) and forecasts (denoted as (f)) include telecommunication sector statistics from a range of national and international sources. Unless otherwise stated, statistics for GDP, revenue, etc are shown in US$, in order to maintain consistency within and between markets. Internet Website This report is one of over 1,000 reports we publish on our website – www.budde.com.au. These reports, categorised by country, region, topic or company, provide current information and independent, analyses by BuddeComm’s experienced team of Senior Analysts. Glossary of Abbreviations BuddeComm provides a complimentary copy of our Glossary of Abbreviations. See Glossary of Abbreviations document on www.budde.com.au. Copyright Paul Budde Communication Pty Ltd reports are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge when ordering that Paul Budde Communication Pty Ltd reports are for our customers’ internal use and not for general publication or disclosure to third parties. No part of this report may be given, lent, resold or disclosed to non-customers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise without the permission of the publisher. For information regarding permission, please email pbc@budde.com.au. © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  4. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Table of Contents Executive Summary 1 Key statistics 4 Regional Asian Market Comparison 6 COVID-19 and its impact on the telecom sector 13 ■ Economic considerations and responses 14 ■ Mobile devices 16 ■ Subscribers 17 ■ Infrastructure 18 Telecommunications market 19 ■ Market analysis 19 Regulatory environment 21 ■ Historical overview 21 ■ Regulatory authorities 21 Ministry for Communications (MoC) 21 Department of Telecommunications (DoT) 22 Telecom Commission 22 Telecom Regulatory Authority of India (TRAI) 23 Telecom Dispute Settlement & Appellate Tribunal (TDSAT) 24 Communications Commission of India (CCI) 24 Ministry of Electronics and Information Technology (MeitY) 25 ■ Fixed-line developments 25 Licensing circles 25 Licensing – VNOs 26 Net Neutrality 26 Fibre access 26 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  5. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Interconnect 27 ■ Mobile network developments 27 Spectrum 27 Mobile subscriber verification 32 Interconnection 32 Roaming 32 Mobile Number Portability (MNP) 33 Mobile market 35 Geographic segments 36 Rural expansion 36 ■ Mobile statistics 37 ■ Mobile infrastructure 43 5G 43 4G/LTE 44 CDMA 46 Other infrastructure developments 49 Mobile broadband 50 ■ Major mobile operators 51 Bharat Sanchar Nigam (BSNL) 53 Bharti Airtel 55 Vodafone Idea 59 Mahanagar Telephone Nigam (MTNL) 67 Quadrant 68 Reliance Communications (RCOM) 69 Aircel 71 Reliance Jio Infocomm (Jio) 72 Tata Teleservices 74 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  6. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Reach Mobile 76 MVNOs 76 ■ Mobile content and applications 77 M-Commerce 77 Fixed-line broadband market 78 ■ Market analysis 78 ■ Broadband statistics 79 National Broadband Plan 83 ■ Fixed broadband ISPs 84 Bharat Sanchar Nigam (BSNL) 84 Bharti Airtel 85 Hughes Telecom 85 Mahanagar Telephone Nigam (MTNL) 86 Atria Convergence Technologies (ACT) 86 Vodafone Idea 86 Reliance Jio 87 ■ Hybrid Fibre Coax (HFC) networks 87 ■ Digital Subscriber Line (DSL) networks 88 ■ Fibre-to-the-Premises (FttP) networks 89 ■ Other fixed broadband services 90 WiMAX 90 Wi-Fi 90 Project Loon 90 Digital economy 92 ■ Overview 92 ■ e-Payments 92 ■ e-Education 94 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  7. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents ■ Smart meters 94 Fixed network operators 95 ■ BSNL 96 ■ Bharti Airtel 98 ■ MTNL 100 ■ Quadrant 102 ■ Reliance Communications 103 SSTL (Sistema) 105 ■ TATA Teleservices 105 ■ Videocon 107 ■ Vodafone Idea 107 Telecommunications infrastructure 110 ■ Overview of the national telecom network 110 ■ Rural and regional networks 112 Universal Service Obligation Fund (USOF) 112 Public Call Offices (PCOs) 113 ■ BharatNet / National Optical Fibre Network (NOFN) 114 ■ Next Generation Networks (NGN) 115 ■ International infrastructure 115 Submarine cable networks 117 Satellite networks 121 ■ Data Centres 123 Major providers 124 ■ Smart infrastructure 125 IoT 125 Smart cities 125 Artificial Intelligence 126 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  8. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Appendix – Historic data 127 Glossary of abbreviations 143 Related reports 154 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  9. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents List of Tables Table 1 – Top Level Country Statistics and Telco Authorities – India – 2020 (e) 4 Table 2 – Cumulative mobile number portings – 2012 - 2020 33 Table 3 – Growth in the number of mobile subscribers and penetration – 2010 – 2025 38 Table 4 – Growth in the number of mobile subscribers in urban and rural areas – 2011 – 2020 39 Table 5 – Change in mobile penetration in urban and rural areas – 2010 – 2020 40 Table 6 – Decline in mobile ARPU (contract, prepaid, blended) – 2017 – 2019 41 Table 7 – Change in mobile ARPU (GSM and CDMA) – 2014 – 2018 42 Table 8 – Growth in the number of mobile broadband subscribers, penetration – 2011 - 2025 50 Table 9 – Change in the mobile market share of subscribers (major MNOs) – 2010 - 2020 52 Table 10 – Growth in the number of BSNL’s mobile subscribers – 2010 – 2020 54 Table 11 – Growth in the number of Bharti Airtel’s mobile subscribers – 2010 – 2020 56 Table 12 – Change in Bharti Airtel’s mobile ARPU – 2009 – 2020 58 Table 13 – Growth in the number of Vodafone Idea’s mobile subscribers – 2010 – 2020 63 Table 14 – Change in Vodafone Idea mobile ARPU – 2007 – 2011; 2013 – 2020 65 Table 15 – Change in the number of MTNL’s mobile subscribers – 2010 – 2020 67 Table 16 – Change in the number of RCOM’s mobile subscribers – 2010 – 2020 70 Table 17 – Growth in the number of Reliance Jio’s mobile subscribers – 2016 – 2020 73 Table 18 – Reliance mobile ARPU – 2017 - 2019 73 Table 19 – Decline in the number of Tata Teleservices’ mobile subscribers – 2010 – 2018 76 Table 20 – Growth in the number of fixed broadband subscribers and penetration – 2010 – 2025 80 Table 21 – Development of internet penetration – 2008 – 2020 82 Table 22 – Growth in the number of cable modem subscribers – 2010 – 2017 88 Table 23 – Change in the number of DSL subscribers – 2010 – 2017 88 Table 24 – Growth in the number of fibre broadband subscribers – 2010 – 2017 89 Table 25 – Fixed-line subscribers (millions) by operator – 2012 – 2014; 2016 – 2020 95 Table 26 – Market share of fixed-lines in service by main provider – 2013 - 2020 96 Table 27 – Decline in the number of BSNL’s fixed-line subscribers – 2012 – 2020 97 Table 28 – Growth in the number of Bharti Airtel’s fixed-line subscribers – 2008 – 2020 99 Table 29 – Decline in the number of MTNL’s fixed-line subscribers – 2010 – 2020 101 Table 30 – Change in the number of Quadrant’s fixed-line subscribers – 2010 – 2020 102 Table 31 – Decline in the number of Reliance’s fixed-line subscribers – 2010 - 2020 104 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  10. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Table 32 – Growth in the number of Tata’s fixed-line subscribers – 2010 – 2020 106 Table 33 – Growth in the number of Vodafone Idea’s fixed-line subscribers – 2011 – 2020 108 Table 34 – Development of Vodafone Idea’s financial data – 2018 – 2020 109 Table 35 – Change in the number of fixed-line subscribers and penetration – 2010 – 2025 111 Table 36 – Decline in the number of PCOs in operation – 2008 – 2019 113 Table 37 –- Growth in international internet bandwidth – 2010 – 2018 116 Table 38 – Historic - Mobile subscribers (GSM and CDMA) – 2002 – 2018 127 Table 39 – Historic - Vodafone Idea - mobile subscribers – 2002 – 2009 128 Table 40 – Historic - Vodafone - mobile ARPU – 2008 – 2018 128 Table 41 – Historic - Vodafone mobile subscribers – 2002 – 2018 129 Table 42 – Historic - Reliance mobile subscribers – 2002 – 2009 130 Table 43 – Historic - MTNL mobile subscribers – 2002 – 2009 130 Table 44 – Historic - Bharti Airtel mobile subscribers – 2002 – 2009 131 Table 45 – Historic - Tata Teleservices mobile subscribers – 2002 – 2009 131 Table 46 – Historic - BSNL mobile subscribers – 2002 – 2009 132 Table 47 – Historic - MTNL mobile subscribers – 2002 – 2009 132 Table 48 – Historic - Vodafone mobile subscribers – 2010 – 2017 133 Table 49 – Bharti Airtel mobile ARPU – 2005 – 2009 133 Table 50 – Historic - Quadrant mobile subscribers – 2012 – 2017 133 Table 51 – Historic - Sistema mobile subscribers – 2008 – 2017 134 Table 52 – Historic - Telenor mobile subscribers – 2009 - 2017 134 Table 53 – Historic - Aircel mobile subscribers – 2004 – 2018 135 Table 54 – Historic - Reliance mobile ARPU – 2007 – 2017 136 Table 55 – Historic - Mobile ARPU (GSM and CDMA) – 2005 – 2013 137 Table 56 – Historic - Fixed broadband subscribers - market share by access type – 2014 137 Table 57 – Historic - Dial-up internet subscribers – 2007 – 2012 138 Table 58 –- Historic - International internet bandwidth – 2000 – 2009 138 Table 59 – Historic - Number of licensed ISPs – 2002 – 2003; 2005; 2008 – 2013 139 Table 60 – Historic - Cable modem subscribers – 2001 – 2009 139 Table 61 – Historic - DSL subscribers – 2001 – 2009 140 Table 62 – Historic - Reliance fixed-line subscribers – 2005 - 2009 140 Table 63 – Historic - Sistema fixed-line subscribers – 2010 – 2017 141 Table 64 – Historic - Videocon mobile subscribers – 2010 – 2015 141 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  11. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents Table 65 – Historic - Fixed-line subscribers and teledensity – 1995 – 2005 142 List of Charts Chart 1 – Asian Telecoms Maturity Index by Market Category..................................................................................................7 Chart 2 – Asian Telecoms Maturity Index vs GDP per Capita....................................................................................................8 Chart 3 – Telecoms Maturity Index – Central Asia...................................................................................................................12 Chart 4 – Cumulative mobile number portings – 2012 - 2020.................................................................................................34 Chart 5 – Growth in the number of mobile subscribers and penetration – 2010 – 2025 ......................................................39 Chart 6 – Growth in the number of mobile subscribers in urban and rural areas – 2011 – 2020.........................................40 Chart 7 – Change in mobile penetration in urban and rural areas – 2010 – 2020..................................................................41 Chart 8 – Decline in mobile penetration in urban and rural areas – 2017 – 2019..................................................................42 Chart 9 – Growth in the number of mobile broadband subscribers and penetration – 2011 - 2025.....................................51 Chart 10 – Change in the mobile market share of subscribers (major MNOs) – 2010 - 2020 ..............................................52 Chart 11 – Growth in the number of BSNL’s mobile subscribers – 2010 – 2020...................................................................54 Chart 12 – Growth in the number of Bharti Airtel’s mobile subscribers – 2010 – 2020 ........................................................57 Chart 13 – Growth in the number of Vodafone Idea’s mobile subscribers – 2010 – 2020....................................................64 Chart 14 – Change in Vodafone Idea mobile ARPU – 2007 – 2011; 2013 – 2020.................................................................66 Chart 15 – Growth in the number of MTNL’s mobile subscribers – 2010 – 2020..................................................................68 Chart 16 – Change in the number of RCOM’s mobile subscribers – 2010 – 2020.................................................................70 Chart 17 – Growth in the number of Reliance Jio’s mobile subscribers – 2016 – 2020........................................................73 Chart 18 – Growth in the number of fixed broadband subscribers and penetration – 2010 – 2025 ....................................81 Chart 19 – Development of internet penetration – 2008 – 2020.............................................................................................83 Chart 20 – Decline in the number of BSNL’s fixed-line subscribers – 2012 – 2020...............................................................97 Chart 21 – Growth in the number of Bharti Airtel’s fixed-line subscribers – 2008 – 2020 ..................................................100 Chart 22 – Decline in the number of MTNL’s fixed-line subscribers – 2010 – 2020............................................................101 Chart 23 – Change in the number of Quadrant’s fixed-line subscribers – 2010 – 2020......................................................103 Chart 24 – Decline in the number of Reliance’s fixed-line subscribers – 2010 - 2020.........................................................104 Chart 25 – Growth in the number of Tata’s fixed-line subscribers – 2010 – 2020...............................................................106 Chart 26 – Growth in the number of Vodafone Idea’s fixed-line subscribers – 2011 – 2020..............................................108 Chart 27 - Change in the number of fixed-line subscribers and penetration – 2010 – 2025...............................................112 Chart 28 - Decline in the number of PCOs in operation – 2008 – 2018.................................................................................114 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  12. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents List of Exhibits Exhibit 1 – Key Market Characteristics by Market Segment ......................................................................................................9 Exhibit 2 – Central Asia -Key Characteristics of Telecoms Markets by Country ....................................................................11 Exhibit 3 – Spectrum auction results - 2016..............................................................................................................................30 Exhibit 4 – CDMA 3G commercial deployments in India..........................................................................................................47 Exhibit 5 – Major shareholders in Bharti Airtel..........................................................................................................................98 Exhibit 6 – International submarine cable systems with landing points in India..................................................................117 Exhibit 7 – ISRO satellite network............................................................................................................................................122 © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  13. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents For a full overview of our information on Asia, see other Asian country reports at www.budde.com.au as listed below: Afghanistan Armenia Azerbaijan Bangladesh Bhutan Brunei Cambodia China Darussalam Georgia Hong Kong East Timor Indonesia Japan India Kyrgyzstan Laos Kazakhstan Malaysia Maldives Macau Myanmar Nepal Mongolia (Burma) Pakistan Philippines North Korea South Korea Sri Lanka Singapore Tajikistan Thailand Taiwan Uzbekistan Vietnam Turkmenistan © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  14. India - Telecoms, Mobile and Broadband - Statistics and Analyses Table of Contents We also have specific market reports on Asia, including:  Asia - Fixed Broadband Market - Statistics and Analyses  Asia - Mobile Infrastructure and Mobile Broadband  Asia - Mobile Network Operators and MVNOs  Asia - Telecom Forecasts © Copyright Paul Budde Communication Pty Ltd, 2020 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  15. India - Telecoms, Mobile and Broadband - Statistics and Analyses Executive Summary Executive Summary India’s stressed mobile sector gains investor interest The mobile market continues to be the main focus of India’s telecom sector, securing the bulk of operator capex. There is also considerable government investment in national infrastructure, including the BharatNet project which aims to connect 250,000 villages to broadband networks, of which 100,000 are expected to be connected with FttP services by the end of 2020. Although there is continuing major expansion of operator network infrastructure, the main MNOs have been under financial stress caused by competitive pressure on pricing as well as the high Adjusted Gross Revenue charges. This has obliged the operators to raise revenue from outside investors, while Vodafone Idea has had to be bailed out by its two main shareholders to avoid bankruptcy. By mid-2020 the huge investments made by a number of private equity funds, as well as global operators including Facebook and Google, had dramatically demonstrated confidence in the world’s second largest market. The recent financial difficulties of the main MNOs caused the government to delay the multi- spectrum auction, which is now expected to be held by late 2020. This will have knock-on effects on the availability and reach of 5G services in coming years. Compounding difficulties for the MNOs is government disapproval of the MNOs relying too heavily on Chinese vendors, a result of recent political disagreements exacerbated by border disputes in the far north. India’s fixed-line and fixed broadband sectors remain highly under-developed, largely due to the dominance of the mobile platform and the relatively limited extent of fixed infrastructure. BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 1 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  16. India - Telecoms, Mobile and Broadband - Statistics and Analyses Executive Summary infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries. On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth. Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report. The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele- health and tele-education, among other solutions. Key Developments  India takes additional steps towards the delayed 5G spectrum auction;  BSNL partners with Ciena to trial 5G;  Submarine cable linking mainland to the Andaman and Nicobar Islands expected to be completed by end-2020;  Report update includes the regulator’s market data to March 2020, telcos’ operating and financial results to Q1 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 2 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  17. India - Telecoms, Mobile and Broadband - Statistics and Analyses Executive Summary Key companies mentioned in this report: Aircel, Bharti Airtel, Loop Mobile (BPL Mobile), Vodafone Idea, Reliance Communications, Tata Teleservices, Videocon, S Tel, Bharti Telenet, Reliance Infocomm, Tata Teleservices, Sistema (Shyam Telelink), Swan Telecom, Videsh Sanchar Nigam (VSNL), Bharat Sanchar Nigam (BSNL), Mahanagar Telephone Nigam (MTNL), Spectra, Reliance Jio Infocomm (RJI), Sistema Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 3 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  18. India - Telecoms, Mobile and Broadband - Statistics and Analyses Key statistics Key statistics Table 1 – Top Level Country Statistics and Telco Authorities – India – 2020 (e) COUNTRY STATISTICS Population (million) 1,366 Land area 3.29 million sq km Capital New Delhi Local currency Rupee (Rs) GDP at current prices US$2,213 billion GDP per capita US$2,990 GDP real growth rate 1.9% Government Sovereign Socialist Secular Democratic Republic TELEPHONE NETWORK STATISTICS Fixed-lines in services (million) 4.637 Fixed-line annual growth -2.8% Fixed-line penetration 44.4%    Major public telecom operators Bharat Sanchar Nigam (BSNL) Mahanagar Telephone Nigam (MTNL) Tata Teleservices BROADBAND STATISTICS Fixed broadband subscribers (million) 19.798 Fixed broadband subscriber annual growth 3.4% Fixed broadband penetration 1.4% Percentage of households with internet access at home 29.0% Percentage of households with a computer 16.9% Mobile broadband subscribers (million) 780.5 Mobile broadband subscribers (annual growth) 21.3% Mobile broadband penetration 56.5% Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 4 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  19. India - Telecoms, Mobile and Broadband - Statistics and Analyses Key statistics MOBILE STATISTICS Mobile subscribers (million) 1,161 Mobile subscriber annual growth 0.8% Mobile penetration 84.5%        Bharti Airtel Vodafone Idea Reliance Comm Aircel BSNL Tata Reliance Jio Major mobile operators NATIONAL TELECOMMUNICATIONS AUTHORITY   Regulatory authorities Telecom Commission Telecommunications Regulatory Authority of India (TRAI) Ministry of Communications and Information Technology (MCIT) Department of Telecommunications (DoT) Ministry of Information & Broadcasting (MIB)    Source: BuddeComm Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 5 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  20. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison Regional Comparison Asian Market BuddeComm’s Asian Telecoms Maturity Index is an index (on a scale between 0 and 100) that measures and ranks the relative maturity of the telecoms industry in all of the 34 countries in Asia. These countries are compared according to a number of parameters with a focus on fixed broadband and mobile broadband penetration. All countries are placed into one of three categories: Market Leaders, Market Challengers and Market Emergents, according to their Market Index score. (see chart below) India is ranked 28th with a Telecoms Maturity Index score of 15. This places it in the Market Emergents category. Compared to other Asian nations, it has low fixed- broadband penetration and low mobile broadband penetration. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 6 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  21. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison Chart 1 – Asian Telecoms Maturity Index by Market Category Source: BuddeComm based on Industry data Note: Country Colour Code: North Asia (blue), Central Asia (red), South East Asia (green) The following chart plots the Asian Telecoms Maturity Index vs GDP per Capita. (note GDP per Capita is presented on the graph on a logarithmic scale). It is clearly evident there is a strong correlation between the Telecoms Maturity Index ranking and the GDP per Capita. Market Emergents generally have lower levels of GDP per capita and are lower down on the Maturity Index scale, whereas Market Leaders generally are on the top of the Maturity Index scale and have relatively high GDP per capita. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 7 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  22. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison Chart 2 – Asian Telecoms Maturity Index vs GDP per Capita Source: BuddeComm based on industry data Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 8 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  23. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison The following exhibit provides an overview of key market characteristics of countries within the three categories: Market Leaders, Market Challengers and Market Emergents. Exhibit 1 – Key Market Characteristics by Market Segment Market Leaders Market Challengers Market Emergents Geographic predominance North Asia South East Asia Central Asia GDP per capita High Moderate Low Level of urbanisation High Moderate Low Regularity environment level of economic stability High Moderate Low Likelihood of growth of further urbanisation Low High Moderate Fixed broadband penetration High Low - Moderate Very Low Predominant fixed broadband technology Fibre DSL/Fibre DSL Mobile penetration High Moderate - High Moderate Number of mobile operators relative to population Moderate Low High Mobile broadband penetration Moderate High Low Mobile broadband growth to 2024 Low Moderate High Likelihood of further market consolidation Low High High Source: BuddeComm An explanation of the key points / trends in the above exhibit are as follows:  Geographic predominance: A higher proportion of countries in the Market Leaders category are located in the northern region of Asia, whereas a higher proportion of developing nations are located in central Asia.  GDP per capita: Market Leaders generally have a higher GDP per capita. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 9 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  24. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison  Level of urbanisation: The level of urbanisation is generally higher amongst countries within the Market Leaders category, and generally lower amongst the Market Emergents category.  Likelihood of further urbanisation: The likelihood of further urbanisation is highest amongst countries in the Market Challengers category. These countries, while still developing, typically have, or are quickly developing, the necessary infrastructure ingredients for more rapid development. The gradual migration from rural to urban areas remains a dominant characteristic of many developing nations.  Fixed broadband penetration / Predominant Fixed Broadband Technology: Market Leaders generally have more advanced fixed broadband infrastructure in place with fibre as the predominant technology used, enabling faster access speeds.  Mobile penetration: Market Leaders generally have more mature mobile and mobile broadband markets with higher market penetration in both.  Number of mobile operators relative to population: The number of mobile operators relative to the size of a country's population is generally higher amongst Market Emergents and lower amongst Market Leaders. Market Leaders typically have already undergone a period of market consolidation and thus the number of mobile operators generally has gradually reduced over time due to intense market competition. In comparison, Market Challengers and Market Emergents are more likely to see higher market consolidation over the next five to ten years. The following exhibit provides an overview of key country characteristics of Northern Asian countries. Five of the seven North Asian countries: South Korea, Hong Kong, Macau, Japan and Taiwan are located in the Market Leaders category. All of these countries with the exception of Taiwan are ranked in the top four of all 34 Asian countries. China, which is in the Market Challengers category, is rapidly catching up with its more mature neighbouring countries. North Korea, mainly as a result of a highly oppressive political regime, has an under-developed telecoms market, lagging well behind the other northern Asian countries. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 10 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  25. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison Exhibit 2 – Central Asia -Key Characteristics of Telecoms Markets by Country Asian Telecoms Maturity Index Ranking (1- 34) Country Key Market Characteristics    Ongoing military conflicts hampering development. Highly competitive mobile market. Good progress roll-out of nationwide optical backbone. Afghanistan 34    Relatively mature mobile market. Mobile broadband growth supported by 4G rollout Data centres services growing. Armenia 15    Moderate growth in the fixed broadband market. Plans to extend FTTH network from ADSL. Building a ‘pre 5G’ network. Azerbaijan 13    Digital Bangladesh 2021 initiative driving smart cities. Low and declining fixed-line penetration. First test run of 5G technology. Bangladesh 24    Limited and declining fixed lines. This is restricting development of fixed broadband. Strong recent growth in mobile broadband. 17 Bhutan    Government proactive transforming to global hub. Intense mobile sector competition and consolidation. Sharp drop in ARPU due to intense price wars. India 28    One of most advanced telecoms sectors in Central Asia. Government’s Digital Kazakhstan program to 2022. 5G fixed-wireless services anticipated by 2021. Kazakhstan 12    Mobile broadband penetration grown strongly. Driven by rollout of 4G mobile networks. Fixed broadband grows strongly from small base. Kyrgyzstan 20    Liberalised, competitive market. 'Mobile first' nation; continued migration fixed to mobile. Launch of 4G services driving mobile broadband. Mongolia 14    Rapid recent mobile subscriber growth 3 new operators dramatically increased competition. Fixed broadband under-developed but now growing. Myanmar 22    Fixed broadband penetration very low. Mobile market experienced very high recent growth. Very rapid recent increase mobile broadband. Nepal 27    Rapid rollout of 4G - strong mobile broadband uptake Fixed line market remains underdeveloped. Introduce commercial 5G services by end-2020. 30 Pakistan Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 11 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  26. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regional Asian Market Comparison Asian Telecoms Maturity Index Ranking (1- 34) Country Key Market Characteristics    Fixed broadband accessibility limited. Fragmented mobile operator market. Relatively mature mobile market - 5G trials underway. Sri Lanka 26    Legacy rebuild issues from prior Soviet collapse. Despite launch of 4G, telecoms sector struggles. Extremely low fixed broadband penetration. Tajikistan 31    Poor growth due to slow development of private sector. Fixed network poorly developed. Strong increase in mobile broadband past four years. Turkmenistan 32    Slow period of transformation over last few decades. Fixed broadband penetration remains low. Mobile market relatively underdeveloped. Uzbekistan 16 Source: BuddeComm Chart 3 – Telecoms Maturity Index – Central Asia Source: BuddeComm based on Industry data Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 12 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  27. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector COVID-19 and its impact on the telecom sector The contagious SARS-CoV-2 virus, which causes the illness COVID-19, first reported at the end of 2019 and has since led to a global medical emergency, with a pandemic having been declared in mid-March 2020. The global tourism, trade and aviation sectors are among many which have been impacted by the spread of the virus. BuddeComm’s analyses of the telecoms sector addresses several existing or anticipated issues, including:  the disruption to global equipment supply chains (mobile device manufacturing, network equipment) leading to stalled launches of 5G- enabled devices.  the potential for delays to spectrum auctions and thus to operators’ ability to launch or extend 5G services, with the necessary standardisation of 5G being delayed.  large-scale job losses leading to restrictions on consumer spend, in turn impacting on ARPU, telco revenue and investment potential. However, these negative influences are offset by the necessity of connectivity and thus subscriber numbers should at least be stable. Enforced isolation for many millions of people, compounded by measures encouraging people to work from home, has meant that internet data traffic has risen sharply since mid-February, placing a strain on telecom networks. This has been dealt with by several measures, including a reduction in video quality by Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 13 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  28. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector some OTT VoD players (Netflix and Amazon in Europe, for example), and the acquisition of additional bandwidth from wholesale providers. During the last two decades BuddeComm has been analysing the maturing telecom infrastructure globally with a view to its readiness to support smart infrastructure and the components required (in the immediate context this includes tele-working, tele-health, tele-education and similar services). It is a testament to the robustness of this infrastructure that in the short space of three months the telecom networks internationally have coped with the extra traffic demanded of them. ■ ECONOMIC CONSIDERATIONS AND RESPONSES The economic ramifications of the pandemic are considerable and widespread. The IMF’s revised economic outlook issued in April 2020 predicted that GDP growth in the advanced economies would contract by 6.1% in 2020, while GDP in developing Asian countries would fall to 1%. In Latin America and the Caribbean growth would be a negative 5.2%, in sub-Saharan Africa it would be negative 1.6%, and in the Middle East and Central Asia it would be negative 2.8%. Global growth of 5.8% could return in 2021 (4.5% in the advanced economies, 8.5% in developing Asian countries, 3.4% in Latin America and the Caribbean, 4.1% in sub-Saharan Africa and 4% in the Middle East and Central Asia). Revenue growth assumes a reversion to normal economic activity from the low base of 2020, and in almost all markets GDP growth in 2021 will be far below the pre-virus estimates. A significant caveat is that recovery is based on the pandemic subsiding in the second half of the year. This in turn assumes that containment efforts are kept in place judiciously (by opening up select sections of the economy - piecemeal and measured - and only gradually easing restrictions). The pressing need to revive economic productivity may result in these efforts being relaxed too quickly, resulting in subsequent waves of infection and a return to lockdown conditions. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 14 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  29. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector Governments globally have put in place a range of stimulus packages. European Union finance ministers in April 2020 agreed to a €500 billion rescue package for member countries most affected by the coronavirus pandemic, though the European Central Bank had noted that countries may need up to €1.5 trillion to address economic damage caused by the crisis. For its part, the US Senate has passed a $2 trillion emergency relief package aimed at countering some of the economic damage which the pandemic is causing, while Japan has pledged ¥108 trillion (or 20% of the country’s GDP) in measures supporting the economy business and in cash payments to individuals and small businesses. The IMF, which has about $1 trillion at its disposal, is enhancing its Catastrophe Containment and Relief Trust (CCRT) to provide debt service relief for some of the poorest and hardest hit countries. The CCRT only has $200 million available though it is intended that this is raised to about $1 billion from donations contributed by economically stronger countries. In April 2020 the IMF approved debt service relief to 25 member countries under the revamped CCRT as part of the Fund’s response to the pandemic. In addition, governments and telecom regulators globally have engaged policy measures aimed at buttressing the telecom sector and ensuring the continuity of services. They have been particularly concerned with initiatives directed at online learning and tele-health. These initiatives marry in with revised consumer plans from many telcos which - among many options - guarantee a minimum broadband data rate, provide a set number of minutes and SMS, or sharply reduce the cost of services. These initiatives recognise the financial difficulties faced by many customers, as well as the paramount importance of staying connected. Revenue expected to be generated by telcos further into 2020 and into 2021 will be supported by the stability of their subscriber base. Given that many of the key telcos have become multi-service operators (offering a range of fixed-line, broadband and mobile voice/data services) there is a cushion insofar as customer ‘stickiness’ will dilute the detrimental effect of customers cutting down on certain services (such as pay-TV). Nevertheless, there is likely to be short-term Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 15 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  30. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector difficulties for telcos seeking to finance major infrastructure projects, and governments too will be strained to contribute to national infrastructure programs related to NBNs. The IMF predicted that India’s GDP growth would fall to 1.9% in 2020, compared to a 4.2% growth in 2019. To support economic recovery, the government in April 2020 began to relax measures in certain areas, allowing for more economic activity. In the following month the government announced a $266 billion stimulus package targeted at low-wage workers and SMEs. The package amounted to about 10% of GDP. ■ MOBILE DEVICES With Asia, and particularly China, being an important regional hub for both the telecoms and technology sectors, disruptions to international trade have had a flow-on effect globally. The mobile phone industry is dependent on the timely production of many components largely made in China, which alone produces around 70% of all global smart phones sold. However, vendors other than Xiamoi, Oppo and Huawei are becoming less dependent on the country for manufacturing smartphones, and a number of alternative channels exist for them, including Taiwan, Thailand and Vietnam. Sony Mobile in early 2019 closed its smartphone operations in Beijing and set up in Thailand instead, while in October 2019 Samsung closed the last of its smart phone manufacturing plants in China, citing issues relating to rising labour costs and a general economic decline. Ericsson temporarily closed it offices in China in February 2020, and has ramped up production in Estonia, the USA and Brazil. The Taiwanese manufacturer Foxconn Technology Group, which assembles the iPhone, in mid-2019 suggested to Apple that it could move production to its factories outside China and so avoid the 25% tariff imposed by the US government Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 16 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  31. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector on the wholesale price of devices (including laptops and tablets) imported from China to the US. About a quarter of Foxconn’s iPhone production is outside China. On a smaller scale, device manufacture is undertaken in several countries in Africa for local markets. Transsion (selling units under the Tecno, Infinix and Itel brands) has a 55% share of the African feature phone market and is second to Samsung in smartphone sales. While there are device assembly plants in Egypt, Algeria and South Africa using Chinese made components, Mara Group since late 2019 has built smartphones in Rwanda and South Africa entirely in-house. The large-scale job losses across the globe have put pressure on household spending, and so demand for new devices is expected to slow. The replacement period for mobile devices has lengthened over the years and now commonly ranges between 18 months and 24 months, in line with many contract plans. However, demand for new devices could be stimulated by people buying a second handset for work use, for calls which they would otherwise have used an office phone. ■ SUBSCRIBERS The impact on the number of fixed broadband and mobile subscribers is expected to be minimal. This reflects a long-established market dynamic wherein consumers would opt to cut back on many other areas of discretionary spend excepting those related to telecom services. Given the considerable proportion of populations now required to work from home, subscriptions to broadband and mobile services is more important than ever. The potential stimulus to new device sales from home workers will be reflected in continued growth in the number of mobile subscribers, with additional phones or SIM cards being used for work-related use. Further strengthening household attachment for fixed and mobile broadband services is the growth in streaming consumption. In Europe, VoD traffic increased Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 17 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  32. India - Telecoms, Mobile and Broadband - Statistics and Analyses COVID-19 and its impact on the telecom sector by at least 40% in March 2020 alone. Other than entertainment (except for sport, where viewing figures have collapsed with the cancellation of fixtures), much traffic growth is supported by home and work related communication tools and conferencing apps (Microsoft Teams, Zoom and similar platforms). ■ INFRASTRUCTURE Within the 5G sector, the virus caused the 3GPP to delay (until June 2020) Release 16 relating to specifications for 5G standalone RAN, virtualisation, the 5G core, network slicing and similar topics. The fibre-optic cabling sector may be impacted since two of the largest global suppliers of cabling are in Wuhan. Together, these two suppliers account for 25% of global fibre production. Wuhan has emerged from lock-down, and so it is anticipated that fibre production will resume. Thus far there has been minimal impact on the telecom infrastructure supply chain, with the major suppliers including Ericsson, Nokia, Cisco, Huawei, and ZTE not reporting difficulties in securing technology components. This is a more positive status than the demand side, where major infrastructure roll-outs related to 5G and LTE upgrades, as well as to NBNs (as in Australia) will be delayed. Delays are partly attributed to developing bottlenecks in supply chains, as also to the practicalities of providing a full workforce during lockdown restrictions. However, the effect of demand-side 5G developments will be uneven globally, since some regions, including North America, Europe and parts of Asia, are further developed than others. While across Latin America the main operators have conducted numerous 5G pilots, there remains enough capacity in LTE networks that 5G will not be widely available until late 2021 or into 2022, coinciding with the release of suitable spectrum. Most countries in Africa will be similarly unaffected since operators will still be focussed on 3G and LTE during the next two years or so. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 18 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  33. India - Telecoms, Mobile and Broadband - Statistics and Analyses Telecommunications market Telecommunications market ■ MARKET ANALYSIS Despite setbacks, India continues to be one of the fastest growing major telecom markets in the world. It is also one of the largest. Sweeping reforms introduced by successive governments over the last two decades have dramatically changed the nature of the telecoms landscape in the country. The government has continued to restructure the telecom regulatory regime and has actively encouraged measures to transform the country’s telecom infrastructure, with a view to providing universal access. The mobile market is the dominant part of the telecom market, accounting for most voice and data subscribers and carrying by far the largest proportion of traffic. Network operators concentrate the bulk of their investment in mobile infrastructure and services. Over the next two decades India has the potential to become one of the five largest data centre markets globally. In the last few years there has been a radical shift in the way Indians produce and consume data. A number of government initiatives and regulations will see further growth in the number of internet users as well as data residency laws that will require vastly more data centre capacity. Since 2019 there has been an increase in the rate in which on-premise facilities are being outsourced to third-party data centres, particularly in response to the growth in cloud computing. There is considerable ongoing network expansion from among the key players as also from the government. The MNOs are focussed on extending the reach of LTE infrastructure and developing 5G, aiming to capitalise on mobile data to drive ARPU growth, while the government has committed funds to a number of projects including the ambitious BharatNet project. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 19 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  34. India - Telecoms, Mobile and Broadband - Statistics and Analyses Telecommunications market The domestic provision of fixed-line telephone services in India was traditionally the preserve of the state-owned operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL). MTNL operated in Mumbai and Delhi while BSNL provided services in the rest of the country. The government opened up the fixed-line telephone market in 2001 when it allowed for an unlimited number of operators in each of the defined telecom circles (regions). Prior to this, only one private company had been permitted to compete with one or other of the state- run players in each circle. The international telephony market was opened up to competition in in 2002 when the former monopoly provider, Videsh Sanchar Nigam (VSNL), lost its exclusive status. Vodafone became the first foreign operator to benefit from the relaxed restrictions on foreign ownership in the sector when in February 2014 the government approved the company’s takeover of its Indian subsidiary. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 20 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  35. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Regulatory environment ■ HISTORICAL OVERVIEW A feature of India’s regulatory regime is the general openness in approach, with the regulatory authorities being prepared to make industry information public and accessible, and to encourage consultation with stakeholders. The downside to this open approach is that, in an effort to get ‘buy-in’ by the various parties, some projects have suffered inordinate delays. In the meantime, India has been working to gain the confidence of overseas investors and financiers, something it has needed to achieve to secure inflows of foreign capital at levels required for further substantial infrastructure development. The network operators were very successful in this regard during the first half of 2020, with Reliance Jio alone securing some $10 billion of investment from international companies and private equity groups. ■ REGULATORY AUTHORITIES Ministry for Communications (MoC) The MoC is the policy maker for telecom, telegraph and postal services. Its responsibilities were formed by the 1935 Indian Telegraphic Act. Amendments introduced through the 1999 New Telecom Policy (NTP-99) enabled private operators and foreign companies with minority shareholding to enter the market. The MoC subsequently became the Ministry of Communications and Information Technology (MCIT) with overall control of and responsibility for the Department of Telecommunications (DoT), the Department of Information Technology (DIT) and the Department of Posts. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 21 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  36. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Department of Telecommunications (DoT) The DoT was the authority responsible for granting licences and for service provision until 2000. It also operated domestic basic telephone services throughout India. The policy-making functions and the service providing function were segregated into two different entities in 2000. The two service providing departments of the telecom sector were corporatised as the Department of Telecom Services (DTS) and the Department of Telecom Operations (DTO). The state-owned corporation BSNL took over all service- providing functions of these two departments. In 2005 the Finance Ministry allowed government departments to switch to services offered by private telcos at competitive rates: under the previous arrangement government departments were required to use the telecom services offered by the state-owned BSNL and MTNL. Telecom Commission The Telecom Commission was set up by the government with necessary executive, administrative and financial powers to deal with various aspects of the telecom sector. The Commission consists of a Chairman, four full-time members and four part time members. The Commission is charged with:  policy formulation;  licensing;  wireless spectrum management;  administrative monitoring of Public Sector Units (PSUs);  research and development;  standardisation and validation of equipment. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 22 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  37. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Telecom Regulatory Authority of India (TRAI) In keeping with global trends in deregulation of the telecom sector, the TRAI was established as an independent statutory authority under the 1997 TRAI Act. The functions and responsibilities of the TRAI include:  ensuring technical compatibility and effective interconnection between different operators and service providers;  revenue sharing arrangements between different service providers;  protection of consumer interests;  protection of national security interests;  enforcement of quality service standards;  ensuring compliance of licence conditions;  fixing of tariffs for telecom services and ensuring price regulation;  ensuring effective compliance of USOs;  resolution of disputes between service providers;  rendering advice to the government in matters relating to the development of telecom technology and the telecom industry in general;  levying fees at such rates and in respect of such services as determined by regulations;  seeking information on all aspects of service providers' activities;  seeking information, advice and inputs from any source it deems necessary; Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 23 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  38. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment  investigating on its own accord any matter which in its opinion constitutes public interest;  inspecting facilities and records of operators and service providers. The TRAI released a common charter of telecom services in 2005 which all telcos were encouraged to adopt. Although not mandatory, this charter was an attempt by TRAI to promote a code of conduct for the industry. Telecom Dispute Settlement & Appellate Tribunal (TDSAT) The government established the TDSAT in 2000 as an authority separate from the TRAI to handle disputes in the sector. One particularly sensitive issue involving the TDSAT has been jurisdiction. In 2004 the TDSAT barred the TRAI from intervening in any dispute arising between two operators on the terms and conditions of interconnection. Dismissing a review petition filed by the TRAI against BSNL, TDSAT claimed that the TRAI had no adjudicatory functions under the Act, and thus lacked the authority to pass orders in disputes between two operators. It was asserted that that the adjudication of disputes was entrusted to the TDSAT. The Cellular Operators Association of India (COAI) supported this, noting that the regulator’s function was to regulate, not to adjudicate. Communications Commission of India (CCI) The 2001 Communications Convergence Act set up the CCI along the lines of the Federal Communication Commission (FCC) in the US. Encompassing all aspects of convergence (communications, information and broadcasting) the CCI was intended to be a unified regulatory authority for issuing multiple licences for basic telephony, cellular telephony, broadcasting and webcasting. It is also charged with resolving disputes and determining the conditions for non-discriminatory access to network facility and services, as also eliminating practices having adverse Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 24 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  39. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment effects on competition, promoting competition, and protecting the interests of consumers. The CCI is CCI consists of a Chairperson and six members appointed by the government. Ministry of Electronics and Information Technology (MeitY) In July 2016 the government spun out the Department of Electronics and Information Technology (DeitY) from the Ministry of Communications, establishing it as a ministry in its own right. The Ministry’s remit includes the government’s Digital India program and e-governance projects. It is charged with promoting e-governance, growth in IT industries, R&D and innovation, and cyber space. ■ FIXED-LINE DEVELOPMENTS Licensing circles For the purpose of licensing telecom service providers, India is divided into a number of ‘circles’ based on geographic divisions which roughly correspond to the Indian states. The major cities, Mumbai, New Delhi, Kolkata and Madras were originally circles in their own right. Initially two licences for mobile services and one fixed network licence were offered in each circle. The aims of the liberalisation policy were to provide affordable and universal services and to invest in research and development to strengthen technology. Initially foreign companies were allowed to own up to 49% of the consortia that bid for the 15-year licences to operate local voice and data networks in franchise areas. One private group would be permitted to compete with DoT (later BSNL) in each of 18 circles. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 25 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  40. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment The original circle licensing policy, and especially the number and type of licences, was refined progressively as the administration gained more information from the marketplace. Through this process the number of circles has changed from the original set-up. There are now 22 circles (service areas) arranged into four groups: 'metro circles' which include the largest cities (Delhi, Kolkata, and Mumbai) and then the 'A', 'B', and 'C' circles which are generally aligned according to the size of population. Since 2007 the circles have officially been known as service areas, but the term circle is still used widely. Licensing – VNOs In 2016 the Telecom Commission approved the introduction of a new category of unified licence – for virtual network operators (VNOs) - which had been recommended by the TRAI. The TRAI previously proposed that VNOs should operate only through mutual agreement with network service operators (NSOs), leaving market forces to determine the terms and conditions for sharing infrastructure. VNOs are not limited to the mobile segment but have a broader remit including wireline and broadband networks and including the installation and operation of their own last-mile infrastructure. Net Neutrality In 2016 the TRAI published new regulations on net neutrality, prohibiting operators from providing discriminatory tariffs based on content. The ruling prohibits the provision of zero-rating data services, whereby operators can include unlimited free access to certain applications or websites as part of a package. The TRAI set a penalty of INR50,000 per day for contraventions of the regulations, up to a maximum of INR5 million. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 26 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  41. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Fibre access In November 2016 the DoT issued the Indian Telegraph Right of Way Rules which established a standard framework for licensees to secure permits to install underground and aerial infrastructure from local authorities. The rules guide both regulate fibre and mobile tower infrastructure. Interconnect In February 2015 the TRAI eliminated fixed-line termination rates and cut mobile termination charges by around 30% in a bid to promote investment in networks and stimulate reduced tariffs. ■ MOBILE NETWORK DEVELOPMENTS Spectrum The telecoms sector has a relatively low amount of spectrum available per operator. The ability of operators to keep adding urban customers to their networks, as well as expanding into rural areas, has been significantly compromised by this paucity of bandwidth. QoS issues (particularly dropped calls because of crowded bandwidth) have also been a problem. The government in early 2015 determined the frequencies to be used by the Ministry of Defence (MoD), paving the way for the re-farming of 3G frequencies which had been reserved for national security agencies. Later in the year the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ordered the DoT to allocate spectrum to operators in border regions, where signals could experience interference from Pakistani networks. Spectrum in the 800MHz band surrendered by BSNL and MTNL was auctioned in March 2015, with the government to gain INR4 billion over the 20-year licence period. BSNL was compensated INR1.69 billion for giving up frequencies in the in four circles, while MTNL received INR4.58 billion from returning 1.25MHz each in Mumbai and Delhi. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 27 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  42. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment In January 2018 the Telecom Commission endorsed the regulator’s November 2017 proposals to modify spectrum holding caps which had restricted providers to 50% of allocated spectrum in a particular band per circle, and up to 25% of spectrum across all bands per circle. Under the revised measure, operators can claim up to 35% of the allocated frequencies within each circle, and up to 50% on combined sub-1GHz frequencies (the 700MHz, 800MHz and 900MHz bands), with no limit placed on per-band holdings for the higher frequency ranges. 5G Spectrum auction – 2020 The delayed multi-spectrum auction was expected to be held by the end of 2020. On offer is almost 8.3GHz of spectrum across the 700MHz, 800MHz, 1800MHz, 2300MHz, 2500MHz and 3400MHz-3600MHz ranges including. Licenses for 5G are likely to be deferred until 2021, partly due to difficulties resulting from the COVID-19 pandemic and partly because of the financial woes of the operators. The MNOs are keen to secure additional spectrum’ but further investment has slipped in terms of priorities. As with previous auctions, the MNOs consider that the reserve price has been set too high. This has the risk that operators will again shy away from bidding: at the auction held in 2016 about 60% of spectrum went unsold. Operators assert that their low tariffs mean that they generate insufficient revenue to cover operating costs and network capex, while free cash flow is too low to make interest payments on spectrum already acquired. With the exception of Reliance Jio, all MNOs have reported declining revenue in recent quarters. In addition, they have been burdened with the Adjusted Gross Revenue (AGR) judgment, by which they are collectively subject to pay INR920 billion (about $12.9 billion). The AGR was intended to address the fact that non-telecom revenue had for many years not been included in telecom license conditions. The regulator set a base price of INR4.92 billion (about $69.2 million) per megahertz for spectrum in the 3.3-3.6GHz range. For services to be effective, Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 28 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  43. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment operators will need to acquire at least 100MHz. The reserve price of INR65.68 billion was set per megahertz in the 700MHz band (which was unsold in 2016 when the price was set at INR114.85 per megahertz). In May 2020 the Ministry of Finance suggested that the spectrum pricing should be reduced to ensure that end-user services remain affordable and that the licensees have sufficient funds remaining after the auction to deploy the necessary infrastructure. Operator reticence to invest in 5G stems from their existing financial burdens as well as an acknowledgement that services based on LTE will have considerable traction for the next few years, and that the market is not yet ready for 5G. Bharti Airtel in February 2020 asserted that it would not bid if the reserve price was not reduced. Spectrum auctions – 2016 At the auctions held in October 2016 the seven participating operators spent INR657.89 billion on 964.8MHz of spectrum but this equated to less than half of the more than 2,300MHz on offer. The sum paid also amounted to about a tenth of the INR5.6 trillion reserve price of all the available frequencies. The 700MHz band was made available for the first time in the auction and carried a price tag of more than INR4 trillion for the entire holding across all 22 circles, but it saw no interest from the bidders. Bidding was fiercest around the 1800MHz, 2100MHz and 2300MHz bands as mobile operators sought to bolster their LTE-compatible spectrum holdings. However, only around 75% of the available spectrum in the 1800MHz range was sold, while only 60% of the 2500MHz band, 34% of the 800MHz band and 20% of the 2100MHz band was sold. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 29 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  44. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Exhibit 3 – Spectrum auction results - 2016 Spectrum holding Operator Bands Mount paid (INR billion) 1800MHz, 2100MHz, 2500MHz Vodafone India 365.2MHz 202.8 1800MHz, 2100MHz, 2300MHz Bharti Airtel 173.8MHz 142.4 800MHz, 1800MHz, 2300MHz Reliance Jio 269.2MHz 136.7 1800MHz, 2100MHz, 2300MHz, 2500MHz Idea Cellular 128.0 349.2MHz Source: BuddeComm based on regulator data Spectrum auctions – 2015 The March 2015 auction for spectrum in the 800MHz, 900MHz, 1800MHz and 2100MHz bands raised INR1.099 trillion for the government. Idea Cellular paid INR303 billion for 900MHz spectrum in nine service areas and 2100MHz spectrum in one service area (Kolkata). Bharti Airtel secured spectrum in the six circles where its concessions were due to expire, and paid INR293 billion for 2100MHz spectrum in seven circles. Vodafone India paid INR259.59 billion to renew 900MHz concessions covering seven service areas and secure 2100MHz spectrum in six service areas. Bharti Airtel, Vodafone India and Idea Cellular were determined to renew expiring concessions in key areas since they anticipated pressure from newcomer Reliance Jio, which secured 1800MHz spectrum in six service areas and 800MHz spectrum in ten areas, paying INR100.77 billion. RCOM lost its 900MHz concessions in five service areas (Assam, Bihar, North East, Orissa, and West Bengal) to rivals, but retained Madhya Pradesh and Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 30 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  45. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Himachacl Pradesh. It also secured 800MHz spectrum in eleven service areas as well as 1800MHz spectrum in five others, paying INR42.99 billion. Aircel and Tata Teleservices also won spectrum, but their bidding had been restrained by the DoT as the pair failed to meet the financial requirements for bidding for spectrum in new areas. Aircel paid INR22.5 billion for 1800MHz spectrum in the Tamil Nadu service area, while Tata Teleservices secured 800MHz spectrum in Assam, Delhi and Haryana and 1800MHz in Andhra Pradesh, paying INR78.51 billion. Spectrum trading rules The government approved guidelines for trading and selling spectrum in September 2015, thereby providing struggling operators with a potential exit route and paving the way for consolidation in the crowded sector. The rules permit MNOs to trade or sell frequencies across all bands, provided that they have held the frequencies for at least two years if they were allocated via auction or received through a deal among each other. Operators wishing to sell government-allocated spectrum must first convert them into tradeable spectrum by paying the market price of the frequencies to the state. A transfer fee of 1% of the deal value or the spectrum’s market price, whichever is higher, is levied on all transactions. In addition, the government ruled that proceeds from trading deals must be included in the operators’ AGR, on which the operators pay spectrum usage charges and annual licence fees. Initially, the total amount of spectrum usable by operators, considering sharing and trading, could not exceed 25% of all allocated spectrum in a circle, or 50% of the allocated airwaves in any band. This was revised in January 2018, allowing operators to claim up to 35% of allocated frequencies within each circle, and up to 50% on combined sub-1GHz frequencies. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 31 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  46. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Spectrum trading In July 2016 Bharti Airtel acquired Aircel’s LTE-compatible spectrum in eight service areas for INR35 billion. The spectrum consisted of 20MHz of TDD 2300MHz spectrum in Tamil Nadu, Bihar, Jammu & Kashmir, West Bengal, Assam, North East, Andhra Pradesh and Orissa (valid to September 2030). The transfer of spectrum rights in Andhra Pradesh and Orissa was subject to the revision of spectrum caps. The deal gave Bharti Airtel LTE concessions nationwide (before this, only Reliance Jio had nationwide LTE concessions). Bharti Airtel in 2016 also acquired spectrum in the 1800MHz band in six circles from Videocon Telecommunications, paying INR44.28 billion for 2×5MHz blocks in Bihar, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh East and Uttar Pradesh West. Mobile subscriber verification In March 2017 the DoT required the MNOs to re-verify their subscribers via the government’s Aadhaar identification system, which incorporates a unique number for each individual as well as biometric data. The notice followed a ruling by the Supreme Court which required mobile subscribers to be verified by February 2018 to mitigate the use of wireless technology for illegal activities. Interconnection In October 2017 the TRAI reduced the interconnection charge for mobile to mobile communications from INR0.14 per minute to INR0.06 per minute. Termination charges were cancelled altogether in January 2020. Roaming Following a directive from the regulator, in April 2015 Vodafone India, Bharti Airtel, Idea and RCOM reduced roaming charges by between 20% and 75%. The move was in a bid to reduce costs for end users, encourage mobile voice and data services, and stimulate m-commerce. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 32 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  47. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment In May 2020 the regulator published a consultation paper on potential regulatory changes to international mobile roaming, including automatic activation and tariffs. Mobile Number Portability (MNP) A national MNP scheme known as ‘One nation, one number’ was launched in July 2015. This revised scheme enables mobile subscribers to use the same number when they move between networks. Previously, the MNP system only allowed users to port their number within the same operating area. Regulations on MNP were amended in February 2018, with the porting charge reduced from INR19 to INR4. The fee is paid by the recipient operator to the relevant MNP service provider. Table 2 – Cumulative mobile number portings – 2012 - 2020 Year Portings (million) 2012 80.06 2013 109.37 2014 142.98 2015 194.006 2016 254.82 2017 338.41 2018 411.98 2019 470.08 2020 (Mar) 487.33 Source: BuddeComm based on industry data Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 33 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  48. India - Telecoms, Mobile and Broadband - Statistics and Analyses Regulatory environment Chart 4 – Cumulative mobile number portings – 2012 - 2020 Source: BuddeComm based on regulator data Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 34 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  49. India - Telecoms, Mobile and Broadband - Statistics and Analyses Mobile market Mobile market Over the past decade India’s mobile sector has developed a sustained momentum, aided by higher subscriber volumes, lower tariffs and falling handset prices. There had been a major push to take mobile services into the poorer and rural areas of the country, a move that inevitably weighed down on ARPU. The mobile sector dominates the telecom market, given its large subscriber base and revenue as well as the considerable capital investment made by operators. The market has experienced steady subscriber strong growth over the last six years. Mobile penetration increased from 69% in 2013 to nearly 88% by early 2020. The market remains highly competitive, and operators have recently focussed less on growth in the number of subscribers as to VAS and improving revenue and ARPU. The roll-out of LTE services is driving significant mobile data use across the country. Much will depend on the continuing resilience of the economy, with any drop in economic performance quickly triggering a decline in demand for mobile services. Particularly strong growth was seen between 2016 and 2018 in response to the market entry of Reliance Jio, which initially offered free data. As competitors adjusted their own offers they experienced a sharp drop in ARPU though recovery returned in 2018 and 2019. The intense price war in the mobile sector severely hampered RCOM’s business, and the company saw a rapid loss of subscribers. Intense competition has also made it difficult for smaller-scale operators to make a mark. This has resulted in mergers and bankruptcies and has also prevented MVNOs from developing with any scale. Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 35 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

  50. India - Telecoms, Mobile and Broadband - Statistics and Analyses Mobile market Geographic segments There are four telecom regions in India, known as ‘Telecom Circles’ or ‘Telecom Service Areas’ (officially, service areas has been the preferred term since 2007, though circles is widely used). In all there are 22 service areas, based on the largest metro regions and on other regions determined by geographic territories of varying population sizes and roughly corresponding to the borders of the states.  Metro - the metropolitan areas of Mumbai, Delhi, Calcutta are designated telecommunications circles (as was Chennai before 2007, when it was absorbed within the Tamil Nadu service area);  Category A circles - corresponding closely to the states of Andhra Pradesh, Matarashtra, Gujarat, Karnataka and Tamil Nadu;  Category B circles - corresponding closely to the states of Uttar Pradesh (east and west), Punjab, Rajasthan, Haryana, Kerala, Madhya, Pradesh and West Bengal;  Category C circles - corresponding closely to the states of Bihar, Orissa, North-East Assam, Jammu and Kashmir, Himachal Pradesh, Andaman and Nicobar Islands. Rural expansion A significant challenge facing network operators in India was how to deliver mobile services to populations in rural areas of the country. These areas continue to be characterised by limited infrastructure and facilities, low literacy levels, and low PC and internet penetrations. Relatively cheap mobile phone services provided an ideal solution for rural populations, while operators could deploy infrastructure much more cost effectively than is the case with fixed-telephony. Despite the growing focus on data, it remains the case that a significant proportion of Indian villages remain unserved by the mobile networks. This is reflected in the different penetration rates seen in some states. The average telephony penetration rate (including mobile and fixed-line) as of March 2020 was 87.3%, though the rate in Bihar was only 53.2% and in Uttar Pradesh 67.1%. Eight Please note: All $ are US$ unless stated otherwise © Copyright Paul Budde Communication Pty Ltd, 2020 Page 36 Website: www.budde.com.au EMISPDF intellinet from 49.33.190.254 on 2020-08-15 09:43:10 BST. DownloadPDF. Downloaded by intellinet from 49.33.190.254 at 2020-08-15 09:43:10 BST. EMIS. Unauthorized Distribution Prohibited.

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