Latest Results Mobile telephony update

Mobile telephony services are rapidly expanding and the companies

Interviews
have added 4mn new subscribers in April’07, taking their total user
Features base to 125.57mn in April’07. At the end of March’07 total GSM
customers stood at 121.43mn. There was an overall growth of 3.40%
Meets/AGM over the previous month and 4.13mn new user additions during
April’07.
Investment Ideas
Market share of mobile subscribers
Investor Points
Market Share April 07
Economy

Commodity Prices MTNL SpiceBPL

Rcom
Aircel 3% 2% 2% 1% Bharti Airtel
Company Database 5% 31%
IDEA
12%
IPO Online

Mutual Fund online

B-School Hutch BSNL

22% 22%
PMS

Investor Relations Source: COAI, AUTSPI,

GSM mobile segment

The All India GSM subscriber base continued to grow in April’07,

achieving a subscriber base of 126mn in April 2007, up from 121mn in
March 2007 recording an addition of over 4.13mn during the month
under review. There was an overall growth of 3.4% over the previous
month.

The Indian GSM industry has witnessed an excellent start in the year
2007 and the same growth trend is expected to continue in the months
to come. The exponential growth in the GSM Industry was a result of
the concerted efforts of the GSM industry coupled with forward looking
policies of the Government, enabling regulation and fair play for all the
players.
GSM subscribers
Subscribers as of Additions In Subscribers as of
Group Company March 07 April 07 April 07 (%)Growth
Bharti 37141210 1751096 38892306 4.71
BSNL 27428884 326973 27755857 1.19
Hutch 26441838 1261196 27703034 4.77
IDEA 14010551 552655 14563206 3.94
BPL 1070853 6232 1077085 0.58
Spice 2728956 85771 2814727 3.14
Aircel 5514467 413465 5927932 7.50
Reliance 4347593 0 4347593 0.00
MTNL 2746814 -263017 2483797 -9.58
Total 121431166 4134371 125565537 3.40
Source: COAI

GSM market share GSM share of net additions

Market Share April 07 Net Share in Addition (%)

Aircel Bharti BPL BSNL Hutch IDEA Spice
MTNLSpice BPL
Rcom
2% 2% 1% Bharti Airtel 13.4 2.1 10.0
Aircel 3%
IDEA 5% 31%
12%

30.5
42.4
Hutch BSNL 7.9 0.2
22% 22%

Source: COAI Source: COAI

During April 2007, GSM subscriber base of MTNL decreased by 9.6% mom, while there were no new subscriber
additions by Reliance Communication.

The Metro subscribers grew by 1.02% in the month of April 2007. Mumbai recorded the highest growth at
4.46%.

Among Category A circles Tamil Nadu recorded the highest growth of 5.57% followed by Gujarat at 4.52%.

Within the Category B circles, Rajasthan recorded the highest growth at 5.41%, followed by West Bengal &
Andaman & Nicobar at 4.76%.

In April, among all circles, Category C circles witnessed the highest rate of growth at 4.36%, followed by
Category A circles at 4.15%.

Within the Category C circles, North East recorded the highest growth at 7.18%, followed by Assam at 7.06%
Circle wise subscriber addition
Circle March 07 April 07
Subscribers Subscribers (%)Growth % Share
Metro 21958514 22181850 1.02 17.67
A 42680298 44452588 4.15 35.40
B 43542736 45103165 3.58 35.92
C 13249618 13827934 4.36 11.01
Total 121431166 125565537 13.12 100.00
Source: COAI
CDMA mobile segment
There is an increase of around 2% mom in CDMA subscriber’s base to around 1mn. Reliance witnessed a
3.19% mom growth in subscriber base to around 8mn mark. HFCL witnessed sharp decline in its subscriber
growth of around 0.62% in the month of April’07. Tata recorded growth of 2mn in the month of April’07.
Reliance has bounced back in April’07 as against its performance in March’07 and remained a market leader
with a total subscriber base of around 25mn.

CDMA subscriber data

Group Company Subscribers as Subscribers as Additions in % Growth
of March 07 of April 07 Apr.07
Bharati Tele Venture 1,871,387 1,911,674 40,287 2.15
HFCL Infotel Ltd 319,110 317,127 -1,983 -0.62
Reliance Comm. Ltd 25,188,258 25,990,978 802,720 3.19
Shyam Telelink Ltd 249,403 251,601 2,198 0.88
Tata Teleservices Ltd 16,552,987 16,762,846 209,859 1.27
Total 44,181,145 45,234,226 1,053,081 2.38
Source: AUSPI

Market share of CDMA operators CDMA share of net additions

April'07 April'07
BTVL HFCL Rcom Shyam Tele TTSLtd BTVL Rcom Shyam Tele TTSLtd

BTVL
TTSLtd HFCL TTSLtd BTVL
4%
37% 1% 19.9% 3.8%

Shyam Tele
0.2%

Rcom Rcom
Shyam Tele
57% 76.1%
1%

Source: AUTSPI Source: AUTSPI

RCOM introduces unlimited calling
Reliance Communications announced its latest path breaking initiative for power users Free Unlimited Outgoing
calls to any local Reliance Mobile phone. The Pre-paid Unlimited plan is available at Rs490 for 30 days and
gives Rs100 bonus talk time for other calls. It also offers attractive rates for calling other phones. Similarly in
Post-paid, the subscriber can opt for a pack worth Rs375 only to get the benefits of Unlimited calling while
roaming on any post-paid plan. The Unlimited Plan is a compelling proposition for Reliance customers to form
their own communities of interest and get maximum benefits out of t his extra-ordinary value offer.
The launch of unlimited outgoing calling provides heavy users an ideal product enabling them to speak to any
local Reliance user for unlimited duration for free. This will significantly cut down their costs even while
perfectly complementing our incoming products.

VSNL selects Quiconnect as its WBA WRIX partner

Quiconnect will be VSNL ‘s WRIX [Wireless Roaming Intermediary Exchange] integration partner as VSNL signs
bilateral Wi-Fi roaming deals with international carriers. This will see VSNL considerably extend Wi-Fi coverage
for its customers as they travel worldwide, as well as providing foreign telcos access to its network of around
300 public hotspots throughout India. Quiconnect will deliver the Wi-Fi technical roaming integration and
implementation services required to deliver this for all parties, branded to the consumer's familiar telecom
provider.

WidSets crosses 1mn-registered users

WidSets is a handset manufacturer-independent service that brings the best bits of
the Internet, such as communities, news, blogs, reviews, and weather reports straight
to the mobile phone. It uses mini-applications called widgets to deliver up to date
Internet content to mobile phones and enables the user to create their own widgets.
WidSets has developed new sharing features for Email and Private Chat. The
comprehensive WidSets library currently has more than 1500 widgets. The widgets deliver an alert when
someone has posted a comment to a blog, informs the user about a traffic jam, and makes it possible to play
games and interact with individual web communities from the mobile phone.

WidSets works on a wide variety of mobile phone brands and is compatible on more than 300 mobile devices.
WidSets was born out of Nokia Emerging Business Unit and represents a first step in Nokia's vision of
mobilizing the Internet.

Airtel cuts ISD rates to USA and Canada

Bharti Airtel Ltd has reduced International Long Distance Tariffs (ISD) by 39% to USA and
Canada for its mobile users in India. With this, all Airtel mobile users can call USA and Canada
at Rs1.99 per minute. This is in line with the Company's endeavour to make International
calling more affordable and deliver greater value to its growing number of mobile users. The
revised tariff is applicable on the Airtel STD and ISD Calling Card worth Rs2245 only.

Kavveri Telecom acquires DCI Digital

Kavveri Telecom Products Ltd has acquired DCI Digital Communications, a Canadian Company that specializes
in Radio Frequency Interference (RFI) products, which reduce interference problems in the 30, MHz to 6 GHz
range. The products designed and manufactured are VHF and UHF Bandpass Filters, Low Pass Filters, Wi-Fi
Filters, Multiple-Window Filters, Combiners, Broadband Duplexers, Tower-Top Amplifiers and CDMA repeaters.
The Company acquired DCI Communications for CAD 2mn and DCI Communications is now a fully owned
subsidiary of the Company. Uma Reddy as President in Canada will head the Company. Acquisition of DCI will
give Kavveri a full product portfolio of Antennas and RF products to cater to the wider customer base of both
Til-Tek and DCI, thereby providing greater penetration of the North American markets. This will also add a
significant number of products in GSM / CDMA and WiMAX markets to Kavveri's portfolio.
BPL offers lowest lifetime prepaid
BPL Mobile has announced ‘India Lifetime 444 MOTS Recharge’ a lifetime prepaid plan
at just Rs444, the lowest in the country. This customer innovation will also enable all
lifetime-prepaid users the benefit of making calls across India to any landline or cellular
service for only Rs1.99 per minute.
This makes BPL Mobile the only cellular service provider to offer subscribers best value through lowest call
rates as well as the lowest lifetime prepaid subscription. BPL Mobile was the first cellular service provider to
spearhead value delivery to subscribers by slashing lifetime rates to Rs666. The India lifetime 444 MOTS
Recharge offer is yet again in line with the value additions the company strives to deliver to its subscribers.

Reliance slash roaming rates by 70%

Reliance has announced slashing of roaming rates by as much as 70%. This move of
Reliance comes close on the heels of launch of the Rs777 monochrome handset, Rs1234
colour handset and the Rs499 Lifetime Recharge Voucher.
The above roaming initiative from Reliance adds to the natural Roaming Advantages that
the company already offers like nationwide network: Pan-India network offering ubiquitous
network coverage to roam in. Multi-lingual Call Centre: Reliance enables its customers to
speak in their preferred language, wherever they travel across the country. Anywhere recharge: Customers
can recharge with vouchers of their home state, whichever part of the country they are traveling in. Data
roaming: Reliance subscribers can access data services and Internet even while roaming at home tariffs.

Agilent Tech introduces six oscilloscopes

Agilent Technologies Inc. introduced six oscilloscopes that break the paradigm of portable
instrumentation. With 1Mpts deep memory, the new 5000 Series oscilloscopes merge high-
resolution, lab-quality waveform acquisition and measurement capability with a lightweight,
portable frame. High-resolution measurements, typically taken with larger, more expensive
instrumentation, can be taken wherever they are needed either in the field or at the bench.
The new DSOs are ideal for engineers working in a broad array of industries, including the
computer, communications, consumer electronics and aerospace/defense markets.
Agilent’s portable deep-memory oscilloscopes allow engineers to discover the root of debug issues notably
faster than those using previous-generation portable oscilloscopes. Architect to achieve a 100,000wfms/s
acquisition rate more than 25 times faster than the next-closest competitor

Dayanidhi Maran resigns from Cabinet

Telecom and IT Minister Dayanidhi Maran resigned following his expulsion from the Dravida Munnetra
Kazhagam (DMK) in what appears to be a major internal party feud. The DMK rules Tamil Nadu and is a
member of the Congress-led ruling coalition at the Centre. According to media reports, a major rift broke out
between the Marans and the Karunanidhi family after three employees of Tamil newspaper Dinakaran, owned
by Maran's brother, were killed last week following an attack on the paper's office by the supporters of one of
Karunanidhi's sons, M.K Azhagiri. Azhagiri's loyalists were furious after the paper published a poll showing that
most people preferred Azhagiri's younger brother, Stalin, to succeed Karunanidhi as the next DMK chief. The
survey gave 70% votes to Stalin, the Local Administration Minister, and 2% votes to Azhagiri, Karunanidhi’s
elder son.
Idea Cellular signs GSM network expansion with Nokia Siemens
Idea Cellular Limited and Nokia Siemens Networks announced signing of a $500mn GSM
network expansion contract. Under the contract, Nokia Siemens Network will expand Idea
Cellular's GSM/GPRS/EDGE networks to cover population centres across six circles of Delhi,
Haryana, UP East, UP West, Andhra Pradesh and Kerala.
The 2 years contract includes supply and services of GSM equipment, Intelligent Network, Value
Added Services and Circuit and Packet core equipment. Nokia Siemens Networks will deploy the latest state of
art equipment like flexi BTS, mini-ultra base stations, Release 4 architecture, media gateways and MSS
servers.

Nokia Siemens Networks brings together two major wireless and fixed technology players, Nokia's Networks
Business Group, and the carrier related businesses of Siemens Communications. It is ready to serve customers
with a best-in-class portfolio that is underpinned by a strong presence in the growing services market, a
powerful global R&D team, and a huge global installed base.

QUALCOMM and DigiBee ink pact

QUALCOMM Incorporated, a leading developer and innovator of Code Division
Multiple Access (CDMA) and other advanced wireless technologies, has announced
that it has signed a CDMA2000 subscriber unit and modem card license agreement
with DigiBee Microsystems Inc., a Delaware corporation.
Under the terms of the worldwide, royalty-bearing agreement, QUALCOMM has granted DigiBee Microsystems
a patent license to develop, manufacture and sell CDMA2000 subscriber units and modem card products.
DigiBee will initially focus on products for the Indian market. The royalties payable by DigiBee Microsystems
are at QUALCOMM's standard worldwide royalty rates.

Idea launches unlimited validity offer on prepaid for Rs495

Idea Cellular, an Aditya Birla Group Company, has launched the most competitive prepaid offering in the
cellular space with the unlimited validity offer of Rs495 for new and existing customers.
With an initial talk time of Rs10 the offering is all encompassing with local and landline calls at Rs1.99, and
STD at Rs2.75. SMS messages will be priced at Rupee1 for local, Rs2 for national and Rs5 for international
SMS messages.

Motorola unveils RAZR2, ultimate iconic feature phone

Motorola unveiled RAZR2, the ultimate iconic feature phone that will be available by July 2007 in
several markets. The next-generation device packs cutting-edge features such as CrystalTalk
technology, up to 2GB of on-board memory, Web browsing, real-time point-to-point video and
ultra-fast menu navigation, all packed into a slimmer, stronger, sleeker design.
The multi-shot feature5 on the handset’s 2.0-megapixel camera automatically snaps up to eight
new pictures so users can choose the best image from a complete series of pictures. A new real-
time point-to-point video feature allows another wireless customer to “See What I See” 9 while a voice call is
in progress. Consumers can also store up to 2 hours of video and 4 footages on the device.

Virgin Mobile to enter into JV with Tata Tele

Virgin Mobile is set to be partnering with the Tata Group for a 50:50 joint venture. Tata
Teleservices, the telecom arm of the Mumbai-based conglomerate, will launch the Virgin Mobile
brand in India through the proposed joint venture. Virgin Mobile, part of British communications
group Virgin Media, would license its brand and technology expertise in value-added services
and handsets to Tata Teleservices.
Tata Indicom will be positioned as a mass-market brand; Virgin will be targeted at the more upwardly mobile
customers.
Bleu-Sagem launches new Bleu-Sagem MY214X
Pratham telecom, National Distributors for Bleu-Sagem have launched the new Bleu-
Sagem MY214X. The Bleu-Sagem MY214X is an ideal entry-level phone has. But what
truly set it apart are the high quality iball multimedia speakers that enable you to play
loud FM music right from your basic mobile phone. Aptly called ‘Hamara FM’ the phone is
literally your very personal mobile stereo.
The tasteful ‘Made in France’, Bleu-Sagem Handset MY214X with a 65,000 128-x128-
colour display, is embedded with and supports downloads of Vocal ring tones so you can play the song you like
as your ring tone. Besides GPRS / MMS / and up to 500 phone book memory the phone comes with a built in
Sudoku- a game. One can test logic and math skills while listening to FM, all at the same time.
800 Valuflex Service
800 Valuflex Service is a service provided by former Nynex (NYNEX Corporation was acquired by Bell Atlantic
Corporation (BNTR) on 8/14/1997). This service allows customer to make and receive regular phone calls and
800 number calls from local areas on their normal business phone lines. This allows customers to combine the
regular business phone line (usually have regular non-800 phone number) with 800 number service to the
same business phone without adding additional phone line. In the meantime, the 800 number calls can also
share all the call features that the normal business phone line would have without subscribing them
separately.

3G: Third Generation Wireless Technology

3G stand for the third generation of wireless communication technologies, which support broadband voice,
data and multi-media communications over wireless networks. Main 3G standards include CDMA2000, WCDMA,
UMTS, etc.

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