DLI Business Scenario    (AAPAC)
India
Subscriber Growth - 10 Years                                         *   * Data for 19 months (upto Oct ‘11)
Tele-density Growth - 10 Years
Tele-density Growth – analysis      Rural growth will drive future business
Subscriber additions / month - last 12 months                                           (In Mn)
Yearly Subscriber Additions                              Subscriber Growth / year (Mn)                   (Est.)
Tele-density geographical spread                                     Average Teledensity                              324%...
Market Share %                                             Wireless                     Wireline                       Ope...
Current Telecom ScenarioIndia is the fastest growing Telecom market in the world • 750 million Telephones added in 10 year...
Current Telecom ScenarioTelcos aiming to enhance network to provide 3G services to increaseARPUTotal number of Towers - 3,...
The potential 3 G Impact                                                              (in %)                              ...
Business Drivers - 2012-2014FTTH  BSNL has launched an initiative of providing FTTH connection to  800,000 homes in select...
Business Drivers - 2012-2014NOFN (National Optical Fiber Network )  Indias Department of Telecommunications has proposed s...
Business Drivers - 2012-2014Defense  Indias BSNL tendered for a 76.5 billion rupee ($1.65 billion)  contract to build Indi...
NTP 2012 and its impactProvide ‘broadband on demand’ by 2015Achieve target of 175 million broadband users by 2017 and 600m...
Industry analysis - Bharti AirtelMarket share has shrunk to 21.73 % (191 Mn subscribers ) from25% in 2009Invested Rs. 156 ...
Industry analysis - Vodafone EssarUnder severe financial stress due to cash commitments on 3Gauction (acquired at $ 116.2 ...
Industry analysis - Idea CellularWon 3G license for 11 circles (81% of its revenue)The third largest mobile services provi...
Industry analysis - AircelFastest growing operator with 9% market share in a span of twoyearsAircel has close to 60 millio...
Industry analysis - Reliance InfotelRIL Infotel won Pan India (22 Circles) BWA spectrum (2X20MHz) forproviding Wi-Max / LT...
OPEX of different operators
Capex - Telcos
India 2012 Business Strategy
Enhancement of Enterprise & Value AddedServices BusinessUtility Corridors - FiberWaysHTMS – turnkeyGas Pipeline – telecom ...
Indian Business Diversification –Telcos Vs Enterprise Business       2011                         2012
Mid-East, SEA and Pacific
Kuwait                        QatarMOC FTTH project             QNBN FTTH initiativeKOC Gas Pipeline                   Mid...
Nepal       Bangladesh                                NTC – 2000 kms Fiber Network Summit – FTTH project                  ...
SEA & Pacific          • UFB $ 1.35 billion initiative launched by Govt.            • Chorus (70% share)            • Wel ...
SEA & Pacific            • Govt. initiated NBN initiative to provide 85% of              population on 100 Mbps connectivi...
SEA & Pacific              • TM’s HSBB initiative of US$ 1.2bn to connect 30% of 30mn population                on fiber  ...
SEA & Pacific            • Telkom planning FTTH roll-out to connect 50000 homes between              2012-13            • ...
AFRICA
Hub of Major Activity – Under Sea Cable LandingNigeria: SAT3/WASC/SAFE; MAIN ONE; GLO1; WACS; ACEDRC: WACS, ACECongo B: WA...
Focus             Countries                    in                AfricaAirtelNon-Airtel
Business Potential Airtel & RoA (2012-13) - 15,000Kms
Strategy – AfricaEstablish local manufacturing facility to maintainmarket share & acquire new businesses: South Africa & ...
Summary
Salient differentiators      Product Innovator       • 40/34.2 duct       • TornadoPlus       • iDuct       • DuraSure    ...
Significant customer relationshipsDartcom/DFA             - Dominant (near exclusive)ALU                     - Global Purc...
Indian Business Diversification –Telcos Vs Enterprise Business       2011                         2012
Geography Diversification –Domestic Telecom Vs Exports     2011                              2012
2012 Estimate –Telecom & Enterprise Business Mix
2012 Estimate       Country Mix - Exports   SEA &   OCEANIA             Rest of           MENA SEA   SAARC     6%         ...
2012 Estimate  Product Mix - Exports    Fluid                        Fluid Pipes    Pipes                                 ...
Dura-Line
Paresh presentation jan 2012
Upcoming SlideShare
Loading in …5
×

Paresh presentation jan 2012

672 views

Published on

Shankar - fro reference please. This is what we presented to Paresh last time.

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
672
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
14
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Paresh presentation jan 2012

  1. 1. DLI Business Scenario (AAPAC)
  2. 2. India
  3. 3. Subscriber Growth - 10 Years * * Data for 19 months (upto Oct ‘11)
  4. 4. Tele-density Growth - 10 Years
  5. 5. Tele-density Growth – analysis Rural growth will drive future business
  6. 6. Subscriber additions / month - last 12 months (In Mn)
  7. 7. Yearly Subscriber Additions Subscriber Growth / year (Mn) (Est.)
  8. 8. Tele-density geographical spread Average Teledensity 324% 64% 84% 50%Source : Telecom Live – December 2011, data as of October 31, 2011
  9. 9. Market Share % Wireless Wireline Operators Oct 10 Oct 11 % change Oct 10 Oct 11 % change 20.87 19.82 -1.1 9.07 9.76 0.7 17.03 16.90 -0.1 3.40 3.07 -0.3 16.84 16.65 -0.2 0 0 0.0 11.53 10.02 -1.5 3.5 4 0.5 11.45 11.09 -0.4 83.39 81.82 -1.6 10.85 11.62 0.8 0 0 0.0 6.78 6.88 0.1 0 0 0.0 1.96 3.69 1.7 0 0 0.0 1.02 1.60 0.6 0.11 0.13 0.0 0.80 0.69 -0.1 0 0 0.0 0.43 0.37 -0.1 0 0 0.0 0.26 0.40 0.1 0 0 0.0 0.162 0.13 0.0 0.51 0.58 0.1 0.01 0.18 0.2 0 0 0.0Source : Telecom Live – December 11 ; data as of October 31, 11
  10. 10. Current Telecom ScenarioIndia is the fastest growing Telecom market in the world • 750 million Telephones added in 10 years • Population of 1.2 billion – significant future growth potentialHyper-competition – 14 operatorsAlthough India added 230 million subscribers in 2010 the revenue only grewby 4%Lowest tariffs in the world – ARPU currently at 2.2 USD / mth (tariffs havestarted to increase lately)1 Lac Cr ($ 22 billion) invested on 3G and BWA licenseAdoption (& availability) of 3G is slowCash flows are constrained – Capex on freezeCAPEX reduced by almost 25% in 2011 over previous yearFDI in Telecom USD 1.7 b in FY 2011 Vs. USD 2.6 b in 2010NTP 2012 is aimed at making M&A lax. Number of operators expected tocome down to 6 from 14
  11. 11. Current Telecom ScenarioTelcos aiming to enhance network to provide 3G services to increaseARPUTotal number of Towers - 3,58,000  Only 10% are connected with Fiber  At-least 15% (50K) additional towers will have to be connected on fiber for reasonable 3G backhaulAdditional 100,000 telecom towers are required for 4G which must haveFiber for high data ratesBWA Players are expected to roll out their 4G (LTE/WiMax) Networks in2012 / 13The lead 4G player RIL (license in 22 Circles) will invest US $ 4.5 Billion innext five years on BWA infrastructure
  12. 12. The potential 3 G Impact (in %) Current connections 3G 3G 3 G Circle Operators covered by 3 G Market Market Licenses License (%) 2011 2014 Aircel 13 90 3 10 Airtel 13 65 6 20 BSNL 16 100 67 22 Idea 11 77 3 11 MTNL 2 100 10 2 Reliance 13 49 2 9 STEL 3 100 0.2 1Tata teleservices 9 48 3 11 Vodafone 9 60 4 14
  13. 13. Business Drivers - 2012-2014FTTH BSNL has launched an initiative of providing FTTH connection to 800,000 homes in select towns. The Network Architecture is based on Dura-Line design and products. Dura-Line is playing an active role in the success of this initiative. It is expected that this will trigger off large scale FTTH deployment in the country with Private Sector Telecom Operators and Builders. This will generate significant business for our MicroDuct products.
  14. 14. Business Drivers - 2012-2014NOFN (National Optical Fiber Network ) Indias Department of Telecommunications has proposed setting up of a national optical fiber network at a cost of about INR200 billion (5,00,000 kms) The objective of the scheme is to extend the existing optical fiber network which is available up to district / block HQ’s level to the Gram Panchayat (village office) This network will help the government to achieve its target of broadband penetration of 160 million by 2014
  15. 15. Business Drivers - 2012-2014Defense Indias BSNL tendered for a 76.5 billion rupee ($1.65 billion) contract to build Indias defense fiber network to a consortium led by Vindhya Telelinks The network, which will involve the deployment of around 57,000km of fiber across the country, will be used to serve the bulk of the communications requirements of the defense forces
  16. 16. NTP 2012 and its impactProvide ‘broadband on demand’ by 2015Achieve target of 175 million broadband users by 2017 and 600million by 2020To promote R&D & product development in telecomTo make India a global hub for telecom equipment manufacturingIncrease rural tele-density from 35% to 60% by 2017 and to 100% by202080% of telecom networks to be domestically manufactured by 2020Address the Right of Way issues in setting up of telecominfrastructureRelaxed M&A norms to allow consolidation
  17. 17. Industry analysis - Bharti AirtelMarket share has shrunk to 21.73 % (191 Mn subscribers ) from25% in 2009Invested Rs. 156 billion ($ 3.5 billion) on 3G license in 13 circles(68% of annual Revenue)Acquired Zain Africa (16 countries for $ 11 billion)Focus is on Africa because of poor fiber network and high potential(ARPU 7.3 $)Domestic fiber network now at 1,13,000 KmLaunching BOT Model for Fiber NetworksBhartis EBITDA is down by 20% on account of low tariffIncreased call rates first time in the history
  18. 18. Industry analysis - Vodafone EssarUnder severe financial stress due to cash commitments on 3Gauction (acquired at $ 116.2 Mn) and also impending tax Liabilitycase ($ 2.5 billion)Network rollouts are all time low at 4000 Km in FY 10, continues tobe subdued in FY 11Hiked tariff by 20% in 12 circles to improve ARPU’s
  19. 19. Industry analysis - Idea CellularWon 3G license for 11 circles (81% of its revenue)The third largest mobile services provider in revenue termsLeads the Indian market in MNP conversion with net gain of nearly825,000 customers as on 30th June, 2011Revenue share has gone up from 9.7% to 12% in FY 2010Entered into a roaming agreement with Airtel & Vodafone for 3GTotal Fiber optic network is 42,000 Rkm of which 50% is swappedRoll-outs are limited to 3G circles only
  20. 20. Industry analysis - AircelFastest growing operator with 9% market share in a span of twoyearsAircel has close to 60 million customers and 2G spectrum licensesto operate in 22 circles across IndiaWon 3G auction in 13 circlesActively focused on IP Networks as voice is commoditizedRevenues of Rs 5600 crore in 2010 - net loss of Rs 260 crThe company is likely to have total debt of close to Rs 17,000 crorethis yearCompany is going through a severe financial crisis – close todefaulting loan servicingRIL is considering an acquisition of Aircel
  21. 21. Industry analysis - Reliance InfotelRIL Infotel won Pan India (22 Circles) BWA spectrum (2X20MHz) forproviding Wi-Max / LTE servicesIn a 4G connection a download speed of 80 Mbps and upload speed of 20Mbps is possibleThis will require intercity BTS tower connectivity on fiber besides anational fiber optic backboneSeriously considering acquisition of an existing company to get fibernetworkReliance has in-house duct manufacturing
  22. 22. OPEX of different operators
  23. 23. Capex - Telcos
  24. 24. India 2012 Business Strategy
  25. 25. Enhancement of Enterprise & Value AddedServices BusinessUtility Corridors - FiberWaysHTMS – turnkeyGas Pipeline – telecom networksRailway Freight CorridorAT ServicesAirfield Lighting Services – turnkeyTurnkey FTTH Solutions
  26. 26. Indian Business Diversification –Telcos Vs Enterprise Business 2011 2012
  27. 27. Mid-East, SEA and Pacific
  28. 28. Kuwait QatarMOC FTTH project QNBN FTTH initiativeKOC Gas Pipeline Middle East KSA UAESTC FTTH program Du Fiber Network Iraq, Basrah Egypt500 MT Duratrac FTTH Project
  29. 29. Nepal Bangladesh NTC – 2000 kms Fiber Network Summit – FTTH project NCell – 1000 kms Fiber NetworkWASA, (1000 MT potential) ADB Funded pipeline project (500Dredging Project (350 MT) MT potential) SAARC Bhutan Sri Lanka Pipeline project (500 MT Dailog potential) China Harbour
  30. 30. SEA & Pacific • UFB $ 1.35 billion initiative launched by Govt. • Chorus (70% share) • Wel Networks New • EnableZealand • North power • Ericsson and Huawei – awarded contracts • Aiming to sign GPA with both • Significant potential for FuturePath for next 5 years
  31. 31. SEA & Pacific • Govt. initiated NBN initiative to provide 85% of population on 100 Mbps connectivity • Network roll-out yet to commenceAustralia • Dura-Line is working closely with Pipe Networks (Dark Fiber company, 4th largest network in Australia) • Mining sector is another key potential area
  32. 32. SEA & Pacific • TM’s HSBB initiative of US$ 1.2bn to connect 30% of 30mn population on fiber • Ist phase 1.3mn to be done through 2013 • Roll outs to start by Feb 2012 Malaysia • Dura-Line first and only company to be technically approved with TM • SIRIM (technical approval agency for TM): standardized Dura-Line testing facilities and has requested to use facilities for testing samples of other manufacturers • San-Miguel (beverage conglomerate) is getting into Telecom ServicesPhilippines • San-Miguel plans 5000km of backbone project to commence in 2012 • Dura-Line is aggressively pursuing business in this market through a local partner
  33. 33. SEA & Pacific • Telkom planning FTTH roll-out to connect 50000 homes between 2012-13 • Primacom having a project 900km, scheduled to be finalized byIndonesia Feb 2012 • Partnership established with Corning Fiber licensee • Strong relations with NSN • Strongly positioned in the Oil Pipeline segment • Limited requirements in Telcos as 80% of installation is aerial and without ductingThailand • Dura-Line has implemented & working on major oil pipeline projects like • PTT 4th pipeline project. • Zawatika pipeline project
  34. 34. AFRICA
  35. 35. Hub of Major Activity – Under Sea Cable LandingNigeria: SAT3/WASC/SAFE; MAIN ONE; GLO1; WACS; ACEDRC: WACS, ACECongo B: WACS, ACEUganda: SEACOMGhana: SAT3/WASC/SAFE; MAIN ONE; GLO1; WACSKenya: TEAMs; SEACOM; EASSYGabon: SAT3/WASC/SAFE; MAIN ONE; ACEAngola: MAIN ONE; WACS; SAT3/WASC/SAFENamibia: ACECameroon: SAT3/WASC/SAFE; WACS; ACE
  36. 36. Focus Countries in AfricaAirtelNon-Airtel
  37. 37. Business Potential Airtel & RoA (2012-13) - 15,000Kms
  38. 38. Strategy – AfricaEstablish local manufacturing facility to maintainmarket share & acquire new businesses: South Africa & COMMESAEstablish Pan-Africa relationship withVodacom, MTN, TigoLong Term partnership with Huawei – emerging asmajor Network Roll-out Contractor pan Africa
  39. 39. Summary
  40. 40. Salient differentiators Product Innovator • 40/34.2 duct • TornadoPlus • iDuct • DuraSure Cable Blowing / Turnkey Services FTTH Design and Deployment Services • MicroTrenching AT comprehensive services Dura-Line Plumettaz Fiber Academy
  41. 41. Significant customer relationshipsDartcom/DFA - Dominant (near exclusive)ALU - Global Purchase agreement in placeNSN - Preferred Vendor status for SEAEricsson - Global Purchase Agreement in processHuawei - Purchase agreement in process for Oceania - On approved vendor list in Bangladesh & IraqTM - Preferred vendor, only vendor technically approvedAirtel, IDEA, Tata - 80 to 90% market shareAircel - Exclusive partnerVodafone - Dominant share - India, South Africa & TanzaniaSouth Africa - Dominant market share of MicroDuct businessAirtel Africa - Exclusive partner
  42. 42. Indian Business Diversification –Telcos Vs Enterprise Business 2011 2012
  43. 43. Geography Diversification –Domestic Telecom Vs Exports 2011 2012
  44. 44. 2012 Estimate –Telecom & Enterprise Business Mix
  45. 45. 2012 Estimate Country Mix - Exports SEA & OCEANIA Rest of MENA SEA SAARC 6% Africa 8% 2% SAARC 11% 11% 2% Aus-NZL South 8%MENA Africa 16% 43% Rest of Africa South Africa 24% 69% SALES EBITDA
  46. 46. 2012 Estimate Product Mix - Exports Fluid Fluid Pipes Pipes Accessories Standard DWC 0% Acces. 2% DuctsDWC 4% Std. 3% 11% 1%13% Ducts 31%Micro MicroTech. Technology 51% 84% SALES EBITDA
  47. 47. Dura-Line

×