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

1. DLI Business Scenario
(AAPAC)

2. India

3. Subscriber Growth - 10 Years
*
* Data for 19 months (upto Oct ‘11)

4. Tele-density Growth - 10 Years

5. Tele-density Growth – analysis
Rural growth will drive future business

6. Subscriber additions / month - last 12 months
(In Mn)

7. Yearly Subscriber Additions
Subscriber Growth / year (Mn)
(Est.)

8. Tele-density geographical spread
Average Teledensity
324% 64%
84% 50%
Source : Telecom Live – December 2011, data as of October 31, 2011

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 0.0
Source : Telecom Live – December 11 ; data as of October 31, 11

10. Current Telecom Scenario
India is the fastest growing Telecom market in the world
• 750 million Telephones added in 10 years
• Population of 1.2 billion – significant future growth potential
Hyper-competition – 14 operators
Although India added 230 million subscribers in 2010 the revenue only grew
by 4%
Lowest tariffs in the world – ARPU currently at 2.2 USD / mth (tariffs have
started to increase lately)
1 Lac Cr ($ 22 billion) invested on 3G and BWA license
Adoption (& availability) of 3G is slow
Cash flows are constrained – Capex on freeze
CAPEX reduced by almost 25% in 2011 over previous year
FDI in Telecom USD 1.7 b in FY 2011 Vs. USD 2.6 b in 2010
NTP 2012 is aimed at making M&A lax. Number of operators expected to
come down to 6 from 14

11. Current Telecom Scenario
Telcos aiming to enhance network to provide 3G services to increase
ARPU
Total 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 backhaul
Additional 100,000 telecom towers are required for 4G which must have
Fiber for high data rates
BWA Players are expected to roll out their 4G (LTE/WiMax) Networks in
2012 / 13
The lead 4G player RIL (license in 22 Circles) will invest US $ 4.5 Billion in
next five years on BWA infrastructure

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 1
Tata teleservices 9 48 3 11
Vodafone 9 60 4 14

13. Business Drivers - 2012-2014
FTTH
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. Business Drivers - 2012-2014
NOFN (National Optical Fiber Network )
India's 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. Business Drivers - 2012-2014
Defense
India's BSNL tendered for a 76.5 billion rupee ($1.65 billion)
contract to build India's 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. NTP 2012 and its impact
Provide ‘broadband on demand’ by 2015
Achieve target of 175 million broadband users by 2017 and 600
million by 2020
To promote R&D & product development in telecom
To make India a global hub for telecom equipment manufacturing
Increase rural tele-density from 35% to 60% by 2017 and to 100% by
2020
80% of telecom networks to be domestically manufactured by 2020
Address the Right of Way issues in setting up of telecom
infrastructure
Relaxed M&A norms to allow consolidation

17. Industry analysis - Bharti Airtel
Market share has shrunk to 21.73 % (191 Mn subscribers ) from
25% in 2009
Invested 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 Km
Launching BOT Model for Fiber Networks
Bharti's EBITDA is down by 20% on account of low tariff
Increased call rates first time in the history

18. Industry analysis - Vodafone Essar
Under severe financial stress due to cash commitments on 3G
auction (acquired at $ 116.2 Mn) and also impending tax Liability
case ($ 2.5 billion)
Network rollouts are all time low at 4000 Km in FY 10, continues to
be subdued in FY 11
Hiked tariff by 20% in 12 circles to improve ARPU’s

19. Industry analysis - Idea Cellular
Won 3G license for 11 circles (81% of its revenue)
The third largest mobile services provider in revenue terms
Leads the Indian market in MNP conversion with net gain of nearly
825,000 customers as on 30th June, 2011
Revenue share has gone up from 9.7% to 12% in FY 2010
Entered into a roaming agreement with Airtel & Vodafone for 3G
Total Fiber optic network is 42,000 Rkm of which 50% is swapped
Roll-outs are limited to 3G circles only

20. Industry analysis - Aircel
Fastest growing operator with 9% market share in a span of two
years
Aircel has close to 60 million customers and 2G spectrum licenses
to operate in 22 circles across India
Won 3G auction in 13 circles
Actively focused on IP Networks as voice is commoditized
Revenues of Rs 5600 crore in 2010 - net loss of Rs 260 cr
The company is likely to have total debt of close to Rs 17,000 crore
this year
Company is going through a severe financial crisis – close to
defaulting loan servicing
RIL is considering an acquisition of Aircel

21. Industry analysis - Reliance Infotel
RIL Infotel won Pan India (22 Circles) BWA spectrum (2X20MHz) for
providing Wi-Max / LTE services
In a 4G connection a download speed of 80 Mbps and upload speed of 20
Mbps is possible
This will require intercity BTS tower connectivity on fiber besides a
national fiber optic backbone
Seriously considering acquisition of an existing company to get fiber
network
Reliance has in-house duct manufacturing

22. OPEX of different operators

23. Capex - Telcos

24. India 2012 Business Strategy

25. Enhancement of Enterprise & Value Added
Services Business
Utility Corridors - FiberWays
HTMS – turnkey
Gas Pipeline – telecom networks
Railway Freight Corridor
AT Services
Airfield Lighting Services – turnkey
Turnkey FTTH Solutions

26. Indian Business Diversification –
Telcos Vs Enterprise Business
2011 2012

27. Mid-East, SEA and Pacific

28. Kuwait Qatar
MOC FTTH project QNBN FTTH initiative
KOC Gas Pipeline
Middle East
KSA UAE
STC FTTH program Du Fiber Network
Iraq, Basrah Egypt
500 MT Duratrac FTTH Project

29. Nepal
Bangladesh
NTC – 2000 kms Fiber Network
Summit – FTTH project
NCell – 1000 kms Fiber Network
WASA, (1000 MT potential)
ADB Funded pipeline project (500
Dredging Project (350 MT)
MT potential)
SAARC
Bhutan Sri Lanka
Pipeline project (500 MT Dailog
potential) China Harbour

30. SEA & Pacific
• UFB $ 1.35 billion initiative launched by Govt.
• Chorus (70% share)
• Wel Networks
New • Enable
Zealand • North power
• Ericsson and Huawei – awarded contracts
• Aiming to sign GPA with both
• Significant potential for FuturePath for next 5 years

31. SEA & Pacific
• Govt. initiated NBN initiative to provide 85% of
population on 100 Mbps connectivity
• Network roll-out yet to commence
Australia
• Dura-Line is working closely with Pipe Networks (Dark
Fiber company, 4th largest network in Australia)
• Mining sector is another key potential area

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
Services
Philippines • 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. SEA & Pacific
• Telkom planning FTTH roll-out to connect 50000 homes between
2012-13
• Primacom having a project 900km, scheduled to be finalized by
Indonesia 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 ducting
Thailand • Dura-Line has implemented & working on major oil pipeline
projects like
• PTT 4th pipeline project.
• Zawatika pipeline project

34. AFRICA

35. Hub of Major Activity – Under Sea Cable Landing
Nigeria: SAT3/WASC/SAFE; MAIN ONE; GLO1; WACS; ACE
DRC: WACS, ACE
Congo B: WACS, ACE
Uganda: SEACOM
Ghana: SAT3/WASC/SAFE; MAIN ONE; GLO1; WACS
Kenya: TEAMs; SEACOM; EASSY
Gabon: SAT3/WASC/SAFE; MAIN ONE; ACE
Angola: MAIN ONE; WACS; SAT3/WASC/SAFE
Namibia: ACE
Cameroon: SAT3/WASC/SAFE; WACS; ACE

37. Focus
Countries
in
Africa
Airtel
Non-Airtel

38. Business Potential Airtel & RoA (2012-13) - 15,000
Kms

39. Strategy – Africa
Establish local manufacturing facility to maintain
market share & acquire new businesses:
South Africa &
COMMESA
Establish Pan-Africa relationship with
Vodacom, MTN, Tigo
Long Term partnership with Huawei – emerging as
major Network Roll-out Contractor pan Africa

40. Summary

41. 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

42. Significant customer relationships
Dartcom/DFA - Dominant (near exclusive)
ALU - Global Purchase agreement in place
NSN - Preferred Vendor status for SEA
Ericsson - Global Purchase Agreement in process
Huawei - Purchase agreement in process for Oceania
- On approved vendor list in Bangladesh & Iraq
TM - Preferred vendor, only vendor technically
approved
Airtel, IDEA, Tata - 80 to 90% market share
Aircel - Exclusive partner
Vodafone - Dominant share - India, South Africa & Tanzania
South Africa - Dominant market share of MicroDuct business
Airtel Africa - Exclusive partner

43. Indian Business Diversification –
Telcos Vs Enterprise Business
2011 2012

44. Geography Diversification –
Domestic Telecom Vs Exports
2011
2012

45. 2012 Estimate –
Telecom & Enterprise Business Mix

46. 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

47. 2012 Estimate
Product Mix - Exports
Fluid Fluid Pipes
Pipes Accessories Standard
DWC 0%
Acces. 2% Ducts
DWC 4% Std. 3% 11%
1%
13% Ducts
31%
Micro Micro
Tech. Technology
51% 84%
SALES EBITDA

48. Dura-Line