Caspian Opportunities & Challenges

Eugene PradasVP, Global Voice Sales Europe

April 2010

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In a tough global economic climate, carriers face challenges, but also many opportunities for growth

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Telcos also face a range of potentially disruptive competitors

AOL

Yahoo!

Altnets / cablecos

Retail brands

Google

Microsoft (MSN)

Skype

Social networks Wireless

operators

IT services / SIs

Devicevendors

Minimal impact Moderate impact Significant impact

Sign

ificant

disruptionM

oderatedisruption

Minim

aldisruption

Impact on wireline telcos

Pot

entia

l for

dis

rupt

ion

Source: Ovum

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International Voice Industry Trends

• is estimated to carry 8% of the world’s international voice traffic

• Mobility to remain the high-growth segment

. Ovum predicts 280 B mins of Int. VoIP by 2012

Carriers need to respond to a changing industry with innovative services, strategies and business models

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International Voice Industry Challenges

• Traffic management complexity

• Margin decreasing while risk is increasing

• Profitability through IP and NGN

• Meeting new customer requirements

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India Telcos Face Unique Challenges of growth

• Pricing pressures remain strong, as MNOs seek to expand the potential user base for their services

• Mobile subscriber growth rates remain strong, but customers demand new, differentiated services such as mComerce and video

• Customer acquisitions• Growing ARPU• Innovative solutions

…. to remain focus on key business areas

7

So…

… the solutions are… the solutions are

• Economic situation still challenging

• Entry of disruptive players

• Slow down in addressable market grow

• New technologies

• More complexity

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Evolving Cooperatively to an IP World

– 37 member carriers from around the globe

– Members collectively carry more than 80% of the world’s international voice traffic

– Focused on pragmatic guidelines for a smooth, efficient and speedy transition to IP

– Multiple working groups

– IPX Technical & Commercial specifications to facilitate the global interworking of IP services

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Enabling Next-Generation Services with Network Investment

• Unified global IP switching network– Tata Communications has NGN infrastructure rolled out in 12 cities

to date

• VoIP interworking expertise– More than 90% of Tata Communications’ traffic touches IP

– Both VoIP and TDM interconnects deployed over the NGN

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Addressing Critical Growth Segments with New Services

Voice Peering• Expanding the community of on-net users for VoIP and IPT providers• Access Services for Conferencing Providers

IPX Interconnection • Enabling the full potential of mobile data offerings with flexible and converged

interconnection models

Mobile Video Telephony• Enabling seamless transport of mobile video telephony calls, ensuring a high-quality

image

Telepresence• HD Voice and Video on equipment

Managed Security Services• Monitoring & management of traffic on various security aspects

Televoting• Access into the lucrative interactivity-based Televoting market

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Ensuring Efficient Termination To Number Portability Destinations

• More than 50 countries have implemented number portability for fixed or mobile networks - or both

• Rates of ported numbers range as high as 58% in Finland and over 100% in Hong Kong

• There is no global standard for the implementation of number portability

All Call Query

12Global Voice Solutions 12

Wholesale providers have to:

grow big and smart“While voice traffic continues to grow, and a greater proportion of it is being carried by wholesalers, declining prices and the migration to VoIP are negatively impacting revenues…Carriers of wholesale voice must therefore choose between becoming bigger and more efficient, or leaving the market to those that can.”

- Ovum, 2009

“Smart wholesale focuses on services that extract better quality, performance, intelligence and analytics from network and IT assets. But that’s not all. Smart wholesale enables service differentiation and innovation. That’s powerful because it’s about growing top-line revenues.”

- Yankee Group, 2009

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International Voice Strategic Sourcing Benefits

• Reduced exposure to risk in low-margin business sector

• Access to economies of scale

• Ability to focus on core areas of expertise, including building customer relationships, driving revenue from on-net terminations and enhancing value-added services

• Access to new suite of services, especially with transition to IP

• Access to market leading technology and traffic management systems

• Share of Network infrastructures

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“This is what I call ‘smart wholesale’ for both BT and Tata Communications.”

-Camille Mendler, Yankee Group

Management of International Direct Dial termination traffic for BT outside of home footprint

Tata Communications Delivers

Tata Communications Gains

Improved sales channel within the UK market

Insight and expertise in key market

Additional scope to develop core capability

Access to greater efficiencies of scale

Advanced routing and management capabilities

Improved focus on core business growth

BT GainsBT Gains

BT DeliversBT Delivers

Main distribution channel for Tata Communications in the UK market

Strategic Agreement with BT for International Voice Services

Focus on your core business

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In a collaborative future, ensure you have

a partner with the right vision and tools