Vikram KaushikManaging Director & CEO

Tata Sky Ltd.

In India it has taken DTH 5 years to get to 6 million plus subscribers!

0

0.5

1

2

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1.5

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Aug-06

Oct-06

Dec-06

Feb-07

Apr-07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Millio

ns (S

ubs.

)And Tata Sky crossed 2 Million subscribers in And Tata Sky crossed 2 Million subscribers in 20 months… the fastest subscriber ramp-up 20 months… the fastest subscriber ramp-up ever by a DTH platform ever by a DTH platform

The Indian Telecom miracle took 6 years to reach half the DTH number

Wireless Subscriber GrowthSource : COAI Data

INDIA… 165 Mn Pay TV HHs by 2015

46%

61%

84% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2006 2011 2015

Pay TV Penetration/TV HH

• Penetration will double

• Revenues will quadruple

Source :MPA report, March 2007

320%18.44.3USD Bn.Growth20152005

PAY TV REVENUES

320%18.44.3USD Bn.Growth20152005

PAY TV REVENUES

0.06 0.18 0.75 1.9254.8

9.8

15

20.9

26.1

30.4

33.836.2

37.6

0

5

10

15

20

25

30

35

40

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Year

Subs

crib

ers

(Mill

ions

)

2007 to 2015…Growth of 683 %

Source : MPA report , March 2007

The DTH category is expected to grow by 680% or so in the next 7 or 8 years!

In 5 years…We have managed to overtake Japan

as the largest DTH market in Asia

And in the next 5 years (by 2012) we will be

able to add another 30 million subscribers

(which is about the same as the population of Belgium, Portugal and Greece put-

together!)

DTH is a nascent category in its growth phase

Playing the volume game… DTH in India

Indian cable TV subscribers are currently spending about 1.5 - 2% (US$ 4 - 5) of their monthly income on cable services

Globally, consumers spend 3 - 4% of their monthly income on pay television services

While this indicates a sizeable growth opportunity, only a mass service can achieve the economies of

scale to fully exploit the market potential

This clearly is expensive business(At least in the short-medium run)

• Rise in Disposable Incomes 75% percent rise in per capita income ( 1990 – 2007)

Source: NCAER

• Appetite for Entertainment is growing $25 Billion being spent annually by Indians on travel 45 Million credit card subscribers growing at 35% annually 10 Million color TVs sold annually 125 Million TV homes ….have doubled in last 6 years

• Rapid adoption of new technologies by Indians 5 - 6 Million mobile phone subscribers are added every month 350,000 Satellite TV subscribers added every month

But , the Indian market is changing

DTH …congruence of interests for all stakeholders

Consumers

Consistent and professional service Superior video / audio quality Multiple channel packages to choose from Interactivity Access to niche content Movies on pay-per-view – 800 films produced in India every year Ability to move anywhere across India w/o buying a new STB Extensive rural reach

Broadcasters

Transparent / auditable platform with no under-declaration New revenue stream Convenience of dealing with a single operator rather than with multiple

MSOs Will minimize piracy

Government

Plug the tax leakage through declaration

Additional source of revenue – license fee payable by DTH operators

With its proven, superior technology, value added services & professional customer

service

Along with the ability to offer all India coverage at low incremental per subscriber

cost

(upgrading cable infrastructure across India will need huge investments & appeal of Broadband service will be

limited to metros & large cities) DTH is set to win…

Finding the perfect mix for DTH

Monetising volumes. Improving ARPU.

Reach1

Brand Building

VAS2 Customer Service3

• National coverage (Urban & Rural)

• Subscriber Mgmt

Payment, Renewals, Recoveries

• Focus on Interactive Services

• PPV• Alerts • Red Button

promos• New

Innovations

• Outstanding Customer Service at all Touch Points

24/7 Call CenterLanguage supportEngineering

support

Value4• ‘Value’ for money

brand

• Quality content• Relevant

packaging• Exclusive / Niche

content

Innovation

Tata Sky’s Approach

Execution

Tata Sky…setting new standards

DOING IT DIFFERENTLY

• “To get to the bottom of the pyramid, start at the top”

• Make technology aspirational to early adopters

• 1 Mn subscribers in 1 year… fastest ever in the world

Upper

Middle

Low

24x7 Call Centres, Over 800 associates, supporting 11 languages

Technology…partnerships with global leaders

3000 engineers across India

Professional installations across the country

EXECUTION

CUSTOMER SATISFACTION…best in class performance scores

Durable Sector Telecom Sector

Norms Best In Class Norms Best In

ClasseQ Index 75 86 74 86

Commitment Share 66 62

Vulnerable Share 9 9

Tata Sky

88

88

3

Comparison with global industry norms & global best in class scores

Source :AC Nielsen Customer Satisfaction study , April 2007

Partnership with Global Partnership with Global Leaders…Leaders…

the dish will also have a different look

Tata Sky+Tata Sky+……taking digital TV taking digital TV to the next levelto the next level

DTH in India…key imperatives

Reduction in License Fees

Level playing filed with Cable /CAS rollout

Content exclusivity

Burdensome Tax structure

FDI Norms and investment restrictions

Play the volume gameAddress the mass market with a volume-led strategy

Value based pricing will be the key to success

Innovate to differentiateAdoption of global success…Red button applications

Payment modesInteractive programming

New VAS & Products ( PVR)Execute Effectively

Address market complexity Rapid scale up

To Make Most Of This Opportunity, we need to…

Engage and advise the government / Regulator Develop a pragmatic regulatory framework

Correct current policy anomalies

In SumWhat is important to recognise is this is a transitory phase

Many players means lots of investment And only lots of investment will help to grow the marketIn the shorter run though competition may trigger lower

tariffs and increase SAC & Cash burn

The need is to focus on :• Creating Reach to build volume

• Offer affordable pricing • Innovation to create customer value

& increase ARPU• Outstanding execution to keep & gain new customers

And

Lots of patience!

Thank you