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I n I ndia it has taken DTH 5 years to get to6 million plus subscribers!

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0

0.5

1

2

0

0.5

1

1.5

2

2.5

Aug -0

6

Oct-0

6

Dec-0

6

Feb-0

7

Apr-0

7

Jun-0

7

Aug -0

7

Oct-0

7

Dec-0

7

Feb-0

8

Apr-0

8

Millions (S

ubs.)

A nd Tata Sky crossed 2 Million subscribers in 20A nd Tata Sky crossed 2 Million subscribers in 20months the fastest subscriber rampmonths the fastest subscriber ramp- -up ever by aup ever by aDTH platformDTH platform

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The I ndian Telecom miracle took6 years to reach half the DTH number

Wireless Subscriber Growth

Source : COAI Data

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IN DIA 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 :MP A report, March 2007320%18.44.3US

Bn

Growth20 200

P AY

R

NU S

320%18.44.3US

Bn

Growth20 200

P AY

R

NU S

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0.06 0.18 0.751.925

4.8

9.8

15

20.9

26.1

30.4

33.8

36.2 37.6

0

5

10

15

20

25

30

35

40

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

Year

Subscribers (Mi

l

l

i

s)

2007 to 2015 Growth of 683 %

Source : M P A re p or t , Marc h 2007

Th e DTH ca t e g or y is ex p ec t e d t o g ro w b y 680% or so i th e nex t 7 or 8 years !

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I n 5 years

We have managed to overtake Japanas the largest DTH market in A sia

A nd in the ne x t 5 years (by 2012) we will beable to add another 30 million subscribers

(which is about the same as the population of

elgium, Portugal and reece put-together!)

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DTH is a nascent category in its growth phase

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Playing the volume game DTH in I ndia

Indian cable TV subscr ibe rs are curr en t ly sp ending ab out - % (US$ - ) of th eir mo nth ly incom e on cable services

Globally, consum ers sp end - % of th eirmo nth ly incom e on pay t ele vision services

While th is indica t es a sizeable growth opportu nit y, only a mass s ervice can ach ieve th e econom ies of

scale to fu lly exploit th e marke t pot en t ial

This c lea rly is expen sive bus iness(At lea st in th e short-m edium ru n)

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Rise in Disposable I ncomes75 % p ercen t r ise in per c apit a incom e ( 7 )

Source: NCAER

A ppetite for Entertainment is growing

$ 5 Billion being sp en t ann ually by Indian s o n travel 5 Million credi t c ard su bscr ibe rs grow ing at 5 % ann ually

Million color TVs so ld ann ually

12 5 Million TV hom es h ave dou bled in last yea rs

Rapid adoption of new technologies by I ndians

5 - Million mo bile pho ne su bscr ibe rs are added every mo nth50 ,000 Sat ellit e TV subscr ibe rs added every mo nth

B ut , the I ndian market is changing

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With its prov en, sup erior t echnology, value added

services & prof ess ional custom er s ervice

Along with th e abilit y to off er all India coverage at low incremen t al per su bscr iber cost

(up grading cable infrastructur e across India will need hu ge investm en ts & app eal of Bro adband service will be

limit ed to m etros & large cit ies)

DTH is set to win

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DO ING I T D I FF ERE N TLY

To ge t to th e bottom of th e pyramid, st art at th e top

Make t echnology asp irat ional to ea rly ad opt ers

1 Mn su bscr ibers in 1 yea r

f ast est ever in th e wor ld

Upper

Middle

Low

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24x 7 Call Cen tres, Over 00 assoc iat es, support ing 11 lang uage s

Technology p art ne rsh ipswith global leade rs

000 enginee rs across India

Prof ess ional inst alla t ions acrossth e cou ntry

EXEC T I ON

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C STOMER S A TI SF A CTI ON best inclass performance scores

Durable Sector Telecom Sector

N ormsB est I nClass

N ormsB est I nClass

eQ I nde x 75 86 74 86

CommitmentShare 66 62

VulnerableShare

9 9

Tata Sky

88

88

3

Comparison with global industry norms & global best in class scores

Source :A C N ielsen Customer Satisfaction study , A pril 2007

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Partnership with G lobal LeadersPartnership with G lobal Leaders

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the d ish w ill als o have a d iff e r en t loo k

Tata Sky+Tata Sky+ taking digital TV totaking digital TV tothe ne x t levelthe ne x t level

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DTH in I ndia key imperatives

Red uct ion in Licen se Fee s

Level playing f iled with C able /CAS ro llout

Cont en t exclus ivit y

Burden som e Tax structur e

FDI Norms and investm en t r estr ict ions

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Play the volume gameAdd ress th e mass m arket w ith a volum e-led str at egy

Value ba sed pr icing will be th e key to succ ess

I nnovate to differentiate

Adopt ion of global succ ess R ed butto n app licat ionsPaymen t mo de sIn t eract ive pro gramm ing

New VAS & Pro ducts ( PVR)

Ex ecute EffectivelyAdd ress m arket comp lexit y

Rapid scale up

To Make Most Of This Opportunity, we need to

Engage and advise the government / RegulatorDevelop a prag mat ic r eg ulator y framework

Correct curr en t po licy an om alies

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I n SumWha t is import an t to r ecognise is th is is a tran sitor y ph ase

Many playe rs m ean s lots of investm en t And only lots of investm en t w ill help to grow th e market

In th e short er ru n thou gh comp et it ion may tr igge r lower t ariffsand increa se SAC & Cash burn

The need is to focus o n :Crea t ing Rea ch to build volum e

Off er affordable pr icing Inn ovat ion to cr ea t e custom er value

& increa se ARPU

Outst anding exe cut ion to k ee p & gain ne w custom ersAnd

Lots of p at ien ce!

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Thank you