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Tulip Telecom Ltd Earlier Tulip IT Services Ltd

Tulip Telecom Ltd Earlier Tulip IT Services Ltd. DATA CONNECTIVITY – VEHICLE FOR GROWTH. Safe Harbour.

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Tulip Telecom Ltd Earlier Tulip IT Services Ltd

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  1. Tulip Telecom LtdEarlier Tulip IT Services Ltd DATA CONNECTIVITY – VEHICLE FOR GROWTH

  2. Safe Harbour Certain statements in this presentation may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, economic developments, technological risks, and many other factors that could cause the actual results to differ materially from those contemplated by the relevant forward-looking statements. Tulip Telecom Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

  3. Industry Accolades

  4. Operational Snapshot Customers from all vertical segments including banking, telco, retail, manufacturing, services, education, healthcare, Utilities and government Total customers In excess of 1,600 Network reach Over 1,500 cities across almost every district in India India’s largest & fastest growing MPLS network Sales & support 12 sales offices 160 support offices 2,500+ employees across India with over 70% technical staff Network Ops 2 NOC’s supporting over 300 agents MPLS NOCs in Delhi & Mumbai. Global managed service delivery centre in Delhi Tier 3/4 data centres in Delhi, Mumbai, Navi Mumbai & Bangalore. More tier 3/4 data centres under implementation Data Centres 4

  5. Company profile Telecom service provider and managed network services provider Market Cap In excess of Rs. 25,000 million Listed on BSE & NSE. Included in BSE-500 and BSE-MIDCAP indices. Revenue Rs. 16,144 million, up ~33% over previous year Net profit Rs. 2,505 million, up 34% over previous year Financial Snapshot *financials are as of financial year ended March 2009.

  6. Our Understanding • Last mile availability. • Voice vs. Data. • Single point for everything related to data. • Niche players have an advantage of better service. • Own fibre is not always an advantage.

  7. Our Business • Meet all telecom requirements of customers with respect to data connectivity • Data connectivity (IPLC, DLC, MPLS VPN and Internet) • Managed Services - NI to support connectivity, Data Centres, security and application management. Total IT outsourcing • Value Added Services • Why Tulip? Customers prefer specialized data companies that take complete responsibility to cover all aspects of data connectivity

  8. Customer Requirement • Head offices and major branches of customers located in commercial / institutional clusters require high bandwidth from 2 MBPS to 155 MBPS • Branches / outlets like bank branches need 64 KBPS to 512 KBPs in major cities and smallest of towns • Dealers need low bandwidth between 16 KBPS to 256 KBPS On Fibre 70% revenue On Wireless 30% revenue

  9. Tulip’s Network • Country’s largest data Network reaching over 1,500 cities • Large Fibre based Metro Ethernet network in 10 cities and growing • All commercial buildings in major commercial areas with fibre in basement or kerb side to cover 90% of high bandwidth subscribers • Unlimited, Immediate connectivity on Fibre • Most economical NEW!

  10. MPLS/VPN and IPLC will continue to show high growth rates, while ATM/Frame relay will slowly phase out The data services market is estimated to be around Rs. 5,155 crore and is estimated to reach Rs. 15,423 crore with a CAGR of 25.1%. The large enterprises market contributes to around 69% of the market The growth of data market is driven by MPLS/VPN market which is expected to have a market share of nearly 50% in 2012-2013. Note: All values are in INR crores. Source: Frost & Sullivan

  11. Enterprise Data Market Mkt Share – 12.74% Source: Addressable Mkt 18% to 89%, 1500 Cr to Over 7500 Cr 8378 Cr Enterprise Data Services IPLC DLC MPLS/IP VPN Internet 46% VSAT 11% 13% 3839 Cr 8% 19% 1106 Cr 1629 Cr 721 Cr 957 Cr Wireless Fibre 28% 18% 2303 Cr 1536 Cr Mkt 0 0 0 38% 0 0 Share Current Planned

  12. Enterprise data Market Bharti 20.40% Tata Comm 16.00% Reliance 12.60% Reliance 19.63% Tata Comm 54.25% BSNL 39.29% Bharti 17.77% Tulip 2.28% Tata Comm 8.65% Sify 12.36% Tata Comm 29.10 Reliance 14.89% BSNL 8.65% BSNL 11.54% Reliance 12.46% Bharti 27.00% Tulip 29.66% 12

  13. Enterprise Data Market *Presently addressing only Rs. 1,500 crore market on wireless as we did not have last mile on fibre

  14. MPLS VPN Market Share Analysis * % figures for the year 2008, were revised. Explanation for the same is carried in the following slides. 14

  15. Network Integration positioning Source - Voice & Data June 2009, V&D100 Issue

  16. Customers include all major financial institutions Banking, Financial Services and Insurance Mutual Fund Reliance Entertainment

  17. All telcos and major corporates Telecom Logistics Enterprises

  18. Lines of Business Breakup

  19. Bandwidth Scenario in India Tulip with Pan India last mile in over 1,500 cities Telcos with national Fibre Utilities with National Fibre Tulip leases last mile to these telcos

  20. Our Infrastructure Delivery • 1,500+ certified engineers. • Robust alliances. • ISO 20000-1 & 27001 based processes. • Network • In excess of 1,500 cities. • 180 support centers. • More than 4,200 Points of Presence. • STM 16 based core backbone. • Redundant Multicarrier Network. • Metro Ether net based access network. • WiMAX & Advanced WiFi based wireless access technologies. • IP NGN tested with major BTS players • Data Centers • A potential capacity of 100,000 sq feet. • Only provider to have termination from all telcos. • Ready to use NGN head.

  21. INTER-CITY CONNECTIVITY Inter-city bandwidth available aplenty. Can start at 2 MBPS and go upto GBPS. If demand justifies, lay own fibre where required. Delhi Bangalore Mumbai Inter-City Primary Link Inter-City Redundant Link Chennai High End Router

  22. Connecting Mumbai Delhi Bangalore Chennai Mumbai Multi-STM Primary Link Multi-STM Backup Link

  23. Each Base Station Radio has a capacity of 4 MBPS Shared. 2. Supports upto 126 subscribers. Tulip / SP / MSO Fiber Inter-city bandwidth starts at 2 MBPS shared and can go upto multiple GBPS. Tulip / SP / MSO Fiber Multi - STM Inter-city Backbone from Service Providers Fiber / Point to point radios upto 45 MBPS capacity. Multiple radios possible, in licensed band. Range 2.5 KM

  24. Inter City Network Design Data Center High Capacity Fiber Point to Point Wireless Central NOC in New Delhi Redundant NOC in Mumbai Regional NOC’s in all Class B cities ISDN RAS in all Class A & B Cities B Ahmedabad Chennai Pune Bangalore A Mumbai Hyderabad D C Delhi Rural network Chandigarh Lucknow Kochi Kolkata Bhopal

  25. Typical Network DR Site 64 K to any bandwidth on wireless Fibre / High speed radio Central site

  26. National Highways

  27. Network Management (NOC) • Entire network managed from main NOCs in Delhi and Mumbai. • New NOC in Delhi for managed services. • 10 Regional NOCs in major regions. • Every element manageable from anywhere. • 24x7 Management Services

  28. Typical Contract Charges Fixed Cost Model • One time non-refundable Installation charge and Recurring yearly charge • Assured revenues by way of recurring charges • Contract typically offers 25% uplift annually • EBITDA margins rise with volumes • Tax free revenue up to 10 years

  29. Data Centres • Presently one in Delhi and two in Mumbai, one in Bangalore. Coming up in Hyderabad, Chennai, Pune and Kolkata. • Tier 3/4 data centres. • Data centres and NOC ISO 27001 certified. • Premium customers like • Strong self owned / long leased buildings. • SP agnostic. Fiber from all SPs available already. • IT Services Mgt systems Certified.

  30. Why Rural? • 70% population in rural areas. • Virgin territory. Wireless enables overcome generations of technology gap. • Orders in thousands compared to hundreds in urban areas. • Low cost due to high volume. • Customers are Government, CSCs, Banks, Financial inclusion, Educational, SEBs, Retail, Corporates. • Virgin territory for voice infrastructure. • Operate in un-licensed band. Low cost, no spectrum constraint.

  31. Conclusion Extremely Profitable Strong Customer control GREAT BUSINESS MODEL Completely Scalable Recover investment in 2 Yrs More Services Possible Reducing cost with volume

  32. Increase in Revenue In Rs. Million

  33. Healthy Change in Revenue Mix In Rs. Million

  34. Strong Annuity Income Revenue break-up – Data Connectivity Segment In Rs. Million

  35. Increasing Profitability Profit after Tax Earning Per Share (Rs.) In Rs. Million

  36. Q3 FY2010 Results Snapshot Revenue mix (%) Revenues 13.4% EBIDTA Profit after Tax 46.1% 38.2% In Rs. Million

  37. Thank You Tulip Telecom Ltd

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