Tower And Infrastructure Providers Association (TAIPA ) December 23, 2010

1. India’s Tower & Infrastructure Providers Industry Tower And Infrastructure Providers Association (TAIPA) December 23, 2010

2. Contents • Who we are, • Role Played by the Telecom Infrastructure Sharing Industry, • Government’s position on “Sharing”, • Telecom Infrastructure Industry can contribute more…, • Issues and the Way Forward. 1/11

3. I. Who We Are – An Introduction • We own and deploy telecom infrastructure for use by wireless and mobile operators, • Enable optimal sharing of telecom infrastructure & have invested over Rs. 75,000 Crores i.e. Over 60% of total Network investment, • Provide a neutral platform which is operator and technology agnostic, • Critical for efficiency and speed of rollout , • Our Business Model is linked to objective of sharing – we only make profits when sharing is achieved – currently in losses as an Industry. • Second largest consumer of Diesel after Indian Railways. 2 / 11

4. Situation Before Tower Sharing • Operators Built Expensive Towers for Own Use • Roll Out was Slow and Expensive • Towers Used to Barely Half its Capacity • City Skyline Had More Towers • Customer Tariffs were higher 3/11

5. II. Role played by Tower & Infrastructure Providers • Promote efficiency by • saving cost and time • enabling scale • ensuring highest uptime at lowest Capex/Opex, • Beneficiaries include operators of cellular, broadband, radio trunking and other wireless services, • Now rolling out broadband infrastructure for 3G Operators & • Proposed new models ensure viability of rural common service centres (CSC) & clean energy. 4/11

6. Benefitsof Organized Tower Sharing • Service Access: Faster Rollout, • Economics: More efficient Use of Capital, • Competition: reduced cost of entry and operations for new entrants, • Aesthetics: Reduce Tower Proliferation • Quality of Service: Better coverage quality. • Safety: players have incentive to follow prescribed norms • Standardization: by using IIT/TEC designs for Towers 5/11

7. III. Tower Sharing Not Only Desirable But Also Represents Government’s Position • Allows Industry to optimize cost and make Telecom/Broadband services affordable services to the “Aam Aadmi” • Protects Environment & Energy savings • Improves Aesthetics • Enhances Safety • Protect Consumer interests • DOT’s Earlier Initiatives – 2005-2007: • USO funds for Sharing • Project Mobile Operator’s Shared Towers (MOST) • TRAI’s Earlier Initiatives - 2007 • Financial Incentive to Promote Infrastructure Sharing • Joint Working Groups(JWG) • TRAI’s Recent Recommendation- 2010 • Further optimization of Telecom Infra Elements 6/11

8. IV. TAIPA members and DOT/USOF/DIT/MNRE are natural partners • Uniquely focused on bottleneck infrastructure, • Determined to tackle environmental issues with Green Energy & thereby reduce Diesel and Kerosine consumption. • Making the largest share of investments with little or no returns in the short run, • Have motivation to cover remote and rural areas & provide broadband to remotest parts of country. • Can cover several areas/people who would otherwise wait indefinitely for Broadband and basic telecom connectivity. • Uniquely positioned to partner with Government Agencies to : • Provide surveillance services for security checks and traffic control • Phone charging stations in rural areas • Community Emergency Lighting in rural areas in case of power-cuts. 7/11

9. V. Issues • However, instead of encouragement, we are constantly harassed. • Incessant harassment by Local Authorities by treating us as ‘cash cows; with adhoc and unreasonable demands of levies and recurring charges. • Have been regularly subjected to adhoc sealings in different parts of country on frivolous grounds. • Even DOT levies ‘Testing Charges’. • TRAI has recently suggested levy of License Fee on Tower Companies. 8/11

10. Implications For Consumers & Society • Possible Higher Tariffs • Slower Rollout of Communication Services • More Towers than Necessary because of less sharing • More Pressure On Environment • Threat to Skyline 9/11

11. The Way Forward • Reject proposal to levy License Fee • Not legally tenable as License Fee can only be levied on service providers covered under Indian Telegraph Act and not ‘supporting services’. • If levied, should also be levied on equipment suppliers, diesel suppliers, electricity companies, steel & cement companies etc. • In any case, if levied should be allowed as deduction from AGR to operators. • Need for National Infrastructure Policy • Recognising Tower Infrastructure as ‘Critical Infrastructure’ • Priority of permissions – single window clearances. • Priority for EB supplies at most favourable rates. • Uniform policies on levies, if any. • No adhoc sealings. • Use USO fund for Towers in Rural Areas. • Subsidies for Alternate Green Sources of Energy – e.g, solar, fuel cell & DCDG. 10/11

12. We recognise difficulties and limitations on part of DoT in implementing some of the above. • We do recognise that DoT may not be able to direct some of the above due to legalities because of “state subjects” or involving other ministries like MRNE (Ministry for Renewable Energy). • National Infrastructure Policy, therefore may take sometime. • Would atleast request DoT to atleast make recommendations by way of a suggested Uniform Infrastructure Policy to states and others concerned and be a partner with TAIPA to present our legitimate case. 11/11

13. Thank You Tower And Infrastructure Providers Association (TAIPA) 23 December 2010