Business Drivers & Strategies for Green Energy In indian Telecom New Delhi January 28 ,2011

1. BhartiInfratel Business Drivers & Strategies for Green Energy In indian Telecom New Delhi January 28,2011 • Sairam Prasad • Chief Technical Officer

2. Agenda • Business Drivers • Business Enablers • Energy Initiatives at Infratel • Technologies • Technology Penetration potential • Saving potential • Environmental Impact • Challenges • Solar Application In Telecom Sites

3. Business Drivers Positive Socio Economic & environmental sustainability is the key driver for “sustainable business”

4. Falling ARPU • Rising MOU • Increasing Market competition Economic drivers – Market drivers • Minute of usage increased by 86% during last decade. • India is among countries with highest MoU. • Average Revenue per user declined by 85% during last decade. • India has lowest call rates globally. • Urban teledensity is saturated & further subscriber addition to come from rural. • Rural teledensity improvement is possible only with low cost solution, due to lower affordability of rural people • Number of operators doubled in last 3 yearsnce 2008 • India is amongst the countries with lowest EBITDA

5. Economic drivers- Energy Cost • Increasing Energy Cost • High dependency on Diesel • EB Availability & quality • Regulatory • National Solar Mission launched • Soft loans @ 5% interest rate. • 30% subsidy on capex invested for selected numbers. • 90% subsidy for special category states and in other remote and difficult areas • Reduction of carbon emission using Green technology fetches Carbon Credits . • USO Funds for use of renewable energy at remote sites • 10% Telecom Towers: No Grid supply • 50% Telecom towers < 12 hours of Grid supply • Poor EB quality like Low voltage,Single Phasing & Voltage fluctuation leading to DG run even while grid power is available Souce: TRAI, KPMG • Diesel preice has increased by more than 20% in the last three years & is expected to rise further. • 2 Bnlitres of diesel has been consumed by telecom industry every year. • Energy cost as % of revenue is increasing while ARPU is decreasing. • Power & fuel contributes about 25% of network cost Poor Quality of grid supply in semi Urban & semi rural areas & no grid availability in rural areas.

6. Social Drivers • India has committed to a reduction of 20-25% in carbon intensity from 2005 levels by 2020 – India`s Commitment at Copenhagen • Increasing Rural footprint at affordable cost. • Optimization of available grid power • Enabling Local community participation.

7. Environmental Drivers Key Environmental Drivers Include • CO2 emission reduction. • Noise pollution reduction. • Natural resource utilization. • Mitigation of global warming potential. Close to 300K towers that consume more than 2 BnLitres of Diesel everyyear generates 5.4 million Tons of CO2.

8. Enabler for Green & New Energy Initiatives Strong corporate will supported by access to reliable, scalable & cost effective technology are key enablers.

9. Towering Your Telecommunications • BhartiInfratel is one of the world’s largest telecom passive infrastructure service providers, that deploys, owns and manages telecom towers and communication structures for all wireless operators • Having a big first-mover advantage in India, its strong differentiator is of having service presence in some of the toughest terrains and remotest rural areas • Provides best-in-class telecom infrastructure services and a compelling capital investment saving opportunities to wireless operators • A Strong telecom heritage, coupled with deep industry understanding and capabilities, people and processes

10. Energy Initiatives at BhartiInfratel -P7 program • Green In our endeavour to become more environmental friendly & energy efficient company we initiated P7 program.

11. Technology Penetration Potential Green energy technologies Penetration potential can be improved substantially once prices reduce with more use.

12. Estimated Energy Cost Saving potential • Huge Gross energy saving possible using Green Energy technologies. • Net energy savings using green energy technology can be improved with possible reduction in pricing of green technology solutions.

13. Estimated Maintenance cost Saving Upto 40% reduction in site Maintenance expenditure for tower companies using green energy technology

14. Environmental Impact Green energy initiatives have greater potential to reduce GHG emission.

15. High capex can be avoided & new technology performance can be guaranteed by looking at opex fee model from generated savings. • Local entrepreneurs can be encouraged.

16. Solar Energy Viability Crude Oil Projection Solar PV Projection • With decrease in PV panel prices due to volume increase & increasing diesel price, adaptability of Green Energy sites improves further in future.

17. Solar DG Hybrid System Over View • Solar Panels: • 3-8 KWp • Mono & Multi-crystalline silicon. • VRLA Batteries (600 Ah-1200 Ah) : • Prolonging battery backup • New Battery instead existing ones • Hybrid Solar Controller (HSC) : • Sophisticated controller for runhour optimization • Communication with centralized Data Management Center. • Data Management Center (DMC): • 2-way communication with sites • Data reporting. • Escalation Alarms • Mostly rural site with offgrid /poorgrid qualify for solar deployment in telecom

18. Solar DG hybrid Battery usage profile • DG runs only during 1 am to 8 am for rest of time site is managed using battery & solar.

19. Data Management Center • Automatic NOC solution using GPRS & GSM modem at site to collect key parameters for remote monitoring & control

20. 1 BTS site key Parameters • DGRH reduced from 22 hrs per day to 8 hrs per day. • Diesel consumption reduced from kl to kl per year. • Co2 emission reduced from MT per yr to MT per yr.

21. P7 Key Benefits • Improved Profitability • Green Telecom • Customer satisfaction BhartiInfratel is awarded Best Innovative Infrastructure Company of the Year Award, by Essar Steel-CNBC TV 18 for P7 Program

22. Thank You