Vikram Kaushik Managing Director & CEO Tata Sky Ltd.

1. Vikram Kaushik Managing Director & CEO Tata Sky Ltd.

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

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

4. The Indian Telecom miracle took 6 years to reach half the DTH number Wireless Subscriber Growth Source : COAI Data

5. INDIA… 165 Mn Pay TV HHs by 2015 • Penetration will double • Revenues will quadruple Source : MPA report, March 2007

6. The DTH category is expected to grow by 680% or so in the next 7 or 8 years! 2007 to 2015…Growth of 683 % Source : MPA report , March 2007

7. 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!)

8. DTH is a nascent category in its growth phase

9. 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)

10. But , the Indian market is changing • Rise in Disposable Incomes • 75% percent rise in per capita income ( 1990 – 2007) • 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 Source: NCAER

11. Consumers 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 • 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 Government • Plug the tax leakage through declaration • Additional source of revenue – license fee payable by DTH operators DTH …congruence of interests for all stakeholders

12. 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…

13. Finding the perfect mix for DTH Reach VAS Customer Service Value 1 2 3 4 • 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 Center • Language support • Engineering support • ‘Value’ for money brand • Quality content • Relevant packaging • Exclusive / Niche content Brand Building Monetising volumes. Improving ARPU.

14. Tata Sky…setting new standards Execution Tata Sky’s Approach Innovation

15. 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

16. EXECUTION Professional installations across the country Technology…partnerships with global leaders 24x7 Call Centres, Over 800 associates, supporting 11 languages 3000 engineers across India

17. CUSTOMER SATISFACTION…best in class performance scores Comparison with global industry norms & global best in class scores Source : AC Nielsen Customer Satisfaction study , April 2007

18. Partnership with Global Leaders…

19. Tata Sky+…taking digital TV to the next level the dish will also have a different look

20. 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

21. To Make Most Of This Opportunity, we need to… Play the volume gameAddress the mass market with a volume-led strategyValue based pricing will be the key to success Innovate to differentiateAdoption of global success…Red button applicationsPayment modesInteractive programmingNew VAS & Products ( PVR) Execute Effectively Address market complexity Rapid scale up Engage and advise the government / Regulator Develop a pragmatic regulatory frameworkCorrect current policy anomalies

22. In Sum What 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 market • In 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!

23. Thank you