Connect. Create. Innovate. India Mobile Congress 2018

New Digital HorizonsConnect. Create. Innovate.

India Mobile Congress 2018

October 2018

KPMG.com/in

New digital horizons: connect, create, innovate

1 Current state

1.1+ billion subscribers

512 million internet subscribers

FDI ~ USD5.9 billion during Apr-Dec 2017

Teledensity at 89.72 per cent

Government initiatives driving digital growth

3 Challenges

2 Where we want to be

Trillion dollar digital economy dream:

Convergence of connectivity and advanced technologies like AI, M2M, IoT, analytics is bringing India closer to its trillion dollar digital economy dream. Telecom companies (telcos) having a direct interface with end users, can play a central role in the digital revolution by moving beyond connectivity. It can be the platform to allow the interplay of these advanced technologies to create digital solutions across varied industries. In the next few years, a significant portion of revenue will be growing from digital initiatives enabled by 5G network.

Falling revenues (ARPUs)

Huge capex requirement (USD17 billion FY19-20)

Debt repayment of USD119.44 billion as against its annual revenue of around USD38 billion

© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

5 Need of the hour

4 How to get there

1

3

5

2

4

6

Connect rural India

Enhance start-up ecosystem to foster innovation

Build a customer centric ecosystem

Investments in content ecosystem

Create networks of the future

Expanding business models beyond connectivity

Significant intervention from all stakeholders (public and private) required to uplift the industry and realise the potential that new digital horizons hold

Increase overall fiberisation

Rationalise spectrum allocation and pricing

Bridge skill gap

Robust cyber, data security framework and data privacy norms

Simplification and uniformity of RoW policies

Favourable device, component manufacturing

Rationalisation of taxes and levies’

Redefine Adjusted Gross Revenue (AGR)

Lower cost of backhaul connectivity

Public Private Partnership(PPP) models for shared infrastructure

© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved

ForewordIndian Telecom Industry has witnessed one of the fastest paces of expansion in the recent years. The government and the industry have worked together to make Indian Telecom Network, the 2nd largest in the world with a total subscriber base of over 1.1 billion and an overall tele density of close to 90 per cent. The government has a digital vision for India and the strategy is premised on access and inclusion, giving a digital identity to everyone and delivering next generation goods and services to all citizens.

The National Digital Communications Policy (NDCP) 2018, was approved by the cabinet this year to lay out policy and principles framework that will enable creation of a vibrant competitive telecom market. The key themes that the policy aims to look at include, the regulatory and licensing framework impacting the sector, connectivity for everyone, ease of doing business and adoption of new technologies including 5G and the IoT to accomplish the mission to connect, propel and secure India. The common underlying themes of ‘Make in India’ and ‘Skill India,’ would be inclusive elements of the above.

In a connected era, easy access to information should be enabled for all citizens. We have begun a number of initiatives like BharatNet, Network for Left Wing Extremism Areas, connecting remote areas of the North East

including over 8600 villages and installation of over 300 mobile tower sites. We are into the 4th year of Digital India initiative, in this period we have tripled our telecom infrastructure, we are spending 9 billion in providing optic fiber in rural areas. The government will be setting up over 2.5 million Wi-Fi hotspots across the country to enable connectivity covering the urban and rural areas.

Adaption of technology, whether applications or services, is best understood in the local languages. We are also working on a mass digital literacy program so that people at the bottom of the pyramid will not merely have access to technology but also will be able to leverage technology in their local language. This will enable this section of the society to stay connected and digitally informed.

While digitalization is progressive, the connected space comes with challenges and there should be a strong focus on security. Every nation faces cyber security challenges. Countries like India, where digital growth has been exponential, the magnitude and complexity of these challenges become multi-fold. A comprehensive cyber security policy along with the sectoral CERTs are the key building blocks of India’s cyber security infrastructure. India is currently working towards putting a comprehensive data protection framework in place.

I am happy to be part of the IMC meet this year, with a theme of connect, create and innovate that resonates well with the direction that the industry is headed towards. I trust a meet like this will provide an opportunity for all the stakeholders involved – big or small to showcase their expertise and be part of the larger system that drives India forward, digitally. Wishing you all the very best.

Aruna SundararajanTelecom Secretary and Chairman of the Telecom Commission

Government of India


ForewordIt gives me immense pleasure to bring to you IMC 2018. IMC with its vast range of dignitaries, speakers and attendees is playing a crucial role by bringing all the players in our telecom ecosystem together on a single platform. The future of our industry is defined in platforms like these where all stakeholders connect, create and innovate which strongly aligns with our central theme this year.

Telecom provides connectivity that fosters inclusion, drives empowerment and enables transformation. The near ubiquitous reach of the mobile makes it the best tool to deliver development to the very last mile through ‘Digital India’ and a ‘mobile first’ approach. It is important for the future of India to have a robust telecom network as India has an opportunity to power ahead of the rest of the world as a digital economy. The promise of 5G is tremendous and it will be a catalyst in the evolution of new

services and revenue streams for all players in the ICT ecosystem. However, to untap its true potential it is important that due emphasis is given by the government and industry on spectrum harmonization, infrastructure creation and introducing relevant regulatory measures.

IMC 2018 plans to focus on how the trinity of regulators, academia and industry can collaborate to CONNECT India, CREATE an ecosystem for ICT players to thrive and contribute to the growth of digital India and INNOVATE to bring a faster growth in technology adoption, network solutions that will allow an unforeseen socio economic development of India.

I am pleased to inform you that IMC, Cellular Operators Association of India (COAI) along with KPMG in India has brought out a comprehensive report on how the New Digital Horizon is un-flolding for India. I would like to

acknowledge the efforts made by IMC and KPMG in India’s team in making this report insightful.

Thank you.

Rajan S MatthewsDirector General

COAI


Welcome to the 2nd edition of IMC 2018: New Digital Horizons: Connect. Create. Innovate. The event is aimed to explore the current dynamism in the telecommunications sector which has become a catalyst for a digitally empowered and connected India.

With the stupendous success from last year, IMC has become South Asia’s largest digital technology forum bringing together the congregation of regulators, academia, researchers, industry leadership under one roof. It is aimed to bring together the converging communication industry on one platform in India, to showcase emerging opportunities and trends, technologies, business opportunities, applications, platforms, government policies and initiatives.

India has the world’s 2nd largest telecommunications network and internet user base. It is becoming the hotbed for innovations in telecom services, equipment and network technologies. As new technologies like 5G and IoT are ready to usher an industrial revolution, building a collaborative framework between regulators,

academia, industry would be a key differentiator that will make India a digital leader.

Our research paper, written by our knowledge partner KPMG in India, studies the evolution of networks of the future and dwells into how technology will be shaping our lives. It identifies some of the trends on customer expectations and how telecom companies are evolving their business models to meet those expectations. It is clear from the report that only companies which thrive on innovation and cutting edge technology are the ones which will be able to leapfrog the exponential growth offered by the sector.

I conclude by thanking the team at IMC, COAI, and KPMG in India for working together to successfully deliver this program to you. Our aim is to be a one-stop-shop expo destination for the mobile industry in India and South Asia and ultimately, gain from the insights and partnerships forged this year in India.

Thank you.

P RamakrishnaCEO

India Mobile Congress

Foreword


ForewordThe amalgamation of players in the ICT sector is creating new landscapes. Technology is fuelling the shift and shaping a new narrative of the ICT ecosystem which in my view has assumed critical propositions with the market boundaries dissolving and changing operating models. High-speed connectivity, strategic collaborations and altering growth strategies might well determine the next phase of growth of the industry.

In association with the IMC and COAI, KPMG in India is pleased to present the report – ‘New digital horizons - Connect, create and innovate’. This report traces the evolution of various network enabled services over time and helps understand how telecom services consumption has been changing over the years and how it is likely to impact the larger ecosystem of telecommunications in our country.

The growth of the Indian economy is closely linked to the rise of the telecommunications sector as they are intricately linked to connectivity as a fundamental requirement for driving businesses. The telecom sector in India has witnessed immense disruption in the last few years. This phenomenon has propelled a shift in the user behaviour with the passive consumers of voice and SMS services becoming active participants. They are now one of the largest consumers of mobile data and high bandwidth applications like video streaming and social media. The consumers have benefited immensely from discounted pricing due to hyper competition, availability of affordable smart phones and evolving ICT infrastructure.

Furthermore, the operators are going the innovative way to offer

media content to the end consumer either by way of collaboration or through creation of their own. The industry overall, while experiencing disruptive innovations is also witnessing the slow convergence of the telecom industry with media, using technology to drive costs down. It is undisputed that the ability of ICT companies to adapt to the continuously evolving technologies to suit the changing needs and preferences of consumers is all good news for them but, it could leave the telecom operators in a precarious situation, where only those players with deep pockets could survive.

The market has already witnessed the consolidation of two major players while, the other four players are unable to sustain their businesses and are on the verge of exit. The industry might see only 4-5 main players in an aggressive telecom market of the future. To conquer this frontier, the operators will have to be ready for the ‘Digitally Native’ consumers who expect innovative, converged services of impeccable quality delivered to them seamlessly. Enhanced customer experience coupled with exceptional quality of services shall act as the key differentiators, which would help the operators not only retain their existing customers, but also acquire the new ones.

The next phase of growth in the industry is hinged on convergence of ICT. Digital technology, coupled with radical shifts in consumption patterns have undeniably resulted in the blurring of boundaries that define the ICT sectors. ICT convergence is now a reality and is expected to cause significant disruptions across the entire value chain. Very soon, the traditional ways of media consumption shall make way for on-demand and dynamic consumption

of media. Rapid use of machines to augment human intelligence in creating a new paradigm of opportunities impacting consumers and enterprises. As we look into the future, networks have the potential to be an intelligent platform to aid consumers and enterprises to reap benefits of new age technologies. ICT businesses would need to re-evaluate their existing strategies and operating models to leverage the emerging opportunities and sustain against new evolving challenges.

Mritunjay KapurNational Head Markets and StrategyHead - Technology, Media and Telecom

KPMG in India

Arun M. Kumar Chairman and CEOKPMG in India


Table of

contents


1. Executive summary

2. Telecom sector - the ground covered so far

3. Connect the unconnected

4. Create an ecosystem for digital enablement

5. Networks for the future

6. Innovate beyond connectivity

7. Technology shaping our lives

8. Challenges to digital penetration and way forward

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05

11

21

27

39

47

77


Executive summary


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02

The Indian telecom sector has charted an unparalleled growth story. With over 1.1 billion subscribers, overall teledensity around 90 per cent and 512 million internet subscribers01 as on June 2018, it stands tall as second largest in the world. In FY17, the Indian telecom sector contributed about 6.5 per cent of Gross Domestic Product (GDP)02 and plays a pivotal role in creating the building blocks of the digital economy which is estimated to be USD280 billion as of FY1803.

The telecom sector is at the forefront of the digital revolution and the dream of a trillion digital dollar economy will be achieved through convergence and capitalisation of multiple technologies such as AI, Machine-to-Machine (M2M) and IoT and collaboration between government and industry players. While the growth story has so far been stupendous and holds enormous potential, the sector currently faces an uphill task of debt repayment of about USD119.44 billion as against its annual revenue of USD38.78 billion03. Given the industry’s average return of capital employed at 1 per cent, there is a dearth of funds for the huge capital expenditure that lies in store for the sector.

This situation is further compounded by disruption of traditional voice and messaging revenue streams because of digitalisation. While the exponential rise in data consumption (wireless: 4026 PB during the quarter April-June 2017 to 10418 PB in April-June 2018)01,04 has provided some relief, it has not been enough to uplift the overall Average revenue per user (ARPU), which stands at USD1.25 (INR80.97) in FY18 (USD1.79 or INR117.37 in FY17)05. The ongoing price war and lack of adequate monetisation of content delivery coupled with increasing costs from bandwidth and speed upgrades have put the telecom sector in a precarious situation. It will take the collective will and action from all stakeholders, private and public to reinvigorate the sector. Lack of immediate action on this will risk the derailment of the vision of Digital India and the socio-economic development that it promises.

Telecom companies (telcos) need to think of new avenues for growth as legacy revenues are under pressure. This could mean expanding their existing solutions to newer markets while realigning their business models to cater to emerging opportunities. The following are the three themes that telcos need to focus on: connect, create and innovate.

Connect the unconnectedWith around 67 per cent of our population06 living in rural areas and the rural teledensity is 57.99 per cent as on June 201801, rural India presents a gigantic opportunity for growth. The stark digital divide is evident by the low internet penetration of 19.48 per cent in rural areas01.

However, rural telecom will require a serious revamp of backhaul connectivity and fiberisation. Fiberisation of backhaul will increase the capacity and reduce the latency period and is critical before 5G deployment. In India, about 80 per cent of cell sites are connected through microwave backhaul and only 20 per cent through fibre07. However, 70-80 per cent fiberisation is required for effective network roll-out for 4G and 100 per cent fiberisation for 5G08.

In regions where fibre backhaul is not possible, higher-capacity microwave links will have to be installed. E-band and V-band spectrum needs to be allocated to telcos at the earliest so that they can utilise them for low-cost, high last-mile connectivity to base stations. While some telcos are currently focusing on expanding the reach of fibre network to homes, policy amendments encouraging active infrastructure sharing will shape fibre leasing and renting dynamics in India.

To build a diversified and digital ecosystem, the fundamentals of conventional network and business architecture need to be revised. Therefore, ICT, infrastructure providers (IP), Telecom Service Providers (TSP), Internet Service Providers (ISP), and content providers will play an important role in paving the way for digitisation in a reliable and sustainable fashion.

Create a start-up ecosystemThe technology landscape in India has seen a rapid transformation in recent years because of the strong emergence of various start-ups. This has created a momentum for a plethora of new ideas fuelling disruption, innovation and investments across verticals. Riding on the pillars of future technologies like AI, IoT, robotics and analytics, the Indian start-up ecosystem is shaping up in positive light.

01. The Indian Telecom Services Performance Indicators April – June, 2018. FX Conversion Rate for FY18 - 64.46

02. https://www.investindia.gov.in/sector/telecom, Accessed on 25 September 2018

03. COAI Annual Report, 2017-18


05. The Indian Telecom Services Performance Indicators Quaterly reports for FY17 and FY18

06. http://www.worldometers.info/world-population/india-population/

07. 5G a distant dream for India when backhaul takes a back-seat: Experts, The Economic Times, 11 August 2017

08. Why India must get fiberised to leapfrog to 5G, The Financial Express, 17 February 2018

However, to drive and nurture a strong entrepreneurial culture, the government has to address a series of roadblocks related to administrative and economic areas for start-ups.

Create networks of the futureWhile the Indian telecom sector has come a long way and has experienced tremendous growth in the past decade, it is lagging on quality parameters like network throughput and 4G coverage. With data surge and increasing use of IoT and M2M applications, the telecom ecosystem will have to boost its network capacity to offer high-speed data access and minimum latency. Although 5G is likely to be the key enabler of the fourth industrial revolution and an integrated ecosystem across business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G), until it is launched, the telcos will have to improve on their existing networks to enhance their performance.

Software Defined Networks (SDN) and Network Function Virtualisation (NFV) are examples of cloud-based technologies. These can replace complex network functions with customisable virtualised software. It is estimated that SDN and NFV could generate significant savings in overall operator operating expenditure and will be the main drivers of adoption of these technologies in an otherwise financially constrained industry.

To unleash the full potential of Digital India, an investment of USD17 billion is required over the next two years. Significant investments are required over the next two years to unleash the full potential of Digital India. However, this can only happen when adequate Return on Investments (RoI) is enabled through a facilitative policy and regulatory environment.

Innovate beyond connectivity As per KPMG Technology Innovations Lab’s findings through a web survey comprising of 15 countries and 15 countries and more than 750 technology leaders, India is ranked third in the tech leadership charts for countries showing most promise for disruptive technology breakthrough that will have a global impact. It will take the collective will and action from the entire ICT ecosystem along with adequate government support to unearth the true potential of the Indian digital economy. With connectivity and the promise of 5G being the most critical enabler to the vision of digital India, Telcos will have an important role to play.

Further, the survey also indicates IOT followed by AI and robotics are identified as the leading game changers over the next three years globally.

As India stands at the cusp of transforming into one of the world’s fastest growing digital economies, these emerging technologies have started traversing across businesses accelerating their growth journeys. Telecom, despite being central to this digital evolution, has so far not been able to reap benefits from this growth. Instead, we are seeing a sect of new agile digital businesses emerge which are not only creating an intermediate layer between connectivity providers and the end users but also increasingly making customers agnostic of which network to choose.

To outpace the digital disruption and ensure that they remain the epicentre of the growth, telcos will have to innovate on two fronts i.e., redesign their business models beyond connectivity and enhance their customer experience.

Redesigning the business models

With traditional revenue streams maturing, redesigning business models is the need of the hour. Industry players are already commercialising consumer behaviour, trends and innovative technologies to create new paths to outpace the competition. Telcos should leverage this gold mine of data and move up the technology stack by providing platforms and applications to create industry-specific solutions using emerging technologies. This will help telcos transition from just being communication providers and become core to the enterprise and consumer digital transformation.

The adoption of 5G will drive demand from enterprises and allied industries such as e-commerce, healthcare and automotive. Though the potential opportunities for collaboration are unlimited, telcos will have to develop vertical specialisations in these industries to understand the enterprise solution requirements and collaborate with tech companies and innovators to provide a holistic solution.

Telcos will have to develop some of these capabilities in-house or acquire through partnership and collaboration with other ICT players.

Enhancing customer experience

The rapid change in consumer demand, led by enhanced network connectivity and improved speeds has increased on-the-go consumer count. They are becoming accustomed to accessing information, retail, financial and entertainment services across

03


devices. Consumers are demanding more from their network providers and are looking for personalised service offerings. The existing high customer churn indicates that telcos need to work on increasing customer loyalty which includes the following:

• Telcos need to differentiate beyond networks and deploy disruptive technologies that will act as a catalyst to provide a better customer experience

• Use advanced analytics to understand customer preferences based on their digital behaviour

• Adopting an organisation-wide cultural change and build customer centricity across all functions.

Challenges and way forwardThe telecom sector’s current structure is weighing on its growth. Moreover, its burgeoning debt, falling revenue and constrained margins leave little room for further investments. The government has set the tone of a progressive policy framework with the National Digital Communication Policy 2018. The policy promotes the judicious use of Universal Service Obligation Funds (USOF) and public private partnership to promote connectivity through its Bharat Net, Gram Net, Nagar Net and JanWifi initiatives. However, monetisation models and financial viability of these initiatives need to be well defined to make the public-private partnership successful.

Some of the potential areas, which could be looked at with respect to promoting an investor-friendly environment in the telecom sector are as follows:

• Spectrum management, its pricing and future availability roadmap

• Redefine Adjusted Gross Revenue (AGR)

• Bring down levies such as Spectrum Usage Charge (SUC) and Licence Fee (LF)

• Reduce the tax burden

• Lowering the cost of backhaul connectivity

• Development of the start-up ecosystem

• Data privacy

• Favourable device and component manufacturing

• Robust cyber and data security framework

• Bridging skill gap

• Public Private Partnership (PPP) models for shared infrastructure

04

ConclusionIndia is at the helm of a new revolution ‘Industry 4.0’, as digital transformation makes inroads across sectors altering the modus operandi for businesses. The enhancement of features in affordable smartphones, constant connectivity and 5G’s potential will position the telecom sector uniquely in this transformation.

Being the key stakeholder with an obvious path to full connectivity for the consumer makes telcos a necessary part of any future consumer proposition regardless of who owns the platform. The path forward is leveraging this strength while navigating the challenges in regulation, changing technology and changing consumer dynamics.


Telecom sector - the ground covered so far

05


The convergence of information, ubiquitous connectivity and technology heralds a new India which is marked by societal and entrepreneurial transformation. The transition from trunk calls to 5G, IoT and AI has been nothing less than a metamorphosis of our economy.

As per KPMG Technology Innovations Lab’s findings through a web survey conducted from November through December, 201701 which comprised of 15 countries and more than 750 technology industry leaders (CXOs, entrepreneurs, venture capitalists) India is ranked third in the tech leadership charts for countries showing most promise for disruptive technologies like AI, robotics and IoT breakthroughs that will have a global impact.

With a vision to make India a digital economy, the government through its policies and regulatory interventions has provided a positive trajectory to the Indian Information and Communications Technology (ICT) sector through initiatives like Digital India program, formalisation of NDCP, Smart Cities and BharatNet.

Some of the other key initiatives undertaken by the government to support the growth of digital economy are:

• Right of Way (RoW)

• Ease of installation of infrastructure

• Proliferation of broadband through public Wi-Fi networks

• Common duct policy

• Next generation network

• Electronic Development Fund (EDF)

• Centre of Excellence for IoT

• Introduction of policies to promote Foreign Direct Investment (FDI)

• Amendment in unified license for active infrastructure sharing

• Favourable mergers and acquisition policy

• Formulation of spectrum trading and sharing norms.

06

Digital infrastructure Make in IndiaDigital empowerment of citizens

Innovation and centre of excellence

Governance

• 114,552 Gram Panchayats (GPs) connected through optical fibre network under BharatNet

• Enhanced outlay of USD957 million towards smart cities

• 28 State data centres

• 800 services being delivered on Government of India (GI) cloud initiative (Meghraj)

• 3,856 government departments and agencies integrated with Mobile seva platform

• 203 e-hospitals

• Electronics manufacturing clusters

• 120 mobile manufacturing units set up in last 3 years

• 225 million mobile handsets manufactured in India in FY18

• eTaal – significant growth in e-governance transaction per day (86.8 million transactions in 2018 till April)

• 2.92 lakh common service centres

• BHIM App touched a record high of 913 million transactions of USD15.5 billion in FY18

• USD51.7 billion value of digital payments made in FY18

• EDF with corpus of USD342 million for start-ups

• Nano technology centres

• Centre of Excellence for IoT

• 3rd largest start up ecosystem with 1000+ startups added in 2017

• Seven centres of excellence in emerging technologies

• Safe and secure cyberspace

• Robust cyber security policy, Information Technology (IT) Act and dynamic Indian Computer Emergency Response Team (ICERT)

• Botnet cleaning and malware centre

Source: MEITY and DOT Annual report 2017-18, https://www.thehindubusinessline.com/economy/budget/slick-rise-in-funds-for-smart-cities/article22624920.ece

https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/bhim-upi-transactions-touch-rs-1-trillion-in-fy18/articleshow/63574195.cms, Accessed on June 2018, Average FX conversion rate during 2017-18 - USD1 = INR64.46

01. The Changing Landscape of Disruptive Technologies, KPMG in US, May 2018

02. Annual Report 2017-18, MEITY

03. Smart Cities still a work in progress, The Hindu Business Line, 01 Feb 2018

04. BHIM UPI transactions touch Rs 1 trillion in FY18 , Economic Times, 02 Apr 2018”

Major milestones achieved through government’s initiatives02,03,04


07

The Indian telecom sector’s subscriber base is growing at a Compound Annual Growth Rate (CAGR) of 17.44 per cent05, reaching 1.1 billion during FY07-1806 and the sector’s revenue doubled from USD19.5 billion in FY06 to USD38.78 billion in FY1707. Numerous players in the market - TSPs, IP, regulatory bodies and the government have collaborated together and fostered the Indian telecom growth.

Over the years, the telecom sector has become a significant contributor to the country’s growth. The sector contributed 6.5 per cent to total Gross Domestic Product (GDP) in FY1808, generating direct and indirect employment opportunities for over four million people and attracting FDI of USD6.2 billion in FY1809.

Interesting facts summing up India’s current digital drive

05. KPMG India’s Research


07. COAI Annual Report, 2017-18

08. https://www.investindia.gov.in/sector/telecom, Accessed on 25 September 2018

09. FDI in telecom sector surges to $6.2 billion in 2017-18: Manoj Sinha, The Economic Times, 25 September 2018

Sources:

- www.worldometers.info;

- The Indian Telecom Services Performance Indicators, TRAI, January-March 2018, Accessed on 01 October 2018

- Statista; Digital in 2018, Hootsuite, Accessed on 01 October 2018

- Payment System Indicators, Reserve Bank of India, September 2018

- Annual Report 2017-18, MeiTY, Accessed on 01 October 2018.

Total population: 1.4 billion

Number of digital buyers: 224 million (2018)

114,552 GPs connected via high-speed broadband connectivity

E-commerce penetration: 26%

Total telecom subscribers: 1.1 billion

3.14 billion transactions recorded in FY18 on eTaal

M-commerce penetration: 20%

Total internet subscribers: 512 million

M-wallet transactions volume: 3.02 billion (2017-18)

Active social media users: 250 million

Mobile banking transaction volume: 1.87 billion (2017-18)

The sector contributed 6.5 per cent to total GDP in FY 2018, generating direct and indirect employment opportunities for over four million people and attracting FDI of USD6.2 billion in FY18.



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Internet penetration by country

Average fixed internet speed in Mbps

Average mobile internet speed in Mbps

Mobile’s share of web traffic

Unique mobile user penetration

Ecommerce annual ARPU: consumer goods (in USD)

Worldwide average 53% 40.7 21.3 52% 68% 833

Highest 99% 161.2 54.2 83% 84% 2,062

India 39.32% 19.7 9.1 79% 63% 113

Sources: Digital in 2018: Hootsuite report 2018; TRAI- performance indicator report June 2018

Sources: GSMA’s mobile connectivity index accessed on 16 October 2018

India Mobile connectivity index

The journey of the industry from being a communication provider to becoming an important economic enabler has passed significant milestones. The telecom sector has undergone radical transformations in the past few years and it stands as one of the most disruptive and customer focused industries today. India adopted the third generation mobile network (3G) in 2010 which introduced India to fast data speed and played a significant role in the path towards the transformation of sector from voice-centric to data-centric05.This received a further stimulus with the launch of the fourth generation of mobile networks (4G) and Voice over Long Term Evolution (VoLTE) services in the year 201505.Today, most TSPs in the country boast of providing 4G services to their subscribers and the industry is seeing a steady rise in the number of 4G customers. In addition to VoLTE, the industry has also rolled out the optical fibre network in excess of 2.8 million kms10 to provide reliable, secure, reasonable and high Quality of Service (QoS) to all citizens.

Today, the business is no longer only dependent on technology. Sure, that remains a driver; but only one of the many including asset-light business models and rapidly changing hyperlocal consumer preferences. Emerging technologies like 5G, IoT, M2M and cloud technologies have created a new paradigm to develop sophisticated, sustainable and scalable infrastructures to pave the way for ‘Digitalisation’. Hence, the ICT industry will be at the forefront of the newly emerging environment and help give a global competitive edge to the Indian economy. And that’s the threshold from which the next quantum leap – or the roll-out of 5G services – will occur.


10. Status of BharatNet, Bharat Broadband Network Limited, Accessed on 10 October 2018

Overall index 53.7

Infrastructure41.1

Affordability77.3

Consumer readiness

50.3

Content and services

51.8


09

Sources: Crisil Research, Accessed Date, 08 October 2018

IPTV

Industry 4.0

<1 4.7 10

Video conference

10% 73% 98%4K HD videos

Rural 2.0

12% 19% <50%

Cloud computing

% 4G datasubscribers

Rural internet penetration

% 4G data revenue

Data usage per subscriber per month (GB)

AI, AR, Big Data, IoT

2% 50% 83%

4G launch

5G launch

2013-14

233

905

283

970

322

1,034

401

1,170

473

1,183

488

1,196

520

1,234

580

1,263

663

1,287

2016-17 2019-20F2014-15 2017-18E 2020-21F2015-16 2018-19F 2021-22F

2016: Entry of a new player trigger high data usage; 60% spectrum unsold in auctions

Riding on technology wave, video OTT revenues to grow at a CAGR of 45% during 2018-2023

Deployment of IoT, AI, VR/AR across businesses

Significant infrastructure upgrade planned through NDCP 2018

2017: Data share in non-voice revenue reach 84% compared to 23% in 2013

2018: Consolidation amongst existing players

Total data subscribers Total subscribers

Growth of telecom industry

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Despite the rapid subscriber base growth, the Indian telecom growth story is in distress. In particular, in 2017, telecom companies (telcos) faced financial woes with a price war, which resulted in a sharp decline in ARPU. The decline was so sharp that it reached USD1.25 in 2017-1813 and USD1.13 in April-June 2018, the lowest level since 2010. Nonetheless, the industry is shifting gears to ride over the issue by varying its pricing and bundling strategy, consolidating synergies and expanding its footprint in the ICT ecosystem through acquisition. However, these initiatives are yet to show results. The government will play a critical role in re-energising and funding the sector to shape India’s digital landscape.

The road ahead

As disruptive technologies develop and consumer expectations evolve, most industries in India are facing a triad of change relating to technology, competition and consumers, bringing the telecom industry at the forefront of this tectonic change. With economic activities relying on information, communication and technology more than ever, the opportunity for the sector is vast.

The convergence between telecom operators, ICT infrastructure providers and content providers is set to generate prodigious opportunities to connect, create and innovate.

11. State/UT wise Aadhaar Saturation, 30 Sep 2018

12. Press Information Bureau ,Government of India, Ministry of Finance, March 2018

13. The Indian Telecom Services Performance Indicators Quaterly reports for FY17 and FY18

Connect, create and innovate

CONNECT the unconnected

• Total subscriber base is expected to reach 1.28 billion in FY22• By 2022, 10 million public Wi-Fi hotspots will be deployed• Aims to provide 1 Gbps connectivity to all gram panchayats by

2020 and 10 Gbps by 2022.

CREATE an ecosystem for digital enablement

• Telecom sector to create 11-12 million job opportunities in the services sector

• Attract USD100 billion of investment to the telecom sector by 2022

• Telecom industry to contribute an additional 3.5 per cent to the GDP from 6.5 per cent in FY18

• 5,000+ tech start-ups including 300+ ICT start-ups in FY17, estimated to reach 10,500 by 2020.

INNOVATE beyond connectivity

• Potential USD1 trillion of revenues for digitally enabled businesses by 2022 and USD1.8 trillion by 2025

• Cumulative USD1 trillion 5G economic impact in India by 2035• 2.7 billion IoT units and a market size of USD15 billion by FY20.

Sources:

- Readying India for a USD 1 trillion opportunity through Digital, Nasscom, December 2017 - 5G to offer $27 bn biz opportunity for India by 2026, The Economic Times, 22 May 2018 - Panel on 5G deployment in India predicts ‘$1 trillion impact on economy’, Hindustan Times, 23 August

2018 - INDIAN IOT MARKET SET TO GROW UPTO USD 15 BILLION BY 2020, Nasscom, 05 October 2016 - Digital India: Telecom skills group sees surge in job opportunities, The Economic Times, 25 November 2016 - Indian Start-up Ecosystem-Traversing the maturity cycle, Edition 2017, Nasscom, Accessed Date 08

October 2018 - Pradhan Mantri Digital Saksharta Abhiyan (Gramin), Pradhan Mantri Yojana, Accessed Date, 08 October

2018 - 5 Crore Rural Indians to Get Wi-Fi, Thanks to Union Budget Scheme, Daily Hunt, 02 February 2018 - Expect India mobile sector to create $217 bn value by 2020:Min, Business Standard, 27 September 2017 - National Digital Communications policy 2018, Department of Telecommunications, 01 May 2018.

CONNECT

CREATE

INNOVATE

The trinity of increasing mobile penetration, 1.2 billion aadhar cards11 and over 312 million Jan Dhan accounts12 enable real time direct benefit transfers and provide digital delivery of services like education, healthcare etc.


Connect the unconnected


11


Today the Indian telecom industry is at a crossroad, where it needs to meet the basic connectivity requirement of rural India including 4G proliferation

and the changing consumer requirements of urban and semi-urban India which demands next generation solutions through emerging technologies.

12

State-wise urban-rural teledensity - The stark urban-rural divide

And

hra

64.4

180.

4

134.

8162.

4

174.

0

167.

3

133.

3

165.

3

140.

5

313.

9

158.

4

145.

2

176.

5

141.

1

147.

5

177.

0

264.

8

153.

9

43.2

43.6

75.9

66.3

117.

7

56.0

63.6

76.7

44.6

74.3

49.4 58

.8 80.7

59.1

87.8

48.4 60

.7

Mah

aras

htra

Him

acha

l Pr

ades

h

Tam

il N

adu

Ass

am

Nor

th E

ast

J&K

Utt

ar P

rade

sh

Bih

ar

Oris

sa

Kar

nata

ka

Wes

t B

enga

l

Guj

arat

Punj

ab

Mad

hya

Prad

esh

Kera

la

Har

yana

Raj

asth

an

All India - June 2018 89.72

Urban teledensity 158.16

Rural teledensity 57.99

Rural teledensity

Urban teledensity

Source: The Indian Telecom Services Performance Indicators, January-March 2018, TRAI

While India’s overall teledensity stood at 89.72 per cent, rural teledensity remained low at 57.99 per cent in June 2018. Internet penetration in rural India has been at just about 19.48 per cent. As around 67 per cent of the country’s population lives in rural areas, the digital divide between urban and rural India is significant.

156.

9

The Indian telecom sector is going through an invigorating journey and it is exciting to be a part of it. As the Indian economy is leapfrogging towards digital growth, the telecom sector will play a critical role in not only enhancing the penetration of emerging technologies like IOT, AI, M2M through connectivity but also provide a platform to create solutions for consumers, enterprises and government to deploy these technologies to foster growth in different sectors. However, to unlock the true potential, it would be critical that all stakeholders in the sector, government and industry, work cohesively in addressing some of the pertinent challenges to ensure that the best of the services can be provided to the Indian telecom consumers at par with their global counterparts.

We assure the government of full support and look forward to be a path of the growth story.

Balesh Sharma

CEO Vodafone Idea Limited


13

Vectoring on rural IndiaWhile India’s overall teledensity stood at 89.72 per cent, rural teledensity remained low at 57.99 per cent in June 201801. Internet penetration in rural India has been at just about 19.48 per cent01. As more than 66 per cent of the country’s population lives in rural areas, the digital divide between urban and rural02 India is significant.

Not surprisingly, the focus of telcos has been shifting away from urban circles, which has hit or is hitting saturation levels. The rural sector is coveted despite infrastructure hurdles such as lower bandwidth and coverage, high upfront investment cost, low pricing power, and high customer switching among service providers. In the hinterland, aggressive expansion by operators and the launch of 4G (VoLTE) services has improved penetration. Similarly, the availability of local-language apps and devices have increased smartphone adoption, especially in rural areas.

On its part, the government has also been making facilitative investments. Its digital literacy drive is expected to reach 60 million rural households with an investment of around USD350 million by FY1903.

The phase 1 of the BharatNet project resulted in 1.1 lakh villages being connected and service ready04. In the recent fiscal budget, the government proposed an investment of about USD1.5 billion in FY1905 to develop additional telecom infrastructure.

Additionally, Public Private Partnership (PPP) models are also evolving such as Google’s partnership with RailTel as a backhaul provider for enabling public Wi-Fi hotspots at 400 railway stations. Eventually, these services will cover 6,000 railway stations06. Also, BSNL is partnering with Facebook to set-up community public Wi-Fi hotspots in rural India.

However, significant efforts from all stakeholders are required in broadband expansion and fiberisation which will be critical to eliminate the digital divide.


02. http://www.worldometers.info/world-population/india-population/

03. Pradhan Mantri Digital Saksharta Abhiyan (Gramin), Pradhan Mantri Yojana, Accessed Date, 08 October 2018

04. “BharatNet Phase 1: Target Achieved Through Meticulous Planning and Focused Implementation at Ground Level; Press Information Bureau ,Government of India, Ministry of Communications, Accessed in June 2018”

05. 10,000 crore to boost telecom infrastructure , The Hindu, 01 Feb 2018

06. 6000 railway stations will be Wi-Fi-enabled in next 6 months, Economic Times, 28 August 2018

Fixed and mobile broadband subscriptions per 100 inhabitants, in 2017

Fixed-Broadband Mobile-Broadband

Fran

ce

Finl

and

Finl

and

U.K

.

U.K

.

U.S

.

Chi

na

Fran

ce

Bra

zil

Chi

na

Kore

a (R

ep)

Sin

gapo

re

Sin

gapo

re

Bra

zil

U.S

.

Kore

a (R

ep)

Arg

entin

a

Arg

entin

a

Indi

a

Indi

a

Average of 27.5

Average of 100.1

43.8 153.841.6 148.239.3

132.9112.8

90.2 88.1

87.5 83.678.1

25.8

33.930.9

26.9

25.8

17.813.7

1.3

Source:The State of Broadband: Broadband catalyzing sustainable development, September 2018

The government has also been making facilitative investments. BharatNet and NDCP are aimed to provide the required momentum to the sector in terms of infrastructure and investment push however speedy implementation of these initiatives would be key.


© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved

14

India’s low broadband penetration compared to global peers signifies a huge potential for the industry. The NDCP released in September 2018, which aims to provide fixed-line broadband access to 50 per cent of households by 2020 and universal broadband coverage of 50 Mbps for every citizen07, should also boost broadband expansion. Moreover, the BharatNet project (phase 2) under the Digital India initiative aims to connect additional 150,000 Gram Panchayats (GPs) through high-speed optical fibres by end of 201808.

Currently, the average speed of Indian operators is below 10 Mbps09 and if we have to achieve

the 50 Mbps per citizen target, the government has to provide five times the spectrum and the telecom network has to grow from the present two million Base Transceiver Stations (BTS) deployed to 10 million. This will require focused and timely provisioning of resources. It will be important that the government intervenes to provide the requisite resources in terms of spectrum, right of way permissions, financial incentives and an implementation monitoring system to achieve the targets defined in NDCP 2018.

New asset-light operating models of fibre leasing and renting may be explored in view of declining profitability and stretched balance sheets. While some of the operators are currently focusing on expanding fibre home reach, policies and schemes encouraging active infrastructure sharing will shape up fibre leasing and renting dynamics in India.

07. “National Digital Communication Policy, 2018 - Draft For Consultation, Department of Telecommunication – Ministry of Communication, Government of India, 1 May 2018”


09. State of Mobile Networks: India (April 2018), OpenSignal, Accessed on 18 October 2018

Source: Status of BharatNet, Bharat Broadband Network Limited, Accessed on 11 September 2018

Status of BharatNet project

Sr. No. Description of work

Status as on Status as on Status as on

2 September 2018 3 September 2017 21 August 2016

1. Optical Fibre Communication (OFC) pipe laid

2,79,346 kms (1,20,713 Gram

Panchayats)

2,43,590 kms (1,08,275 Gram

Panchayats)1,55,398 kms

2. Optical fibre laid 2,87,878 kms (1,19,036 Gram

Panchayats)

2,25,475 kms (100,768 Gram

Panchayats)1,31,494 kms

3. Tenders finalised 3,291 blocks / 1,22,828 Gram

Panchayats

3,326 blocks /1,24,291 Gram

Panchayats

2,541 blocks /95,242 Gram Panchayats

4. Work started* 3,281 blocks / 1,22,305 Gram

Panchayats

3,242 blocks / 1,21,328 Gram

Panchayats

2,430 blocks /87,176 Gram Panchayats

5. Current weekly performance of optical fibre laying 386 kms 971 kms 1,089 kms

6. Current weekly performance of OFC pipe laying 194 kms 615 kms 830 kms

7. Optical fibre cable delivered on site 3,41,568 kms 2,86,944 kms 1,77,998 kms

8. Service-ready Gram Panchayats 1,14,552 Gram Panchayats

32,715 Gram Panchayats

8,472 Gram Panchayats

15

Urban India and the surge of data usageData consumption in India has grown exponentially over the past few years due to increased smartphone penetration and improved coverage of high-speed data network coupled with low data tariffs. September 2016 was a watershed moment when the arrival of a new greenfield operator resulted in a steep drop in data prices and subsequently resulted in an increase in average wireless data usage per

subscriber per month to 4.7 GB01 as of June 2018 (up from 420 MB in FY16)10. With continued operator investments in 4G roll-outs and aggressive operator data plans, there is an inherent shift in consumer data usage patterns. Incumbents followed suit and introduced aggressive 4G data plans, leading to a fundamental shift in the way consumers use data.

Falling data tariffs have led to rapid data uptake10

FY15

310

420

1,360

4,708

256229

68.5

16.4

Average realisation (Paise/MB)

Data usage/ subscriber/ month (MB)

Increase in data revenue has been offset by fall in data realisation

~7,000 MB

12.4 Paise/MB

FY18 FY20FY16 FY17

Source: Crisil Research, Accessed Date, 08 October 2018

Increased competition has led to commoditisation of voice revenue and emergence of data services as the primary driver of potential revenue growth for

telecom operators - average voice revenue per user declined about 30 per cent in FY18 and is expected to further decline by 15-20 per cent in FY1911.


10. Crisil Research, Accessed Date, 08 October 2018

11. CRISIL Research, 01 June 2018

With continued operator investments in 4G rollouts and aggressive operator data plans, there is an inherent shift in consumer data usage patterns



16

Demand for mobility, app-based and OTT services to spawn bundled services opportunitiesPersonalised 5+ inch screens in the form of smartphones and tablets have emerged as the preferred entertainment mode. Around 95 per cent of households12 in India own just one TV making smartphones the second screen for users. The low price of an entry-level 4G enabled device — starting at around USD21 for 4G feature phones and

approximately USD40 for a 4G smartphone13 has also contributed to increased use of mobile devices with 4G capable device penetration reaching 22 per cent at a pan-India level in 2017 from 12 per cent in 201614. Consequently, mobile as a medium has become the most popular and adopted device for consuming online content.

Source: Mobile data traffic in India to grow 5 times by 2023: Ericsson report, The Economic Times, 12 June 2018

Rise of digital media proliferation to drive future adoption

Share of average time spent

Share of time spent on digital mediums- 2017

Desktop/laptop Mobile devices

17.9%

30.8%72.6% 27.4%

67.8%

56.9%

Digital TV

2013

2018

390 mn 975 mn

~100 mn 800 mn

5.7 GB 13.7 GB

2017 2023

Smartphone subscription

VoLTE connections

Average monthly data usage per smartphone

12. India Trends 2018: Trends shaping digital India, KPMG, May 2018

13. CRISIL Research, 20 July 2018

14. India Mobile Broadband Index 2018, Nokia, Accessed Date, 20 Sep 2018

With expected exponential rise in data usage, telcos need to find new ways of monetising data.


17

Video streaming has the biggest share in media consumption

Active users (in mn) of OTT platforms

Online video audience (millions) Video OTT revenues (INR billion)

4-8% Others

8-10%Social Media

15-18%Browsing

65-75%Video streaming

Online video consumption grew 5X in 2017

YouTube 225

Operators’ OTT 50-100

Hotstar 75

ALT Balaji 2

TVF Play 4

Sony LIV 5

Netflix 5

Amazon 13

Voot 30

FY18E FY23P

225

550

FY23P

4.3

44.9

17.2

93.2

FY23P

CAGR – 50%CAGR – 60%

Advertisement Subscription

2017

2023

Sources:

- India Mobile Broadband Index 2018, Nokia, Accessed Date, 20 Sep 2018

- Media ecosystems: The walls fall down, KPMG, September 2018 Mobile data usage in India rose to the levels of a few developed markets in 2017 and is expected to surge 5x by 2023.

Video streaming contributed 65-75 per cent to total mobile data traffic in 2017 in India, driven by 4G uptake, the emergence of OTT players and availability of content in Hindi and regional languages.

CAGR – 20%


18

With this shift to a data-centric revenue driver, operators across the globe are exploring further data monetisation opportunities. Given the potential of the content market, operators are investing in content ecosystems (creation, curation and distribution) to provide further data value-adds. Operators like Telefonica, BT, AT&T are investing in developing content and evolving into digital media franchises with a sharp focus on bundled offerings including bundled TV, wireline and wireless phone services. Operators in India have also pursued different strategies with respect to defining and developing their content portfolios (from sourcing original content to being an aggregator of video and content platforms). The trend of investing in content can be expected to continue as operators strive to provide differentiated experiences to the end consumer with respect to content, media and video consumption.

The boundaries between Technology, Media and Telecommunications (TMT) sector are increasingly blurring across the globe with connectivity being the catalyst for this disruption and driving convergence of business models. As this convergence starts to play out across the globe, India is not likely to remain far behind.

Benefits and opportunities abound for the stakeholders of the TMT ecosystem as a result of the convergence theme.

• The convergence of traditional content-led organisations with telcos and technology led platforms results in content reaching a wider

audience base through a distribution medium which is increasingly becoming digital

• Convergence and digital distribution mediums also open up monetisation avenues for content creators – which have traditionally been led through advertisements. Convergence opens up a monetisation outlet, especially for a subscription-based revenue

• For the telecom operators, content becomes more important and has the potential to act as a key differentiator eventually helping with customer stickiness on their network

• Telcos can also look to monetise the projected surge in data traffic (by 2021, 82 per cent of all IP traffic is expected to be video)15 at scale.

Capitalising on this opportunity, telcos are changing their business models and are coming up with lucrative bundled offers and free subscriptions to certain OTT apps to drive ARPU. Telcos are evolving from pure voice providers to ‘triple-play’ or ‘quad-play’ players integrating their voice, data, and content offerings.

• Airtel launched Airtel Home, a digital quad-play platform bundling home broadband, fixed line, post-paid mobile and digital TV in June 2018

• Jio is betting on bundled OTT and Internet Protocol TV services along with voice and data.

15. Fast Data Use Cases for Telecommunications, Voltdb, September 2017, Accessed on 01 October, 2018

© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

19

Telcos globally, particularly in Europe, have leveraged the evolution of triple-play and quad-play models either against rising competition or to attract new customers.

• About 15 per cent of Belgian operator Telenet’s customers subscribed to its quad-play services in Q1 2018 compared to about 9 per cent in Q1 2017.16

Bundled offers increase average revenue in addition to reducing churn.

• Belgium-based operator Proximus’ multi-play subscriptions grew 7.2 per cent year on year. Its ARPU was EUR110-115 for multi-play offers versus EUR30-35 for single offers in Q2 2018. The full year annualised churn rate for multiplay was 2.9 per cent compared to 19.4 per cent for single play.17

• China Telecom has a 59 per cent triple-play penetration rate which has improved wireline broadband churn rate to 1.1 per cent.18

High speeds, enhanced network capability, and strong content competency are necessary to succeed in convergent strategies. Globally, telcos have opted to build, acquire or partner with different players in the ecosystem to enhance their service offerings.

Emergence of triple-play and quad-play services

Video/content

Data

Telcos Dominated by OTT players

Voice

WhatsApp, with an active monthly subscriber base of over 200 million in India, has virtually stopped the use of SMS for data subscribers

Either building their own platform or partnering with OTT players

Apps and streaming content directly to consumers through Internet

Impacting telcos’ basic communication service revenues i.e. messaging and voice

Evolution of telcos from being purely voice providers to ‘triple-play’ or ‘quad-play’ players

16. Telenet scores with quad-play bundles, Broadband TV News, April 26, 2018

17. Proximus Company Presentations, Accessed Date: 28 September 2018

18. 2018 Interim Results, China Telecom Corporation Limited, 20 August 2018

19. CRISIL Research, 01 June 2018

Data accounts for only 35 per cent of the revenues of Indian telcos despite the spike in volume. That’s in sharp contrast to chinese players whose data revenue accounts for 60-65 per cent of their total wireless revenue19.


20

Control over content is driven by collaborations and investment models

Content

Partnerships Strategic investments

• Airtel, Vodafone Idea aggregating content

• Airtel partnered with Hotstar for content comprising live sports, movies and TV shows

• Airtel partnered with Netflix.

• Reliance Jio aggregating content and investing in original and exclusive content

• Acquired digital rights for Winter Olympics 2018, EFL Cup and T20 cricket series

• Acquired 5 per cent stake in Eros International and 25 per cent stake in Balaji Telefilms20

• Announced merger of its music app with Saavn.

20. Reliance Industries to buy 5% stake in Eros for over Rs 340 crore, Times News Network, 21 February 2018

Multi-play strategies in India are still in their infancy. Telcos face a number of challenges related to infrastructure and digital literacy in rural areas, and most importantly, content including the availability of regional language content. However, monetisation opportunities have encouraged some players to take initiatives on the infrastructure and content fronts to strengthen their position as multi-play providers.

Create an ecosystem for digital enablement


21


As the digital revolution continues to accelerate and expand at an astonishing pace, business leaders are grappling with emerging technologies, fuelling simultaneous disruptions across all aspects of the enterprise. The transition from an industrial economy that favoured mass production and scale to a digital economy that favours information, is challenging the existing ecosystems. The fourth industrial revolution is quickly unfolding as the evolution of AI, IoT and

robotics move firmly into the mainstream and upturn businesses like media and entertainment, transportation, healthcare, security and retail. This places the ICT sector at the heart of this revolution, with telecom being the essential lifeline.

It is evident from a recent KPMG survey that companies which are able to deploy some of these new edge technologies are the ones driving business transformation.

22

The road to growth: Disruptive business models

List of several companies named by tech industry leaders as companies they believe are most likely to disrupt their business.

Source: KPMG Technology Innovation Findings, The Changing Landscape of Disruptive Technologies, KPMG US, 2018. The figures are based on responses provided by global industry leaders across 15 countries

Source: KPMG Technology Innovation Findings, The Changing Landscape of Disruptive Technologies, KPMG US, 2018

Alibaba

12%

Facebook

11%

Airbnb

10%

Amazon

9%

Google

9%

The survey also indicated that over the next three years, IoT is identified as the leading game changer and e-commerce as the biggest disrupter globally.

IoT AI Robotics

17% 13% 8%

23

The road to growth: Disruptive business models Based on KPMG Technology Innovations Lab’s findings through a global web survey of more than 750 technology industry leaders (CXOs, entrepreneurs, venture capitalists), e-commerce is seen as the top disruptor in the next three years.

Top disruptive business models by country to drive growth in futureEven though e-commerce would be a top disruptor globally, social networking platforms would be the top disruptor for India.

E-commerce platforms are transforming at the speed of light, from fast deliveries to highly efficient logistics and supply chain operations along with new mobile payment services and digital assistants. This top ranking is consistent with the tech industry leaders’ responses in identifying Alibaba and Amazon as top companies to watch as disruptors of their business.

Social networking platforms ranked second. These platforms are known to have a strong influence

on people’s life, behaviour and choices. Social network platforms also play an important role in the distribution of innovative technologies. Disruption resulting from transportation as a service and self-driving vehicles is reflected in the ranking of autonomous transportation platforms. Entertainment platforms ranked fourth as the shake-ups in traditional entertainment companies are expected to continue.

Social networking platforms

19%

Autonomoustransportation

platforms

14%

Entertainmentplatforms

11%

E-Commerceplatforms

26%

Source: KPMG Technology Innovation Findings, The Changing Landscape of Disruptive Technologies, KPMG US, 2018. The figures are based on responses provided by global industry leaders across 15 countries.

Source: KPMG Technology Innovation Findings, The Changing Landscape of Disruptive Technologies, KPMG US, 2018. The figures are based on responses provided by global industry leaders across 15 countries.

Autonomoustransportation

platforms

China India Japan U.K. U.S.

E-commerceplatforms

Entertainmentplatforms

Social networking

platforms

18%

16%

12%

12%

9%

20%

20%

10%

17%

15%

19%

19%

15%

12%

23%

29% 17% 30% 26% 24%

To reap the true benefits of technology for the socio- economic development of the country, it is important that all stakeholders come together and contribute towards providing an environment that will foster innovation, entrepreneurship and investments.



24

However, for India to emulate similar success in these businesses as its global counter parts, there is a lot that needs to be done. As per CISCO’s Digital readiness research released in May 2018, India’s score of digital readiness is 10.54, a little lower than the global average of 11.96, but with a vast difference with the highest score of 20.101, achieved by the U.S. The government is cognizant of the significant efforts required to make a digital India and NDCP 2018 is a progressive step towards the digital empowerment of India. NDCP 2018 has also outlined the following strategies to strengthen India’s digital footprint and coverage with the aim to achieve the following objectives by 202202:

1. Provisioning of broadband for all

2. Creating four million additional jobs in the Digital Communications sector

3. Enhancing the contribution of the Digital Communications sector to 8 per cent of India’s GDP from ~ 6 per cent in 2017

4. Propelling India to the Top 50 Nations in the ICT Development Index of International Telecommunications Union (ITU) from 134 in 2017

5. Enhancing India’s contribution to Global Value Chains

6. Ensuring Digital Sovereignty.

To reap the true benefits of technology for the socio-economic development of the country, it is important that all stakeholders come together and contribute towards providing an environment that will foster innovation, entrepreneurship and investments. It is believed that the two most important focus areas would be:

• Creation of a conducive environment for innovators and entrepreneurs to thrive

• Creating networks for the future, to support the functioning and adoption of the new edge technologies.

01. “Country Digital Readiness: Research to Determine a Country’s Digital Readiness and Key Interventions, Cisco, May 2018 “

02. National Digital Communication Policy, 2018

25

Start-ups adding significant value across industries India’s start-up ecosystem has grown at a rapid pace (1,000 tech start-ups added in 2017)03 and have played a big role in the growth of the Indian economy. Backed by improved connectivity and internet penetration, start-ups are building solutions across industries such as healthcare, banking, insurance, travel, agriculture and education.

India Start-up landscape

largest startup ecosystem

3rd

1

invested in 2017

USD 13.7 billion

6

Number of tech startups (2017)

5,200

2

YoY growth in top verticals

(2017) Health-tech

Fintech E-commerce

7

startups in the B2B segment

40%

3

accelerators and incubators

+190

4

active investors

+500

5

Tier II and Tier III cities

gaining momentum

828% 31% 13%

Sources:

- Over 1,000 tech start-ups added in 2017, says Nasscom, The Indian Express, 2 Nov 2017

- Indian start-up ecosystem- Traversing the maturity cycle, Edition 2017, NASSCOM, Accessed Date, 21 September 2018

- The YourStory 2017 Startup Funding Report – $13.7 billion invested across 820 deals, YourStory, 23 December 2017

- Business incubators leading growth of startups in India’s tier II/III cities: NASSCOM report, The Economic Times, 05 Dec 2017

Government backing has come in the form of the Start-up India programme, setting up an investment fund of USD1.38 billion04 to support development and growth of innovation-driven enterprises, tax incentives, patent right reforms, single-window clearances and easing of restrictions on foreign venture capitalists.

Incubators/accelerators play an important role by providing mentorship, nurturing ideas and extending technical support and providing access to funding. To encourage innovation, Niti Aayog as part of its Atal Innovation Mission (AIM) will provide USD1.49 million to 100 new incubators and USD30,000 to 500 tinkering labs in schools05.

However, despite the positive economic growth and government policies, India faces an uphill task to become a mature start-up community – mainly owing to skill-gap, lack of robust regulatory framework around data, compliance and Intellectual Property Rights (IPR), lower connectivity in rural areas and limited awareness in tier III cities that may contribute immensely to their ability to scale

and grow. For innovation to thrive, a multi-pronged approach has to be taken i.e. funding support, infrastructure support, tax and surcharge relief, regulatory and compliance support and enterprise level adoption.

Nonetheless, the start-up landscape shows tremendous potential in India and even the most conservative sectors such as Banking, Financial services and Insurance (BFSI) are embracing innovation and collaborating with start-ups. Technologies such as AI, Blockchain, Augmented Reality (AR)/Virtual Reality (VR), robotics and open Application Programming Interface (APIs) will bring profound changes in the way business strategies would be defined. The future will see the emergence of frameworks for concurrent adoption of these technologies and play a very crucial role in building a vibrant digital economy.

A conducive start-up ecosystem could accelerate the adoption of technologies and help create innovative models to monetise ICT opportunities emerging across industries.

03. Over 1,000 tech start-ups added in 2017, says Nasscom, The Indian Express, 2 Nov 2017

04. Start-up India Scheme, Department of Industrial Policy and Promotion, Accessed on 23 July 2018

05. Niti Aayog to fund tinkering labs in schools to boost scientific temper, Livemint, 30 May 2016


26

The transition from an industrial economy that favoured mass production and scale, to a digital economy that favours information, is challenging the existing ecosystems. The fourth industrial revolution is quickly unfolding as the evolution of AI, IoT and robotics move firmly into the mainstream.

Start-ups have played a major role in the growth of the Indian economy across industries such as healthcare, banking, insurance, travel, agriculture, and education. Further efforts in areas such as skill development, a robust regulatory framework and greater connectivity would contribute immensely in their ability to scale and grow.


Networks for the future


27


With the emergence of disruptive technologies, network upgrades will be key to survival. While 5G will be a game changer, the telcos will have to improve on their existing networks to enhance their performance. Ubiquitous connectivity, faster data speed, smarter devices and increased data traffic have changed the dynamics of telecom network infrastructure requirement.

28

Factors influencing investment in telecom infrastrucuture

Source: – KPMG in India’s analysis in 2018

Future corporate networks

Provide high-speed and high-reliability

networks to improve productivity, reduce costs and support enterprise digital transformation

Digital industrial ecosystems

Participate and collaborate in

bringing multiple under one digital umbrella (e.g. for

smart city)

Proliferation of OTT services

Support customer demand for rich

content such as 4K, 8K, virtual reality (VR), augmented reality (AR) and

360-degree videos

Need for connected devices

Improve latency of 4G LTE, leading to

increased efficiency

Support massive machine-type

communication

Advanced analytics

Digitise business models of telecom and allied industries

Segment customer and provide customised

solutions

Telco expectation


29

Comparison of India vs peers on quality of service (QoS) parameters

Source: State of the Mobile Network – India: April 2018; US: July 2018; UK: April 2018; Singapore: May 2018, OpenSignal. Note: speed, latency and 4G coverage are average of maximum and minimum

SINGAPORE

SIN

GA

PO

RE

U.K

.

U.S

.

ND

IA

SIN

GA

PO

RE

U.K

.

U.S

.

IND

IA

U.K. U.S. INDIA

46.5

30.2 ms 43.8 ms 59.2 ms 72.9 ms

22.1 18 9.1

India’s 4G download speed compared to global peers…

...even lags behind in latency

India’s 4G coverage lowest compared to global counterparts

86% 79% 91% 68%

A few critical aspects for telcos to facilitate a swift move towards achieving latency requirements having a bearing on QoS are:

• Infrastructure upgrade including effective placement of cell sites for maximum coverage to demand-heavy areas. Sites to be connected by Optical Fibre Communication (OFC) or ‘Fibre to the Tower’ approach

• Confluence of networks, Wi-Fi and Bluetooth for faster connectivity

• Transformation of network architecture by reinventing IT platforms

• Adoption of Artificial Intellgence and Machine Leaning based technologies to ensure smooth functioning of existing networks and new roll-outs.


30

Source: Global Mobile Data Traffic Forecast, 2016–2021 Q&A, Cisco Visual Networking Index, 31 July 2018

On the network front, Wi-Fi is emerging as an omni-present free-of-cost alternative providing fast access to data.

Pervasive connectivity

Wi-Fi, an enabler to facilitate omni-present network

Issues addressed

Connectivity gaps

Wi-Fi spectrum sharing between operators leads to high traffic load, resulting in lower speed and connectivity

Release of relevant unlicensed spectrum and other policy measures to support Wi-Fi expansion

Establishing Self-Organising Networks (SONs) that use AI and ML based technology to help telcos monitor and control traffic

Globally, data offloading through Wi-Fi is expected to reach 63% by 2021

High-speed indoor coverage

Wi-Fi hotspots

Capacity for congested networks

Challenges

Potentialresolutions

In India, only 16 per cent of public data is offloaded to public Wi-Fi networks, compared to the average of 30 per cent in the U.S., the U.K. and France, mainly because of lack of Wi-Fi infrastructure01.However, government impetus for increasing Wi-Fi hotspots to 10 million by 202202 and policy reforms such as the simplification of Right of Way (RoW) should ensure universal connectivity as well as low cost for operators.

Telcos are establishing Wi-Fi networks in public places such as shopping malls, railway stations, gardens and theatres, and are increasingly partnering with each other to expand their Wi-Fi hotspot network. TSPs and ISPs are jointly working on providing seamless and interoperable internet and broadband servcies through public Wi-Fi hotspots.

Femtocells (small towers installed at the user’s location) and Li-Fi (uses light bulbs for transmission) are other emerging technologies that can support universal connectivity and bandwidth in future.

Players globally are developing models to efficiently use Wi-Fi to bridge their offline and online presence. In China, the Online to Offline (O2O) model is gaining traction, helping retailers’ market products by using Wi-Fi and location-based techniques. A major internet player partnered with one of the leading commercial Wi-Fi service providers to extend its reach to the offline channel for marketing products.

01. Telcos may cry hoarse but India needs public Wi-Fi, Livemint, 10 July 2018

02. National Digital Communications Policy, September 2018

Government impetus for increasing Wi-Fi hotspots to 10 million by 2022 and policy reforms such as the simplification of RoW should ensure universal connectivity as well as low cost for operators.

31

While a robust infrastructure backbone is a must for handling increasing data, prudence on technology adoption, network upgrade and overall transformation is also called for. As 4G-LTE is gaining traction in India, competitive disruption and its impact on profitability and leverage will govern the capex decisions of telcos in the next few years.

Fiberisation of backhaul will allow enhanced capacity and low latency, and is critical before 5G deployment. In India, about 80 per cent of cell sites are connected through microwave backhaul and only 20 per cent through fibre03. However, 70-80 per cent fiberisation is required for effective/efficient 4G and 100 per cent for 5G04. Cumulative fibre-deployed-to-population ratio in India is about 0.1x, compared to 1.2x for the United States and 0.7x for China05.

Over the past few years, Indian telcos have expanded their fibre network. A large telco aims to roll out 9,000 new sites and 4,150 km of fibre optic in FY19, taking its fibre backbone to 23,100 km06.

One of the Indian telecom operators plan to invest USD7.29 billion in fibre network development07. In FY19, approximately USD10.85 billion (excluding 5G spend) investments will be incurred on network infrastructure08. A significant proportion of these investments will be incurred on strengthening backhaul.

Indian operators are still rolling out the 4G network, and coverage in the country lags behind global peers. The exponential growth in data consumption necessitates new technology to raise throughput. Operators globally have increased throughput through technologies such as Carrier Aggregation (CA), advanced multiple-input and multiple-output (MIMO), and higher order modulations (for instance, 256-QAM).

Indian telcos have already adopted 2-band CA. Given the consolidation in the industry, 3-band CA is the next prudent step and can help raise peak speed to up to 160 Mbps09. Indian operators conducted commercial trials for 4x4 MIMO technology in 2017, and have begun deploying it in April 2018.

CA benefits for global telcos

Building infrastructure blocks from 4G to 5G

Technologies to expand capacity and smoothen transition to 5G

03. 5G a distant dream for India when backhaul takes a back-seat: Experts, The Economic Times, 11 Aug 2017

04. Why India must get fibreised to leapfrog to 5G, The Financial Express, 17 February 2018

05. “Finolex Cables Rating ‘Buy’: Edelweiss says reasonable growth lies ahead, The Financial Express, 16 April 2018”

06. “Airtel announces massive expansion plans for its future-ready network in Rajasthan, Airtel, 28 August 2018”

07. “Reliance Jio to invest Rs 50,000 crore to build JioGigaFiber network: report, Business Today, 31 July 2018”

08. “Post-Jio onslaught, industry survivors pin revival hopes on soaring data usage and consolidation, Crisil Research, 18 September 2018”

09. India Mobile Broadband Index 2018, Nokia, Accessed Date: 28 September 2018

South Korea’s largest telecom operator reduced its

churn to 2.1% from 2.4%

Singapore’s largest telecom operator improved its throughput to 300 Mbps, twice that of the previous level, and improved its

market share by 3.4%

Germany’s largest telecom operator improved its throughput

to 300 Mbps, twice that of the previous level. It improved data ARPU to USD8.1 (USD7.8

previously)

Source: India Mobile Broadband Index 2018, Nokia, Accessed Date: 28 September 2018

The telecommunications sector is at the core of any nation’s growth and development, and India is no different. Over the years the sector has played a stellar role in ensuring connectivity for all. We are today on the brink of the next wave of growth in the form of new and innovative services. Globally CSPs are not only focusing in making their networks more agile and cost effective through implementation of technologies like SDN and NFV but also creating new business verticals by developing customised solutions around IOT, analytics, M2M. As some of these technologies are still fledgling, CSPs prefer to partner with tech/platform providers to develop some of these solutions for their enterprise customers. This convergence is a start of a new era, a beginning where the role of the CSP is expected to be much larger where their strategy should evolve beyond connectivity. MSPs will play a critical role in equipping them with technology and expertise to make this network transition seamless in this journey.

Sanjay Malik

Head of India market at Nokia


32

Cloud has been at the forefront of major disruptions in the ICT industry over the past few years. The growth in data traffic from videos to an increased adoption of bandwidth consuming apps is forcing service providers to spend significantly on equipment

in order to keep pace with the ever-growing demand of higher bandwidth. The telecom operators are increasingly accelerating investments in cloud technologies and expertise to be more agile, cost-optimised and increase customer satisfaction.

Cloud

Telco cloud

Telco as cloud user

Telco as Cloud Service Porviders (CSP)

Virtualised network

New business models

Software defined networking

Product innovation

Network functions

Alliances and partnerships/Ecosystem

OSS/BSS migration to cloud

Agility and flexibility

Build and sell own IaaS

Optimised connectivity

New revenue streams

More innovation

Cloud brokering services

Customised products and services

One of the emerging solutions is ‘Fog computing’, which has the potential to extend cloud computing to power both cloud and mobile applications through virtualised resources. Less data is transported to the cloud for data processing, analysis and storage, raising efficiency and security characteristics. Fog is predominantly relevant to IoT, as substantial bandwidth is required to transmit significant data volumes generated by all the connected devices and sensors for processing and analysis.

Fog computing



33

Additionally, numerous innovations adopted by global operators to expand network capacity and strengthen signalling, are gradually making inroads in India.

Source: KPMG India’s Research

New technologies to upgrade/modify 4G and facilitate 5G roll-out

Quadrature Amplitude Modulation

LTE-A Pro

Cloud RAN

Narrow Band IoT

Beam Forming

Network Slicing

Massive MIMO

LoRa (Long Range)

Heterogeneous Networks (Hetnets)

Key Feature - Higher transmission of data per waveform Benefit - Improves network capacity

Key Feature - Interconnection of multiple carriers (up to five)Benefit - Releases spectrum capacity and allows high bandwidth (100 MHz)

Key Feature - Central cloud-based units to link core network with user and enable mobile edge computingBenefit - Low latency, faster speed and network flexibility

Key Feature - Connects IoT-based devices and M2M communicationBenefit - Throughput optimisation (up to 200Kbps)

Key Feature - Radio interface; beam is directed from cell base station to user deviceBenefit - Helps in strengthening signal capacity

Key Feature - Multiple networks over common infrastructureBenefit - Higher speed and wide coverage

Key Feature - Antenna technology for wireless communication Benefit - Eliminates network interference and signal fading issues

Key Feature - Long range and low power consumption wireless technologyBenefit - Higher range compared to existing cellular networks

Key Feature - Include both large and small cell sitesBenefit – Support different radio technologies such as Wi-Fi and wireless

SDN and NFV to optimise network architecture

Growing data consumption and bandwidth requirement necessitate dynamic network architecture to handle traffic and storage. Software-defined networking (SDN) and network function virtualisation (NFV), which use virtualisation, are two major network design-related technologies touted as transformational. They allow operators to:

• Upgrade and configure network quickly at a low cost due to standardised servers for software and control functions

• Launch new services and applications quickly as standardisation eliminates recurring network reconfigurations.

The use of AI, ML, and deep learning will facilitate automation and integration of SDN and NFV technologies into the network. These technologies help operators automate manual activities and eliminate delays and errors, thus ensuring faster services and cost benefits. Precision algorithm for intelligent network optimisation, effective operations, and precautionary maintenance is also essential.

• One of the telecom operators in India partnered with a Korea-based telecom operator to install AI-enabled networks along with machine learning and big data analytics. This helped to improve customer experience by detecting network issues, troubleshooting, and optimising network usage.

34

While India is taking multiple initiatives, it has a long way to go in terms of expansion, modernisation and improving the efficiency of networks before 5G is rolled out by 2020

India’s technology benchmarking versus global peers

5G 4.5G – 4.5G Pro 4G Fiberisation SDN-NFV

Low adoption High adoption

India

5G test bed set-up with IIT Chennai in 2018

LTE-A: February 2016 (2 band CA)

• Leading Indian operator partnered with AT&T and Linux foundation for technology innovation

• Leading Indian operator and SK Telecom partnered for developing SDN/NFV

• Limited policy support

Japan

U.K.

South Korea

China

Trials completed in May 2018 Commercial launch in 2020

Test trials by operators in October 2018

• Soft launch in 2018 Olympics

• Network roll-out in 2019

Test trials by operators in end of 2018

• LTE-A: March 2016 (2 band CA)

• LTE-A Pro: Testing phase

• LTE-A: November 2013 (2 band CA)


• LTE-A: November 2013 (2 band CA)

• LTE-A Pro: September 2017

LTE-A: September 2015 (3 band CA)

NTT DOCOMO to virtualise 75 percent of network by 2020

British Telecom uses wide area networking (SD-WAN) and NFV to launch Network Automation Platform and a new service

Korea Telecom implemented all layer transformation for SDN/NFV in 2017

China Mobile deploys SDN/NFV in September 2018 for core network separation

U.S.

Commercial launch of 5G in October 2018

• LTE-A: March 2014 (2 band CA)


• AT&T to virtualise 75 per cent of network by 2020

• Centurylink virtualised 60 per cent of PoPs as of 2017


35

The move towards virtualised networks and cloud has indeed allowed telecom operators to be more agile and flexible; however, there are still challenges faced worldwide in a software-dominated environment.

• Migrating legacy set-ups: In actual network scenarios, operators are likely to migrate from their legacy set-up and establish a thorough network functionality using software running on a cloud-based virtualised infrastructure. They would have to do this across different network layers and overhaul their current Operational Support System (OSS)/Business Support System (BSS) systems to properly bill for a new range of services rather than network products

• Interoperability: Telcos also face a distinctive set of challenges while entering a virtualisation space, especially when moving towards the path of VNF. The integration of legacy platforms would be a significant challenge and in addition to that the skill set refresh of the existing workforce could pose another risk

• Data security: Telecom operators, on their journey from being a network company to a cloud company, are likely to face a plethora of challenges in securing the cloud. Cyber risks are high and growing at a substantial rate, which further poses a challenge

• IoT as risk: Cloud computing is a prerequisite for IoT, which requires bandwidth to connect thousands of devices, where sensors try communicating with each other, and if not managed efficiently, the system could crash. As the IoT market has a direct connection with the cloud, the telcos need a secured framework to determine the security of personal data from any data breaches and cyberattacks.

5G will allow operators to move beyond connectivity and collaborate across sectors such as manufacturing, finance, transport, retail and healthcare to deliver new and personalised services. Opportunities related to IoT, M2M and AR/VR will create new revenue streams from B2C, B2B and business-to-government (B2G) segments.

Given a plethora of applications that will be driven by 5G, network and service quality will be of critical importance in the networks of tomorrow. Given the volume of data available at their disposal, investments and capability building in the data and analytics space will be crucial for operators to service the 5G requirements from both an effectiveness and efficiency perspective. Specifically, enhanced use of analytics will be critical to further streamline network and business operations while maintaining a high level of network availability and minimising network downtime (which could be catastrophic for the mission critical applications).

The first commercial use of 5G is expected to be for enhanced mobile broadband (eMBB) and Fixed Wireless Access (FWA) services which will meet the performance requirements of high-demand applications such as AR/VR and ultra-high-definition (UHD) video. Beyond eMBB, networks will be able to handle different demands on mobility, latency, reliability and device density from industries such as automotive, manufacturing, energy and utilities, and healthcare.

Key challenges in terms of transition and deployment:

5G

Rapid advancements in the use of machines to augment human intelligence are creating a new reality in which we increasingly interact with robots and intelligent agents in our daily lives, both privately and professionally . The list of examples is long, but a few of the most common applications today are found in education, health care and gaming. As we look into the future the network will be an intelligent platform that enables this new reality by supporting the digitalisation of industries and society. This network platform consists of three main areas: 5G access, automation through agility and a distributed cloud. This network platform would perhaps deliver truly intuitive interaction between humans and machines. We are fully committed to support the government’s vision of bringing 5G to India to aid the realisation of ‘Digital India’ initiatives.

Nitin Bansal,

Chairman and Director, Ericsson India Pvt. Limited


36

While operators can offer a number of data-intensive applications through modification and upgrade of networks, roll-out of 5G will be critical for services requiring >1 Gbps downlink speed10 and 1ms latency11. AR, VR, and cloud-based applications will be the key 5G-enabled applications requiring new technology rollouts and network architecture.

Emergence of new revenue streams from B2B and B2G, coupled with growing data monetisation in B2C segments, is likely to aid revenue growth. 5G-enabled industry revenue has the potential of adding USD27 billion business opportunity for India by 2026, out of this USD13 billion is addressable revenue opportunity for telcos should they be willing to expand their play beyond connectivity.

5G opportunities for telcos

1 2 3

2020 Expected launch

Predicted to account for 20% of all data traffic by 2023

Estimated to USD13 billion addressable revenue opportunity by 2026

IoT sensors and networks

5G Framework and IoT Platform

to Facilitate Enterprise Solutions Traction

Connected utilities

Smart cities

Industrial automation

Autonomous robots

Public asset management and maintenance

Intelligent automation

Remote delivery

Cloud infrastructure

Intelligent predictive warehousing demand and supply control

Agriculture (USD400 million) Healthcare (USD1.6 billion)

Public Safety (USD1.6 billion) Manufacturing (USD2.4 billion)

Retail (USD1.15 billion) Energy and Utilities (USD2.1 billion)

USD 1 trillion cumulative economic impact of 5G in India by 2035

Sources:

-. 5G network to account for 20% of all data traffic in 2023: Ericsson, Hindustan Times, 15 June 2018

- 5G to offer $27 bn biz opportunity for India by 2026: ERICSSON, The Economic Times, 22 May 2018

10. 5G to offer $27 bn biz opportunity for India by 2026: ERICSSON, The Economic Times, 22 May 2018

11. ITU Regional Seminar 5G Implementation in Europe and CIS, July 2018

However, huge spending on the existing network and fiberisation may restrict immediate large investments on 5G by Indian operators. So while there is consensus of thoughts on the benefits and potential of 5G, its implementation and economic viability still remains a challenge. The existing financial stress on the telecom sector leaves little room for telcos to invest in 5G.

Modification and upgrade of networks, rollout of 5G, including AR, VR and cloud based applications, will be critical for services requiring >1 Gbps downlink speed and 1ms latency.


It has been predicted that there will be 40 billion personal smart devices and 100 billion internet connections around the world by 2025. This will virtually eliminate information silos and mean faster, more secure and more intelligent data exchanges. Annual storage of data generated from this will reach up to 180 billion TB, a 20-fold increase compared with today. India will also play a significant role in this as it prepares for 5G roll-out. Research has shown that many organisations are already working to seize the first-mover advantage in the deployment of intelligent innovation platforms, aiming to lead in the intelligent world. Enterprises that succeed in integrating sensing, connection and intelligence into their businesses will be the biggest winners in the intelligent world.

Mr Jay Chen,

CEO, Huawei India

37

Source: Understanding 5G: Perspectives on future technological advancements in mobile, GSMA Intelligence, Accessed on 7 September 2018

Bandwidth throughput and latency requirement for 5G-enabled applications

India is lagging on quality parameters such as throughput, latency and 4G coverage. To provide next-generation offerings, telcos in India will require sufficient network capacity to offer high-speed data access and ensure minimum latency.

With their role expanding beyond just connectivity, telcos will have to invest in next generation networks required to strengthen traffic handling capacity, therefore, ensuring high standards in service quality and data storage.

1© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Document Classification: KPMG Confidential

<1 Mbps 1 Mbps 10 Mbps 100 Mbps >1 Gbps

1,000ms

100ms

10ms

1ms

Disaster alert

Automotive ecall

Monitoring sensor networks

Device remote controlling

Autonomous driving

Real-time gaming

Video streamingPersonal cloud

Wireless cloud-based office

Bi-directional

remote controlling

Augmented reality Tactile Internet

Virtual reality

Multi-person Video call

First responder connectivity

Fixed

On the go

Nomadic

M2M connectivity

Services inside the blue box to be delivered by legacy networksServices outside the blue box to be delivered by 5G networks


38

Sources:

- CRISIL Research, 8 October 2018

- India will soon be a leader in IoT, Business Insider, 15 May 2018

Rising demand and cost pressures driving technology adoption

Rise in volume of data being carried by cellular networks- AR/VR, HD video

2020 - 2.7 billion units of IoT devices USD15 billion market size

Critical, real-time and bandwidth intensive application requiring high performance networks.

Continued roll-out network transformation to support revenue and

reduce cost4.5G, 5G, network-slicing, to increase spectrum capacity, bandwidths and

denser radio architectures

SDN/ NFV – An enabler for virtualisation,

flexible architectures to optimise network opex

cost

Network opex growing to 31 per cent in FY20 (22 per cent in FY15)

EBITDA margins declining 28 per cent in FY20 (33 per cent in FY15)

Total Debt- Approximately USD119.44 billion in FY18

Cost pressureDrivers

Technological solutions to support revenue growth and contain cost

Operators will face the need to reinvent business models on both the consumer and enterprise sides to meet the rising demand spurred by improved networks. Meeting customer expectations in terms of latency, quality and scalability will be paramount in successful deployment of services.


Innovate beyond connectivity

39


Demand for enhanced customer experience

Since the introduction of 3G, consumers have demanded higher internet speeds and improved connectivity. The proliferation of smartphones and roll-out of 4G has propelled the demand for data and placed on-the-go content in the hands of the consumers. 4G has spurred higher data usage through gaming, video conferences, consumption of videos, web browsing and social media, with the availability of high quality video formats and increased bandwidth. This has led to a seismic shift in consumer demand and expectations and telecom operators are rapidly evolving and upgrading their networks to stay ahead in the game. They are investing in enhancing their customer offerings through acquisitions and partnerships and creating a digital backend, which can enhance customer experience.

However, the existing high customer churn rate indicates that telcos need to do the following to increase customer loyalty:

• Differentiate beyond networks: They need to deploy disruptive technologies that can help provide a better customer experience. These include mobile apps, Software as a Service (SaaS), AI, IoT intervention, wearables and AR/VR

• Use advanced analytics to understand customer preferences based on digital behaviour

• Transform the organisation culture and inculcate a customer-centric approach across all functions.

Omnichannel user experience

Consumers have an increasing preference for on-the-go applications. This requires strengthening of technologies allowing ubiquitous access for enhanced user experience. The emergence of digital technologies has led to the popularity of smartphones, social media, smart TV and wearable gadgets, making the digital platform a key part of the customer’s journey in a service or product cycle.

40

With evolving networks and proliferation of 4G/ 5G devices, consumer needs are evolving beyond connectivity and demand has shifted to data and on-the-go content in the hands of consumers. Operators are increasingly focusing on investing in enhanced service delivery capability through acquisitions and partnerships and creating a digital backend, which can enhance customer experience.


Telcos need to offer an omnichannel user experience because of the emergence of varied touch points and user expectations on quality. This requires customisation of services through development of intelligent interaction platforms.

Omnichannel digital platforms enable telcos to offer customised solutions by monitoring the customer’s journey from acquisition to churn and creating actionable insights. Moreover, they can provide a single platform for consumer grievance redressal and for offering a suite of digital services such as music, games, online payments and education. This may help telcos monetise data, reduce churn and limit competition from OTT providers. Some examples of omnichannel adoptions are:

• One of the Indian telecom operators recently launched a quad-play platform in a move

towards omnichannel customer experience through unified billing

• Telcos globally are bundling services such as chatting, video sharing, mobile payments and taxi services under these platforms.

41

Intelligent interactive platforms integral for enhanced customer journey

E-commerce Compares similar products

Research Select Purchase Pickup Use Feedback

Reads reviews on Facebook, Twitter

Tweets usage experienceBrowses company website

Web search for store location

Adds to cart and places order

Pickup information

Welcome email

Bill information

Pays bill

Picks order

Calls for add-on services

Visits retail storeStore

Social media

Contact centre

Email

Mobile

Company website

Removal of silos

Unified view

Tracking customer journey

Predictive analytics

Omni-channel digital

platform


42

Customer centric ecosystem

Ownership of data which includes: consumer buying and viewing behaviour, location-based services and real-time data from customer interaction can help telcos leverage big data analytics.

• Telcos can utilise this data for contextual marketing and for upselling and cross-selling

• Information gained from location-based services

allows telcos to strategise store locations, layout and billboard placement

• Telcos can study consumer behaviour data and collaborate with marketers and other clients to develop customised products across industries. Telcos globally are creating consumer-insight products in partnership with IT companies.

Customers

My attention

My watchMy

connection

Slice of the wallet

Dimensions of my life and my wallet

My wallet

My motivation

Mind

Work

Transport

Personal media

Home

Finances

Shopping

Body

News and entertainment

Commu- nication

Source: Innovation Lab at KPMG Ignition, KPMG in the U.S.


The time has come for the world to sit up and take notice of India and its capabilities. India today is doing things in the technological space which the rest of the world can learn from and emulate. Leading organisations are choosing India to be one of their centres of excellence to develop technologies which can be exported the world over. We as an organisation remain extremely committed to the Indian market and consider it an honour to act as a catalyst in the Indian growth story.

Sanjay Kaul

Cisco India Head

43

Enterprise offerings to drive the next wave of demand

While consumer demand has led to rapid uptake of 4G and operators are investing heavily in building 4G networks, the next wave of innovation in the telecom sector will be pivoted around enterprise solutions led by 5G. 5G will engage a new generation of consumers and enterprises lured by innovative services and seamless connectivity. 5G, in its initial phase is likely to be targeted at consumers to deliver enhanced mobile broadband experience and its next phase, may provide an opportunity for operators to go beyond connectivity and partner with service providers across finance, transport, retail, health and other industry segments to deliver demand stemming from their agenda of becoming digitally agile.

This not only opens up opportunities for telcos to participate in B2C technology proliferation but also to innovate in B2B offerings. The consumerisation of technology will mean that the future telecom business models are likely to be driven by users – whether in a consumer or enterprise context. To participate in this opportunity, telcos need to transition their role into not just a connectivity

provider but also transform themselves into a service provider to provide solutions to specific industry verticals, adopting ‘networks as a service’ model.

Industry experts estimate India’s IoT market size to touch USD15 billion by 202001. To participate in this journey, telcos need to create new network platforms, business models and capabilities to harness the new technology.

If incumbent telcos are not prompt then non carrier service providers and system integrators can continue to fill the void.

Network as a service is likely to force telcos to collaborate with hardware providers, data storage providers and system integrators to provide a holistic IoT solution to businesses. The potential opportunities for collaboration seem unlimited. But to capture value, telcos need to be at the forefront to understand the enterprise solution requirement and bring together an ecosystem of innovators to provide a well-rounded approach.

01. INDIAN IOT MARKET SET TO GROW UPTO USD 15 BILLION BY 2020, Nasscom, 05 October 2016


44

Redesigning the wheel

With rising internet users, businesses need to reinvent the way they interact with increasingly tech-savvy customers.Changing consumer expectations, connectivity, network capabilities, cheaper data and devices are altering the dynamics of most of the industries. These factors, along with policy reforms, evolving and converging business models, infrastructure investments and increasing mobility are pushing the industry towards a digital ecosystem.

Demand drivers for innovation

CONSUMER DEMAND

CONNECTIVITY

TECHNOLOGY/INNOVATION

Broadband

3D printing

Data analytics

AR/VR

IoT

AI Blockchain

Robotics and automation

CloudOmni-channel digital platform

4G-5G networks

Fiberisation

Wi-Fi hotspots

Cheaper smartphones

Converged services

Competition Investments

Internet penetration New entrants

ConsolidationGovernment

initiatives


45

Businesses are creating digital platforms to replace or augment their high-cost physical infrastructure for delivering services, increasing customer outreach, tracking and improving performance and creating new business opportunities. Telecom has been instrumental in developing a digital society. However, it is the enterprise transformation that will be pivotal to India’s overall growth and a game changer for the telecom industry. Telcos are a building block of the digital evolution, but their role has been limited to providing connectivity. The returns of digital growth have not accrued to the telecom sector. With legacy revenues being under pressure, telcos should focus on creating new business models to provide solutions beyond connectivity. Integrated IoT, cloud, AI and data analytics offerings can accelerate digital businesses across various industries, including industrial markets, media and entertainment (M&E), banking, healthcare, e-commerce and transportation. As per the KPMG Innovations Lab’s findings during an online survey conducted in November-December 2017, about fifty per cent of tech industry leaders expect media, transportation, healthcare, and consumer markets to have the greatest transformation in the next three years.In recognition of new business models and disruption successes such as Netflix and Amazon Prime, the U.S. sample pegs media to be heading toward the greatest transformation (18 per cent) , a finding reinforced by the U.K. at the same percentage. China, at the forefront of AI-empowered news and messaging sites, rates media relatively high as well. China’s embrace of mobility as a service, including ride sharing, can be seen in the strong (18 percent) rating in the transportation vertical.

Exponential growth driven by technology and innovation

5G, in its initial phase is likely to be targeted at consumers to deliver enhanced mobile broadband experience and its next phase, may provide an opportunity for operators to go beyond connectivity and partner with service providers across industry segments to deliver demand stemming from their agenda of becoming digitally agile.


With legacy revenues being under pressure, telcos need to focus on creating new business models to provide solutions beyond connectivity. Integrated IoT, cloud, AI and data analytics offerings can accelerate digital businesses across various industries, including industrial markets, media and entertainment (M&E), banking, healthcare, e-commerce and transportation.

46

The above figures were collected during an online survery and captured the opinion of over 750 global tech industry leaders across geographies

Top industries that are predicted to have the highest disruption/transformation in the next three years

Automotive/ transportation

Global U.S. China India Japan U.K.

Consumer markets/retail

Education

Energy/Utilities

Healthcare

Industrial manufacturing

Media

Telecommunications

13%

11%

8%

8%

12%

10%

14%

10%

13%

13%

13%

5%

11%

10%

18%

7%

18%

14%

8%

6%

11%

4%

11%

16%

14%

9%

5%

14%

6%

8%

6%

12%

13%

7%

13%

0%

17%

13%

13%

23%

16%

8%

5%

10%

11%

15%

18%

5%


Technology shaping our lives

47


Media and Entertainment: Witnessing converging business models

Media companies around the world continue to face a period of profound transformation, brought about by the prevalence of disruptive technologies. The growth and scale of over-the-top (OTT) content providers are giving consumers more flexibility and choice than ever before for their content viewing options.

OTT content delivery is likely to bring about a redistribution of TV industry profits, and it may just be the beginning. Industry players have spent decades perfecting a highly profitable model that is now being significantly disrupted, and the onslaught of disruptions is happening at an increased speed.

There is a strong sense of urgency to evolve and transform.

The TV and film ecosystem is expected to evolve and adopt a platform business model, which may dramatically change the way viewers select, purchase and watch TV programmes. Companies looking to participate in the new TV ecosystem are attempting to navigate an uncharted territory and may need to grapple with significant change.

The Indian M&E industry is expected to grow at a compounded annual growth rate (CAGR) of 13.1 per cent to USD36.89 billion by FY2301.

Digital access and consumption have grown rapidly over the last 24 months following the roll-out of 4G, supplemented by falling data costs and soaring smartphone penetration. Digital usage has become more democratised and deeper, benefiting multiple sectors. Digital advertising and mobile gaming grew in excess of 30 per cent in FY1801. Moreover, growing demand for digital content boosted the films, music, animation and VFX segments. On the flip side, traditional print players, particularly in the English language segment, are feeling the heat with the growing digital consumption as both readers and advertisers are migrating towards digital.

The convergence of TMT has blurred the lines between various players across the value chain,

marking the beginning of a major structural shift. The ubiquitous usage of data is leading to a seismic shift in media consumption. Telecom and technology companies have an opportunity to serve the burgeoning digital subscriber base through the content part of the value chain. Traditional media companies have started to build direct-to-consumer platforms, resulting in the convergence of business models in the TMT sector.

Online video viewers and time spent on digital media have grown in recent years. The number of such viewers in India is estimated to be about 225 million in FY18 and 550 million by FY2301. Consumers are spending more time accessing media on mobile phone than on television.

M&E sub-sector growth (CAGR over FY14-FY18)

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01. KPMG India research and analysis, Media ecosystems; The walls fall down, KPMG, September 2018

TV Print FilmsDigital

advertising GamingAnimation and VFX

10.7% 6.5% 5.9% 37.5% 21.2% 15.9%

OOH Radio Music

12.6% 10.8% 14.1%

Media and Entertainment

Source: KPMG India research and analysis, Media ecosystems; The walls fall down, KPMG, September 2018


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Average daily time spent on media

7H 25M 2H 26M 3H 01M 1H 24M

Average daily time spent using the internet via any device

Average daily time spent using social media via any device

Average daily TV viewing time (broadcast, streaming and video on demand)

Average daily time spent listening to streaming music

Source: Digital in 2018, Hootsuite, Accessed on 28 September 2018

Increasing digital distribution is making media players focus on content aggregation and sceptical of the distribution channel. Broadcasters have their own OTT platforms, but partnerships with telcos have gained traction in the ‘digital live TV’ segment. Telcos not only offer a wider reach with negligible customer acquisition cost but also provide steady subscription revenue.

The promise of 5G wireless technology holds the possibility of a sweeping transformation of the TV and film industry into a platform business model. 5G is expected to offer a bigger pipe, a faster stream and lower latency. The potential of bundling is likely to allow a single window of access to various IoT solutions, along with content, putting telcos in a distinct position as against the traditional in-home providers. However, telcos need to successfully integrate with the ecosystem to create distinct bundling solutions. Telcos are already vertically integrating content creation into their core business, reflecting the emergence of this trend.



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Technology enablers

Rapid technology evolution, driven by connectivity solutions, has a significant and disruptive impact on media creation, distribution and consumption. Technical innovations such as digital delivery and consumption, AI, IoT, 5G, robotics and automation, AR/VR, 3D printing and blockchain are at various stages of maturity. They can significantly impact businesses and consumers, including the M&E sector. Telcos need to decide the extent to which they want to be a part of this disruption. They can either limit their role to a connectivity provider or be the disruptor by being the platform on which these innovations happen.

IoT

IoT can help companies fetch and serve content that would appeal to specific individuals, thereby improving the client conversion ratio, and boosting ad spend and subscription income.

The BBC is experimenting with wearables for news using speed-reading technology from Sprit.

Iot impact areas for M&E

Monetise data insights

Bundling

IoT sensors

IoT budget focus

M&E industry

Potential uses

Product monitoring

Supply chain and customer monitoring

Premises monitoring

Gaming

Animation

Personalised content

Music – e.g. free music downloads

Targeted advertising

Live events – e.g. IoT stadiums

GPS, RFID working with near-field communication, cellular data, infrared signals, Wi-Fi, or Bluetooth

Leveraging location, behaviour, consumer preference and demographic data from multiple channels/devices

Bundled with VR and AI to create enhanced ecosystems



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AI

The media industry is among the largest users of unstructured data such as video, audio, scripts, social media posts, and hence, is poised to gain from the influx of AI technologies.

AI Technology M&E Category Key Usage Recent Development

ML

TV PersonalisationBy feeding, browsing and scrolling data to several complex ML algorithms, these recommendation engines automatically align the content with the taste and preference of the user

Animation and VFX

Character design

ML-powered facial animation packages allow users to record facial data via webcam for creating complex animation characters in a short time

Natural language processing Radio

Content classification and archiving

By leveraging AI-powered voice assistants, several radio companies are launching ‘voice on demand’ in order to widen their reach


Films Prediction Production houses are harnessing the power of predictive analytics for facilitating release date selection in order to enhance box office success rate for the movie

Digital Lead generation and customer retention

Advertising agencies are now using analytical engines powered by ML and big data in order to develop customer profiles for lead generation and customer retention with data generated by multiple channels and platforms

Video and scene recognition solutions such as AWS Rekognition and IBM Watson Cognitive Highlights enable automatic content creation and analysis of emotion.

Hotstar, an Indian online streaming platform, uses AI platform for performing its global streaming.



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Blockchain

Blockchain has the potential to transform several markets within M&E, particularly those where participants could benefit from security and transparency, such as distribution of payments, funding, monetisation, and contract enforcement.

Transparency is the key value add for M&E industry

Piracy

Tracking

Payment

Content Aggregation

Provide transparency to elements of the media and entertainment supply chain to curb piracy

Enable tracking of usage and monetisation of digital content

Blockchain-based payment and contract options can impact pricing, advertising, revenue sharing and royalty payments

Enable content creators to directly distribute their work to consumers, bypassing traditional distribution channels

Microsoft launched a blockchain solution for managing content rights and royalties for media and entertainment industry. The solution will first be deployed in their gaming partner

‘Ubisoft’ and then to their other gaming partners in phased manner.

A video streaming software technology, Linius, has been using blockchain protected content distribution to fight the war on TV and film piracy.



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AR and VR

In India, AR and VR are still in a nascent stage with limited adoption across sectors. However, in the past few years, businesses have gained better understanding of the benefits of AR and VR. In 2018, the AR/VR market in India, driven by the M&E sector, is estimated at USD52.7 million, and is expected to grow 35 per cent between 2018 and 2023 to reach USD234.4 million01.

Mobile manufacturer OnePlus streams its launch events in VR; it started with the OnePlus 2 launch in 2015, for which the company even created its own version of a cardboard headset.

AR and VR, though currently with limited adoption, has huge potential

Marketing and advertising are expected to become increasingly immersive through AR and VR, potentially generating a higher level of engagement with viewers

With the potential to transform movie theatre experience, VR theatres

have also started surfacing

Currently, some basic 360-degree VR content is

being streamed through video consumption and social media platforms

Attempts are being made in India to capture live sports, concerts, product launches, etc. in VR, and showcase the novelty of these technologies at meetings/conferences

Print stories and advertisements are being augmented through AR mobile applications

Advertising

Print

Videos

Live events

Films


01. KPMG India research and analysis, Media ecosystems; The walls fall down, KPMG, September 2018



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Agriculture: At the cusp of digital disruption

Digital solutions to improve productivity, revitalise depleting natural resources, ensure better farm management and improve farmers’ connect across the value-chain are expected to transform agriculture in India.

Technological innovations to support activities, from production to distribution of agricultural output, should help resolve challenges faced by key stakeholders in the agricultural value chain including farmers, agri-input providers, traders, government, processing companies and end-users.

02. Promoting start-ups in Agriculture, Ministry of Agriculture and Farmer’s Welfare, Government of India

Agri-tech start-up models emerging in India

Down-stream (Output) “Farm to Fork” supply chain model

(Matching farmers to businesses or retail customers for fresh produce,

processed food)

Engineering led innovation

IoT/Big-data led innovation

Up-stream (Input) Marketplace model (Matching agri-input sellers to farmer

01 03

02 04

05

Farming as a service

The agri-tech sector offers solutions to several operational challenges. Government’s encouragement has led to establishment of over 250 start-ups across the value-chain02. Additionally, the government is funding and providing incubation support to start-ups offering innovative technologies.

Source: KPMG in India’s analysis in 2018

Agriculture


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Multiple technological solutions across the value chain to improve efficiency

Technical innovations such as IoT, big data analytics, drones and imaging techniques, and blockchain are likely to help improve farm productivity, reduce post-harvest loss, and assure effective utilisation of storage and transportation infrastructure.

IoT and big data

IoT and big data analytics facilitate smart farming techniques to ensure improved crop yield through automation and daily monitoring of routine farm activities. Data collated through sensors and analytics allow early detection of causes for crop failure and timely corrective actions to avoid crop loss.

Digital interventions across the agri-value chain

Production Storage Traders/ Middleman Government Processing Consumer/

Retailer

• Lot of critical data at various sources which could be automatically collected at low costs

• Data and insights-driven farming for increased productivity and better resource utilisation

• Smart warehousing solutions for continuous monitoring of critical parameters

• Real-time, sensor based tracking of the produce from farms to storage minimising transportation risks

• Adoption of e- marketplaces connecting farmers to processing companies eliminating middle-men

• Predictive analytics to assess crop production, demand-supply to ensure food security and inflation

• Data and analytics to assure quality of products meeting domestic and international standards

• Smart packaging solutions and real-time assessment of quality for safe and healthy food


Fujitsu, a Japanese ICT provider leverages IoT to drive efficiency and improvement in agriculture production. Its cloud service offer data-driven agriculture management for farms.

Telecom operators in Colombia offered solutions to farmers for protecting banana plantain crops. Wireless sensor networks

were deployed to monitor parameters including soil moisture, soil temperature, fruit diameter for ensuring soil fertility.

Agriculture


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Engagement platforms

Farmers connect with various stakeholders through creation of online platforms, mobile applications, and e-auction portals which can help them address obstacles such as lack of know-how on new technologies, use of proper seeds and nutrients, and availability of financing options and may lead to elimination of middlemen, faster time-to-market and lower wastage.


Embrapa, a state-run agriculture research firm in Brazil partnered with IT firms to develop drone technology for improving crops. It

utilised Qualcomm’s image processing algorithms along with TIM’s LTE network to offer real-time data to farmers.

Telefonica and ABB partnered to develop a remote irrigation system for farmers in Spain

providing irrigation schedules on mobile phones and computers. These solutions were based on mobile network access and GPRS based remote reading.

Predictive insights through IoT sensors, drones and imaging techniques

Big data analytics

IoT sensors

Drones and

imaging

Precision farming to ensure accurate usage of input at right time for improved productivity

Soil fertility mapping through satellite imaging

Smart irrigation based on crop, soil and weather condition

Tracking crop growth, infestation, and high-resolution vegetation monitoring

Weather risk management to limit climate impact on plantation

Thermal imaging to assess crop yieldCrop modelling and demand-supply management to ensure food security and control inflation

Geo-tagging for crop farm-land area estimationWarehousing and transport management

to avoid wastage and losses and ensure storage optimisation

GPS tracking of fuel, routes, idle times to control logistics cost

Aerial drones to track inventory and spoilage

Agriculture


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Blockchain, AI and ML

Blockchain can transform the agriculture supply chain by facilitating traceability of produce/product to eliminate out-of-date losses and ensure inventory replenishment both in the post-harvest and processing stage.

AI and ML are gaining traction as effective crop modelling and forecasting tools, apart from grading and sorting of crops.

Limited regulations on contract farming agreements discourage contract farming and processing companies which could otherwise drive adoption of technology. Nevertheless, partnerships between the government, processing companies, contract

farming companies and non-profit corporations to provide technology support to farmers, so they could address the adoption and implementation of these technologies.

Microsoft signed a Memorandum of Understanding (MoU) with Karnataka Government to develop ML and cloud-based technologies for commodity price forecasting and crop prediction.

Agriculture


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03. All India Survey on Higher Education (2015-2016), MHRD, 2016

04. Educational statistics at a glance, MHRD, 2018”

05. Education and Training, India Brand Equity Foundation, July 2018

06. The Indian Telecom Services Performance Indicators April – June, 2018

07. Online Education in India Report, A study by KPMG India and Google, May 2017

Education – Technology facilitating fast and last mile access

India has a multi-layered formal education system with 260 million students enrolled in more than 1.5 million schools and 27.5 million under-graduate and four million post-graduate students enrolled in around 800 universities and 39,000 colleges03,04. The education sector in India is estimated at USD91.7 billion in 2018 and is expected to reach USD101.1 billion by 201905.

Population of about 500 million in the age bracket of 5 to 24 years05 (the largest in the world) and increasing internet penetration in urban and rural areas, at 82.1 per cent and 19.48 per cent06, respectively, bode well for growth of the online education market.

India’s online education industry is expected to grow almost 8 times from USD247 million in 2016 to USD1.96 billion by 2021, with paid users rising six-fold from 1.6 million in 2016 to 9.6 million by 202107.

The government plans to integrate technology into education through initiatives such as ‘black board to digital board’ and Diksha Digital for teacher education. Telecom proliferation, whether wired or wireless, can play an important role in digital education.

Key e-education categories: Market size and key characteristics

2016 CAGR 2021P

Market size (in USD million)

Primary and secondary supplemental education

Driven by the increased acceptance of online channel and increased internet penetration in tier 2 cities and beyond.77360%73

Test preparationDriven by high adoption of online channel amongst the students and an increase in the number of competitive exam aspirants.51564%43

Reskilling and online certifications

Skill development & enhancement requirements for the working population will lead to growth in the reskilling and online certifications market.

46338%93

Higher educationOnline higher education will also witness a considerable growth and continue to aid in distance learning programs.18441%33

Language and casual learning

Online language and casual learning will grow driven by growth language learning, but paid adoption is likely to remain limited.2942%5

Source: Online Education in India:2021, Study by KPMG and Google, May 2017

Education


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In addition, telcos can also play a role of being the platform to connect prospective students and content providers. With a ready access to a customer base, they can successfully play a role of a third party aggregator. These platforms may not be restricted to B2B models but could also explore B2C models. For example, connecting prospective teachers and students.

With rock-bottom tariffs, telecom operators offering exclusive content to attract high-data users, and are either building their own education content teams or partnering with education content providers.

Technology enablers

Technology-driven learning apps are using gaming elements such as point-scoring and interaction with other players, personalisation, and data-driven insights to help make the learning process continuous, interactive, and effective.

New Technologies deployed in Edtech

• Student centred

• Convenient access

• Continuous learning

• Interactive

• Captivating content

• Global expertise

• Cost effective

Internet of things

Big data

Cloud technology

Blockchain

Virtual reality

Artificial intelligence

Technologies deployed Impact areas


In April 2018, Reliance Industries Limited acquired majority equity stake in Indiavidual Learning Pvt Ltd (Embibe), a note AI-based education platform through which Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology08.

Education

08. Reliance to invest $180 million in AI Education platform Embibe over next 3 years, Analytics India Magazine, 16 April 2018


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Impact of new technologies on the education sector

Technology-driven learning apps are using gaming elements such as point-scoring and interaction with other players, personalisation, and data-driven insights to help make the learning process continuous, interactive, and effective.

Technology

Artificial intelligence

Virtual reality

Big data

IoT

Blockchain

Outcomes

93% of parents reported improvement in children’s grades

60% of the students performed better than with teachers

Can guage students learning style to deliver customised support

Laws of friction module being experimented by VR

Enabled the findings of low engagements of government school girls

Instances where students took MOOCs & became young programmers

Curb the use of fake certifications

Use cases

Gamification

Chatbots

AI tutors

VR content

Big data platforms

MOOC (Massive Open Online Course)

Document storage

Impact areas

High user engagement

Improved interactions

Auto feedback to educators

Close to real experiences based learning

Links all the data between resources and outcomes

Take notes, bookmarks, test reminders, record lessons

Significant reduction in the paperwork

Sources:

- How Are India’s Biggest EdTech Startups Winning Students? By Treating It Like A Game, Forbes, 11 March 2018

- Will these four technology trends change education in India?, Live Mint, 10 March 2018

Key Indian EdTech players:

• Bengaluru-based edtech startup, Byju is currently leading in the space, which has grown to 1.26 million annual paid subscribers since its launch09.

• Rajasthan-based Bodhi AI, which is leveraging data collected from students to help them improve in exam scores.

• Bengaluru-based tutoring startup Vedantu, which use data analytics and artificial

intelligence to measure the effectiveness of a student.

• Mumbai-based hybrid tutoring platform Genext Students connects parents with the best home tutors for their children. It enables personalised learning for students and provides real-time progress updates to parents.

Education

09. Byju’s crosses Rs 100 crores monthly revenue, Economic Times, June 21 2018


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Financial services - Technology key for financial inclusion and customer service

Financial institutions are transforming dramatically in the digital age in terms of their roles and responsibilities, service offerings, products and distribution channels.

Strong growth in Fintech, led by the adoption of data at the core India witnessed and implementation of open banking regulations globally. This has opened up opportunities for non-financial companies such as ICT players to foray into financial services.

The RBI has granted payment bank licences to telcos, postal service providers, technology companies and Non-Banking Financial Companies (NBFCs) to meet its agenda of financial inclusion. A large subscriber base provides telcos with an edge in the payments landscape.

This poses a threat to incumbent financial institutions. However, collaboration with new players and converging business models can expedite the adoption of new-age technologies, unlock revenue streams, deliver superior customer experiences, reduce costs and increase customer access.

Digital payments – A giant leap towards a cashless economy

Several government initiatives have led to an increase in digital transactions. Mobile wallets and mobile banking transactions have grown tremendously to 326 million and 308 million, respectively, in July 2018 from 235 million and 118 million, respectively, in the previous year10,11. Online shopping has been the main driver of this growth:

Google, has launched Google Pay and has tied up with several Indian banks to offer “pre approved” loans to customers

Consumer preference on usage of e-wallets in India – 2017

E-wallet drivers

Ease of use

Discount

Ability to pay anywhere

Safety

E-wallet Spending8%

Private money transfer

21% Online

shopping

7% Movie ticket

purchase 16% Utility payments

23%

19%

19%

13%

28% Mobile bill payments

6% Food

payments

Source: The state of e-wallets and digital payments in India 2018, Regalix Research, January 2018

10. Mobile Wallet transactions had grown by 14.6M in July 2017, Medianama, 19 September 2017 11. Mobile wallet transactions hit record ₹15,202 crore in July: RBI data, Livemint, 7 September 2018”

Financial services


Financial services 62

With a strong digital focus and enabling infrastructure, digital payments are likely to increase in the coming years. With the government targeting 30 billion digital transactions in 201912, the mobile payment industry has a lot of growth potential. The digital payment industry is expected to be worth USD1 trillion by 202313.

Telecos have also forayed into the banking space. Consumer preference for digital mediums may provide opportunities to telcos to expand their footprint and open up revenue generation channels.

• Reliance Jio has tied up with State Bank of India to provide a payment platform offering digital banking, commerce, and financial services to customers

• Airtel Payments Bank Limited will leverage the distribution network of Bharti Airtel spread across 1.5 million outlets, with network presence spreading across 87% of the country, covering more than 400,000 villages and 5,000 census towns14.

• French telecom operator Orange has launched its ‘mobile only’ bank aiming to capture 25 per cent of online banking segment by attracting two million customers in France alone15.

12. Separate targets for institutions: Govt eyes 30 billion digital payments in FY 2018-19, The Economics Times, 25 April 2018

13. Digital payments in India to reach $1 trillion by 2023: Credit Suisse, The Economics Times, 15 February 2018

14. https://www.airtel.in/bank/about, accessed on 15 October 2018

15. Orange is the new bank? Telecoms giant ventures into lending, The Economics Times, 01 November 2017


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Open banking being leveraged by non-traditional players for innovative solutions

Initiatives for open banking can allow new entrants, including non-financial and technological players, into the financial services market. Open banking may help players enhance service offerings, improve customer

engagement, and build new digital revenue channels through a shared ecosystem by providing access to data of financial institutions through Application Programming Interfaces (APIs).

Objective

Drivers

Increase transparency

Accessibility for customers

Increase innovationv

Third parties to build financial applications

Market moving towards value-added servicesRegulatory push

New entrants such as fintechs and non-financial players

720 degree customer view through open data

Innovative delivery models such as Banking-as-a-service (BaaS)

Personalised services based on intelligent information Foundation for Finance 4.0

Ecosystem that provides a user with a network of financial institutions’ data through the use of APIs

Financial institutions, fintech firms, software

developers and transaction platforms

Transfer information with appropriate consent

framework

Banking data access to third parties in real-time

Objective

What

Who

How

Open banking architecture may boost the financial digital landscape in India

Source: Fintech in India – Powering a digital economy, KPMG, September 2018

RBL bank has tied up with Bajaj Finserv to launch co-branded credit cards using digital and API banking technology.

Financial services


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AI has huge potential to enhance customer experience and reduce costs

AI is being explored across front, mid, and back office segments, with use cases ranging from customer services, targeted sales and marketing, smart automation of manual intensive processes, regulatory compliance, fraud and risk management. Key technical elements of AI such as ML, Natural Language Processing (NLP) and Computer Vision have found their way into a number of applications.

AI-based applications to have an impact across BFSI verticals

• State Bank of India’s chatbot, InTouch, powered by IBM Watson is used to address customer queries on banking products and services

• Motilal Securities uses Phrazor, an AI tool developed by VPhrase Analytics Solutions to generate personalised, narrative-based, easy-to-understand portfolio statements for their 5,00,000 customers in four languages

• HSBC has partnered with Ayasdi Inc, an AI start-up to combat money laundering and automate its compliance processes.

Front Office

Sales and Distribution

• Cross sell and upsell

• Customer segmentation

• Report creation

• Targeted distribution

• Customer behavior analysis

Customer Operations

• Chatbots for higher productivity, query resolution

• E-KYC customer onboarding

• Portfolio management

• Customer servicing

Product and solutions

• Product pricing

• Personalised offerings

• Robo advisory

• Trading pattern analysis

Back Office

Reporting and MIS

• Invoice automation

• Intelligent document check

• Smart reconciliation, audit trail, variance analysis

Compliance Management

• Image recognition to digitise documents

• Automate legal disclaimers

• Intelligent text extraction

AML

• Reducing false positives

• Intelligent customer and transaction segmentation

Middle Office

Risk Management

• Underwriting automation

• Portfolio risk analysis

• Claims forecasting and investigation

Fraud management

• Fraud detection and investigation

• Anomaly prediction

NLP RPARoboticsMachine Learning

Computer vision

Source: Fintech in India – Powering a digital economy, KPMG, September 2018

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Blockchain to enable a transparent and secured ecosystem

Blockchain, which is built on the concept of sharing information across parties and building consensus during transactions, can detect fraud instances early and in real-time. Blockchain can also help BFSIs reduce redundant cost in processes such as back-office reconciliation and clearing and settling of securities transactions.

Blockchain use cases in financial services industry

• MonetaGo, has designed a blockchain solution for RBI sponsored TReDS exchange that records hashed invoice data in order to avoid double financing

• Axis Bank has partnered with Ripple Technologies for cross border remittances

• IBM has launched a blockchain platform exclusively for banking and financial services

Fund remittance

Smart contracts

Capital market trading

Claims management

Trade finance

Clearing and settling of securities

transaction

Source: Fintech in India – Powering a digital economy, KPMG, September 2018”

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AR/VR to enable real-time access to financial services

AR/VR is a new concept in the BFSI space. Banks have introduced AR mobile apps helping customers locate the nearest ATM or branch or scan properties for sale. AR apps use geo-tags and maps to provide

real-time location of available properties. Some other use cases are in payments, advanced biometric-based security, financial education and trading.

While adoption of new technologies can revolutionise the BFSI landscape, mobile technologies and internet penetration can be key catalysts for their successful deployment.

AR/VR use cases in the BFSI sector

Virtual tradingCustomerservice

/ ATM, branch locations, property

evaluation

Payments

Financial education

Biometric security

BNP Paribas has partnered with a French start-up to develop a VR ‘experience capsule’ by offering virtual tour of properties to real estate investors

Financial services


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Transportation – Technological advancement in the sector to strengthen the country’s economic backbone

The automotive sector is a major contributor to GDP, with a share of 7.1 per cent which is expected to grow to 12 per cent in 202616.

Companies are aggressively exploring new technologies to improve service quality amid rising competition. The government has also chipped in with initiatives and schemes to help the sector flourish and modernise using the latest available technology.

16. Auto sector may contribute 12 per cent to India’s GDP in next decade: Anant Geete, The Economic Times, 18 May 2017

Technology enablers

The convergence of 5G and government incentives bodes well for transformation of the transportation sector in years to come.

New age technologies New age transportation

Transportation pods

Bullet trains

Application by end use segment

Electric vehicles

Connected cars

Autonomous vehicles

Drone delivery

Air taxis

Shared mobility

New technologies transforming the transportation sector

Cloud AI and ML

BlockchainBig data analytics

IoT Robotics

3D printing


Transportation


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IoT

The convergence of 5G and government incentives bodes well for transformation of the transportation sector in the years to come.

Indian Railways has introduced sensor-based on-board condition monitoring system (OBCMS) for timely detection of defects related to passenger coaches and tracks on a running train. Using IoT, OBCMS aims to strengthen the safety of train operation by constantly updating control rooms with coach diagnostics and heating, ventilation and air conditioning and water management details.

Once deployed, these IoT-based sensors can monitor the health of road, air strips and railway tracks on a real-time basis and enhance safety. This will also reduce operation costs, optimise resources during peak traffic congestion and reduce sudden catastrophic failures of key assets.

Big data analytics and advanced machine learning

Automotive sector is looking to turn volumes of passive data into actionable business intelligence through big data analytics and machine learning. This is likely to improve demand forecasts, and help predict trends and improve vehicle performance, reduce traffic congestion, increase fuel efficiency, and enhance safety.

Cloud

Cloud technologies can provide flexibility and scalability to standardised processes across the transportation value chain, enabling new business models such as virtual freight forwarding, which gives customers direct control over consignments.

Carrier technologies may witness major advancement such as ‘uberisation of trucks’, making the logistics industry more agile, transparent, and efficient, while ensuring real-time monitoring of fleet capacity availability.

In India, Ridlr, a transport commuting and ticketing app and Ola are leveraging mobile and IoT platforms to offer end-to-end mass transit solutions, making the commute seamless across public transportation modes.

Japan’s telecom major NTT, worked with bus operators to create safe driving conditions for buses and drivers. It combined sensor enabled vests and IoT to gain information about a driver’s vital health parameters like heart rate and nervous system responses, apart from vehicle and weather condition.

Flexe, a Seattle based start-up, uses big data and analytics to offer on-demand warehousing by matching available space in a location with requests for expedited warehouse facilities.

Nimber, a start-up from Norway, tagged as “Airbnb of sending parcels”, matches commuters and travellers with consumers looking to ship something across the city, to create a crowd sourced delivery model.

JA Frate, a U.S. based shipping and fleet maintenance company, implemented a cloud based freight management system, FACTS, provided by Carrier Logistics Inc, and a cloud-based warehouse management system to support its growth plans, and to reduce operations and maintenance cost of on-site IT infrastructure.

Transportation


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Blockchain

Blockchain technology in transportation may ensure the accuracy of performance, maintenance, and service history records of vehicles. Another prospective use of blockchain is capacity monitoring and smart contracts allowing self-executing payments.

Skuchain, a Silicon Valley blockchain start-up, has created a transportation supply chain application using blockchain for smooth and transparent communication, removing distributors and intermediaries, thereby considerably reducing the cost.

Robotics

Advanced robotics, with greater mobility enabled by gyroscopes and mapping technologies, may soon be able to recognise specific shipments by size and description and move them to appropriate locations for picking and packing. Robotics may benefit immensely from the wireless controls of highly sophisticated mobile machines becoming feasible and capable to access massive computing power and storage available in the cloud. Robotics can reduce labour cost and delivery time substantially thereby increasing productivity.

UPS, DHL, and FedEx are experimenting with robotic loading and unloading of irregular parcels in their facilities.

Sweden’s Scania, a manufacturer of commercial vehicles, is collaborating with Toyota on robotic truck “platoons” that will be used to move freight at Singapore Port. While, Volvo is developing self-driving trucks with capabilities to operate in underground narrow mine tunnels at depths of upto 1,320 meters.

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70

Impact of these technologies on the transportation sector

Products (part of value chain impacted) Impact areas Use cases

Autonomous vehicles(automobiles, private and public mobility

• Reduce operational costs, increase productivity

• Increase pedestrian and passenger safety

• Enable information sharing by vehicles

• Tesla’s truck with autopilot features facilitate driving

Drone delivery (delivery)

• Improve last-mile delivery

• Facilitate faster delivery

• Amazon using drone in England for delivery under 30 minutes

Transportation pods (logistics, delivery, public mobility)

• Solve public transportation issues across the globe, improve safety

• Navigate through traffic congestion using smart sensors, without stopping

• Heathrow airport in London launched pods for intra-airport travel

Connected cars (smart city, automobiles, private and public mobility)

• Reduce congestion and vehicle fatalities

• Enable automakers to develop new tools for predictive and preventative maintenance

• INRIX delivers traffic data to passenger vehicles to help with shorter and safer commutes

Electric vehicles (smart city, automobiles, private and public mobility)

• Reduce carbon emissions and operational costs of transportation

• Become integral part of new-age urban transportation system

• Indian government recently ordered 10,000 electric cars from M&M and Tata Motors, to be used by various agencies

Air taxis(public mobility)

• Reduce traffic congestion during peak hours

• Facilitate faster movements within city

• Uber signed a deal with NASA to develop on-demand, 200mph electric aircraft

Bullet trains(smart cities, logistics, public mobility)

• Increase asset availability and energy efficiency and improve asset utilisation

• Monitor critical train parameters to increase safety, reduce maintenance cost

• Hitachi is currently working with Virgin Rail to deploy high-speed trains across the U.K., for project BTaaS

Shared mobility (smart city, automobiles, public mobility)

• Reduce cost for passengers

• Reduce traffic congestion in cities

• Improve air quality due to lower emissions

• Ride hailing apps like Uber, Ola, Lyft are complementing public transport in global cities

Sources:

- Tesla’s Autopilot is supposed to deliver full self-driving, so why does it feel stuck in the past?, The Verge, 24 October 2017

- Amazon makes first drone delivery to house in Cambridge, The Telegraph, 14 December 2016

- Airports of the Future May Relax, Instead of Frustrate Us, Temasek, 2 October 2018

- INRIX is Powering Smart Highways Globally, INRIX, 20 August 2018

- Tata Motors wins order for 10,000 electric vehicles from EESL, Livemint, 30 September 2017

- Uber signs deal with NASA to develop flying taxis by 2020, The Telegraph, 8 November 2017

- Hitachi begins work on Virgin Trains’ Azuma fleet, Hitachi, 5 May 2017

Transportation


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Smart-cities, a move towards digital urban India The Smart Cities mission aims to transform the quality of life by improving critical infrastructure. ICT solutions are the foundation for holistic infrastructure in a smart city. The government has allocated USD28.43 billion for 99 cities. Of this, 16 per cent will be for ICT-based projects17. Additionally, Smart City 4.0 was launched in collaboration with the United States, India Strategic Partnership Forum, and 1 Million for 1 Billion to accelerate technologies and create fundable start-ups for developing smart cities18.

17. Smart Cities Report, CRISIL Research, December 2017

18. Smart City challenge calls for startups working towards social impact, The Economic Times, 23 October 2017

ICT solutions to support tech interventions in smart city mission

ICT to Account for ~16% of Total Smart city investments, estimated at ~USD28.43 billion

Undergroung cabling

5%Sewage systems

7%

Roads 7%

Housing 11%

Non-residential development 15%

Infrastructure 12%

Others 26%

Smart metering

11%

Smart Parking Systems

4%

Street lighting and monitoring

4%

e-governance 4%

Intelligent traffic management system 26%

Others 38%

Water, sewage and solid waste management 13%

ICT Based Smart projects

16%


ICT solutions for traffic management, health, education, waste management, e-governance and energy management are key focus areas in smart cities. The mission is being implemented through area-based and pan-city development based on finalised principles of integrated planning, consultation with citizens, application of IT infrastructure and services, focus on area development, self-reliance for funding, focus on smart projects and distinct implementation network.

Smart cities


72

19. Indian Smart Cities: A Pool of IT Opportunities, Enterprise IT World, 01 March 2017

Technology enablers for holistic digital public infrastructure in smart cities

Increasing use of smartphones and internet access can fasten uptake of smart solutions in India. Rise in interconnected devices and development of services and applications to facilitate public services in smart cities may be a key driver of data traffic. In smart cities, IoT and M2M technologies are likely to be prime technologies, offering IT opportunities of around USD25 million per city19.

IoT sensors in establishments can facilitate real-time monitoring and collection of data on traffic movement, power outages, and street lights. Big data analytics may be used in predictive and prescriptive analytics to address issues of traffic congestion, accidents and thefts in residential and commercial areas. IoT sensors can also facilitate patient monitoring in hospitals, correct water and electricity metering, and monitor air quality, temperature, and humidity.

Wi-Fi hotspots offer city wide connectivity alternatives. Internet-connected surveillance through cameras in schools, and residential and commercial

facilities is likely to ensure public safety and control crime. Mobile applications and web platforms can be effectively used to access applications such as telemedicine and vehicle tracking and for registering grievances. Apart from this, 24x7x365 helpline numbers could help understand public concerns on development and facilitate resolution. Geo-location based tracking of buses, trains, and vehicles may help monitor urban infrastructure availability.

Intel rolled out smart city solutions in Taiwan in association with Elitegroup Computer System and Tatung for building management which includes connecting appliances and entertainment systems and security management.

Intel also partnered with Chungwah Telecom for installation of sensor based smart poles.

Smart cities


73

Application of technology in Smart cities

Energy management

• Smart meters• Smart grids• Energy efficient and remotely

controllable LED street lights• Smart poles.

Traffic and mobility management

• Smart parking• Traffic surveillance• Automated street signage

and traffic lights• Geo-location based tracking

of buses and public vehicles• Vehicle charging points.

Smart health

• Telemedicine• Remote health monitoring• Smart beds.

E-governance

• Public safety surveillance• Public grievance redressal• Electronic service delivery.

Waste management

• IoT based smart dustbins• Garbage monitoring system.

Water management

• Smart meters• Monitoring water quality

through sensor• Identification of water

leakage through sensors.

Smart education

• Smart classrooms• School surveillance• Daily management of activities.

Satellite-based

tracking

PublicWi-Fi

Mobile apps and web platform

M2M/IoT/Big data

24x7Helpline centre

Live surveillance

North Carolina, Town of Cary has deployed Cisco’s “Kinetic” a city platform to monitor available parking spots.

Honeywell partnered with Rajkot Municipal Corporation for development of command and control centre and city-wide surveillance.

Telecom Italia and Telefonica partnered for running two trials in a smart city in Italy for developing new services in big-data space.

ICT is expected to play a crucial role in construction of smart cities, providing different technologies and systems. Telecom operators can provide the network for connectivity of IoT/M2M devices, and infrastructure support through data centres and cloud storage of data generated from the rise in connected devices. Telcos can also partner for setting up shared Wi-Fi and wired infrastructure in smart cities. Equipment providers may provide networking equipment, software, sensors, and devices needed for creation of communication network and infrastructure for services and applications.

Smart cities


74

Source: E-commerce sector outlook, CRISIL Research, July 2018

Technology catalysing e-commerceThe emergence of e-commerce in India heralded the coming of country’s new economy. India’s online retail market has grown by leaps and bounds from its nascent state in the mid-2000s to its current market size of USD19.5 billion20 worth of transactions at a gross level before returns and rejections.

Strong government initiatives along with lower prices of smartphones and data plans as well as the use of vernacular languages have increased the adoption of the Internet. This has evolved the consumer behaviour in e-commerce space which is now a heavily discounted market place.

Rising consumer expectations and higher demand for same-day deliveries are shaping the e-commerce retail supply chain. New business models, such as those of omnichannel retailing and last-mile delivery through local retailers are on rise.

Application of technology in the e-commerce space

• High growth potential from current 2 per cent of total retail sales

• Food and grocery is the largest segment with constant funding infusions and new players

• Top 10-15 cities account for three-fourths of the total sales

• Uptake in Tier-2 and Tier-3 cities is expected to drive future growth

• Customer stickiness remains a challenge

• Funding is getting increasingly concentrated, constraining expansion plans of new players.

Ecommerce retail market size

2014-15

Driven by early stage and VC funding;high pricing discounts; ease of shopping

Driven by focused funding; customer stickiness and geographical diversification

2017-18 2020-21E

6.20

USD Billion

15.90

36.40

CAGR – 40%

CAGR – 33-38%

20. E-commerce retail logistics in India, KPMG India, May 2018

E-commerce


75


Technology as an enabler

Technology is the backbone of e-commerce by connecting the sellers and customers on mobile & web platforms and managing customer orders, deliveries, returns and payments of purchased goods. As emerging technologies such as AI, blockchain, VR and AR become widespread, technology becomes even more important for the e-commerce value chain, especially in areas such as recruitment, marketing, and advertising.

Global players are strategically increasing cross-border business, transforming social networking to market places, incorporating multi-lingual integration and using the modified rebirth of the brick and mortar model to cover more ground to reach consumers.

Technological shifts in e-commerce

Easy access to instant communication, information transfer, logistics processing and online networking have enabled remote orchestration of sustainable e-commerce platforms. Today, 95.9 per cent of the internet connected population accesses it via the mobile devices (phones and dongles) as on June 201821.

Application of technology in the e-commerce space

Forecast product demand

Optimise price range

Identify target audience.

Track items through the supply chain

Informed decisions for stock control, product placement etc.

Virtual demonstration of products

Virtual walk-through tour (360 degree videos)

New concepts of interaction: smart dressing rooms, beacons or AR catalogue apps.

Scan-and-go mobile payment methods

AR- and VR-enhanced apps

Utilise smart packaging solutions.

Customise entire web page based on customer behaviour

Actionable insights based on shelf pictures


Chatbots and voice-activated shopping devices.

Big data VR/ARIoT AI Mobile technology

E-commerce


76

22. 4 Major Ways in Which e- is Benefitting From IoT, Business 2 Community, 15 November 2017

23. Ericsson: New Report: Smartphone Shoppers Altering Retail Reality, PR Newswire, 7 May 2018

24. Artificial Intelligence in eCommerce – Comparing the Top 5 Largest Firms, Last updated on February 1, 2018

25. How Technology Is Redefining E-Commerce. Forbes, 6 March 2018

Sellers no longer have to micromanage every aspect of the e-commerce business. They also do not require huge start-up capital as earlier. Technologies that are driving these changes are as follows:

• Big data – Anticipatory shipping is the closest e-commerce can come towards clairvoyance. A global online retailer has patented a method and system for ‘anticipatory shipping’ in which rather than relying on inviting or reminding customers to repeat their purchases, the system predicts customers’ shopping lists and deliver the products to their nearest fulfilment centre even before the order is placed.

• IoT – Retailers will spend USD2.5 billion on IoT by 202022 by giving a digital voice to people, processes and things, thus enabling better management of inventory, easy tracking of thefts and losses and an increase in shopper intelligence.

• VR and AR – These technologies help e-commerce vendors to display their merchandises in immersive detail, allowing users to visualise themselves using the products immediately. This is a distinct way of engaging customers on online shopping platforms and providing them near to real-life shopping experience.

• AI – AI-driven algorithms can help personalise consumers’ shopping experiences by analysing their past buying habits. AI can also assist with order and inventory management, helping businesses fulfil orders at ease. Getting help

from digital shopping assistants is an emerging need amongst customers. A recently conducted survey by Ericsson shows that 63 per cent23 of the smartphone shoppers would like a service that automatically restocks everyday items.

• Blockchain – Retail giants are embracing blockchain to seize the technology’s potential. The global omnichannel retailer’s recent patent describes a ‘smart package’ system that records information on a blockchain regarding the package’s contents, environmental conditions, location etc. for a blockchain-based drone package delivery tracking system.

• Robots and droids – For e-commerce, robots and droids are no longer futuristic scenarios. A global online retailer started deploying robots in a few warehouses which created potential savings of about USD22 million with the potential of savings reaching to USD800 million if the company integrates more robots at its other warehouses as well25.

Amazon.com has obtained a patent for what it calls ‘anticipatory shipping’ — a system of delivering products to customers before they place an order.

Amazon’s Alexa is an example of a connected device that is changing shopping experience for the average consumer.

Lacoste created the LCST Lacoste AR mobile app that customers could use to virtually try on shoes.

Alibaba claims that AI based smart logistics have resulted in a 10 percent reduction in vehicle use and a 30 percent reduction in travel distances24.

Amazon has deployed more than 100,000 Kiva robots throughout its global fulfilment network.24

E-commerce

Omnichannel experience – Fast forward to the future

Technological strides make multichannel selling a greater possibility than ever in the e-commerce space. Serving several channels at one go increases business reach, with the rising acceptance of a platform that can communicate via APIs to various sales channels.

Today, software is capable of working smoothly with data sets from an online store, social media, retail store and catalogue to attract customers, personalise their shopping experience and facilitate a purchase decision. As retailers opt for many channels to increase their sales, omnichannel retailing is gaining ground in India.


Challenges to digital penetration and way forward

77


78

01. ICT Development Index 2017, ITU, Accessed on 24 September 2018

High capex to impact the adoption of next-generation networksThe telecom sector is currently under unprecedented financial stress. Much of it can be attributed to declining revenue margins because of stiff competition and tariff wars, debt accumulated in light of high spectrum cost and revision of taxation structures. This, in turn, limits the ability of telecom companies to invest in strengthening the infrastructure for next-generation networks.

Margin pressures and a high level of indebtedness limit operators’ investments

Estimated capex for telcos (in USD billions) Opex and margin evolution

FY18 FY 19-20E (Cumulative)

14

17

Access chargesLicense fee

Network opex

Employee costSG&AEBITDA

FY20E

FY18

FY17

13.3%

13.5%

9.7%

33.1%

27.8%

28.0%

17.1%

17.4%

17.2%

10.1%

9.8%

10.8%

22.3%

28.5%30.6%

4.1%

3.0%

3.7%

Source: Presentation on Telecom Services, CRISIL, May 2018

India has made substantial progress in the implementation of technology from 3G to 4G while also setting an ambitious target of adopting 5G at par with global economies.

However, India still needs to cover significant ground as indicated by its ranking of 134 in the ICT Development Index01. Challenges in terms of reduced profitability for service providers, infrastructure, rural teledensity, skill gaps etc. continue to restrict the advancements of the country’s digital programme. These challenges need to be addressed to realise the full potential of digitalisation.


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In India, despite the extension of deferred spectrum liability to 16 years from 10 years, cumulative network capex between FY19 and FY20 is expected to reach approximately USD14.9-17 billion02. The capex will be primarily aimed at the rollout and strengthening of 4G services and investments for 5G deployment. Further, with the saturation levels in the urban telecommunications market, telecom operators are looking at new avenues which would involve focus on rural and semi-urban markets.

Also, as per the COAI, the roll-out of broadband services across the country would require significant investments over the next three to five years for technology, fibre backbone, spectrum and equipment making clearly evident the capex stress on the sector.

Spectrum availability and affordabilityThe dramatic growth of mobile customers has outpaced the ability of telecom operators to offer reliable connectivity. The sector has grown at CAGR of 17.44 per cent03 in terms of subscriber base over the last decade and is expected to have almost a billion unique mobile subscribers by 202004. Spectrum availability and affordability thus is a critical factor to service this growing number of mobile connections and the usage patterns associated with it. India’s spectrum availability per customer is one of the lowest in the world. The scarcity of spectrum leads to a higher cost at the time of auctions and puts the operator’s balance sheet under stress. This would not be sustainable in the long run as we have observed with some of the operators who have exited the Indian market.

02. Presentation on Telecom Services, CRISIL, May 2018


04. “‘India To Have Almost 1 Billion Mobile Subscribers By 2020’, NDTV tech-media-telecom, Accessed September 2017”

Way Forward – The possibility of sharing infrastructure can be leveraged for achieving common goals. PPP models may also be explored for rolling out shared infrastructure to rationalise the cost. Providing incentives to the industry players under the ‘Make in India’ initiative would help in reducing the financial burden. Further, rationalization of spectrum fees will allow operators to invest in upcoming technologies and network infrastructure.

Way Forward – Greater availability of spectrum during auctions is likely to rationalise prices. Reduction in spectrum pricing and better utilisation of the USO funds would allow operators some relief on the financial side. Further, availability of E-band and V-band will allow operators to put a low cost and high throughput network.

As per the GSMA estimate, the average price of spectrum of USD0.33/MHz/pop (acorss 850, 1800, 2100, 2300, and 2600 MHz) was almost 50 per cent higher than the median price in developing countries between 2000 and 2017 making a strong case for reducing the spectrum cost.


80

Rationalisation of taxes and leviesTaxation continues to be one of the highest contributors to the cost structure of telecom operators which includes licence fees and spectrum usage charges.

Spectrum usage charge adds on to the financial burden of telcos since it is based as a fixed percentage of a telco’s AGR i.e. better the telco performs, higher will be the taxation amount to be paid. Further, the universal service obligation fund accumulated so far has not been completely spent while telco’s continue to be charged the same. This reduces funds available with them to invest in network and technology upgrades.

RoW policies to quicken infrastructure developmentObtaining RoW permission from local governments has been a bottleneck in installing fibre networks. Delayed implementation of RoW rules acts as an impediment to laying of the requisite optical fibre, which is the basic requirement for seamless 4G connectivity as well as an enabler for future requirements such as 5G. Also, many states are yet to implement the single-window system under the RoW rules passed in November 2016.

Way Forward – NDCP 2018 suggests creating a collaborative institutional mechanism between the centre, states and local bodies for common RoWs, standardisation of costs and timelines and removal of barriers to approval. Its uniform implementation across states will ensure seamless and timely deployment of the required infrastructure to meet the government’s Digital India vision. Also, another way to encourage the states to consider telecom as an essential service and provide adequate support to the telecom operators, is to create a Network Readiness Index (NRI) – a criteria to measure, evaluate and benchmark various states of India with regard to the state of telecommunication, ICT services and network infrastructure. This will also create competitiveness amongst the states to enhance ease of business and improve their rankings.

Way Forward – Rationalisation of taxes and levies will help ease the financial burden on telcos. The NDCP 2018 has emphasised on the need to reduce levies and adopt optimal spectrum pricing.

The government should consider:

• Lowering the high SUC (to limit it to cover only administrative cost of managing spectrum)

• Resolving the definition of AGR

• Realigning spectrum payment period

• Rationalising taxes and other levies.


81

Lack of clarity around the monetisation modelWith multiple players in the ecosystem offering similar services, differentiation is the key to attract more customers and retain existing customers. Operators need to offer services that are beyond voice, data and messaging.

Operators are yet to adapt to the convergence potential of content, media and technology and partner with the start-up eco-system to offer services that are beyond connectivity. Passive infrastructure providers are also evaluating options for monetizing the space and presence of their towers in collaboration with start-up and e-commerce providers.

Monetisation depends on the effectiveness of data centres, cloud network, and will require additional investment in the development of assets and platforms.

BackhaulLimited back network connectivity has impacted the roll-out of telecom infrastructure and connectivity to rural areas. One of the requisites for 5G is a strong backhaul network. Over 80 per cent of sites in India are connected through microwave with approximately 300 Mbps capacity.

Way Forward – Business models have to expand beyond retail customers to include enterprises and government, internet of things (IoT), augmented reality (AR)/virtual reality (VR), and cloud-related services for effective monetisation.

Way Forward – Development of a high bandwidth backhaul with low latency is necessary to achieve the digitisation objectives. This calls for fiberisation of the towers to the tune of 80 per cent and higher as compared to 20 per cent fiberisation today. In addition, the availability of E-band and V-band will help in enhancing backhaul.


82

Digital divide leading to skewed growthDespite various government initiatives, internet penetration rate in rural India stood at 19.48 per cent with 173.2 million users as compared to 338.84 million users in urban areas as on June 201805. Limited penetration of private operators because of huge capex requirement limits the roll-out of backhaul. Few instances of private contribution include:

• Operators are partnering with BharatNet to boost broadband penetration in rural areas. This will help set up broadband experience centres, providing 100 Mbps connectivity through BharatNet’s infrastructure

• Operators are planning to offer 4G services to rural areas through satellites, using capacity from the Indian Space Research Organisation (ISRO).

Lack of robust cyber and data security frameworkA rapidly increasing user base on account of increased affordability comes with another set of challenges that demands attention right at the CXO levels of organisations today i.e. availability of a robust cyber and data security framework. Cyber and data security gains significance with the increased usage of data, applications and interconnected devices. Cyber-attacks result in not only service disruptions but also data loss.

Way Forward – Better quality data services at more affordable prices, infrastructure investments, digital literacy and the availability of cheaper handsets will help bridge the digital divide and promote internet penetration in rural areas.

Speedy fiberisation of rural India will be critical for the digital penetration. Government should formulate policies and encourage public private partnerships for the nationwide roll-out. Models allowing fibrecose and utility companies to roll-out common fibre infrastructure should be encouraged.

Way Forward – It is essential to define a policy that takes a comprehensive approach to security and privacy that ranges from devices and gateways with connectivity to the cloud; IoT platforms and applications; chips to services; and development to operations. Further, the organisations can also set up a multi-stakeholder cell with capability and capacity to provide proactive and responsive crisis management.



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Bridging skill gap is a prerequisite to digital transformationSkilled manpower is essential for adoption and implementation of new technologies which leads to overall growth of the sector. The roll-out of newer technologies promises to bring about an exponential growth in employment opportunities for skilled resources. In the digital ecosystem, a huge gap exists in the technical and software skills required for implementing new technologies, such as 5G and M2M and evolution in the ICT sector.

Constraints limiting the degree of innovationAs per a KPMG report - The Changing Landscape of Disruptive technologies08, 22 per cent of the industry leaders surveyed felt that government restrictions in the form of regulations act as one of the leading limiters in encouraging innovation in the industry. The industry players and businesses want a very high degree of transparency translating to regulators. The absence of robust technology standards and legacy IT infrastructure act as another roadblock towards encouraging innovation. As newer technologies continue to emerge and older technologies evolve, integration complexities faced by consumers as well as enterprises are only expected to grow further.

64 per cent of organisations viewed widening skill gap as a key concern06

22 per cent leaders viewed regulator policies as restrictive

17 per cent felt access to talent acted as a barrier to innovation

11 per cent identified non-existent tech standards as a leading factor

20 per cent cited legacy infrastructure as a hindrance.

49 per cent of employees expect current skills to be redundant in the next 4-5 years with 34 per cent of employees expecting skills to

be redundant in the next 1-2 years06

Demand-supply gap of 200,000 data analytics professionals by 202007.

Way Forward – Capacity-building exercise may be undertaken at the grass root level with involvement of state and central education machinery. A network of skill development centres may be established to promote development and learning of multiple skills.

Way Forward – The need of the hour is for technology players to collaborate more amongst themselves and develop solutions that provide more value to the end consumers.

06. India emerges as biggest source for digital talent: Survey, Economic Times Updated: October 26, 2017

07. The digital skill gap that may trip the IT juggernaut in days to come, Business Standard, 09 June 2018

08. The Changing Landscape of Disruptive Technologies, KPMG U.S., 2018


84

Multiple regional languages add complexity to content creationVideo viewing accounts for a large percentage of data usage. In the next five years, 90 per cent of the incremental internet users in India are likely to be local language users.09 Lack of content in the local language will act as a serious limiting factor in content uptake.

Way Forward – Telecommunications and digital service providers have to create regional content and develop multi-language data analytics tools to gather consumer insights. Devices need to provide Indian language support along with content.


85

GlossaryEMCs Electronics Manufacturing Clusters

FDI Foreign Direct Investment

FWA Fixed Wireless Access

FY Financial Year

GB Gigabyte

Gbps Gigabytes per second

GDP Gross Domestic Product

GI cloud Government of India cloud

GPRS General Packet Radio Services

GPS Global Positioning System

GST Goods and Services Tax

HD High Definition

HSBB High Speed Broadband

IaaS Infrastructure as a Service

ICERT Indian Computer Emergency Response Team

ICT Information and Communication Technologies

ID Identification

IMC India Mobile Congress

IoT Internet of Things

IP Infrastructure Providers

IP Internet Protocol

IPR Intellectual Property Rights

IPTV Internet Protocol Television

IPv4 Internet Protocol version 4

IPv6 Internet Protocol version 6

ISP Internet Service Providers

ISRO Indian Space Research Organisation

IT Information Technology

ITeS Information Technology enabled Services

ITU International Telecommunication Union

Kbps Kilobytes per second

KYC Know Your Customer

LED Light Emitting Diode

LF Licence Fee

3D Three Dimensional

3G Third Generation

4G Fourth Generation

5G Fifth generation

1M1B 1 Million for 1 Billion

6LoWPAN IPv6 over Low Power Wireless Personal Area Networks

AGR Adjusted Gross Revenue

AI Artificial Intelligence

AIM Atal Innovation Mission

AML Anti Money Laudering

API Application Programming Interface

AR Augmented Reality

ARPU Average Revenue per User

ATM Automated Teller Machine

B2B Business-to-Business

B2B2C Business-to-Business to-Consumer

B2C Business-to-Consumers

B2G Business-to-Government

BaaS Banking as a Service

BFSI Banking, Financial services and Insurance

BHIM Bharat Interface for Money

BSS Business Support System

BTS Base Transceiver Station

C2C Consumer to Consumer

CA Carrier Aggregation

CAGR Compound Annual Growth Rate

capex Capital Expenditure

CERTs Computer emergency response team

COAI Cellular Operators Association of India

CSP Cloud Service Providers

DTH Direct-to-Home

EBITDA Earning Before Interest, Tax, Depreciation and Amortisation

EDF Electronics Development Fund

eMBB Enhanced Mobile Broadband


86

LiFi Light Fidelity

LoRa Long Range

LTE Long Term Evolution

M&E Media and Entertainment

M2M Machine-to-Machine

Mbps MegaBytes per second

MHz Mega Hertz

MIMO Multiple-Input and Multiple-Output

ML Machine Learning

MOOC Massive Open Online Course

MoU Memorandum of Understanding

MSCI Morgan Stanley Capital International

NASANational Aeronautics and Space Administration

NAT Network Address Translations

NBFC Non Banking Financial Companies

NBIoT Narrow Band IoT

NDCP National Digital Communication Policy

NFV Network Function Virtualisation

NLP Neuro-Linguistic Programming

NLP Natural Language Processing

NRI Network Readiness Index

O2O Online-to-Offline

OBCMS On-board Condition Monitoring System

OFC Optical Fibre Communication

opex Operating Expense

OSS Operational Support System

OTT over-the-top

PCBs Printed Circuit Boards

PMA Preferential Market Access

PPP Public Private Partnership

QAM Quadrature Amplitude Modulation

QoS Quality of Service

R&D Research and Development

RBI Reserve Bank of India

RFID Radio Frequency Identification

RoI Return on Investment

ROIC Return on Invested Capital

RoW Right of Way

RPA Robotic Process Automation

SAAS Software as a Service

SDN Software Defined Networking

SD-WAN Software-defined Wide Area Network

SEZs Special Economic Zones

SMS Short Message Service

SONs Self-Organising Networks

SUC Spectrum Usage Charges

SWANs State Wide Area Network

TB Terabyte

telcos Telecom companies

TFC Telecom Finance Corporation

TMTTechnology, Media and Telecommunications

TSP Telecom Service Providers

TSSC Telecom Sector Skill Council

TV Television

TVWS Television Whitespace

UHD ultra-high-definition

UID Unique Identification

UPI Unified Payment Interface

USD United States Dollar

USO Universal Service Obligation

USOF Universal Service Obligation Funds

VC Venture Capitalist

VFX Virtual Effects

VoLTE Voice over Long Term Evolution

VNF Virtual Network Function

VR Virtual Reality

WiFi Wireless Fidelity

WirelessHARTWireless Highway Addressable Remote Transducer Protocol

YoY Year over Year



About IMC

About KPMG in India

India Mobile Congress (IMC) is the largest mobile, Internet and technology event in South Asia. Due to the resounding success of its inaugural chapter in 2017, IMC has become a key platform to showcase India’s digital journey towards becoming an empowered global knowledge economy. Organised jointly by the Cellular Operators Association of India (COAI) and the Department of Telecom (DoT), the mega-event will allow the world to see India as a leader in the Telecommunications and Technology space. IMC 2018 is supported by several Government bodies, such as the Ministry of Electronics & Information Technology (MeitY), Ministry of Skill Development & Entrepreneurship (MSDE), Ministry of Housing and Urban Affairs (MHU), in addition to various other technical and regulatory outfits.

With its theme New Digital Horizons: Connect, Create, Innovate, IMC 2018 is anticipated to be bigger and better than its first iteration, with the

participation of 10 Partner Countries, 200+ Global Speakers, 300+ Exhibitors, 5,000+ CXOs, 1,000+ International Media and 100,000+ visitors. The international symposium will encourage debates and dialogue that affect policy and standards, which in turn should help in bridging the digital divide, enable financial inclusion and create a facilitative ecosystem for the development of crucial technologies. The aim is to create an ecosystem for ICT players and all relevant stakeholders to take part in the realisation of the Digital India program. IMC 2018 also aims to build upon innovative ideas, form long lasting industry relationships, showcase cutting-edge mobile technology and product trends, and provide sectorial insights and impactful solutions. This year, the event will particularly encourage the country’s robust startup ecosystem and budding entrepreneurs, through various targeted engagement programs.

KPMG in India, a professional services firm, is the Indian member firm affiliated with KPMG International and was established in September 1993. Our professionals leverage the global network of firms, providing detailed knowledge of local laws, regulations, markets and competition. KPMG has offices across India in Ahmedabad, Bengaluru, Chandigarh, Chennai, Gurugram, Hyderabad, Jaipur, Kochi, Kolkata, Mumbai, Noida, Pune, Vadodara and Vijayawada.

KPMG in India offers services to national and international clients in India across sectors. We strive to provide rapid, performance-based, industry-focussed and technology-enabled services, which reflect a shared knowledge of

global and local industries and our experience of the Indian business environment.

KPMG InternationalKPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 154 countries and territories and have 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.


Acknowledgements

We would also like to acknowledge the core team from KPMG in India who worked extensively in preparation of this report:

• Abhirajika Rathore

• Arjun Malhotra

• Anshuman Jha

• Avinash CH

• Darshini Shah

• Devanshee Deepak

• Gopalakrishna Anantha

• Kshitiz Vaish

• Mandan Mishra

• Nisha Fernandes

• Pawan Hejamady

• Ragini Singh

• Rahil Uppal

• Richa Joshi

• Rishabh Amla

• Rishabh Rane

• Rohit Bajpai

• Sanjna Dhingra

• Sharon D’silva

• Shilpa Bhoir

• Sunit Kumar

• Utkarsh Bamrara

• Yatin Gaind

• Yasharth Srivastava

Special thanks to the following members of KPMG in India for their leadership and guidance in preparation of this report:

• Mritunjay Kapur

• Purushothaman K G

• Mohit Prabhakar

• Rahul Hakeem

• Sonica Bajaj

• Girish Menon

Acknowledgements from COAI:

• Vikram Tiwathia – Dy. Director General

• Gopal Mittal – Sr. Director (Finance & Commercial)

• Saurabh Puri – Sr. Director (Research & Analysis)

• Amrita Anand – Sr. Manager (Legal)

• Vikas Kumar – Sr. Manager

• Nabil Syed – Asst. Manager

• Anandhi Nair –Dy. Manager

Acknowledgements from IMC:

• Ankita Mittal

• Dhruv Sood

• M A Sudhakaran

• Nitish Aneja

Mritunjay KapurNational Head Markets and StrategyHead - Technology, Media and Telecom T: +91 124 307 4797 E: [email protected]

P Ramakrishna CEOIndia Mobile CongressT: +91 – 011- 23440234 E: [email protected]

Grace Mathews Program DirectorIndia Mobile CongressT: +91 – 011- 23440232E: [email protected]

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The views and opinions expressed herein are those of the interviewees/survey respondents/quoted individuals and do not necessarily represent the views and opinions of KPMG in India.


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This document is meant for e-communication only

KPMG in India contacts: IMC contacts:

Purushothaman K GPartnerRisk ConsultingT: +91 22 6134 9523E: [email protected]

Sonica BajajDirector MarketsT: +91 22 3090 2705E: [email protected]

Rahul HakeemDirector KPMG in IndiaT: +91 124 336 9706 E: [email protected]

Mohit PrabhakarPartnerRisk ConsultingT: +91 124 336 9465E: [email protected]

Connect. Create. Innovate. India Mobile Congress 2018

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