NEPAL :

Rising Telecom Value

Added Services (VAS)

Market

An Approach Note

2

NEPA

L AREA as big as Orissa

75% Population as Orissa

41% Agriculture, 22% Industry, 37% Services

Technical Backwardness

Kathmandu (Pop.: 3,442,271)

Pokhara (Pop.: 200,000)

Patan (Pop.: 183,310)

3

TELE

CO

M

SC

EN

AR

IO

4

The P

laye

rsNepal

Telecom

NCELLUTL

SmartTell

Hello Nepal

New Telecom Players entering

into market each year

5

The N

um

bers

GSMCDMA

PSTN

0

1

2

3

4

5

6

7

8 NTCNCELLUTLOthers

Subscribers in Millions

2007 2008 2009 2010 20110

1

2

3

4

5

6

7

NTCNcellUTLOthers

Subscribers in Millions

Mobile Subscriber rised 12 times

in 3 years ( 2008 – 2011 )

Approx 20 Million by 2014

Tele

phony

Penetra

tion

More than Half Bare hands for

Mobile phones, NEPAL has large

VAS prospects ahead

6

7%

87%

6%

Penetration Rate

Fixed Lines Mobile Lines Others

40%

60%

Penetration Rate Subscribers and Population

7

Connect

ing…

.

87% Data users are 3G and GPRS Users

DialupWirelessCableADSLGPRS and 3GCDMA

3G speed is upto 3.6

MBps and still NO 3G VAS Players

8VAS – Now and Ahead

9

•Content Provider

5-10% Revenue

•Content Aggregator

10-15% Revenue •Technology

Enabler

10-20% Revenue

•Mobile Operator

50%-60% Revenue •Handset

Manufacturer

-

•Consumer

-

The VAS Value Chain

10

What'

s up ?

SMS still is the leader for VAS technology

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

0%

10%

20%

30%

40%

50%

60%

70%SMS

Video Calls

Social NetworkMMS Email

VAS Usage and Awareness

11

The w

eath

er

Around 15 VAS players

Around 8 Currently Active

Less than 5 active in

diverse domain

Clear Weather for New

flight

CRBT

SMS Banking

Polling

SMS Games

Info Alerts

12

VA

S F

inanci

al

Mark

et

CRBT

Others

SMS Games

5 15 25 35 45 55 65

CRBT

SMS banking

Oth-ers

So-cial Awarnes

s

SMS Games

Polling

NPR crores

68 15 9.5 5 18 27.2

6815

9.55

1827.2

NPR crores

13

VA

S p

rosp

ects

in N

epal

Large number

of Domains to

be Explored

Right time to

Identify and

capture the

sky

Technologies

like USSD, IVR,

SIP, 3G etc still

to be explored

and

Implemented

3G (audio and

video content

provider)

Content

Aggregator

Mobile TV

Mobile Payments

Stock Market

Trading

Travel Related

Information

m-Commerce

Mobile Gaming

SIM based

services

M-Governance

Enterprise

Solutions

14

Who w

e A

re ?

Sanskriti Infoedge Pvt. Ltd.• Working in domains like E-Governance &

Online Travel to offer technology enabled services and solutions.

• Promoters of the company have traditional businesses like Manufacturing, Trading, Finance & Plantation etc. with successful setups for the last 2-3 decades.

Association with Janaki Technologies Pvt. Ltd.• Nationwide Popular VAS Engine SPARROW

SMS• SPARROWSMS used in US, NZ, Mozambique

and national clients• Working in VAS domain since 2008• Team of skilled and ambitious technology

and consulting professionals in Telecom.

15

What’s in

it for

you?

What we bring

to the table?

International

Presence

Entry to an under

developed market

with good prospects

Execution capability

due to our

association with

Janaki Technologies

Good networking in

the Telecom and

other industries due

to our existing

business setup in

Nepal

What we expect

from you?

Tie-up to quickly

turn around

innovative and

proven ideas

Execution and

strategic inputs

Operational

support

Technology sharing

Case

Stu

dy

1

Missed Call AlertsNTC, the biggest and oldest Telecom operator and semi-Government company, did not have Missed call alert system. The promoters of Spice Mobile in Nepal, implemented the system, in association with their Indian partners.

The resultsThe results

► The service was launched at Rs. 40 NPR per month.

► Close to a 100,000 subscribers within 3 months.► The venture resulted in a successful operational

setup and annual revenues of Rs. 5 million NPR.► A monopoly like situation due to a tie-up with NTC.

► The service was launched at Rs. 40 NPR per month.

► Close to a 100,000 subscribers within 3 months.► The venture resulted in a successful operational

setup and annual revenues of Rs. 5 million NPR.► A monopoly like situation due to a tie-up with NTC.

Case

Stu

dy

2

Social Awareness CampaignsNepal is a developing country and receives a lot of foreign funding. There are 1000’s of INGOs and NGOs in Nepal.

UNICEF started to use VAS, with a Toll free SMS number 4400, to get people’s opinions and provide them suggestions.

The resultsThe results

► This number now receives thousands of SMS daily and has resulted in positive outcome for the society.

► It is proven that SMS VAS can be used to create awareness.

► MANY more INGO’s in NEPAL are ready to use technology and innovative ideas to reach normal public and raise awareness.

► This number now receives thousands of SMS daily and has resulted in positive outcome for the society.

► It is proven that SMS VAS can be used to create awareness.

► MANY more INGO’s in NEPAL are ready to use technology and innovative ideas to reach normal public and raise awareness.

18

Our C

onta

ct

Coord

inate

s

Saurabh Kedia

Managing Director & CEO

M(Nepal) - +977 9813548280

M(India) - +91 9650032532

O(Nepal) - +977 1 4261050

Fax(Nepal) - +977 1 4250130

Email:saurabh@sanskritiin

foedge.

com

saurked@gmail.com

Key Contacts

Ashish Jajodia

Director – Business

Development

M(Nepal) - +977 9851103018

M(India) - +91 8130684380

O(Nepal) - +977 1 4261050

Fax(Nepal) - +977 1 4250130

Email:ashish@sanskritiin

foedge

.com

jajodia.ashish@gmail.com