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Sterlite Technologies Limited. Investor Presentation 2021

Mar 19, 2021

59411_rns_2021-03-19_2a1dce3e-afa5-45c4-a0ad-5d2663443687.pdf

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www.stl.tech

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March 19, 2021

National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5[th] Floor, Phirozee Jeejeebhoy Towers, Plot No. C-1, G Block, Dalal Street, Bandra Kurla Complex, Bandra (East) Mumbai - 400 001. Mumbai - 400 051.

Sub: Intimation of Key Discussions in STLescope Tech Talk – Virtual Meet

Dear Sir/Madam,

Further to our intimation dated March 18, 2021 and pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you the key points discussed in the Virtual Tech Talk on 19[th] March 2021.

The presentation of the STLescope Tech Talk is attached herewith.

Kindly take the above on your record & acknowledge the receipt.

Thanking you,

Yours faithfully,

For Sterlite Technologies Limited

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Amit Deshpande

Company Secretary & Corporate General Counsel

Sterlite Technologies Limited

Godrej Millennium, 9 Koregoan Road, Pune 411001, Maharashtra, India Registered office: E1, MIDC Industrial Area, Aurangabad - 431 136, Maharashtra, India . CIN - L31300MH2000PLC69261

March’ 21

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© 2021-2022 Sterlite Technologies Limited

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1

Network creation – opportunity landscape

2

3

Role of network Converged edge design network

4

5

Key challenges in STL way of designing the current a converged edge network design network

2

© 2021-2022 Sterlite Technologies Limited

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Network creation outlook is buoyant
Network spends are likely to double
~2X
Market Size Driving Factors
(B USD)
~470
500

Global 5G roll-out over next
8-10 years
400
Service
~325
• Growing FTTx penetration
300
Multi Access
~245 Edge Computing

Transition to cloud and
200
Software software defined networks
Core
Transport
100 • Acceptance of Open
RAN standards
Fixed Access
0
FY18 FY23 FY28
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Source: Reports from Gartner, MarketsAndMarkets, Ovum, Dell’Oro (Switch/Router split); IDC, Bain analysis © 2021-2022 Sterlite Technologies Limited

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And we are seeing acceleration in network investments

Network Creators are Investing Heavily…

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TELECOM OPERATORS
May 2020 May 2020 March 2020 June 2020
China mobile to invest Verizon to invest Airtel to double its fixed line
BT to invest $12 Bn in
$14 Bn in building digital building 5G and next $18.5 Bn to accelerate penetration in next three
infrastructure enabling faster generation full fibre its 5G plans globally years
5G Connectivity broadband across the UK
CLOUD COMPANIESLOUD COMPANIES COMPANIESOMPANIES CITIZEN NETWORKSITIZEN NETWORKS NETWORKSETWORKS
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CLOUD COMPANIESLOUD COMPANIES COMPANIESOMPANIES CITIZEN NETWORKSITIZEN NETWORKS NETWORKSETWORKS
May 2020 March 2020
Microsoft to invest Google to invest Indian Govt. aims to provide
$15 Bn to accelerate $10 Bn in US offices 5,00,000 FTTH connections by
Sept 2020 (part of BharatNet)
digital transformation in and data centres in 2020
Italy including its first data
Sets aside a FCC, US launched rural digital
centre region
opportunity fund worth $20 bn.
$10 billion for India
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Source: Telecom lead

… and Attracting Billions

July ’20

Jio platforms has raised $20.2 Bn capital from global financial & strategic investors incl. Google & Facebook

PE INVESTMENT

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Feb 2020 Feb 2020
KKR in partnership EQT in partnership with
with Telecom Italia OMERS to invest $4 Bn to
to invest $7-8 Bn in acquire a fibre optic
Open Fibre deal internet access company in
Germany
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© 2021-2022 Sterlite Technologies Limited

1

5

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Network creation – opportunity landscape

2

2 Role of network Role of network design design

3

Converged edge network

4

Key challenges in STL way of designing the current a converged edge network design network

5

© 2021-2022 Sterlite Technologies Limited

Network design has a pivotal role to play It is the most intellectual step in the network creation cycle

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1 2 3
Granular Network
Deployment
Survey Design
5 4
Modernisation Management
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© 2021-2022 Sterlite Technologies Limited

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1

Network creation – opportunity landscape

2

Role of network design

3

Converged edge network

4

5

Key challenges in STL way of designing the current a converged edge network design network

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© 2021-2022 Sterlite Technologies Limited

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5G use cases demand a Converged Edge Network

Enhanced mobile broadband

Fixed wireline and wireless

Drivers

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  • Last-mile technology for fixed and mobile broadband access

  • Gigabytes in a second

  • Immersive reality

  • Tower Fiberisation

  • eSports

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  • High speed broadband for all

Massive Internet of Things

Ultra-reliable, low- latency communications

  • Smart cities, homes and buildings

  • Multiple vertical industries

  • Wearables

  • Autonomous driving

  • Industrial and vehicular automation

  • Remote Surgery

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© 2021-2022 Sterlite Technologies Limited

What is a Converged Edge Network ?

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V band + Sub 6GHz FSO or E band Residential Convergence of Enterprises Small Cells E band , Sub 6GHz Or licensed microwave wired and wireless Hospital FSO or E band V band networks at the Edge or Sub 6GHz Fiber Cell Tower

Fiber ring

Definition

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Rural
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© 2021-2022 Sterlite Technologies Limited

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How will a “Converged Edge Network” look like?
V band
+ Sub 6GHz
Fiber
ring
FSO or E band
Definition Residential
Enterprises
Small Cells
E band , Sub 6GHz
Or licensed microwave
Hospital
FSO or E band
V band
or Sub 6GHz
Fiber Cell Tower
Rural
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© 2021-2022 Sterlite Technologies Limited

Characteristics of a Converged Edge Network

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Characteristics

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Close to the Edge At the Edge EDGE Seamless Wired & Wireless Optical & Radio CONVERGED Enhanced Experience Connectivity & Compute COMPUTE Agile, Scalable, Agnostic Hardware & Software DISAGGREGATED

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© 2021-2022 Sterlite Technologies Limited

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What world expects from a Converged Edge Network
All kind of digital networks Requires optimal mix of
Converged at edge design considerations
S CALE
L ATENCY
Design
A GILITY
Considerations
U PTIME
C OSTPER GB
Data Centre Enterprise E XPERIENCE
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Data Centre Enterprise
FTTH
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© 2021-2022 Sterlite Technologies Limited

SLAUCE optimization is the key to a Converged Edge Network

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Design Considerations

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PARAMETER FTTH Enterprise Data Centre
S CALE
L ATENCY
A GILITY
U PTIME
C OST PER GB
E XPERIENCE
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Degree of Importance

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© 2020-2021 Sterlite Technologies Limited

1

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Network creation – opportunity landscape

2

Role of network design

3

Converged edge network

4

5

Key challenges in STL way of designing the current a converged edge network design network

15

© 2021-2022 Sterlite Technologies Limited

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SLAUCE is key, but design challenges need to be solved

KEY CHALLENGES

NETWORK IMPACT

Design gap among different layers

1

DISINTEGRATED APPROACH

2

INCREMENTAL PLANNING

Inadequate resource dimensioning

3

MULTI PHYSICAL LAYER

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Inefficient resource utilization

4

EXECUTION CONSTRAINED PLANNING

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Unoptimized Planning

5

POOR NETWORK INVENTORY DATABASE

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Unoptimized usage of existing asset

16

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1

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Network creation – opportunity landscape

2

Role of network design

3

Converged edge network

4

5

Key challenges in STL way of designing the current a converged edge network design network

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© 2021-2022 Sterlite Technologies Limited

Solving network design challenges STL way of network design - iCORE

I Integrated C Centralized Planning

One Backbone O R Re-Use Existing Infra E Everything Survey

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© 2021-2022 Sterlite Technologies Limited

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© 2020-2021 Sterlite Technologies Limited

I ntegrated design across all 3 layers

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Disaggregated approach.. E2E Integrated Play across 3 layers...
Integrated
I
C
Team A Application Layer
O
APPLICATION LAYER
R LOGICAL LAYER
Team B Logical Layer ONE TEAM PHYSICAL LAYER
E
Team C Physical Layer
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© 2021-2022 Sterlite Technologies Limited

C entralized network planning

Transition from decentralized

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I
Data Centre (Network Operations
Centralized
C COMPUTE Centre)STORAGE
Planning
200G / 100G / ODU-4 / DWDM
O
R 10G/100G 10G/100G
10G/100G
E
1G/10G 1G/10G
1G
10G
CORE
EDGE
ACCESS
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ACCESS
LAST MILE
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Decentralized network planning

Localized electronics serving small clusters

  • Active Infra

  • Regular power supply

  • Periodic maintenance

  • More downtime

  • Security required

Powered by localized electronics

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DECENTRALIZED to CENTRALIZED
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© 2021-2022 Sterlite Technologies Limited

O R

C entralized network planning

- Transition from decentralized

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I
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C Centralized Planning

E

DECENTRALIZED NETWORK

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PLANNING
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ACCESS
LAST MILE
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Localized electronics
serving
small clusters
• Active Infra
• Regular power supply
• Periodic maintenance
• More downtime
• Security required
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Powered by localized electronics

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ACCESS
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Centralized network planning

CO/MEC 1 Central Office

Powered by high capacity electronics and robust infrastructure

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2
High fiber
count cable
3
Bigger clusters serving
more end points without any
intermediate active infra
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4 Powered by CO

*CO – Central office

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© 2021-2022 Sterlite Technologies Limited

I

O R E

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C Centralized Planning

STL Indirapuram Cluster A live use case for

Decentralized Vs Centralized approach

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A live example- STL Indirapuram Cluster
Decentralized approach
21 clusters
47138 home pass
I
~30 Kms
Sector-1
Centralized
4 Clusters
C
Planning
O
R
Sector-2
E Sector-3 13 Clusters
4 Clusters
Localized OLT
Serving 2K cluster
EDGE
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© 2021-2022 Sterlite Technologies Limited

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A live example- STL Indirapuram Cluster
Centralized approach
Mahagun 1 Centralized CO
Mosic
148 Serving 3 large clusters
I
47138 home pass
~27 Kms
Pragya
Cluster 1 Kunj Oliver
Centralized Home pass - 576 County
868
C
Planning 8641
Appex
Accacia
236
Cluster 2
O
Overlap 1.9
Home pass -
KMs
31233
Shipra
Reviera
R 1260
Overlap 1.5
Eastern KMs
Heights
315
Shipra Sun
E City
2400
Cluster 3
Himalaya
Legend Home pass -
120 Windsor & Fibre node along the
7264 Nova road
2544
( at every 100 meters)
Gaur Green Vista
454
25
EDGE
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© 2021-2022 Sterlite Technologies Limited
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O ne integrated physical backbone to cater all digital needs

I

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C

Smart Home & Accident/Disaster/ Smart Smart Utilities Connecting Connected Smart Security Buildings, Industrial Smart Healthcare Communication Transportation Environment poles, Street Cars & Surveillance Automation Smart Education lights

One O Backbone

Cloud/DC IaaS PaaS SaaS

Access devices IP/MPLS Router DWDM/OTN Switches SD-Core/SD-Access OLT/ONT

Transport

R

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E

Future Proof highly scalable Physical layer High fibre count backbone

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© 2021-2022 Sterlite Technologies Limited

I

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R e-use of existing infra for network enhancement

  • Leverage already laid duct utilities

Service Intelligence

  • Tracking of unused passive infra

  • Surveillance of active and passive equipment

C

O

Robust information database

  • Centralized database for passive and active infra deployed

  • • Extensive use of GIS

  • Geo tagging of network resources

R Re-Use Existing Infra

E

Optimize active & passive elements

  • Consideration of centralize Vs decentralize planning

  • Optimize space and power need by proper assessment

  • • Less electronics to reduce overall cost

Leveraging existing infra will optimize scale and reduces overall cost

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© 2021-2022 Sterlite Technologies Limited

I

C

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E verything Survey to assess existing network infra

- TECH ENABLED SURVEY TECHNIQUES

Drone Street view led survey survey

LIDAR survey

O

R

Everything E Survey

Ancillary technologies

Advanced video analytics, Digital measurement tool , Soil strata prediction tools, Iterative design, based on info collected

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© 2021-2022 Sterlite Technologies Limited

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iCORE in action – Case Studies

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Mahanet – Rural broadband connectivity
First ever
BharatNet project to use MPLS design
19,000 route Kms optical connectivity
in rugged, arid and the hottest (~50 [o] C) terrains
Future proof design for enabling
5G and FTTx
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Futuristic statewide Telangana network
High speed broadband
Upto 20mbps in homes and 1gbps in enterprises
4.5 million fibre home passes
providing ubiquitous access of high speed home broadband
Design a future ready converged physical
and virtual infrastructure
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Kakinada smart city
Optical fibre data connectivity
120 Km of underground optical fibre laid
Critical smart elements deployed across city
350 city surveillance cameras,400 Wi-Fi APs and 640 smart lights
End-to-end design of converged multi-access
edge with compute & AI-ML capabilities
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© 2021-2022 Sterlite Technologies Limited

STL expertise in network services

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Market Size
(B USD) ~2X
500 STL has end to end solutions
~470 across the value chain
400
Service Design, Build, Manage
Powered by a world class partner ecosystem
~325
300
Multi Access Converged Platform for Wireless
and Wireline networks
~245 Edge Computing
200
Software Modern SaaS based platforms
Core AI-ML enabled solutions
Transport
100 Cloud native, open vRAN solutions
RAN
Programmable FTTx and optical
Fixed Access connectivity solutions
0
FY18 FY23 FY28
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© 2021-2022 Sterlite Technologies Limited

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beyond tomorrow

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© 2021-2022 Sterlite Technologies Limited