A Study of Telecom Industry

Presented by:

MITHUN GHOSH

9163797960

Telecom in the real sense means transfer of information between two distant points in space

Telecom is a huge and varied fastness of technologies, companies, services

that is truly global in nature

Telecom stands as one of the most essential elements of the business world in terms of

“Connecting the World”

INTRODUCTION

History of Telecom Industries1851 First operational land lines were laid by govt near Calcutta (seat of

British power)

1881 Telephone service introduced in India

1883 Merger with postal system

1923 Formation of Indian Radio Telegraphy Company(IRT)

1947 Nationalization of all Foreign telecommunication companies to form the posts, Telephone and Telegraph ,a monopoly run by the government’s Ministry of Communications.

1985 Department of Telecommunication(DOT) established.

1986 Conversion of DOT into two wholly government-owned companies: the VSNL for international telecommunications and MTNL for service in metropolitan areas.

1997 Telecom Regulatory Authority of India Created.

2000 DOT become a corporation ,BSNL

Overview of Telecom Industries

Indian Telecom sector, like any other industrial sector in the country, has gone through many phases of growth and diversification. Starting from telegraphic and telephonic systems in the 19th century, the field of telephonic communication has now expanded to make use of advanced technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day by day, both the Public Players and the Private Players are putting in their resources and efforts to improve the telecommunication technology so as to give the maximum to their customers.

Fixed line Telephone Mobile Telephone

Airtel24%

Vodafone18%

Bsnl13%

Tata9%

IDEA11%

Aircel5%

Reliance19%

Others1%

Mobile company market share (as on 30Th apr,2009)

Players of Telecom Industries

AirtelBSNLVodafoneRelianceIdea

All players are launched net usage by USB (plug & surf from anywhere)

AIRTEL Established in 1995 by Sunil Mittal as a Public Limited

Company, Airtel is the largest telecom service provider in Indian telecom sector. With market capitalization of over Rs. 1,360 billion, Airtel has 24% of total market share of GSM service providers. Providing GSM services in all the 23 circles, Airtel was the first private player in telecom sector to connect all states of India. Also, Airtel is the first mobile service provider to introduce the lifetime prepaid services and electronic recharge systems.

SWOT ANALYSIS

STRENGTHS

Market share.

Pan India Footprint.

Customer care. Promotions

WEAKNESS

Price Competition from BSNL and MTNL

Losing lead on technical expertise.

OPPORTUNITIES The fast extending IPLC market.

Latest technology and low-cost advantage.

Growth of mobile phone users.

Untapped Rural Market.

THREATS

Market Maturity in basic telephony segment.

Standard plan

Plan l Plan 2 Plan 3

Airtel Data Card Rental

Rs. 49/- Rs. 350/ Rs. 599/- Rs. 999

Free Bundled Usage

NIL 500 MB 1 GB Unlimited

Data Usage (per MB)

Re. 0.10/- per 10 KB

Rs. 5/- Rs. 3/- unlimited

Free SMS per month

NA NIL 100 100

Voice Plan Additional Any Plan

Voice Rental Inclusive*

Voice Rental Inclusive

Voice Rental Inclusive

USB Modem – Rs. 3999/-

AIRTEL DATA CARD:-

VODAFONE

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai. Vodafone Essar now has operations in 20 circles with over 54.63 million customers. Vodafone is the world’s leading international mobile communications company. It now has operations in 25 countries across 5 continents and 40 partner networks with over 269 million customers worldwide. Vodafone partnered with Essar Group as its principal joint venture partner for the Indian market.

USB Modem – Rs. 2999/-

Special Offer: (12 month advance Rental Plan)

Advance Rental: Rs. 5999/- Period: 12 Months

Data Bundle: 1 GB usage per month for 12

months.

Note: Customer is moved to Rs. 499/- (1 GB) plan

at the end of offer period

Monthly Rental Rs. 499 Rs. 699

Free Data 500 MB 1 GB

User charge 5p / 10 KB 5p / 10 KB

VODAFONE DATA CARD

BSNL (Bharat Sanchar Nigam Ltd.)

Founded in 2000, Bharat Sanchar Nigam Ltd. India's largest public

sector Telecommunications Company providing a wide variety of

telecom services. Its service range covers Wire line, CDMA mobile,

GSM Mobile, Internet, Broadband, Carrier service,

VSAT, VoIP services and 3G service , etc. In 2005-06, the BSNL

earned revenues of Rs. 40,177 crore, & In 2007-08, the BSNL

earned revenues of Rs.38,053 crores.

KOLKATA UTTARPRADESH JHARKHAND CHENNAI

PLANS Down Payment

MonthlyRental

Down Payment

MonthlyRental

DownPayment

MonthlyRental

Down Payment

MonthlyRental

PLAN 1 Rs.2980 Rs.221 Rs.1650 Rs.400 Rs.2460 Rs.750 Rs.3500 Rs250

PLAN 2 NA NA Rs.3600 Rs.250 Rs.3600 Rs.250 NA NA

BSNL Evdo Data Card Tariff What is EVDO :This word stands for Evolution-Data or Evolution-Data Optimized is a internet service standard for wireless internet connections with speeds ranging upto 2.4Mbps

IDEA

Joint venture of Aditya Birla Group and Tata Group. Idea Cellular, is a part of Aditya Birla Nuvo, a flagship

company of the Aditya Birla Group Idea is growing its network in 11 circles. Idea offers both prepaid and post paid services in

the GSM network. It has 11% market share. Idea has a base of 2.3 crores subscribers all over the

country. A three-year contract was signed between Idea

cellular and Ericsson for GSM expansion.

Idea Net setter data card Features

Global roamingGRPSData and SMS capabilities.Plug & Play function, no installation CD requiredSIM-lock function

Tariff plan Free Data Usage Usage change beyond free usage

Special offer (For first 3 bill cycle)

Net Setter 299 512 MB Rs 2/MB Free Usage – 1 GB

Net Setter 399 1 GB Rs 2/MB Free Usage – 1 GB

Net Setter 849 Unlimited NA Rental - 500

Idea Net setter data card Price in India – Rs. 2490/- MRP (incl of taxes)

IDEA NETSETTER DATA CARD

RELIANCE

Established in 2002, Reliance communication is the wholly owned subsidiary of Anil Dhirubhai Ambani Group of Companies providing the telecommunication services. Reliance offers prepaid and postpaid mobile services with R-world and fixed line services with broadband services. In 673 cities, Reliance Communications offers a wide range of telephony services. With an optical fiber network of 80,000 kms, the company aims at providing best services to its customers.

Price Rs. 2299/-Pack Price Validity

Broadband+ 300MB Pack Rs. 250/- 30 Days

Broadband+ 700MB Pack Rs. 500/- 30 Days

Broadband+ 1GB Pack Rs. 715/- 30 Days

Broadband+ 3GB Pack Rs. 935/- 30 Days

Broadband+ 5GB Pack Rs. 1,210/- 30 Days

Broadband+ 10GB Pack Rs. 1,379/- 30 Days

Broadband+ 1GB Pack Rs. 200/- 1 week

Broadband+ 6GB Pack Rs. 1500/- 3 months

Broadband+ 18GB Pack Rs. 3,000/- 6 months*Additional usage @Rs.1per MB

Reliance Net connect Broadband+

Additional usage @Rs.1per MB

Wireless broadband for laptops and desktopsDownload speeds up to 3.1 Mbps and upload speeds up to 1.8 MbpsSimply plug and play

Evaluation Criteria & Parameter of CompetitorsFactor Reliance Airtel Vodafone IDEA

Used For Laptop & desktop Laptop & desktop Laptop & desktop Laptop & desktop

Technologies CDMA EDGE EDGE EDGE

Price 2299 3350 2999 2490

Speed 144 kbps to 3.1Mbps 512 kbps .53 Mbps Up to 3.6 Mbps

Voice Call yes yes NA Yes

No of Tariff 9 4 2 3

500 MB free NA Rs.350 Rs.450 Rs.299

1 GB free Rs.650 Rs.599 Rs.699 Rs.399

Unlimited Rs.1500 Rs.999 NA Rs.849

Unlimited(Night) Rs.400 NA NA NA

Minimum rate Rs.300 Rs.49 Rs.499 Rs.299

Maximum rate Rs.1500 Rs.999 Rs.699 Rs.849

Additional Data Usage(size)

Rs.2/MB Plan Rs.350- Rs.5/MBPlan Rs.599- Rs.3/MB

NA Rs.2/MB

AIRTEL VODAFONE

RELIANCE BSNL

IDEA

PRODUCT

Pre-paid, Post-paid, Wireless.Value Added Services (VAS) like hello tunes , GPRS.

PrepaidPostpaid. Itsgives different features such as games,pictures, ring tones, information services.

Prepaid, postpaid, Wi- fi, CDMA, mobile services, wireless desktop phones, public booth telephony, wire line services and enterprise solutions, GSM space.

Prepaid ,post paid, Landline, public booth telephony

Prepaid, Postpaid,Data card

PRICE

Customer based pricing strategies

Vodafone offers a number of price plans to suit all of its target groups. Phone users can top up their phone on line

It offers various pricing structure so that every people can afford this.

It offers various pricing structures to suit different customer groups

Customer based pricing strategies

Marketing Mix

Marketing mix AIRTEL VODAFON

E RELIANCE

BSNL IDEA

PLACE

It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points

Vodafone operates over 300 stores and also sells through other outlets. It has expert staff in the stores to help buyers.

It reaches to it’s 58million customers in more than 410,000 towns through different outlets & stores.

It has 2.44 crore GSM customer base in India.

It has 1.3 crore GSM customer base in India

PROMOTION

Print & video adsEndorsement by big celebritySpecial discount in calling rate & sms

Ads on T.V, News paper, billboardStores have special offers, promotions and point of sale posters to attract those inside the stores to buy

, TV commercials ,billboard, newspaper, telecom partner of “KITES”

Special discount in calling rate & smsPOS material

TV commercialsEndorsement by Abhishek BacchanBillboardSpecial discount in call & SMS rate

COMPETITIVE ANALYSIS (POSITIONING STRATEGY)

Vodafone has veered towards warmth and emotions.

Vodafone used the powerful visual imagery of a dog.

Airtel Positions itself as a lifestyle brand.

Airtel choose to use music, which is not nearly as effective.

COMPETITIVE ANALYSIS (TARGET AUDIENCE)

They are targeting middle class person as their target audience.

It can be justified by their product like chota recharge.

A group or class of persons enjoying superior intellectual or social or economic status

Up market class of people

Developments in telecom industry

3G Technology In India• 3G or Third Generation technology is a convergence of

various Second Generation telecommunication systems.

• The technology is intended for SMARTPHONES - • It offers 3 Mbps speed for downloading, which is very

high as compared to that of the 2G technology. • The 3G technology provides for -1.Internet surfing, 2.Downloading, 3.E-mail attachment downloading, 4.Audio-video conferencing, 5.Fax services and many other broadband applications.

Future TrendsConvergence of technologies & the

ability of private players to offer it to the market faster than the incumbent operator.

“The telecom industry in 2012 will be very different from the one we know today. Developing strong partnership skills, focusing on customer user groups, embracing Internet services and starting to talk the language of Web 2.0 will enable the carriers to thrive well into the future,"

Conclusion

In this changing landscape, the winners will be those

companies that understand consumers' needs,

focusing on usability and actually giving control back

to the users. The losers will be the ones that focus

on overly technical product differentiation that the

majority of consumers will not understand and

therefore not use.

THANK YOU…..