Summer Project

VSNL
Tata Indicom
A PROJECT REPORT
ON
Test Marketing for

Easy Surf
(Residential pre-paid broadband plans)
FOR
VIDESH SANCHAR NIGAM LIMITED
UNDER THE GUIDANCE OF

Mr. PRAVEEN SADALAGE
SENIOR MANAGER - SALES & MARKETING
TOWARDS PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF
POST GRADUATE DIPLOMA IN TELECOM MANAGEMENT
SUBMITTED BY
YAMINI KALE
PREETAM DEY
JITENDRA KHATRI
PULKIT BHATNAGAR
Symbiosis Institute of Telecom Management
Pune- 411016
2003-05
VSNL
Tata Indicom
PREFACE
Just as two-lane highways were inadequate to support a growing nation, Plain
Old Telephone System (POTS) based upon copper circuits was not capable of
carrying the huge flows of information needed for providing multimedia
transmission that will drive Indias economy well in the 21st century. Based upon
this analogy, it was suggested that the nation needed an Information
Superhighway to provide the infrastructure needed to handle these information
flows. Now, in the new millennium, this Superhighway has been rechristened
The Broadband Network a network of high-speed circuits that can carry large
amounts of information to residences and businesses throughout India.
High-speed access to information and web based communication / transactions
have become a competitive differentiator. Internet based services (whether it is
work or learning from homes, schools, colleges) or connectivity for SOHOs /
SMEs is crucial for enhanced productivity and perhaps even survival. Absence of
inexpensive non dial-up options is becoming a major stumbling block for the
countrys growth. Ubiquitous and cost effective public and private Broadband
networks are as vital today as telecommunication networks were ten years ago.
Broadband networks, both wireline and wireless, are best not seen as
technologies but as non dial-up, always-on, integrated communication
highways delivering voice, data and video along with interactivity at speeds
necessary for delivery of different services at required quality levels and in a
manner that current delivery mechanisms do not enable.
Broadband connectivity and services, if designed appropriately and innovatively
and implemented effectively, can be a key driver for several socio-economic
gains including:
1. Empowering consumers to enjoy the full panoply of benefits of the
information age.
2. Providing a source for long-term sustainable economic growth.
3. Endowing education, health, governance and citizen benefits required to
achieve these economic goals for all citizens including the rural population
that cannot be covered effectively using traditional brick and mortar
solutions.
4. Making available broadband services at affordable price-levels resulting in
a positive impact on the gross domestic product (GDP). Hence, the
subsequent economic structures are likely to attract new investment,
create jobs, and increase productivity through infrastructure build-up and
access to new and improved services.
VSNL
Tata Indicom
ACKNOWLEDGMENT
A Spanish missionary was visiting an island when he came across three
Aztec priests.
How do you pray? the missionary asked.
We have only one prayer, they answered. We say, God, you
are three, we are three. Have pity on us.
A beautiful prayer, said the missionary. But Ill teach you one
even better.
The padre taught them a prayer and then continued on his path
of evangelism. Years later, when he was returning to Spain, his ship
stopped again at the island. From the deck, the missionary saw the
three priests on the shore and waved to them.
Just then, the three men began to walk across the water toward
him.
Padre! Padre! cried one of them, approaching the ship. Teach
us again that prayer which God heeds. We have forgotten how it goes.
It doesnt matter, responded the missionary, witnessing the
miracle.
Similarly, a teacher is not the one who educates but one who can make the
students understand the magnitude of his teachings. A teacher is never petrified
to lead by example but also knows when to step back into the shadows and allow
the student to develop into his own persona and spirit. A teacher is always ready
to guide but is modest enough to listen to any silly idea his students put forth. We
are grateful that people who personify these virtues have guided us.
We are thankful to Mr. Praveen Sadalage (Senior Manager, Sales & Marketing,
VSNL, Pune), who gave us a free hand allowing us to learn from our mistakes.
We are also indebted to Ms. Priya Karkhanis and Mr. Amit Mudgal who
welcomed us to be a part of their team and learn the intricacies of customer
behavior.
We also appreciate the good humor of Mr. Amit Ghoshal who kept us perked up
and didnt mind when we made his cubicle our home. We also want to thank for
their warmth and support the front desk at VSNL who provided us with everything
and taught us how to take a photocopy as well as to make a cup of coffee.
We would also like to acknowledge the efforts and perseverance of Mrs. Sujata
Joshi, who has been instrumental in tutoring us with the fundamentals of
Marketing.
Finally, our heartfelt regards to the Placement team for gifting us this opportunity
to learn a great deal and make us feel a proud member of the Tata fraternity.
VSNL
Tata Indicom
Yamini Kale
Preetam Dey
Jitendra Khatri
Pulkit Bhatnagar
VSNL
Tata Indicom
CONTENTS
1. Executive Summary
05
2. About the company

2.1. VSNL
2.2. DishnetDSL
2.3. The Acquisition & Combined Synergies
07
11
13
3. The Broadband market

3.1. Global Broadband Scenario
3.2. Broadband In India
3.3. TRAI Recommendations for Broadband in India
15
16
17
4. Study of Channel Network

4.1. Introduction
4.2. Questionnaire Design
4.3. Methodology
4.4. Analysis and Recommendations
19
22
30
31
5. The Product Easy Surf

5.1. Why a new product?
5.2. Technical Specifications
5.3. Business Model
5.4. Service Level Agreements
40
41
42
46
6. Market research of potential consumers for Easy Surf

6.1. Methodology
6.2. Target market segment profile
6.3. Questionnaire Design
6.4. Summary of Feedback
6.5. Limitations
49
50
51
54
57
7. Observations, Analysis & Recommendations

7.1. Company Associate discord
7.2. Cost-Benefit Matrix for the consumer
7.3. Recommendations
59
60
62
8. Glossary
65
9. List of Figures
66
10. Bibliography and References
67
VSNL
Tata Indicom
EXECUTIVE SUMMARY
VSNLs new product Easy Surf envisages coalescing the advantageous features
of dial-up and dedicated port Internet into an affordable, prepaid, convenient,
broadband Internet access plan. This product is aimed at garnering the rapidly
growing market segment of dial-up users who want to upgrade to affordable
broadband alternatives. Essentially, the product will cater to the following three
broad categories of Internet users:
Residential Users.
Small Office Home Office (SOHOs).
Small & Medium Enterprises (SMEs).
The project was carried out in two phases:
Phase1:
Developing Strategies for Strengthening the Channel Network.
The first phase encompassed developing strategies for strengthening the
channel network. The major objectives under this were:
a. Understanding existing Channel Network.
b. Suggesting ways to improve performance of Channel Partners.
c. To identify prospects who could be potential Channel Partners.
Phase 2:
Cultivating prospective Channel Partners into Associates for the
Easy Surf plans.
The second phase encompassed cultivating the prospective channel partners
identified in Phase 1 into associates for the Easy Surf plans. The major
objectives under this were:
a. Interviewing the prospects and identifying how the product fits into their
business model.
b. Educating the prospects about the product both on the commercial and
technical aspects.
c. Handling objections of associate and suggesting a business proposition.
d. Obtaining feedback from the end customer of the service.
e. Suggesting improvements and projecting the future of the product
subsequent to analysis of feedbacks from both the ends.
The group decided to christen the project as Test Marketing for EasySurf, since
we have been a part of the VSNL team involved in test launching this product in
the Pune market. Depending on the success or failure of this test launch, the
management of VSNL will decide whether to continue with the existing product
offering or to take the product back to the drawing board and rethink upon the
techno-commercial aspects of the product.
VSNL
Tata Indicom
VSNL
Tata Indicom
VIDESH SANCHAR NIGAM LIMITED

VSNL was incorporated on April 1, 1986 under the Indian Companies Act, 1956
to take over the activities of the erstwhile Overseas Communication Services.
The company operates a network of earth stations, switches, submarine cable
systems, and value added service nodes to provide a range of basic and value
added services.
VSNL's main gateway centers are located at Mumbai, New Delhi, Kolkata and
Chennai. The international telecommunication circuits are derived via Intelsat
and Inmarsat satellites and wide band submarine cable systems e.g. FLAG,
SEA-ME-WE-2 and SEA-ME-WE-3.
The company's ADRs are listed on the New York Stock Exchange and its shares
are listed on major Stock Exchanges in India. The Indian Government owns
approximately 26% equity, M/s Panatone Finvest Limited as investing vehicle of
Tata Group owns 45% equity and the overseas holding (inclusive of FIIs, ADRs,
Foreign Banks) is approximately 13% as on 31 December 2002, the rest is
owned by Indian institutions and the public.
VSNL with its dedicated work force of about 2000 employees is committed to
providing efficient and cost effective world class telecommunications services.
Mission
Enriching life by enabling reliable and affordable communication
anytime, anywhere.
Vision
We will strive to be the preferred partner to our customers by providing
appropriate and cost-effective communication solutions.
The core values that VSNL believes in are:
Customer Delight
Excellence
Teamwork
Trust
VSNL
Tata Indicom
Healthy Competition
Employer of Choice
VSNL
Tata Indicom
Services Under VSNL
Wholesale Services
Corporate Services
Consumer Services
Wholesale Services
International Long Distance:
Perfected through long years of experience and expertise in international
connectivity, VSNL is on par with some of the best telecom networks in the
world through constant upgradation of technology.
VSNL offers International Direct Dialing (IDD) facility to 236 countries from
anywhere in India. VSNL handles approximately 9 million minutes of
international calls per day. This is through any of their 12 International
gateways, spread across the country.
National Long Distance:

VSNL has established its Points of Presence in 109 cities using
OFC / satellite media by January 2004. VSNL has already rolled out OFC
network across several states covering north, west & southern part of the
country. VSNL is carrying and delivering voice and data traffic
Fig 1.1
VSNLs International Switching Gateway
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VSNL
Tata Indicom
Corporate Services
IPLC: It is a high capacity, high speed digital circuit that provides a

combination of a variety of telecommunication applications, including the
transmission of digitized voice, high speed data, high speed fax and
graphics for video phones.
Internet Leased Line Service: It is a high-speed Internet solution for

organizations with large communication and Information requirements. It
provides effective Internet access tailor-made to specific needs from
anywhere in the world.
Managed Data Network Service (MDNS): The diverse and complex

communication requirements of today have created the need for a highly
efficient and intelligent wide area networking solution that runs
uninterruptedly at all times. To meet this growing need VSNL has a
Managed Data Network Service based on Frame Relay technology.
Frame Relay technology is a managed end-to-end solution that provides a
high performance integrated data network created to meet any
businesses' mission critical applications as well as the bandwidth on
demand that most 'bursty' data applications need.
Internet Protocol: Virtual Private Network Service (IP-VPN): It allows easy

connectivity between the associates, business partners or employees with
the corporate LAN on a highly reliable, robust, state-of-the-art
infrastructure and secured network.
Inmarsat (International Maritime Satellite Organization ): VSNL operates a

constellation of geo-stationary satellites designed to extend phone, fax
and data communications all over the world. The constellation comprises
five third-generation satellites backed up by four earlier satellites
Data Center Services: VSNL Internet Data Centers provide the physical
environment necessary to keep servers up and running 24 hours a day, 7
days a week.
Videoconferencing: VSNL systems operate under a variety of transport

technologies, including ISDN, Leased and IP based videoconferencing
systems that greatly decrease the costs of videoconferencing over
traditional telecom infrastructures.
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VSNL
Tata Indicom
Corporate Net Telephony: VSNL offers customized solutions to suit a

companys specific requirements. With perfectly scalable solutions, their
Corporate Internet Telephony services allow to enhance the internal
communication offerings. Their suites of Internet Telephony services for
corporates include Managed Corporate Internet Telephony, Non-Managed
Corporate Internet Telephony and CUG Calling.
Corporate Dial-up Solution: This unique solution helps to empower the

business employees, distributors to connect to the Internet using the very
cost effective dial up solution.
National Long Distance Leased Line (NLD LL): This is a high-speed

solution for enterprises with large communication requirements. NLD
leased line service is a dedicated point-to-point Bandwidth, solely
dedicated for the customer's business needs. Since the bandwidth is
totally dedicated to the customer, the service provides secure, reliable and
high-speed connectivity.
TV uplinking and broadcasting: VSNL provides TV uplinking and

broadcasting facilities to many prestigious television channels.
Consumer Services
The Internet was ushered in India by VSNL. Since then, they have offered
the consumer the best and fastest connections. Now with Tata Indicom,
VSNL is offering a whole gamut of affordable and reliable Internet services
to the consumer. Some of their services are as follows:
Tata Indicom: Total Internet
Tata Indicom: Net Telephony
Tata Indicom: Web Mail
Tata Indicom: Calling Cards
12
VSNL
Tata Indicom
DishnetDSL
Experience the full power of the net
DishnetDSL, used to be promoted by the Sterling Group of Companies, which

spanned a range of diverse business activities. Today the Sterling groups holds
investments in a wide range of technology driven industrial and commercial
activities.
The erstwhile DishnetDSL, was a national Internet Service Provider (ISP),
holding Category A License, headquartered in Chennai and operating through
its National Operating Centres (NOCs) & Point of Presence (POPs), across more
than 200 Towns and Cities.
Strategic Business Units of DishnetDSL:
Digital Subscribers Line (DSL) Division
HUB Centre Division
Enterprise Solutions and Services Division
Dial-up Division
VOIP (HelloWorld) International
ETH Division
Achievements of DishnetDSL:
FIRST to introduce DSL Services in India.
FIRST in path breaking, economical Dial-up plans.
FIRST to set up high quality, Internet browsing centres called DishnetDSL

Hub Centres, which has a presence of 133 centres in 56 cities.
FIRST to establish presence in over 38 cities along with Internet services

covering over 200 cities.
FIRST to achieve an enviable and growing Dial-up subscriber base.
FIRST and only to offer multiple Network Operations Centres with Data
Centre facilities.
FIRST to offer VOIP services (Hello World) without an Internet connection.
13
VSNL
Tata Indicom
Fig 1.2
All India Network
Operational
National Backbone
VSNL gateway
Satellite
14
VSNL
Tata Indicom
The Acquisition & Combined Synergies:

When Tata acquired a stake in VSNL, the objective was to integrate its basic and
cellular service with VSNL's long distance, international long distance and
Internet services.
In order to cater to the rapidly growing market of broadband Internet services,
VSNL management took a strategic decision to take over DishnetDSL. The
acquisition has not only reinforced its presence in the dial-up market, but also
added on to the technical and commercial prowess in the broadband services
arena.
The acquisition has transformed VSNL into a major broadband player. VSNLs
major handicap was that it did not have a broadband service. An inorganic
growth in this space made it ideal, and DishnetDSLs broadband assets are quite
impressive.
DishnetDSL is Indias largest broadband provider with a customer base of
36,000, of which 4,500 are corporate users. It also has 150,000 dial-up Internet
subscribers. Although the company does not officially disclose its broadband /
Internet revenues, it is estimated at Rs 180 crores.
With a huge customer base, the acquisition will propel the Tata Groups telecom
business into a different sphere. For instance, all fixed telephone line providers
are offering DSL as part of their telephone package.
Bharti Tele-services has been aggressive in this space and clearly has the lead.
Meanwhile, Reliance Infocomm is also looking at garnering major slice of the
broadband pie, so are players like MTNL and BSNL. So with all these
developments, the Dishnet deal is likely to transform VSNL into the leader in
broadband connectivity.
Broadband Internetonce considered a chimera in Indiais looking increasingly
real by the day. With a massive potential still waiting to be tapped, the Indian
broadband market is set for exponential growth. Research firm Gartner predicts
that by 2007 India will have close to 200,000 broadband consumers.
On the integration front, it looks even easier. Tata Tele-services already has an
agreement with DishnetDSL for network sharing. As per the agreement, Tata
Tele-services offers fixed-line services and provides co-location for DishnetDSL
to provide DSL services.
15
VSNL
Tata Indicom
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VSNL
Tata Indicom
Global Broadband scenario:

There are currently 57 million broadband subscriptions worldwide. North America
remains the biggest broadband market, amounting to 45% of revenues, followed
by Europe and Asia with 20% each. The growth rate for broadband varies from
region to region.
The global market can be characterized as high growth, with only Korea and
possibly Hong Kong having reached maturity. On the current growth trajectory,
many markets would also see penetration approaching or exceeding 50% within
5 years. For most customers, access speeds (downstream) are around
500kbit/s, with higher speeds (up to 8Mbit/s) becoming more widespread in the
most developed markets.
Global market for DSL and Cable Broadband has grown dramatically in the last
couple of years. With traditional phone revenues declining, cellular markets
saturating and telephone and cable companies looking for new sources of
growth; broadband revenues are becoming a strategic imperative in the
increasingly deregulated and competitive communications marketplace.
Strong broadband subscriber growth in all regions during the last year provides
further evidence that consumers desire high-speed access to the Internet.
Additionally, a highly competitive environment among broadband service
providers is benefiting consumers with attractive pricing and features. This is
particularly true in the Asia-Pacific market, which has some of the highest
broadband penetration in the world.
DSL continues to be the dominant technology in nearly two-thirds of the global
market. The Cable modem service continues to dominate only North America.
The pace of broadband growth in the US is being hampered by the cost.
Consumers are struggling to distinguish between high-speed Internet options.
While interest in high-speed services is still growing, dial-up consumers remain
highly price-sensitive.
The major applications that would fuel the consumers demand for broadband in
the near future and provide incumbent Telcos with renewed prospects to retain
valued customers are video, gaming, home networking and audio on demand.
With triple-play of voice, data and video available from one provider and
regulators globally, looking for Broadband-friendly policies, competition will soon
be intensifying further with lack of PC penetration becoming the only limitation
restricting a parabolic growth for Broadband.
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VSNL
Tata Indicom
Broadband In India:
Till 1998, the Government-owned VSNL had a monopoly in providing Internet
access services in India. The deregulation of the Indian Internet market began in
November 1998 when competition was allowed in providing Internet services.
However, VSNL retained a monopoly on the international gateway. In 2000, the
Government of India also allowed ISPs in India to own and operate their own
international gateways.
The Indian Broadband Era started late in 1999 when DSL / Cable Service were
introduced. Later in 2000, the market for Broadband picked up. Now in the fifth
year of services, though things are not all rosy but the market has been rapidly
expanding in numbers.
The overall growth of the ISP sector is likely to be catalysed by growth in PC
penetration rates and also a likely increase in access through the cable television
(TV) route.
Moreover, the demand for Internet services from both retail and corporate
customers is expected to grow, as the infrastructure improves, access costs
decline and awareness of the benefits of Internet use increases. The growth of
the broadband sector, combined with increased bandwidth availability and
declining costs of bandwidth, is expected to result in a sharp increase in data
traffic and in the demand for value-added services such as web hosting, virtual
private networks, and unified messaging, besides a host of broadband
applications.
"Broadband will change the face of India.

It will be used in the information sector, entertainment and e-governance
and will increase productivity."
Kishore Chaukar
Managing Director
Tata Industries
18
VSNL
Tata Indicom
TRAI Recommendations for Broadband in India:

The Telecom Regulatory Authority of India (TRAI) has recently released a set of
recommendations intended to boost adoption of the Internet and broadband in
India. The aim is to replicate the rapid growth in mobile phones in India. The
target is to have 40 million Internet connections and 20 million broadband
connections by 2010.
TRAI has asked for a reduction of customs duty on optic fiber cables and other
supporting equipments for broadband networks to 5 per cent, a five-year service
tax holiday for internet service providers and setting up of a group of ministers to
push e-governance in order to bring in a quantum jump in internet usage in the
country. The fixed line operators will have to specifically choose between the two
methods of unbundling shared unbundling and bit stream access. They also
have to suggest the terms and conditions like pricing for unbundling, which will
be reviewed by TRAI.
In simple words, local loop unbundling is the method as per which the owners of
the last mile copper (primarily the incumbent) are usually mandated to share their
infrastructure with other licensed service providers wanting to provide broadband
services. Under shared unbundling, competitive providers have access to either
voice or data portion of the line. Under bit stream access, the local loop operator
installs high-speed access links to its customers and allows competitive providers
access to this link.
The regulator has broadly identified eleven main hurdles to growth that need to
be addressed like high price for broadband, high cost of equipment, high taxes
and duties, lack of locally relevant content among others. Prices for broadband
in India are 1200 times higher than in Korea, said TRAI chairman Pradip Baijal.
Broadband has been defined as an always-on data connection with 256 kilo bits
per second of data rate.
In order to increase broadband penetration via very small aperture satellites and
direct-to-home, Trai has suggested open sky policy, removal of various
restrictions on size of antenna and throughput. It has also suggested reductions
in license and spectrum fees. Moreover, the authority has called for delicensing
of spectrum bands used for wireless broadband technologies like Wi-Fi and
WiMax.
By 2010, the Authority expects the total number of Internet subscribers to jump to
40 million, which would translate, into a penetration level of 3.4 per cent from the
existing 0.4 per cent, in the country. If the Centre accepted these
recommendations on accelerating growth of internet and broadband penetration
in the country, the rates for internet usage would come down to Rs 300 to 400
per month per subscriber from the current Rs 700.
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VSNL
Tata Indicom
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VSNL
Tata Indicom
Introduction
With the government looking at an exponential growth in the number of Internet
and Broadband subscribers and targeting a figure of 40 million Internet users
with half of them preferring Broadband by 2010, the ISP market never had it so
good. But these huge figures cannot be achieved at the current growth without
increasing substantially the level of PC penetration in India. Other important
avenues to be looked at are the government regulations and policies.
However, these two factors are beyond the purview of the different Internet
Service Providers. What is definitely within the scope of the various ISPs existing
today is strategic partnerships and establishing distribution channels, which
optimise the value of the ISPs.
DishnetDSL (now VSNL) has recognised the importance of the channel network
and insists that for the company, it is more suitable and apt to term the channel
partners as part of a growing value network.
A value network is a system of partnerships and alliances that VSNL builds to
source, augment, and deliver its offerings. Channel network establishment
decisions are among the most critical decisions facing management. The
channel chosen intimately affects all other marketing decisions.
The companys pricing depends on what will be acceptable to the channel
partner. The firms sales force and advertising decisions depend on how much
training and motivation partners might need. Also, these decisions involve
relatively long term commitments. VSNL, with its constant evolving market
offerings, is now beginning to focus on how to optimize the relationships.
A new firm typically starts as a local operation selling in a limited market, using
existing intermediaries willing to work with the company. The number of
intermediaries in any local market is apt to be limited: some direct sales agents, a
few wholesalers, several established retailers, and if need be, some
transportation and warehousing partners.
Deciding on the best channels might not be a problem. The problem might be to
convince the available intermediaries to handle the firms product line.
On the other hand, if a firm is successful, it might branch into new markets. It
might have to use different channels in different markets. In smaller markets, the
firm might sell directly to the end customers or involve retailers, whereas in a
larger market, it might sell through distributors.
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VSNL
Tata Indicom
In managing the channel partners, the firm must decide how much effort to
devote to push versus pull marketing.
A push strategy involves the company using its sales force and trade promotion
finances to induce intermediaries to carry, promote, and sell the product to end
customers. Push strategy is appropriate where there is low brand loyalty, or
brand choices are made in stores, or the product is an impulse item and product
benefits are well understood.
A pull strategy involves the company using advertising and promotion to induce
customers to ask channel partners for the product, thus inducing the partners to
gauge the market demand and hence to order it. Pull strategy is appropriate
when there is high brand loyalty and customer involvement, or when people
perceive differences between brands or when people decide their purchases
before making the trip to the store.
Channel partners are expected to be a part of the VSNL family by assuming
responsibility for performing a number of key functions:
Gather information about potential and current customers, competitors,

and other factors and forces in the marketing environment.
Develop and disseminate persuasive communications to stimulate

purchasing.
Reach agreements on price and other terms so that transfer of ownership

or possession can be affected smoothly.
Place orders with the company.
Acquire the funds to finance inventories at different levels of the value

chain.
Assume risks connected with carrying out channel work.
Provide for the successive storage and movement of the physical

equipment or products.
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VSNL
Tata Indicom
Fig. 4.1
Value Added versus Costs of Different Channels

High
Sales Force
Partners
Retailers
Value Added
per Sale
Direct Sales
Channels
Tele-mktng
Indirect
Channels
Internet
Direct Marketing
Channels
Low
High
Low
Cost Per Transaction
Among the different options available for VSNL to market and distribute its
products to the end customer are the ones represented in the diagram above. As
manifested, if the cost per transaction involved to the company is low (eg.
through the net), the value added for a sale in terms of marketing or persuasion
is also low. A customer might not like the product and there might not be another
opportunity to evince interest in him by the company through another strategy,
hence, losing a valuable customer. On the other end of the spectrum, are the
direct sales team. The costs incurred for each sale increase depending on the
frequency of visits required to convince a potential client, the transportation and
daily allowances as well as the salaries given etc. However, the chances of a
client jumping onto the buyer-roster improve tremendously as well as the number
of products that he might choose finally. Hence, this channel is one that VSNL
emphasizes on continuously.
One channel that VSNL is currently working to improve is establishing more
channel partners who have a good knowledge about the area they operate in as
well as have a reasonable influencing capability in their business areas.
To understand the requirements of potential channel partners as well as
recognize the needs of the existing channel partners formed the first part of our
project. It was imperative to carry out a market research to visualize the need for
the new product offering by VSNL as well as gauge the acceptance for the new
product by new channel partners. Hence the respondents selected and the
questionnaire designed included a comprehensive layout of questions to facilitate
the company to select with whom it wanted to establish close relationships.
One set of questions was prepared for the existing partners and another simpler
set designed to pick probable newcomers. The questionnaires, the subsequent
analysis and recommendations are discussed in the forthcoming pages.
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VSNL
Tata Indicom
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VSNL
Tata Indicom
QUESTIONNAIRE LAYOUT Potential Channel Partners

RESPONDENT PROFILE
NAME:
___________________________________
AGE: ____________________
ADDRESS: __________________________________________________________________
PHONE: _____________________________________________________________________
1)
Can you tell us your annual income and your customer base?
Income (Yearly in Lakhs)
<5
5-10
10-15
15-20
20-25
25-30
> 30
Business Customer Base

0-50
51-100
101-150
151-200
201-250
251-300
301-350
351-400
>400
2)
3)
01
02
03
04
05
06
07
08
09
What type of business operations are you involved in?

Computer Hardware Vendor
1
Computer Maintenance Services
Computer Networking Services
2
Software Solutions/ Web Solutions
Others:
3
4
Who are your major customers ?

i) Corporate / Big Enterprises.
ii) Small / Medium Enterprises.
iii) Small Offices / Home Offices.
iv) Residential Customers.
DSL CONCEPT
4)
Are you aware of Digital Subscriber Lines (DSL) or Cable Internet?

Yes
No
(Explain concept, if necessary, then ask Q6.)
5)
Could you please tell me what you know about Cable Internet?
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
6)
Which features do you like about Cable Internet ?

Always-on connectivity.
25
VSNL
Tata Indicom
Higher speeds.
Economical.
Dedicated bandwidth.
Number of service plans.
Quality of Service.
Others (Please specify).
7)
2
3
4
5
6
7
How do you like the concept of DSL?

|-----------------------|---------------------|---------------------|---------------------|
Very Good (5)
8)
Good (4)
Fair (3)
Poor (2)
Very Poor (1)
Why do you say so?

(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
9)
After understanding the product, how likely are you to try it?
|-----------------------|---------------------|---------------------|---------------------|
Very Likely (5)
Likely (4)
Maybe (3)
Less Likely (2)
Not Likely (1)
10) Which DSL operators / Cable Internet providers are you aware of?
DishnetDSL
Hathway
Iqara
Silicon Mountains
ICC Cables
Satyam Broadband
Others:
INTERNET USAGE
11) What is the average monthly
___________________________
expense
of
your
customers
on
the
Internet?
12) For how long do your customers access the Internet per week on an average?
<30 minutes
1
-1 hour
2
1-3 hour
3
3-5 hour
4
5-7 hour
5
> 7 hour
6
13) How many people buy Internet connections from you per month ?
<10
11-25
26-50
51-75
75-100
>100
1
2
3
4
5
6
14) Which Internet Service Provider (ISP) do you normally recommend?
26
VSNL
Tata Indicom
DishnetDSL
VSNL
BSNL
Sify
Iqara
Others
1
2
3
4
5
6
15) Can you suggest ways to improve market presence of Broadband in residential areas?
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
RESPONDENTS PROMOTIONAL PREFERENCES

16) Do you think Advertising and Promotions have any impact on sales of a product?
Yes
No
17)
Please rank from 1-8 (1 being highest), the following promotional activities that can be
adopted by an Internet Service Provider to increase market presence.
TV advertisements
Newspaper Ads
Hoardings
Glow signboards
Banners { Plastic, Cloth, Laminated }
Posters
Kiosks
POP display material
18) Please rank from 1-7 (1 being highest) the factors which are responsible for a customer to buy
Internet connections.
Promotional activities
Higher Speeds
Always-On connectivity
Price
Brand name
Quality of Service
Bundling with other products
19) Please specify which newspapers and magazines do you read regularly ?
Business Standard
Dainik Jagaran
Financial Express
Hindustan Times
Indian Express
Lokmat
Newspapers
01
Lok Satta
02
Saamna
03
Sakal
04
The Economic Times
05
The Times of India
06
Others
07
08
09
10
11
12
Business India
Magazines
01
Outlook
08
27
VSNL
Business Today
Business World
Dataquest
India Today
Filmfare
Sport star
Tata Indicom
02
03
04
05
06
07
20) Please specify which sites do you visit most often?

Hotmail.com
Rediff.com
Indiatimes.com
Yahoo.com
Google.com
Others, specify
PC World
PC Quest
Chip
Auto Car
Auto India
Others
09
10
11
12
13
14
Altavista.com
Sharekhan.com
Indiainfoline.com
Bazee.com
Sify.com
THANK YOU FOR YOUR CO-OPERATION
28
VSNL
Tata Indicom
QUESTIONNAIRE LAYOUT Existing Channel Partners

RESPONDENT PROFILE
NAME:
___________________________________
AGE: ____________________
ADDRESS: __________________________________________________________________
PHONE: _____________________________________________________________________
21) Can you tell us your annual income and your customer base?
<5
5-10
10-15
15-20
Income (Yearly in Lakhs)
20-25
25-30
> 30
Business Customer Base

1
0-50
51-100
101-150
151-200
201-250
251-300
301-350
351-400
>400
01
02
03
04
05
06
07
08
09
22) What type of business operations are you involved in?

Computer Hardware Vendor
1
Computer Maintenance Services
Computer Networking Services
2
Software Solutions/ Web Solutions
Others:
3
4
23) Who are your major customers ?

i) Corporate / Big Enterprises.
ii) Small / Medium Enterprises.
iii) SOHOs.
iv) Residential Customers.
INTERNET USAGE
24)
What is the average monthly

___________________________
expense
of
your
customers
on
the
Internet?
25) For how long do your customers access the Internet per week on an average?
<30 minutes
1
-1 hour
2
1-3 hour
3
3-5 hour
4
5-7 hour
5
> 7 hour
6
29
VSNL
Tata Indicom
26) How many people buy Internet connections from you per month ?
<10
11-25
26-50
51-75
75-100
>100
1
2
3
4
5
6
27) Which Internet Service Provider (ISP) do you normally recommend?

DishnetDSL
VSNL
BSNL
Sify
Iqara
Others
1
2
3
4
5
6
28) Can you suggest ways to improve market presence of Broadband in residential areas?
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
CHANNEL PARTNER PREFERENCES

29) What is your revenue contribution to DishnetDSL per Quarter?
30,000-60,000
3,00,000-5,00,000
60,000-90,000
5,00,000-7,00,000
90,000-1,20,000
7,00,000-9,00,000
1,20,000-1,50,000
9,00,000-11,00,000
1,50,000-3,00,000
>11,00,000
30) What sort of sales people or sales executives do you employ?
Technically Qualified.
Past Experience.
Persuasion Ability.
Others.
31) How many sales staff do you have for DishnetDSL products?
________________________
32) Do you think your sales staff can support you better?
Yes
No
33) If yes, how would you like DishnetDSL [ VSNL ] to help you?
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
34) Are you happy with the availability, technical features and prices of Internet offers based on
DSL?
30
VSNL
Tata Indicom
Parameter
Availability
Technical Characteristics
Prices
Yes
No
35) How does DishnetDSL [ VSNL ] add value to your enterprise / business?
i) Improved Profit Margins.
ii) Increased Product Portfolio.
iii) Product Bundling.
iv) Others:
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
36) Please rank from 1-7 (1 being highest), what you think is the most selling feature of
DishnetDSL?
Always-on connectivity.
Higher speeds.
Economical.
Dedicated bandwidth.
Number of service plans.
Quality of Service.
References
37) What measures DishnetDSL should take to motivate channel partners to boost its sales?
i) More incentives/ Schemes.
ii) Better commissions.
iii) Better training.
iv) Others:
(Verbatim)_________________________________________________________________________
____________________________________________________________________________________
(Translation)_______________________________________________________________________
38) Which value-added services do you feel should be provided with the DSL connection?
Web-Hosting
E-mail Addresses
Video and Audio Conferencing
Others:
Domain Name
Virtual Private Networks (VPN)
Server Co-Location
39) In your opinion, what do you think would prevent or discourage customers from switching
one operator or service provider to another?
i) Lower prices.
ii) Better Customer Support.
iii) Better speeds / QoS.
iv) Acquisition by Tata VSNL.
v) Others:
(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
40) Do you feel you have clear information on offers from DishnetDSL?
31
VSNL
Tata Indicom
Yes
No
41) If No, what would you like more information on?

(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
42) Do you feel that VSNLs takeover of DishnetDSL will improve your business?
|------------------------|--------------------------|-------------------------|
Very Much (4)
A Little (3)
May be (2)
Cant Say (1)
43) Are your customers satisfied with the performance of DishnetDSL?
Yes:
No:
44) If no, what are their frequent complaints?
i) Lower Speeds than promised.
ii) Frequent Disconnections.
iii) Lack of Onsite Maintenance.
iv) Unsatisfactory Customer Care response.
v) Others:____________________________________________________________________________
45) What are the things you dislike about DishnetDSL ?
i) Commission related complaints.
ii) Unsatisfactory customer care.
iii) Lack of Technical Support.
iv) High Upfront Cost.
v) Others: ____________________________________________________________________________
46) Please suggest how DishnetDSL can improve on the shortcomings you have pointed out?
(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
47) Are you satisfied with the commission structure offered by DishnetDSL?
Yes
No
48) If no, why?
(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
49) Do you have any specific complaints regarding commissions given?
i) Delayed payoffs
ii) Incorrect slab structures
iii) Unnecessary paperwork
iv) Others:
(Verbatim)_________________________________________________________________________
___________________________________________________________________________________
(Translation)_______________________________________________________________________
32
VSNL
Tata Indicom
RESPONDENTS PROMOTIONAL PREFERENCES

50) Do you think Advertising and Promotions have any impact on sales of a product?
Yes
No
51) Please rank from 1-6 (1 being highest) the factors which are responsible for a customer to buy
DishnetDSL connections.
Promotional activities
Higher Speeds
Always-On connectivity
Brand name
Quality of Service
Bundling with other products
52) Please rank from 1-8 (1 being highest) the following promotional activities that DishnetDSL
can adopt to increase market presence.
TV advertisements
Newspaper Ads
Hoardings
Glow signboards
Banners { Plastic, Cloth, Laminated }
Posters
Kiosks
Point Of Purchase (PoP) material
33
VSNL
Tata Indicom
53) Please specify which newspapers and magazines do you read regularly ?
Business Standard
Danik Jagaran
Financial Express
Hindustan Times
Indian Express
Lokmat
Newspapers
01
Lok Satta
02
Saamna
03
Sakal
04
The Economic Times
05
The Times of India
06
Others
Business India
Business Today
Business World
Dataquest
India Today
Filmfare
Sport star
01
02
03
04
05
06
07
Magazines
Outlook
PC World
PC Quest
Chip
Auto Car
Auto India
Others
07
08
09
10
11
12
08
09
10
11
12
13
14
54) Could you please tell me which sites do you visit most often?
Hotmail.com
Rediff.com
Indiatimes.com
Yahoo.com
Google.com
Others, specify
Altavista.com
Sharekhan.com
Indiainfoline.com
Bazee.com
Sify.com
THANK YOU FOR YOUR CO-OPERATION
34
VSNL
Tata Indicom
METHODOLOGY ADOPTED
It is imperative that before commencing on a market research, that you formulate
a strategy about how to approach the entire procedure from conceptualization to
follow-up. Hence, the formation of objectives for the market research becomes
important. Equally vital are the segmentation of the available market and
selection of a target customer base.
Here, as described earlier, the primary objective of the first phase of the project
was to study and understand the views of existing channel partners and to select
a number of potential channel partners.
Since, the new product demanded that knowledge of the local area of the
channel partner be high, Pune was segmented into seven zones to facilitate the
further research and analysis.
Also, computer hardware and maintenance vendors along with networking
experts form an influential set whose advice end-users seek before buying a new
Internet connection, thus making this set a perfect group to make channel
partners. Hence, the questionnaire focuses on them and their likes and dislikes.
A detailed list of the computer vendors along with their addresses and phone
numbers was compiled using sites like punediary.com, and indiabizclub.com.
The modus operandi used to contact these vendors was two-fold. The first
method involved calling them up and requesting for appointments or conducting
a quick telephonic survey about their awareness of DSL and broadband internet.
The second method was making direct cold-calls. This was a better alternative
because it allowed us to touch a larger number of respondents in a shorter
duration of time.
One hundred respondents were covered for determining the most prospective
channel partners. Twenty four dealers and DTOs were contacted for obtaining
feedback vis--vis DishnetDSL and VSNL.
A part of the questionnaire also delved into the marketing and promotional aspect
as well so that recommendations about the promotional strategy for the company
could also be simultaneously detailed.
35
VSNL
Tata Indicom
ANALYSIS & RECOMMENDATIONS:

The major thrust of the market research was concentrated towards the Peth
areas in Pune because these were the vendors who had either an established
customer base throughout the city being operational for a long time, or were quite
new to the business and hence looking for new strategic ways to make their
operations more lucrative.
Kondhwa,
East Street,
MG Road
Bibewadi,
Pune-Satara
Road,
Timber Market
Hingne,
Ganeshnagar,
Karve Road,
Paud Road
Peths
Kirkee,
Dapodi
JM Road,
FC Road
Model Colony,
Aundh
Fig 4.2
Segmentation of Pune
39 % of the prospective partners confirmed that the have a loyal customer base
between 51 and 100 who usually make purchases or take decisions after
consulting them. Bigger outlets in the city area also said that despite a fixed set
of customers there is also a large number of drifting customers who need to be
targeted as well.
36
VSNL
Tata Indicom
Fig 4.4
Annual Turnover
The outer circle represents the potential partner base while the inner circle
represents the existing channel partners. 20 % of the people contacted had an
annual income in the bracket of 5 10 lakhs.
The major computer vendors reported a much higher figure than the above 30
lakh segment that we had mentioned. Significantly, this segment has been so far
targeted by DishnetDSL and it would be a wise strategy to continue with the
same target segment.
Fig 4.5
Business Operations
The pie on the left depicts the business operations of the existing partners and
the right pie details the operations of possible partners. There is a striking
37
VSNL
Tata Indicom
similarity between both which is indicative that the approach adopted by

DishnetDSL can be continued with even after the acquisition by VSNL.
Fig 4.6
Customer Segments
With the new product offering by VSNL, the SOHO and residential segment
become increasingly attractive and an immediate target. Also, Small and Medium
Scale Enterprises can be tackled on a case-by-case basis. With need-based
offerings and Value for Money packages, it will be very easy to convince those
who are looking at a national or international presence through the internet while
keeping capital expenditure and operational expenses minimal to upgrade from
Dial-up to affordable Broadband.
Fig 4.7
ISP recommended by Existing Partners
38
VSNL
Tata Indicom
The two charts shown present the recommended ISPs by the existing channel
partners, with VSNL and DishnetDSL having pride of place, and the awareness
of Cable Internet or DSL operators by prospective partners 86% claim to know
that they know about DishnetDSL though there is only a 71% awareness level
about DSL technology. This is representative of the fact that with increased and
sustained awareness campaigns highlighting the advantages of DSL over dialup, the subscriber base can increase significantly. This is corroborated in the
following chart where the likelihood of people getting a low price broadband
connection was enquired.
Fig 4.9
Willingness to try Broadband Services
The parameters which everyone was happy about as an improvement over dialup were the high speeds and the always-on connectivity. These results were also
in sync with the results of a question where seven parameters were to be ranked
according to their influencing ability on the decision of buying a net connection.
Price was the primary concern for 60% respondents while approximately the
same number plumped for higher speeds and better connectivity.
93% respondents felt that promotional activities are important in generating
awareness about a product but hardly two-fifths mentioned that it could be the
sole criteria for a purchase decision. This complements global trends about the
39
VSNL
Tata Indicom
age of the informed-buyer who makes rational decisions after comparing all
offerings in the market. This is good news for the company as they can focus on
Value Added Services and Feature-specific promotional campaigns.
Fig 4.12
Newspaper Choices
Newspaper advertising as well as outdoor media campaigns found a large

number of takers. 31% were regular readers of The Times of India while 24%
read Indian Express. 28% respondents were also avid vernacular paper readers.
However, we feel that instead of advertising in newspapers and hoardings
throughout the city, a more effective campaign will be a three-tier approach.
With the recent ban on tobacco advertising, a large fleet of state transport
buses are looking for advertisers. This will be a boost to the current media
strategy of using localised hoardings as the buses travel throughout the city
and the visibility of the company will improve multi-fold even if the buses are
stuck in traffic.
Fliers can be inserted in newspapers of localities which are technically
feasible. This will ensure a 100% penetration into households as every family
subscribes to one newspaper. Additionally, people have a tendency to glance
at least once on fliers or pamphlets before discarding while newspaper
advertising may not be very effective locally. Also, the details of the local
channel partners can be included to increase their visibility as well as act as a
motivational factor for them.
40
VSNL
Tata Indicom
The third phase should include a media blitz like road-shows or

demonstration kiosks at Dishnet hubs or franchisee cafes in the areas where
there are more enquiries after phases one and two.
The part of the questionnaire about the channel partners preferences evoked the
strongest reactions from all the respondents we had for the existing Channel
Partner survey. Everyone was unanimous that the company should have regular
feedback sessions even if they were only twice in a quarter. In fact, three-fifths
felt that lack of interaction was a major de-motivating factor for them even though
above 40% respondents had contributions of greater than one lakh per quarter.
Fig 4.13
Contribution per Quarter
However, these contributions can be enhanced considerably, if channel partners

were asked to focus the efforts of even one member of their team towards VSNL
products. 50% had replied that they dont have even a single person looking after
VSNLs portfolio. A primary reason for this was the absence of any kind of
training program by the company on the marketing or technical methodologies to
be applied. Three-fourths of the respondents would prefer better marketing and
end-customer support.
41
VSNL
Tata Indicom
Fig 4.14
Fig 4.15
Number of Sales Staff
Motivational Factors
40% of the respondents did not mind better commissions or other incentives
while 33% were satisfied with only improvement in the training support given to
help motivate themselves and their teams.
Fig 4.16
Strategies for Reducing Customer Churn
60% of the customers of existing channel partners were satisfied with their net
connections though one-fourth of the total felt that to reduce customer churn,
better customer care and a small reduction in prices need to be implemented.
This might be a viable proposition to the company considering the new product
offering and VSNL taking over DishnetDSL was observed by 50% of the
42
VSNL
Tata Indicom
respondents. Also, a number of answers suggested that the company was not
advertising its other Value Added Services and hence losing out on a profitable
source of recurring revenue.
Fig 4.17
Channel Partner Put-Offs
Almost the entire sample size had at least one grouse against the company and
a majority of it was directed towards an unfriendly customer support system.
There were instances recounted when people were turned away even from the
office. Surprisingly, the commission related complaints were not due to an
incorrect slab structure but due to unnecessary delays in the final pay-offs.
43
VSNL
Tata Indicom
44
VSNL
Tata Indicom
Why a new product?

The Internet revolution in India has been pioneered by VSNL. VSNL was the first
Indian company to offer a gamut of Internet services catering to all the segments
of the market. The flagship service offered by the company has been dial-up
Internet access over the existing PSTN network. The company boasts of a
subscriber base of more than 750,000 customers for its dial-up service alone.
The global trends for the ISP market indicate that low-end Internet users are
demanding better services both in terms of download speed and quality of
connection. The product Easy Surf was designed to bridge the large gap existing
between the market for dial-up and broadband. It aims to provide the best of both
worlds to the end customer.
The following classification will explicate the product proposition better:
Cost of Installation
Cost of Internet (per hour)
Download Speed
Quality of Connection
Billing / Tariff Structure
Traffic Limit
Phone Bill
Dial
Low
High
Low
Low
Prepaid
None
Applicable
Dedicated
High
High
High
High
Postpaid
Exists
Not Applicable
Easy Surf
Moderate
Low
Moderate
High
Prepaid
None
Not Applicable
100%
Customer Base
90%
80%
Dedicated Ports
70%
60%
Market GAP
50%
40%
30%
Dial Subscribers
20%
10%
0%
2003
Fig 5.1
2004
2005
2006
2007
Projections for the ISP market in India
45
VSNL
Tata Indicom
Technical specifications
Globally DSL works on the co-location model, where the ISP or the DSL provider
will deploy DSLAM (digital subscriber line access multiplexer) boxes. One
DSLAM box can provide DSL connectivity to a radius of 2.5 kilometers. The
advantage in the co-location method is that it frees the telephone line and splits
data and voice - this is the core USP of a DSL connection. But in India, when
DishnetDSL started out, telecom was still a government monopoly and
co-location was an unheard term. But DishnetDSL tried forging a deal, though
unsuccessfully, with BSNL. With these realities, DishnetDSL started offering DSL
services based on the Multi Dwelling Unit (MDU) model. Here, the DSLAM is
based in a building and from there, close to 50 subscribers are serviced.
The following diagram illustrates the network layout for providing EasySurf
broadband connections:
Fig 5.2
Network Layout for EasySurf Connections
A 512 Kbps dedicated copper cable is laid from the nearest DSLAM to the
customer premises. The technology used for this connection is DSL over copper.
The dedicated bandwidth is then fed into a router, which is thereafter connected
to a switch by means of a CAT5 cable. From the switch onwards, the network is a
10baseT Ethernet network (commonly known as LAN connect) over a CAT5 /
CAT6 media. The switch serves the purpose of distributing the bandwidth over 16
40 users depending on the kind of switch. The CAT5 / CAT6 cables derived
from the switch terminate in RJ45 jacks, which can be directly plugged into the
NIC (Network Interface Card) of the users computer. The network up to the
router is owned and maintained by VSNL. Thereafter, switch onwards, the
network is owned and maintained by the Associate. The technical limitations of
an Ethernet network permit the maximum loop distance of 100 mts in case of
CAT5 cable and 200mts in case of CAT6 cabling.
46
VSNL
Tata Indicom
Business model
VSNLs strategy is a combination of push and pull. The following prepaid tariff
plans are to be launched by VSNL:
Pre-paid Residential plans
Plan
Bandwidth (Kbps)
Usage
512 (shared
bandwidth)
512 (shared
bandwidth)
512 (shared
bandwidth)
512 (shared
bandwidth)
10 hours
25 hours
50 hours
100 hours
10 hours
MRP
(Rs.)*
149/-
Validity
1 month
25 hours
299/-
1 month
50 hours
499/-
1 month
100 hours
699/-
1 month
* Inclusive of service tax
Detailed Plan Specifications

1. Number of E-mail Ids allowed with every plan in the table above.
2. Static IP - not allowed.
3. Traffic limit - Unlimited.
4. The MRP is inclusive of Service Tax.
5. At the time of registration customers will have to pay additional Rs 150/- on
account of PPPOE driver installation charges (one-time charges). Please
note that if the end customer has Windows XP the associate need not install
the PPPOE software since the OS already has an in built PPPOE driver. In
this case alone, the associate need not collect the software installation
charges of Rs 150/- from the customer.
6. No carry forward of unutilized usage is allowed.
7. Customers will have to make the requisite payment in Cash directly in favor of
VSNL - this is for First time registration as well as Renewals.
47
VSNL
Tata Indicom
Fig 5.3
Key Deliverables:
VSNL
Brand
VSNL
Marketin
g
Support
Technic
al
Support
Bandwid
th
ASSOCIATE
LAN
Cabling
LAN
Setup
Trouble
shooting
Prepaid
Cards
The EasySurf Experience

Deliverables of VSNL
Supply DSL Router.

Provision bandwidth of 512 Kbps.
Provide PPPoE client software to the associate for installation at customers
premises.
Technical and marketing support to the associate.
Deliverables of ASSOCIATE
Identify potential buildings, societies and complexes with PC owning units.

Obtain building permissions for cabling these complexes.
Sell the prepaid plans by acquiring new subscribers and by ensuring timely
renewals.
Do necessary cabling; install equipments for providing Internet connectivity to
the residential user (this includes installation of the NIC card at the
associates cost and PPPOE client software at the customers premises).
Power and maintenance of the DSL router, switch and other accessories.
Provide necessary customer support and service.
Pay an installation charge (non-refundable amount) of Rs.15, 000/- per DSL
router.
48
VSNL
Tata Indicom
Fig 5.4
Flow of Returns
VSNL
Installatio
n
Charges
Recharg
e
Revenu
es
Custom
er
Feedbac
k
Establishe
d
Market
ASSOCIATE
Installatio
n
Charges
Recharg
e
Revenu
es
Loyalty
Points
Business
Opportunit
y
END CUSTOMER
Revenues realized
By the Associate
By the company
30% commission on the one-time
Port deployment cost of Rs.16200/-.
subscription charges.
30% commission on subsequent
70% of the one-time subscription
renewals.
charges paid by the end user.
Installation charges for setting up the
70% on the successive renewals done
LAN connect.
by the customer.
Intangible Returns
To the Associate
To the company
An opportunity to become a part of the Easy market penetration. Thereby,
largest ISP brand in the country.
enabling high growth of customer base
and market share
Value added service/ add-ons for the
Better knowledge of the local market
existing customer base
Business opportunity for bundling
Market intelligence is gathered
hardware peripherals, UPS systems,
automatically under the system of
AMC etc with the product.
surveying end customers
49
VSNL
Tata Indicom
Revenue Model:
Videsh Sanchar Nigam Limited

1st Floor, One Phyre Road, SM Joshi Hindi School premises,
Next to Jagtap Nursery, Near Golibar Maidan, Pune 411 040
Ph: 26305100/ 30/ 31
Client
Address
Item
Installation
Switch
Cabling
UPS
Total cost
Subjeev Business Centre

East Street Galleria, East Street,
Pune 01
Date
Cost of Deployment per Router providing 14 connects

Description
Amount
Router installation carried out by VSNL
Rs.16,200.00
Associate has to procure the switch (Dlink 16 Port) Rs. 3,000.00
Associate has to carry out the cabling
Labor @ Rs, 3/mt
Rs.
3.00
Casing & Capping @ Rs. 5/mt
Rs.
5.00
Drilling & Fitting @ Rs. 5/mt
Rs.
5.00
Cable Cost @ Rs. 8/mt
Rs.
8.00
Total @ 20mt x 14 connects
Rs. 5,880.00
Associate has to procure UPS (500 VA)
Rs. 2,000.00
Rs.27,080.00
June 4, 2004
(A)
Connectivity cost to be borne by the customer

Rs. 1,500.00
Total cost recovered from customer (@ 14 customers per router) Rs.21,000.00
(B)
Net Investment per router
Rs. 6,080.00
(A - B)
Monthly Revenues Per Router
Renewal
Net
Month
Subscription Charges (649x16)
(499x16)
Commission
Cumulative
Jul-04 Rs.
10,384.00
Rs.
Rs. 3,115.20 Rs. 3,115.20
Aug-04 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs. 5,510.40
Sep-04 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs. 7,905.60
Oct-04 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.10,300.80
Nov-04 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.12,696.00
Dec-04 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.15,091.20
Jan-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.17,486.40
Feb-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.19,881.60
Mar-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.22,276.80
Apr-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.24,672.00
May-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.27,067.20
Jun-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.29,462.40
Jul-05 Rs.
Rs. 7,984.00 Rs. 2,395.20 Rs.31,857.60
Bottom line
Net Revenues per router Rs. 31,857.60
At the end of year 1, the net profit per router Rs. 25,777.60
* The costs of switch, cabling & UPS are estimates based on current market prices
50
VSNL
Tata Indicom
Service level agreements

1. Flat 30% margin to be given to the associate for sale of any Pre-paid plan
proposed above.
2. The associate will have the flexibility to charge any amount of registration
fees from the customer. VSNL will not receive any revenue share on the
registration amount collected by the associate.
3. The associate will pay an installation charge (Non refundable amount) of
Rs 15,000/- per DSL router.
4. A total of 40 customers will be allowed Internet access per Router. Hence,
assuming that 40% of the customers are Online at the same time i.e. 16
customers, each customer will avail at least 32 kbps bandwidth.
5. The associate will sell & operate within a fixed geography, which will be
agreed between VSNL & the associate before agreement signing.
6. The associate will be eligible for all sales contests involving other channel
partners as launched by VSNL from time to time.
The product will be launched with the existing process whereby for a first time
registration the associate will submit to VSNL the Customers payment along
with the application form.
The settlement between VSNL & the associate will be done on a periodic basis.
Please note that only in case of Renewals, the associate may send the details of
the customer i.e. customer login id and the plan id for renewals, without having to
pay at the time of renewals.
Once the renewal is done at VSNL end, the associate will have to submit the
payments within 24 hours of requesting for renewals.
51
VSNL
Tata Indicom
Other plan details:

1. Customers can choose to renew with any plan at any given point in time. The
following situations can arise on renewals:
Customer buying a starter kit of 25 hours on 1st January and on 20th

January when he still has 2 unutilized hours he applies for renewal with
another 25 hours plan.
Result- Customer after renewal in the system will have 27 hours of

usage in his account i.e. 2 hours of unutilized usage + 25 hours of newly
purchased renewal plan. His validity will now be 30 days from the date of
renewal in the system i.e. if the system renews the customer, say on 21 st
January, his new validity will now be 30 days from 21 st January.
2. Any downtime due to failure within VSNL network i.e. up to the ADSL router
will be credited to the account of the customer in the following way
Downtime less than 8 hours- No credit
Downtime between 8 hours- 24 hours- 1-day credit added to validity

period.
Downtime between 24 hours- 48 hours- 2 days credit added to

validity period and so on i.e. for every incremental downtime of 24 hours,
the customers gets 1 day of additional credit.
Please note that in the above, customer will have to register the complaint
with VSNL and any downtime due to associate network failure will not be
counted as downtime. The credits will be tracked and applied manually by
CC/B&C personnel (to be decided on which department will handle the
credits).
3. Customers not renewing their account will still be shown as registered and
provisioned into the system i.e. customers can renew with the same Login Id
at any given point in time after the expiry of the validity period or usage. As of
now, there will not be any penalty applicable on customers if they do not
renew their connections within a specified time frame.
4. The actual validity period will start from the date of ERX provisioning of the
login Id into DSLIMs.
5. A maximum of 40 sub logins will be allowed per ADSL modem released to the
associate. Every 41st sub Login will have to be configured on a separate
ADSL modem that the associate will procure from VSNL. At the moment the
restriction of 40 Sub Logins on an ADSL modem will have to be monitored
only manually.
52
VSNL
Tata Indicom
53
VSNL
Tata Indicom
Methodology
Subsequent to the Study of Channel Network, we were assigned the task of
marketing the product EasySurf to both the channel partners and the end user of
the services. We found the approach of questionnaire survey aptly suited to our
purpose. The methodology adapted for this assignment is as follows:
1. The potential channel partners for the new product were identified from
the database created during the study of the channel network.
2. These prospects were then contacted and acquainted with the technocommercial aspects of the new product.
3. The prospects, who found the business venture fruitful, were required to
sign a letter of interest.
4. These prospects were then asked to identify certain buildings or societies
where they were willing to undertake the installation.
5. We thereafter proceeded to survey these buildings on behalf of the
potential associate.
Objectives of the survey:
1. To determine the business potential of a particular building in terms of
hours of Internet usage.
2. To gauge the level of customer satisfaction (with the existing Internet
connection) on the following factors:
Download Speed
Uptime/Availability of Network
Economy/Value for money
3. To find the revenue potential for the proposed product offering
The Letter of Interest served as a vital tool to bring the prospective EasySurf
associate to a greater comfort level in implementing the network installation and
closing the deal. Moreover it also helped us in gaining first hand insight into the
local market and to provide more realistic revenue models based on ground
realities rather than estimates and projections.
At the end of conducting surveys for buildings picked by every prospect, the
survey results were summarized and a report provided to the prospect. Based on
the results of this survey, the prospect took the decision of becoming an
associate and setting up the local area network in the most profitable buildings
identified.
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VSNL
Tata Indicom
Target market segment profile:

Essentially, the product will cater to the following three broad categories of
Internet users:
Residential Users: This segment of the target market for EasySurf forms
an overwhelming majority. The residential users have been using
conventional dial-up access to the Internet for a long time now. As an
outcome, they have grown very used to the traditional dial up features like
year-long validity of the ISP account, separate billing for the ISP and the
telephone service etc.
We were principally exploring the market for residential users who are
willing to upgrade to an affordable broadband service. This entails that the
customer must surf the Internet for at least two hours daily, averaged over
a month.
Small & Medium Enterprises (SMEs): SMEs found value proposition in

being able to budget their Internet expenses more effectively. EasySurf
empowers the entrepreneur to allocate Internet hours to each employee
on the basis of a budgeted consumption per month. This not only helps
contain the Internet bill within a stipulated amount, but also prevents
misuse of the service to a large extent.
Small Office Home Office (SOHOs): Small offices generally have limited
use for Internet. We were primarily targeting small offices in a business
centre scenario. Since the offices are contained within a geographically
small area, clustered together, it becomes easier to install a local area
network and provide bandwidth through the EasySurf model. The owner of
the business centre sees this as a value added service to his customers
and an additional revenue stream to his current line of business without
undergoing any major hassles.
55
VSNL
Tata Indicom
Questionnaire design:
The initiation of any kind of research comes only with the collection of the primary
data and no other research instrument is as powerful and flexible as a welldefined Questionnaire.
A carefully developed questionnaire was needed in order to get an appropriate
response. Realizing the need we outlined a questionnaire on the following lines
for the end user.
The questionnaire was an eclectic mix of close ended as well as open-ended
questions in order to obtain both quantitative and qualitative information from the
user.
The first few questions catered to knowing the basic demographic information of
the customer. Following them were queries to comprehend the Internet usage
patterns of the customer. These consisted mainly close ended questions of
Dichotomous, Multiple Choice and Rating scale type to interpret and tabulate the
response provided.
Though inclined more towards on the quantitative front, the question on
Evaluating the present internet connection also prompted the user to assess on
qualitative aspect.
Subsequent to these were certain open-ended questions that reflected the
respondents view on the product. These helped us in getting an insight about the
users willingness to accept the new product.
The questionnaire concludes with an open-ended question that presents the
remarks and suggestions from the user for the present service.
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VSNL
Tata Indicom
Questionnaire / Feedback Form
Respondent
Name
4 Phone
Decision Maker
5 Mobile
Flat No:
Do you have a computer?
Yes
No
Do you have an Internet

connection?
Yes
No
Who is your current Internet Service Provider (ISP) ?

Dishnet/VSNL
BSNL
Satyam
Tata Indicom
Others
How many people in your household use the Internet?
10
What is the total Internet usage for a day?

Upto 1 Hour
2 Hours
3 Hours or more
11
How do you rate the following characteristics of your internet connection

Uptime
Download Speed /Availability
Economy
Always
High
available
Expensive
Acceptable
Moderate
availability
Affordable
Unavailable
Low
mostly
Cheap
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VSNL
Tata Indicom
12
Would you prefer an always on Internet connection

which keeps your phone line free for calls?
Yes
No
13
Would you prefer a high speed Internet connection

costing at around Rs. 7 per hour?
Yes
No
14
How much are you willing to pay for the installation of such a connect?
Rs.2,000
Rs.1,500
Rs.1,000
15
Remarks
58
VSNL
Tata Indicom
Summary of feedback:
Market share
The following pie chart illustrates the breakup of the subscribers for all the
four major ISPs operating in sample audience. The VSNL slice of the pie is
the cumulative sum of the subscribers for VSNL, Tata Indicom and Dishnet
Dial brand names.
Fig 6.1
Market share
BSNL
27%
VSNL
51%
Satyam
12%
Reliance
10%
Usage statistics
The following pie chart illustrates the breakup of the homes where one, two,
three or four users are using Internet:
Fig 6.2
Number of people using Internet

(in a household)
One
48%
Two
41%
Four
1%
Three
10%
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VSNL
Tata Indicom
The following pie chart illustrates the breakup of the average daily usage of
Internet for each household.
Fig 6.3
Average daily usage (in hours)

Two
41%
One
44%
Three
15%
Customer Satisfaction
The following graph summarizes the customer satisfaction levels on the
download speed factor.
Fig 6.4
Customer Satisfaction :
Download Speed
Poor
51%
Good
25%
Fair
24%
As it is evident from the pie chart, a majority of the respondents were not
happy with the download speeds offered by their existing Internet connection.
This data has unearthed a market supply gap in the residential Internet
market. The product EasySurf can be successfully promoted focusing on the
better speed of the connection.
60
VSNL
Tata Indicom

uptime/network availability factor.
Fig 6.5
Customer Satisfaction : Uptime

Mostly
Available
53%
Always
Available
41%
Hardly
Available
6%
The surveyed population was largely satisfied by the uptime or the availability
of their present Internet connection. This primarily due to the fact that
currently, the residential users in India have limited use of internet and that
Internet is yet to become a part of their lifestyle. Therefore, this factor cannot
be leveraged as the unique selling proposition of the product EasySurf.
economy factor.
Fig 6.6
Customer Satisfaction : Economy
Fair
53%
Poor
31%
Good
16%
Respondents were largely content with the cost incurred on Internet, but were
willing to shift to cheaper alternatives given a chance provided that the cost of
churning is reasonable and affordable.
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VSNL
Tata Indicom
The following graph summarizes the customer acceptance for the product
EasySurf:
Fig 6.7
Product Acceptance
Yes
84%
No
16%
Product acceptance was judged by the response to the last two questions in
the questionnaire. Abstract of the product information was divulged to the end
customer and their responses were recorded.
Also, the respondents were asked to give suggestions regarding what is their
expected level of service. This information contributed to the qualitative
analysis for the product. The interviewer noted down the suggestions at the
back of the survey form and then reported back to the trainees. This helped
us understand the market better and identify the problems faced by the
customers through first hand information from the market.
We found that an overwhelming majority of the survey respondents liked the
product and were willing to subscribe to the service.
Limitations:
The sample size of the surveys was nearly 200. For more accurate results,
we need to have a larger sample size.
Respondents were not always willing to part with the information to be used
commercially.
The data collected is completely dependent on the skill of the observer and
the manner in which he records and interprets them
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VSNL
Tata Indicom
63
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Tata Indicom
Company Associate discord

Company perspective:
The prospect has to pay an amount of Rs.16200/- only to the company to

become an Associate. No security deposit is needed.
The product provides the associate an opportunity to market the most

affordable broadband Internet service in the country.
The associate earns an attractive commission on every Easy Surf plan

sold.
The company guarantees complete marketing support once the associate

signs up with the company.
The Brand Value of the largest Internet Service Provider of the country is
leveraged on the associate.
Associate perspective:
There are other hidden costs involved in setting up the LAN connectivity
within a building like permission from society and maintenance.
Marketing support needed before signing up, since the associate needs to
know the financial feasibility of the product before hand. The interest
levels of the end customer are necessary to be known before planning a
set up.
Even though there is a 30% commission on every recharge, the margin is

very low considering a long-standing association.
The associate is used to simple stocking and retailing of the product and is
hesitant to go any further than that.
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Tata Indicom
Cost Benefit Matrix For The Customer:

A comparison of the recurring monthly cost of Internet for Dial Up and EasySurf:
Usage (hours)
Daily Monthly
<1
10
1
25
2
50
3
80
4
100
Dial Up
ISP Charges Phone Bill
Rs. 150.00 Rs. 240.00
Rs. 150.00 Rs. 600.00
Rs. 250.00 Rs. 1,200.00
Rs. 500.00 Rs. 1,920.00
Rs. 500.00 Rs. 2,400.00
Total Cost
Rs. 390.00
Rs. 750.00
Rs. 1,450.00
Rs. 2,420.00
Rs. 2,900.00
Easy Surf
Plan Total Cost
10 Rs. 149.00
25 Rs. 299.00
50 Rs. 499.00
100 Rs. 699.00
100 Rs. 699.00
An analysis of savings on Internet bill for Dial Up upgrading to EasySurf:

Usage
(Monthly)
10
25
50
80
100
Savings
Monthly
Rs.
241.00
Rs.
451.00
Rs.
951.00
Rs.
1,721.00
Rs.
2,201.00
Rs.
Rs.
Rs.
Rs.
Rs.
Yearly
2,892.00
5,412.00
11,412.00
20,652.00
26,412.00
A graphical representation of the cost comparison:

Fig 7.1
Cost Comparison
Rs.3,500.00
Rs.3,000.00
Cost
Rs.2,500.00
Rs.2,000.00
Rs.1,500.00
Rs.1,000.00
Rs.500.00
Rs.1
Internet Usage Per Day
A graphical representation of comparison between peak download speeds for

dial-up and the assured download speed for EasySurf.
65
VSNL
Tata Indicom
Fig 7.2
Speed Comparison
40
30
20
10
0
Dial Up
Easy Surf
Key Benefits to the end customer:
More than double the speed of your dial-up connection
Cut down on your phone bills: No phone line required
All time available Internet connection
Convenience of Prepaid: No more hassles of a bill
No Modem required
No Data Traffic limit
No recurring monthly charges
Consistent quality of connect
Does not engage phone line: Phone available for voice calls
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VSNL
Tata Indicom
Recommendations
Two months of work at VSNL have been a great learning experience for all of us.
Working as a part of a team assigned the task of launching a new product was in
itself a privilege for us. This has given us an insight into how a new product
offering for an untapped segment of the market is test marketed.
During the course of our association with the product we have observed certain
issues that need to be looked into to make the product a run away success. We
would like to suggest the following issues to be given consideration:
The product EasySurf can be successfully promoted focusing on the

superior speed of the connection as it has been revealed by the channel
partner survey and validated again in the survey of the end-customers.
EasySurf scores well on the price front and the customers are generally
content with the pricing.
Although the product is aimed at clustered user segments, newspaper

advertisements will play a major role in enhancing the acceptability of the
product and increasing the comfort level of the associate.
Many of the existing dealers have shown skepticism in working again for
the company because of some conflict faced by them earlier. The
company needs to strategize to build a long-standing association with the
dealer.
The company can lower the entry barrier for the associate by selecting
either of the following two options:
o Reduce the installation cost levied on the associate and provide
company authorized personnel for carrying out the network
installation.
o Maintain the current installation cost, and include network
installation within the package.
The company should help the prospective associate in assessing the

market potential by carrying out surveys at no additional cost or for a
token amount payable by associate.
Standardization measures need to be taken in order to bring all relevant

promotional material, forms, receipts, etc. under the name & logo of
VSNL. Although small, but this step will help a lot in eliminating
unnecessary confusion & doubt in the minds of both channel partners &
end customers.
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VSNL
Tata Indicom
There is a demand for two month, six month, and unlimited validity plans
in the market. The company should harness this by introducing such plans
at attractive rates
Technical limitations about range of coverage can be overcome by using

latest Ethernet routers or better cabling measures to help the associate
and the company realize benefits from economies of scale. The associate
can alternatively be given an option of using his own router.
The Cash n Carry model for stocking and retailing of recharge vouchers
should be put in place as soon as possible because The process of
renewal of a connection is a bit cumbersome and needs to be simplified
for the convenience of the associate.
As mentioned earlier, a three-phase media campaign can be launched to

enhance brand-recall as well as establish the new product.
- With the recent ban on tobacco advertising, a large fleet of state
transport buses are looking for advertisers. Also, the use of hoardings
in productive zones can be continued as earlier. Thus brand visibility
will increase as the buses travel throughout the city and the recall of
the company will improve multi-fold even if buses are stuck in traffic.
- Fliers can be inserted in newspapers of localities which are technically
feasible. This will ensure a 100% penetration into households as every
family subscribes to one newspaper. Additionally, people have a
tendency to glance at least once on fliers or pamphlets before
discarding while newspaper advertising may not be very effective
locally. Also, the details of the local channel partners can be included
to increase their visibility and act as a motivational factor for them.
- The third phase should include a media blitz like road-shows or
demonstration kiosks at DishnetDSL hubs or franchisee cafes in the
areas where there are more enquiries after phases one and two.
The company is also considering implementing its ambitious Metropolitan

Area Network plans. This is a brilliant move and needs to be executed
before any of the competitors roll out similar plans. Reliance is testing a
similar project in Dhirubhai Ambani city.
Triple-play services (voice, video, and data) with heavy gaming content
will be heavily in-demand in the near future with TRAI expected to
announce a broadband-friendly policy soon.
The portal www.vsnl.com needs to be developed and showcased as a

one-stop, user-friendly site because it is the mirror of the company to the
world. A Business Standard report indicates that the new business model
for ISPs should have core emphasis on the access but should outsource
content development to provide a portal which can be used by the
customer as his homepage. Additional revenue generation can be done
through advertising or charging for premium services like anti-virus
software or anti-spam filtering.
68
VSNL
Tata Indicom
69
VSNL
Tata Indicom
The Future
Reliance's Gigabit Ethernet network
Reliance is preparing to launch a broadband platform, which offers Internet,
Cable TV and telephone on the same platform. They plan to charge Rs. 500 as
their monthly charges. If we take monthly charges as of present, 250 for cable
TV, 500 for a telephone, 650 for Internet, the total works out to Rs. 1400 per
month. Taking a Reliance connection will reduce customers monthly outflow by
more than half. Also, using the services of one provider reduces hassles faced
otherwise when the customer has to deal with multiple providers.
Reliance is in the process of setting up a Gigabit Ethernet network at some
200,000 buildings in 30 cities in India. In the first phase, Reliance is targeting
corporate customers, but the company also plans to take the Ethernet to
residential areas. Hopefully we should have more news on Reliance's all-in-one
Residential platform in a few months time branded as NetWay. For the first time
in India, television will be made available on broadband along with telephone and
Internet services.
Bharti is planning a national roll out of its broadband services.
Though the company is offering only broadband Internet services at present, it
will move into the entertainment segment with services like video on demand as
well as gaming services in the next three months.
It is also going aggressive on wireless broadband with the introduction of Wi-Fi
technology that allows access to high-speed data transmission even while on the
move.
A statement by Mr. Ravi Sharma, Managing Director, Alcatel India, confirms the
above how emphatic the future is going to be for the broadband industry.
"Revenues from voice calls are dipping owing to the drastic fall in tariffs.
Operators are looking to enhance their bottom lines through data traffic.
Broadband technology is one of the best technologies for tapping this segment."
Ravi Sharma
Managing Director
Alcatel India
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VSNL
Tata Indicom
Glossary
Definition of Broadband
The CII National Broadband Economy Committee has adopted a dynamic and
flexible definition of broadband that is technology neutral and focused towards
delivery of services to the end user, rather than on speed. For the purpose of this
initiative, Broadband has been defined as An always-on network capable of
providing interactive voice, data and video services on public networks
In terms of speed, there should be at least two tiers of service the true
broadband being capable of providing minimum asymmetric bandwidth of 1.5
Mbps and a lite version capable of providing 256 kbps. Within these ranges and
including the variations possible with service offering mix, it is expected that
several tiers of broadband services will be made available to different segments
to meet the market requirements.
It should also be noted that by definition, broadband (triple play of voice, data
and video on the same network) requires the convergence of services for
enabling its adoption and usage.
Concept of Test marketing

Test marketing is the attempt to predict the success of a new product idea before
it is marketed. It usually involves getting peoples reactions to a statement
describing the basic idea of the product. Test marketing includes a range of
techniques designed to determine a product's viability, its primary success
attributes, and likely demand factors prior to formal product launch.
71
VSNL
Tata Indicom
List of Figures
Figure
1.1
1.2
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
5.1
5.2
5.3
5.4
6.1
6.2
6.3
6.4
6.5
6.6
6.7
7.1
7.2
Name
VSNLs International Switching Gateway
DishnetDSLs All India Network
Value Added versus Costs of Different Channels
Segmentation of Pune
Customer Base
Annual Turnover
Business Operations
Customer Segments
ISP Recommended by Different Partners
Operator Awareness of Potential Partners
Willingness to try Broadband Services
Features Liked
Promotional Preferences
Newspaper Choices
Contribution per Quarter
Number of Sales Staff
Motivational factors
Strategies for Reducing Customer Churn
Channel Partner Put-offs
Commission Related Complaints
Projections for the ISP market in India
Network Layout for EasySurf Connections
Key Deliverables
Flow of Returns
Market Share
Number of People using Internet in a Household
Average Daily Usage in Hours
Customer Satisfaction: Download Speed
Customer Satisfaction: Uptime
Customer Satisfaction: Economy
Product Acceptance
Cost Comparison
Speed Comparison
Page No.
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35
36
36
37
37
38
38
40
41
43
44
54
54
55
55
56
56
57
60
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VSNL
Tata Indicom
Bibliography
Broadband Applications Fuelling Consumer Demand Alcatel
Consumer Broadband Report, 2004 www.nagendra.com
ICRA Industry Flash Internet Service Providers
Marketing Management Philip Kotler
References
www. vsnl.co.in
www. trai.gov.in
www. howstuffworks.com
www. cellular.co.za
www. google.com
www. rediff.com
www. voicendata.com
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VSNL

Test Marketing for

VIDESH SANCHAR NIGAM LIMITED

UNDER THE GUIDANCE OF

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

2. About the company

3. The Broadband market

4. Study of Channel Network

5. The Product Easy Surf

6. Market research of potential consumers for Easy Surf

7. Observations, Analysis & Recommendations

10. Bibliography and References

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

VIDESH SANCHAR NIGAM LIMITED

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

Services Under VSNL

National Long Distance:

VSNLs International Switching Gateway

Symbiosis Institute of Telecom Management

IPLC: It is a high capacity, high speed digital circuit that provides a

Internet Leased Line Service: It is a high-speed Internet solution for

Managed Data Network Service (MDNS): The diverse and complex

Internet Protocol: Virtual Private Network Service (IP-VPN): It allows easy

Inmarsat (International Maritime Satellite Organization ): VSNL operates a

Videoconferencing: VSNL systems operate under a variety of transport

Symbiosis Institute of Telecom Management

Corporate Net Telephony: VSNL offers customized solutions to suit a

Corporate Dial-up Solution: This unique solution helps to empower the

National Long Distance Leased Line (NLD LL): This is a high-speed

TV uplinking and broadcasting: VSNL provides TV uplinking and

Tata Indicom: Total Internet

Tata Indicom: Net Telephony

Tata Indicom: Web Mail

Tata Indicom: Calling Cards

Symbiosis Institute of Telecom Management

DishnetDSL, used to be promoted by the Sterling Group of Companies, which

Digital Subscribers Line (DSL) Division

HUB Centre Division

Enterprise Solutions and Services Division

VOIP (HelloWorld) International

FIRST to introduce DSL Services in India.

FIRST in path breaking, economical Dial-up plans.

FIRST to set up high quality, Internet browsing centres called DishnetDSL

FIRST to establish presence in over 38 cities along with Internet services

FIRST to achieve an enviable and growing Dial-up subscriber base.

FIRST to offer VOIP services (Hello World) without an Internet connection.

Symbiosis Institute of Telecom Management

All India Network

Symbiosis Institute of Telecom Management

The Acquisition & Combined Synergies:

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management

Global Broadband scenario:

Symbiosis Institute of Telecom Management

"Broadband will change the face of India.

Symbiosis Institute of Telecom Management

TRAI Recommendations for Broadband in India:

Symbiosis Institute of Telecom Management

Symbiosis Institute of Telecom Management