Professional Documents
Culture Documents
Page no.
Acknowledgement 04
Executive summary 05
History 07
Global Scenario 08
National Scenario 09
Demographic characteristic 10
Rural India 15
VAS 18
Inhibitors 22
Wimax Vs. 3G 26
Companies overview 29
4P’s Analysis 43
Industry updates 46
Future Trends 53
4G Technology 56
Conclusion/ References 56
The very essence of the project work is the linguistic precision which has an impact of
conveying more details in least possible words. An ample use of various reference readings has
been very frequently made while compiling data for this project. Such rich reading has been
made available at hand by the treasure-like well-maintained library of the IIPM, Ahmedabad.
I am very much under obligation to mention here, the contributions of my batch mates who
have, knowingly or unknowingly, provided me the competitive edge which is the driving force of
the whole labor and extra labor put into the project. I would also take an opportunity to thank
all the respondents, who have taken pains in answering the questions and filled the place of true
representatives for deciding the nature of the problem.
Finally, I feel very much gratified to the administration of IIPM, Ahmedabad for providing
comfortable environment.
- JONTY MOHTA
India added 113.26 million new customers in 2008, the largest globally. The country‟s cellular
base witnessed close to 50% growth in 2008, with an average 9.5 million customers added every
month. It is estimated that telecom industry will generate revenues worth US$ 43 billion in 2009-
10.
IN this we have tried to capture the most of areas of telecom industry. Like, History of Telecom
Industry, TRAI role and functions, new trends in industry and latest updates.
India growth story has already got the world to sit up and take a note of the changing economic
scenario. The Indian government is doing everything that is possible to ensure that this story
remains intact. Factors, like the liberalization in the government stance and the daring
entrepreneurs of the Indian soils, have helped the sectors achieve the highs like never before.
And currently, the flavor of the month seems to be the telecom industry.
The first wind of reforms in telecommunications sector began to flow in 1980s when the private
sector was allowed in telecommunications equipment manufacturing. In 1985, Department of
Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-
distance service that would be its own regulator (separate from the postal system). In 1986, two
wholly government-owned companies were created: „Videsh Sanchar Nigam Limited‟ (VSNL)
for international telecommunications & „Mahanagar Telephone Nigam Limited‟ (MTNL) for
service in metropolitan areas.
In 1990s, telecommunications sector benefited from the general opening up of the economy.
National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for
the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI)
was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector.
New National Telecom Policy was adopted in 1999 and cellular services were also launched in
the same year.
Indian telecom industry has the highest growth rate in the world. A record 5.9 Million new
mobile phone subscribers were drawn by the Telecom sector in India in the month of August
2006, according to the COAI (Cellular Operators Association of India). India, which is seeing
over 8 million wireless subscribers being added every month (8.62 million in May 2008), is the
fastest growing telephone market in the world. The government has reiterated the target of 500
million telecom subscribers and 20 million broadband connections by 2010.
India is the fourth largest telecom market in Asia after China, Japan and South Korea.
The Indian telecom network is the eighth largest in the world and the second largest
among emerging economies.
The Indian telecom market size of over US $ 8 billion is expected to increase three fold
by 2012. The expansion of the telecom industry in India has been fuelled by a massive growth in
mobile phone users, which has reached a level of 10 million users in December 2002, an increase
of nearly 100 per cent in 2002.
This exponential growth of mobile telephony can be attributed to the introduction of
digital cellular technology and decrease in tariffs due to competitive pressures. For the first time
in India, the growth of cellular subscriber base has exceeded the fixed line subscriber base.
However, cellular penetration is still 1 per cent as compared to world average of around 16 per
cent.
12% India
62% USA
7%
Others
Indian Telecom sector, like any other industrial sector in the country, has gone through many
phases of growth and diversification. Starting from telegraphic and telephonic systems in the
19th century, the field of telephonic communication has now expanded to make use of advanced
technologies like GSM, CDMA, and WLL to the great 3G Technology in mobile phones. Day
by day, both the Public Players and the Private Players are putting in their resources and efforts
to improve the telecommunication technology so as to give the maximum to their customers.
The Indian telecom sector can be broadly classified into Fixed Line Telephony and
mobile telephony. The major players of the telecom sector are experiencing a fierce competition
in both the segments.
The major players like BSNL, MTNL, VSNL in the fixed line and Airtel, Vodafone
(Hutch), Idea, Tata, Reliance in the mobile segment are coming up with new tariffs and discount
schemes to gain the competitive advantage.
Both fixed line and mobile segments serve the basic needs of local calls, long distance calls and
the international calls, with the provision of broadband services in the fixed line segment and
GPRS in the mobile arena. Traditional telephones have been replaced by the codeless and the
wireless instruments.
Players, video generators, Camera's, etc. The value added services provided by the mobile service
operators contribute more than 10% of the total revenue.
The 2009 budget has brought further relief to the customers with the reduction in the
tariffs, both local and long distance, and with slashing down the roaming rentals. This is likely to
IIPM – AHMEDABAD SALES AND DISTRIBUTION Page 11
lead to even more people going for cellular services and more and more use of the value added
services.
However, landline telephony is likely to remain popular, too, in the foreseeable future.
MTNL, the largest landline service provider, has recently taken some bold initiatives to retain its
market share and, if possible, expand it.
Gross Revenue (GR) stood at Rs 39,108.33 Crore and Adjusted Gross Revenue (AGR)
of Telecom Sector came in at Rs. 29,732.52 Crores.
GR has registered a decline of 3.3% compared to previous quarter whereas AGR
increased slightly.
Average license fee as percentage of AGR was 8.43% in June-09 as against 8.4% in
previous quarter.
The less outgo in terms of licensing fees is a big positive for Telecom industry and as
such for telecom subscribers in general as this will allow further scope of reduction in telecom
tariffs.
464.82
325.79
225.01
153.42
104.22
76.53
Source: TRAI
Large companies have big economies of scale in providing a highly automated service to
large numbers of customers, and have the financial resources required building and maintaining
a large network.
3. Focus strategy
The Overall Cost leadership strategy is aimed at gaining a competitive advantage through
lower costs.
The low cost leader in any market gains competitive advantage from being able to many
to produce at the lowest cost. Factories are built and maintained; labor is recruited and trained to
deliver the lowest possible costs of production. 'cost advantage' is the focus.
Financial considerations and budgetary constraints play a critical role here in shaping
competitive price of the products.
Besides the production effiency, brand and marketing skills plays a important role in this
kind of competition.
For example:--Some organizations, such as Toyota, are very good not only at producing high
quality autos at a low price, but have the brand and marketing skills to use a premium pricing
policy.
Differentiated goods and services satisfy the needs of customers through a sustainable
competitive advantage. This allows companies to desensitize prices and focus on value that
generates a comparatively higher price and a better margin.
The focus strategy is also known as a 'niche' strategy. Where an organization can afford
neither a wide scope cost neither leadership nor a wide scope differentiation strategy, a niche
strategy could be more suitable.
Here an organization focuses effort and resources on a narrow, defined segment of a
market. Competitive advantage is generated specifically for the niche.
A niche strategy is often used by smaller firms. A company could use either a cost focus
or a differentiation focus.--
With a cost focus a firm aims at being the lowest cost producer in that niche or segment.
With a differentiation focus a firm creates competitive advantage through differentiation
within the niche or segment.
There are potentially problems with the niche approach. Small, specialist niches could
disappear in the long term. Cost focus is unachievable with an industry depending upon
economies of scale e.g. telecommunications.
The target for the 11th Plan period (2007-12) is 600 million phone connections with an
investment of US$ 73 billion. Apart from the basic telephone service, there is an enormous
potential for various value-added services. In fact, the real potential for telecom service growth is
still lying untapped. According to the CII Ernst & Young report titled 'India 2012: Telecom
growth continues', revenue from India's telecom services industry is projected to reach US$ 54
billion in 2012, as against US$ 31 billion in 2008
The progression chart below depicts the major regulations and events driving the extra ordinary
growth of Telecom sector from year 1999 to 2008. In order to capitalize this opportunity of
meeting the consumer needs in highly competitive market the operators have reduced the tariffs
to attract consumers with low purchasing power primarily in semi urban and rural India. In fact
lucrative offers like being paid for incoming calls have transformed the scenario completely.
Through these changing regulations and events, the Industry players are aiming to achieve the
following
Acquiring new subscribers by expanding in Semi Urban and Rural India
Selling more services to existing subscribers
The recent TRAI recommendation permitting PC-to-phone calls where ISPs can offer cheaper
STD calls and even free local calls. This would result in further reduction of voice tariffs. This
would lead to increased focus on MVAS by mobile operators.
Acquiring customers have always been a great challenge for companies. Given the current level
of saturation in Metros and Urban Market and cut throat competition among operators,
increasing subscriber base in urban market would be all the more challenging. Therefore a lot of
operators with adequate support from Government are eyeing the rural market for future
growth. Big operators like Airtel have claimed that soon mobile connections and recharge
This is relatively easier as compared to acquiring new customers. Also since now the new
subscriptions will largely happen at the bottom of the pyramid therefore the new subscriptions will
further lower the average revenue per user. In such a scenario mobile VAS sector is a potential long-
term revenue stream as it will be easier to sell more to the existing customers.
Government also has supported the growth of this sector by coming out with a number of
initiatives for the low end subscribers of rural India, and Universal Service Obligation (USO)
fund was one such initiatives. The USO fund was an initiative taken up by the government to
increase rural teledensity. In recent developments, BSNL and two private operators will erect
427 towers in remote areas offering over four lakh mobile connections. All the towers are
expected to be erected and commissioned by December 2008. Under the second phase, DoT
aims at erecting 11,000 towers throughout the country to offer over 11 million mobile
connections ADC was levied by Telecom Regulatory Authority of India (TRAI) in 2003 to
provide support for BSNL's rural telephone obligation. Telecom Regulatory Authority of India
(TRAI) has recently given orders for the withdrawal of the ADC (Access Deficit Charge) and
the subsequent passing of the benefit to the consumers by the telecom operators.
Decrease in ARPU despite increase in MOU: Though the subscriber base is growing
at a rapid pace and has positively impacted industry revenues, operator margins also have shrunk
owing to competition and lower “Average Revenue per User” (ARPU) as the major growth is
coming from bottom of the pyramid. As ARPU declines and voice gets commoditized, the
challenge is to develop alternative revenue streams and retain customers by creating a basis for
differentiation in high-churn markets. Need for differentiation: There is a greater need among
the telecom operators to differentiate themselves from each other.
Number of Licensees: With increasing number of licensees (98 UASL, and 37 cellular
licenses) in the telecom space the average numbers of operators in many circles have increased
to 5-6 operators offering more choices to the consumer. Thus the competition among the
IIPM – AHMEDABAD SALES AND DISTRIBUTION Page 17
operators has increased tremendously. Therefore it is very important for them to differentiate
themselves from the others. Now that voice has got commoditized these operators are using
MVAS for their differentiation and marketing these services heavily for creating awareness
among the consumers.
Decreasing Call Rates: In order to attract consumers with relatively low purchasing
powers primarily from Semi Urban and Rural India the operators have drastically reduced the
call rates making it affordable to even the lower segment of society. The tariff in India is one of
the lowest at Rs.1 per minute as compared to the tariff in developed nations like USA and UK
where the call rates are Rs.13 and Rs7-8 respectively.
3G bidders who are non-operators: The arrival of new technologies will give rise to
greater competition as many non-operators are also bidding for the 3G licenses. Department of
Telecom
has planned to allow five 3G operators in each circle depending on the availability of
spectrum. Therefore there would be a greater need to differentiate oneself in order to attract
new customers and retain the existing ones.
Saturation in Metro and Urban Market: The metro/urban areas offer high level of
penetration and have significant mobile subscribers. In such a highly saturated market with the
entry of MVNO‟s the competition will get fierce. Therefore capitalizing on value added services
will give operators opportunity to increase ARPU by providing premium services.
Increasing need and demand from consumers: In addition to the above supply side
reasons the „pull effect‟ from consumers asking for more than just basic telephony is also a key
driver for MVAS services. Today most of the consumers are seeking more from their
communication device apart from just mobility and desire to stay connected. As we have seen,
Telecommunication has moved beyond providing just basic voice calls. The mobile phone has
evolved from a mere communication device to an access mode with an ability to tap a plethora
of information and services available in the ecosystem. This is the reason why it is now being
referred to as the „fourth screen‟, after Cinema halls, Television and PC.
But the fundamental question that remains is how VAS is defined. A clear MVAS definition is
not only required to clear the air among the MVAS providers but it will also have an impact on
The Government of India issues licenses for the following Value Added Services:-
Public mobile trunking service Voice mail service
Closed users group domestic 64 kbps data network via INSAT satellites system
Videotex service
GMPCS
Internet
Audiotex
Unified messaging service
The next wave of Telecom growth will come from the bottom of the pyramid. For majority of
the population in the rural segment, the mobile phone is the first communication device. Rural
GPRS Handsets
GPRS Activated
15-16 Mn.
GPRS USERS
9Mn
This clearly indicates that the consumer today engage more in text based services than the web
based applications. Therefore for MVAS to grow to its full potential the handset manufacturers
will have to look at ways to manufacture GPRS enabled phones which are affordable and user
friendly. Moreover they would also need to increase its awareness and educate the consumers on
how to use GPRS.
The market for 3G in the country is expected to be huge with over 65 million wireless
subscribers, who use their handsets to access data services on the Web. These subscribers are
currently using mobile handsets which are internet-enabled and are potential broadband
IIPM – AHMEDABAD SALES AND DISTRIBUTION Page 21
subscribers with the deployment of advanced wireless technologies such as 3G. According to
Indian Cellular Association (ICA) about 5% of mobile users already have handsets that can work
on 3G spectrum. In addition, out of all those possessing the 3G enabled handsets the number of
people who would use 3G services would be determined by the quality of content available.
Unlike most other countries, we are looking at 3G services not only as premium services but
also as an extension of 2G. Since our broadband penetration is abysmal, 3G would provide a
much required boost to it. Given that mobile phones are much cheaper as compared to PCs, the
demand for broadband on mobile is expected to be much greater. More importantly, 3G will
solve problems more in rural India. Therefore the shift towards 3G would depend on
affordability of handsets along with the quality of content available.
One of the most frequent definitions that prevail in the telecom circles for number portability is:
"Number portability is a circuit-switch telecommunications network feature that enables end users
to retain their telephone numbers when changing service providers, service types, and or locations."
Why mobile number portability (MNP)? When fully implemented nationwide by both wire line and
wireless providers, portability will remove one of the most significant deterrents to changing
service, providing unprecedented convenience for consumers and encouraging unrestrained
competition in the telecommunications industry. In short, this is the best method to increase the
efficiency of the service provider by increasing the competition, thereby ensuring better services in
all respects. From the subscribers’ perspective, this is a deceptively simple and very welcome
change, because they can change wireless service providers without worrying about notifying
friends, family and business contacts that their wireless number is changing. In addition, being able
to ‘port’ a number from one provider to another eliminates the hassle and expenses of changing
business cards, stationery, invoices and other materials for businesses. From the wireless carrier’s
perspective the change is anything, but simple. Virtually all of wireless carriers’ systems are affected.
Especially any system that relies on mobile identity numbers (MINs) or mobile directory numbers
(MDNs) will be affected. Examples of critical systems and processes that would be affected are:
billing, customer service, order activation, call delivery, roamer registration and support, short
messages service center, directory assistance, caller ID, calling name presentation, switches,
maintenance and CSC systems, home location registers (HLRs), and visiting location registers (VLRs).
been the implementation cost. Service Providers have been constantly bargaining for time, based on
the cost factor, from their respective governments. Referring to the recent example of the US,
where each of the large carriers would need to spend $50–60 million to institute the service and an
equivalent sum to maintain it. The FCC on this plea gave wireless carriers in the US another year, i.e.,
till November 2003, for resolving implementation issues. The experience of developed countries
exhibits that local number portability for fixed wireline was introduced within two to three years of
introduction of competition to incumbent state telcos. The cost estimate for the implementation of
WNP in developed nations like the US can be very helpful for the other countries, who wish to think
on the lines of number portability. To add on increased marketing costs are to be realized as the
carriers look to lock up their current base before number portability is implemented, and then
aggressively pursue the customers of other carriers thereafter.
Globally, Singapore was the first country to implement MNP in 1997, followed by Hong Kong
in 1999 and Australia in 2001. Off late, many countries have adopted the MNP model to prevent
The failure in most markets where MNP was implemented is attributed to factors like half-
hearted implementation, issues related to contract, lack of consumer awareness, overboard of
paperwork, technical difficulties and poor customer service.
The WiMAX vs. 3G cellular showdown is poised to become one of the next great market battles
in the telecom industry. Fortunes will be made and lost in this battle, and the user experience of
the Internet will be irreversibly changed in the process. 3G scores for voice; Wimax may lead to
increased broadband penetration. With the Department of Telecommunications gearing up for
simultaneous release of 3G and WiMax spectrum, analysts expect the two emerging wireless
technologies to battle it out for supremacy.
WiMax or Worldwide Interoperability for Microwave Access is a telecom technology that
enables wireless transmission of data. The technology is available as IEEE 802.16D (fixed) and
IEEE 802.16E (mobile). It offers downloads of up to 70 Mbps as compared to the 15 Mbps that
3G provides. Mobile WiMax offers download speeds of around 20 Mbps. In India, companies
like Tata Communications Internet Services, Intel, Bharat Sanchar Nigam Ltd, Bharti Airtel and
Reliance Communications are the proponents of WiMax. Most of the companies have had beta-
runs of the technology. According to a top official with a service provider, telecom service
providers are in various stages of WiMax implementation. Some companies have commercially
launched fixed WiMax services in certain cities.
While opponents of WiMax say currently it cannot be used for mobile applications, the first
mobile WiMax network was introduced in Italy this July. Another reason for the industry
pinning its hopes on WiMax is its ability to increase the broadband penetration. WiMax makes
huge sense for companies as it enables them to provide cheaper mobile internet and broadband
Operators will have to use 3G spectrum to revive voice services that are being choked by a
dearth of 2G spectrum, Patel added. The WiMax customer premise equipment (CPE) is priced at
Rs 5,000-10,000, while the CPEs for 3G would be cost Rs 10,000 and above. The industry will
know the winner in the next six months, when the spectrum allocation is complete.
So far MVNOs have not been regulated in any country. The ITU has received several requests
to study the issue, specifically to provide input on whether government intervention is necessary
to allow MVNOs to offer services and applications at a lower price to consumers. This would
Bharti Airtel is one of Asia‟s leading providers of telecommunication services with presence in
all the 22 licensed jurisdictions (also known as Telecom Circles) in India, and in Srilanka.
They served an aggregate of 105,195,762 customers as of June 30, 2009; of whom 102,367,881
subscribe to their GSM services and 2,827,881 use Telemedia Services either for voice and/or
broadband access delivered through DSL.
They also offer an integrated suite of telecom solutions to their enterprise customers, in
addition to providing long distance connectivity both nationally and internationally. They have
launched DTH and IPTV Services also. All these services are rendered under a unified brand
“Airtel”.
The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of
Indus Towers Limited.
Bharti Infratel and Indus Towers are the two top providers of passive infrastructure
services in India.
Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises.
Airtel comes to you from Bharti Airtel Limited, India‟s largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles.
Bharti Airtel is structured into three strategic business units - Mobile services, Telemedia
services and Enterprise services.
The mobile business provides mobile & fixed wireless services using GSM technology.
Airtel was voted as the „Best Cellular Service‟ in the country for four consecutive years.
Founded 1985
Industry Telecom
Revenue $6 Billion
Website www.airtel.in
Company Vision: By 2010 Airtel will be the most admired brand in India.
Vodafone is the world's largest mobile telecommunications community, employing over 65,000
staff and with over 130 million customers. The business operates in 26 countries worldwide.
Vodafone is a public limited company with listings on the London and New York stock
exchanges.
Global recognition of the Vodafone brand is growing as the company rolls out its identity into
new markets. However, it retains local names and imagery in markets where this is essential to
maintaining the trust of customers.
To help promote its image worldwide, Vodafone uses leading sports stars from high profile
global sports, including David Beckham and Michael Schumacher. This Case Study concentrates
on how such promotion can help to keep a leading brand at the forefront of public awareness
For that reason our team decided to work on few steps which were basically to get the feed back
from the market as fallow.
Basically our objectives were to find out the behaviors of the consumers or the customers
towards the product available in the market that either consumer or the customer is after the
Website www.vodafone.com
Initially having a very limited footprint in the GSM arena, the acquisition of Escotel in 2004 gave
Idea a truly pan-India presence covering Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya
Pradesh, Chhattisgarh, Uttar Pradesh (East and West), Haryana, Kerala, Rajasthan, Delhi
(inclusive of NCR) and West Bengal.
The company has its retail outlets under the "Idea n' U" banner. The company has also been the
first to offer flexible tariff plans for prepaid customers. It also offers GPRS services in urban
areas. Idea Cellular won the GSM Association Award for "Best Billing and Customer Care
Solution" for 2 consecutive years.
Spice: 1997
Founded
Idea: 1995
Industry Telecom
http://www.moneycontrol.com/india/news/business/idea-cellulars-
Revenue
revenue479-/394751
Spice: Spice Hai toh life hai (If there's Spice then there's Life.)
Slogan
Idea: An !dea can change your life.
RELIANCE OVERVIEW
RelCom is also into Wire line Business throughout India and has the largest optical fiber
communication (OFC) backbone architecture [roughly 110,000 km] in the country.
Reliance Communications has launched its Direct To Home (DTH) TV also, known as "Big
TV". RelCom have presence across all B2C communications channel in one of the fastest
growing markets in the world.
BID FOR HUTCH: In 2007, Reliance Communications had bid for 67% of Hutch but lost to
Vodafone, which had been led by its CEO at the time Mr.PIYUSH.P.
ACQUISITIONS
In July 2007, the company announced it is buying US-based managed Ethernet and application
delivery services company Yipes Enterprise Services for a cash amount of Rs. 1200 crore rupees
(equivalent of USD 300 million). The deal was announc overseas acquisition, the Reliance group
has amalgamated the United States-based Flag Telecom for $ 211 million [roughly Rs 950 crore
(Rs 9.50 billion)].
Industry Telecommunications
Products Wireless
Telephone
Internet
Television
Employees 33,000
TATA: AN OVERVIEW
Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies, an Indian
conglomerate. It operates under the brand name Tata Indicom in various telecom circles of
India. In Nov 2008, Japanese telecom giant NTT Docomo picked up a 26 per cent equity stake
in Tata Teleservices for about Rs 13,070 crore ($2.7 billion) or an enterprise value of Rs 50,269
crore ($10.38 billion).[1] In Feb 2008, TTSL announced that it would provide CDMA mobile
services targeted towards the youth, in association with the Virgin Group on a Franchisee model
basis.
Tata Indicom
Tata DoCoMo
Virgin Mobile
Founded 2000
Industry Telecommunications
Wireless
Telephone
Products
Internet
Television
Employees 350,000
BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a
customer base of 90 million as of June 2008. It has footprints throughout India except for the
metropolitan cities of Mumbai and New Delhi which are managed by MTNL. As mon March
31, 2008 BSNL commanded a customer base of 31.55 million Wire line, 4.58 million CDMA-
WLL and 54.21 million GSM Mobile subscribers. BSNL's earnings for the Financial Year ending
March 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR 78.06b (US$ 1.90
billion). BSNL has an estimated market value of $ 100 Billion. The company is planning an IPO
within 6 months to offload 10% to public in the Rs 300-400 range valuing the company at over
$100 billion.
Headquarters Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi
Kuldeep Goyal
Key people
(CMD)
Industry Telecommunications
Wireless
Telephone
Products
Internet
Television
Industry Telecommunications
Founded 2009
Stein-Erik Vellan
(CEO)
Key people
Sanjay Chandra
(Chairman)
Wireless
Products Telephone
Internet
Employees 2,000
Telenor (67.25%)
Parent
Unitech Group (32.75%)
Website Uninor.in
Industry Conglomerate
Founded 1979
Venugopal Dhoot
(Chairman)
Key people
K. R. Kim
(CEO)
Consumer Electronics
Home Appliances
Components
Office Automation
Mobile phones
Products
Wireless
Internet
Petroleum
Satellite television
Power
Website Videocon.com
1) PRODUCT
2) PRICE
3) PLACE
4) PROMOTION
The study shows it clearly that Vodafone have a huge market share due to its better
service and good network. But the thing that differentiate it from the competitors that it provide
the more and more number of the value added services.
Latest advertisement of Vodafone: Zoo zoos” is very attracting and it increases the
sales of the Vodafone , the marketing manager of Vodafone reveals that statement.
Study clearly shows that Vodafone is a has a brand image in the mind of public due to
their willingness to provide the best service.
.
Airtel basically uses two appeal to connect to the users
Emotional
Humorous
attracting
In 2002, Airtel signed on music composer A.R.Rehman and changed its tune to "live
every moment": rah man’s signature tune for Airtel is the most downloaded ringbone in
India. But that was just part of the ongoing communication.
The following year Airtel adopted the "express yourself" positioning, which is also its
current tagline.
Youth icons like Shahrukh khan and Sachin Tendulakar were brought in as brand
ambassadors to attract youngsters
Add campaign with an eye on the rural market
SMS pack (it‟s for SMS generation), cheaper call rates schemes only for school and college going
students. In this plan Airtel should go for the heavy youth promo with fast dance track and cute
guys and gals.
Consolidation in Industry.
Telenor-Unitech Deal
In addition, MTN is strong in the value-added services (VAS) and mobile commerce space. So,
as and when mobile commerce picks up in India (after RBI‟s approval), Bharti would be able to
tap this market through MTN‟s expertise.
MTN has a vast experience in running multi-country operations and overcoming regulatory
hurdles. By working with MTN, life for Bharti will get a lot of easier.
One of the major challenges would be the integration of the company on the ground. It is
tough for intercontinental companies to merge seamlessly because of cultural divide.
Alcatel-Lucent for instance is still trying to adjust to cultural divide. Although Nokia-Siemens
has bridged this divide faster, it was because both the companies were European.
The Black Empowerment Act could pose a challenge, as it is meant to safeguard the rights of
the black population. As per this Act, blacks are ensured a minimum shareholding management
seats and voting rights.
The country’s strong trade union, Congress of South African Trade Unions (COSATU), which
has influence over President Jacob Zuma, had almost wrecked the Vodafone-Vodacom deal.
The Indian telecom industry has always allured foreign investors. In fact, the cumulative
FDI inflow, from August 1991 to March 2007, in the telecommunication sector amounted to
US$ 7,513.22 million. This makes telecommunication the third-largest sector to attract FDI in
India in the post liberalization era. The investment was majorly in handset manufacturing and
telecom service provider.
Managed service is another segment that is attracting telecom companies. On account of the
rapidly growing subscriber base, service providers find it difficult to manage their infrastructure
and network. In such cases, they completely or partially outsource their infrastructure or
network management operations.
A case in point is Nokia which is managing the network for Hutchison Essar Limited in 19
circles in India. Having successfully capitalized on the business potential of managed service,
Effectively, IMS provides a unified architecture that supports a wide range of IP-based services
over both packet- and circuit-switched networks, employing a range of different wireless and
fixed access
technologies. A user could, for example, pay for and download a video clip to a chosen mobile
or fixed device and subsequently use some of this material to create a multimedia message for
delivery to friends on many different networks. A single IMS presence-and-availability engine
could track a user's presence and availability across mobile, fixed, and broadband networks, or a
user could maintain a single integrated contact list for all types of communications. A key point
of IMS is that it is intended as an open-systems architecture: Services are created and delivered
by a wide range of highly distributed systems (real-time and non-real-time, possibly owned by
different parties) cooperating with each other. It is a different approach to the more traditional
telco architecture of a set of specific network elements implemented as a single telco-controlled
infrastructure.
High Speed Downlink Packet Access (HSDPA)
High Speed Downlink Packet Access (HSDPA) is a packet based technology for W-CDMA
downlink with data transmission rates of 4 to 5 times that of current generation 3G networks
The Indian Telecom Service provider industry is gearing for a revolution. The customer is
driving this revolution and will see more unique and sophisticated offerings coming his way. The
3G which will pave the way for 3.5G, 3.75G and the next big thing-4G and the VAS services
will keep the customer asking for more. The rural areas which have remained untapped will see
an insurgence of services. Also the easing of the regulations by TRAI ,the ease of spectrum
licensing, the FDI influx will make the telecom space in India a must watch in the coming years.
REFERENCES
WEBSITES USED:
http://www.airtel.in
http://en.wikipedia.org/wiki/Idea_Cellular
http://en.wikipedia.org/wiki/Spice_Telecom
http://www.pluggd.in/indian-telecom-industry/idea-tmi-acquires-spice-telecom-1805/
http://www.mobiles.in/mobile-service-providers.htm
http://www.bsnl.co.in/about.htm
www.vodafone.co.in
www.ideacellular.com
www.google.com
MAGAZINES USED:
4PS
Business Economics
Times of India
Industrial Handbook 2009