A Study of

Telecom
Industry
Presented by:
Swati Tiwari
Priyanka Singh

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 • Introduction
Agenda
• Overview of telecom industry
• History of telecom industry
• Scope of telecom industry
• Players of telecom industry
• Major market trends
• Future trends in telecom industry
• Developments in telecom industry
• Conclusion

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

Telecom is a huge and varied fastness of technologies,

companies, services and politics
that is truly global in nature

Telecom stands as one of the most essential elements of the

business world in terms of “Connecting the World”

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 History of Telecom Industries

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 Cont…………..

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 Overview of Telecom Industies
• 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.

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 • 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, Hutch, Idea,
Tata, Reliance in the mobile segment are coming up with new tariffs and
discount schemes to gain the competitive advantage. The Public Players
and the Private Players share the fixed line and the mobile segments.
Currently the Public Players have more than 70% of the market share.

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 Fixed-line Telephony Mobile Telephony

Public Players Public Players

Subscribers Subscribers

Private Players Private Players

Subscribers Subscribers

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India
• India has a 700 million people living in 638,000 villages
– per-capita income of $ 0.40 per day)
• As per DoT statistics 500,000 villages have telephone access.

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 Scope of Telecom Industries
• Public & private player

20%

21%
18%

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 Market structure
• Divided into 22 circles Jammu &
Kashmir

– 4 metros Himachal
Pradesh

– 19 circles Punjab

Haryana
Uttar
Pradesh

• Further divided into A, B and DELHI

W

C category based on Rajasthan Uttar Pradesh E

economic parameters and Bihar

West
Madhya
revenue potential
Gujarat Bengal
Pradesh

• Each circle has a

Orissa KOLKATA
Maharashtra

MUMBAI

licenses Andhra
Pradesh

Karnataka

– Four operators per circle METRO Circles

are allowed CHENNAI

A Circles
Tamil Nadu
B Circles
– Licenses are saleable Kerala

C Circles

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 Players of Telecom Industries
• Airtel
• BSNL
• Vodafone
• Reliance
• Idea

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 AIRTEL
Established in 1995 by Sunil Mittal as a Public Limited
Company, Airtel is the largest telecom service provider
in Indian telecom sector. With market capitalization of
over Rs. 1,360 billion, Airtel has 31% of total market
share of GSM service providers. Providing GSM
services in all the 23 circles, Airtel was the first private
player in telecom sector to connect all states of India.
Also, Airtel is the first mobile service provider to
introduce the lifetime prepaid services and electronic
recharge systems.

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 BSNL (Bharat Sanchar Nigam Ltd.)

• Founded in 2000, Bharat Sanchar Nigam Ltd. In

2005-06, the BSNL earned revenues of Rs. 40,177
crore, & In 2007-08, the BSNL earned revenues of
Rs.38,053 crores. India's largest public sector
Telecommunications Company providing a wide
variety of telecom services. Its service range covers
Wireline, CDMA mobile, GSM Mobile, Internet,
Broadband, Carrier service, MPLS-VPN, VSAT,
VoIP services, IN Services, etc.

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

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

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 IDEA
• Established by AT&T, Aditya Birla Group and Tata Group as
joint venture, Idea Cellular, is a part of Aditya Birla Nuvo, a
flagship company of the Aditya Birla Group, Idea is growing
its network in 11 circles. Idea offers both prepaid and post
paid services in the GSM network. Having 13% market
share, Idea has a base of 2.3 crores subscribers all over the
country. A three-year contract was signed between Idea
cellular and Ericsson for GSM expansion. The network will
now cover Maharashtra, Gujarat, Rajasthan, Madhya
Pradesh and Himachal Pradesh telecom circles (operator-
licensed areas).

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 Market Strategy of Vodafone
• Our strategic objective is
- Innovate and deliver on customer’s
total communications needs.
• Vodafone too, needed to educate
consumers about cellular telephony:-
-Can I call std?
-Can I use my phone in a lift?
-what is airtime?

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 Commercial Strategy of Vodafone
• Rebranding
-Stores
-Mass media coverage
• Innovative distribution to reach the customer
-Exclusive shops
-Hub and spoke
-Associate distributions
• Customer service
-Shops and call centers
-Vans
-Help desks

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 Market Strategy of Airtel

• We positioned Airtel as an inspirational and lifestyle

brand, in a way that trivialized the price in the mind of the
consumer. It was pitched not merely as a mobile service,
but as something that gave him a badge value.
• Airtel strategy us to be a leader in
-Innovations
-network
-offers and services

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 Competitive Analysis (Positioning
Strategy)

• Vodafone has • Airtel is focused on

veered towards functionally and
warmth and efficiency.
emotions. • Airtel choose to
• Vodafone used use music, which is
the powerful visual not nearly as
imagery of a dog. effective.

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 Competitive Analysis (Target
Audience)

• They are targeting •A group or class of

middle class persons enjoying
person as their superior intellectual
target audience. or social or economic
• It can be justified status
by their product
•Up market
like chota
professionals
recharge.

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 Ad-Campaign by AIRTEL (Digital
TV)

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 Ad-Campaign by VODAFONE

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 MAJOR MARKET TRENDS
The telecoms trends in India will have a great impact on everything from the
humble PC, internet, broadband (both wireless and fixed), cable, handset
features, talking SMS, IPTV, soft switches, and managed services to the local
manufacturing and supply chain.
This report discusses key trends in the Indian telecom industry, their drivers and
the major impacts of such trends affecting mobile operators, infrastructure and
handset vendors.

Higher acceptance for wireless services

Indian customers are embracing mobile technology in a big way (an average of
four million subscribers added every month for the past six months itself). They
prefer wireless services compared to wire-line services, which is evident from
the fact that while the wireless subscriber base has increased at 75 percent
CAGR from 2001 to 2006, the wire-line subscriber base growth rate is
negligible during the same period.

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 • In fact, many customers are returning their wire-line phones to their service
providers as mobile provides a more attractive and competitive solution.
The main drivers for this trend are quick service delivery for mobile
connections, affordable pricing plans in the form of pre-paid cards and
increased purchasing power among the 18 to 40 years age group as well as
sizeable middle class – a prime market for this service.

Some of the positive impacts of this trend are as follows.

According to a study,18 percent of mobile users are willing

to change their handsets every year to newer models with more features,
which is good news for the handset vendors. The other impact is that while
the operators have only limited options to generate additional revenues
through value-added services from wire-line services, the mobile operators
have numerous options to generate non-voice revenues from their
customers

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 Some examples of value-added services are ring tones download,
coloured ringback tones, talking SMS, mobisodes (a brief video
programme episode designed for mobile phone viewing) etc.
Moreover, there exists great opportunity for content developers to
develop applications suitable for mobile users like mobile gaming,
location based services etc. On the negative side, there is an
increased threat of virus – spread through mobile data connections
and Bluetooth technology – in mobile phones, making them
unusable at times. This is good news for anti-virus solution
providers, who will gain from this trend. they are created

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 Future Trends
• Convergence of technologies & the ability of
private players to offer it to the market faster
than the incumbent operator.
• “The telecom industry in 2012 will be very
different from the one we know today.
Developing strong partnership skills, focusing on
customer user groups, embracing Internet
services and starting to talk the language of
Web 2.0 will enable the carriers to thrive well
into the future,"

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 Developments in telecom industry
• 3G Technology In India
3G or Third Generation technology is a convergence of
various Second Generation telecommunication
systems. The technology is intended for
SMARTPHONES - multimedia cell phones. Video
broadcasting and other e-commerce services such as,
stock transactions and e-learning will now be made
possible much faster. It offers 3 Mbps speed for
downloading, which is very high as compared to that of
the 2G technology. The 3G technology provides for
internet surfing, downloading, e-mail attachment
downloading, audio-video conferencing, fax services
and many other broadband applications.

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 Reliance launched Big TV

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 Airtel has launched digital TV

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 Vodafone +Airtel+ Apple is going to
launch iphone.

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 All players are going to launch net
usage by USB (plug & surf from
anywhere)

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 Conclusion
• In this changing landscape, the winners will be those companies
that understand consumers' needs, focussing on usability and
actually giving control back to the users. The losers will be the ones
that focus on overly technical product differentiation that the majority
of consumers will not understand and therefore not use.
Inevitably, the global telecom majors are taking notice and Nokia,
LG and Motorola have put up factories to manufacture mobile
phones after years of saying that the Indian market was better
supplied from abroad. Nokia’s former chairman Jorma Ollila was
quite clear why the company was finally moving to India. “We
estimate that India will become the world’s second biggest mobile
device market when measured by volumes in the year 2010.” Other
market research companies have estimated that India will, in fact,
overtake China when it comes to selling mobile instruments by
around 2009.

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