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Quick Facts: Next Super Power India (March, 2010)

The document provides an overview of key trends in the Indian telecom sector from 2010 to 2015. Some of the highlights mentioned are: - India's mobile user base is projected to grow from 584 million in 2010 to over 1 billion by 2015. - The number of telecom players is expected to consolidate from 13 major players to 5-6 large players by 2015. - The telecom market size is projected to increase from Rs. 100,000 crore to Rs. 344,921 crore and subscriber growth rate is expected to be over 26% from 2010 to 2015. - Employment in the sector is projected to increase from 4 million to 10 million in this period.

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Aman Kumar
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0% found this document useful (0 votes)
548 views

Quick Facts: Next Super Power India (March, 2010)

The document provides an overview of key trends in the Indian telecom sector from 2010 to 2015. Some of the highlights mentioned are: - India's mobile user base is projected to grow from 584 million in 2010 to over 1 billion by 2015. - The number of telecom players is expected to consolidate from 13 major players to 5-6 large players by 2015. - The telecom market size is projected to increase from Rs. 100,000 crore to Rs. 344,921 crore and subscriber growth rate is expected to be over 26% from 2010 to 2015. - Employment in the sector is projected to increase from 4 million to 10 million in this period.

Uploaded by

Aman Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Quick Facts : Next Super Power India (March, 2010 )

Name Current Trends Projected


(In 2010) Trends
(In 2015 )
Population of India 120 Crore 135 Crore
(Approx. )
Mobile Users 584.32 Million Over 1 Billion
(Approx. )
Number of Players 13 5-6 Players Total Telep
(Approx. )
Market Size 100,000 Rs. 344,921 Rs.
Subscriber
(Approx. ) Crore
Growth Rate (Approx. 16 %
Crore
Over 26 %
Base
)
Employment to
People (Approx. )
4 Million 10 Million Wireless
TeleDensity 52.74 % 70 % Subscriptio
Internet Users 81 Million
Internet Penetration 7 %
120 Million
18 %
(With 20.31
Evolution of the Telecom Sector :
Pre-1991 1991-1994 1994 - 2002 2002 -2007

 Telegraph Act  Cellular Phone  1997 : TRAI was  Broadband policy


1885 Services were set up 2004
opened up to  NTP 1999
private sector-1994  FDI - 74% 2005
 Creation of DOT-
 TDSAT-2000
1985  BSNL formed
 National Telecom 2001
Policy-1994
 MTNL & VSNL
 FDI - 49 %
were set up-1986

Up to Up to Upto Upto
1991 1994 2002 2007
Policy of Government of India :
Ministry of Communication & Information Technology

Licensor
Dept of Telecom Unified License
Operators
Fixed Line Operators
Regulator
Telecom National Long Distance
Regulatory Operators CDMA
Authority of India
International Long 1800
Judiciary Distance Operators MHZ
Telecom Dispute
Wireless Operators
Settlement
GSM
Appellate
FDI in telecom recently revised to 74%.
Tribunal 900 &
1800
Government gets 15% of revenues from Unified Licensing
MHZ
Market structure of India- Telecom
Circles :
 Metro A circles (regions that
circles include other large citie
(major Andhra Pradesh
cities*): Gujarat
• Mumbai
Karnataka
• New Delhi
Maharashtra
• Kolkata
Tamil Nadu*
 B circles C circles (rural area
(regions with Assam
smaller urbanBihar
areas and Himachal Pradesh
towns): Jammu & Kashmir
• Haryana Northeast
• Punjab Orissa
• Rajasthan Kerala
• Uttar Pradesh Madhya Pradesh
(* (East)
Chennai, in the southeast, was
•previously
Uttar Pradesh
a separate Metro circle,
but(West)
as of March 31, 2008, it was
•integrated
West Bengal
into
the Tamil Nadu A circle as a single
entity.)
Telecom Growth Comparison :
Total No. of
Mobile Subscriber
in the year
2015 will be
1000 Million.
Different Services of Telecom Sector:
Growth of Telecom Network (PSUs &
Private ) :
Teledensity Growth in India :
Wireless & Wireline Subscriber Base in India :

All India Wireline Subscriber Base

38.5 37.95
37.81 37.65
38 37.54 37.41
37.33 37.31 37.25
37.5 37.16 37.06 36.99
36.96 36.96
37
36.5
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FDI in Telecom Sector in India :
Market Share of Technology &
Connection:
Different Players of Indian Telecom
Industry :
There are three types of players in telecom services:
• State owned companies (BSNL and MTNL)
• Private Indian owned companies (Reliance Communication, Tata Teleservices)
• Foreign invested companies (Vodafone Essar, Bharti Airtel, Idea )

I WANT ONLY
1 SIM CARD
Market Share: Bharti Airtel Market Leader With 21.84 %

Market Share in India :

Overall Indian Telecom Industry Market Share : TRAI REPORT : MARCH 2010
All India GSM Cell Subscribers- March 2010 (COAI
Report) :

Sl. No. Name of Company To

1 Bharti Airtel

2 Vodafone Essar

3 IDEA

4 BSNL
1st Player – BHARTI GSM PLAYER- PAN 23 CIRCLES

AIRTEL
1st Rank in Telecom Market of India with Subscriber Base of 127.6 Million
& Market Share Of 30.25 % ( TRAI , GSM Subscriber Base March 2010 Report )
Type Public (BSE: 532454)
Industry Telecommunications
Founded 7 July 1995
Founder Sunil Bharti Mittal
Headquarters New Delhi, India
Area served Worldwide
Key people Sunil Mittal
(Chairman) & (MD)
Sanjay Kapoor (CEO) Bharti ‘s Famous “Minute Factory Model” combined
Products Wireless with a low cost structure.
Telephone Bharti Airtel an integrated Telecom Service Provider
Internet
Satellite television

Revenue ▲ US$ 7.254 billion (2009) Bharti is now the world's third-largest,
Operating income ▲ US$ 2.043 billion (2009) single-country mobile operator and Fifth-
Net income ▲ US$ 1.662 billion (2009) largest integrated telecom operator.
Total assets
Employees
▲ US$ 11.853 billion (2009)
25,543 (2009)
“Work is Love , not Stress “
Parent Bharti Enterprises (64.76%)
- Sunil Bharti Mittal
SingTel (30.5%)
Vodafone (4.4%)
2nd PLAYER- BOTH GSM PLAYER
&
RELIANCE CDMA PLAYER
PAN in 23 Circles.
Type COMMUNICATIONS
Public BSE: 532712
Industry Telecommunications 1st Rank in CDMA Telecom Market of India with
Founded 2004 Total Subscriber Base (Both GSM & CDMA) of
Founder Dhirubhai Ambani 102.44 Million & Market Share in CDMA
Headquarters Navi Mumbai, Maharashtra Of 59.39 %.
Area served India 6th Rank in Purely GSM Market with
Key people Anil Ambani (Chairman ) Total Subscriber Base of 16.31 Million &
Satish Seth (MD) Market Share in GSM Market is of 3.87 %.
Products Wireless
Telephone
Internet
Television
Data Cards
Recharge Vouchers

Revenue Rs 22,948 crore (US$ 4.89 billion)


Operating income Rs 9,305 crore (US$ 1.98 billion)

Reliance is again in Hot News after 2002 when it


Net income Rs 6,045 crore (US$ 1.29 billion)
sold its Reliance Handset in only 500 rs. R-Com
Total assets Rs 102,207 crore (US$ 21.77 billion)
has launched a new tariff model for its pre-paid
customers, which offers Unlimited talk time for a
Total Equity Rs 1,032 crore (US$ 219.82 million)
flat monthly fee.
Employees 31,884
Parent ADAG
3rd Player – Vodafone Essar
2nd Rank in Telecom GSM Market of India with Subscriber Base of 100 Million &
Market Share of 23.91 %. ( TRAI ,March 2010 Report )
Type Limited
GSM PLAYER PAN in 23 Circles
Industry Mobile
telecommunications

Predecessor Hutchison Essar

Founded 1994

Headquarters Mumbai, Maharashtra

Products Mobile networks,


Telecom services, Etc.

Owner(s) Vodafone Group (67%)


Vodafone ZOOZOO Magic
Essar Group (33%)

Employees 10,000
GSM PLAYER PAN IN ALL 23 CIRCLES
4 TH
PLAYER- IDEA
CELLULAR
3RD Rank in Telecom GSM Market of India with Subscriber Base of 63.82 Million &
Market Share of 15.13 % in GSM Market. ( TRAI ,March 2010 Report )
Type Public
BSE: 532822
NSE: 532822
Industry Telecommunications

Founded 1995

Headquarters Santa Cruz East, Mumbai, India

Key Kumar Mangalam Birla (Chairman)


people Sanjeev Aga (MD)
Rajat Mukharjee (VP Corporate
Affairs)

Products Mobile

Parent Aditya Birla Group (49.05%)


Axiata Group Berhad (15%)
Providence Equity (10.6%)
5th Player-TATA Teleservices Ltd.
(TTSL)
IN TELECOM MARKET WITH 3 BRANDS :
2ND Rank in CDMA (TATA INDICOM With DOCOMO ) Telecom Market of India with
Subscriber Base of 65.94 Million & Market Share of 38.23 % in CDMA Market .
Type Public (BSE: 532371)
1)TATA INDICOM- CDMA PLAYER
Industry Telecommunications

Founded Incorporated 1996


Headquarters Navi Mumbai, India

Key people Mr. Ratan N. Tata Chairman)


Anil Kumar Sardana (MD) 2) TATA DoCoMo - GSM PLAYER
Products Wireless
Telephone
Internet
Television

Employees 350,000
Parent Tata Group 3)VIRGIN MOBILE- BOTH CDMA & GSM PLAYER
Divisions Tata Indicom (CDMA)
Tata DoCoMo (GSM)
Virgin Mobile India (CDMA/GSM)
6th Player- BOTH GSM & CDMA

BSNL
4th Rank in Telecom GSM Market of India with Subscriber Base of 63.48 Millions &
Market Share of 15.05 %. ( TRAI ,March 2010 Report )
Type State-owned
Industry Telecommunications

Founded 19th century, incorporated 2000

Headquarters Bharat Sanchar Bhawan,


Harish Chandra Mathur Lane,
Janpath, New Delhi

Key people Kuldeep Goyal (Chairman) (MD)

Products Wireless
Telephone BSNL ;- Undisputed Leader in Broadband
Internet
Television with 60 % Market Share.
Revenue ▼ US$ 7.03 billion
It has1.5 Million 3G Users out of 60 Million
Total Consumer Base.
Owner(s) The Government of India

Employees 357,000
7th Player- GSM PLAYER IN
PAN in 18 CIRCLE
AIRCEL
5th Rank in Telecom GSM Market of India with Subscriber Base of 36.86 Millions &
Market Share of 8.74 %. ( TRAI ,March 2010 Report )
Type Private
Industry Telecommunications

Founded 1999

Headquarters Gurgaon

Key people Gurdeep Singh, COO


In a bid to raise awareness about the declining
Products Mobile number of tigers, Aircel, partnering with World
Telecommunication operator Wildlife Fund (WWF) India has launched the
'Save Our Tigers' initiative.
Parent Maxis Communications(74%)
Apollo Hospital (26%)
The campaign, created quite a buzz. 'Stripey
the Cub', the face of the Initiative, has over
96,400 fans on popular social networking
website, Face book; and the official Twitter
page have 3,027 followers already.
8th Player –
MTNL
BOTH GSM PLAYER & CDMA PLAYER

7th Rank in Telecom Market of India with Subscriber Base of 47.84 Million &
Market Share of 1.13 %. ( TRAI ,March 2010 Report )
Type State-owned Public
NSE: MTNL
NYSE: MTE
Industry Telecommunications

Founded 1986
Headquarters Mumbai and New Delhi India

Key people Kuldip Singh (CMD)


Anita Soni (CFO)
S.M.Talwar (ED-New Delhi)
J.Gopal (ED-Mumbai) MTNL provides fixed line telephones, cellular
connection of both GSM — Dolphin (Postpaid)
Products Wireless and Trump (prepaid) and WLL (CDMA) —
Telephone
Internet
Garuda -FW and Garuda-Mobile and internet
Television services Through dialup and DSL —
Revenue ▼ INR 52.895 million (2009) Broadband internet TriBand.
Net income ▼ INR 1.626 million (2009)

Owner(s) The Government of India


9th Player- GSM PLAYER

UNINOR
PAN

8th Rank in Telecom GSM Market of India with Subscriber Base of 42.64 Million &
Market Share of 1.01 %. ( TRAI ,March 2010 Report )
Type Joint Venture

Industry Telecommunications

Founded 2009

Headquarters Gurgaon, India

Key people Stein-Erik Vellan (CEO)


Sanjay Chandra (Chairman)

Products Wireless
Telephone
Internet

Employees 2,000

Parent Telenor (67.25%)


Unitech Group (32.75%) With ‘ Ab mera number hai',
Uninor tells the world it has
arrived.
10th Player- MTS CDMA

(SSTL) PLAYER

3rd Rank in CDMA Telecom Market of India with Subscriber Base of 3.77 Million &
Market Share of 2.19 % in CDMA .
Industry Mobile
telecommunications

Founded 2009 as Sistema Shyam


TeleServices Limited

Headquarters New Delhi, Delhi, India

Products CDMA
Owner(s) Sistema (73.71%)
Shyam Group (23.70%)
11th Player-LOOP
MOBILE GSM

10th Rank in Telecom GSM Market of India with Subscriber Base of 2.84 Million &
Market Share of 0.67 %. ( TRAI ,March 2010 Report )
Type Private

Industry Telecom

Founded 1994 as BPL Mobile


2009 as Loop Mobile

Headquarters Mumbai
Maharashtra , India

Key people CEO Sandip Basu

Products Mobile
Telecommunication
operator

Owner(s) Essar Group (8%)


12th Player-S
GSM PLAYER
TEL
11 Rank in Telecom GSM Market of India with Subscriber Base of 1 Million &
th

Market Share of 0.24 %. ( TRAI ,March 2010 Report )

S Tel, is a GSM based cellular operator in India. It has a unified services access
license in Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu &
Kashmir. It is owned jointly by C Sivasankaran (51%) and Bahrain
Telecommunications (49%).
S Tel Private Limited (S Tel), a new telecom operator in the Indian
marketplace, is a joint venture between Siva Group (formerly Sterling
InfoTech Group) and Bahrain Telecommunications Company (Batelco).

S Tel has acquired Unified Access Services Licenses (UASL) and spectrum to
operate in six Category C circles – Orissa, Bihar, Himachal Pradesh, North
East, Assam and Jammu & Kashmir. These licenses will enable the company
to provide Unified Mobile service, wireless broadband and innovative Value
Added Services (VAS) covering a population of over 226 million across these
circles
13th Player-PING CDMA
(HFCL)

4TH Rank in CDMA Telecom Market of India with Subscriber Base of 0.32 Million &
Market Share of 0.19 % in CDMA .
HFCL Infotel Ltd. (Infotel) is a "Total Telecom Solutions Provider" offering
Fixed Line telephony (Telephone Services), Mobile telephony, Broadband
Services, Customized Data Services and Value Added Services.

Infotel provides a world class telecom experience when it comes to


technology, products, customer services, Launched in Punjab in the year
2000 under the Connect brand name. Infotel has set up state-of-the-art
Networks with coverage in over 200 towns of Punjab with an extensive
optical fiber network coverage of over 4,000 km.

Today, Infotel is one of Punjab's leading private sector telecommunication


services providers with an aggregate customer base of 5, 10,263 as on 31st
Dec 09.
14th Player- GSM

VIDEOCON
100 DAYS-100 CITIES
Type Public (BSE: 511389)
Industry Conglomerate
Founded 1979
Founder(s) Nandlal Madhavlal Dhoot
Headquarters Aurangabad, Maharashtra, India
Videocon Mobile Service., is a GSM based
cellular operator in India based in Mumbai.
Key people Venugopal Dhoot (Chairman)
K. R. Kim (CEO)
Videocon Telecommunications Limited, a
Products Consumer Electronics
Home Appliances Videocon group company offers GSM
Components mobile
Office Automation
Mobile phones services GSM service under the brand
Wireless
Internet
name
Petroleum Videocon.
Satellite television
Power The Videocon Group is a $4 billion, global
business conglomerate with a strong
Revenue ▲ US$4 billion (2010)
presence in Household Consumer Goods,
Net income ▲ US$276 million (2010)
Oil & Gas, Retail, Telecom, DTH and the
Employees 5,000 (2010)
Power sector.
GSM IN
Listed 15th Player- ETISALAT 15 CIRCLES

Type Public
Founded United Arab Emirates
Government

Headquarters  United Arab Emirates

Key people Mohammed Hassan Omran


Chairman
Mohammed Al Qamzi CEO

Revenue ▲ $8.4 billion (FY2009)

SWAN TELECOM RE- NAMED ETISALAT DB TELECOM INDIA PVT. LTD


Etisalat will shortly be launching its service. As of April 2010, signal testing
has already begun in a few circles of Chennai [IND 922], Delhi & NCR [IND
913], Maharashtra & Goa [IND 918], Mumbai [IND 916] and Gujarat[IND 914].
Etisalat has signed a deal with bollywood actor Aamir khan which is biggest
endorsement till date in the Indian advertising market for Rs. 350 million(35
Crores) for a three year contract. In May 2010, Etisalat is in talks to buy 25%
stake in Reliance Communications.
Analysis of Bharti Airtel
Sunil Bharti Mittal : FIRST GENERATION
ENTREPRENURS

SUNIL BHARTI MITTAL is an Indian Telecom Mogul, Philanthropist and the Founder,
Chairman and Managing Director of Bharti Enterprises.
Mittal prides himself on a string of firsts: "the first push-button, the first cordless, the
first answering machines, 1970 Bicycle Crankshaft Business
the first fax machines“. 1982 Portable Generators
ia's self-made billionaires.
1982 Electronic Push Button Phones
s a Pioneer, a Dreamer, an Achiever.
1990 Fax Machines, Cordless Phones and Other
THE GAME CHANGER. Telecom Gear.
1992
07, he was awarded the Padma Bhushan, Mobile Phone Service License Operator in Delhi
's third highest civilian honor.
1995 UMBRELLA BRAND -AIRTEL
Airtel Brand : Taglines :
Airtel Brand Logo :
Brand Ambassadors :
2002 2003 2008 2009

2010
Bharti Airtel : Introduction
 Airtel comes to you from Bharti Airtel Limited, one of Asia’s leading integrated
telecom services providers with operations in 18 countries across Asia and Africa.
Bharti Airtel since its inception, has been at the forefront of technology and has
pioneered several innovations in the telecom sector.

 AIRTEL is one of Asia’s leading providers of telecommunication services with


presence in all the 22 Telecom Circles in India, and in Srilanka. It served an aggregate
of 130,686,172 customers as of March 31, 2010, in India; of whom 127,619,314
Subscribe to our GSM services and 3,066,858 use our Telemedia Services either for
voice and/or broadband access delivered through DSL.

 The company is structured into four strategic business units - Mobile, Telemedia,
Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and
Bangladesh. The Telemedia business provides Broadband, IPTV and telephone services
in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across
India. The Enterprise business provides end-to-end telecom solutions to corporate
customers and national and international long distance services to telcos.
Four Strategic Business Units :
1) Mobile 2 ) Telemedia

e mobile business offers services The Telemedia business


India, Sri Lanka and Bangladesh. provides broadband, IPTV and
telephone services in 89 Indian
cities.
3 ) Enterprise
4 ) Digital TV

Enterprise business provides end-to-end


The Digital TV business
com solutions to corporate customers and
provides
ional and international long distance services
telcos. Direct-to-Home TV services
across India.
Vision : 2010

Mission
: in fresh and innovative ways about the needs of
“ We at Airtel always think
our customers and how we want them to feel. We deliver what we promise
and go out of our way to delight the customer with a little bit more” .
Company Profile :

PARTNERS :
Network Equipment Mobile Services Nokia Siemens, Ericsson, Huawei
Telemedia & Long Distance Services Nokia Siemens, Juniper, Cisco, Alcatel
Lucent, ECI, Tellabs
Information Technology IBM
Call Centre Operations IBM Daksh, Hinduja TMT, Teleperformance,
Mphasis, Firstsource & Aegis

Equity Partner {Strategic} Singtel


Group Companies :
Analysis of AIRTEL :
1)Product Life Cycle (PLC) Analysis.
2)SWOT Analysis.
3)BCG Matrix.
4)Porter Model.
5)Ansoff Matrix.
6)PEST Analysis.
7)Marketing Mix.
1 )Product Life Cycle
Thirteen Operator causing Ripple Effect & demanding for
Innovation/Renovation in “Saturated Indian Telecom Market “.
Sales and
Profits (Rs.) Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments (Rs.)

Sales and Profits Over the Product’s Lifetime


2) SWOT Analysis:
S: Strengths
First Mover Advantage.
Highly Focused on Indian Telecom Market.
Leadership in fast growing Cellular Segment.
PAN India Footprint.
Heavy Brand Promotion Strategy.
Huge Network Coverage.
Proactive & Innovative Service
Strong Financials
Truly India’s first Global telecom player.
India’s first fully integrated telecom player.
Famous for Minute -Factory Model.
Best Outsourcing Model.
Airtel is another name of “Trust “& “Ethics “.
Highly Successful in the minds of Common Man.
Strong Network Coverage is helpful to earn more than 60 % Revenue from
Rural Sector.
The Game Changer Leader (founder & Promoter) Sunil Bharti Mittal who is
known for “Transformational Changes “.
W: Weakness
Outsourcing of Core Systems.
Premium priced products, hence can’t compete in low
price segment.
No separate strategy for rural market (Untapped Rural
Market).
Distribution channel is not accurately categorized.
Purely GSM Player affected by Consumer Switching
Behavior gives opportunity to CDMA
Player Stickiness due to Handset.
Loosing Grounds among Teens & Youth against Virgin
Mobile.
No Free Local Calls & STD Calls Packs offered by it.
Small Players giving Strong Competition in Different
Segmentation like Call Rates , GPRS , SMS Packs,
Broadband Internet (High Speed Data Cards) &Other
Value Added Services.
O: Opportunities
Airtel’s business has ample scope for gaining market share from the
unorganized sector.
Rural penetration too holds vast potential to bring about growth.
There is a lot of scope of product and market diversification.
Teledensity is still 47 % in 2nd Fastest growing Telecom Market in India.
Still Huge Population is Untapped.
3G & WiMax Technology will Boost Product Life Cycle of Telecom Sector.
If Consolidation happens in Next Few Years for Mega Mergers & then Global
Mergers ,Airtel will be in World’s Top 3 Rank by present 5th Rank.
Low Broadband Penetration in India only 9 Million Users producing huge
opportunities for GPRS Service.
M-Banking, M-Commerce & M-Gaming are the Next Engine of Growth in
Data Communication in VAS.
T: Threats
•India centric – Major revenues from India
•Falling ARPU & AMOU
•Intense Competition from 13 Existing Players & Shortage of Bandwidth.
•Role of Government Policy
•Saturation in Basic Voice Service. Landline Connection is already in its
Declining Stage.
3 ) BCG MATRIX :
M
A
R
K
E H
AIRTEL BSNL
T I
VODAFONE IDEA
G G
RELIANCE CELLULAR
R H AIRCEL
O
TATA
W
INDICOM
T
L
H
O
Ra
W
te
in VIRGIN
% MOBILE

HIGH RELATIVE MARKET SHARE LOW


HIGH BCG Matrix for Bharti Airtel :

Mobile Services
DTH & IPTV

Broad Band
LOW

HIGH LOW

46
4 ) Porter's Five Force Analysis :
1. Competitive Rivalry within an Industry
HIGH

• Thirteen Players in Saturated Indian Telecom Market causing “Battle of Brands


“with Paisafication strategy.
• New Players with Negative Cash Flows causing to Innovation/Renovation to be in
the Telecom Market.
• “Tariff War “causing Cutthroat Competition to Survive & in adding 1st time User.

Customer Bargaining Power HIGH

•Lack of differentiation among Service Providers


•Cut throat Competition
•Low Switching Costs
•Number Portability will have Negative Impact
•Businesses & Consumers
3. Suppliers Bargaining Power LOW
4. Threat of Substitutes HIGH

 Landline DIMINISHING
MARKET
 CDMA
 Video Conferencing BROADBAND
 VOIP - Skype, Gtalk, Yahoo MessengerSERVICES

 e-Mail & Social Networking Websites


5. Threat of New Entrants LOW

• Huge License Fees to be paid upfront & High gestation period


• Entry of MVNOs & WiMAX operators
• Spectrum Availability & Regulatory Issues
• Infrastructure Setup Cost - High
• Rapidly changing technology

50
Porter’s Generic Strategy :

Porter has identified three


types of generic strategies
that help a firm to cope
with competitive forces
and outperform other firms
in the industry.

These strategies are:-


1. Overall Cost leadership
strategy
2. Differentiation strategy,
and
3. Focus strategy
5) ANSOFF MATRIX

Market Penetration:

Entered in Broadband and fixed


line market.

Market Development:

Looking for overseas market.

Product Development:

IPLC products.

Diversification:

Outsourcing.
6) PEST Analysis
 It is the technique of environmental scanning of any Industry on
the basis
of the factors like
PEST Analysis of Indian Telecom Industry :
Political Factors
oAntitrust Regulations
oEnvironmental
oProtection Laws & Tax Laws
oSpecial Incentives
oForeign Trade Regulations
oAttitudes toward foreign Companies
oLaws on hiring and promotion
oStability of government
PEST Analysis of Indian Telecom Industry :
•Economical
GDP trends Factors
• Interest Rates
• Money Supply
• Inflation Rates
• Unemployment levels
• Price control
• Devaluation / Revaluation
• Cost
Analysis of Indian Telecom Industry : Socio Cultural Factors

• Lifestyle Changes
• Career expectation
• Consumer activism
• Rate of family formation
• Growth rate of population
• Age distribution of population
• Regional shift in population
• Life expectation
• Birth rates

PEST Analysis of Indian Telecom Industry : Technological


Factors
• Total Government spending for Research & Development
• Total Industry spending for Research & Development
• Focus of Technological efforts
• Patent Protection
• New Products
• Technology transfer from lab to marketplace
• Productivity improvements through automation
• Internet availability
7 ) MARKETING MIX : 4 P’s

P-Products.
P- Price.
P- Place.
P- Promotion.
MARKETING
MIX

PLACE
PRICE
Exclusive PROMOTION
PRODUCT Lower End
Showroom, Print Media,
Cell Phones Segment to Super
Shopping Mall, Mass Media &
Premium End.
Chain Store Electronic Media
4 P’s
Product
• Airtel Pre-paid
• Airtel Post-paid
• Blackberry Wireless Handheld Value Added Services (VAS)
Price
• Customer based pricing strategies.
• Flexible pricing mechanism Controlled by TRAI.
.
Place
• It has wide and extensive presence even in the remotest areas
• Airtel Customer Care Touch Points Distributors like: Paan shops, grocery
stores, chemists, outlet etc.
Promotion
• Large scale print and video advertising.
• Big celebrities like SRK and Sachin are roped in to endorse the product.
• In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune
is perhaps the most downloaded tune in India. Provides innovations such
as Bollywood movie premiers, music services such as ring back tones.
Growth Factors :

Enterprise
Telecom
Services
Managed
Services

Infrastructure GROWTH
Emerging Trends :

USSD

GPRS Voice

3G

SMS
MMS
Some Quick Facts :
opulation of India -120 Crore
otal Telephone Subscriber Base-621.28 Million.
ireline Subscription- 36.96 Million.
irless Subscription- 584.32 Million.
aodBand Subscription – 8.75 Million.
C Base – 35 Million.
ternet Users – 81 Million.
ternet Penetration – 7 % .
otal GPRS Base – 60 Million.
nly 4 % of the 36 Million Activate
ernet Users.

ndia access the Net over Cello phone


e a Month.
TERNET & MOBILE ASSOCIATION OF INDIA ) TRAI REPORT
IN 2009
Mobile Internet Users in India
Bibliography:
ON-LINE WEBSITE:

 TRAI: www.trai.gov.in
 COAI: www.coai.com
 DOT: www.dot.gov.in
 India Telecom News: indiatelecomnews.com
 Afaqs Telecom Yatra: telecomyatra.afaqs.com
 Google Search
 Airtel Website: www.airtel.in

NEWSPAPERS:
 The Times of India
 The Economic Times

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