Marketing report mobile service industry (1)


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Marketing report mobile service industry (1)

  1. 1. Executive SummaryThe mobile services industry is one of the fastest growing industries in Sri Lanka withover 14 million users. The industry provides telecommunication and informationservices, including voice calls, short message service (SMS), internet access, pictureand video messaging, and other data services, to 90 percent of the Sri Lankanpopulation.Due to the ubiquity of mobile phones, mobile service providers can play a key role inhelping to shape a more sustainable society. Not only do mobile services providersbring access to telecommunications and information and that drives sustainabledevelopment in emerging markets, but these companies also develop products andservices that can enable a low-carbon society.The aim of this report is to assess the mobile industry‟s current state and develop abusiness rationale and framework for sustainability that fits the unique needs of themobile services industry. In addition, recommendations are given that can further themobile industry‟s sustainability agenda.Mobile Services Industry Background The mobile services industry is defined asthose companies, which together enable the provision of telecommunication,information, and entertainment services including voice, internet, SMS, text, andother data services.It is comprised of thousands of companies offering mobile services worldwide; someof the largest include Mobitel, Dialog, Airtel, and Etisalat. Mobitel is narrowly thelargest mobile operator by revenue. However, Dialog is the largest in terms ofsubscribers and coverage, with over 1.5 million subscribers.
  2. 2. Table of ContentsChapter 01 1. Introduction to the Local Industry 2. Mobile service providers- Industry overview 3. Introduction to the Business Environment 4. Importance of Business Environment 5. New Trends in Business Environment 6. Macro Environment implication on Mobile service providersChapter 02 7. Latest changes in Macro Environmental factors (Last five years) I. Latest changes in Political and Legal factors II. Latest changes in Economic factors III. Latest changes in Social-cultural factors IV. Latest changes in Technological factors V. Latest changes in Natural factors VI. Latest changes in Demographic factorsChapter 03 8. Marketing Mix strategy on Mobile Service providers 9. How they overcome these challenges (During the last five years) I. Political and Legal factors II. Economic factors III. Social-cultural factors IV. Technological factors V. Demographic factorsChapter 04 10. Recommendations for the Mobile Service Providers 11. Conclusion
  3. 3. Introduction to the Local IndustryWhat is an Industry?Any type of Economic Activity producing GOODs or SERVICES.It is part of a chain – from raw materials to finished product, finished product toservice sector, and service sector to research and development.It includes AGRICULTURE, MANUFACTURING and SERVICEs.Types of industryAccording to the Central Bank annual report in Sri Lanka there are four types ofIndustry: Mining and Quarrying Manufacturing (i.e. processing of agricultural products, Factory industry, Cottage Industry) Electricity, Gas & Water Construction
  4. 4. Mobile Service Industry Overview.Mobile industryit has been observed that in the history of the telecom industry, mobiletelephony has made a greater difference to the lives of morepeople, more quickly thanany other technology.As the mobileindustry globally crossed five million subscribers in 2010 - animportantmilestone - the prospect of a whole world consisting of networkedpeople isbecoming a real possibility.The International Telecom Union (ITU) predicts thatwithin the nextdecade, if not earlier, global teledensity will surpass 100%. Thatwouldhowever not mean that everyone has a phone, because many mayhave morethan a single handset or multiple SIMs.However, withmobile technology spreading fast due to growing affordability andeaseof adaption, at the current rate of mobile phone adoption, itis likely that sooner thanlater, anyone who wants a mobile phonewill have one.And as mobile networks widely offer 3G broadband,everyone will have access to theInternet, and as expressed by theITU, that would mean “mobile telephony would havedone morethan anything else in history, to advance the democratization oftelecoms,and all that comes with it.”An interesting development is that the reducing prices andsizeof Mobile Phones and the increasing power and versatility of the mobilehandsets,is leading to the Mobile service providers and the mobile handset converginginto anew range of devises that combine power, versatility andgreater portability.This convergence has increased the power of themobile handset producers who arebecoming the axis around whichoperators, platform vendors, software and applicationdevelopers,operating system developers, standards alliances andChip/Processormanufacturers etc. are building their businesses.Implications of thatdevelopment can be significant, and a potentialConsequence could be the possibilityof the importance of voicecalls as a source of revenue declining and stress on therevenuestreams of operators being applied by the handset manufacturers.The challenge then is for the mobile operators to assiduously reviewtheir existingbusiness models and redefine their game plan to matchthe emerging challenge. An
  5. 5. inactive or “sleepy” operator wouldobviously be left behind, and the future readyoperator would bebest placed to take on the future. For Srilankan Mobile serviceproviders then, these would beinteresting times. Mobitel Subscriber growth 3500 3238 3000 2769 2516 2500 2000 1668 Subscriber growth in 1500 1291 mobitel 1000 500 0 2006 2007 2008 2009 2010 Dialog subscriber growth 8000 6950 7000 6100 6000 4900 5000 4200 4000 Dialog subscriber 2700 3000 growth 2000 1000 0 2006 2007 2008 2009 2010MOBITEL
  6. 6. Mobitel was incorporated in 1993 as the second mobile telephone provider in the SriLankan market. Originally collaboration between Sri Lanka Telecom and Telstra,Mobitel has been wholly owned by SLT since November 2002. The company sloganis "We Care Always."Mobitel is considered to be the countrys most dynamic mobile telephone operator andis known the National mobile service provider in Sri Lanka. Since being acquired bySri Lanka Telecom in 2002, it has grown in leaps and bounds and is now on partechnologically with the very latest in the telecommunications industry.The company is continuing on its strategy which is positioned around „valueinnovation‟ and „customer centricity‟. Mobitel has a very strong brand image, withhigh visibility at strategic locations.Mobitel has shown their competitive position over the years in terms of formidabledistribution, product suit and brand. The features and benefits built into the packagesthat they offer are all designed carefully, with the customers best interest regardedhighly.Following the successful implementation and operation of an AMPS/TDMA networkin the country, Mobitel launched its GSM operations in January 2004 with thedeployment of a fully-fledged GSM network in the 800 MHz and 1800 MHz band,which is EDGE/GPRS enabled. In 2005 and 2006, Mobitel traded the 800 MHz bandfor slots made available from the 900 MHz range. With this enhancement, Mobitelembarked on a field trial of 3G at the 1st International Buddhist Conference held in2006, setting the stage for the launch of its 3G services in Sri Lanka.Investments committed to date for this state-of-the-art technology to provide 3G andGSM totals over US$ 200 million. This included increasing the present number ofbase stations from 600 to 1,500 by the end of 2008.NetworkMobitel currently operates a 3.5G network with HSDPA/HSUPA support anddownlink speeds of up to 3.6 Mbit/s and uplink speed up to 1.00Mbit/s. According tospeed test.Mobitel is the operator to issue the fastest internet connections in Sri Lanka
  7. 7. via HSPA, while they have also fully tested out 42Mbit/s downlink HSPA MIMOtechnology in Colombo. It is also serving customers with over 1500 GSM and 4003.5G base stations island wide. On 6 May 2011, Mobitel became the first company inSouth Asia to trial a network based on 4G technology.Taffies and packagersMobitel offers SMART prepaid and Double M post paid packages, while the Upaharapackage was available for Sri Lankan government workers for a limited time period.Upahara offered up to five similar Subscriber Identity Modules to be used in thefamily of the principle customer, at lower rates.Value added servicesMobitel offers a variety of value added services: WAP,GPRS,MMS Closed User Group services, SMS banking, E-channeling, directories, M3 3.5G services (video calls, video message, HSDPA with uplink up to 1.00 Mbit/s and downlink up to 3.6 Mbit/s), Menu based services (OTA) which are updated to the SIM card, International Roaming facilities in over 180 countries while including special services such as the Voice Notification messages which alert a person on roaming status and other features such as Call Home and SMS Roaming. M-Fax M3 Apps (Powered by Google apps) M-tunes Live scores of cricket matches
  8. 8. DIALOGDialog PLC is Sri Lankas largest telecommunications service provider, whichoperates Dialog Mobile, the countrys largest mobile phone network with over 6million subscribers. Dialog is a subsidiary of Axiata Group Berhad and Dialog wasListed on the Colombo Stock Exchange in 2005 and was the country‟s first USD 1Billion market capitalized company on the Colombo Stock Exchange in termsof market capitalization. Hans Wijayasuriya is the Director/Group Chief Executive ofDialog plc.Dialog launched its services in 1995 as the 4th entrant to Sri Lanka‟s Cellular Marketand was the first digital network in South Asia. Dialog was also the first operator inthe region to deliver international roaming in 1997. Dialog Mobile presently has thelargest number of subscribers and revenue share.In 2010 the company received the highest "Platinum" rating in the countries first-everCorporate Accountability Index. The company operateson 2.5G, 3Gand 3.5G communications networks, and was the first company to launchcommercial 3G and HSPA+ operations in South Asia. In addition, Dialog recentlyannounced that the company has switched on its 4G LTE Network in Colombobecoming the first LTE pilot network in South Asia..In addition to its core business of mobile telephony, the company operates a range ofservices including Dialog TV, the countrys Direct To Home Satellite TV service andDialog Global which provides international telecommunication services. DialogBroadband offers fixed-line and broadband internet services, whilst Dialog Tele-Infrastructure is the company‟s national Telco communications arm.Dialog was the first mobile operator to cover the Jaffna peninsula in Northern SriLanka within 90 days of the ceasefire agreement in 2002 and again in 2009 was thefirst mobile operator to extend its GSM network to the areas in the North and EastProvince where the war was fought, and presently has 80% market share in the region.Dialog is an investor under the sponsorship of the Board of Investment of Sri Lankaand has invested over 1 billion US dollars towards the development of
  9. 9. telecommunications infrastructure in Sri Lanka, and is one of the largest investors inthe island while being the largest investor in the telecom sector. Dialog is also the official Sri Lankan partner of the mobile operator Vodafone.Dialog Mobile has island wide GSM coverage with over 2000 2.5G Sites. In additionDialog offers 3G and 3.5G coverage in Sri Lanka with over 1000 3G sites whichsupport video calls, mobile TV and broadband internet. In addition, Recently DialogLaunched a pilot 4G LTE Network becoming the first operator in South Asia to touchexposition of Long Term Evolution (LTE) service. Its 4G pilot network hasdemonstrated the delivery of over 100 Mbps in indoor demonstration mode and 40 –50Mbps under outdoor mobile conditions, from Colombo 1 to Colombo 4.
  10. 10. AIRTELAirtel Lanka Limited is a subsidiary of BhartiAirtel Limited, the fifth largest mobileoperator in the world, with approximately 200 million mobile customers as of October2010. BhartiAirtel has been featured in Forbes Asias Fab 50 list, rated amongst thebest performing companies in the world in the Business Week IT 100 list 2007, andvoted as Indias most innovative company in a survey by The WallStreetJournal.AmaliNanayakkara is the CEO of Airtrl Sri Lanka.Airtel Sri Lanka commenced commercial operations of services on 13 January 2009.Granted a license in 2007 in accordance with the Sri Lanka Telecommunications ActNo. 25 of 1991, it is also a registered company under the Board of Investment SriLanka. Under the license, the company provides digital mobile services to Sri Lanka.This is inclusive of voice telephony, voice mail, data services and GSM basedservices. All of these services are provided under the airtel brand.Airtel Sri Lanka as nationwide coverage and holds 1.4 million subscribers as ofSeptember 2010.Before launching services officially, Airtel opened up their branch offices island wideand allowed customers to book their number beforehand. Forms were given at allbranch offices and customers were given an option of choosing five numbers, out ofwhich one number was given based on availability. This booking system started onJanuary 5 and was expected to close on January 9 but all numbers had been booked byJanuary 8, according to notices displayed on the doors of the branch offices.Airtel currently uses GSM and UMTS/HSPA technologies. Initially Airtel wasoffering cheapest Mobile broadband plans starting at 5GB for Rs.299/- but later itdiscontinued due lack of International bandwidth and financial loss it had incurred.Only major cities like Colombo, Kandy , Galle and Ampara are covered by 3.5Gnetwork.Airtel is improving their GSM coverage rapidly and they have 1000+ Base Station onoperation island-wide, but they havent taken any steps on widening their 3G coverageever since their launch. Airtel started their service in Northern Sri Lanka on October2010.
  11. 11. Airtel Sri Lanka received many legal threats from other operators as Airtel started tooffer cheaper call rates. This led the industry to a price war and all operators includingAirtel itself had posted a significant loss in the year of 2009.On July 15, 2010, TRC (Telecommunication Regulation Commission) implemented afloor price to all the operators to overcome the price war. All the operators increasedtheir call charges except Airtel which filed Fundamental Rights request in highestCourt on July 19, 2010 saying that this new floor price is unfair to the newcomer tothe industry. But, this petition got rejected by the Supreme court.So, Airtel revised their tariff on August 3, 2010 for new customers, as previously theyoffered 49 cents/min within the network now its Rs. 1/min and no changes to othernetwork call as they offered Rs. 2/min earlier also.
  12. 12. ETISALATSri Lankas first Cellular networks, then called Celltel inaugurated its operations in1989. A brand name change was done on the 25th of January 2007 and thereafternamed "Tigo" and this was transformed with Milicom disposing its Asian operations.they are now a company fully owned and operated by the giant Telecom EtisalatTelecommunication Corporation in the UAE. It has extended operations in Egypt andSaudi Arabia in the Middle East and further into Asian markets such as India,Pakistan, Afghanistan, Indonesia and now Sri Lanka, recording over 100 millionsubscribers across 18 countries offering opportunities for synergy with our otheroperations in the region. Etisalat officially commenced its operations in Sri Lanka onthe 25th of February 2010.Etisalat is consistently providing not only the widest coverage and an unprecedentedservice, but also a host of other Value Added Services. We are dynamic and treat ourcustomers as our own, and consider customer service as our first priority.The slogan of our operations is, "Its About You!" as they make public an selection ofservices to match the hearts of their customers.Their value and nurture the energy anddynamism needed to achieve the very best in business. They look forward to futurechallenges and opportunities.As a company, they are welcoming, sociable andfriendly to customers, suppliers.Their aim is to open up opportunities and to actively help people reach their goals.They always deliver what we say we willed employees. They deal with people in aclear, direct way and are always honest and fair in business dealings.Today Etisalat operates in a world where peoples reach is not limited by matter ordistance. They are reaching out to where it matters because with Etisalat „it‟s aboutyou‟. As a responsible business entity Etisalat strives to go beyond the required normto make a positive impact on society and the environment.
  13. 13. Through their management and operations they ensure that whatever they do, set outto demonstrate their commitment and respect to all of thier stakeholders, communitiesand environment. Their CSR initiatives focuses on community based investmentprogrammes and sponsorships. Their management and staff engage themselves withthese community projects through professional service, as a result a continuouscommitment towards CSR initiatives are seen and demonstrated across the company.Etisalat carries out a range of CSR initiatives which range from both medium-to-longand short-term projects, namely Education, Community/Livelihood Development,Environment and Disaster Relief.
  14. 14. HUTCHHutch mobile telecommunication provider offering customers a range of value-formoney GSM services fulfilling the diverse needs of all segments. HutchisonTelecommunications Lanka (Pvt) Ltd. (“Hutchison Telecom Lanka”) launched itsGSM service in 2004, and has continuously been investing in the expansion ofnetwork coverage with the aim of being a nationwide operator in Sri Lanka.Hutchison Telecom Lanka is a member of Hutchison Asia Telecom which comprisesmobile telecommunications operations in the emerging markets of Indonesia, Vietnamand Sri Lanka. Hutchison Asia Telecom is a key part of Hutchison Whampoa Group‟stelecommunications division which includes the 3 Group comprising 3G operations inAustralia, Austria, Denmark, Hong Kong, Ireland, Italy, Macau, Sweden and the UK.
  15. 15. Business EnvironmentThe business environment is the aggregate of all conditions, events, and influencesthat surround and affect a business firm. Business environment generally refers to theexternal factors affecting, either positively or negatively, the operation of a firm. Themost important external factors include economic, legal, political, social andtechnological factors. The environmental factors influence almost every aspect ofbusiness, be it its nature, its location, the prices of products, the distribution system, orthe personnel policies.Business environment is classified as follows: -(a) Internal Environment: These are the environmental factors which include:- 1) Man 2) Machine 3) Material 4) Management(b) External Environment: they are classified as Macro Environment a) Government b) Political factors c) Social factors d) Cultural factors e) Demographic factors f) Economic factors Micro Environment a) Human resources to include jobs, hygiene, security b) Company Board c) Management structure
  16. 16. The Micro EnvironmentThe microenvironment can be separated into the internal environment and the externalenvironment. The internal environment consists of the firm‟s own managementstructure, the organization‟s strategies and objectives, and the departments within thecompany. The characteristics of the firm‟s internal environment affect its ability toserve its customers. The external environment comprises suppliers, marketingintermediaries, customers, competitors and publics. As well as obvious groups such asshareholders, publics can also include local interest groups who may have concernsabout the marketer‟s impact on the environment or on local employment.The Macro EnvironmentChanges in the macro-environment may not be as close to the marketing firm‟s day-to-day operations, but they are just as important.(Often referred to as the „PEST‟ factors in the marketing analytical context, a usefulaide-memoire, although in some texts it is sometimes referred to as „STEP‟). To thisis sometimes added „Competitive factors‟ and although „PEST‟ analysis relates to aspecific organization „Competitive factors‟ tend to be subsumed under „Economicfactors‟. Such a PEST analysis means listing all possible points, which may affect theorganization under review of the each P.E.S.T. headings. In order to correctlyidentify opportunities and monitor threats, the company must begin with a thoroughunderstanding of the marketing environment in which the firm operates.
  17. 17. The success of every business depends on adapting itself to the environment withinwhich it functions. For example, when there is a change in the government policies,the business has to make the necessary changes to adapt it to the new policies.Similarly, a change in the technology may render the existing products obsolete, aswe have seen that the introduction of computer has replaced the typewriters; the colortelevision has made the black and white television out of fashion. All these aspects areexternal factors that are beyond the control of the business. So the business units musthave to adapt themselves to these changes in order to survive and succeed in business.The term „business environment‟ connotes external forces, factors and institutions thatare beyond the control of the business and they affect the functioning of a businessenterprise.These include customers, competitors, suppliers, government, and the social, political,legal and technological factors etc. While some of these factors or forces may havedirect influence over the business firm, others may operate indirectly. Thus, businessenvironment may be defined as the total surroundings, which have a direct or indirectbearing on the functioning of business. It may also be defined as the set of externalfactors, such as economic factors, social factors, political and legal factors,demographic factors, and technical factors etc., which are uncontrollable in nature andaffects the business decisions of a firm. Social factors Politicalfacto rs Economic Macro Legal factors factors Environment Factors Technical Demographic factors factors
  18. 18. IMPORTANCE OF BUSINESS ENVIRONMENTThere is a close and continuous interaction between the business and its environment.This interaction helps in strengthening the business firm and using its resources moreeffectively. The business environment is multifaceted, complex, and dynamic innature and has a far-reaching impact on the survival and growth of the business. To bemore specific, proper understanding of the social, political, legal and economicenvironment helps the business in the following ways: a) Determining Opportunities and Threats: The interaction between the business and its environment would identify opportunities for and threats to the business. It helps the business enterprises for meeting the challenges successfully. b) Giving Direction for Growth: The interaction with the environment leads to opening up new frontiers of growth for the business firms. It enables the business to identify the areas for growth and expansion of their activities. c) Continuous Learning: Environmental analysis makes the task of managers easier in dealing with business challenges. The managers are motivated to continuously update their knowledge, understanding and skills to meet the predicted changes in realm of business. d) Image Building: Environmental understanding helps the business organizations in improving their image by showing their sensitivity to the environment within which they are working. For example, in view of the shortage of power, many companies have set up Captive Power Plants (CPP) in their factories to meet their own requirement of power. e) Meeting Competition: It helps the firms to analyze the competitors‟ strategies and formulate their own strategies accordingly. f) Identifying Firm‟s Strength and Weakness: Business environment helps to identify the individual strengths and weaknesses in view of the technological and global developments.
  19. 19. New Trends in Business Environment 1) Increasing the age limit of a person therefore the demand for the healthy foods is increasing and smoking and liquor habits are decreasing. 2) In leisure time people like to spend in rural areas. 3) Demand for the take away foods are increasing. 4) People are addicted to do several works at the same time. 5) Increasing the number of nuclear families in the society. 6) Females are the dominant partners in the workforce. 7) Knowledge of the consumer behavior is increasing. 8) Marriages are postponed by younger people, because of the higher education. 9) People are more aware about the concept of SOS- Save Our Society. 10) Increasing the number of elderly people of the society, because of that people are more attracted to the beauty cultural activities.
  20. 20. Latest Changes in Macro Environmental FactorsChanges in Political and Legal FactorsPolitical changes in the country have also meant that these markets are now open tomarketers from around the country.Opportunities for industry. 1. Providing free laptops to undergraduates in local universities & making it a computer literate society 2. Reduction of Tax‟s on electronics making the data / handset units much more affordableThreats for industry 1. Ad-hoc changes in government regulations impacting penetration promotions 2. Government protection by the use of license.A lot of new license and consumer protection schemes are introduced by thegovernment. 3. Increasing the pressure groups.Pressure groups are more affected to the companies and marketers because they try toachieve their targets without or with political support. (Eg: Environment groups.Consumer groups, religious groups, Etc.) 4. International tariffs, rules and regulations. 5. Pressure from Political groups.Been unable to make full use of economies of scale due to restrictions from thegovernments which are in place to reduce price war among telecommunicationoperators
  21. 21. 6. Government initiatives of increasing data feasibility & the amount of effort taken in terms of tackling low speed service providers and penalizing them to increase speeds. 7. Growth of Legal and Regulatory Risks.Mobile service providers are faced with the risk of changes in the regulatoryenvironment. Some of their activities continue to be subjected to significant price andother regulatory controls which may affect their market share, competitive positionand future profitability.The revenue of their organizations can even be adversely affected by the recentlyintroduced price revisions of voice services, broadband services, leased circuits andbackhauling services where the prices had to be slashed down due to market andregulatory pressures towards the achievement of government objectives of increasingbroadband penetration in the country.
  22. 22. Changes in Economic Factors.The economic environment is important to marketers because it affects the amount ofmoney people have to spend on products and services.Opportunitiesforindustry. 1. End of a 30 year civil war opening up two new markets in the Northern & Eastern Sri Lanka which strengthens the economic situation of the country. 2. Increase of per capita income levels in the country enabling consumers to reach the high cyber word. 3. Changes in workforce.A large proportion of women now go out to work. This has resulted in an increase inthe sales of mobile phones. Therefore this is also a greater advantage to the mobileservice industry. 4. Changes in interest rates and lending rates.The reduced lending rates and lower and stable inflation conditions favoured apositive business climate. 5. Reduction in taxes on the telecommunication sector.The decision by the government to simplify the tax structure particularly with regardto the telecom sector is a welcome move.The proposed tax modifications effectively favours the mobile subscribers and wouldpotentially stimulate higher mobile usage, hence improved revenue of the mobileoperator. The removal of VAT as part of the revised concessions to the subscriber,although enhances the customer affordability, would increase the cost structures ofoperators as recovery of input VAT would be constrained.Threats for industry. 1. Changes in National income and inflation. 2. Changes in income levels of people. 3. Growth of marketing risks.While there are many factors which contribute to the high level of competition, theprominent factors include technology substitution, market and service convergence,customer churn, declining levels of market differentiation, declining market growthrates, regulatory intervention which is focused on promoting competition, and the
  23. 23. emergence of competitors with distinctive and non-replicable sources of competitiveadvantage. 4. Revenue growth.Mobile service providers face a number of challenges in relation to growing revenues.A distinct challenge is that their voice and connectivity business is a mature businesssubject to price deflation and declining or negative market growth rates leading todeclining revenues, margins and cash flow. The net effect is that they increasinglyhave to look beyond the voice market to secure profitable revenue growth fromadjacent markets, both inside and outside the country.
  24. 24. Changes in Social-cultural Factors.People‟s opinions and tastes are shaped by the society in which they live. It should benoted that societies are not made up of homogeneous populations. They contain sub-cultures, which are beliefs and values shared by smaller groups of people. Suchgroups may arise out of a common race, religion, social activity or hobby. Sub-cultures are important to marketers insofar as they may have different consumptionhabits from the rest of the population.Opportunities for industry 1. Shift of life style across the country due to improved media, technology and communication. 2. New generations born with utmost technology around them create opportunities for mobile broad band services to grow. 3. Social networking & new media such as face book / SMS over internet / Multimedia services has gain popularity among general public across the country. 4. The mobile youth culture Mobile communication and the social consequences associated with it areexperienced by individuals of many walks of life – young, old, rich, poor, themobile phone can serve as a status symbol and article of fashion for itsusers in general.Young people have especially come to be embracing the technology for itssymbolic significance. The mobile phone has become anicon for contemporary teens in many countries.
  25. 25. Changes inTechnological FactorsMobile service firms usually have a huge base of complex legacy systems. Thesesystems are disparate with their own data. Integration (system and data) of suchsystems has been a problem. All this has a heavy toll on Customer loyalty, Productlifecycle management, and Process improvements.Opportunities for industry 1. Extensive use of technology in Education systems / Communication systems / Manufacturing / Medicine etc needing data services 2. Greater emphasis on Research and Development. 3. Increasing the technological Innovations mobile service industry. 4. Spreading of Digitalization all over the country. 5. Increasing the Hi-Technological instruments,High Adoptability to technology. 6. Internet Facilities are spreading in rural areas. 7. Mobile Phone users are increasing day by day.Threats for the industry. 1. Capacity Limitations.Not having developed fiber infra‐structure and 99% MW are used for backhauling(Limited capacity) 2. Power availability Issues.Mobile base stations are located in hill areas and the National grid is not availablealso the High cost (Diesel generators) and No developed green energy system(Solarand wind ) 3. Network problems.Network operations are usually designed to address frequent disruptions caused byequipment failures. Sometimes the Mobile service companies do not address thecatastrophe level incident like fire, earth quake etc.
  26. 26. ChangesinNatural EnvironmentThis is important to Mobile service industry insofar as it is the source of many rawmaterials and fluctuation in supply can affect the prices paid for purchases.Opportunities for the industry. 1. Increasing trend of paperless environments is supported by data & internet 2. Major global concern.Global interest on carbon foot print encouraging more and more use of computer ande communication.Threats for the industry. 1. Containing costs while delivering increasingly more complex services and providing a consistently higher level of customer service across wide geographical areas. 2. Increased in energy cost.The increased cost of energy is also having an effect on the types of products thatappeal to consumers. 3. Scarcity of resources. 4. Storage of raw materials. - Due to inflation.
  27. 27. ChangesinDemographic FactorsThe demographic environment itself is affected by changes in the mix of age groupsin the population. If the population becomes older, this will lead to rising demand forproducts and services consumed by older people and a similar fall in demand forproducts consumed by younger people.Demographic environment is also affected bythe level of education in a country, since changes in education have an impact on thewealth of a nation and the tastes of its people. The lifestyles of a population also havean impact on the Macro environment to the mobile service industry.Opportunities for the industry. 1. Changes in family structure and the population.In the mobile sector subscriber growth continued to be aggressive with the number ofmobile subscriptions increasing by 23% - 17.4 Mn. 2. The fast return to normalcy of the North and East and overall tensionfree conditions in all parts of the country offered greater momentum for business expansion.The promise of the potential emanatingfrom the opening of hitherto unexploredgeographical areas of thecountry has led to all mobile service operators racing tocapture pieces ofthe unfolding markets, and Mobile service providers too with analready establishedfoothold in those markets will accelerate and execute planstofurther strengthen its position. 3. Increasing the ICT literacy level in Sri lanka.The Signals to the government‟s intention to fast develop the ICT literacy level of thecountry, which in turn would function as a multiplier in the country‟s economicgrowth process.
  28. 28. How They Overcome Those Challenges During The LastFive Years.Sri Lanka‟s Mobile communication industry has been a trailblazer in the South Asianregion, being the first to introduce latest technologies in the market-be it GSM(Global Standard for Mobile) telephony. All companies try to change. Because theywant to stay in the market in long time and earn more profits. Every time customersthink that what service providers gives more benefits. But in the present a researchsays that people think dialog is the most profitable and useful service among theother‟s services.Political and legal factorsRates are deducted because of the new rules and regulations. MOBITEL introduced an M Best Friend (MBF) Two Mobitel numbers as My Best Friend (MBF) numbers.24 hours of the day outgoing (Voice/Video) calls to My Best Friend numbers at Rs. 1/- for the 1st minute, 75 cents for the 2nd minute and 50 cents per every minute thereafter. SMS to My Best Friend numbers are at 25 cents per message. In the first time in the mobile industry of Sri Lanka Aritel offered earn super points on every incoming call from another network to the Airtel. All companies try to attract more customers. In Hutch Company introduce with this great per minute prepaid plan, customers get 60 minutes and 50 SMS free for a day, for a daily charge of just Rs. 12. ETISALAT offer new packages for their customers. These are their packages.
  29. 29. DiscoverMonthly Subscription FREEPrice Rs. 1(E to E)Price Rs. 2(Other Networks)SMSEtisalat to Etisalat 10 centsEtisalat to other networks 25 centsDreamFree Outgoing mins 175(E to E 75 - Other Networks 100)Price Rs. 2 per min(To any local network after your free minutes are used up)Price Rs.1(E to E - After your free minutes are used up)Subscription Rs. 275SMSEtisalat to Etisalat 10 centsEtisalat to other networks 25 centsSuccessFree outgoing mins 350(E to E 150 - Other Networks 200)Price Rs. 2 per min(To any local network after your free minutes are used up)Price Rs.1(E to E - After your free minutes are used up)Subscription Rs. 550
  30. 30. SMSEtisalat to Etisalat 10 centsEtisalat to other networks 25 centsReachFree outgoing mins 700(E to E 300 - Other Networks 400)Price Rs. 2 per min(To any local network after your free minutes are used up)Price Rs.1(E to E - After your free minutes are used up)Subscription Rs. 1100SMSEtisalat to Etisalat 10 centsEtisalat to other networks 25 cents Talk to 120 friends in ETISALATit‟s for just Rs.1 a Minute. Now we can build conference room. These are the AIRTEL‟s new packages for their customers. Package Celebration Celebration 600 Unlimited 300ACTIVATION FEE Rs. 500 Rs. 500 Rs. 500MONTHLY Rs. 300 Rs. 600 Rs.1,499COMMITMENTFREE DATA BUNDLE 1GB 3GB UnlimitedCHARGES FOR USAGE 60 cents per 60 cents per MBABOVE FREE BUNDLE MBSMS (A2A, A2O) 10 cents, 25 10 cents, 25 10 cents, 25 cents cents centsSPEED Downlink 3.6 Mbps 3.6 Mbps 1.8 Mbps Uplink 384 Kbps 384 Kbps 384 KbpsFAIR USAGE POLICY Not Applicable Not Applicable Applicable
  31. 31. HUTCH offered a new bonus reload Rs. 199 and get Rs. 300 worth of IDD.To increase the facility of high speed internet for their customers. They offered new data packs to Airtel customers For the first time in Sri Lanka, get all sorts of mobile applications that customer want at Etisalat App zone. Now customer can enjoy with games, alerts, horoscope apps, sms to email, travel apps, voting apps, funs apps and much more.
  32. 32. They introduced the Mobitel 3G delight BB. Now, make high-speed netsurfing a reality with Mobiltel. Get onto the Internet directly on the mobilephone or use the USB High Speed Internet modem on the desktop/laptop. Allcustomers need is the 3G Delight suite of services from Mobitel
  33. 33. Economic FactorsMobile service providers entered in to the new market in northern Sri lanka. Now Airtel 3G is available in the North science august, bringing you closer to the things you love. In Northern Sri Lanka. They introduced a new Top up for Rs. 98 and enjoy Rs. 150 worth IDD TALK TIME on the Airtel. It‟s valid for a month.To reduce the market risk they sell mobile Phones with more benefits. As well as they offered a star points methods. Winners can get Samsung galaxy tab10.1 and Samsung galaxy sill. ETISALAT introduced the new unbelievable offers to HNB credit card holder. Now customers can buy black berry cure 8520, 9300 phones and bold 9700 and torch 9800 phones by using their credit card. As well as their customers can save money 50%.
  34. 34. ETISALAT introduced the Huawei IDEOS X3. It‟s only available with Etisalat. It has more facilities. MOBITEL offered the Pre-paid Broadband Smart Dongle for just Rs. 3490 in July. As well as Mobitel introduced a srilanka‟s first 3D Smartphone partnership with Abans.It‟s the world‟s first “tri-dual” architecture. It has more facilities. There are 1GHZdual core, dual channel processors, 8 GB memory and 4GB LP DDR2, 3Drecording, viewing and sharing. HUTCH offered 10% Bonus on Online Re-charge!
  35. 35. ETISALAT introduced new refresh cards to the market ETISALATINTERNET PLUS +ETISALAT, DAILOG, MOBITEL, AIRTEL AND HUTCH have GeneralNews in Sinhala, English and Tamil medium.ETISALAT offered new Etisalat dongle for the lowest price in the marketrs.1999 in September.
  36. 36. Technological FactorsTo overcome from, increasing the Hi-Technological instruments, HighAdoptability to technology the mobile service providers used the followingmethods. MOBITEL was the first 3.5G operator in Sri Lanka and South Asia. It covers most of Sri Lanka with its GSM network. MOBITEL offers both prepaid and postpaid mobile services, along with mobile broadband services using the 3.5G network.Following the successful implementation and operation of an AMPS/TDMA networkin the country, Mobitel launched its GSM operations in January 2004 with thedeployment of a fully-fledged GSM network in the 800 MHz and 1800 MHz band,which is EDGE/GPRS enabled. In 2005 and 2006, Mobitel traded the 800 MHz band for slots made available from the 900 MHz spectrum. Dialog launched a pilot 4G LTE Network becoming the first operator in South Asia. AIRTEL lunched the M-commerce with Airtel. All Airtel customers who have an account at BOC or Commercial Bank now they can do mobile banking/ top-up their account and pay their bills. MOBITEL introduced 1717 the new Customer Care Hotline Number of Mobitel.
  37. 37. MOBITEL offered SMS with Gmail – Now we can send FREE SMS to yourMobitel friends via Gmail.DIALOG introduced a new Password method to protect our SMS InboxIn recently DIALOG offered Mobile TV, SMS banking, E- Channeling,Directories, Fax number for every service holder.ETISALAT launched new method in February 2011. With their Eze topservice now customer can send a reload to Etisalat friends anywhere in theworld. To send credit through eze top.
  38. 38. Social-cultural Factors Job alert service via SMS Etisalat Sri Lanka andDialog launches “Jobs Alert via SMS” service for its subscribers for the first time in Sri Lanka. The service is launched in association with Jobs website. Get instant SMS updates about the latest jobs on offer at Sri Lanka‟s premier online job portal Send text messages to any Dialog Mobile via your Google account, absolutely free. Latest gossips about of famous persons.
  39. 39. Demographic factors In 2009, Mobitel became the official sponsor of the Sri Lankan Cricket Team. And they launched a concept called I am Sri lanka. In first time MOBITEL launched of priority services for war heroes.
  40. 40. Due to changes in age mix and the changes in family structure they offer thesefacilities. HUTCH launched a couple package for monthly rental is rs.200. Their main target customers are young students. DIALOG offered free health tips till in November 24th
  41. 41. Recommendations for the Mobile Service Providers 1. Implementation of National fiber backbone & Develop fiber infra‐structure in the country. (fiber to sites) 2. Use of green power sources to reduce the cost of the added selling prices and call, sms and other charges, for that they can use :  Solar Power Solution  Solar‐wind Hybrid Power Solution  Solar‐diesel generator Hybrid Power Solution 3. More Infrastructure Sharing. 4. Because of the Limited stability for Mobile base stations in the market, should increase the number of Service providers to the industry. Because Mobile service industry is an oligopoly Market. 5. Advertising via MMS.MMS mobile marketing can contain a timed slideshow of images, text, audio andvideo. This mobile content is delivered via MMS (Multimedia Message Service).Nearly all new phones produced with a color screen are capable of sending andreceiving standard MMS message. Brands are able to both send (mobile terminated)and receive (mobile originated) rich content through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some networks, brands are alsoable to sponsor messages that are sent P2P (person-to-person).Mobile MMS videos increase user interest and boost direct response rates offeringmarketers and advertisers a viable mobile channel to deliver richer media content.
  42. 42. Increased Direct Response Rate Because of its interactivity, MMS videos increase user interest and boost direct response rates from people that are tired of just seeing boring text. Its also the perfect way to showcase to your customers that the business is on top of the latest technologies. Interactive MMS MMS creates a more interactive and emotional appeal on mobile devices compared to SMS through elements of sound, animation and images. MMS creates a modern mobile experience with powerful visual branding possibilities.6. Parent Guide- Find out all that customer need to know about bringing up children queries related to food, nutrition, growth, development, behavior patterns, disciplining, and more.7. Baby Names- Customer‟sprecious babies here and now it‟s time to find a suitable name. A name that reflects all emotions, hopes and aspirations of customers. Browse throughextensive listings and find the one that is perfect for customer‟s bundle of joy.8. Baby Care- Be aware of all the caregiving needed for bundle of joy food habits, immunization, safety, basic health tips, toys, and more. Keep baby healthy and happy.
  43. 43. 9. Recipes- Get to know the secret to make lip-smacking recipes from one of Sri Lankas most famous cooks and delight friends and family.10. Homemaker- Get tips on how to be frugal and organized in customer‟s homemaking skills. Know how to keep customer‟s home safe, comfortable and cozy and household running efficiently.
  44. 44. GROUP MEMBERS ChamudiHerath HD-UGC-102032 PavanChandrasiri HD-UGC-102012 AnushaniThilakarathna HD-UGC-102083 N Z Sapideen HD-UGC-102080 Ayesha Iroshani HD-UGC-102033 Prabashanawijesinghe HD-UGC-102093