Tata Docomo Report


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Tata Docomo Report

  1. 1. Summer Internship Report TATA DOCOMO Prashant Gautam
  2. 2. June 21, 2010 SUMMER INTERNSHIPREPORT 2 Table of Contents Acknowledgement………………………………………………………………………………….03 Executive Summary…………………................................................................................................04 OverviewofIndian Telecom Sector………..………………………………….….………………05  Indian Telecom Sector Overview………………………………………………………… 06  Major Policy Initiatives………………………………….…………………………………08  Latest Updates................................................................................................................09 Introduction to TATA DOCOMO…………………………………………………………….…10 3G Technology in India……………………………………………………………….................14  Future of 3G in India………………………………………………………………………15  Results of 3G Auctions……………………….……………………………………………16 Service Point Concept……………………………………………………………………………..20  Challenge in modern telecom industry - Customer retention………………………...21  TATA DOCOMO Service point Model……………………………………………...22  Service Points Location Across Gujarat……………………………………………...23 Key Responsibilities……………………………………………………………………………………………………………..25 Key Takeaways from the Project………………………………………………………………..28
  3. 3. June 21, 2010 SUMMER INTERNSHIPREPORT 3 Acknowledgement Exchange of ideas generates a new object to work in a better way. Whenever a person is helped and co-operated by other, his heart is bound to pay gratitude and obligation to them. An endeavor is difficult even to initiate without the help of many souls who are always there by the grace of god. I am honored to be attached with prestigious organization. I extend my sincere gratitude to the management of “Tata Teleservice Limited” for giving me an opportunity to work with them and assisting me in my project whenever required. I sincerely thank Mr.Yatender Sharma – Deputy Manager of Tata Teleservices Ltd. who spared his valuable time and gave me opportunity to work and undertake this project in Tata Teleservices Ltd. and guided me throughout this project. It would not have been possible for me to complete the project without his meticulous guidance and suggestions. I would like to express my sincere gratitude towards Mr. Niraj Mehta- Senior Manager, for providing me the opportunity to work and learn with him. I am extremely grateful to Mr. Saurabh Kumar-GM for inspiring me to strive to achieve the best in difficult situations. I would like to give special thanks to my Institute faculties specially Prof. Premchandrahas Sastry whose timely guidance and support at crucial junctures made the undertaking of this project an enriching learning experience. Last but not least I would like to thank all my friends who have been working with me in a special project, with their innovative ideas and suggestions.
  4. 4. June 21, 2010 SUMMER INTERNSHIPREPORT 4 Executive Summary The undergone project is a part of the Summer Internship project focused on Telecommunication sector. Telecommunication Industry is basically complex and fastest growing industry. The industry observes the maximum competition in terms of customer retention and better service. In the present scenario all the service providers are providing almost equal tariff rates, the only differentiating factor that works for the industry is the customer service. The key take away from the project was the High Quality Service Retail Experience. The profit of margin in the industry is diminishing and in that scenario providing excellent service to the customer adds u to tremendous cost. TATA DOCOMO’s Service Point model offers the solution to the problem. The report covers the operational aspects of operating the large number service points smoothly. The report presents the overview of Telecom Industry, Overview of TATA DOCOMO’s unique customer service model, 3G auctions, the various activities that TATA DOCOMO plans for the customer satisfaction and customer delight.
  5. 5. June 21, 2010 SUMMER INTERNSHIPREPORT 5
  6. 6. June 21, 2010 SUMMER INTERNSHIPREPORT 6 Talking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM ( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS (Public Mobile Radio Trunking Services), Fixed Line and WLL (Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase. The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world. Figures published by the Telecom Regulatory Authority of India (TRAI), reveal that the number of telecom connection subscribers in India reached 562.21 million in December 2009, marking a 3.5 percent increase over the number 543.20 million reported in November 2009. This figure indicates that the average teledensity (number of telephones per 100 persons) has gone up to 47.89. On account of a dramatic increase in the earnings from mobile and landline connections, the telecom industry in India made revenue of US$ 8.56 billion during the quarter ending on December 31, 2009 thereby witnessing a recovery from the economic downturn. Business Monitor International has stated that at present, India is adding up about 8-10 million mobile subscribers every succeeding month. Estimates have revealed that by June2012, almost half India’s population will be in possession of a mobile phone. This will result in about 612 million mobile subscribers, making up a teledensity of about 51 per cent by the year 2012. Over and above, a study undertaken by Nokia has brought out that the communications sector will grow as the single largest chunk of the India’s GDP making up about 15.4 per cent by the year 2014. Estimates made in February 2009 show that the Indian equipment market valued at US$ 24 billion, while Nokia was glowing as the market leader reporting more than US$ 3.4 billion revenues in 2008-09. Ericsson followed Nokia with revenue of about US$ 2.11 billion. The latest reports published by Evalueserve state that the availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services. This will take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013. Indian Telecom Sector
  7. 7. June 21, 2010 SUMMER INTERNSHIPREPORT 7 A Frost & Sullivan industry analyst has predicted that by the year 2012, revenues from fixed line subscriptions in India will reach up to US$ 12.2 billion, while the revenue from mobile connections will reach up to US$ 39.8 billion. In a significant step taken to boost up the auction of 3G spectrum, the Indian Government has permitted prospective bidders to call for short-term funds from the domestic market in the country, while allowing refinancing out of external commercial borrowings (ECBs) within a period of 12 months. Estimates show that the government can mop up US$ 7.53 billion from the auction of 3G spectrum to be completed shortly. The reserve price has been fixed at US$ 753.74 million. BSNL, the state-managed telecom operator has introduced 3G services in more than 318 cities benefitting 856,000 subscribers. BSNL has been venturing to cross more than 400 cities in the near future eventually rolling this service across 760 cities by September 2010. While the debate on 3G is seen continuing, TRAI has already started consulting on the next higher level of telecom services. 4G or the fourth generation enables downloads faster than all the earlier versions. Today, India is the largest market in the world adding up a dramatic number of about 20 million mobile subscriber lines every month in an average. On the other hand, the number of landlines is found gradually decreasing. At the end of the first quarter in 2010, we find that the overall telecom subscriber penetration has gone up by more than 52 %. Though this might occur as a relatively low volume compared with a number of other nations, this comes as a quantum leap noting the figures recorded a few years back. Mumbai and Delhi (NCR) enjoy the status among a few other metro areas around the globe boasting of more than 25 m mobile subscribers in each of these regions. At present, The FDI cap in the telecom sector in India is 74 %. In a recent move, UK’s Vodafone Group has purchased a 52 % stake in Hutchison Essar, the fourth largest mobile service provider in the country. Bharti Airtel has the credit of being the first Indian operator to cross a subscriber base of 50 million. It is predicted that mobile number portability (MNP) will be available throughout India by the second quarter of 2010, initially in the cities of Chennai, Delhi, Kolkata and Mumbai, the four metros of India. Also, 3G (third generation) mobile services are found being introduced in all the major cities across the nation. The country has auctioned three 3G spectrum slots to private bidders. Indian Telecom Sector Overview  Second largest Mobile Network in the world with more than 500 million wireless subscribers in the world.  Highest average growth of over 14 million subscribers per month, offering abundant opportunities for investment.  40% rural teledensity by 2012 -i.e. addition of over 160 million connections in rural India in next two years.
  8. 8. June 21, 2010 SUMMER INTERNSHIPREPORT 8  Target to provide optical fibre connectivity 250,000 village panchayats by 2012.  Target to achieve 20 million broadband connections by the end of 2010 from the existing broadband subscriber base of 7.5 million. Major Policy Initiatives Sharing of Infrastructure: The guidelines on sharing of telecom infrastructure to different service providers will facilitate to reduce input of telecom access service providers and facilitate considerable reduction in tariff as well as enhanced teledensity in rural areas. Telecom Centers of Excellence: The increased use of new technologies, the move towards corporatization, competition and the separation of regulatory functions from operational services require advanced level policy, regulatory, managerial and technological expertise. In order to develop and strengthen the capability to generate this expertise, Telecom Centres of Excellence (TCOE) have been established in Public Private Partnership (PPP) mode. The seven TCOEs at the premier academic institutes at IITs, IIM Ahmedabad & Indian Institute of Science, Bangalore supported by a major telecom operator have identified important projects in association with the industry and are working to generate a skilled talent pool, cutting edge research, customer centric regulatory framework and innovative business models for rural India with the ultimate vision to extend the education and economic benefits to the poorest of the poor through telecommunications. More than 70 R & D projects have been taken up in the areas of energy efficient devices & low backhaul for rural areas, network security, voice mail banking etc. TCOE India has been accepted by International Telecommunication Union as a valuator for its international mobile telephony cards data proposal for 4 G network. Mobile Number portability Service: Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number when they switch from one access service provider to another irrespective of mobile technology or from one technology to another of the same or any other access service provider. The Government has already announced the guidelines for Mobile Number Portability (MNP) Service License in the country on 1st August 2008 and these services are slated to be introduced by middle of the year 2010. Foreign Direct Investment: Actual FDI received in telecom sector from April 2000 to October 2009 is Rs. 38,345 crore, which is 9% of the total FDI inflow in the country. Production of Telecom equipments in the country during 2008-09 is Rs. 48,800 crores and during 2009-10 (projected) is Rs. 57,500 crore with 18% CAGR. For boosting the export of Telecom equipments and services, Telecom Equipment and Services Export Promotion Council (TEPC) have been set up. India’s export of telecom items during 2008-09 was Rs. 11,000 crores and is expected to further increase to Rs. 13,250 crore during 2009-10 with 25% CAGR.
  9. 9. June 21, 2010 SUMMER INTERNSHIPREPORT 9 Latest Updates Telecom Subscription Data as on 31st March 2010  Total Telephone subscriber base reaches 621.28 Million.  Wireless subscription reaches 584.32 Million.  Wire line subscription remains at 36.96 Million  20.31 Million New additions in wireless.  Overall Tele-density reaches 52.74.  Broadband subscription is 8.75 Million. The number of telephone subscribers in India increased to 621.28 Million at the end of March-2010 from 600.98 Million in February-2010, thereby registering a growth rate of 3.38%. With this, the overall Tele-density in India reaches 52.74. Service Provider wise Market Share as on 31-3-2010 BSNL 12% MTNL 1% STEL 0% Aircel 6% TATA 11% Reliance 18% Bharti 22% Idea 11% Vodafone 18% Unitech 1% Videocon 0% Percentage Market Share
  10. 10. June 21, 2010 SUMMER INTERNSHIPREPORT 10
  11. 11. June 21, 2010 SUMMER INTERNSHIPREPORT 11 Vision “Trusted Service to 100 million happy customers by 2011.” Mission “To empower every Indian to connect with the world affordably.” Values “Fairness through Meritocracy Trust based on Accountability Tenacity for Results Pioneering Spirit Excellence in Execution Leadership with Humility” Aspirations  To be the most loved Tele-service brand  Simplifyingand enrichingpeople’slives  A joyful place to work  Refreshingly different
  12. 12. June 21, 2010 SUMMER INTERNSHIPREPORT 12 Introduction TATA DOCOMO is a Tata Teleservices Limited's (TTSL) cellular service provider on the GSM platform-arising out of the Tata Group's strategic joint venture with Japanese telecom giant NTT Docomo in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand "TATA DOCOMO" and has also been allotted spectrum in 18 telecom Circles. TTSL has already rolled out its services in various circles. It offers both prepaid and postpaid GSM cellular phone with presence in 11 circles including Madhya Pradesh & Chhattisgarh, Orissa, Maharashtra & Goa, Punjab, Haryana, Uttar Pradesh, Karnataka, Kerala, Tamil Nadu, and West Bengal. It has become very popular with its one second pulse especially in semi-urban and rural areas. They are launching their service from the south of India to central, east and north. Tata DOCOMO is Tata Teleservices Limited's (TTSL) telecom service on the GSM platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a pan-India license to operate GSM telecom services, under the brand Tata DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has already rolled out its services in various circles. The launch of the Tata DOCOMO brand marks a significant milestone in the Indian telecom landscape, as it stands to redefine the very face of telecoms in India. Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the Japanese market, the company is clearly the preferred mobile phone service provider in Japan with a 50 per cent market share. NTT DOCOMO has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. Over the years, technologists at DOCOMO have defined industry benchmarks like 3G technology, as also products and services like the i-modeTM, mobile payment and a plethora of lifestyle- enhancing applications. Today, while most of the rest of the industry is only beginning to talk of LTE technology and its possible applications, DOCOMO has already started conducting LTE trials in physical geographies, not just inside laboratories. DOCOMO is also a global leader in the VAS (Value-Added Services) space, both in terms of services and handset designs, particularly integrating services at the platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as these being introduced in the Indian market under the Tata DOCOMO brand. Tata DOCOMO has also set up a 'Business and Technology Cooperation Committee, comprising of senior personnel from both companies. The committee is responsible for the identification of key areas where the two companies will work together. DOCOMO, the world's leading mobile operator, will work closely with the Tata Teleservices Limited management and provide know-how on helping the company develop its GSM business. Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already established its presence and is the fastest-growing pan-India operator. Incorporated in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology platform in India. Today, Tata Teleservices Limited, along with Tata Teleservices (Maharashtra) Ltd, serves over 37
  13. 13. June 21, 2010 SUMMER INTERNSHIPREPORT 13 million customers in more than 320,000 towns and villages across the country offering a wide range of telephony services including Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire-line Services. Tata Docomo, The GSM brand of TTSL and Telecordia Technologies has won the Consumer charging Innovation award at Global Telecom Business Innovation Awards being held at London. Tata Docomo chose Telecordia Technology to implement its GSM prepaid charging system. Telecordia’s real time charging system enabled Tata Docomo in launching its innovative pre-paid service offerings, delivering a highly scalable, reliable, flexible and cost- effective real time charging solutions. Since June 2009, it has gone from zero to 30 million subscribers, adding over 100,000, on average, a day. Tata and Telcordia have since expanded on this proposition by offering a rollover service for unused minutes and SMS for up to three months for enterprise customers. This is a new proposition for the telecommunications market, and means that enterprises ensure they maximise their plan benefits. Global Telecom Business Innovation awards 2010 were held in London and the Telecom companies gets honored for their innovative projects in various category.Aircel along with Oracle has won the innovation award in business Service innovation category. The winners represent the most innovative projects in the industry worldwide in five key categories: 1. Fixed infrastructure Innovation. 2. Wireless infrastructure innovation. 3. Wholesale service innovation. 4. Business service innovation. 5. Consumer service innovation and Editor’s award. TATA DOCOMO adjudged most visible brand of the year Indian Financial daily financial express conducted Brandwagon-synovate survey to choose most visible brand of the year. As per the survey the most visible brands were those that engaged extensively with consumers through advertising and other means of communication and market activity. Tata Docomo has been adjudged the most visible brand of 2009 in the survey. It’s really a great achievement for a company which entered in a very competitive and cluttered industry and waded through to differentiate itself and positioned itself as a brand to reckon with. When the brand was launched, it was the eighth entrant in a market which was already overcrowded. The incumbent operators were already finding it hard to differentiate themselves and were resorting to various means, plans, advertisement etc. to entice customers. TATA DOCOMO entered in a fiercely competitive market and broke the clutter and came out as most sought after brand. It is because of TATA DOCOMO that whole industry is talking in ‘per second’ calling terms and the whole landscape got changed. Now we see operators launching 1p/3 sec plans. Every player had some plan on offer to woo customers and they were all screaming at the top of their voice to apprise them. Tata Docomo entered the market with series of brilliant creative in TV, Print and outdoor. And the Docomo jingle is most recognizable on TV.
  14. 14. June 21, 2010 SUMMER INTERNSHIPREPORT 14
  15. 15. June 21, 2010 SUMMER INTERNSHIPREPORT 15 Future of 3G in India Since the launch of telecom network in lat 80s in US and Europe, the first generation of mobile network was analog in manner in which speech was encoded and sent across network. Analog modulation such FM was used and there was no data services available for customers. In 1990 and around, in EUROPE GSM network was launched which is known to be an open standard and which was adopted by India in 1995. GSM stands for global system for mobile communication which is a 2G network of mobile communication. Later after the launch of Data services (GSM original was Voice carrying network), like sms etc, the 2.5G network was launched which supports higher speed for data networks than earlier add-on. Now within a year or so, when 3G will be rolled out across metros in India, we need to prepare our self for one more revolution in the field of communication i.e. Internet revolution. As I often felt that, only 25% India is penetrated by current technology so there will be great opportunity for 3G to increase the rate of penetration to 50% or beyond in coming years. Most of Indian users of mobile are currently using mobiles for mainly Voice and few data services like sms mostly. After the advent of 3G, broadband Wireless Internet will become a reality with high upload and download speed. Most of users are already having 3G supported mobile phones and now Airtel and Vodaphone are launching 3G iPhone in India on 22 August which will boost the usage of 3G in short, when it is launched. Recently BSNL said that its 3G network will be ready to launch by next year June. MTNL is also ready for launch. So must be the case with Reliance, Bharti and Voda. But despite all these hype by media and few players, one must really understand the necessity of 3G in India. There is huge cost of network rollout and current network up gradation involved in it. Also, as average revenue per user (ARPU) is decreasing per day in telecom industry, launch of 3G may or may not help in increasing ARPU. Telecom industry is still in phase of doubt. Though many of the players will be launching the 3G network in first tier cities like Mumbai and Delhi in coming months the response of masses to upgradation to 3G is still uncertain. So it might happen then few part of network will be 2.5G and other will run on 3G.But sooner of later it will be advisable to migrate the whole network to 3G. After the initial response to rollout, there will nationwide rollout of 3G network. Current scenario of Indian Telecom industry is like predot-com buzz, where 5-6 more operators are ready to launch their Cellular network across India. And after 3G many of them will have to upgrade to 3G depending on response, revenue generation etc coming days will decide the fate of new entrants. There is also news coming from Tata Telecommunication about huge investment in WiMAX technology. WiMAX is again a 3G technology mainly useful for rural communication where erecting towers for few thousand population and network utilization is real issue. What will be the path chosen and which will lead to successful method of connectivity will be clear only in coming years. In US, there is also wide speculation about 3G and WiMAX where few operators are choosing WiMAX over other technology. But it is certain that in India where there is large rural population is still not connected; WiMAX will play a big role in connecting the rural market.
  16. 16. June 21, 2010 SUMMER INTERNSHIPREPORT 16 One thing is very sure, that users of cellular networks in India will gain in this competition with better quality of speech, higher data rates of Internet services and high penetration rate in untapped area like rural India, which is long awaited by Indian customers.3G may be the start of new revolution where one might get to see pan India connectivity of mobile phones and higher penetration of mobiles in rural India. Results of 3G auctions After 16 days and 117 rounds of bidding, India’s Broadband Wireless Access spectrum auction is over: the results are provisional, and subject to government approval. The Indian government has managed to raise Rs. 38,543.31 crores from the auction, short of the estimated Rs. 40,000 crore, with Rs. 25,695.54 crores from private telecom operators, and Rs. 12,847.77 crores from the state owned telecom operators BSNL and MTNL. The two circles of Delhi and Mumbai together accounted for 35.29% of the total money raised, while the top five circles – Delhi, Mumbai, Karnataka, Tamil Nadu and Andhra Pradesh account for 71.65% of the bids. Tata Teleservices  Will pay 5864.29 crores for spectrum in 9 circles.  Has spectrum in Maharashtra, Gujarat, Karnataka, Kerala, Punjab, Haryana, Uttar Pradesh (West), Rajasthan and Madhya Pradesh.  Spectrum is equitably distributed within bands – three circles each for 1959-1964 MHz, 1969-1974 MHz and 1974-1979 MHz band. Vodafone  Has spectrum in 9 circles for Rs. 11617.86 million, and has spent the second highest amount in these auctions.  Opted out of most Category C circles, and got Delhi and Mumbai.  Has spectrum in Delhi, Mumbai, Maharashtra, Gujarat, Tamil Nadu, Kolkata, Haryana, West Bengal and Uttar Pradesh (East).  Doesn’t have either Karnataka or Andhra Pradesh, so Vodafone Bangalore and Hyderabad customers will have to look to other telecom operators. Idea Cellular  Has won spectrum in 11 circles for Rs. 5768.59 crores, though it did not win in Delhi and Mumbai.  Won spectrum in 11 circles: in Maharashtra, Gujarat, Andhra Pradesh, Kerala, Punjab, Haryana, Uttar Pradesh (E), Uttar Pradesh (W), Madhya Pradesh, Himachal Pradesh, and Jammu & Kashmir.  Has won 5 circles in the 1969-1964Mhz band: Kerala, Punjab, Haryana, Madhya Pradesh and Jammu & Kashmir.  Has won 5 circles in the 1969-1974 Mhz band: Maharashtra, Andhra Pradesh, Uttar Pradesh (East), Uttar Pradesh (West) and Himachal Pradesh.  Gujarat is the lone circle where Idea Cellular has spectrum in the 1974-1979 MHz band.
  17. 17. June 21, 2010 SUMMER INTERNSHIPREPORT 17 Reliance Communications  Will pay Rs. 8585.04 Crores for spectrum in 13 circles.  Has won spectrum in Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Orissa, Assam, North East, and Jammu & Kashmir.  Has won 3G in all circles where it has 900 MHz spectrum.  Is the only operator to win spectrum in 6 circles in the 1969-1974 MHz band: in Delhi, Kolkata, Himachal, Orissa, North East and Jammu & Kashmir.  Has won all Category C circles for less than Rs 500 crores. Bharti Airtel  Will pay Rs. 12,295 crores for spectrum in 13 circles, the most amount spent by an operator in this auction.  Has won spectrum in: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir.  It’s most expensive acquisition is spectrum in Delhi – Rs. 3316 crores, followed by Mumbai – Rs. 3247.07 crores.  Spectrum in 5 circles – Andhra Pradesh, Tamil Nadu, Uttar Pradesh (West), West Bengal and Himachal Pradesh is in the 1959-1964 MHz band.  Spectrum in 5 other circles – Delhi, Rajasthan, Assam, North East & Jammu & Kashmir is in the 1969-1974 MHz band  Spectrum won in Mumbai and Karnataka is in the 1974-1979 MHz Band, and in Bihar is in the 1964-1969 MHz band. BSNL  While it did not participate in the 3G auction, BSNL will have to pay the Indian government Rs. 10,187 crores for spectrum in 20 of the 22 circles. Its costliest circles are Karnataka, Tamil Nadu and Andhra Pradesh, at Rs. 4418 crores for the three circles. MTNL  Though it did not participate in the 3G Auction, MTNL will have to pay Rs. 6564 crores for spectrum in the two cities of Delhi and Mumbai. It is currently grappling with losses (Rs. 1573.76 crores in Q4-2010), and a fairly low subscriber base of 3G customers – only 348,000 as of 31st March 2010, despite having launched services a year ago.
  18. 18. June 21, 2010 SUMMER INTERNSHIPREPORT 18 Service Area Aircel Bharti Idea Reliance STEL Tata Vodafone Circle Total Delhi 3,316.93 3,316.93 3,316.93 9,950.79 Mumbai 3,247.07 3,247.07 3,247.07 9,741.21 Maharashtra 1,257.82 1,257.82 1,257.82 3,773.46 Gujarat 1,076.06 1,076.06 1,076.06 3,228.18 Andhra Pradesh 1,373.14 1,373.14 1,373.14 4,119.42 Karnataka 1,579.91 1,579.91 1,579.91 4,739.73 Tamil Nadu 1,464.94 1,464.94 1,464.94 4,394.82 Kolkata 544.26 544.26 544.26 1,632.78 Kerala 312.48 312.48 312.48 937.44 Punjab 322.01 322.01 322.01 322.01 1,288.04 Haryana 222.58 222.58 222.58 667.74 Uttar Pradesh (E) 364.57 364.57 364.57 1,093.71 Uttar Pradesh (W) 514.04 514.04 514.04 1,542.12 Rajasthan 321.03 321.03 321.03 963.09 Madhya Pradesh 258.36 258.36 258.36 775.08 West Bengal 123.63 123.63 123.63 123.63 494.52 Himachal Pradesh 37.23 37.23 37.23 37.23 148.92 Bihar 203.46 203.46 203.46 203.46 813.84 Orissa 96.98 96.98 96.98 290.94 Assam 41.48 41.48 41.48 124.44 North East 42.3 42.3 42.3 126.90 Jammu & Kashmir 30.3 30.3 30.3 30.3 121.20 Telco Total 6,499.46 12,295.4 5,768.59 8,585.04 337.67 5,864.29 11,617.8 50,968.37 Results of India's 3G Spectrum Auction In Rs. Crores Telecom Operators
  19. 19. June 21, 2010 SUMMER INTERNSHIPREPORT 19
  20. 20. June 21, 2010 SUMMER INTERNSHIPREPORT 20
  21. 21. June 21, 2010 SUMMER INTERNSHIPREPORT 21 Introduction When dealing with companies and clients, exceptional customer service is what tends to solidify a sale, make a business deal or score a contract. Without the good sense and know- how to produce the correct forms of customer service, customers opting to use a company’s products may not want to invest their time and money into a product where they don’t feel completely appreciated and welcomed. The telecom service providers have always followed a growth trajectory in the past decade through increase in customer base as well as adding considerable numbers to their annual revenue. They have kept the pace with the competitors and have played the game with amazing success in the past. But in the recent times, they are facing with an enormous challenge of adaptation to the matured, highly penetrated markets coupled with global recessionary effect. Therefore, a shift in paradigm to adapt their business models to the current situation is highly required and the need of the hour is the customer experience management to attain a higher retention ratio. Challenge in modern telecom industry - Customer retention In the modern day telecom industry which has attained high penetration level, acquiring a customer is getting even costlier. Industry analysis states that only 25% of the acquired customers stay with the company after a year's time and on an average only 20 -30% of the entire customer base is revenue earning/profitable customers. This dugs a deep hole in the balance sheet of the telecom service providers. Due to the churning effect of the customers, there is a huge imbalance created in gross additions of the customers and net addition. TATA DOCOMO has come up with a unique business concept of Service Points with the aim of increasing the Value Proposition offered by TATA DOCOMO to the customers. TATA DOCOMO is the only service provider which has come up with 30 service points which were operational form the very first day of the launch. TATA DOCOMO Service Point is a simple outlet wherein the customer’s problems can be resolved in the real time without the need of getting in to the long queue of Call Centers. Each Service Point is provided with every tool that a customer representative at Call center has got. This approach ensures abundant touch points with the customers and their queries.
  22. 22. June 21, 2010 SUMMER INTERNSHIPREPORT 22 TATA DOCOMO Service point Model The DO DO Model- Distributor Owned Distributor Operated Model Distributor Owned Distributor Operated Advantages: • Service quality assurance • Distributor is engaged and focused on Customer service • Better accessibility / reach for the Customer • Opportunity to Up sell • Exclusive look and feel Areas of Concern: • Costlier Proposition ( rentals / manpower cost / running exp) • Roll out time to market is more Service Point is a cost effective way of providing service to the customers. Each of the Service point of TATA DOCOMO is provided with some mandatory requirements like  One Customer Service Associate: Customer Service Associate represents the company at the Service point and resolves all the problems of the customers. The CSA is trained for using various software tools for serving the customers. All the interactions at the Service Points are look after by the CSA with the support of the CSD team.  One Backhand: It is ensured that each Service Point should have one back hand who can take over the charge in absence of the CSA so that the main purpose of customer service is carried out inhibited.  Computer System: One Computer system with broadband connection. The system is loaded with the softwares provided by the company.  Branding: TATA DOCOMO takes the responsibility of branding of the service point which includes Backdrop, Animation, and Sandwich boards. Key Resposibilies of the Service Points The ultimate aim of the Service Points is to serve the customers locally. There are various aspects of this service and this includes  CAF (Customer Application Form) resubmission.  Sim replacement.  VAS (Value Added Services) up sales.
  23. 23. June 21, 2010 SUMMER INTERNSHIPREPORT 23  QRC (Query, Request, Complaints) handing.  Post paid sales.  GPRS related issues.  Daily MIS of the walk-ins. Key Responsibilities of TATA DOCOMO towards Service Points TATA DOCOMO ensures that no stone is left unturned in finding the ways of excellent customer service. The CSD Team at TATA DOCOMO makes sure that all the necessary support to all the existing Service Points is provided. The key responsibilities of the Company towards the Service Points includes  Providing training at regular intervals to the CSAs.  Ensuring regular contact with the Distributors, CSM and the CSAs of the Service points to prevent the system from stagnancy.  Regular feedbacks for the improvement of the services provided by the Service Points.  Branding of the Service Points.  Regular promotional activities at the Service Points like GPRS Mela, Children Day out Program.  Checks and Balances of the activities of the Services Points through regular visits and test of the CSAs.  Finalizing new Service Point locations. Present Status  Total 50 service points ready for launch.  30 Service Points already launched in spectrum towns.  Direct presence in 43 towns across Gujarat.  Covering 120 towns across Gujarat.  Covering 70% of total customer base in the first Phase itself.  Presence in all the major towns like Ahmedabad, Surat, Baroda and Rajkot.  Capability to handle more than 125000 walks ins per month.  Created more then 5000 Sq Ft of Retail Service Space.
  24. 24. June 21, 2010 SUMMER INTERNSHIPREPORT 24 Service Points Location Operational Yetto be Inaugurated
  25. 25. June 21, 2010 SUMMER INTERNSHIPREPORT 25
  26. 26. June 21, 2010 SUMMER INTERNSHIPREPORT 26 Key Responsibilities ofService Point Operations Service Point Operations has provided me exposure to a wide range of activities which includes basic Operations Management as a broad umbrella which again encompasses the activities related to Branding, Promotion, Service Marketing, Training, and Event Management, Finalizing new locations for the Service Point, Daily briefing of the Service Points, and Resolving Customer issues through software support.  Finalizing new location: The present target of the company is to establish 50 Service Points at various location of Gujarat. After getting the inquiry from the distributor for setting up the service point the company sends representative for explaining the business model and revenue generation model to the distributor. After that all the mandatory requirements of the company are discussed with the distributor and an agreement is signed by the distributor. This is followed by the visit of the company representative to the proposed location of the Service Point. The key things that had to be kept in mind while inspecting the new location includes 1. Best visibility of the Service Point. 2. The proposed Service Point should be located where maximum walk-ins could be possible. 3. The location should not be shared or used for activities related to products other than TATA DOCOMO.  Branding: After finalizing the location of the new Service Point the company sends the representative for the branding of the service point. The branding includes backdrop, animation, and sandwich board and TATA DOCOMO glow sign board. The entire service point has to be designed in a way so as to have the maximum visibility of the brand. Apart from the branding from the side of the company there are few mandatory requirements that have to be fulfilled from the side of the Service Point owner in terms of few adjustments in the service points as needed.  Promotion: The Company plans and executes frequent promotional activities at all the Service points through different kinds of activities which can provide an opportunity of exposure and point of contact with the existing and potential customers. The most recent activity was that of the Celebration of Children Day Out Program at Ahmedabad and Vadodara Service Points wherein the children of the customers were invited for various activities at the service points. This event got a tremendous response from the customers and had helped the Service Points in terms of increased sales.  Service Marketing: Service Marketing is a activity of serving the customers with the issues they are facing and parallely marketing the products of the company. This service marketing activity is also carried out at the service points but it is not just a promotional activity of the company but the main aim of the Company is resolution of the customer’s issues in one shot. GPRS Mela was the recent Service Marketing activity at Gandhinagar Service point. The activity was organized to provide solution to all the GPRS related issues in addition to the resolution of other issues and promotion of sales of the Service Points. The event draws a
  27. 27. June 21, 2010 SUMMER INTERNSHIPREPORT 27 huge response in terms of the customer visit and the number of issues resolved in a day. The GPRS Mela also proved great for the service point in terms of increased sales of new connections and GPRS related pack.  Training: The Customer Service Associate at the service point had to be trained for using various tools of the company for customer service. The major tool includes software platform called TIPPS which gives all the facility to the person sitting at the service point to resolve the issues like Sim Replacement, Activation of CBT, Raising service request for the problems like wrong deduction of balance, Call barring, GPRS related issues etc.  Event Management: This category of responsibility includes activities like Inauguration of the new Service Point, Celebration of different days at the Service Points like Environment Day. The key responsibility in such task includes making of Note for Approval and Presentation for approval from the corporate and finance, planning out the activities to be carried out then coordinating with the Channel sales Manager, Owner of the Service point, execution of the plan and finally submitting the report and photographs.  Setting up the System and Software installation: With the view of providing great service experience to the customers the company provides various software tools to the service Points. The package includes TIPPS software, Team viewer, Skype. Before the commencement of the activities of the service point these systems are required to be installed and checked. The installation activity may be done directly from the service Point or from a remote distance by using software support like team viewer which helps to take the control of a remote PC from the desired end.  Daily Briefing: To ensure checks and balances on the processes of the Service Points and to communicate the latest updates daily briefing of the CSAs is required. The key elements of this activity includes 1. Motivating the CSAs for the VAS up sales. 2. Making it sure that the MIS is being send regularly. 3. Taking feedback of the issues that are pending if any. 4. Communicating new activities to the CSAs that are required to be executed. 5. Motivating them to read more about the products through CRM support.  Resolving Customer Issues: Apart from providing the training support to the CSAs regular support from CSD is made available to the Service Points. Incase the CSAs at the Service Point is not able to resolve the issue of the customer he contacts to the CSD and people from here guides him for resolving the problem. The Company ensures that the customer is satisfied at any cost. For providing this satisfaction the Company remains in touch with all the Service Points throughout the day through the effective use of the technology.
  28. 28. June 21, 2010 SUMMER INTERNSHIPREPORT 28 Key Take away from the Project  High quality Service Retail experience.