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Study of vas products in telecom market in india


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Study of vas products in telecom market in india

  1. 1. Presented By :- “Study of VAS Products in Telecom Market in India “ Ashish Sharma -17010 Apeejay School Of Management PGDM (Finance & Marketing) 2009-2011 July , 2010
  3. 3. Flow of the Presentation. <ul><li>1 ) Introduction. </li></ul><ul><li>2) History of Indian Telecom Industry & Government Policy . </li></ul><ul><li>3 ) Players of Indian Telecom Industry. </li></ul><ul><li>4) Analysis of Bharti Airtel. </li></ul><ul><li>Major Market Trends. </li></ul><ul><li>Project Findings. </li></ul><ul><li>Conclusion. </li></ul><ul><li>Recommendations & Suggestions. </li></ul><ul><li>Learning's & Experiences </li></ul>
  4. 4. Topic: 1 Introduction
  5. 5. Executive Summary : <ul><li>Role Of Telecom Sector in Development Process </li></ul><ul><li>The telecom services have been recognized the world-over as an important tool for </li></ul><ul><li>socioeconomic development of a nation. Telecommunication is one of the prime support </li></ul><ul><li>services needed for rapid growth and modernization of various sectors of the economy. It has </li></ul><ul><li>become especially important in recent years because of enormous growth of information </li></ul><ul><li>technology and its significant potential for the impact on the rest of the economy. </li></ul><ul><li>The Telecom Sector, which has the multiplier effect on the economy, has a vital role to play in </li></ul><ul><li>economy by way of contributing to the increased efficiency. The available studies suggest that </li></ul><ul><li>income of business entities and households increases by the use of telecom services. Thus it </li></ul><ul><li>contributes to the growth in GDP. The Government of India reorganizes that provision of world </li></ul><ul><li>class telecommunications infrastructure and information is key to rapid economic and social </li></ul><ul><li>development of the country. </li></ul>
  6. 6. <ul><li>Telecom industry in India started to set up in a phased approach. Privatization was gradually </li></ul><ul><li>introduced, first in value-added services, followed by cellular and basic services. Telecom </li></ul><ul><li>Regulatory Authority of India (TRAI) was established to regulate and deal with competition (the </li></ul><ul><li>service providers). Upcoming services such as 3G and WiMax will help to further augment the </li></ul><ul><li>growth rate. The Indian telecommunications industry is one of the fastest growing in the world </li></ul><ul><li>and India is projected to become the second largest telecom market globally by 2010. </li></ul><ul><li>Paisafication seems to be the name of the game in mobile telephony. But as the pricing game </li></ul><ul><li>touches rock bottom and erodes value, gaining subscribers will mean winning the great brand </li></ul><ul><li>battle. Thirteen Telecom Operators in India causing Ripple Effect & demanding for Innovation </li></ul><ul><li>/ Renovation in Saturated Indian Telecom Market. Over the last 5 years, the telecom industry </li></ul><ul><li>has realized the importance of MVAS. Given the declining ARPU and increasing competition </li></ul><ul><li>among operators it is imperative to focus on alternate revenue streams. That is where there is a </li></ul><ul><li>felt need for capitalizing on the Value Added Services Market. In the wake of changing industry </li></ul><ul><li>markets, telecom operators are looking at “Mobile Value Added Services” (MVAS) as the next </li></ul><ul><li>wave of growth, and a large chunk of revenues is expected to flow from VAS in the near future. </li></ul>Need for the Study :
  7. 7. 2010 Introduction :
  8. 8. Mobile Phone Revolution : <ul><li>Commenting on the emerging markets and use of cell phones, Bill Gates once said, </li></ul><ul><li>“ PC is the phone and phone is the PC.” </li></ul><ul><li>In the same conference, Craig Mundie, Microsoft Chief Research Officer continued, “People in those rural environments are already buying computers. They happen to call them cell phones.” </li></ul>
  9. 9. Welcome in the New AVATAR of TELECOM WORLD! India entering 2nd stage of “Telecom Revolution “ . INDIAN TELECOM SECTOR FIRST PHASE OF REVOLUTION : VOICE SECOND PHASE OF REVOLUTION : DATA
  11. 12. Quick Facts : Next Super Power India (March, 2010 ) 15 % 3 % Contribution to India’s GDP. 120 Million 81 Million Internet Users 18 % 7 % Internet Penetration 70 % 52.74 % TeleDensity 10 Million 4 Million Employment to People (Approx. ) Over 26 % 16 % Growth Rate (Approx. ) 344,921 Rs. Crore 100,000 Rs. Crore Market Size (Approx. ) 5-6 Players 13 Number of Players (Approx. ) Over 1 Billion 584.32 Million Mobile Users (Approx. ) 135 Crore 120 Crore Population of India (Approx. ) Projected Trends (In 2015 ) Current Trends (In 2010) Name
  12. 13. Impact of Telecom Sector on Indian Economy:
  13. 14. Economic Benefits of Mobile Services in India : <ul><li>Employment </li></ul><ul><li>Government Revenues </li></ul><ul><li>GDP </li></ul><ul><li>Rural Development </li></ul>
  14. 15. “ The mobile phone has moved beyond being a mere device to become a key “social object” present in every aspect of our daily lives”. International Telecommunications Union( ITU) Indian Telecom Sector <ul><li>The Indian Telecom Sector –Poster Boy Of Economic Reforms. </li></ul><ul><li>Fastest Growing Telecom Market with CAGR of 17 % . </li></ul><ul><li>3 rd Largest Telecommunication Network in World. </li></ul><ul><li>2 nd Largest Wireless Network in World. </li></ul><ul><li>About 15 million connections are being added every month. </li></ul><ul><li>About 3 % is the Contribution of Telecom Sector in Nation’s GDP. </li></ul>The Unique Indian Business Telecom Model “ Low Cost, High Volume, High MOU. “
  15. 16. Telecommunication : Managerial: “ Telecom is a huge and varied bastion of technologies, companies, services and politics that is truly global in nature.” Technical: “Telecom in the real sense means transfer of information between two distant points in space.”
  16. 17. <ul><li>Topic: 2 : History of Indian Telecom Industry & Government Policy. </li></ul>
  18. 19. Evolution of the Telecom Sector : Pre-1991 1991-1994 1994 - 2002 <ul><li>Telegraph Act 1885 </li></ul><ul><li>Creation of DOT- 1985 </li></ul><ul><li>MTNL & VSNL were set up-1986 </li></ul><ul><li>Cellular Phone Services were opened up to private sector-1994 </li></ul><ul><li>National Telecom Policy-1994 </li></ul><ul><li>1997 : TRAI was set up </li></ul><ul><li>NTP 1999 </li></ul><ul><li>TDSAT-2000 </li></ul><ul><li>BSNL formed 2001 </li></ul><ul><li>FDI - 49 % </li></ul><ul><li>Broadband policy 2004 </li></ul><ul><li>FDI - 74% 2005 </li></ul>2002 -2007 Up to 1994 Upto 2002 Up to 1991 Upto 2007
  19. 20. Policy of Government of India : FDI in telecom recently revised to 74%. Government gets 15% of revenues from Unified Licensing Regulator Licensor Judiciary Telecom Regulatory Authority of India Telecom Dispute Settlement Appellate Tribunal Dept of Telecom Unified License Operators Fixed Line Operators GSM 900 & 1800 MHZ Wireless Operators National Long Distance Operators International Long Distance Operators CDMA 1800 MHZ Ministry of Communication & Information Technology
  20. 21. Regulatory Framework & Organization Unified Access Licensing Regime (UALR) Access Deficit Charge (ADC) – Subsidising the Infrastructure Cost Universal Service Obligation (USO) – Building Rural Network
  21. 22. Market structure of India- Telecom Circles : <ul><li>Metro circles </li></ul><ul><li>(major cities*): </li></ul><ul><li>Mumbai </li></ul><ul><li>New Delhi </li></ul><ul><li>Kolkata </li></ul><ul><li>B circles (regions with smaller urban </li></ul><ul><li>areas and towns): </li></ul><ul><li>Haryana </li></ul><ul><li>Punjab </li></ul><ul><li>Rajasthan </li></ul><ul><li>Uttar Pradesh (East) </li></ul><ul><li>Uttar Pradesh (West) </li></ul><ul><li>West Bengal </li></ul><ul><li>A circles (regions that </li></ul><ul><li>include other large cities): </li></ul><ul><li>Andhra Pradesh </li></ul><ul><li>Gujarat </li></ul><ul><li>Karnataka </li></ul><ul><li>Maharashtra </li></ul><ul><li>Tamil Nadu* </li></ul><ul><li>C circles (rural areas): </li></ul><ul><li>Assam </li></ul><ul><li>Bihar </li></ul><ul><li>Himachal Pradesh </li></ul><ul><li>Jammu & Kashmir </li></ul><ul><li>Northeast </li></ul><ul><li>Orissa </li></ul><ul><li>Kerala </li></ul><ul><li>Madhya Pradesh </li></ul>(* Chennai, in the southeast, was previously a separate Metro circle, but as of March 31, 2008, it was integrated into the Tamil Nadu A circle as a single entity.)
  22. 23. Telecom Growth Comparison : Total No. of Mobile Subscriber in the year 2015 will be 1000 Million.
  23. 24. Different Services of Telecom Sector:
  24. 25. Growth of Telecom Network (PSUs & Private ) :
  25. 26. Teledensity Growth in India :
  26. 27. Wireless & Wireline Subscriber Base in India :
  27. 28. FDI in Telecom Sector in India :
  28. 29. Market Share of Technology & Connection:
  29. 30. Topic: 3 Players of Indian Telecom Industry
  30. 31. Different Players of Indian Telecom Industry : <ul><li>There are three types of players in telecom services: </li></ul><ul><li>• State owned companies (BSNL and MTNL) </li></ul><ul><li>• Private Indian owned companies (Reliance Communication, Tata Teleservices) </li></ul><ul><li>• Foreign invested companies (Vodafone Essar, Bharti Airtel, Idea ) </li></ul>I WANT ONLY 1 SIM CARD
  31. 32. Market Share: Bharti Airtel Market Leader With 21.84 % Market Share in India : Overall Indian Telecom Industry Market Share : TRAI REPORT : MARCH 2010
  32. 33. All India GSM Cell Subscribers- March 2010 (COAI Report) :
  33. 34. Battle of Brands- Get Ready for Third World War !!!!!! “ PAISAFICATION “ seems to be the name of the game in mobile telephony. Fighting for the Share of Wallet !!!!!!!!!!! 100 MILLION CUSTOMER MARK - NEW MAGIC NUMBER CONSOLIDIATION &quot;TARIFF WAR&quot; Thirteen Operator causing Ripple Effect & demanding for Innovation/Renovation in Saturated Indian Telecom Market. WHAT IS FUTURE ?????
  34. 35. 1 st Player – BHARTI AIRTEL 1 st 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 ) <ul><li>Bharti is now the world's third-largest, single-country mobile operator and Fifth-largest integrated telecom operator. </li></ul>GSM PLAYER- PAN 23 CIRCLES Bharti ‘s Famous “Minute Factory Model” combined with a low cost structure. Bharti Airtel an integrated Telecom Service Provider. “ Work is Love , not Stress “ - Sunil Bharti Mittal Bharti Enterprises (64.76%) SingTel (30.5%) Vodafone (4.4%) Parent 25,543 (2009) Employees ▲ US$ 11.853 billion (2009) Total assets ▲ US$ 1.662 billion (2009) Net income ▲ US$ 2.043 billion (2009) Operating income ▲ US$ 7.254 billion (2009) Revenue Wireless Telephone Internet Satellite television Products Sunil Mittal (Chairman) & (MD) Sanjay Kapoor (CEO) Key people Worldwide Area served New Delhi, India Headquarters Sunil Bharti Mittal Founder 7 July 1995 Founded Telecommunications Industry Public (BSE: 532454) Type
  35. 36. 2 nd PLAYER- RELIANCE COMMUNICATIONS 1 st Rank in CDMA Telecom Market of India with Total Subscriber Base (Both GSM & CDMA) of 102.44 Million & Market Share in CDMA Of 59.39 %. 6 th Rank in Purely GSM Market with Total Subscriber Base of 16.31 Million & Market Share in GSM Market is of 3.87 %. BOTH GSM PLAYER & CDMA PLAYER PAN in 23 Circles. Reliance is again in Hot News after 2002 when it sold its Reliance Handset in only 500 rs. R-Com has launched a new tariff model for its pre-paid customers, which offers Unlimited talk time for a flat monthly fee. ADAG Parent 31,884 Employees Rs 1,032 crore (US$ 219.82 million) Total Equity Rs 102,207 crore (US$ 21.77 billion) Total assets Rs 6,045 crore (US$ 1.29 billion) Net income Rs 9,305 crore (US$ 1.98 billion) Operating income Rs 22,948 crore (US$ 4.89 billion) Revenue Wireless Telephone Internet Television Data Cards Recharge Vouchers Products Anil Ambani (Chairman ) Satish Seth (MD) Key people India Area served Navi Mumbai, Maharashtra Headquarters Dhirubhai Ambani Founder 2004 Founded Telecommunications Industry Public BSE: 532712 Type
  36. 37. 3 rd Player – Vodafone Essar 2 nd Rank in Telecom GSM Market of India with Subscriber Base of 100 Million & Market Share of 23.91 %. ( TRAI ,March 2010 Report ) GSM PLAYER PAN in 23 Circles Vodafone ZOOZOO Magic 10,000 Employees Vodafone Group (67%) Essar Group (33%) Owner(s) Mobile networks, Telecom services, Etc. Products Mumbai, Maharashtra Headquarters 1994 Founded Hutchison Essar Predecessor Mobile telecommunications Industry Limited Type
  37. 38. 4 TH PLAYER- IDEA CELLULAR GSM PLAYER PAN IN ALL 23 CIRCLES 3 RD 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 ) Aditya Birla Group (49.05%) Axiata Group Berhad (15%) Providence Equity (10.6%) Parent Mobile Products Kumar Mangalam Birla (Chairman) Sanjeev Aga (MD) Rajat Mukharjee (VP Corporate Affairs) Key people Santa Cruz East, Mumbai, India Headquarters 1995 Founded Telecommunications Industry Public BSE: 532822 NSE: 532822 Type
  38. 39. 5th Player-TATA Teleservices Ltd. (TTSL) 2 ND 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 . IN TELECOM MARKET WITH 3 BRANDS : 1)TATA INDICOM- CDMA PLAYER 2) TATA DoCoMo - GSM PLAYER 3)VIRGIN MOBILE- BOTH CDMA & GSM PLAYER Tata Indicom (CDMA) Tata DoCoM o (GSM) Virgin Mobile India (CDMA/GSM) Divisions Tata Group Parent 350,000 Employees Wireless Telephone Internet Television Products Mr. Ratan N. Tata Chairman) Anil Kumar Sardana (MD) Key people Navi Mumbai, India Headquarters Incorporated 1996 Founded Telecommunications Industry Public (BSE: 532371) Type
  39. 40. 6th Player-BSNL BOTH GSM & CDMA 4 th Rank in Telecom GSM Market of India with Subscriber Base of 63.48 Millions & Market Share of 15.05 %. ( TRAI ,March 2010 Report ) BSNL ;- Undisputed Leader in Broadband with 60 % Market Share. It has1.5 Million 3G Users out of 60 Million Total Consumer Base. 357,000 Employees The Government of India Owner(s) ▼ US$ 7.03 billion Revenue Wireless Telephone Internet Television Products Kuldeep Goyal (Chairman) (MD) Key people Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi Headquarters 19th century, incorporated 2000 Founded Telecommunications Industry State-owned Type
  40. 41. 7th Player-AIRCEL GSM PLAYER IN PAN in 18 CIRCLE 5 th Rank in Telecom GSM Market of India with Subscriber Base of 36.86 Millions & Market Share of 8.74 %. ( TRAI ,March 2010 Report ) In a bid to raise awareness about the declining number of tigers, Aircel, partnering with World Wildlife Fund ( WWF) India has launched the 'Save Our Tigers' initiative. 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. Maxis Communications(74%) Apollo Hospital (26%) Parent Mobile Telecommunication operator Products Gurdeep Singh, COO Key people Gurgaon Headquarters 1999 Founded Telecommunications Industry Private Type
  41. 42. 8th Player –MTNL 7 th Rank in Telecom Market of India with Subscriber Base of 47.84 Million & Market Share of 1.13 %. ( TRAI ,March 2010 Report ) BOTH GSM PLAYER & CDMA PLAYER MTNL provides fixed line telephones, cellular connection of both GSM — Dolphin (Postpaid) and Trump (prepaid) and WLL (CDMA) — Garuda -FW and Garuda-Mobile and internet services Through dialup and DSL — Broadband internet TriBand. The Government of India Owner(s) ▼ INR 1.626 million (2009) Net income ▼ INR 52.895 million (2009) Revenue Wireless Telephone Internet Television Products Kuldip Singh (CMD) Anita Soni (CFO) S.M.Talwar (ED-New Delhi) J.Gopal (ED-Mumbai) Key people Mumbai and New Delhi India Headquarters 1986 Founded Telecommunications Industry State-owned Public NSE: MTNL NYSE: MTE Type
  42. 43. 9th Player-UNINOR GSM PLAYER PAN 8 th Rank in Telecom GSM Market of India with Subscriber Base of 42.64 Million & Market Share of 1.01 %. ( TRAI ,March 2010 Report ) With ‘ Ab mera number hai', Uninor tells the world it has arrived. Telenor (67.25%) Unitech Group (32.75%) Parent 2,000 Employees Wireless Telephone Internet Products Stein-Erik Vellan (CEO) Sanjay Chandra (Chairman) Key people Gurgaon, India Headquarters 2009 Founded Telecommunications Industry Joint Venture Type
  43. 44. 10th Player- MTS (SSTL) CDMA PLAYER 3 rd Rank in CDMA Telecom Market of India with Subscriber Base of 3.77 Million & Market Share of 2.19 % in CDMA . Sistema (73.71%) Shyam Group (23.70%) Owner(s) CDMA Products New Delhi, Delhi, India Headquarters 2009 as Sistema Shyam TeleServices Limited Founded Mobile telecommunications Industry
  44. 45. 11th Player-LOOP MOBILE GSM 10 th Rank in Telecom GSM Market of India with Subscriber Base of 2.84 Million & Market Share of 0.67 %. ( TRAI ,March 2010 Report ) Essar Group (8%) Owner(s) Mobile Telecommunication operator Products CEO Sandip Basu Key people Mumbai Maharashtra , India Headquarters 1994 as BPL Mobile 2009 as Loop Mobile Founded Telecom Industry Private Type
  45. 46. 12th Player-S TEL GSM PLAYER 11 th Rank in Telecom GSM Market of India with Subscriber Base of 1 Million & 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
  46. 47. 13th Player-PING (HFCL) CDMA 4 TH 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 &quot;Total Telecom Solutions Provider&quot; 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.
  47. 48. 14th Player-VIDEOCON GSM 100 DAYS-100 CITIES Videocon Mobile Service., is a GSM based cellular operator in India based in Mumbai. Videocon Telecommunications Limited, a Videocon group company offers GSM mobile services GSM service under the brand name Videocon. The Videocon Group is a $4 billion, global business conglomerate with a strong presence in Household Consumer Goods, Oil & Gas, Retail, Telecom, DTH and the Power sector. 5,000 (2010) Employees ▲ US$276 million (2010) Net income ▲ US$4 billion (2010) Revenue Consumer Electronics Home Appliances Components Office Automation Mobile phones Wireless Internet Petroleum Satellite television Power Products Venugopal Dhoot (Chairman) K. R. Kim (CEO) Key people Aurangabad, Maharashtra, India Headquarters Nandlal Madhavlal Dhoot Founder(s) 1979 Founded Conglomerate Industry Public (BSE: 511389) Type
  48. 49. SWAN TELECOM RE- NAMED ETISALAT DB TELECOM INDIA PVT. LTD GSM IN 15 CIRCLES 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. Listed 15th Player- ETISALAT ▲ $8.4 billion (FY2009) Revenue Mohammed Hassan Omran Chairman Mohammed Al Qamzi CEO Key people   United Arab Emirates Headquarters United Arab Emirates Government Founded Public Type
  49. 50. Topic :4 Analysis of Bharti Airtel
  50. 51. News Paper Headlines :
  51. 52. Sunil Bharti Mittal : FIRST GENERATION ENTREPRENURS He is a Pioneer, a Dreamer, an Achiever. Mittal prides himself on a string of firsts: &quot;the first push-button, the first cordless, the first answering machines, the first fax machines“. Asia's self-made billionaires . In 2007, he was awarded the Padma Bhushan, India's third highest civilian honor. THE GAME CHANGER. SUNIL BHARTI MITTAL is an Indian Telecom Mogul, Philanthropist and the Founder, Chairman and Managing Director of Bharti Enterprises. Mobile Phone Service License Operator in Delhi 1992 UMBRELLA BRAND -AIRTEL 1995 Fax Machines, Cordless Phones and Other Telecom Gear. 1990 Electronic Push Button Phones 1982 Portable Generators 1982 Bicycle Crankshaft Business 1970
  52. 53. Airtel Brand : Taglines :
  53. 54. Airtel Brand Logo :
  54. 55. Brand Ambassadors : 2008 2003 2002 2009 2010
  55. 56. Bharti Airtel : Introduction <ul><li>Airtel comes to you from Bharti Airtel Limited, one of Asia’s leading integrated </li></ul><ul><li>telecom services providers with operations in 18 countries across Asia and Africa. </li></ul><ul><li>Bharti Airtel since its inception, has been at the forefront of technology and has </li></ul><ul><li>pioneered several innovations in the telecom sector. </li></ul><ul><li>AIRTEL is one of Asia’s leading providers of telecommunication services with </li></ul><ul><li>presence in all the 22 Telecom Circles in India, and in Srilanka. It served an aggregate </li></ul><ul><li>of 130,686,172 customers as of March 31, 2010, in India; of whom 127,619,314 </li></ul><ul><li>Subscribe to our GSM services and 3,066,858 use our Telemedia Services either for </li></ul><ul><li>voice and/or broadband access delivered through DSL . </li></ul><ul><li>The company is structured into four strategic business units - Mobile, Telemedia, </li></ul><ul><li>Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and </li></ul><ul><li>Bangladesh. The Telemedia business provides Broadband, IPTV and telephone services </li></ul><ul><li>in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across </li></ul><ul><li>India. The Enterprise business provides end-to-end telecom solutions to corporate </li></ul><ul><li>customers and national and international long distance services to telcos. </li></ul>
  56. 57. Four Strategic Business Units : The mobile business offers services in India, Sri Lanka and Bangladesh. 1) Mobile The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. 2 ) Telemedia 3 ) Enterprise The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. 4 ) Digital TV The Digital TV business provides Direct-to-Home TV services across India.
  57. 58. Vision : 2010 Mission : “ We at Airtel always think in fresh and innovative ways about the needs of 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” .
  58. 59. Company Profile : PARTNERS : Singtel Equity Partner {Strategic} IBM Daksh, Hinduja TMT, Teleperformance, Mphasis, Firstsource & Aegis Call Centre Operations IBM Information Technology Nokia Siemens, Juniper, Cisco, Alcatel Lucent, ECI, Tellabs Telemedia & Long Distance Services Nokia Siemens, Ericsson, Huawei Mobile Services Network Equipment
  59. 60. Factsheets : BSE: INR 267.00 Stock Quote US$ 25 billion. Market Capitalization The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Listings 30,000 TOTAL NO. OF EMPLOYEE 3,797,530,096 as at Mar 31, 2010 Shares in Issue Rs. 160,268 million (year ended March 31, 2010 - Audited) Rs. 151,678 million (year ended March 31, 2009 - Audited) As per US GAAP Accounts Proportionate EBITDA Rs. 396,150 million (year ended March 31, 2010-Audited) Rs. 369,615 million (year ended March 31, 2009-Audited) As per US GAAP Accounts Proportionate Revenue
  60. 61. Organization Structure :
  61. 62. Awards and Recognitions :For the Year 2008 - 2009 <ul><li>Sunil Bharti Mittal adjudged the “Business Leader Transforming India, 2008 at the NDTV Profit Business Leadership Awards </li></ul><ul><li>Sunil Bharti Mittal was awarded the GSM Association Chairman’s Award 2008. The highest honour in global telecom sector, recognized his tremendous contribution to the development of India’s telecom sector </li></ul><ul><li>Best Carrier India for innovative products & services and efficient cost models and the Ovum Telco-Transformation award recognizing philosophy and execution of a successful outsourcing strategy at the Telecom Asia Awards 2008 </li></ul><ul><li>“ Best Telecom Company” at the NDTV Profit Business Leadership Awards </li></ul><ul><li>Best Project Management’ Award for its Gujarat e-GRAM project - World Communications Awards 2008 </li></ul><ul><li>‘ Best Content Service’ Award for its Farmer Information Dissemination Platform for Bharti Airtel’s joint venture with IFFCO, IKSL (IFFCO Kisan Samachar) - World Communications Awards 2008 </li></ul><ul><li>“ 2nd Most Trusted Service Brand” - Annual Economic Times-Brand Equity, Most Trusted Brands survey 2008 </li></ul><ul><li>Winner of the “Gallup Great Workplace Award”- Gallup Consulting, 2008 </li></ul><ul><li>Voted India’s most innovative company – in a survey conducted by The Wall Street Journal in 2008 </li></ul>
  62. 63. Group Companies :
  63. 64. 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.
  64. 65. 1 )Product Life Cycle Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments (Rs.) Sales and Profits (Rs.) Sales and Profits Over the Product’s Lifetime Thirteen Operator causing Ripple Effect & demanding for Innovation/Renovation in “Saturated Indian Telecom Market “.
  65. 66. 2) SWOT Analysis: S: Strengths <ul><li>First Mover Advantage. </li></ul><ul><li>Highly Focused on Indian Telecom Market. </li></ul><ul><li>Leadership in fast growing Cellular Segment. </li></ul><ul><li>PAN India Footprint. </li></ul><ul><li>Heavy Brand Promotion Strategy. </li></ul><ul><li>Huge Network Coverage. </li></ul><ul><li>Proactive & Innovative Service </li></ul><ul><li>Strong Financials </li></ul><ul><li>Truly India’s first Global telecom player. </li></ul><ul><li>India’s first fully integrated telecom player. </li></ul><ul><li>Famous for Minute -Factory Model. </li></ul><ul><li>Best Outsourcing Model. </li></ul><ul><li>Airtel is another name of “Trust “& “Ethics “. </li></ul><ul><li>Highly Successful in the minds of Common Man. </li></ul><ul><li>Strong Network Coverage is helpful to earn more than 60 % Revenue from </li></ul><ul><li>Rural Sector. </li></ul><ul><li>The Game Changer Leader (founder & Promoter) Sunil Bharti Mittal who is known for “Transformational Changes “. </li></ul>
  66. 67. W: Weakness <ul><li>Outsourcing of Core Systems. </li></ul><ul><li>Premium priced products, hence can’t compete in low price segment. </li></ul><ul><li>No separate strategy for rural market (Untapped Rural Market). </li></ul><ul><li>Distribution channel is not accurately categorized. </li></ul><ul><li>Purely GSM Player affected by Consumer Switching Behavior gives opportunity to CDMA </li></ul><ul><li>Player Stickiness due to Handset. </li></ul><ul><li>Loosing Grounds among Teens & Youth against Virgin Mobile. </li></ul><ul><li>No Free Local Calls & STD Calls Packs offered by it. </li></ul><ul><li>Small Players giving Strong Competition in Different Segmentation like Call Rates , GPRS , SMS Packs, Broadband Internet (High Speed Data Cards) &Other Value Added Services. </li></ul>
  67. 68. <ul><li>Airtel’s business has ample scope for gaining market share from the unorganized sector. </li></ul><ul><li>Rural penetration too holds vast potential to bring about growth. </li></ul><ul><li>There is a lot of scope of product and market diversification. </li></ul><ul><li>Teledensity is still 47 % in 2nd Fastest growing Telecom Market in India. Still Huge Population is Untapped. </li></ul><ul><li>3G & WiMax Technology will Boost Product Life Cycle of Telecom Sector. </li></ul><ul><li>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. </li></ul><ul><li>Low Broadband Penetration in India only 9 Million Users producing huge opportunities for GPRS Service. </li></ul><ul><li>M-Banking, M-Commerce & M-Gaming are the Next Engine of Growth in Data Communication in VAS. </li></ul>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. O: Opportunities
  69. 70. BCG Matrix for Bharti Airtel : LOW HIGH HIGH LOW Mobile Services DTH & IPTV Broad Band
  70. 71. 4 ) Porter's Five Force Analysis :
  71. 72. <ul><li>• Thirteen Players in Saturated Indian Telecom Market causing “Battle of Brands “with Paisafication strategy. </li></ul><ul><li>• New Players with Negative Cash Flows causing to Innovation/Renovation to be in the Telecom Market. </li></ul><ul><li>• “ Tariff War “causing Cutthroat Competition to Survive & in adding 1st time User. </li></ul>1. Competitive Rivalry within an Industry HIGH •Lack of differentiation among Service Providers •Cut throat Competition •Low Switching Costs •Number Portability will have Negative Impact •Businesses & Consumers 2. Customer Bargaining Power HIGH
  72. 73. 3. Suppliers Bargaining Power LOW
  73. 74. 4. Threat of Substitutes <ul><li>Huge License Fees to be paid upfront & High gestation period </li></ul><ul><li>Entry of MVNOs & WiMAX operators </li></ul><ul><li>Spectrum Availability & Regulatory Issues </li></ul><ul><li>Infrastructure Setup Cost - High </li></ul><ul><li>Rapidly changing technology </li></ul><ul><li>Landline </li></ul><ul><li>CDMA </li></ul><ul><li>Video Conferencing </li></ul><ul><li>VOIP - Skype, Gtalk, Yahoo Messenger </li></ul><ul><li>e-Mail & Social Networking Websites </li></ul>BROADBAND SERVICES DIMINISHING MARKET HIGH 5. Threat of New Entrants LOW
  74. 75. 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
  75. 76. 5) ANSOFF MATRIX Market Penetration: Entered in Broadband and fixed line market. Market Development: Looking for overseas market. Product Development: IPLC products. Diversification: Outsourcing.
  76. 77. 6) PEST Analysis <ul><li>It is the technique of environmental scanning of any Industry on the basis </li></ul><ul><li>of the factors like </li></ul>
  77. 78. PEST Analysis of Indian Telecom Industry : Political Factors <ul><li>Antitrust Regulations </li></ul><ul><li>Environmental </li></ul><ul><li>Protection Laws & Tax Laws </li></ul><ul><li>Special Incentives </li></ul><ul><li>Foreign Trade Regulations </li></ul><ul><li>Attitudes toward foreign Companies </li></ul><ul><li>Laws on hiring and promotion </li></ul><ul><li>Stability of government </li></ul>PEST Analysis of Indian Telecom Industry : Economical Factors <ul><li>GDP trends </li></ul><ul><li>Interest Rates </li></ul><ul><li>Money Supply </li></ul><ul><li>Inflation Rates </li></ul><ul><li>Unemployment levels </li></ul><ul><li>Price control </li></ul><ul><li>Devaluation / Revaluation </li></ul><ul><li>Cost </li></ul>
  78. 79. <ul><li>Lifestyle Changes </li></ul><ul><li>Career expectation </li></ul><ul><li>Consumer activism </li></ul><ul><li>Rate of family formation </li></ul><ul><li>Growth rate of population </li></ul><ul><li>Age distribution of population </li></ul><ul><li>Regional shift in population </li></ul><ul><li>Life expectation </li></ul><ul><li>Birth rates </li></ul>PEST Analysis of Indian Telecom Industry : Technological Factors <ul><li>Total Government spending for Research & Development </li></ul><ul><li>Total Industry spending for Research & Development </li></ul><ul><li>Focus of Technological efforts </li></ul><ul><li>Patent Protection </li></ul><ul><li>New Products </li></ul><ul><li>Technology transfer from lab to marketplace </li></ul><ul><li>Productivity improvements through automation </li></ul><ul><li>Internet availability </li></ul>PEST Analysis of Indian Telecom Industry : Socio Cultural Factors
  79. 80. 7 ) MARKETING MIX : 4 P’s P-Products. P- Price. P- Place. P- Promotion. MARKETING MIX PRODUCT Cell Phones PRICE Lower End Segment to Super Premium End. PLACE Exclusive Showroom, Shopping Mall, Chain Store PROMOTION Print Media, Mass Media & Electronic Media
  80. 81. 4 P’s <ul><li>Product </li></ul><ul><li>• Airtel Pre-paid </li></ul><ul><li>• Airtel Post-paid </li></ul><ul><li>• Blackberry Wireless Handheld Value Added Services (VAS) </li></ul><ul><li>Price </li></ul><ul><li>• Customer based pricing strategies. </li></ul><ul><li>• Flexible pricing mechanism Controlled by TRAI. </li></ul><ul><li>. </li></ul><ul><li>Place </li></ul><ul><li>• It has wide and extensive presence even in the remotest areas </li></ul><ul><li>• Airtel Customer Care Touch Points Distributors like: Paan shops, grocery stores, chemists, outlet etc. </li></ul><ul><li>Promotion </li></ul><ul><li>• Large scale print and video advertising. </li></ul><ul><li>• Big celebrities like SRK and Sachin are roped in to endorse the product. </li></ul><ul><li>• 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. </li></ul>
  81. 82. Topic : 5 Major Market Trends
  82. 83. Major Emerging Trends: Changing Face of Indian Mobile Consumer
  83. 84. Handset Market in India: India’s Mobile Handset Market is Rs. 50,000 Crore Annually with 30 Handset Maker Company. About 100 Million Phones were sold in India in 12 Months to June 2009 say IDC Data. 10-12 Million Handsets are sold Per Month in India making India “Mobile Hub” after “Small Car Hub”.
  85. 86. Technology :
  86. 87. Growth Factors :
  87. 88. Emerging Trends : 3G USSD GPRS MMS SMS Voice
  88. 89. Growth Avenues: <ul><li>Managed Service : Managed services are another segment that is attracting telecom companies. On account of the rapidly growing subscriber base, service providers find it difficult to manage their infrastructure and network management operations. In such cases, they completely or partially outsource their infrastructure or network management operations. </li></ul><ul><li>Infrastructure Sharing: To reduce their network deployment costs, many service providers are Considering infrastructure sharing offers the following advantages: </li></ul><ul><li>Improved service quality. </li></ul><ul><li>Increased affordability for customers. </li></ul><ul><li>Faster roll out of services in rural and remote areas. </li></ul><ul><li>Lower operating costs for service providers. </li></ul><ul><li>Enterprise Telecom Services: Enterprise Telecom Services includes key services, such as voice over Internet protocol (VoIP), dedicated telecom communication systems; IT infrastructure enabled unified communication services, etc. Telecom service providers are increasingly targeting enterprises by providing dedicated services and are expected to witness major developments in near future. </li></ul>
  89. 90. <ul><li>Virtual Private Networks: Virtual Private Network is a private data network that provides </li></ul><ul><li>connectivity within closed user groups via public telecommunication infrastructure. Competition is likely to heat up in the VPN segment as DoT has relaxed the norms for private players. </li></ul><ul><li>Third Generation (3G): The Indian government plans to auction the spectrum for 3G services by inviting bids from domestic as well as foreign players & creating a competitive environment that offers better services to consumers. Therefore, 3G spectrum is among the major investment opportunities and growth drivers of telecom industry. The immense potential for 3G is reflected by the 30–40 percent annual growth in Value-Added Services.. </li></ul><ul><li>WiMAX has been one of the most significant developments in wireless communication in the recent past. Since this mode of communication provides network access in inaccessible locations at a speed of more than 4 Mbps, it is expected to be a major factor in driving telecom services in India, especially wireless services. Thus, it will lead to the increased use of telecom services, Internet, value-added services and enterprise services. It is estimated that India will have 13 million WiMAX subscribers by 2012. Aircel is the pioneer in WiMAX technology in India. </li></ul>
  90. 91. Topic : 6 Project Findings
  91. 92. Objectives: <ul><li>Need for the study: </li></ul><ul><li>Over the last 5 years, the telecom industry has realized the importance of MVAS. Given </li></ul><ul><li>The declining ARPU And increasing competition among operators it is imperative to focus on </li></ul><ul><li>alternate revenue streams. That is Where there is a felt need for capitalizing on the Value </li></ul><ul><li>Added Services Market. Today the various MVAS entities are still struggling with issues such as </li></ul><ul><li>the correct definition of MVAS,The roles and responsibilities of each entity in the value chain, </li></ul><ul><li>revenue sharing arrangements between Them and other critical issues such as regulation of the </li></ul><ul><li>MVAS market. </li></ul><ul><li>VAS: Next Key to Success </li></ul><ul><li>Value Added Service (VAS) in telecommunication industry refers to non-core services, the core </li></ul><ul><li>or basic services being standard voice calls and fax transmission including bearer services. </li></ul><ul><li>A value added service may demonstrate one or more of these characteristics and not </li></ul><ul><li>necessarily all of Them. In some cases, the value added service becomes so closely integrated </li></ul><ul><li>with the basic offering that neither the user nor the provider acknowledge or realize the </li></ul><ul><li>difference. A classic example is of P2P SMS. Some of the operators do not consider P2P SMS as </li></ul><ul><li>part of their VAS revenue. </li></ul>
  92. 93. <ul><li>Definition as per TRAI </li></ul><ul><li>In the Unified Access Service License (UASL), VAS is defined as follows- </li></ul><ul><li>“ Value Added Services are enhanced services which add value to the basic teleservices and bearer Services for which separate license are issued”. </li></ul><ul><li>The Government of India issues licenses for the following Value Added Services:- </li></ul><ul><li>Public mobile trunking service </li></ul><ul><li>Voice mail service </li></ul><ul><li>Closed users group domestic 64 kbps data network via INSAT satellites system </li></ul><ul><li>Video tex service </li></ul><ul><li>GMPCS </li></ul><ul><li>Internet </li></ul><ul><li>Audiotext </li></ul><ul><li>Unified messaging service </li></ul>
  93. 94. A to Z of Telecom VAS: Including and Beyond ABCD The Indian Perspective ABCD market -the Ayah, Bai, Carpenter, Driver market. <ul><li>A: Astrology, AdRBT, AppStores </li></ul><ul><li>B: Bollywood, Browsing, Blogging </li></ul><ul><li>C: Cricket, Content, Community </li></ul><ul><li>D: Devotion, Dating </li></ul><ul><li>E: Education, Enterprise </li></ul><ul><li>F: Fun </li></ul><ul><li>G: Gaming, Gambling </li></ul><ul><li>H: Health, Handsets </li></ul><ul><li>I: Infotainment </li></ul><ul><li>J: Jokes </li></ul><ul><li>K: Knowledge </li></ul><ul><li>L: Location Based Services, LIMI (Low Income Marginal Income) </li></ul><ul><li>M: Music, M-Commerce </li></ul><ul><li>N: Networking, News </li></ul><ul><li>O: Ovi -like Stores </li></ul><ul><li>P: Profile, Packaging, Pricing </li></ul><ul><li>Q: Quiz </li></ul><ul><li>R: Ring tones, Religion, Radio, Rural </li></ul><ul><li>S: Search, Sachet </li></ul><ul><li>T: TV on Mobile, Ticketing </li></ul><ul><li>U: Utilities, UGC (User Generated Content) </li></ul><ul><li>V: Vernacular, Voice </li></ul><ul><li>W: Wallpaper, Widgets </li></ul><ul><li>X: VAS.X </li></ul><ul><li>Y: Youth-based Applications </li></ul><ul><li>Z: Zoo Zoo </li></ul>
  94. 95. Indian Mobile VAS Industry valued at more than Rs 7000 Crore has so far been dominated by Entertainment Service. Focus should be on “Utility Based VAS “ not on Entertainment VAS .
  95. 97. 4 Pillars of VAS:
  96. 98. Four Component of VAS :
  97. 99. Drivers of VAS:
  98. 100. Challenges of VAS:
  99. 101. Trends in VAS:
  100. 102. Some Quick Facts : <ul><li>Population of India -120 Crore </li></ul><ul><li>Total Telephone Subscriber Base-621.28 Million. </li></ul><ul><li>Wireline Subscription- 36.96 Million. </li></ul><ul><li>Wirless Subscription- 584.32 Million. </li></ul><ul><li>BraodBand Subscription – 8.75 Million. </li></ul><ul><li>PC Base – 35 Million. </li></ul><ul><li>Internet Users – 81 Million. </li></ul><ul><li>Internet Penetration – 7 % . </li></ul><ul><li>Total GPRS Base – 60 Million. </li></ul><ul><li>Only 4 % of the 36 Million Activate </li></ul><ul><li>Internet Users. </li></ul><ul><li>In India access the Net over Cello phone </li></ul><ul><li>once a Month. </li></ul><ul><li>( INTERNET & MOBILE ASSOCIATION OF INDIA ) </li></ul>TRAI REPORT IN 2009
  101. 103. Mobile Internet Users in India
  102. 104. Types of Internet Access : <ul><li>DIAL UP </li></ul><ul><li>LANDLINE (over Cable Internet access, Optical fiber or Twisted pairs) </li></ul><ul><li>T- lines (Leased Lines ) </li></ul><ul><li>Wi-Fi </li></ul><ul><li>Satellite </li></ul><ul><li>Cell Phones </li></ul>Will Mobile internet replace PCs in 3 years ????? WAR FOR SURVIVAL 7 BILLIION POPULATION 1.78 BILLION PCS 4.6 BILLION PHONES
  103. 105. Main Challenges: GPRS •Problems Faced by English knowing Mobile Application Users. •Data connectivity; it is far too expensive, slow, and unreliable •Mistrust about the mobile operator’s Value Added Services (VAS) offerings. •The problem of awareness of existence of mobile applications and services. •Opportunity in Enabling Non-English Mobile Data Services. (Language Barrier) Problems Faced by Indian Mobile Application Developers • Diversity of Handsets (50 % Mobile Handsets are ULCH-Ultra Low Cost Handsets. More than 50 % Handsets in India are not GPRS enabled. Traditional V/S. Mobile 1)Screen Sizes & Resolution 2)Input Devices 3)Connection Speed 4)Cookies , JavaScript , Flash Conclusion: 1.Technical limitations 2. Different User Experience 3 .Alternative Solutions Needed
  104. 106. GPRS problems :           2 days to resolution Customer dissatisfaction GPRS Trouble-shooter, captures the customers interaction with the network in real time and reveals where the problem on the network lies. The problem could be on any of the nodes in the network. BTS BSC SGSN GGSN APN Call helpdesk? Use self help? Customer
  106. 108. Consumer -Main Findings : About Airtel GPRS GSM PLAYER- PAN 23 CIRCLES INDIAN TELECOM MARKET LEADER <ul><li>STRENGTHS : </li></ul><ul><li>GOOD SPEED </li></ul><ul><li>GOOD CONNECTIVITY </li></ul>WEAKNESS : <ul><li>HIGH COST (EXTRA CHAREGE </li></ul><ul><li>AFTER end of Limited Usage). </li></ul><ul><li>Unsuitable Plans for the 1st Time Users. </li></ul><ul><li>Brand Awareness about Mobile Internet is Low </li></ul>UNSUITABLE
  107. 109. <ul><li>Education Factor- Low Knowledge About Mobile Internet . </li></ul><ul><li>Customer Care as a Intermediate Result in to Value Chain Gap. </li></ul><ul><li>Low Profit Margin on Airtel Recharge Coupons (Approx. 1.8% TO 2 % ). </li></ul><ul><li>No Aggressive Promotions. </li></ul><ul><li>More Focus on Selling of USB Modems (e.g. Reliance Net connect ,MBLAZE .etc) </li></ul>Retailer -Main Findings :About AIRTEL GPRS :
  108. 110. Consumer - Main Findings about AIRCEL : GSM PLAYER IN PAN in 18 CIRCLE <ul><li>Aggressive Brand Awareness by endorsing M.S. Dhoni as a Brand Ambassador. </li></ul><ul><li>. </li></ul><ul><li>STRENGTHS : </li></ul>WEAKNESS : <ul><li>1ST MOVER ADVANTAGE. </li></ul><ul><li>Unlimited Browsing . </li></ul><ul><li>Low Cost Plans (ECONOMIC </li></ul><ul><li>BUDGET PLANS ) -14 Rs. For 3 Days </li></ul>LOW SPEED (HEADACHE) WEAK Connectivity NO CONNECTIVITY <ul><li>.Poor Services </li></ul>
  109. 111. Critical Success Factor : Mobile Internet : BETTER NETWORK BETTER DEVICES BETTER PRICES BETTER EDUCATION
  110. 112. Project Findings : <ul><li>1 ) Strong Strategic alliance: The Company has a strategic alliance with SingTel. The </li></ul><ul><li>investment made by SingTel is one of the largest investments made in the world outside </li></ul><ul><li>Singapore in the company. The company also has a strategic alliance with Vodafone. The </li></ul><ul><li>investment made by Vodafone in Bharti is one of the largest single foreign investments </li></ul><ul><li>made in the Indian telecom sector. The company’s mobile network equipment partners </li></ul><ul><li>include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise </li></ul><ul><li>services (carriers), equipment suppliers include Siemens, Nortel, Corning, among Others. </li></ul><ul><li>The Company also has an Information technology alliance with IBM for its group-wide </li></ul><ul><li>information technology requirements and with Nortel for call center technology requirements. </li></ul><ul><li>2) Outsourcing: Bharti Airtel is Best Example of Ideal Outsourcing Model. The call center </li></ul><ul><li>operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, and </li></ul><ul><li>Teletech & Mphasis. </li></ul><ul><li>3) Overseas Market : Saturation & Intense Competition in India gives an Opportunity to Airtel to </li></ul><ul><li>Operate in Bangladesh, Sri Lanka, and South Africa making Airtel World’s Fifth Largest </li></ul><ul><li>Integrated Telecom Operator. (Currently Operating in 18 Countries ). </li></ul>
  111. 113. <ul><li>4) Brand Ambassador: Airtel has strong brand ambassador, Sachin tendulcar, Shahrukh khan </li></ul><ul><li>and A. R.Rehman , Sarman Joshi, Vidya Balan & R .Madhvan , Saif & Kareena Couple Factor to </li></ul><ul><li>promote there product and services. </li></ul><ul><li>5) Leader in Telecom market : Airtel is holding a position of Market Leader by having 30.25 </li></ul><ul><li>percent of the total market share (TRAI, March 2010). </li></ul><ul><li>6) Strong Trust among Common People : Strong Network Coverage makes it Popular among </li></ul><ul><li>Common Man. </li></ul><ul><li>7 ) Strong Management Structure : Sunil Bharti Mittal who is known as “First Generation </li></ul><ul><li>Entrepreneur “with Manoj Kholi, Sanjay Kapoor & Akhil Gupta (Mittal’s fourth Brother) are the </li></ul><ul><li>Key People in Success of Making Airtel as World’s Best Telecom Company. </li></ul>
  112. 114. Topic : 7 Conclusion :
  113. 115. Conclusion : <ul><li>” You can not solve a Problem at same Level that it was created. You have to rise above it to </li></ul><ul><li>next level”. </li></ul><ul><li>Albert Einstein </li></ul><ul><li>Indian consumers are in a phase of transformation from using basic telephony services to high </li></ul><ul><li>end value added services. The technology improvement has helped the sector to perform better </li></ul><ul><li>and has also expanded the meaning of the term “telecommunication” from just audio message </li></ul><ul><li>transformation to virtual presence of person. The sector clearly shows a great scope for future. </li></ul><ul><li>Indian Customers are Unique in Nature & now Flexibility in Choice Set of Service Providers has </li></ul><ul><li>Real Challenge in front of Telecom Players. Adding a New Customers & Retaining Old Customers </li></ul><ul><li>so that Profitability would be Maximized requires Effective Strategies to Fuel on Earning </li></ul><ul><li>Revenues. </li></ul><ul><li>Future of Mobile VAS in India </li></ul><ul><li>Mobile VAS industry in India is undergoing a lot of structural changes. Mobile VAS industry is </li></ul><ul><li>poised to grow and contribute greater revenues to the telecom industry. </li></ul>
  114. 116. <ul><li>Consolidation of MVAS content provider’s market: Currently, the MVAS market is fragmented </li></ul><ul><li>and consists of a large number of small content providers. Consolidation of MVAS market will </li></ul><ul><li>happen, leading to emergence of few strong content providers. This would enable content </li></ul><ul><li>providers to command greater share of revenue in the MVAS ecosystem. </li></ul><ul><li>Rational revenue structure: With the growth of MVAS market in India, more rationality will </li></ul><ul><li>emerge in the revenue structure. The revenue structure would be dependent on the value </li></ul><ul><li>added by the respective stakeholder in delivering the product to the end user. This would </li></ul><ul><li>enable the growth of MVAS market in India. </li></ul><ul><li>Rural MVAS market : MVAS market in India is largely dominated by urban population, with rural </li></ul><ul><li>constituting around 15% of the total market. Rural MVAS market would witness marginal </li></ul><ul><li>growth and would grow to around 20% in the next couple of years. The growth drivers would be </li></ul><ul><li>availability of vernacular content, entertainment services and voice based services. </li></ul>
  115. 117. <ul><li>Growth of M-commerce market: M-commerce has tremendous growth opportunity in India. </li></ul><ul><li>High penetration of mobile phones would give a boost to this industry. The stakeholders need </li></ul><ul><li>to work in tandem to ensure that issues like low awareness, security constraints, user </li></ul><ul><li>friendliness and pricing of the services are aligned towards the consumers. The services that </li></ul><ul><li>would provide boost to the m-commerce markets in India are mobile marketing, mobile banking </li></ul><ul><li>and mobile payment. A major step has been taken by RBI in issuing the mBanking guidelines. </li></ul><ul><li>Differential pricing of content: The telecom operators have already taken a step in this </li></ul><ul><li>direction. Further, in an attempt to cater to the expanding mobile subscribers in India, the </li></ul><ul><li>telecom operators will price the content in a manner suitable to the target respondent. </li></ul><ul><li>Deployment of NGN network: Introduction of Next Generation Network would enhance the </li></ul><ul><li>quality of services in the MVAS market in India. The users would be able to access more feature </li></ul><ul><li>rich services. NGN uses soft switch technology, which is based on Packet Switching/IP phone </li></ul><ul><li>and enables introduction of new MVAS speedily at reasonable cost. </li></ul>
  116. 118. Topic : 8 Recommendations & Suggestions :
  117. 119. Recommendations: <ul><li>Build the National Infrastructure </li></ul><ul><li>Make Metro cities Wi-Fi enabled </li></ul><ul><li>Migration from separate license regime to composite license regime </li></ul><ul><li>Establish a regulatory framework for carriage and content of telecommunication </li></ul><ul><li>Establish a single regulatory and licensing authority </li></ul>Role of Government : ” Marketing is not the Battle of Products. It is the Battle of Perceptions.” (Jack Trout & Ries)
  118. 120. Suggestions : 1) Develop plans targeting the specific user groups like youth, students and women. 2) Develop ultra economy plans for poor people; to whom maintaining a connection is still a luxury. 3) Educate customer on the benefits of Value-added services. 4) Company should make more promotional campaign in commercial areas. 5) Customer care services provided to the active customers should be more efficient towards the problem Solution. <ul><li>Price: Low Price Plans (Free Local Calls / Free STD Calls), Low Price GPRS. </li></ul><ul><li>Place: GLOCAL: GLOBAL + LOCAL </li></ul><ul><li>Think Global .Act Local. </li></ul><ul><li>Untapped Rural Market with Local Regional Contents & Value Added Services </li></ul><ul><li>Personal Networking: Strong Networking of Closed User Group like College </li></ul><ul><li>Campus, University, Industry , Malls . </li></ul><ul><li>” Don’t Tell me. Just Involve me. “is new Success Mantra. </li></ul><ul><li>Promotion: </li></ul><ul><li>A Brand is a Promise or Emotional Mindshare/Heart Share. Save the Environment </li></ul><ul><li>is the Latest Brand Promotion Mantra. </li></ul>
  119. 121. <ul><li>“ Save Cows. Save India.” In Hinduism, the cow is a symbol of wealth, strength, abundance, </li></ul><ul><li>selfless giving and a full Earthly life. “COW “– National Worship Animal for more than 70 Crore </li></ul><ul><li>Hindus. It could be a Powerful Appeal to attract Rural Population. </li></ul>Three Most Emerging Group in India: 1) Rural Group 2) Youth Group 3) Working Women Group
  120. 122. <ul><li>For Untapped Rural Market: ADVERTISEMENT CAMPAIGN: </li></ul><ul><li>” Har Gaon se Gaon ki awaj ko jodta hua! Humara Airtel ! ” </li></ul><ul><li>The whole advertisement and promotion is designed by taking urban youth in focus but there </li></ul><ul><li>are large no of youths in rural sector as well and they can be their future consumers. </li></ul><ul><li>Taking big stars as brand ambassador is good decision. But organizations can further use recent </li></ul><ul><li>bronze medalist Boxer Vijendra Kumar as there Endorsement. Vijendra is having good looking </li></ul><ul><li>personality and he belongs to rural area so in this way rural people will start associating </li></ul><ul><li>themselves with that brand. Airtel can also use BALIKA VADHU fame “ANANDI” (Avika gaur) </li></ul><ul><li>targeting rural women and rural youth. </li></ul>
  121. 123. For Youth Group: Advertisement Campaign: “ Yuva Bharat ka Yuva Airtel “. Although Sarman Joshi endorsement is successful today but for both Voice Service & Data Service Two Different famous Youth like Chetan Bhagat & Abhinav Bindra could create in Positioning Airtel as “Yuva Bharat ka Yuva Airtel .” For Working Women Group : Sania Nehwal would be the most appealing Star for Working Women Group.
  122. 124. Topic : 9 Learning's & Experiences
  123. 125. Overall Learning's And Experience Gain : <ul><li>Understanding of all the functions processes which is existing at AIRTEL GURGAON. </li></ul><ul><li>Understanding the culture of Bharti Airtel . </li></ul><ul><li>Understanding Revolution in Data Communication in Indian Telecom Industry. </li></ul><ul><li>Understanding Outsourcing Model of Business Organization. </li></ul><ul><li>Understanding Marketing Strategies of Circles of Telecom sector. </li></ul><ul><li>Understanding VAS Services role in earning Revenue in Falling ARPU. </li></ul><ul><li>Understanding GPRS (Mobile Internet ) Problems , Trends & Limitations. </li></ul><ul><li>Understanding Difference between Theoretical Knowledge & Practical Knowledge. </li></ul>
  124. 126. Bibliography: <ul><li>ON-LINE WEBSITE: </li></ul><ul><li> TRAI: </li></ul><ul><li> COAI: </li></ul><ul><li> DOT: </li></ul><ul><li> India Telecom News: </li></ul><ul><li> Afaqs Telecom Yatra: </li></ul><ul><li> Google Search </li></ul><ul><li>Airtel Website: </li></ul><ul><li>NEWSPAPERS: </li></ul><ul><li>The Times of India </li></ul><ul><li>The Economic Times </li></ul>
  125. 127. ASHISH SHARMA E-Mail: [email_address] [email_address] ANY QUESTIONS ?????????