The document outlines the evolution of the telecom industry in India from 1992 to 2009. It discusses key milestones like allowing private players, establishing an independent regulator TRAI, adopting new licensing regimes, and increasing FDI limits. It also summarizes Airtel and Reliance's strategies, targeting, advertising campaigns, and future plans to expand in rural India and new technologies like 3G and broadband.

1. Evolution of Telecom In India Go-ahead to the CDMA technology INDIA Private players were allowed in Value Added Services National Telecom Policy (NTP) was formulated 1992 1994 1997 Independent regulator, TRAI, was established NTP-99 led to migration from high-cost fixed license fee to low-cost revenue sharing regime 1999 2000 2002 BSNL was established by DoT ILD services was opened to competition Internet telephony initiated Reduction of licence fees 2003 Calling Party Pays (CPP) was implemented Unified Access Licensing (UASL) regime was introduced Reference Interconnect order was issued 2004 Intra-circle merger guidelines were established Broadband policy 2004 was formulated—targeting 20 million subscribers by 2010 2005 FDI limit was increased from 49 to 74 percent Attempted to boost Rural telephony 2006 Number portability was proposed (pending) Decision on 3G services (awaited) 2007 Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. ILD – International Long Distance Number portability approved 2009

2. Demand for VAS & Broadband services Among Youth 28 % Urban Population Rapid Urbanization Rising Income level Changing Demographics Source: Mckinsey Report

3. Technologies CDMA – Already there are big players in this segment Reliance , Tata 3G – Value added services potential still to be tapped fully 2G/3G – GSM Currently commands 70% of mobile subscribers in India

4. Pradeep (09020242026) Govindrajan (09020242049) Pritam Bhattacharya (09020242050)

5. Vision 2010 By 2010 Airtel will be the most admired brand in India: Loved by more customers Targeted by top talent Benchmarked by more businesses

6. Vision 2020 To build India's finest business conglomerate by 2020 Supporting education of underprivileged children through Bharti Foundation Strategic Intent: To create a conglomerate of the future by bringing about “Big Transformations through Brave Actions.”

7. 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”

8. VISION “ We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”

9. MISSION To attain global best practices and become a world-class communication service provider-guided by its purpose to move towards greater degree of sophistication and maturity. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To encourage ideas, talents and value systems.

10. Core Values of AirTel Performance Dynamism Leadership

11. Core Values of Reliance Customer first Operate with honesty and integrity Treat every individual with dignity and respect

12. TARGETING Elite Up market professionals Entrepreneur with business plans Low income mass category Youth Women and senior citizens by post paid connection

13. TARGETING Lower-middle, Middle & Upper class Rural areas Entrepreneur with business plans Low income mass category Women and senior citizens by post paid connection

14. POSITIONING “ Power to keep in touch” “ Touch tomorrow” “ Live every moment” “ Express yourself”

15. TIME LINE

16. “ Power to keep in touch” Positioned in premium category aimed at elite class of society Convey power of instant communication Perception of aspirational and lifestyle brand Airtel decided that the brand should always connote leadership–be it in network, innovations, offerings, services Sponsored games like Golf

17. “ Touch tomorrow” New campaign launched to facilitate entry into new markets Started to capture mass market A new logo for Airtel- Red , black and white colors with ‘Airtel’ enwrapped in an eclipse. Logo indicated core value of the brand: leadership, performance and dynamism

18. “ Live every moment” Launched to capture the imagination of the customer Projects a persons desire to spontaneously communicate through words, emotions, sights, sounds, thoughts and actions over boundaries, distances and geographies

19. “ Express Yourself” In 2003, Airtel repositioned its brand with “Express yourself” campaign Changed its logo to give more energetic and younger look Highlight capability of Airtel’s performance and network coverage Launched in regional language

20. TIME LINE

23. First Mover Advantage

24. First Mover Advantage

25. RURAL STRATEGIES Airtel follows “Match-box strategy” The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2009

26. RURAL STRATEGIES Reliance follows “Post-card strategy” Covers over 4,50,000 villages and hopes to expand to other 1,00,000 by 2015

27. AIRTEL ADVERTISEMENT Airtel basically uses two appeal to connect to the users Emotional Humorous Total advertising budget of Airtel is Rs. 150 crore

28. RELIANCE ADVERTISEMENT Reliance basically uses two appeal to connect to the users Patriotism Emotions Total advertising budget of Reliance is Rs. 130 crore

29. The Ad diagnostics score helps to understand how far the Ad has been able to break the clutter

30. INTERNET ADVERTISING Massive advertising through Google AdSense BidVertisers

31. INTERNET ADVERTISING Massive advertising through Google AdSense Microsoft adCenter

32. PUBLICITY AND EVENTS Sponsored events Delhi half marathon Delhi golf tournament Sponsored TV shows Big Boss KBC Indian Idol

33. PUBLICITY AND EVENTS Sponsored events IPL World Cup Cricket

34. OUTCOME OF THE CAMPAIGN

35. SWOT Largest Telecom Player in India - ~80Mn, 22.6% Market Leader Strong Leadership – Sunil Bharti Mittal Recognized Globally Pan India Presence Strong Financials Strong Brand Image – Marketing Team Outsourcing of Core Systems Network Coverage (earlier) Strengths Weakness

36. SWOT Bharti Infratel – Cutting Down cost in Rural area Match Box Strategy – Scale of Penetration Current Tele-Density – 30.6 is still low among developing countries Low Broadband Penetration, Rural Telephoney India centric – Major revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth New Players coming in India Uncertain Economic conditions Opportunities Threats

37. SWOT Strength Low Entry Cost Commission Structure Fast Activation Process Network Connectivity Data GPRS Weakness Branding Image Distribution problem Limited product portfolio- Only Mobile Lack of Competitive Strength Limited Budget

38. SWOT Opportunity Preference of GSM over CDMA New Specialist application Rural Telephony New Market, Vertical, Horizontal Competitors` Vulnerabilities Threat Political destabilization. New Entrants IT Development Market Demand

39. AIRTEL STRATEGY

40. Airtel – Strategy MANTRA : Focus on Core Competencies and Outsource the rest!

41. Strategy Partner with leading players in telecommunication across the globe. Managed to work with the best of domain specialists globally and emerge as a world class entity. Operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

42. Outsourcing deals in 2004 Ericsson was given the mandate to provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles. IBM was given the mandate to handle the back office requirements of Airtel’s presence in India

43. RELIANCE STRATEGY

44. Reliance – Strategy MANTRA : To reduce the cost to the consumer, thus focusing on a market driven by volume !

45. Strategy Customer Generation - Tapping in to Internal Resources Dhirubhai Ambani Entrepreneurship Programme – A New Way to Market Advertising – Educating Masses and Evoking Passions RWorld – Reliance Way of Putting the World in Your Hands Product Innovations - Connecting with Every Section of Society

46. FUTURE STRATEGIES

47. Future Strategies Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.

48. FUTURE STRATEGIES

49. Future Strategy An enterprise Netway revolution will bring the possibility to provide broadbandexperience to every desktop A convergence revolution will provide high-speed networks to millions of homes

50. Road Map – Growth Path VPN & VoIP WiMAX 3G 2G/2.5G