Future of Telecom Industry in india- - Describe four possible scenarios in the next five years and justify the most possible. On the basisi of our report Bharti Airtel found to be the star 2015------

1. Telecom 2015
five telling years

2. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

3. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

5. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

6. The telecom industry has undergone significant structural change
over the last decade; how will it evolve over the next 5 years?
• With growth of wireless telephony, land line volume is declining.
• With increasing competition ARPU is declining .
• VOIP and other INTERNET based telephony, bypass Telecom systems.
• New technologies in Telecom, demand higher CAPEX with no scope of
matching ROI.
• Price wars to somehow gain business volume; hamper income and the
business viability.
• Stake holders are compelled to follow the market in pricing, in order to
retain market share.
-How will communications evolve over the next five years?

7. Four future scenarios

8. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

9. Standstill
USAGE: connectivity usage similar to today – personal, download etc.
Services: Packaged connectivity and communication services prevail.
Revenue model: Start war of tariff packages, emphasis on cost control.
Industry Structure: declining of small players
Access: will be depend on advanced technology, which will affect 2G,3G
services.
Regulation: will be strict.

10. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

11. Progressive
USAGE:- Usage Will be high in this case
SERVICE:- Customer require premium connectivity
ACCESS:- Android and low cost phones drive this scenario
REVENUE MODEL :- Wholesale driven with premium connectivity a key feature for
revenue generation Carriers are able to generate premium prices for ultra
broadband.
INDUSTRY STRUCTURE:- A co-operative of horizontally integrated infrastructure
providers catering to a myriad of asset-light service providers such as OTTs,
Banks, Utilities, Governments etc.
REGULATION:- As it is today

12. TRIGGER / REALIZATION PATH FOR
SCENARIO
Economic and Investment and Competition Consumer and
Financial Technology Regulation Markets
Investors
confident of Widespread National govt. Increase use/
higher return deployment of fund open availability of
from open ultrafast infrastructure for connected
connectivity broadband economic growth devices
innovation

13. Current Positioning and Way forward

14. Scope of Wallet Business
• Scope of business for the MTM Service Provider.
– Most money transactions are virtual money moves between
mTm-acc & mTm-acc within the MTM system. Therefore, most
of real money remain within the system.
• Potential of MTM as a business.
– There will be above billion phones in India soon.
– With a minimum monthly average of Rs.10000/- transaction the
annual business will be a mind boggling sum of Rs. 120 Trillion.
– The surplus liquidity available could be usefully deployed.

15. Critical Success Potential Capability
Attributes Recommendations
Bharti Vodafon
Progressive Idea
Airtel e
Partnership with other
Funding model for open infrastructure providers
Good
access network Good Medium including
infrastructure municipalities extend ultra-fast
broadband coverage
Accessibility in rural Collaboration with good Rural
Good Weak Medium
market retailer
Build modular business
Dynamic Business Excelle architectures based on
Good Good
Design nt standards and flexible, common
technology platforms
Create new operating model
Structurally separate Good
Good Medium and organization to
Network and services support structural separation
Companies have to start
Innovative application Excelle
Good Good some new Value added
Such as M-Commerce nt
services

16. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

17. Surprise Free
USAGE:- High Usage
SERVICE:- Increased customer adoption digital lifestyle services
ACCESS:- High access required specially in rural. areas
REVENUE MODEL:- Low because of immense competition
INDUSTRY STRUCTURE : Some emerging market providers expand globally.
REGULATION : Liberal policies.

18. Critical Success Potential capability
Attributes RECOMMENDATIONS
Vodaph
SURPRISE FREE Airtel Idea
one
Shared infrastructure with
INFRASTRUCTURE Good Good Medium reduced Capex and
increased connectivity.
Medium Medium
3G Good(9) INFRASTRUSTURE
(13) (11)
Collaboration with good
RURAL MARKET Good Weak Medium
Rural retailers.
VALUE ADDED Excellen Generate more alternatives
Good Good
SERVICES t for consumers .
NUMBER PORTABILITY Third First Second Improve Quality Service.

19. Agenda
• Recap of stage one and stage two
• Scenario framework for Telco, 2015
– Standstill
– Progressive
– Surprise free
– Disruptive
• Companies Standing
• STAR 2015
• Summary and conclusions

20. Disruptive
USAGE: Demand will be high
Services: Lasses faire
Revenue model: Typically lowering price (Skype)a
Industry Structure: More rivals are entering leading to competition
Access: High value services to customers
Regulation: Deregulation

21. Percentage of Active Subscribers
(sources- TRAI)
Operator % of Active
users operator
Reasons -
wise  Multiple sim users or subscribers
BHARTI 89% signed up only for the freebies that
IDEA 87% came bundled with startup kits.
VODAFONE 75%  Most of the new operators are in the
RCOM 67%
business of throwing Sims to collect
a customer.
AIRCEL 59%
 Unsatisfactory service by new
BSNL 59%
providers.
MTS 46%
TATA TELE 45%
VIDEOCON 39%
UNINOR 31%
STEL 24%

22. Strategy In rural
• Studies the commercial viability of a rural based on parameters
such as source of livelihood, average income, and involvement in
frequent commercial transactions or travels.
• Qualifying villages are first to receive a base station
• Bharti Airtel tracks the revenue generated per base station (instead
of ARPU, which is considered less relevant in a rural context).
• Use of local languages, Vans.
• Set up PCO’s to increase brand awareness and service.
• Customer service centre are set up with the use of local employees
• Bharti Airtel has already established over 18,000 service centers in
rural India, covering over 400 languages and local dialects

23. Future Strategy
• Changes in the organization structure
• QUALCOMM (US based company- has broadband
license in four circle-Mumbai, Delhi, kerala &
Haryana)
• Also keep an eye on- UNINOR, VIDEOCON, STEL.
• Additional 40,000 towers for rural market

24. Strength And weakness
• Strength
– Very focused on Telecom
– Leadership in fast growing telecom sector
– Pan-India footprint
• Weakness
- Price competition from vodafone and idea
- Untapped rural market.

25. Rohit Kumar Gupta
Sunny Tomar
Saud Hasan
Deepak Kumar Verma
Raghav Mehta
Vinod Kumar