Idea Cellular provides wireless services in India and has grown from 7 million subscribers in 2006 to over 89 million in 2011; it aims to rollout 3G services to 200 towns by 2011 and 4,000 towns by 2012 to offer higher data services. The internship report discusses Idea's operations, competition, pricing strategies for 2G and 3G services, and the intern's targets and achievements in promoting Idea's products and services.

1. Pricing Strategy Adopted in 3G Technology
Within Telecom Sector
By: ISHITA SHAH
PGDM 2011-13
Summer Intern, IDEA CELLULAR LIMITED
Enrollment no:030301046

2. Contents…
• Overview of Company.
• Competition.
• SWOT Analysis.
• Objective of SIP.
• Target.
• Working Strategy.
• Achievement.
• Learning and Experience.

3. The Company: Introduction
• The company was incorporated as Birla
Communications Limited on March 14, 1995 and
commenced business on August 11, 1995.
• Registered office was in Mumbai, Maharashtra.
• The company name was changed to Birla AT&T
Communications Limited on May 30, 1996 following the
execution of a joint venture agreement dated
December 5, 1995 between AT&T Corporation and
Grasim Industries Limited.
• Changed name to Idea Cellular Limited and launched
"Idea" brand name in 2002.
• It provides wireless and long distance voice and
internet services to consumer and enterprise markets
• Idea became a pan-India operator in 2009

4. • The market positioning of Idea reflects the strength of its brand
considering the fact that Idea added 11 out of its total 22
service areas in the past four years.
• Today, it is a pan-India player with commercial 2G operations in
22 service areas, and 3G in nine of these circles.
• Its subscriber base has grown multifold, from 7.37 million in
March 2006 to 89.5 million in March 2011.
• Idea holds 16 per cent stake in Indus Towers, a joint venture
with other telecom majors Bharti Airtel and Vodafone.
• Indus Towers is the world's largest tower company with over
one lakh towers.

5. Vision: To be the most customer-focused mobile service brand,
continuously innovating to help liberate our customers from
the shackles of time & space.
Mission : We will delight our customers while meeting their
individual communication needs time anywhere. We survive
because of our customers.

6. Founding Fathers
Seamlessness
Integrity Speed
Passion
Mr. G. D. Birla and Mr. Aditya Birla Commitment

7. OVERVIEW OF 2G AND 3G
• 2G NETWORK:
– Evolved from 1G
– First system that used digital
signals
– Improve speech quality,
coverage and security.
– It introduced data services for
mobile,starting wth SMS text
messages

8. • TECHNOLOGY USED IN 2G
• Divided into TDMA and CDMA based
standards depending upon
multiplexing used.
– TDMA Standards:
(a) GSM (Global System Mobile)
(b) Interim Standard 136(IS-136)
(c) Pacific Digital Cellular(PDC)

9. 3g network
• 3rd generation mobile
communication.
• It offers high speed data rate.
• Offers wide range of services.
• Increased bandwidth.

10. Road to 3g

11. where lies the difference???
• 2G use different switching techniques for voice and data,
where 3G uses single switching for any kind of data.
• 2G is circuit-switched, but 3G is packet-switched.
• GSM uses TDMA technology with narrowband 200Khz, 3G
(WCDMA) use CDMA technology with broadband 5Mhz.
• 2G has low data rate, voice oriented services.
•
3G has higher data rate and data oriented services
3G enables Multiplexing of services with different quality
requirements on a single connection, e.g. speech,
video and packet data.

12. GSM EVOLUTION FOR DATA ACCESS
Umts
2mbps
2003+
Edge
Gsm,9.7kbp Gprs
384kbps
s,1997 115kbps
2003
2000

13. Wireless Access Evolution
Subscribers
 Broadband
 Network
 Broadband Simplification
 New Services  Cost of
Ownership
 Efficiency
 Voice Quality
 Portability
 Coverage  Capacity
 Mobility
Voice Broadband

14. Entry into
3G 3G
• Idea's 3G services start from chattisgarh, Gujarat and Hp & MP
•
It Plans progressive pan-India rollout of 'Gold Standard' 3G services
to ensure unmatched customer experience in 200 towns by April '11
and 4,000 towns by 2012.
To enjoy Video Conferencing, Video on Demand, Mobile TV and
high-speed Internet, Introduces Time based Billing plan for 3G
services
• Idea has traditionally focused on growth from semi-urban heartlands
of India and will continue to drive its 3G services from these
industrial, agricultural and educational region.

15. Product Offerings

16. The Customer:
TIER 1- Metropolitan Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile services
Services GPRS, voice and SMS based entertainment services, call-forwarding,
call conferencing, regional, on-net, national and international
roaming, GSM gateways, vehicle tracking; and Automatic Meter
Reading
Channels Direct Outlets
Unique Competencies 6 SIGMA, Net Setter Data Cards & Blackberry Solution, largest
customer base,, market leader in the Maharashtra, Strong
distribution channels

17. TIER 2- Urban Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile services
Services GPRS enabled information services like internet
browsing, data cards and mobile email, call-
forwarding, Ring Back Tones, background Music,
voice and SMS chat, ringtones, horoscopes,
expert advise and subscription services;
Channels Both Direct & Indirect
Unique Competencies 6 SIGMA, High quality network structure,
Centralization of several applications.

18. TIER 3 – Rural Circle
Customer Segmentation Description
Products pre-paid and post-paid mobile services
Services Krishi Voucher,, Providing health care
services
Channels Indirect
Unique Competencies usage of solar power for Base Transceiver
Station (“BTS), frequency optimization
techniques

19. Competition

20. MARKET SHARE
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
INDIA
5.00%
0.00% GUJARAT
INDIA

21. Price of net setter
1800
1600
1400
1200 IDEA
MTS
1000
VODAFONE
800 AIRTEL
600 RELIANCE
TATA PHOTON
400
200
0
PREPAID POSTPAID

22. Network of 3G in Gujarat
250
200 IDEA
TATA PHOTON
150 MTS
RELIANCE
100
AIRTEL
AIRTEL VODAFONE
50
MTS
0
IDEA
cities and towns

23. • Reputation of Brand
• Technology innovation used
in Idea
Strength • Advertising and promotion in
Idea
• High quality network
structure
• No Broadband service
• Low coverage in India
• Market leader only in North
Weakness India
• Direct to Home Service is not
available
• Less market share in urban
market

24. • The Indian
telecommunication industry
is growing at faster rate
Opportunities • Low penetration, more
particularly in rural India.
• New 3G launch
• Intense competition.
• Customers loyalty is low
• Increasing cost of promotion.
Threats
• Increased network cost.

25. Project Title
Pricing Strategy Adopted in 3G
Technology Within Telecom Sector

26. PRICING
• “Pricing strategy has been always more of the
poker game than a science.”
• “Successful pricing is an art, not a science.”

27. Pricing Strategies

28. Penetration Pricing

29. Market Skimming

30. Influence of Elasticity

31. Influence of Elasticity
• Price Inelastic:
• % change in Q < % change in P
• e.g. a 5% increase in price would be met by a fall in sales of
something less than 5%
• Revenue would rise
• A 7% reduction in price would lead to a rise in sales of
something less than 7%
• Revenue would fall
• Price Elastic:
• % change in quantity demanded > % change in price
• e.g. A 4% rise in price would lead to sales falling by something
more than 4%
• Revenue would fall
• A 9% fall in price would lead to a rise in sales of something
more than 9%
• Revenue would rise

32. POSTPAID:
MTS RELIANCE TATA IDEA VODAFONE AIRTEL
UNLIMITED ADVANCE USUAGE REGULAR USUAGE MONTHLY
RENTAL BASE PLAN BASE PLAN PLAN
REGULAR MY BEST TIME BASE UNLIMITED
PLAN PLAN
ADVANCE SILVERPLAN CASH BACK ADVANCE
OFFER RENTAL
DAY-NIGHT PLANS GOLDEN DEVICE
PLAN FREE OFFER
PLATINUM
PLAN

33. PREPAID:
MTS RELIANCE TATA IDEA VODAFONE AIRTEL
UNLIMITED MB PACKS MONTHLY REGULAR USUSAGE MONTHLY
PLANS BASE
MONTHLY UNLIMITED
LONG LONG
VALIDITY VALIDITY
WEEKAND
PLANS

34. POSTPAID TARIFF:
IDEA TATA MTS RELIANCE AIRTEL
1GB RS 200 - 549 450
2GB RS 349 - 649
3GB 599 - 699 670
5GB - 850 RS - 750 RS 750 RS
10GB 1250 1100 - 950 RS
15GB - 1400 1200 RS

35. PREPAID TARIFF
MTS RELIANCE IDEA AIRTEL VODAFONE
1GB 647 RS 345 RS 450 RS
2GB 595 RS
5GB 798 RS 800 RS 745 RS 750 RS 801 RS
10GB 999 RS 1000 RS 1245 RS 1051 RS
15GB 1298 RS 1300 RS

36. •To make a understanding about the Company
IDEACELLULAR LTD.
•To make a understanding about the services which
they provide
•To know about the customer base of the
IDEACELLULAR.

37. Targets
• First week of our sip we were not given any such
target, just we were told to sell the maximum dongles
and prepare a competitive report on six major
operators of telecom industry namely; AIRTEL, MTS,
TATA, RELIANCE, VODAFONE.
• Third week we were given target of logging the five
dongles.
• We were also given 103 accounts individually of
corporate to be mapped.
• Sixth week we were given a target to logged 4 dongles
in ten days and one idea smart phone.
• We were also given a trainee to whom we have to
trained and also recruit one trainee from our source.

38. Strategy Employed
PROSPECT CALLS SUSPECT CALLS

39. Achievements
• Was the first to achieve the highest loggings in
the first week of sip and was awarded for the
same.
• Finished the target of logging the five dongles in
the second month.
• Had made more than 50 calls in the corporate
• Mapped around 30 companies with all
information from turnover to no.of sim cards to
data cards to number of employees etc.

40. Learning
• Basic Definition of sales
• How to take decision
• Team building, I to WE
• Documentation, difference between the
company account and the individual account.
• Hard core sales
• Network building