- The Indian telecom sector has grown rapidly, with wireless subscribers increasing 61% between 2006-2007 to reach 209 million. Total telecom subscribers are projected to reach 500 million by 2010. - Key drivers of growth include India's large middle class, falling tariffs, lower handset prices, and expansion of services into rural areas. Challenges include limited spectrum availability, lower profits from falling tariffs, and delays adopting new technologies. - Airtel is the largest player with 49 million subscribers and a 23% market share. Reliance Communications aims to capture 25% market share by 2009 through strategies like expanding rural penetration, launching a pan-India GSM network to target Airtel and Vod

1. TELECOMMUNICATION

2. If the whole history of human
civilization was a day…
modern telecommunications
(the telegraph and all that followed),
would only represent our last 30
seconds.
That's how recent all of this has
been……
INTRODUCTION

3. • India is the Fastest Growing Telecom Market in the world with net
additions of 8 millions subscribers a month.
• The total subscriber base, has crossed 250 million and the Tele-Density
has reached 22%.
• Wireless Subscriber Base is 209 Million and Landline Base is 40 Million.
• By 2010, Indian Telecom Base is Projected to reach 500 Million and
become the World’s Second Largest after China.
Sep-06 Sep-07 Net Addition % Growth
Wireless Base 130 209 79 61%
Landline Base 40.48 39.58 -0.9 -2%
Broadband Base 1.82 2.67 0.85 47%
Figures in Million Subscribers
INDIAN TELECOM SECTOR (As on Sep 2007)

4. • Sizeable Middle Class with increasing Purchasing Power.
• Falling Mobile Tariff with Call Rates being among the lowest in the world.
• Significant reduction in the prices of Handsets with entry level handsets
available for as low as Rs. 777/- making it affordable for the Masses.
• Expanding the reach of Telecom Services into Semi-Urban & Rural Areas.
• “Value Added Services” & other Innovative Offerings by Service Providers
extending the utility of the Mobile Phone.
INDIAN TELECOM SECTOR – KEY DRIVERS

5. • Limited Availability of Spectrum resulting limiting expansion plans
and Poor Network Quality.
• Falling Tariff rates & Unrealistic Bids for Spectrum leading to lower
profitability.
• Policy Related Uncertainties leading to delay in adopting new
technologies like 3G & 4G.
• Huge Fixed Investments in terms of setting up Towers & Base
Stations in Semi-Urban & Rural Areas.
INDIAN TELECOM SECTOR – CHALLENGES AHEAD

6. Key Players Subscriber Base MARKET Share
Airtel 49 23%
Reliance 36 17%
Vodafone 36 17%
BSNL 34 16%
Tata Indicom 20 9%
Idea 19 9%
Others 16 8%
Wireless Base 209 100%
AIRTEL is the market leader with 49 Million Subscribers.
INDIAN TELECOM SECTOR – MAJOR PLAYERS

7. RELIANCE COMMUNICATIONS - PRODUCTS

8. SWOT ANALYSIS
STRENGTH
 Network coverage
 Product Range
WEAKNESS
 Weak “Service” Image
 Negligible GSM Share
OPPORTUNITY
 GSM Launch
 3G Technology
THREAT
 Government policies
 GSM lobby

9. CURRENT STRATEGY
•Increase Penetration in Rural Markets.
•Use CDMA Technology to reach the Price Sensitive
Mass Market.
•Build a Pan-India Presence in GSM.

10. COMPETITION WEAK SPOTS
 “Poor Network Quality” of Airtel & Vodafone
 Limited Choice in GSM
 Customers unwilling to change Mobile Numbers
 No significant difference across Operators

11. OBJECTIVE:
• To capture 25 % MS of telecom market by March ’09
• To establish Reliance GSM as a better option to Airtel and
Vodafone
PROPOSED STRATEGY - OBJECTIVE
Launch

12. PROPOSED STRATEGY
• To consolidate Reliance CDMA and penetrate rural market
• Launch Reliance GSM across the country and target
Airtel and Vodafone

13. POSITIONING:
Superior Network with Value for Money Rates
TARGET SEGMENT:
GSM –
• Tier 1 & Tier 2 Cities
• Higher & Upper Middle Class segment
CDMA –
• Tier 3 Cities & Rural Areas
• Lower Middle Class & Lower Class segment
DIFFERENTIATION:
• Superior Network
• Value Added Offering
PROPOSED STRATEGY

14. RELIANCE GSM Launch – Tactic 1
 Campaigns in Local Trains &
Buses challenging users to test
the product & rate it against their
Airtel & Vodafone
 High Decibel advertising in
Outdoor, TV & Radio focusing on
superior network as compared to
competition
 Money Back Offering for calls
with talk-time less than “5
seconds”

15. RELIANCE GSM Launch – Tactic 2
 Acquire 30 % of GSM Customers
from Vodafone & Airtel
 Mobile Number Portability to be
introduced in major metros by
June ‘08 allowing customers to
retain their mobile number
 30 % Churn predicted as per
Global experience in the First year
 Advertising to encourage
customers to experience superior
network
 Migration of existing High
Revenue CDMA users to GSM
Network

16. RELIANCE GSM Launch
Integrating “Entertainment” with “Communication targeting the
Youth Segment (18 Yrs to 35 Yrs)

17. CDMA - MOBILE FOR THE MASSES
• Launched Lowest Entry Level in the
World with its “Classic” range of
Handsets in May ’07.
• Became the First Operator to challenge
the Market by offering a handset below
Rs. 1000
• Manufactured by ZTE exclusively for
Reliance they come in 3 variants
Classic 202 – Rs 777
Classic 203 – Rs 844
Classic 204 – Rs 888

18. CDMA - MOBILE FOR THE MASSES
OBJECTIVE :
 Penetrate the Rural Segment
 Enter into an exclusive alliance
with a leading Handset
Manufacturer to build a
handset at Rs. 500/-

19. MOBILE FOR THE MASSES - OFFERING

20. Way Forward…
 Focus on attracting the high value
customers from the Metros who
spend over Rs. 2000/- a month.
 Customer requiring High Speed
Data Access and Entertainment
while on the move.
 There is an unfulfilled “Esteem
Need” which is not catered to by
the current product offerings

21. POWER OF 3
Superior technology and bandwidth
of 3G will add an invaluable
dimension to modern life.

22. POWER OF 3
Person to person video calls
We can use 3G devices to make a
video call to our family-see them as
we talk and let them see us as well.

23. POWER OF 3
We will soon be able to access video
clips of news and sporting events
anytime, anywhere.
We will be able to exchange
‘postcards’, listen to music, play
interactive games or book tickets to
see live events.
Entertainment

24. POWER OF 3
News, entertainment and a wealth
of information tailor – made to meet
each individual’s specific interests
will be available at the touch of a
button.
News and information

25. 3G mobile linkups will routinely be
used in daily business situations.
We will hold video conferences with
clients, send pictures, documents or
data and be able to receive instant
feedback without meeting up or
even being in the office.
Business
POWER OF 3

26. The ‘always on’ Global Positioning
System (GPS) will offer centralized
location based intelligence.
In turn, operators in the field will enjoy
superb navigation assistance with instant
access to street maps, traffic reports and
weather information.
Global Positioning
POWER OF 3

27. We will soon be able to conduct
Financial transactions while on the
move.
Simply by keying in our own secure
payment pin number, we will be able to
place a bet, bid on an on-line auction,
trade stocks or simply pay for our
groceries or taxi fares.
M-Commerce
POWER OF 3

28. RELIANCE LAUNCHES THE POWER OF 3

29. RELIANCE LAUNCHES THE POWER OF 3

30. RELIANCE LAUNCHES THE POWER OF 3

31. THE DREAM COMES TRUE…

32. THANK YOU
Questions?