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Telecom group 2 section a

The document discusses the telecom industry in India. It provides an overview of key metrics of the industry such as revenue, number of subscribers, market share of major players, and average revenue per user. It also examines the industry structure and distribution channels. Recent trends are mentioned such as the growing importance of rural subscribers, internet, and broadband. Challenges and opportunities for the industry are highlighted. The telecom industry's impact and relationship with other sectors like infrastructure, mobile devices, banking, education and healthcare are briefly covered.

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GROUP 2 SECTION A
 EXECUTIVE SUMMARY  INTRODUCTION  ENVIRONMENT SCAN  PRESENT SCENARIO  FUTURE PROSPECTS  OPPORTUNITIES & CHALLENGES  EMPLOYMENT PROSPECTS  INSIGHTS
 The telecom industry has been studied in detail, with focus on world data  The various factors which are currently influencing the telecom industry are studied using PEST analysis  The telecom industry, with respect to India , has been studied for both wired & wireless segments  Future prospects with focus on implications of Telecom industry on others, have been looked into  Insights into the potential focus areas of Telecom industry, have been looked into  Future research areas have been identified
Industry Insights 60716 Crore Revenue 933.01 Million Subscribers 97% Wireless Subscribers 93% Prepaid Subscribers Airtel 22% Vodafone 18% IDEA 15% Reliance 12%Tata 7% Aircel 7% Unitech 4% BSNL 12% Others 3% Market Share of Major Players Channel Structure • 2 tiered distribution model • For mass market reach • Focused on prepaid • Exclusive • Sales and service • Primary focus on post-paid, terminals & data • Selling directly to the end customer • Focused on post-paid • Large format outlets/chai n stores • Future growth driver for Data & 3G • Enterprise VGE National A/C SME • Includes fixed line and data Indirect Channel Exclusive Retail Direct Channels Modern Trade B2B Business Monthly ARPU: Rs 113 Idea Recorded highest Net Adds Wireless Market Share Rural: 41% Urban:59% 22 Circles Highest Wirless Subscribers: UP East Key Pointers Sector Overview
Telecom Fixed line (wireline) Mobile Wireless Internet services Comprises establishments operating and maintaining switching and transmission facilities to provide direct communications via airwaves Consists of companies that operate and maintain switching and transmission facilities to provide direct communications through landlines, microwave or a combination of landlines and satellite link-ups Includes internet service providers (ISPs) that offer broadband internet connections through consumer and corporate channels Source: Aranca Research
Source: Telecom Regulatory Authority of India, Business Monitor
About 6.9 billion mobile connections globally, which are growing at an annual rate of 7.36% Around 2 billion internet users globally which is expected to reach approx. 5 billion by 2020 Mobile 4G services has 2.85% of the world market penetration at the end of 2013 while 3G had that of 28.45% China has largest mobile subscriber base of approx.1 billion people India ranks second with close to 900 million mobile subscribers Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020 Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020 ARPU is stagnating to around $24.6 while Minutes of Use (MoU) show an upward trend around 296 per connection Telecom industry is in the midst of a transformational shift, driven by a huge surge in data traffic on telecom networks More emphasis is laid globally to deal with challenges like spectrum exhaustion, greater speed of mobile data connectivity Source: Aranca Research
39.1 40.8 37.3 33.3 33.2 32.1 0 5 10 15 20 25 30 35 40 45 FY13 FY12 FY11 FY10 FY09 FY08 Wireline/Wireless Revenues ( $ Bn) Wireless and wire line revenues in India • Wireless and wireline revenue increased at a CAGR of 10.4 per cent to US$ 39.1 billion over FY06-13 Composition of telephone subscribers in India • The wireless segment (96.6 per cent of total telephone subscriptions) dominates the market, while the wire line segment accounts for the rest 58% 39% 2%1% Urban Wireless Rural Wireless Urban Wireline Source: Telecom Regulatory Authority of India, Business Monitor
Changing Value Chain Source: http://www.atkearney.com/operations/ideas-insights/article/- /asset_publisher/LCcgOeS4t85g/content/rewriting-india-s-shared-services-playbook/10192 Network Development Network Management Platform Development and operations Marketing and Product Development Sales Service Delivery Billing and Collection Network Development Network Management Platform Development and operations Marketing and Product Development Sales Service Delivery Billing and Collection Traditional Telecom Value chain Emerging Telecom Business Model in India
Political -Government Stability -Taxation Laws -Policy reforms -International Relations -Interconnection Regulation for Broadcasting Sector Economic -GDP growth trends -Inflation Rate -Per Capita Income -Interest rates -Industrial production -Lifestyle Changes -Consumer Activism -Population Mix and Growth Rate -Labor Cost -Regional Shift in Population -R&D Spending -Technology Transfer -Internet Penetration for Business Transactions -New and customized offerings -Technological shifts affects costs, quality and leads to innovation PESTSocial Technological
Telecom Regulatory Authority of India(TRAI) Independent regulator in India Established on 20th February 1997 Regulate telecom services, fixation/revision of tariffs services Fair and transparent policy environment, promotes level playing field Tariff, Interconnection and services Department of Telecommunication(DOT) Part of Ministry of Communication and Information Technology Formulate policies for accelerated growth Responsible for grant of licenses Enforces wireless regulatory measures by monitoring wireless transmission of all users Telecom Disputes Settlement and Appellate Tribunal (TDSAT)  Dispute involving parties like licensor, licensee, service provider and consumers are resolved by TDSAT  Any direction, order or decision of TRAI can be challenged by appealing in TDSAT Cellular Operators Associations of India(COAI)  Official voice for Indian telecom industry  Interacts & exchange ideas directly with Ministries, Policy makers, Regulators & Service providers Source: TRAI Website
These Industries are dependent on network but also growth of network is dependent on these sectors E commerce: As e-commerce increases more connectivity and speed will be required Banking: As law becomes more lenient, provides opportunity for extra revenue Other Industries Telecommunication towers plays a major role Availability and quality of towers effect the industry Pricing of services have direct impact on cost Sharing of towers allows operator to have less assets Major players are Bharti Infratel ltd, Reliance Infratel Ltd. , Nokia Siemens network, Indus towers Infrastructure Mobile phones and telecommunications are complementary Increase in use of services as handsets become cheaper Technology advancement, requirement of high speed Mobile phones
2013* Number of Subscriber: 898 million FY16E Number of subscriber:1.2 billion Robust demand • India is the world’s second-largest telecommunications market, with 898.02 million subscribers as of March 2013 • With 70 per cent of population staying in rural areas, the rural market will be a key growth driver in coming years Attractive opportunities • Telecom penetration in the nation’s rural markets is expected to increase to 70 per cent by 2017 from the 41.0 per cent as of March 2013 • India is expected to feature among the top 10 broadband markets by 2013 High ratings • The country has a strong telecommunication infrastructure • In telecommunication ratings, India ranks ahead of peers in the West and Asia Policy support • The government has been proactive in its efforts to transform India into a global telecommunication hub; prudent regulatory support has also helped • National Telecom Policy 2012 proposes unified licensing, full MNP and free roaming Source: BMI (Business Monitor international) Report, Aranca Research Notes: * - figure for 2013 is up to March 2013; MNP - Mobile Number Portability; E - Estimates (2016E - Estimates for 2016)
0 5 10 15 20 25 30 FY06 FY07 FY08 FY09 FY10 FY11 FY12 • The number of internet subscribers increased at a CAGR of Internet subscriptions (in million) 19.7 per cent to 25.3 million in 2012 from 8.6 million in 2006 • By 2016, internet subscriptions are expected to rise to 215.0 million, with a penetration rate of 16.2 per cent Source: Telecom Regulatory Authority of India, Business Monitor International, Aranca Research Note: CAGR - Compound Annual Growth Rate
2.3 3.9 6.3 8.8 11.9 13.8 15.1 0 2 4 6 8 10 12 14 16 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Broadband subscriptions (in million) Source: Telecom Regulatory Authority of India, Aranca Research Note: CAGR - Compound Annual Growth Rate BSNL, 66 Airtel, 9.3 MTNL, 7.2 Others, 17.5 Market break-up by broadband subscriptions (FY13) Source: Telecom Regulatory Authority of India, Aranca Research Notes: BSNL - Bharat Sanchar Nigam Ltd; MTNL - Mahanagar Telephone Nigam Ltd
21.7 17.6 14.2 14 11.7 7.7 6.9 3.71.41.1 Wireless market share in terms of Total Subscribers Bharti Airtel Vodafone Reliance Idea BSNL Tata Aircel Unitech Sistema Others • Bharti Airtel is the market leader, with a 21.7 per cent share of total subscription; Vodafone follows with a 17.6 per cent share market share • The top five players – Bharti Airtel, Vodafone, Reliance, Idea, and BSNL – account for over 79 per cent of the total subscribers Source: Telecom Regulatory Authority of India, Aranca Research Note: BSNL - Bharat Sanchar Nigam Limited
14.6 22.8 33.7 49.6 68 76 70.9 0 20 40 60 80 FY07 FY08 FY09 FY10 FY11 FY12 FY13 TeleDensity • GSM services continue to dominate the wireless market with an 91.5 per cent share (March 2013); CDMA accounts for the remaining 8.5 per cent • The mobile segment’s teledensity surged 4.8x from 14.6 percent in FY07 to 70.9 per cent in FY13 Source: Telecom Regulatory Authority of India, Aranca Research Notes: Teledensity - The number of telephone lines for every 100 people in a country, GSM - Global System for Mobile Communications, CDMA - Code Division Multiple Access
 Total fixed line subscription stood at 30.2 million, while teledensity reached 2.5 per cent due to wide usability of wireless segment in FY13  BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent market share  BSNL, MTNL, and Bharti together account for 90.0 per cent of the total fixed-line market Source: Telecom Regulatory Authority of India, Aranca Research
 Highlights of the Minute factory Model • Improving affordability to gain positive elasticity • Focus on producing the lowest cost minute whilst maintaining / growing margins • Drive affordability  More users  More usage • Increased scale of minutes  Driving operating leverage
Depth Interview Analysis Results •Incentives (COCA) •Rapport With Salesman •Product Features •Knowledge About Products Sales force motivation Key take away Sales Force Training Activity Duration Conducted By Induction Training Module 1 month ASM+ Trainer Field Training 2 weeks TSM Re Fresher Training Module 2 weeks Trainer Product Quizzes Trainer Sales Force Recruitment & Incentives Salesman Hired by Distributor Company pays incentive on attainment of Targets 17% 32% Turn Over Rate 18% 25% Retailer Incentive Plans Benefits given in Cash or Kind Few Companies Use Gimmicks to Increase Retailers Self Esteem Serves as the Biggest Motivator to Push for Product Zonal Target Distributor-wise Target Beat-wise Target (Set by Zonal Business Manager) (Set by Area Sales Manager) (Set by Territory Sales Manager) Concentrate on performance related incentives to build higher level of motivation Turnover rate on higher side as they lack a sense of ownership because of the hiring pattern Good understanding of telecom fundamentals and networking basics is essential part of training Target Setting Airtel Navranta Vodafone Champ Pre Paid Channel Analysis Non reimbursements of travel expenditure for salesman acts as a deterrent
*Deloitte Report: Tmt India Predictions 2014 MIM’s will carry more than twice the volume (50 billion versus 21 billion per day) of messages sent via SMS’s The demand for ruggedized device platforms based on tablets & smartphones is expected to rise rapidly in next few years 2014 is likely to mark a new era in growth of mobile video in India. India will see several OTT, DTH and telecom operators themselves trying to leverage this opportunity
http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf Trends in Telecom- Spreading Education Market size of Indian education sector is expected to increase to 6024.1 billion by FY15 74.04 83.4 65 70 75 80 85 90 India World Literacy Rate 2011(%)Telecom enabled access to education • Access to education in the remote areas via interactive learning – audio and video • Improve subject coverage as well as delivery • Help students in accessing the content directly • Help teachers in developing their skills and knowledge The Emerging promise of m-education • Educational e-Books and e-Courses • Game-or Simulation-based learning tools • “English Seekho” (Learn English) one of the service offered by Tata DoCoMo • Students can access that anytime, anywhere and allowing them to learn at an independent pace • Customisation of instructions and adjustment of difficulty levels by tracking responses to several different questions
Trends in Telecom- Health Care Development in telecom and other related technologies are contributing to improved quality outcomes Tele-medicine and Tele-healthcare • Healthcare professionals are now sharing information, holding consultations using mobile broadband • Videoconferencing equipment is helping in to bring a physician and medical facilities as close to a patient as possible ways in which these technologies work •Store & forward mode - information stored on the digital camera is forwarded. Ex – pictures, MRI, X-Rays, CT Scans •Two way interactive television – videoconferencing M-health • M-health services make use of mobile devices to deliver healthcare solutions such as health alerts, updates and patient monitoring systems •Home monitoring •Connected medical environments •Clinical remote monitoring •Assisted living and clinical trials http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
 Advantage of reach and cost vis-à-vis other banking delivery channels  Banks partner with mobile service providers and other entities  M-Banking & M-Payments  Inter–account fund transfer  Account inquiry  Stock trading  Bill payment  Ticketing Country No. of Bank Branches (per 1 lakh) No. of ATM’s (per 1 lakh) India 10.6 8.9 China 23.81 49.56 Brazil 46.15 119.63 http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
 Several players betting on convergence1  Indigenous manufacturing: less imports, more job creation , security2  Inclusion of greener energy services in telecom3  Adoption of telecom services embedded in applications. Ex: Kindle  Launch of Reliance Jio will be a game-changer in Indian telecom: Moody‘s4 1-Deloitte Report: Tmt India Predictions 2014 2-Telecom Sector Roadmap for Innovation 2010-2020 3-http://timesofindia.indiatimes.com/tech/it-services/Green-Telecom-DoT-accepts-TRAIs-recommendations/articleshow/9386473.cms 4- http://www.domain-b.com/companies/companies_r/Reliance_Industries/20140623_mukesh_ambani.html Content owners Content aggregators Mobile video platform developers App stores Payment gateways Telecom operators OEM’s OTT
 Strengthen R&D efforts, provide an impetus to build world-class manufacturing capabilities  Achieve efficiency and transparency in spectrum management  Provide reliable media to all exchanges by 2020  Encourage development of telecom facilities in remote, hilly and tribal areas of the country  Sector related skill development  Broadband penetration http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf http://blog.euromonitor.com/2013/08/special-report-the-telecom-consumer-in-2020.html China and India will be the world’s online superpowers, with the two countries making up over 1.0 billion Internet users by 2020, or around a third of the world’s total users. Opportunities for online businesses will be expansive, especially in Internet retailing and m-commerce services targeted at the countries’ huge rural populations
• Increasingly using social media sites Facebook and Twitter, apart from professional networks such as LinkedIn • Hiring through social media is expected to grow by more than 50% this year from 2013 • Telecom sector's hiring increased 36% in August from a year earlier, according to the Naukri Job Speak Index • Hiring in the industry is expected to remain fairly healthy over the next few quarters; 4G technology and Reliance Jio Infocomm's entry will lead to surge in recruitments http://articles.economictimes.indiatimes.com/2013-10-02/news/42617658_1_telecom-sector-speed-new-leader http://economictimes.indiatimes.com/industry/telecom/telecom-firms-relying-on-social-media-to-hire-talent/articleshow/43571741.cms 3 key skill sets for employees Speed Technical Expertise Ownership & Accountability HIRING
• The surge in the subscriber base has necessitated a network expansion covering a wider area, thereby creating a need for significant investment in telecom infrastructure • To curb costs and focus on core operations, telecom companies have been segregating their tower assets into separate companies • Creating separate tower companies has helped telecom companies lower operating cost and improve capital structure, and also provided an additional revenue stream Rising Competition Higher operating cost and debt burden Focus on tower sharing to reduce cost Segregation of towers into separate companies Emergence of Tower Industry
0 5 10 15 20 25 30 35 Others GTL Infra Bharti Airtel Viom Networks Bharat Sanchar Nigam Reliance InfraTel Indus Tower Market share of tower companies in 2010 (based on towers owned) ITTC 28% Telcos owned 72% Ownership of towers (2010) The growing need for towers and rise in tower sharing have led to emergence of independent telecom tower companies (ITTCs) along with the Telecos-owned Tower companies Source: Aranca Research
Aircel plans to set up 200 more XPRESS stores in the country, targetting model XPRESS stores to 500 by the middle of 2015 Reliance Jio Infocomm has signed deals with Ascend Telecom Infrastructure and Tower Vision to share their towers to roll out its much awaited high speed data and voice services sooner and at a lower cost across India Vodafone India has extended its Project Samridhi to Karnal in rural Haryana, in a bid to boost sales and provide employment opportunity to women in the region Reliance Communications (RCom) has entered into inter-circle roaming partnerships with Aircel and Tata Teleservices Ltd to offer 3G services on a pan-India basis Tata Communications has entered into strategic partnerships with NEXTDC in Australia, Interxion in Germany and Austria, and Pacific Link Telecom in Malaysia Vodafone Business Services (VBS) launched managed video conferencing service for enterprises to offer an experience of world class virtual face-to-face-like interaction with various participants anytime, anywhere. Source: Aranca Research
 Best opportunities for Indian telcos to pursue to capitalize on explosion in the mobile Internet user base India will leapfrog into online and digital services over the next three to five years— opening up an extraordinary opportunity for telcos to become the primary gateway to the digital life Ecare and Estore Media Content and Services Mobile app for SME’s M -payments Four Areas that hold vast potential for Telcos Source : http://www.atkearney.com/communications-media-technology/ideas-insights/featured-article/-/asset_publisher/4rTTGHNzeaaK/content/creating-the-next- multibillion-dollar-online-opportunities-in-telecoms/10192
 In developed markets(South Korea and the Netherlands), "over-the-top“ (OTT) mobile messaging applications now constitute a significant threat to telecommunications carriers' SMS-messaging revenues Reasons for OTT Tipping Technology readiness A cost incentive to adopt OTT The strength of the OTT alternative The social propensity to adopt OTT 3G and better network that enables accessibility Smartphone penetration at high levels Opportunity to arbitrage between data and SMS costs High cost of SMS incentivizes to switch to inexpensive OTT Relative Mix of Smartphones in age 18-24 years Individual person social group is biggest influencer Significant market penetration by given OTT app Concentration of single Os platform with integrated IM OVER THE TOP Tipping
 Fixed and mobile telecommunications operators are pragmatically melding different technologies in order to deliver the performance customers want at costs that make sense. Source : Mckinskey Report on Choosing Network Technology by Duarte Bacelar Begonha and Sergio Osle Three factors that make choosing right suite of network technologies 1. Changes in demand 2. New Technologies 3. Regulatory moves Several predictions regarding tomorrow’s telecom environment can be made The networks of the future will integrate fixed and mobile services Network quality, speed, and enabled services will, from the customer's perspective, become key differentiating factors These new technologies and regulatory opportunities open broad options for operators
Emergence of Mobile Videos Mobile video market has developed because of: (i) Increased Smartphone penetration (ii) Improved high speed mobile networks (iii)Increasing demand for mobile video, and (iv) Influx of new mobile video service providers But it is in nascent stage, India will see several OTT, DTH and telecom operators themselves trying to leverage this opportunity To be successful, focus of the players would remain on: • Targeted Content: Customer segments / content preferences etc. • Historic & Internal Analytics: Behavior analytics / trend analytics etc. • Innovative Service Models: Live streaming / on-demand streaming / limited downloads etc. • Innovative Business Models: Content owner’s share / operator’s share / customer wallet / sponsorship etc. • Quality of Service: Connectivity / better quality at lower speeds etc. Source : TMT predictions by Deloitte ,2014
 Increase in the rural market penetration remains the mantra to improve market share  Introduction of new and efficient technologies such as M2M and cloud computing  Make available fresh spectrum that will meet the demands of the growing data usage  Indian mobile operators and equipment vendors need to develop energy-efficient networks by deploying renewable energy sources  Use of business analytics and big data to address challenges faced by Telecom companies  Reducing vulnerability to security attacks
 In 1995,Incorporated as Birla Communications Limited, Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra  In 1996, Changed name to Birla AT&T Communications Limited  In 1997,Commenced operations in the Gujarat and Maharashtra Circles  In 2000, Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle  In 2001, Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle  In 2002, Changed name to Idea Cellular Limited and launched "Idea" brand name and Commenced commercial operations in Delhi Circle  In 2004, Acquired Escotel Mobile Communications Limited, Reached the four million subscriber mark  In 2006, TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group. Reached the 10 million subscriber mark  In 2007Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain. Same year reached 20 million subscriber  In 2013, became third largest service provider by subscriber base Source :http://www.ideacellular.com/aboutus/history
 A pan India pure wireless play 2G- GSM service provider  Third largest operator in India, by Mobility Revenues and VLR subscribers  Holds 3G Spectrum (2100 & 900 MHz) in 12 service areas, which covers ~80% of Idea revenues and 57% of Industry revenues  Provides 3G services in 21 service areas, including Intra-Circle Roaming (ICR) arrangement for 10 service areas  Voice Minutes Carried ~1.82 billion per day during Q1FY15  Owns 9,495 towers, with a tenancy of 1.57  Holds 16% stake in Indus Towers through its subsidiary ABTL
22% 18% 14% 13% 7% 7%0.5% 0.2% 1% 4% 0.3% 13% 1% Bharti Vodafone IDEA Reliance Tata Aircel Loop Mobile Quadrant Sistema Unitech Videocon BSNL MTNL No. of Total Subscribers 135.79 millions No. of Rural Subscribers 74.72 millions Maximum Net Additions Dec’13 to Mar’14 7.10 million Highest Rate of Growth 5.52%
 Provides passive infrastructure services in 15 service areas  Leading independent tower company in the world with around 113,500 towers and tenancy ratio of 2.09 (as of June 30, 2014)  Combined revenue market share of three shareholders is 71.3%  Idea benefits by reduced capex, speed to market, and embedded value of shareholding
STRENGTH Reputation of Brand Technology innovation used in Idea Advertising and promotion in Idea High quality network structure WEAKNESS No Broadband service Low coverage in India Market leader only in North India Direct to Home Service is not available OPPORTUNITIES The Indian telecommunication industry is growing at faster rate Low penetration, more particularly in rural India New services, like internet, 3G, 4G Intense competition Customers loyalty is low Increasing cost of promotion Increased network cost SWOT THREATS
 Mounting losses have forced small/new telecom providers to exit or selectively close operations  Cost per minute for Idea has improved with scale, while ARPM uptick has helped drive margin improvement
Sales Model of Service Outlets COCO COFO FOFO Company Owned , Company Operated Company Owned , Franchise Operated Franchise Owned , Franchise Operated Outlets are large in size High level of control Outlets are large in size Outlets are small in size Moderate level of control Low level of control Types of Service outlets of IDEA FOFO Sales Model of My Idea (MI) Store Out-bound salesIn-bound sales Front Desk executives (FDE) Number depends upon category of outlet Generally 1-2 FDEs Number mandated by Idea Number of FOS per MI : 5 Feet on street (FOS) Direct control of the company , On Ideas pay roll Direct control of Franchise Partner, On FPs pay roll
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 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.
At different points of time, idea has launched different campaigns. Most the campaigns, advertisement focus on the social issues and try to solve the problem by using mobile phones. Some of the famous campaigns are as listed below  Focused on making consumer awareness, with its campaign on internet it is making consumer more awareness about the benefit of Internet  Differentiated from other competitors by providing the benefits like detail billing, etc to every user  Environmental friendly campaign- Use mobile save paper  Health related campaign- Walk while you talk  Education for all- use of mobile to teach students remotely  Social- Use of mobile to vote and take social & community decisions
Telecom group 2 section a

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Telecom group 2 section a

  • 1.
  • 2.
     EXECUTIVE SUMMARY INTRODUCTION  ENVIRONMENT SCAN  PRESENT SCENARIO  FUTURE PROSPECTS  OPPORTUNITIES & CHALLENGES  EMPLOYMENT PROSPECTS  INSIGHTS
  • 3.
     The telecomindustry has been studied in detail, with focus on world data  The various factors which are currently influencing the telecom industry are studied using PEST analysis  The telecom industry, with respect to India , has been studied for both wired & wireless segments  Future prospects with focus on implications of Telecom industry on others, have been looked into  Insights into the potential focus areas of Telecom industry, have been looked into  Future research areas have been identified
  • 5.
    Industry Insights 60716 Crore Revenue 933.01Million Subscribers 97% Wireless Subscribers 93% Prepaid Subscribers Airtel 22% Vodafone 18% IDEA 15% Reliance 12%Tata 7% Aircel 7% Unitech 4% BSNL 12% Others 3% Market Share of Major Players Channel Structure • 2 tiered distribution model • For mass market reach • Focused on prepaid • Exclusive • Sales and service • Primary focus on post-paid, terminals & data • Selling directly to the end customer • Focused on post-paid • Large format outlets/chai n stores • Future growth driver for Data & 3G • Enterprise VGE National A/C SME • Includes fixed line and data Indirect Channel Exclusive Retail Direct Channels Modern Trade B2B Business Monthly ARPU: Rs 113 Idea Recorded highest Net Adds Wireless Market Share Rural: 41% Urban:59% 22 Circles Highest Wirless Subscribers: UP East Key Pointers Sector Overview
  • 6.
    Telecom Fixed line (wireline) Mobile Wireless Internet services Comprises establishmentsoperating and maintaining switching and transmission facilities to provide direct communications via airwaves Consists of companies that operate and maintain switching and transmission facilities to provide direct communications through landlines, microwave or a combination of landlines and satellite link-ups Includes internet service providers (ISPs) that offer broadband internet connections through consumer and corporate channels Source: Aranca Research
  • 7.
    Source: Telecom RegulatoryAuthority of India, Business Monitor
  • 8.
    About 6.9 billionmobile connections globally, which are growing at an annual rate of 7.36% Around 2 billion internet users globally which is expected to reach approx. 5 billion by 2020 Mobile 4G services has 2.85% of the world market penetration at the end of 2013 while 3G had that of 28.45% China has largest mobile subscriber base of approx.1 billion people India ranks second with close to 900 million mobile subscribers Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020 Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020 ARPU is stagnating to around $24.6 while Minutes of Use (MoU) show an upward trend around 296 per connection Telecom industry is in the midst of a transformational shift, driven by a huge surge in data traffic on telecom networks More emphasis is laid globally to deal with challenges like spectrum exhaustion, greater speed of mobile data connectivity Source: Aranca Research
  • 9.
    39.1 40.8 37.3 33.3 33.2 32.1 0 5 10 15 20 25 30 35 40 45 FY13FY12 FY11 FY10 FY09 FY08 Wireline/Wireless Revenues ( $ Bn) Wireless and wire line revenues in India • Wireless and wireline revenue increased at a CAGR of 10.4 per cent to US$ 39.1 billion over FY06-13 Composition of telephone subscribers in India • The wireless segment (96.6 per cent of total telephone subscriptions) dominates the market, while the wire line segment accounts for the rest 58% 39% 2%1% Urban Wireless Rural Wireless Urban Wireline Source: Telecom Regulatory Authority of India, Business Monitor
  • 10.
    Changing Value Chain Source:http://www.atkearney.com/operations/ideas-insights/article/- /asset_publisher/LCcgOeS4t85g/content/rewriting-india-s-shared-services-playbook/10192 Network Development Network Management Platform Development and operations Marketing and Product Development Sales Service Delivery Billing and Collection Network Development Network Management Platform Development and operations Marketing and Product Development Sales Service Delivery Billing and Collection Traditional Telecom Value chain Emerging Telecom Business Model in India
  • 12.
    Political -Government Stability -Taxation Laws -Policyreforms -International Relations -Interconnection Regulation for Broadcasting Sector Economic -GDP growth trends -Inflation Rate -Per Capita Income -Interest rates -Industrial production -Lifestyle Changes -Consumer Activism -Population Mix and Growth Rate -Labor Cost -Regional Shift in Population -R&D Spending -Technology Transfer -Internet Penetration for Business Transactions -New and customized offerings -Technological shifts affects costs, quality and leads to innovation PESTSocial Technological
  • 13.
    Telecom Regulatory Authorityof India(TRAI) Independent regulator in India Established on 20th February 1997 Regulate telecom services, fixation/revision of tariffs services Fair and transparent policy environment, promotes level playing field Tariff, Interconnection and services Department of Telecommunication(DOT) Part of Ministry of Communication and Information Technology Formulate policies for accelerated growth Responsible for grant of licenses Enforces wireless regulatory measures by monitoring wireless transmission of all users Telecom Disputes Settlement and Appellate Tribunal (TDSAT)  Dispute involving parties like licensor, licensee, service provider and consumers are resolved by TDSAT  Any direction, order or decision of TRAI can be challenged by appealing in TDSAT Cellular Operators Associations of India(COAI)  Official voice for Indian telecom industry  Interacts & exchange ideas directly with Ministries, Policy makers, Regulators & Service providers Source: TRAI Website
  • 14.
    These Industries are dependenton network but also growth of network is dependent on these sectors E commerce: As e-commerce increases more connectivity and speed will be required Banking: As law becomes more lenient, provides opportunity for extra revenue Other Industries Telecommunication towers plays a major role Availability and quality of towers effect the industry Pricing of services have direct impact on cost Sharing of towers allows operator to have less assets Major players are Bharti Infratel ltd, Reliance Infratel Ltd. , Nokia Siemens network, Indus towers Infrastructure Mobile phones and telecommunications are complementary Increase in use of services as handsets become cheaper Technology advancement, requirement of high speed Mobile phones
  • 16.
    2013* Number of Subscriber:898 million FY16E Number of subscriber:1.2 billion Robust demand • India is the world’s second-largest telecommunications market, with 898.02 million subscribers as of March 2013 • With 70 per cent of population staying in rural areas, the rural market will be a key growth driver in coming years Attractive opportunities • Telecom penetration in the nation’s rural markets is expected to increase to 70 per cent by 2017 from the 41.0 per cent as of March 2013 • India is expected to feature among the top 10 broadband markets by 2013 High ratings • The country has a strong telecommunication infrastructure • In telecommunication ratings, India ranks ahead of peers in the West and Asia Policy support • The government has been proactive in its efforts to transform India into a global telecommunication hub; prudent regulatory support has also helped • National Telecom Policy 2012 proposes unified licensing, full MNP and free roaming Source: BMI (Business Monitor international) Report, Aranca Research Notes: * - figure for 2013 is up to March 2013; MNP - Mobile Number Portability; E - Estimates (2016E - Estimates for 2016)
  • 17.
    0 5 10 15 20 25 30 FY06 FY07 FY08FY09 FY10 FY11 FY12 • The number of internet subscribers increased at a CAGR of Internet subscriptions (in million) 19.7 per cent to 25.3 million in 2012 from 8.6 million in 2006 • By 2016, internet subscriptions are expected to rise to 215.0 million, with a penetration rate of 16.2 per cent Source: Telecom Regulatory Authority of India, Business Monitor International, Aranca Research Note: CAGR - Compound Annual Growth Rate
  • 18.
    2.3 3.9 6.3 8.8 11.9 13.8 15.1 0 2 4 6 8 10 12 14 16 FY07 FY08 FY09FY10 FY11 FY12 FY13 Broadband subscriptions (in million) Source: Telecom Regulatory Authority of India, Aranca Research Note: CAGR - Compound Annual Growth Rate BSNL, 66 Airtel, 9.3 MTNL, 7.2 Others, 17.5 Market break-up by broadband subscriptions (FY13) Source: Telecom Regulatory Authority of India, Aranca Research Notes: BSNL - Bharat Sanchar Nigam Ltd; MTNL - Mahanagar Telephone Nigam Ltd
  • 19.
    21.7 17.6 14.2 14 11.7 7.7 6.9 3.71.41.1 Wireless market sharein terms of Total Subscribers Bharti Airtel Vodafone Reliance Idea BSNL Tata Aircel Unitech Sistema Others • Bharti Airtel is the market leader, with a 21.7 per cent share of total subscription; Vodafone follows with a 17.6 per cent share market share • The top five players – Bharti Airtel, Vodafone, Reliance, Idea, and BSNL – account for over 79 per cent of the total subscribers Source: Telecom Regulatory Authority of India, Aranca Research Note: BSNL - Bharat Sanchar Nigam Limited
  • 20.
    14.6 22.8 33.7 49.6 68 76 70.9 0 20 4060 80 FY07 FY08 FY09 FY10 FY11 FY12 FY13 TeleDensity • GSM services continue to dominate the wireless market with an 91.5 per cent share (March 2013); CDMA accounts for the remaining 8.5 per cent • The mobile segment’s teledensity surged 4.8x from 14.6 percent in FY07 to 70.9 per cent in FY13 Source: Telecom Regulatory Authority of India, Aranca Research Notes: Teledensity - The number of telephone lines for every 100 people in a country, GSM - Global System for Mobile Communications, CDMA - Code Division Multiple Access
  • 21.
     Total fixedline subscription stood at 30.2 million, while teledensity reached 2.5 per cent due to wide usability of wireless segment in FY13  BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent market share  BSNL, MTNL, and Bharti together account for 90.0 per cent of the total fixed-line market Source: Telecom Regulatory Authority of India, Aranca Research
  • 25.
     Highlights ofthe Minute factory Model • Improving affordability to gain positive elasticity • Focus on producing the lowest cost minute whilst maintaining / growing margins • Drive affordability  More users  More usage • Increased scale of minutes  Driving operating leverage
  • 26.
    Depth Interview Analysis Results •Incentives (COCA) •RapportWith Salesman •Product Features •Knowledge About Products Sales force motivation Key take away Sales Force Training Activity Duration Conducted By Induction Training Module 1 month ASM+ Trainer Field Training 2 weeks TSM Re Fresher Training Module 2 weeks Trainer Product Quizzes Trainer Sales Force Recruitment & Incentives Salesman Hired by Distributor Company pays incentive on attainment of Targets 17% 32% Turn Over Rate 18% 25% Retailer Incentive Plans Benefits given in Cash or Kind Few Companies Use Gimmicks to Increase Retailers Self Esteem Serves as the Biggest Motivator to Push for Product Zonal Target Distributor-wise Target Beat-wise Target (Set by Zonal Business Manager) (Set by Area Sales Manager) (Set by Territory Sales Manager) Concentrate on performance related incentives to build higher level of motivation Turnover rate on higher side as they lack a sense of ownership because of the hiring pattern Good understanding of telecom fundamentals and networking basics is essential part of training Target Setting Airtel Navranta Vodafone Champ Pre Paid Channel Analysis Non reimbursements of travel expenditure for salesman acts as a deterrent
  • 28.
    *Deloitte Report: TmtIndia Predictions 2014 MIM’s will carry more than twice the volume (50 billion versus 21 billion per day) of messages sent via SMS’s The demand for ruggedized device platforms based on tablets & smartphones is expected to rise rapidly in next few years 2014 is likely to mark a new era in growth of mobile video in India. India will see several OTT, DTH and telecom operators themselves trying to leverage this opportunity
  • 29.
    http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf Trends in Telecom-Spreading Education Market size of Indian education sector is expected to increase to 6024.1 billion by FY15 74.04 83.4 65 70 75 80 85 90 India World Literacy Rate 2011(%)Telecom enabled access to education • Access to education in the remote areas via interactive learning – audio and video • Improve subject coverage as well as delivery • Help students in accessing the content directly • Help teachers in developing their skills and knowledge The Emerging promise of m-education • Educational e-Books and e-Courses • Game-or Simulation-based learning tools • “English Seekho” (Learn English) one of the service offered by Tata DoCoMo • Students can access that anytime, anywhere and allowing them to learn at an independent pace • Customisation of instructions and adjustment of difficulty levels by tracking responses to several different questions
  • 30.
    Trends in Telecom-Health Care Development in telecom and other related technologies are contributing to improved quality outcomes Tele-medicine and Tele-healthcare • Healthcare professionals are now sharing information, holding consultations using mobile broadband • Videoconferencing equipment is helping in to bring a physician and medical facilities as close to a patient as possible ways in which these technologies work •Store & forward mode - information stored on the digital camera is forwarded. Ex – pictures, MRI, X-Rays, CT Scans •Two way interactive television – videoconferencing M-health • M-health services make use of mobile devices to deliver healthcare solutions such as health alerts, updates and patient monitoring systems •Home monitoring •Connected medical environments •Clinical remote monitoring •Assisted living and clinical trials http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
  • 31.
     Advantage ofreach and cost vis-à-vis other banking delivery channels  Banks partner with mobile service providers and other entities  M-Banking & M-Payments  Inter–account fund transfer  Account inquiry  Stock trading  Bill payment  Ticketing Country No. of Bank Branches (per 1 lakh) No. of ATM’s (per 1 lakh) India 10.6 8.9 China 23.81 49.56 Brazil 46.15 119.63 http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
  • 32.
     Several playersbetting on convergence1  Indigenous manufacturing: less imports, more job creation , security2  Inclusion of greener energy services in telecom3  Adoption of telecom services embedded in applications. Ex: Kindle  Launch of Reliance Jio will be a game-changer in Indian telecom: Moody‘s4 1-Deloitte Report: Tmt India Predictions 2014 2-Telecom Sector Roadmap for Innovation 2010-2020 3-http://timesofindia.indiatimes.com/tech/it-services/Green-Telecom-DoT-accepts-TRAIs-recommendations/articleshow/9386473.cms 4- http://www.domain-b.com/companies/companies_r/Reliance_Industries/20140623_mukesh_ambani.html Content owners Content aggregators Mobile video platform developers App stores Payment gateways Telecom operators OEM’s OTT
  • 34.
     Strengthen R&Defforts, provide an impetus to build world-class manufacturing capabilities  Achieve efficiency and transparency in spectrum management  Provide reliable media to all exchanges by 2020  Encourage development of telecom facilities in remote, hilly and tribal areas of the country  Sector related skill development  Broadband penetration http://www.deloitte.com/assets/Dcom- India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf http://blog.euromonitor.com/2013/08/special-report-the-telecom-consumer-in-2020.html China and India will be the world’s online superpowers, with the two countries making up over 1.0 billion Internet users by 2020, or around a third of the world’s total users. Opportunities for online businesses will be expansive, especially in Internet retailing and m-commerce services targeted at the countries’ huge rural populations
  • 36.
    • Increasingly usingsocial media sites Facebook and Twitter, apart from professional networks such as LinkedIn • Hiring through social media is expected to grow by more than 50% this year from 2013 • Telecom sector's hiring increased 36% in August from a year earlier, according to the Naukri Job Speak Index • Hiring in the industry is expected to remain fairly healthy over the next few quarters; 4G technology and Reliance Jio Infocomm's entry will lead to surge in recruitments http://articles.economictimes.indiatimes.com/2013-10-02/news/42617658_1_telecom-sector-speed-new-leader http://economictimes.indiatimes.com/industry/telecom/telecom-firms-relying-on-social-media-to-hire-talent/articleshow/43571741.cms 3 key skill sets for employees Speed Technical Expertise Ownership & Accountability HIRING
  • 37.
    • The surgein the subscriber base has necessitated a network expansion covering a wider area, thereby creating a need for significant investment in telecom infrastructure • To curb costs and focus on core operations, telecom companies have been segregating their tower assets into separate companies • Creating separate tower companies has helped telecom companies lower operating cost and improve capital structure, and also provided an additional revenue stream Rising Competition Higher operating cost and debt burden Focus on tower sharing to reduce cost Segregation of towers into separate companies Emergence of Tower Industry
  • 38.
    0 5 1015 20 25 30 35 Others GTL Infra Bharti Airtel Viom Networks Bharat Sanchar Nigam Reliance InfraTel Indus Tower Market share of tower companies in 2010 (based on towers owned) ITTC 28% Telcos owned 72% Ownership of towers (2010) The growing need for towers and rise in tower sharing have led to emergence of independent telecom tower companies (ITTCs) along with the Telecos-owned Tower companies Source: Aranca Research
  • 39.
    Aircel plans toset up 200 more XPRESS stores in the country, targetting model XPRESS stores to 500 by the middle of 2015 Reliance Jio Infocomm has signed deals with Ascend Telecom Infrastructure and Tower Vision to share their towers to roll out its much awaited high speed data and voice services sooner and at a lower cost across India Vodafone India has extended its Project Samridhi to Karnal in rural Haryana, in a bid to boost sales and provide employment opportunity to women in the region Reliance Communications (RCom) has entered into inter-circle roaming partnerships with Aircel and Tata Teleservices Ltd to offer 3G services on a pan-India basis Tata Communications has entered into strategic partnerships with NEXTDC in Australia, Interxion in Germany and Austria, and Pacific Link Telecom in Malaysia Vodafone Business Services (VBS) launched managed video conferencing service for enterprises to offer an experience of world class virtual face-to-face-like interaction with various participants anytime, anywhere. Source: Aranca Research
  • 41.
     Best opportunitiesfor Indian telcos to pursue to capitalize on explosion in the mobile Internet user base India will leapfrog into online and digital services over the next three to five years— opening up an extraordinary opportunity for telcos to become the primary gateway to the digital life Ecare and Estore Media Content and Services Mobile app for SME’s M -payments Four Areas that hold vast potential for Telcos Source : http://www.atkearney.com/communications-media-technology/ideas-insights/featured-article/-/asset_publisher/4rTTGHNzeaaK/content/creating-the-next- multibillion-dollar-online-opportunities-in-telecoms/10192
  • 42.
     In developedmarkets(South Korea and the Netherlands), "over-the-top“ (OTT) mobile messaging applications now constitute a significant threat to telecommunications carriers' SMS-messaging revenues Reasons for OTT Tipping Technology readiness A cost incentive to adopt OTT The strength of the OTT alternative The social propensity to adopt OTT 3G and better network that enables accessibility Smartphone penetration at high levels Opportunity to arbitrage between data and SMS costs High cost of SMS incentivizes to switch to inexpensive OTT Relative Mix of Smartphones in age 18-24 years Individual person social group is biggest influencer Significant market penetration by given OTT app Concentration of single Os platform with integrated IM OVER THE TOP Tipping
  • 43.
     Fixed andmobile telecommunications operators are pragmatically melding different technologies in order to deliver the performance customers want at costs that make sense. Source : Mckinskey Report on Choosing Network Technology by Duarte Bacelar Begonha and Sergio Osle Three factors that make choosing right suite of network technologies 1. Changes in demand 2. New Technologies 3. Regulatory moves Several predictions regarding tomorrow’s telecom environment can be made The networks of the future will integrate fixed and mobile services Network quality, speed, and enabled services will, from the customer's perspective, become key differentiating factors These new technologies and regulatory opportunities open broad options for operators
  • 44.
    Emergence of MobileVideos Mobile video market has developed because of: (i) Increased Smartphone penetration (ii) Improved high speed mobile networks (iii)Increasing demand for mobile video, and (iv) Influx of new mobile video service providers But it is in nascent stage, India will see several OTT, DTH and telecom operators themselves trying to leverage this opportunity To be successful, focus of the players would remain on: • Targeted Content: Customer segments / content preferences etc. • Historic & Internal Analytics: Behavior analytics / trend analytics etc. • Innovative Service Models: Live streaming / on-demand streaming / limited downloads etc. • Innovative Business Models: Content owner’s share / operator’s share / customer wallet / sponsorship etc. • Quality of Service: Connectivity / better quality at lower speeds etc. Source : TMT predictions by Deloitte ,2014
  • 45.
     Increase inthe rural market penetration remains the mantra to improve market share  Introduction of new and efficient technologies such as M2M and cloud computing  Make available fresh spectrum that will meet the demands of the growing data usage  Indian mobile operators and equipment vendors need to develop energy-efficient networks by deploying renewable energy sources  Use of business analytics and big data to address challenges faced by Telecom companies  Reducing vulnerability to security attacks
  • 46.
     In 1995,Incorporatedas Birla Communications Limited, Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra  In 1996, Changed name to Birla AT&T Communications Limited  In 1997,Commenced operations in the Gujarat and Maharashtra Circles  In 2000, Merged with Tata Cellular Limited, thereby acquiring original license for the Andhra Pradesh Circle  In 2001, Acquired RPG Cellular Limited and consequently the license for the Madhya Pradesh (including Chattisgarh) Circle  In 2002, Changed name to Idea Cellular Limited and launched "Idea" brand name and Commenced commercial operations in Delhi Circle  In 2004, Acquired Escotel Mobile Communications Limited, Reached the four million subscriber mark  In 2006, TATA Group transferring its entire shareholding in the Company to the Aditya Birla Group. Reached the 10 million subscriber mark  In 2007Won an award for the "CARE" service in the "Best Billing or Customer Care Solution" at the GSM Association Awards in Barcelona, Spain. Same year reached 20 million subscriber  In 2013, became third largest service provider by subscriber base Source :http://www.ideacellular.com/aboutus/history
  • 48.
     A panIndia pure wireless play 2G- GSM service provider  Third largest operator in India, by Mobility Revenues and VLR subscribers  Holds 3G Spectrum (2100 & 900 MHz) in 12 service areas, which covers ~80% of Idea revenues and 57% of Industry revenues  Provides 3G services in 21 service areas, including Intra-Circle Roaming (ICR) arrangement for 10 service areas  Voice Minutes Carried ~1.82 billion per day during Q1FY15  Owns 9,495 towers, with a tenancy of 1.57  Holds 16% stake in Indus Towers through its subsidiary ABTL
  • 49.
    22% 18% 14% 13% 7% 7%0.5% 0.2% 1% 4% 0.3% 13% 1% Bharti Vodafone IDEA Reliance Tata Aircel Loop Mobile Quadrant Sistema Unitech Videocon BSNL MTNL No. ofTotal Subscribers 135.79 millions No. of Rural Subscribers 74.72 millions Maximum Net Additions Dec’13 to Mar’14 7.10 million Highest Rate of Growth 5.52%
  • 50.
     Provides passiveinfrastructure services in 15 service areas  Leading independent tower company in the world with around 113,500 towers and tenancy ratio of 2.09 (as of June 30, 2014)  Combined revenue market share of three shareholders is 71.3%  Idea benefits by reduced capex, speed to market, and embedded value of shareholding
  • 52.
    STRENGTH Reputation of Brand Technologyinnovation used in Idea Advertising and promotion in Idea High quality network structure WEAKNESS No Broadband service Low coverage in India Market leader only in North India Direct to Home Service is not available OPPORTUNITIES The Indian telecommunication industry is growing at faster rate Low penetration, more particularly in rural India New services, like internet, 3G, 4G Intense competition Customers loyalty is low Increasing cost of promotion Increased network cost SWOT THREATS
  • 53.
     Mounting losseshave forced small/new telecom providers to exit or selectively close operations  Cost per minute for Idea has improved with scale, while ARPM uptick has helped drive margin improvement
  • 54.
    Sales Model ofService Outlets COCO COFO FOFO Company Owned , Company Operated Company Owned , Franchise Operated Franchise Owned , Franchise Operated Outlets are large in size High level of control Outlets are large in size Outlets are small in size Moderate level of control Low level of control Types of Service outlets of IDEA FOFO Sales Model of My Idea (MI) Store Out-bound salesIn-bound sales Front Desk executives (FDE) Number depends upon category of outlet Generally 1-2 FDEs Number mandated by Idea Number of FOS per MI : 5 Feet on street (FOS) Direct control of the company , On Ideas pay roll Direct control of Franchise Partner, On FPs pay roll
  • 55.
    Idea's 3G services startfrom chattisgarh, Gujarat and Hp & MP It Plans progressive pan-India rollout of 'Gold Standard' 3G services to ensure unmatched customer experience 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.
  • 57.
    At different pointsof time, idea has launched different campaigns. Most the campaigns, advertisement focus on the social issues and try to solve the problem by using mobile phones. Some of the famous campaigns are as listed below  Focused on making consumer awareness, with its campaign on internet it is making consumer more awareness about the benefit of Internet  Differentiated from other competitors by providing the benefits like detail billing, etc to every user  Environmental friendly campaign- Use mobile save paper  Health related campaign- Walk while you talk  Education for all- use of mobile to teach students remotely  Social- Use of mobile to vote and take social & community decisions

Editor's Notes

  • #24 Source - http://www.telco2research.com/articles/eb_7-strategic-priority-areas-telecoms_summary
  • #25 OTT – Over the top
  • #29 Text messaging’s superior revenue-generating ability is due to three main factors: ubiquity, technology advancement and business model. So MIM services may win the battle for volume in 2014, but SMS will be victorious in revenue terms. We expect SMS to continue to generate significantly greater revenues than MIM even as far out as 2018, by which point global SMS revenues are expected to have started falling. OTT- over the top, DTH- Direct to home
  • #30 According to the 2011 census, the total literacy rate in India is 74.04% compared to the world average of 83.4% (2008)
  • #31 Home monitoring - remote transmission of the medical data to healthcare providers Connected medical environments - M-health solutions can monitor vital signs during exercise and transmit data to servers or the Internet in real time Clinical remote monitoring: Monitor and track the status of patients with chronic conditions remotely. It improves patient care and outcomes through proactive monitoring. Assisted living and clinical trials: Senior citizens are monitored to ensure their health, safety and well-being. Patient tracking systems offer doctors, relatives and caregivers a constant update on patient's whereabouts and health.
  • #33 Ambani said at the company's annual general meeting last week that Reliance Jio's voice and data services would initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India. RIL's target is to expand this to over 600,000 villages. To be launched in 2015.
  • #35 Rapid progress in the affordability and accessibility of technology will reshape the telecom consumer by 2020. Greater broadband Internet penetration in emerging markets such as India will unlock huge demand for online retail and entertainment platforms, while households in developed economies will focus on merging their devices with their environment. A major obstacle to consumer telecom uptake will likely be increasing state interference on the web and globally rising income inequality.
  • #37 Speed: The speed of providing customers with newer services and benefits, the speed of not just addressing but actually creating new solutions in face of confounding customer issues, and the speed of keeping up with the industry's ever-changing technology. Technical expertise: Telecom personnel must possess keen technical expertise, sharp judgment, easy flexibility, and a flair for communicating well and partnering with others. What is also required is that telecom leaders and managers create employee empowerment as well as smart processes to facilitate this speed. Ownership & accountability: The touch points with customers in this industry are frequent and very tangible. In addition to delivering speed, employees must have a heightened sense of ownership and accountability towards customer needs. The effects and outcomes of speed can only manifest from such a mindset.