This presentation gives a brief insight on the Telecom Sector in India & possible suggestions for increasing the ARPU for network operators

1. TELECOM SECTOR

2. NEED IDENTIFICATION
Description / Problem Statement : ARPU Going down across all telecom operators in India in spite of
increasing tele density.
Types of Data for Analysis :  Quarterly ARPU reports, Tele density penetration
 The Indian Telecom Services Performance Indicators
Data Source :  TRAI – Telecom Regulatory Authority of India
 COAI – Cellular Operators Association of India
Analytical Methods / Techniques : OLAP , Graphs, Pivot Table, Power Pivots
Reporting Structure / Method : Pivot Reports, Dashboards, Google Charts ( Real time Updates)
Conclusion / Takeaways : It would help us identifying the tradeoff price between profit and
customer retention

3. CHALLENGES FACED
 The data was not arranged systematically and
it had to be arranged in a Tabular form
 There was no primary key and operator id was
manually created so as to uniquely identify
each operator for each circle
 In some cases, the operator’s license was
revoked and therefore there was incomplete
data. Such entries were deleted.
NOTE : Worksheet 1 – 7 have been hidden so that the sheets which follow can be easily accessed

4. VARIOUS DATA ENTRIES & THEIR RELATIONSHIPS
Operator ID is the common element for all the data
entries
 Table 1 : ARPU of all the Operators for Q1 2013
 Table 2 : ARPU of all the Operators for Q2 2013
 Table 3 : ARPU of all the Operators for Q3 2013
 Table 4 : ARPU of all the Operators for Q4 2013
 Table 5 : ARPU of all the Operators for Q1 2014
 Table 6 : ARPU of all the Operators for Q2 2014
 Table 7 : ARPU of all the Operators for Q3 2014
 Table 8 : Service area and circle distribution for all
operators

5. Circle Distribution
as per Number of
Operators
Deduction :
• Assam & Uttar Pradesh are densely
populated in terms of operator
presence
• Rajasthan & MP have limited
operator presence however since
Rajasthan is mostly desert, it
requires less coverage.
• On the contrary, there is a huge
demand in MP and therefore a
huge market to tap upon

6. Operator Presence
Nationwide
Deduction :
• Dishnet is only present in Eastern
India
• Whereas Aircel is present PAN
India except for the eastern part
• This can be due to limited license
granted to them by TRAI
• An Ideal solution would be to have
a merger or MVNO established so
that the overall ARPU can be
increased

7. Deduction :
• There has been a rise in the overall ARPU for the
year 2013
• Bharti Airtel and Idea Cellular saw a huge decline
in their ARPU for Q3
• Vodafone has not been able to make a noticeable
increase in their ARPU in Q3 and Q4
Deduction :
• There has been a rise in the overall ARPU for the
year 2014
• Other than Aircel, all the operators suffered
heavy losses in Q3 2014
• There was a sudden rise in the ARPU for Idea
Cellular for Q2 however it went low in Q3

8. Deduction :
• The highest ARPU till date has been for
Quarter 3, 2014
• There was a drop in the quarterly ARPU in
Quarter 1, 2014 after Quarter 4, 2013
Deduction :
• Gujrat has been giving the largest ARPU
• This is followed by Uttar Pradesh
• Since the Geographical area of Gujrat is less than that of Uttar
Pradesh, we can conclude that we have premium segment high
value customers in Gujrat for most of the operators and
therefore they should be targeted.

9. Deduction :
• Bharti Airtel has been maintaining its lead
in terms of customer ARPU
• However, Vodafone is catching up quickly
and therefore Bharti Airtel must deploy new
plans / offers to maintain its dominance
Sum of Overall ARPU Column Labels
Row Labels Gujrat Uttar Pradesh Assam Mumbai Delhi Jammu & Kashmir Kerala Chennai Andhra Pradesh Maharashtra Rajasthan Kolkata Karnataka Himachal Pradesh Bihar Gujarat Haryana Orissa West Bengal Punjab Madhya Pradesh Tamil Nadu Grand Total
Aircel 1035.271816 294.7042707 81.08056967 77.10406521 98.58207231 68.12108787 45.70354507 49.33282209 75.74963095 69.4630368 94.77791494 1989.890832
Aicel Limited 68.12108787 68.12108787
Aircel 1035.271816 81.08056967 45.70354507 75.74963095 1237.805562
Aircel Cellular 98.58207231 98.58207231
Aircel Limited 294.7042707 77.10406521 49.33282209 94.77791494 515.9190729
Aircel Limted 69.4630368 69.4630368
Bharti Airtel 236.7755041 321.4989206 194.2778715 209.5944529 178.1296743 161.9801508 192.2084948 171.8909719 126.8284566 140.4832868 126.9285737 199.1793272 140.3138164 126.0452556 87.46884467 102.8016667 122.5963477 94.07543313 170.4915776 98.53181924 3202.100446
Bharti Airtel Ltd 236.7755041 321.4989206 194.2778715 209.5944529 178.1296743 161.9801508 192.2084948 171.8909719 126.8284566 140.4832868 126.9285737 199.1793272 140.3138164 126.0452556 87.46884467 102.8016667 122.5963477 94.07543313 170.4915776 98.53181924 3202.100446
Dishnet 241.8459073 161.9890978 54.60046196 55.01711878 60.7634762 61.33561489 635.5516769
Dishnet Wireless 241.8459073 161.9890978 54.60046196 55.01711878 60.7634762 61.33561489 635.5516769
Idea Cellular 238.6754413 119.2421864 109.3056336 104.2057747 107.2778728 218.8607347 151.269187 156.8906507 98.01204654 23.73972995 100.1435924 91.65878435 132.1871568 121.1821337 53.48381577 59.29710137 119.7572355 34.4810484 2039.670126
IDEA Cellular 238.6754413 119.2421864 109.3056336 104.2057747 107.2778728 218.8607347 151.269187 156.8906507 98.01204654 23.73972995 100.1435924 91.65878435 132.1871568 121.1821337 53.48381577 59.29710137 119.7572355 34.4810484 2039.670126
Vodafone 240.363752 228.880442 271.3817076 226.2122971 97.80966837 160.6742337 232.3502865 119.8253311 147.4255982 123.6720562 174.3053643 126.9617365 72.7997582 92.66585693 145.6088893 119.6564863 81.88624644 97.93209788 138.3144112 64.83072324 151.0364388 3114.593382
Vodafone 240.363752 228.880442 271.3817076 226.2122971 97.80966837 160.6742337 232.3502865 119.8253311 147.4255982 123.6720562 174.3053643 126.9617365 72.7997582 92.66585693 145.6088893 119.6564863 81.88624644 97.93209788 138.3144112 64.83072324 151.0364388 3114.593382
Grand Total 1035.271816 1010.518968 911.4674563 656.0457823 617.1165898 545.2063133 541.5151192 523.1408536 511.1065779 476.8482507 411.5002116 400.7232989 395.6041005 367.8576289 365.3870157 365.2648907 343.6402868 318.7298861 312.6402473 308.8059889 283.1197779 280.2954022 10981.80646
Total
Bharti Airtel Ltd 3202.100446
Vodafone 3114.593382
IDEA Cellular 2039.670126
Aircel 1237.805562
Dishnet Wireless 635.5516769
Aircel Limited 515.9190729
Aircel Cellular 98.58207231
Aircel Limted 69.4630368
Aicel Limited 68.12108787
0
500
1000
1500
2000
2500
3000
3500
Operatorwise ARPU

10. CONCLUSION
• Identification of Geographical Areas : Areas like Gujrat should be tapped more as they have more
numbers of high segment customers. This would mean emphasis on VAS should be there in such areas
• Introduction of New Schemes / Offers : It is essential to offer new schemes / offers for customers
especially for operators such as Bharti Airtel to maintain their market dominance
• Need for Merger : In order to get maximum service area coverage, operators such as Aircel & Dishnet
should merge or have MVNO so that their ARPU can increase
If such issues can be tackled then the overall ARPU can increase and that would be in accordance with
the increasing Teledensity

11. R E F E R E N C ES
• https://www.1010data.com/solutions/by-industry/telecom/
• http://www.tcs.com/SiteCollectionDocuments/White%20Pa
pers/Telecom-Whitepaper-Predictive-Analytics-telecom-
companies-0513-1.pdf
• http://ucanalytics.com/blogs/customer-segmentation-
cluster-analysis-telecom-case-study/
• http://www.trai.gov.in/Content/Annual_Reports.aspx
• http://www.trai.gov.in/Content/PerformanceIndicatorsRepo
rts/1_1_PerformanceIndicatorsReports.aspx