Marketing Research

The Telecom Industry

Presented By
Gopal Nanda Roll No. 04
Jaimin Pandya Roll No. 08
Kaustabh Kulkarni Roll No. 12
Nishant Mhatre Roll No.19
Reena Nikam Roll No. 22
Varun Dhawan Roll No. 32
Vishal Sharma Roll No. 35
 INDEX
 Key Indicators
 Sector wise comparisons

 Industry overview/ Competitive Landscape

 Statistics
 Growth
 Circles
 Industry Snapshot
 Company review
Financial review
Marketing Review

 Recommendations for Reliance Communication

Indian Telecom Statistics as of August
2010
(Subscriber numbers is in million)

Total telephone subscriber base 706.37

Tele-density 59.63%
Wireline user base 35.77 
Tele-density 3.06%
Wireless user base  670.60 
Tele-density 59.63%
Internet subscribers 16.72
Broad band subscribers 9.47

FDI increase from 49% to 74%.

 Industry Snapshot
Telecom Financial Data (for the QE Jun-10)
 Gross Revenue during the quarter 41,392.75 Crore
 % change in GR over the previous quarter 2.80%
 Share of Public sector undertaking's in GR 19.19%

Revenue & Usage Parameters (for the QE Jun-10)

For QE
For QE For QE June Q-o-Q Y-o-Y
March 2009 March 2010 2010 change Change
ARPU GSM
185 131 122 -7% -33.9%
(in Rs)
ARPU CDMA
92 76 74 -2% -19.5%
(in Rs)
MOU GSM 454 410 401 -2.1% -11.6%
MOU CDMA 342 307 299 -2.6% -12.5%
SECTOR-WISE GDP CONTRIBUTION
OF THE SERVICE SECTOR
GDP at current prices

GDP Contribution
Industrial Sector:
27%
439391 Cr

16%
Agricultural Sector:
250892 Cr

57%

Services Sector: 909752

Cr
 GDP CONTRIBUTION OF TELECOM IN
THE SERVICE SECTOR GDP at current prices

Y-o-Y Growth
208001 for Q1 FY 10-11

423697

31.1%
24.4% 23.0%
278054

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Figures in Cr. Co
 The Telecom Industry
The current market scenario:

Today, telecommunication industry is no longer technology centric,

it revolves more around
customer relationship.

The ‘Buzz Words’ in the Telecom business are :

Customer satisfaction
Marketing intelligence
Innovative promotional schemes
Advanced technology.
 The Telecom
Telecom Industry
Industry
The current market scenario:

• Telecommunication service industry is facing significant challenges from

–Competition
–Technological revamps at very short frequencies
–Never-ending customer demands.

• In full-grown markets, the preferred path to growth is that of acquisition of

competitors or alliance with newer partners.

• In promising markets with explosive demand provide vast opportunities

for the players.

–Contribution of telecom sector in terms of revenue is 2.1 % of GDP as

compared to 2.8% in developed economies.
 Historical Overview
...........the mobile revolution
1985: First mobile telephone service started on non-commercial basis in Delhi.
1995: GSM entered India.
1995: Historic first cell phone-call was made by MobileNet-joint venture
between Telstra (Australia) & B.K. Modigroup. First call was made by Jyoti
Basu.
1996: Tata teleservices was the first to launch CDMA mobile services in India
with the Andhra Pradesh circle.
1997: TRAI was formed.
2004: BROADBAND POLICY
2005: Lowest call charges in the world ($ 0.03)
2006 : India One plan launched. Reliance Communications was the first to
launch on Jnauary1
2007 : Bharti Airtel become the first India operator to cross 50 million mark.
2007 : DOTopened Universal Service Access License; 575 applications came
as response.
2008 : DOT granted 120 new licenses.
2008 : 3G guidelines declared
 Classification Of The Indian
Telecommunication Sector
Fixed line telephony or Wireline Services
Mobile telephony or Wireless Services
Internet and Broadband Services
Broadcasting & Cable Services
Telecommunication Equipment Business.
Focusing on the Wire-less or
Mobile Service providers in the Indian
Telecom Sector.
 The Indian Telecom Industry
• Total number of Service Providers in the Wire-
less arena
TELECOM CIRCLES

 At present
there are 22
Telecom Circles or
Service Areas.

 They are broken

down into 4
groups: 'metro
circles' and then
'A', 'B', and 'C'
circles.
 WIRELSS TELECOM SERVICE
PROVIDERS
Fig in million
69 Subscriber base ( QE136.62
June 10)
42
22

Bharti
Reliance
Vodafone
73 BSNL
Tata
Idea
111
Aircel
Others
109
73
WIRELESS TELECOM SERVICE
PROVIDERS As of QE June 2010

Service Provider Market Share

Bharti 20.81%
Reliance 16.67%
Vodafone 16.24%
Tata 10.98%
Idea 10.26%
Aircel 6.21%
BSNL 14.83%
Others 4%
 Wire-Less Telecom Service Providers
Growth in terms of Subscriber base.

% Growth over Jan 2009 % Growth over March 201013%

10%

8% 8% 8%
7%
95%
91% 5%

33% 39% 43% 46%

34%
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 Company Specific Comparisons in the
Telecom Sector
• Bharti Airtel

• Reliance Communications

• Idea Cellular
 Company overview
Airtel was Established in 1985,
 Bharti Airtel formerly known as Bharti Tele-ventures
Limited (BTVL) is a JV between Singtel and Bharti
Telecom
Bharti Airtel is one of India's leading private sector
providers of telecommunications services
Bharti airtel is invested about $8 billion till the year
2010.
Globally, Bharti Airtel is the 3rd largest in-country mobile
operator by subscriber base, behind China Mobile and
China Unicom.
 Company overview
• The businesses at Bharti Airtel have been
structured into three individual strategic
business units (SBU’s)
Enterpris
Mobile Airtel
services telemedia e
services
End-to-end
●

Broadband,
●
data and
●
Mobile and fixed Telephone enterprise
wireless services services to the
services &
corporate
DTH
customers
What an IDEA SIR JI…..
Started in 1995 as a joint venture among the Tata Cellular
and Birla AT&T Communications

Acquisition of Escotel in 2004 gave Idea a pan-India

presence

First to offer flexible tariff plans for prepaid customers, to

launch background tones, group talk and a complete suite of
mobile email services

Only Indian GSM Operator to win the GSM

Association Award for "Best Billing and Customer Care
Solution" for 2006 and 2007
Business Strategy
Idea Cellular generally focuses on the student community by
 offering freebies along with its services.
In contrast, its major competitor Bharti Airtel focuses on
introducing new services to offer to its customers.
Idea Cellular has been consistently gaining market share on
account of its excellent execution skills and improving network
coverage in the operational circles.
Idea Cellular has also enhanced its brand imagery by a wider
positioning. Earlier, Idea was primarily viewed as a youth brand.
The current celebrity endorsements have targeted a much wider
base with special emphasis on the rural subscribers
 Company overview
Largest integrated communications company in the private sector in
India

Serving over 40 million individual and corporate customers on a global

basis

More than 14,000 Towns covered.

Strategic presence in all high growth segments - wireless, global and

broadband

One of the largest Next Generation Networks in the world  and only
one
in India

Investment of USD 5 billion

Market Cap of about USD 40.00 billion approx

 Business Strategies
Undertook financial restructuring of Reliance communications
To spend Rs 16,000 crore to expand and strengthen network
coverage
After expansion, Reliance Communications will have the single
largest wireless network in the world
Launched the lowest-cost classic brand handset at Rs 777
Subscriber base grew to over 28 million during last fiscal,
registering 60% growth.
Network superiority
Brand equity
Channel strength
Customer service excellence
Our people
 Comparative Performance
As of QE June 2010

Parameters Bharti R-Com Idea

Market Share 20.81% 16.67% 10.26%
Percentage
of rural 37.7% 20.9% 48.9%
subscribers
Market
share of
24.1% 15.4% 10.7%
Rural
subscribers
Area of All India
Operations All India (except Assam All India
& NE)
 Comparative Performance
As of QE June 2010

Parameters Bharti R-Com Idea

Financial 9319.59 Cr 3218.43 Cr 3740.42 Cr
Performance
% Change in
Financial
Performance 6.60% 0.83% 6.83%
Q-o-Q
NW Call Drop rate,
availability,
Quality Of Cust Care, Cust Care Call
congestation,
Service Connection Problems Billing, Cust
establishment
problems Care Problems
 Product
Pre
Pre
●
●
Paid
●
Airt Conn Pai
el ectio d
Pre- n
Con
Post
paid Paid nect
●
Airt Conn ion
el ectio
n Post
Post ●
Roa Pai
- ming
d
paid facilit
ies Con
●
Blac ●
Idea nect
kber Cellu
ry lar
ion
Wir PCO
●
Roa
eless
●
Wom min
en's
Han Card’, g
dhel 'Lifeti faci
d
me litie
Idea
Card’ s
Value Added Service (VAS)
●
Instant
●
Text ●
Audio
Balance and Confer
Enquiry Voice encing
●
24Hr GPRS Busine
●
●
recharge
Facility
: ss
●
Caller Interne Broad
line t On band
identific Mobile
ation Intern
, et 
●
Call
divert,
●
Idea ●
Enter
Call wait NetSett
prise
& Call er USB
Hold Broad
Voice
●
Multime band
Based
dia Intern
messagin Service
et 
g service s :Call ●
Toll
(MMS) ●
Confer
●
Hello ence, free
Tunes & ●
Fixed
●
Video
Ring Confer
Tones Cellula
●
Voice r encing
Mail Termin
●
Wirele
Service als ss
●
Easy Data
Post- (FCT),
paid bill GSM VPN
collectio PRI
●
Work
n Gatew from
●
GPRS Home
ay
Broadband & Services
Calling Cards
●
Cust
Price
●
Idea to ●
1 paisa
idea at per
omer 10 paisa second,
base per 50
minute paisa
d ●
To other per
prici networ second,
k 30
ng paisa
1.2 rs
fpr std
strat per ●
Want
minute
egies ●
More
to
. scheme target
s and the
●
Flexi less call rural 
ble rates in popula
tion wi
prici reasona
ble th low
ng prices pricing
mech offer to handse
attract ts as
anis youths low as
m ●
current Rs 500
price of with
●
Cont Idea  service
rolle Prepaid connec
Simcard
d by :
tion.
●
Black
TRA ●
Rs. 30.
berry
In this
I. price
with
●
60 they 3G and
gave Rs. 299
paisa 10 talk plan
per time with
unlimit
seco and life
time ed
nd validity. plans
 Place
●
Idea ●
Exten
●
Wide
and Cell sive
extens and
ular wide
ive
prese wid prese
nce in e nce
servic
the pres es in
remot
est
enc India
e in excep
areas
t
●
Airtel sma Assa
Custo ll m
mer
villa and
Care
North
Touch ges
East
Points ●
Idea ●
Relia
●
Distri
butor
GS nce
M Custo
s like
mer
●
E.g. serv Care
Paan
ices Touch
shops,
are Point
groce
s
ry lice ●

stores nse ●
241 R
, world
chemi
d
in 105
sts, pan cities
outlet Indi In
etc. India
a
 Promotion
Large scale print and video advertising.

Big celebrities like SRK and Sachin are roped in to endorse the
product because it .

In 2002 Airtel got its Signature tune from A.R. Rehman, this
signature tune is the most downloaded tune in India.

Provides innovations such as Bollywood movie premiers,

music services such as ring back tones & many more.

Airtel tries to put as innovative product: right now it got it self

as providing video call it always emphasize on  sound track of its
advertisement
promotional activities
 Promotion

Hire famous personalities

Punch line is 
“For the People, By the People” and “An Idea
Can Change Your Life”
Idea tries to promote its brand with CSR
activity
 Promotion
Promotes itself in mass rural market with
cheap rates and affordable communications
Punch line is 
Big celebrities like Hritik Roshan is roped in
to endorse the product
Recently started doing heavy promotions.
 Recommendations

• Reduce Debt by going for stake sale.

• Concentrate on GSM services.

• VAS is the future.

• Connecting Rural India.

 Recommendations
• 3G services.

• Infrastructure business of network towers.

• Wireless connectivity.

• Concentrate on improving customer service.

 Recommendations

• Tie up with corporate’s.

• Try Mergers or acquisitions outside the

country.

• Number portability

• Introduce new models in CDMA.

 Recommendations
Stress on promotion of products, Focusing more on
advertising media.

More stress should be given on sales promotion

activities.

Effective & efficient dealer representation

To Launch Scheme Like Bonus Talk Value, Talk Time

Supply of Glow Sign Boards & Shop Name Boards