PROJECT REPORT

ON

A STUDY ON EMERGING TRENDS OF MEDIA:

CASE STUDY OF MOBILE MARKETING IN REFERENCE
TO PINNACLE

SUBMITTED BY:

HIMANSHU KATHURIA
MAMPR (2008-2010)
Roll No.: A2000408040

UNDER THE GUIDANCE OF

MS. MANSI KAMRA

LECTURER, AMITY SCHOOL OF COMMUNICATION
AMITY UNIVERSITY, NOIDA

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2
Company Certificate (LETTER HEAD of the Company)

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 CERTIFICATE OF ORIGINALITY

This is to certify that Mr. Himanshu Kathuria, a student of Master Degree in

Advertising and Marketing Management, Amity School of Communication, Noida has

worked in the Media Edge CIA Group M TeamLG, Noida, under the able guidance

and supervision of Mr. Asad Jamal, Business Director.

The period for which he/ she was on training was for 8 weeks, starting from 1st June

2009 to 31st June 2009. This Summer Internship report has the requisite standard for

the partial fulfillment of the Master Degree in Advertising and Marketing Management.

To the best of our, knowledge no part of this report has been reproduced from any

other report and the contents are based on original research.

Signature Signature
(Faculty Guide) (Student)

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 ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr. Asad Jamal, Business
Director, Media Edge: CIA Group M TeamLG, for his/her able guidance,
continuous support and cooperation throughout my project, without which the present
work would not have been possible.

I would also like to thank the entire team of Media Edge: CIA Group M
TeamLG, Noida for the constant support and help in the successful completion of my
project.

Also, I am thankful to my faculty guide Ms. Mansi Kamra of my institute, for

her continued guidance and invaluable encouragement.

Signature
(Himanshu Kathuria)

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PREFACE

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 CONTENTS
INTRODUCTION
LITERATURE SURVEY
• INFORMATION TECHNOLOGY - POLICIES AND PROSPECTS
• ‘OLD AND ‘NEW’ MEDIA
• MOBILE MARKETING
• INDUSTRY/ORGANIZATION PERSPECTIVE
FINDINGS AND ANALYSIS
OBJECTIVE OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS
SECONDARY RESEARCH FINDINGS
SURVEY RESULTS
RECOMMENDATIONS
CONCLUSIONS
BIBLIOGRAPHY
ANNEXURE
• SURVEY QUESTIONNAIRE

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 INTRODUCTION
Mobile phones today have moved beyond their fundamental role of
communications and have graduated to become an extension of the persona of the user.
We are witnessing an era when users buy mobile phones not just to be in touch, but to
express themselves, their attitude, feelings & interests. Customers continuously want
more from their phone. They use their cellular phones to play games, read news
headlines, surf the Internet, keep a tab on astrology, and listen to music, make others
listen to their music, or check their bank balance.
Thus, there exists a vast world beyond voice that needs to be explored and
tapped and the entire cellular industry is heading towards it to provide innovative
options to their customers. Spoilt by choice, the mobile phone subscribers are
beginning to choose their operators on the basis of the value added services they offer.
The increased importance of VAS has also made content developers burn the midnight
oil to come up with better and newer concepts and services.

It is an undeniable fact the advent and mass penetration of the mobile phones
has changed the way people communicate all over the world. The device is a wonder of
technology that lets people communicate with others in various ways. Apart from
calling people also use the short messaging service, popularly called sms.

The text message service included in the cell phones let people communicate
with others in a discreet way. It enables the sender to covey his message without
making others aware about it. This is a great advantage and that is why the advertisers
and companies haves started using this means to promote their products. Mobile sms
marketing has become popular in countries like India. It has affected the advertising
industry to a great extent.

There are a number of web sites that offer free online sms services and by using
them a person can send sms to anywhere and anyone. However these service providers
have certain limitations. Most of the bulk sms providers do not allow the users to use
messages containing more than 160 characters. Part of the message also contains the
advertisements of the service provider.

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 The companies that want to inform the potential customers about their
upcoming products and services can resort to the services of the bulk sms resellers.
Apart from informing the potential clients about upcoming products and promotions,
the companies can also make use of the bulk messaging service to take feedback, send
seasonal greetings and send reminders. The Bulk sms can be delivered from a computer
using an Internet connection.

There are a number of bulk sms providers in India but a business owner needs
to select the one that offers him the maximum value added service. He needs to see if
the sms service provider allows him to embed extra characters and multimedia contents
in the message. If the provider allows usage of sender name then that would be an
added advantage.

The Mobile Value Added Services (Mobile VAS or MVAS) industry could be
worth nearly a billion dollars (Rs 4560 crores) by the end of 2007, from its current size
of Rs. 2850.

A break up of the total market size of Rs 2850 crores reveals that P2P (person to
person) SMS or Text Messaging, continues to dominate the industry with Rs. 1140
crores, followed by Ringtones, including Caller Ring Back Tones (CRBT) at Rs 1026
crores; P2A (Person to Application) and A2P (Application to Person) at Rs 428 crores;
Games and Data at Rs 171 crores and others (MMS etc) at Rs 86 crores.

Need for the study

The mobile subscriber base is growing at a scorching pace in India, India is now
the 5th country in the world to have crossed the 100 million mark in subscriber base
and has in the last two months become the fastest growing mobile market in the world.
As average revenue per user decrease from voice drops, and voice becomes
commoditized, Telecom companies are increasingly looking at data as an additional
revenue stream. The end users have also embraced VAS and it contributes between 5-
10% of the revenues of different Telecom Companies. Thus Mobile VAS has become
an important element in the growth of mobile telephony in India.

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 Yet it is also equally true that there is little clarity on business issues and growth
seems to be driven by more by inherent market momentum than a concentrated effort
on the part of the stakeholders; differences exist even on basic issues like definition for
Mobile VAS.

Organization Profile:
Mediaedge:cia (MEC) is the first global communications planning and implementation
agency. They get consumers actively engaged with their clients' brands, leading to
positive awareness, deeper relationships and stronger sales.
Their services include brand and consumer insight and ROI, communications planning,
media planning and buying, interaction (digital, direct, search), sport, entertainment and
cause partnerships, retail consultancy and Hispanic marketing. Their 4,500 highly
talented and motivated people work with local, regional and global clients from their
250 offices in 84 countries. They are a founding partner of GroupM, WPP's media
investment management group

Key facts

• The first global communications and planning implementation agency

• Worldwide billings $17.9bn

• Buy 1 in 3 ads worldwide (via GroupM)

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• No.1 globally in 'Competitiveness in Pitches" 2006 and 2007

• Invest $100m in research and development every year

• 250 offices in 84 countries

• 4,500 staff

• Adweek's and Advertising Age's Global Media Agency of the Year 2006 and 2007

• Founding partner of GroupM

• Part of WPP

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 LITERATURE SURVEY
According to Sethi, (2006) Telecommunication is one of the prime support
services needed for rapid growth and modernization of various sectors of the economy.
Although the sector has grown rapidly in recent years, its growth needs to be
accelerated further. It is equally important to accelerate structural changes in this sector
in line with trends in other countries to ensure that the telecommunication services are
not only made available on the scale needed to sustain rapid growth in the economy as
a whole but also that the quality and cost of these services come up to the requirements
of a modernizing economy.

According to Singh, (2004) Telecommunications is a prime support service

needed for rapid growth and modernisation. It is also one of the fastest growing sectors
in India and has immense potential for growth. The telecommunication activity is
commercial in nature and people are willing to pay for it. Of all infrastructure sectors, it
is perhaps the best suited for private sector participation which would help to create a
competitive environment and improve the quality of services to consumers.
Deregulation and competition are key elements in telecommunications reforms all over
the world and will be a guiding principle to the evolution of policy in this sector in
coming ears.

Private investment is expected to play a major role supplementing the efforts of

the public sector in expanding capacity and also providing competition within the
system. In the area of value-added services, the private sector would continue to play a
dominant role. The quantum of investment by the private operators would basically be
determined by the rate of return on such investments both basic as well as value-added
services.

Necessary steps would be taken to streamline policy so as to remove the various

bottlenecks to ensure effective participation and adequate investment by the private
sector.

The telecom sector has witnessed some fundamental structural and institutional
reforms in the past decade. Telecom equipment manufacturing was completely
deregulated in 1991; Value added services (including cellular services) were thrown

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open to private sector participation in 1992. Basic services were opened to private
participation in 1994 by dividing the country into 21 Telecom Circles and allowing one
private operator per Circle to compete with DOT. An independent Telecom Regulatory
Authority of India was set up in 1997. (Sethi, 2006) A new Policy for Internet Service
Providers (ISPs) was announced in 1998 allowing independent service providers to
enter the sector ending the earlier monopoly of VSNL. Reorganization of DOT
separating policymaking function and service provision and corporatisation of DOT's
operational network are two major institutional reforms, which need to be
implemented. (Government of India, Economic Survey, 2004)

Telecommunications has emerged as an important driving force in a modern

economy. Considering its vital importance, the Government adopted the National
Telecom Policy Declaration in 1994. The Government has placed great emphasis on the
rapid growth of this sector by introducing major reforms. (Singh, et al, 2005)

The telecom network in India today is not small in absolute terms. With over 12
million lines, it is the 14th largest in the world. Yet it suffers from an abysmally low
penetration of 1.3 per 100 population when the world average is over 10. More than 2.1
million consumers are in queue waiting for a telephone line.

Paradoxically, India may be fortunate to have such low teledensity. Unlike

many advanced countries it does not suffer from large sunk investments in technologies
which today are fast becoming obsolete. It has the opportunity to leapfrog technologies
and provide its people the benefits that are increasingly feasible from the incredible and
continuing change that the telecommunications industry is going through worldwide.
(Singh, 2004) India's vast size, the large number of spread out settlements and its large
unserved population provides a huge potential for the expansion of telecommunication
services. This opportunity must be seized.

For this, the need of the hour is to (Sethi, 2006):

• Raise substantially the penetration ratio in order to provide access to dependable

voice communication means with at least national Subscriber Trunk Dialing
(STD) connectivity to a much larger cross-section of the population.

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 • Satisfy the more demanding audio, video and data communication needs of the
business community in all major business districts in the country, and

• Make provision for easy up-gradation of the network to meet future

communication needs.

All this would need a rapid expansion and upgradation of the existing network. If
the telecom network in India is able to grow at even the current annual growth rate of
20 percent for the next five years, it would rank among the six largest networks in the
world. This in absolute terms would mean an addition of 30 million more basic
telephone lines a number which is expected to be second only to China. India has also
expressed its first commitment to make large investments in value-added services by
opening up this sector. All this would place India among the leading countries in terms
of equipment purchase. (Panchal, 2003) This highlights the importance that India
would command in the global telecom business in the near future a fact which should
be used for strategic leveraging. Concerted efforts need to be made to attract foreign
companies to set up manufacturing bases in India for supporting domestic as well as
export sales.

Substantial investments will be required to ensure that India acquires the status
of a global player in telecom. This cannot be achieved through governmental efforts or
through a monopoly state-owned operator alone. The Government of India has realised
as much and initiated the process of progressive deregulation of the telecom sector.
(www.trai.com)

Apart from opening up the basic as well as value-added market segment of

telecom services to the private sector, the government has taken major initiatives in
offering a level playing field to operators by promulgating an ordinance constituting the
Telecom Regulatory Authority of India (TRAI). The Ministry of Communications is
also examining restructuring of the Department of Telecommunications (DoT) into two
separate bodies, one dealing with policy planning and the other in charge of service
operations. However, a great deal needs to be done, especially in terms of the
implementation strategy to that the country can enjoy the benefits of the reforms.
(Singh, 2004)

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 The telecommunications sector has undergone a total transformation throughout
the world over the last two decades. Technological advances have revolutionised the
quality and range of services available. Moreover, developments in the sphere of
information technology, satellite-based television broadcasting, new forms of
communication such as data communication through e-mail and associated services
through the Internet, are all blurring the definition of what constitutes telephone
services, and transforming the way people communicate and conduct business.

Clearly, a country's ability to benefit from this revolution depends heavily on

the modernity of its telecommunications network. Countries that can acquire and access
information on demand and then integrate them usefully into their industrial structure
through a modern telecommunications network are most likely to experience high rates
of growth. Large-scale use of information and telecommunications technologies
directly influences productivity, cost effectiveness and competitiveness in industries
with high levels of product differentiation and low levels of unit prices. (Singh, et al,
2005)

In these industries, prompt availability of information about demand trends or

price movements can boost competitive advantage. This is especially true for low-tech
industries. International competitiveness of the textile, garment, toy and consumer
electronics industries in Taiwan and the Philippines have been found to be effective due
to advanced telecommunications services that allow tight links between commercial
distribution in American and European markets and local production.

Sethi, (2006) points out that an advanced telecommunications system is equally

important for service industries like banking, trading, retailing, transportation,
maintenance and insurance where information and real-time communication are vital to
the production process. A reduction in the costs of these services will indirectly
enhance international competitiveness within the entire economic system, since lower
marketing costs mean lower costs for manufacturing firms exposed to international
trade. The extraordinary efficiency of financial markets of Hong Kong and Singapore is
more and more based on the expensive use of such advanced telecommunications
services.

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 Thus, improved communication is vital for productivity in all spheres of activity
in agriculture, industry, trade and commerce. In addition, with the increasing movement
of people within and outside the country, easy communication is essential for
enhancing human welfare so that families, friends and acquaintances can overcome the
barriers of distance. For a developing economy like India, it is thus important that
policies and programmes be initiated, and resources committed to bring about rapid
growth in the sector. (Geetanjali, 2006)

Teledensity in some developed and developing countries of the world is given in Table
below.

Table 1: Teledensity in Some Developed and Developing Countries of the World

(2003-2004)
Country Teledensity
Australia 126.18
Bangladesh 1.56
Brazil 42.38
China 42.32
India* 10.38
Indonesia 9.17
Nepal 1.70
Pakistan 4.42
Sri Lanka 9.57
UK 143.13
USA 116.43
* as on September 30, 2005
Source: Government of India, Economic Survey, 2003-04, p. 180, Table 9.8.;
Telecom Regulatory Authority of India (Quarterly Report).

Contrarily, India is fortunate to have such low teledensity. It has the opportunity
to leapfrog technologies and provide citizens the benefits that are increasingly feasible
from the incredible and continuing change that the telecommunication industry is going
through worldwide. The opportunity must be seized. This is in line with Frankel's,
observation years ago, an industry grows and adapts to changing and increasingly
complex production methods, inter-connections more or less rig develop among its
components - machines, plants, transport networks and raw material supplies - that

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make increasing difficult the introduction into the system of new cost-saving changes.
As a result, costs are higher and labour productivity lower than it would be in a less
mature industry. The old industry finds itself penalised for having taken the lead and
shown the way to its young competitors in other regions". (Sethi, 2006)

Advanced telecommunications, thus seems to offer a developing country the

perfect opportunity to leapfrog in order to benefit from this situation.

Substantial investments would be required in the sector for India to acquire the
status of a global player in telecom. This cannot be achieved through governmental
efforts or through a monopoly state-owned operator alone. The Government of India
has initiated the process of progressive deregulation of the sector. Though some
landmark policy initiatives have already been taken or are underway, a lot more needs
to be done especially in term: of implementation strategy so that the country can enjoy
the benefits of the reforms. (Singh, 2004) In order to explore the ways and means of
how best the funds can be raised to sustain this ongoing reforms process, it is first
necessary to review the present functioning of the sector and the policy guidelines
adopted by the Government regarding deregulation.

Information Technology - Policies and Prospects

Automatic approval for foreign equity in software and almost all areas of
electronics is permitted. Automatic approval is accorded for foreign technology
agreements in all areas of electronics except aerospace and defence, subject to specified
conditions. 100 percent foreign investment is permitted in units set up exclusively for
exports. Such units can be set up under anyone of the following schemes; EHTPs,
STPs, Free Trade Zones/EPZs, and 100 percent EOUs (Sethi, 2006)

India is the preferred location for software vendors for its quality and cost. India has
strong Unix base which provides opportunity for the development of products for
internet based applications. Further, India has global connectivity with international
dialing facility from over 13220 locations, leased/switched high-speed data links from
major centres through STPs and VSNL. Internet connectivity is provided through
several networks. Abundant investment opportunities exist in the following thrust areas
in India:

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 • Communication Infrastructure
• Optic Fibre Cable
• Gateways
• Satellite-based Communication Wireless
• Software Development
• IT-enabled Services
• IT-education
• IT-enabled education
• Data Centres and Server Farms

The Standing Committee on Communications and IT has considered the

Communication Convergence Bill 201 introduced in the Lok Sabha on August 31, 2001
and laid its report in Parliament on November 20, 2002. (Government of India,
Economic Survey, 2004)

Changing Scenario

The Indian telecommunications sector has undergone a major process of transformation

through significant policy reforms, particularly beginning in the 1990s, that led to
gradually ushering in competition for greater consumer welfare, particularly in terms of
lowering of tariffs and improvement in quality of service. The reform phase began with
general liberalization of the economy in the early 1990s. Telecom equipment
manufacturing was delicensed in 1991, and value-added services were declared open to
the private sector in 1992, following which radio paging, cellular mobile, and other
value-added services were opened gradually to the private sector. (www.trai.com)

The most important landmark in telecom reforms came with the New Telecom
Policy in 1999, called the new or third generation of reforms. NTP-99 envisages a
teledensity of 7 by 2005 and 15 by 2010. To achieve this, approximately 75 million
telephone connections would be required to be provided by 2005, 175 million by 2010.
At current prices this translates into US$37 billion by 2005 and US$69 billion by 2010.
(Prashant, 2006) With the software industry booming and Internet/mobile phone market

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exploding, telecommunications in India is gaining due importance. Moreover, rural
telephony, maintenance of already existing networks, and products of strategic
importance offer huge business opportunities.

Factors Influencing Performance of Players

• Ability to arrange financing: The huge investment cost & licence fees
payable by the cellular licensees result in large funds requirement. Finance
from vendor is one source of funds for the licence holders. Equipment
suppliers are depending on EXIM banks of three respective countries to
supply the foreign currency part of the financing. (Singh, et al, 2005)

• Supplier’s local engineering resources for repairs and maintenance. Suppliers

who manufacture locally would be preferred since they bring down cost by
avoidance of customs duty.

• Demographic factors: The earning potential of a telecom circle would depend

on the type of demographic profile of that circle cellular and fixed line
penetration would depend upon concentration of business customers and
proportion of families into the higher economic strategy.

• Telecom Circle size & location: Circles within region would offer economies
of scale in marketing and lower operational overheads. Operators who have
been able to bag licences for circle, which are clustered within region, would
have a definite advantage.

• Maturity of operator: The longer the maturity and experience of the operator
the letter. This being the first venture of the Indian partners into telecom
services, the experience of the foreign partner in a JV assumes a great
significance. In terms of adapting to technological changes & experience in
servicing a particular level of traffic, maturity is an important consideration.
(Sethi, 2006) Assessment of the operators’ performance vis-à-vis is its
network construction record is done.

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• Regularity risk: The chances of adverse changes in regulation are high in
India. The degree of business diversification of the telecom operator may
mitigate the risks on this front.

• Competitive risk: Cost & quality of service offered the future marketing
strategy would distinguish the performance of operators & determine long
term competitiveness.

• Technological risk: Technology changes may translate into changes in quality

of service as well as pricing advantage. Ability to adapt to technology
changes area period of time is thus a crucial factor. (Panchal, 2003)

This is especially so far cellular operators where pricing is a tough achievement

of penetration levels.

Problems & prospects

We are in the era of entertainment through mobile handsets. Downloading a

ring tone, watching your favourite movie or tracking cricket scores-the list of activities
that you can do using your cell phone is endless. Network providers and lesser-known
companies helping them provide these value-added services (VAS) are smiling. The
market for mobile value-added services is currently about Rs 380 crore, and it is
expected to grow to around 3,500 crore by 2010. (Sethi, 2006) To supplement stagnant
voice revenues cellular operators are now turning to VAS to boost revenue in both data
and value-added voice services. Revenue from the VAS segment is growing at a rate of
30 to 40 % a year.

Saturated voice market

Analysts feel that the mobile industry is at a critical inflection point. In Europe
and some Asian markets such as Hong Kong, Singapore and Malaysia, the mobile
penetration levels are very high and stagnation is already setting in.

However, in markets like China, Africa and Asia (including India and several
other markets), mobile use is fast paced. So we have two sections of the global market-

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one that is approaching stagnation and the other which has significant growth
opportunity in the short term. In markets where there is stagnation, the ARPU (Average
Revenue Per User) is expected to remain consistent, and in some cases go up based on
the introduction of new services such as 3G and Evolution Data Only.

Assorted players

A lucrative market is bound to have players offering a range of services. Most

of these companies offer entertainment (such as mobile gaming), though their strategies
differ. Other services provided include premium roaming services.

ARPU concerns

An expanding customer base is good news for the mobile industry. However,
increasing customers with low ARPU is the flip side of the coin for a telco. As far as
operator is concerned, this helps them differentiate in an environment where voice is
maxed out and ARPU is falling. Mobile VAS helps them increase ARPU, and VAS is
between 5 to 12% of an operator's total revenues now (Geetanjali, 2006) ARPU while
overcoming technology limitations. Mobile operators in western countries have been
positioned well to exploit data services. Their counterparts in GSM regions with low
per-capita incomes face the problem of proliferation of entry-level, feature-poor
handsets.

The Need for Value Added Services

India is going through a telecom revolution, especially in the wireless telephony

segment.
The adoption of mobile telephony remains unparalled in scope, as users from diverse
segments increasingly choose to exercise the option of personal mobility. The user base
has been adding 3- 4 million subscribers per month (on an average) and recently the
mobile subscriber base crossed the 100 million mark in April 2006. (Gairola, 2006)
Panchal, (2003) suggests that the success of the market can be gauged from the fact that
mobile user base has surpassed the PC user base in India and very soon the Indian

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market will have more mobile users than TV viewers. India is rapidly moving towards
being an evolved mobility market with no distinction between market incumbents and
challengers.

The Road Ahead

It is believed that while the mobile VAS space is all set to grow rapidly, all the
stakeholders will have to work together and create a self-sustaining ecosystem for this
growth to sustain.
Similarly it would take a joint effort of all concerned to address the significant
roadblocks and thus unlock the true potential of Mobile VAS in India. The key
addressable barriers would be to ensure greater rationality in revenue sharing between
Telecom Companies & content developers; ensure copyright protection, develop higher
quality content which goes beyond Bollywood and cricket and also to have a focused
WAP strategy. (Prashant, 2006) It is also believed that while pure entertainment service
would continue to appeal to the younger consumers, the overall focus for Mobile VAS
would shift to utility based services like location information & mobile transactions; as
security concerns are addressed mobile transactions will also have a good potential in
India. (Sethi, 2006)

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 ‘OLD AND ‘NEW’ MEDIA

Before I go ahead to give an introduction to the still-shaping field of new media, let me
first explain the entire model of the traditional media. It is not a comparison; it is what I
think of the existing media. The print media has two customers—the readers and the
advertisers, and here one pays for the other. The business module it works on involves
understanding the customer concerns; and keeping that in mind, a balanced content and
marketing orientation are developed.

Revenues are generated from the subscribers; and in terms of electronic media, it is the
number of viewers and advertisers. This earned money goes in manpower, content
generation, infrastructure, creation, delivery and associated costs. It is said that in print
media by increasing the number of readers, you end up eating your profits. This is be-
cause the reader will pay you a small amount for the newspaper or magazine. But there
is a lot of cost involved in printing and distributing that one extra copy of magazine or
newspaper. There is a limit that you can charge from the reader so the challenge lies
with the media houses to come up with solutions that would not hurt their pockets as
well as of their readers. This dilemma has led to more and more dependence of the
media houses on the advertisers. Very few magazines now depend on the revenue so
generated from the subscriptions or magazine purchase.

In the case of B2B form of media, advertisers prefer to hand out complimentary copies
to a few selected readers or magazine copies are available only on subscription. This
way the advertisers are assured that they are reaching out to the target and niche
audience base, which would maximize their opportunities of getting business and
would create leads for them to follow up on.

Now, what does the reader need from the media houses? His basic content needs are
listed below:

• Vetted information

• Easy to read

• Unbiased and correct information

• Storable and referencable data

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Here are some truths about the content:

• Topicality

• Relevance

• Credibility

• Addictive

• Associative

• Compact/ Slick/ Sticky

• Entertaining

• Educating

• Saleable

And how to make the media business viable:

• Identify the advertisers

• Identify the needs of the market

• Analyse competition

• Brand positioning

• Define the benefits package

• Communicate the benefits package

Questions you must consider while making a media business plan:

• Why this plan?

• For whom is this plan?

o Defining your customer

• What is the offering?

o Defining your service offering

• How will this service offering be delivered?

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 o Defining vehicles of delivery

• Commercial positioning

• Revenues

• Expenditure

All this is no rocket science. But yes, every media house has to bear in mind the
reader's needs, and its own business and content needs to design a package to make
both ends meet.

Now moving to new media. The reader, the content and the business are the same, just
the look and the feel have changed. This change helps the media houses to:

• Reach out to a wider range of readers without incurring additional costs

• Make use of the technology to package their service offerings

• Free or extremely cheap content availability

• Easy storage option

• Easy to read

• 24×7 availability with wider categorization

The need for new media arises when we understand that media is also a form of
business and not just a platform for sharing information. And many times, we associate
the term business with talks of budgets and revenues.

INNOVATIVE (I) MEDIA = NEW MEDIA + CREATIVITY

New media is an interesting subject, which not only gives one an opportunity to exhibit
one's creativity but also teaches different ways to harness the potential of Internet to
promote brands. It must be noted here that by simply posting one's message online, the
desired response may not be derived. It is required that one must think out-of-the-box
and be a little creative. Once that is done, you will be using an innovative medium to
send your message. This is Innovative Media (I-Media). It is not only a crowd puller
but will also leave an everlasting impression of your brand in the minds of the users.

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I-Media is no technical code that needs to be incorporated in your website and there no
formal method or flowchart to follow. I-Media is not about re-inventing the advertising
wheel, but simply about blending whatever you are doing online with some new
thoughts, creativity and innovation. One must keep the following in mind while
planning any online campaign.

Study Your Audience

The obvious thought that may come to your mind is, 'Would any marketer do it?' Yes,
every marketer knows his targeted audience very well. You may have the best
demographic details, but do you accurately know what they do not like about you?
Knowing about the audience that hates your product or brand is also very important.
Understand why they hate it and keep them in mind while developing your
communication. You will always have critics, but by slightly making changes in the
way you approach, you may win more customers instantly.

Add a Relevant By-line

Most often, we spend a lot of time designing our brands, thinking about different sizes
and colours that can be used to showcase the logo. What we forget is to have a by-line.
Having a line accompanying your brand everywhere may not sound like a great idea.
But the fact is that an appealing by-line attracts attention and increases recall. So do
your brands a favour, based on the brand image you wish to build, have a by-line.

Use Colours that Match the Image of Your Brand

Colours play a very important role in not only attracting attention but also encouraging
online visitors to try your product or use your services. I suggest you study the impact
various colours have in different seasons to better colour your communication.

Be Creative

There is no substitute of being creative. A marketer must be creative in conveying the

message. Produce creative story-line for your communication. That could be humorous,
witty or simply emotional. Your online communication or advertorial must connect
with the lives of the targeted audience.

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Innovate the Way You Present Your Product

Believe that your product is the most precious thing one can ever possess. Hence, inno-
vate your style of presenting it online. Forget those simple physical launch parties and
expensive star-studded nights. The mantra for successful promotion is being simple and
cleverly innovative. Build in surprises for your customers and believe me, your
customers will love you!

Let Customers Interact with Your Brand

Only new media helps you do that. Create an impression by letting the online user
interact with your brand or product. The next question would be how? Well, if you
wish to build an image which should attract young and adventures audience, create a
game like dirt bike race where they have to assemble your product to participate in the
game. Make sure you offer prices for those who win.

Build Healthy Controversies

It is always a good idea to be associated with a 'healthy' controversy online. It helps

you put the brands opinion forward. The brand then is perceived affectionately by the
group of people who support the cause. Assess and value the discussion forum before
you get into a controversial situation. The impact is fast and effective, but I would
suggest you to be very careful.

Effectively Use Multiple New Media Options to Accelerate Reach

One sure way to succeed online is to use different forms of new media in a very in-
novative way. This will accelerate your reach and help you achieve targets earlier than
you expect. If you are currently actively campaigning online, how about also
considering keyword based marketing to pull traffic from search engines.

Have it on Your Website but also Upload it on Social Media Sites

Very often, as a marketer, our prime focus remains on the content of the message, tar-
geted audience and our website. We tend to put everything up on our website and hope
people begin to visit the website to experience our message. But how do people know it
is up there?

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The next thing comes to our mind is using keyword based search. Imagine reaching out
to millions of people in one go!

You would not need to plan separately to attract attention to your communication. All
you have to do is, of course, based on what your product is, create presence on social
media websites and form communities. This makes your message available on the
social media search engine and people can also leave their comments.

In no one way can we set rules for innovation or define a set of successful innovations
online. It is boundless. You should be creative and position your communication
wisely. Most marketers have realized the importance of being innovative and it is only
going to become more competitive in days to come.

So be creative, think innovation and use I-Media for quick response.

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 MOBILE MARKETING

The mobile device gives access to a one-to-one, direct-to-consumer and personal con-
tact with the customers. To take advantage of this, the brand managers are experiment-
ing with mobile marketing as medium of communication and entertainment between a
brand and an end-user.

WHY MOBILE MARKETING?

Reasons

The following are a few reasons that make mobile marketing very attractive and tempt-
ing for most marketers:

1) Attention seeker: This is possibly the best way to engage the consumer
into a dialogue.

2) Crowing reach: The estimated number of mobile phone users in India

are 100 million!

3) Viral effect: The entertainment factor that an advertising message can

carry allows it to get viral and then be shared by people.

4) Appropriately customized: Messages can be customized based on

geography or consumer profile.

5) Ease in analysis: The medium of advertising allows better analysis of

the campaign.

6) Personal: Can be personalized and is very effective while

communicating with an individual.

7) Cost benefit: It is much cheaper as compared to other traditional

mediums of advertising.

8) Mobile accompaniment: Mobile phones always remain with an

individual anytime, anywhere.

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Key

The key is to devise an effective mobile marketing strategy, which adds value and
makes the customer approach your brand rather than 'spamming 1 the consumer. A
marketer must design a mobile marketing campaign that delivers on the following
parameters:

• Innovative

• Personalized

• Targeted

• Measurable

It is very important to set the filters for the audience that you are targeting. It is better to
have a short but crisp list of contacts that you are messaging to use mobile marketing.
The better you research the data before using it for the campaign, the better the
response ratio will be.

The credit for increasing the popularity of mobile marketing largely goes to SMS
(Short Message Service). The SMS now has become a legitimate advertising channel.
This is due to the fact that well-established guidelines have been set to the use of the
mobile channel for marketers. And as these guidelines began to fall in place by the
mobile operators, SMS has become the most popular branch of the mobile marketing
industry with almost 100 million advertising SMSs sent out every month in Europe
alone.

TYPES

Broadly, there are three main types of mobile marketing services.

Profile Based: Text or picture messages are customized depending on the user's profile
and then sent to the audience. The only cost involved here is that of sending the
messages (which can be sent through a regular PC, after installation of softwares). The
messages can be created on the region-specific rules.

Short-code Based: This type is highly complimented by the traditional forms of media.
A campaign is run which lures the consumer to respond to a 4-digit number to generate

30
an opt-in list. This type is used when you intend to target a specific audience and the
recall value is important.

Long-code Based: This type hires a 10-digit virtual or real mobile number, which is
rented out from the operator. This type works for all telecom providers and is cheaper
to use for the consumer as compared to short-code. This also has a lower recall and
hence, can be used for promoting insurance or credit cards.

MMS: A MARKETING TOOL

This method of marketing gives the marketer an opportunity to share more creative ads
with the consumer. Multimedia Message Service (MMS) can be used to send images,
text, video and audio to mobile phones. Most phones that are produced with a colour
screen are capable of sending and receiving MMS messages.

IN-GAME MARKETING ON MOBILES

For certain enthusiastic brands that wish to create an image of youth and adventure can
use gaming on mobile phones to promote their image. Brand managers can deliver
promotional messages in mobile games or sponsor the entire game to drive consumer
involvement. There is more you can read about in-game branding in the next few
chapters. Gaming has been used creatively by many marketers and now it is about how
the brand can make it viral and engrossing. I would refer to it as 'engrossed' gaming.

WEB MARKETING ON MOBILE

With the growth of mobile technology and more number of people buying PDA's, the
mobile marketing space has grown. Today, one can use the Internet on most mobiles
which makes millions accessible to net. The audience that the mobile web caters to can-
not be ignored and hence companies such as Google and Yahoo!, among others, have
been selling advertising placement in mobile-specific web usage. The MMA (Mobile
Marketing Association) provides a set of guidelines and standards that give the recom-
mended format of ads and presentation.

VIRAL MARKETING OVER THE MOBILE

Viral marketing is a unique way of going about mobile content advertising. Through
specially designed downloadable applications, users can send recommendations for

31
mobile content they like to their contact lists. Passa Parola, the Italian version of
Meyou, has reached a total of 8,00,000 registered users by the use of viral marketing
alone. In 2007, a viral mobile campaign drove the sales of purchase of three different
viable youth products to over 2,00,000 end-users in eight days. This will be coming-up
in BBC Documentary on the global mobile market/trends in 2008. The growth in
mobile products such as ringtones, games and graphics have interested the youth and
affected the sales of mobile music, clothing and movies.

FUTURE OF MOBILE MARKETING

According to a survey conducted by a mobile marketing provider, approximately 89 per

cent of major brands are planning to market their products through text and multimedia
mobile messaging by 2008. One-third are planning to spend about 10 per cent of
marketing budgets through mobile marketing. Also, in about five years, over half of
brands are expected to spend between 5 and 25 per cent of their total marketing budget
on their mobile marketing.

According to an article on www.home.businesswire.com, 89 per cent of major brands

are planning to market via mobile phones by 2008. Mobile marketing will accelerate
with more than half of brands planning to spend up to 25 per cent of marketing budget.

The article stated that major brands are shifting significant marketing resources to
marketing via mobile phones, according to an independent survey of 50 brand name
companies commissioned by Airwide Solutions, the mobile infrastructure software
provider. By 2008, about 89 per cent of brands will use text and multimedia messaging
to reach their audience, with nearly one-third planning to spend in excess of 10 per cent
of marketing budgets on the medium. In five years, over half of brands (52%) expect to
spend between 5 and 25 per cent of total marketing budget on mobile marketing.

Recognizing the prevalence of mobile text messaging, 40 per cent of brands have
already deployed text messaging campaigns and 18 per cent have deployed MMS cam-
paigns. Despite enthusiasm to adopt mobile marketing, growth is still inhibited by the
lack of supporting information to manage and optimize marketing programmes. More
than half (55%) of responding brands are unsure how to reach specific target audiences
via mobile campaigns, 58 per cent are unsure about how to implement and measure an

32
SMS campaign and 61 per cent unsure of how to implement and measure an MMS
campaign.

The top three things that would make mobile marketing more attractive to brands are
the ability to reach a specific target audience, information about how the user re-
sponded to a marketing message and proof that a message has been received by the
user's handset. Airwide addresses these issues with the launch of Airtrends, a new busi-
ness analysis tool for mobile messaging that will remove the main inhibitors to mass
adoption of mobile marketing. Airtrends provides proactive information that is far more
comprehensive than what can be derived from existing handset reporting tools. Not
only addressing the requirements of the brands, Airtrends also provides critical
information to mobile operators allowing them to optimize their networks to support
marketing campaigns and to prevent spam by alerting them to suspicious activity.

According to the survey, brands expect mobile marketing to become far more effective
than traditional direct mail, with 47 per cent expecting between 5 and 15 per cent of
recipients to request more information or a sample, and 34 per cent expecting between
5 and 20 per cent of recipients to undertake a financial transaction after receiving a
mobile marketing message.

Mobile phone users are expected to benefit from a range of incentives as part of the
growth of mobile marketing with half of brands to send special offers via the mobile
phone and two in five sending competitions. Other incentives will include discount
vouchers, free gifts and preferential terms.

MOBILE MARKETING SERVICE PROVIDER ANALYSIS

With the growth of mobile subscribers and increase in the awareness of mobile adver-
tising, there are a number of mobile advertising service providers who are technically
connected with the mobile web to assist various companies in promoting their products
on the mobile.

Most of these service providers link up with all operators, both GSM and CDMA. So
that the consumer who sends a text message or goes to a web page on his/her mobile
phone can access their services. This gives them the capability of building campaigns
for media companies and brands. Modes of advertising that are actively used are SMS

33
campaigns, contest and brand promotional ideas. There has been an increase in the
number of mobile interactive campaigns as TV channels like Aaj Tak, Janmat and Ten
Sports have started taking mobile advertising seriously. As for the FMCG industry,
distributing coupons or vouchers over the mobile may be interesting. It can attract
consumers to the nearest stores and can be executed regionally to increase impact.
Coupons over the mobile are sent as bar codes and then scanned at the point of
redemption to execute the transaction. The other way is to send it through SMS. In this
system, messages containing coupon number can be delivered. The coupons could be a
ticket or a discount coupon, which a retailer would like to give to its customer. Spice
Telecom in Chandigarh, in the past distributed entry passes for a show.

MOBILE MARKETING BEST PRACTICES

1) Never purchase mobile phone number lists. You must obtain the phone
subscriber numbers through an opt-in procedure. If you send messages to
subscribers who have not opted in to your campaign, your messages will be
considered SPAM, which may get you into legal complications in many
countries.

2) Do not reuse opt-in lists from your previous campaigns. Subscribers

must opt in to new campaigns each time. To do this, you could send an SMS
blast to those lists, asking if subscribers would like to opt in to the new
campaign.

3) Charge for premium campaigns. If you are planning to run a premium

campaign targeting very niche audience, it is always a good idea to use a double
opt-in procedure. This could mean sending a message to a dedicated number for
a price more than the standard SMS charges. This ensures that the subscriber is
purposefully participating.

4) Use statements that convey the right idea of costs for the response. In
the first few campaigns to the subscribers, do mention 'standard rates apply'.

5) Always provide the subscribers, instructions on how to opt out of the

campaign in the first message. Use self-explanatory terms like STOP for opt out
messages.

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6) Consider developing a landing page on your website to enhance the
impact of your campaign. Clearly indicate terms, conditions, billing information
and opt out procedures of your campaign in all promotional material.

7) Always state the prices of all products you intend to sell. Do mention
those when applying for approval of premium campaigns.

8) Never promote a service as 'free' when standard or premium rates apply.

When only standard rates apply, use the word 'complementary' instead.

9) When selling binary content, create a website that will host the content
before submitting the campaign to carriers. Most carriers will not approve your
campaign until the website is up.

10) Never ask for personal information like bank account numbers, social
security numbers, credit card numbers, PINs, etc. Carriers do not approve
campaigns that request this information.

11) If you are unsure of the types of messages you may send in your
campaign, create tentative message flows for alerts, polls and voting. This way,
if you decide to add a new message type to your campaign, it will be approved
much faster since carriers approve altered message flows faster than new ones.
This would not work in all cases, so I suggest you to know the subscribers well
and choose your messages carefully.

12) Provide an opt-in reminder every five messages for daily message
campaigns. For less frequent messages, you can remind the subscriber each
time.

13) Use the standard format when instructing subscribers what to do. List
the keyword first and then the short code. For example, 'Send CAR to 65656.'

14) If you are promoting your short code, then always provide the short
code's digit. For example, 'Send YES to 43556 (HELLO).' This is especially
important for subscribers with QWERTY keypads.

15) Keep your message under 160 characters, the maximum length of a
standard SMS message. Messages longer than 160 characters will be either

35
interrupted at 160 characters or split into two messages.

16) Keep the number of keystrokes in mind when choosing a keyword. The
fewer key strokes, the easier for the subscriber to text. If you can abbreviate a
keyword, do so. Popular abbreviations are 'Y' for yes, 'N' for no and 'msg' for
message.

17) Do not use keywords that are long or difficult to spell.

18) Make certain keywords easily acceptable when possible. If in a

campaign, you have to accept names as keywords, allow for misspellings.

19) When you create campaigns with multiple choice answers, list the
answers with A, B and C rather than 1,2 and 3. It is easier for the subscribers to
reply with letters since most phones default to ABC input mode.

20) Make mobile contest ballets or entry forms as short and as simple as
possible. Do not ask for unnecessary and lengthy information, like email and
street address.

21) Test your campaign with a mobile device before the start date. Make
sure all the components of the campaign, websites, database and content,
function properly.

22) After subscribers participate in your campaign, ask them if they would
like to opt-in for future messages. Offer them incentives such as promotions or
alerts. This will help you build an opt-in database.

23) If you employ several types of media to promote your campaign, use a
different keyword for each media type while keeping the message the same.
This way you can measure which was the most successful medium by
comparing the keywords. For instance, you could use the word HOT for the
print media, SUNNY for in-store displays and SIZZLING for in-venue.

24) Always accompany your campaign with incentives for the end user.
Allow radio listeners to vote on issues and reward them with coupons, rebates
or prizes. Often, try to offer incentives based on the subscriber's activity and
preference. If he/she is interested in a particular team, artist or product, offer the

36
 related promotions or content.

25) While creating a bilingual campaign, use a different keyword for each
language and state these keywords in all your promotional material.

26) For feature-rich campaigns, provide a directory that allows subscribers

to text HELP to discover all available options. This service could be offered at
standard minimal rates.

THE FUTURE OF NEW MEDIA

The future of new media has a lot in store for the end user. Next few months are going
to see a galore of innovation and excitement. Advertisers will get equal opportunity to
use the Internet and various forms of new media to promote their brands.

The keyword, however, is going to be innovation and creativity. Current Internet giants
are either going to acquire companies offering innovative technology or they will
simply enhance the user experience by increasing interactivity.

Based on my industry experience and understanding, some changes that I see coming
our way are as follows. I have made an attempt to define each one as an observer. But
what we will be offered during the course of the year may be more than what we
imagined.

Online Publishing

Various forms of online publishing will gain further prominence in the market. There
will be a great deal of innovation in the way blogs function and new 'Internet' media
companies with greater audio and video sharing capability will come into being. Social
networking communities will grow and converge into niche groups of thought. Online
media will be made available on various portable devices to make information
accessible for the mobile user. Online publishing will compliment further growth of the
Internet security and anti-spam tools.

Growth in Online Ad Spend

Search will become the front-runner in driving the ad spends online. Keyword-based
advertising will grow. Advertisers will get more inclined towards contextual and text-

37
based ads. This will encourage online properties to have more efficient ways of
reporting penetration and will generate highly specific reports. Do not be surprised to
see more players joining the race with Google and Yahoo!. Blogs will also gain
prominence and it will be taken more seriously for advertising.

New Media Measurement Tools

Coming months will also see an incredible growth in the way new media is measured.
After all, online companies have realized that only if they accurately measure the reach
and judge the impact, will they be able to claim credibility and authority in their
domain. We can expect the online companies getting more transparent and publicly
talking about the general demographics of their audience.

Online Picture Libraries

We will see more of online picture libraries in the coming days. Free services and
sophisticated yet easy-to-use tools for uploading, editing and sharing images will
become a craze. Certain companies that may charge users for these services will have
good reasons for the same. Further, you can be rest assured that the cost of acquiring
good images will definitely go further down. These companies will also bank on
contextual advertising for generating revenues.

Online Music

There will be a sudden increase in the number of music listeners online this year. It is
certain that you will witness launch of a number of professional online radios which
will offer high quality music (sometimes at a minimal cost) and its download too.
Online music search engines will also become more efficient to track user activity.
Youth will begin to form bands and post their music online.

Currently, they may be using YouTube to reach out to the world, but highly developed
music stations will encourage them to join their online community and attract a fan
following.

Personalized Search

The search market today is promising to be the highest earner in the online industry.
The question is that has the search at Google, Yahoo 1 or MSN achieved the highest

38
level of convenience for the user; and the answer is No. There is a lot more that will
have to be done in terms of personalization of search content. You may be aware of the
personalized collaborative search by Yahoo! (My Web 2.0) and Google (My Search
History). Where are they heading? They are heading towards creating a new user
experience where the search tool understands your personal preferences for
communities, applications and search keywords.

New technology will be developed to showcase the sets of search result for particular
keywords. These sets will save users time of going through many search engines and a
number of irrelevant links.

Developed Broadband Connectivity

The coming years will witness better connections and high speed broadband connectiv-
ity. You can soon expect to connect to the online world at higher speeds that allow
uninterrupted viewing of audio and video content and excellent quality. This will
encourage online video shops to play movies on the web to get more number of
subscribers. Look out for xMax, Wi-Max and Wi-Bro in the coming days.

Web Casting

With the increase in the quality of connection and broadband speeds, you will notice a
considerable increase in web casting. This is going to be the future of TV. Though it
may take some time, but stronger efforts will be made this year to improve P2P
communication and database.- You will soon have your favourite TV soaps playing
online with greater interactivity and choice to influence the story-line.

Enhancement in e-learning Tools

Online has always been considered a great way to learn. Enhancement in the e-learning
technology is going to be a boon for universities and institutions offering courses to
student all over the world. Podcasting and video blogging will gather more attention
than ever before. They will be instrumental in creating the classroom environment
online.

Real-Time Conferencing

39
The growth of the offshore industry has tremendously fuelled the growth of long
distance conferences. This year will see new improved technologies facilitating real-
time conferences. We can look forward to mergers and acquisitions by renowned
telecom companies to enhance the users' real-time conferencing capability. VoIP and
real-time video conferencing will gain prominence. We can expect our next training
session to be conducted by a trainer living in California and teaching us using real-time
conferencing!

Television on your Mobile

This might come as a surprise to you but get ready to watch TV on your mobile phones
this year. It is available in the US and currently the technology is being tested to use it
worldwide. India has already given birth to its first mobile soap which will be available
in the next few months. This will soon become an integral part of your mobile handsets
and you will never miss your favourite TV programme even while you are moving. The
broadcast will be highly personalized and viewers will be tracked by geography and
profile which the traditional television has never been able to offer.

All these changes may look like great advancement in the online media space, but the
truth is that each of the above have now become basic necessities and online companies
will have to think out-of-the-box to make the future look more interesting and
innovative.

The ones who really need to worry are those who are not willing to adapt and change
their marketing, monetization and content delivery approaches in an age of socially me-
diated, networked and increasingly personalized media.

As print mass media continues its slow decline as a medium, its publishers may have to
change their focus and integrate online with their current business to gain the most out
of the interactive online space. Be assured, print and online will co-exist, when together
they will only make the media house stronger.

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 INDUSTRY/ORGANIZATION PERSPECTIVE

Pinnacle is a mobile messaging operator, having proprietary SMS Centre (SMS-C)

based on an innovative SS7 based platform and thus differs from traditional SMS
providers. This gives the same messaging capabilities as a mobile network operator and
enables to offer greater speed, reliability and measurability than standard messaging
services. Pinnacle can also provide full delivery reports and a guarantee of controls and
security of the messages direct to the handsets.

Over the years eZeeSMS (Services) under the banner of M/s.Pinnacle Teleservices
Pvt Ltd. has emerged as a fast growing online Bulk SMS service provider and also in
Cellular Value Added services like 5digit Short code services, IVR Dialers, Outbound
& Inbound call solutions, Text to Speech & Speech to text Recognition, cellular Events
and promotions etc. The Services are generally aimed and focused on driving for user
friendly online applications. Pinnacle has delivered a variety range of tailor made
applications for its esteemed clients till now. Our expertise and innovativeness are
acknowledged and used by large numbers of corporate clients in India.

Pinnacle has a network of its Marketing team, a regular and prompt back end support
team along with a network of its Channel Partners, contributing to leverage strengths.

Technical Back Ground : The solutions arm of Pinnacle is one of the acknowledged
and advanced IT Solution Providers in India. Our combined and core expertise lies in
the domain of Telecom, managed by multi-talented group of young professionals and
dynamic team with vast experience in Database migration, reverse engineering,
database development and possessing sound performance records.

Over the years eZeeSMS (Services) under banner of M/s.Pinnacle Teleservices Pvt
Ltd., has emerged as a fast growing Bulk SMS aggregator. The Services are generally
focused and aimed for user friendly online applications. eZeeSMS has delivered a
variety range of tailor made Applications for online Bulk SMS solutions for its
esteemed clients till now.

41
Features of eZeeSMS Bulk SMS services :

• Has its own SMSC

• Messages are send with the Senders Name (as Sender Id).
• Delivery to all cellular circles and Networks in India, GSM / CDMA.
• Different customise messages to various mobiles can be send in a single click.
• Integrates with MS Excell or notepad files to coustomise messages.
• No need to a attached any phone/ SIM or download/ configure any software.
• High Delivery Speed with parallel connectivity.
• Delivery Status Reports.
• Smart Phone Book (Direct desktop Down loading / Uploading)
• Group Messaging.
• Annual Scheduling of Messages.
• Multifaceted Schedulings.
• Logs of History Reports.
• Admin Control for Downline Users.
• Follows Global Security Standards.
• Services even thru HTTP / XML , SMTP or SMPP
• Trusted collaborator.
• Economical and Cost effective.
• 24 x 7 support

Segments where eZeeSMS is offering a wide range of bulk text messaging

solutions :

• Mobile Network Operators

• Mobile Services Providers
• Stock Market
• Commodity Market
• Automobile Industries
• Tours & Travel Industries
• News Medias

42
 • Print Medias
• Advertisement Medias
• Entertainment Industries
• Multiplex Theaters
• Insurance Co.,
• Product Branding / Launching
• Event Promotions
• Contest
• Market Research & Feedback
• Welfare Clubs
• Financial Institution
• Educational Institutes,
• Manufacturing Industries
• Trading Houses
• Hotel Industries,
• Garment Industries
• FMCG's etc.
• Logistics

Apart from Bulk SMS services, eZeeSMS is Marketing and embossing its
Dynamic services & solutions an Authorised aggregator for :

• IVR's - Out Bound calls IVR solution for making calls to customers retrieved
from existing CRM database.
• Inbound Call center - CTI platform which can handel concurrent incoming
calls giving a Hierarchy of options to the callers.
• Customised applications in 5 digit Short Code SMS Services (A 5 digit
number available to subscribers of any mobile operator is used to run
campaigns, contest , Generate feedback, Generate Mass enquiry, Mass opinion
etc.. to receive response from consumers.. Generally used to extract or pull
targeted prospective customers.)
• Text to Speech & Speech to text Recognition

43
• Binary Push
• Ring Tones (Bollywood & Regionals)
• Mobile Application
• Event & Promotions
• Media & Entertainment

44
 BULK SMS SERVICES

WHAT IS SMS?

SMS refers to “Short Message Service” and involves the delivery of text messages to
mobile handsets.SMS is a general name for the technology that enables users to send
and receive text messages via mobile phones.

WHAT IS BULK SMS?

Bulk SMS services allow corporate clients to submit bulk SMS or mass communication
information to client handsets via the internet, desktop software or API from any web
server. Simply we can say sending multiple messages instantly to targeted groups or
individuals through a web based application is called bulk sms solution..

WHAT “START” PROVIDES WITH BULK SMS?

Start has created a platform that acts as an one stop solution for all the SMS needs of
our customers. Start provides turnkey connectivity solutions that enable companies to
easily and quickly connect to multiple mobile SMSCs & shoot thousands of sms in one
sort.

• User friendly interface for sending the sms to your desired customer
• Delivery and connectivity to ALL operators within India
• Access to send at any Indian mobile number
• Solid throughputs; up to thousands of sms delivered per minute
• 24 hour* 7 day a week support
• Real time delivery reports
• Option of flash messages & Binary sms
• Option of scheduled sms for future delivery at your desired time

45
 • Facility of customized sms wherein you can create personalized message
• Dynamic sender ID option
• Multiple group capacity for ease of future mass delivery
• Message Template facility

WHERE BULK SMS SERVICE CAN BE IMPLEMENTED?

• Advertising Companies
• Marketing Companies
• Service Industries
• Financial Institutions and Financial Services Providers
• Stock Brokers
• Bank & Insurance Companies
• HR & Placement Agencies
• Manufacturing Companies
• Event management companies & many more

WHY BULK SMS ?

• Acts as a bridge between you and your customer

• Promotes your products & services
• Messaging according to target group up to specific Age, Gender, City, etc.
• Cheaper, Faster & Instant Results
• Direct Reach to Audience even when the audience is out of station
• Highly personalized & intact secrecy
• Bulk platform to send batch at a time easily
• Instant alert at the time of market instability
• Competitive advantage through client satisfaction

46
VALUE ADDED SERVICES:

These are some notable points which would justify our stand among our competitors.

• Demonstration
• Flexibility in sms a/c validation
• Proper assistance in Conceptualizing the Campaign
• Database service as per client’s need
• Full training and ongoing support

47
 SHORT CODE SERVICES

WHAT IS A SHORT CODE ?

Short codes, (also known as short numbers) are special 5 digit telephone numbers,
significantly shorter than full telephone numbers, which can be used as a medium to
handle termination and origination of SMS and MMS messages from mobile phones.

They are designed to be shorter to read out and easier to remember than normal
telephone numbers. While similar to telephone numbers, they are at the technological
level unique to each operator, although providers generally have agreements to avoid
overlaps.

Short codes are widely used for value-added services such as television voting,
ordering ring tones, promotional campaigns, charity donations and mobile services.
Messages sent to short code numbers are generally billed at a higher rate than a
standard SMS. Simply we can say Short codes are required for two-way
communication.

WHAT DO WE PROVIDE ?

• We provide Pull SMS solutions by using the short code 56363

• We provide multiple keywords for use over this short code
• We provide customer response views over the web interface created by us
• We have created the user interface to provide easy access to the client
• The user interface generates multiple reporting formats that are easy to generate
• Our user interface is capable of displaying prefix, carrier & circle wise reports
on real time basis
• We support our clients from our technical centre 24 hours a day, 7 days a week
• We have validated experience in the market & many well respected clients

48
HOW SHORT CODE CAN EMPOWER YOUR BUSINESS ?

• Hold interactive sessions with media outlets & corporate clients

• To generate “real-time” responses from the targeted audiences
• To expand your reach in a very rapid time frame
• To provide true customer interaction opportunities
• Provides differentiation of your organization & services in the market
• Allows for centralized collection of ALL differing responses within a single
platform
• One of the most well accepted by consumers & cost effective tools for two way
communication
• This is a medium that allows you to target customers throughout India without
any boundaries or need for physical presence throughout India in parallel
• It can be easily used for lead generation, feedback collection, contests &
promotion, mobile commerce, events solutions and many more purposes

49
 TERMS OF BUSINESS

Definitions here under:

The User: The Client
The Company: Pinnacle Teleservices Pvt Ltd. for eZeeSMS (Services),
Redg Office: 1st floor, Nawab Appt, 7 Nawab Layout, Tilak Nagar, Near Law College,
Nagpur-10 (M.S).
General terms of use - Acceptance of Terms & Conditions:
The users are asked to read the following terms carefully before The user accept these
Terms and condition by signing the SMS Service Agreement of eZeeSMS (Services)
under Pinnacle Teleservices Pvt Ltd.. eZeeSMS (Services) is made available by a web
interface www.ezeesms.com and is the copyright work of Pinnacle Teleservices Pvt
Ltd. Use of the Services is governed by the terms of this agreement or any other
document describing features and conditions. Pinnacle Teleservices Pvt Ltd. provides
access to its eZeeSMS (Services). This is realized through an account that allows The
users to send short messages (SMS) and send up to 160 characters in SMS format to the
recipients defined in The users database. eZeeSMS (Services) will attempt to deliver all
of the SMS messages that The users have addressed to eZeeSMS (Services).
The users obligations:
In consideration of The users use of eZeeSMS (Services), The users agree to be solely
responsible for:

1. Providing true, accurate, current and complete information about Self and other
down line user under its group.
2. Maintaining and promptly updating the Data to keep it true, accurate, current
and complete.

The users are responsible for the access of the SMS-Systems by any third person. This
especially refers to all costs and charges for all, without limitation, messages that

50
eZeeSMS (Services) sends out are under The users account. The users are solely
responsible for the security of The users password and should under no circumstances
make it available to any third person (s). The users agree that they are responsible for
the Content of messages that The user submit, and The users, not eZeeSMS(Services),
have responsibility for the Content, including its legality, reliability, appropriateness,
originality and copyright. The users agree to not use the Services to intentionally or
Unintentionally violate any applicable local, state, national or international law, or any
regulations having the force of law. A recipient that does not wish to receive SMS
messages services including advertisements or promotions and states this clearly to
eZeeSMS
(Services) or The users, has to be removed from the system list for the time being The
user may not send to same client but in future The user may take these clients on its list
with same name and number. If The users use the Services for customized
advertisement or promotion, The users message has to contain a hotline or a help line
or a feedback Phone Number. The users should not use the Company's system
(eZeeSMS) for any unlawful or abusive purpose or for sending obscene, indecent,
threatening, harassing, unsolicited messages affecting / infringing upon national or
social interest nor create or cause any damage to any group or person (s).
Billing and Payment:

1. The billing system is agreed to be prepaid. The billing cycle is monthly and
ends on the last day of the month.
2. Subject to Termination Charges and trai(Telecommunications Regulatory
Authority of India) rules and regulation.
3. Charges are applicable on submission of SMS.
4. Pinnacle Teleservices Pvt Ltd. reservse the rights for the services without any
notice.

Rates / Tariff:
The rates are based with respect to the slabs considered for delivering the messages
with additional government Service Taxes as applicable.

51
The rates may vary for high quantum slabs on mutual agreed negotiation.

52
Technical Support Terms:
The Client/User can be provided with a admin control thru the website at their end to
monitor the accounts and usages of self and down line users. This service may attract
any cost thereof. The User can create its down line user accounts and allot them credits
from their own credit limits.
Duration and Termination of Agreement:
This Agreement runs for an indefinite period. The Agreement can be terminated by any
of the party at any time by written notice at the address mentioned
herein in writing to the other party under keeping to a notice period of 30 days prior to
the date of the termination of Agreement. eZeeSMS (Services) under Pinnacle
Teleservices Pvt Ltd., after giving a show cause notice to the user and is not satisfied
with the explanation provided by The user may terminate The users password and use
of the Services, and remove and discard any Content within the Services if
eZeeSMS(Services) believes that The users have violated or acted inconsistently with
the letter or spirit of this Agreement.
Notices and Modification of Agreement/Services:
eZeeSMS (Services) may send notices to The users via e-mail or regular mail. The
Services may also provide notices of changes to the Terms of this Agreement or other
matters eZeeSMS (Services) reserves the right at any time and from time to time to
modify or discontinue, temporarily or permanently, the Services (or any party thereof)
with 30 days prior notice. Changes in pricing such as the monthly minimum turnover
/slabs or the price for short messages (SMS) will be made available to The users with
prior notice of 7 days. If The users don't send a written acceptance for the Agreement
within 30 days to eZeeSMS (Services) keeping to the period of notice as defined in this
Agreement, it shall be consider The users agree to any changes in pricing or changes of
the terms, whichever is applicable.
Disclaimer of Warranties:
a) The users use of the Services is at The users sole risk. The Services and information
as defined under eZeeSMS (Services) are provided on an "as is" and "as available"
basis. eZeeSMS(Services) makes no representations, warranties, or guaranties as to the
quality, suitability, truth, accuracy or completeness of any of the Content transmitted

53
via the Services. Any disputes arising under this agreement will be subject to
Jurisdiction at Nagpur (India).

Under no circumstances can eZeeSMS (Services) under Pinnacle Teleservices Pvt Ltd.,
guarantee the delivery of messages. eZeeSMS (Services) is not liable for any direct,
indirect, incidental, special, consequential, punitive, or exemplary

Damages caused by, but not limited to, delayed or failed delivery of short messages
(SMS).

b) eZeeSMS(Services) makes no warranty that:

1. The Services will meet The users requirements,

2. The Services will be uninterrupted, timely, secure, or error-free,
3. The results that may be obtained from the use of the Services will be accurate or
reliable.

c) Any material obtained through the use of the Services is done at The users own
discretion and risk and The users are solely responsible for any damage to The users
computer system or loss of Data that results from the download of such material.

54
 FINDINGS AND ANALYSIS
The Role of VAS
This is where the role of VAS (Value Added Services) comes into focus. Operators are
facing cutthroat competition and with the call rates in India being one of the cheapest in
the world, the margins are very low. Therefore they are looking at VAS as the next
wave for growth. It has become the flywheel of telecom growth and a large chunk of
revenue for operators is likely to come from VAS services in the years to come. But it
is not only effort from operators which is driving the growth of VAS, there are other
factors contributing to it. The growth of VAS in India has been helped both by macro
level environmental factors and specific market initiatives to develop this category.
Figure1: Environmental factors driving VAS

Booming economy

India has maintained its position as the second-fastest growing major economy after
China, as rising consumer and government spending taking place. Consumption and
infrastructure spending are driving the growth. This booming economy has created job
opportunities and increased the spending power of an average Indian. This has resulted

55
in higher disposable incomes and faster acceptance of new technologies with a
willingness to spend for them.

Increasing comfort levels with basic mobility services

There is now a critical mass of users in the Indian mobile telephony market who
are experienced mobility users. These users are very comfortable in using their phones
and want to exercise the option of doing more on them beyond basic voice applications.
The first phase of growth for VAS has come in from these converts; and these users
will continue to drive the market and evolve into more advanced applications. At the
same time the basic VAS applications will also continue to appeal to the new mobility
category initiates.

Personalization of the digital world and digital devices

With increasing pressures and stress on individuality, mobility users also want
to carry forward their individuality to their mobile device. Thus for a large number of
users the mobile phone has become a truly personal device and VAS has become an
extension of persona. The enormous success of Caller Ring Back Tone (CRBT) is an
excellent example which illustrates that users are ready to adapt to any service which
offer them the option of personalization.

Reduction in call rates & CPP initiation

CPP (Calling Party Pays) was an important initiative which unshackled the
mobility market and allowed many more subscribers to enter the mobility category.
This initiative, in conjunction with the gradual reduction in call rates has ensured that
the expenditure on voice for a typical user has gone down over the years. As a result
more users have become comfortable in spending on VAS as it does not significantly
impact their overall outlay on mobility.

56
Market efforts driving VAS

For the operators, success of VAS has become important for their growth. This
has led to a sharp focus on marketing & tie-ups and a somewhat limited focus on
development of content. Most operators are now trying to innovate in their VAS
offerings and create sharper differentiation for their offerings.

Focus on movies & music

Movies & Music are the passion of India. Most of the rich content available to
the end users revolves around these two, with Ringtones of popular Bollywood songs,
Wallpapers of movie leads and games developed around movie themes. Given that
Youth account for a large segment of users & also dominate the pre-paid category, the
focus on entertainment has been a strong hook to develop the VAS category and
operators & content aggregators have been sharply focused in their efforts to pluck this
low hanging fruit. It has been helpful that the film industry in India is very prolific and
there are endless options to develop content around

SMS contests

Television is another culturally entrenched constant in the life of the average

Indian. Typically TV viewing has been a passive affair, however following the global
trend TV channels have been focused on making programming interactive. Thus
programs, especially music & contest shows have started giving the option to their
viewers to participate through SMS. A popular show like Kaun Banega Crorepati
(KBC) generated 58 million SMS over a 3 month period.
These shows have also been a key driver in increasing familiarity with basic SMS for
traditional low user segments like non-working women.

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VAS- Definition & Market Size

Mobile value-added services (VAS) are those services that are not part of the basic
voice offer and are availed off separately by the end user. They are used as a tool for
differentiation and allow the mobile operators to develop another stream of revenue.
The nature of value added services change over time. A VAS may become
commoditized and becomes so common place and widely used that it no longer
provides meaningful differentiation on a relative basis.
For example several mobility operators & other stakeholders in the industry no longer
consider P2P SMS as a form of VAS. However for the purpose of estimating the
market size we have taken P2P into account, though we also feel that P2P SMS is
ceasing to be a meaningful tool for service differentiation.

Current market size

The current market as of November 2006 for mobile VAS in India is estimated at Rs.
2850 crore.

Mobile VAS in India can be further categorized into the following broad categories:
P2P: Person to Person SMS, the most common form of mobile communication apart
from voice

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Ringtones: This is inclusive of monotunes, polytunes, truetunes and also includes
CRBT (Caller ring back tones).
P2A & A2P: P2A (Person to Application) SMS inclusive of messages sent by end
users for contests & for seeking other information like news & updates;
(A2P)Application to Person SMS inclusive of service push by enterprise service
providers; Also include calls on IVRS for all other services like astrology
Games & Data: Games include download of one play games offered by Reliance &
full play games offered by other operators; Data include download of wallpapers &
logos
Others: Include MMS (Multi Media Messages) & subscription charges for WAP
services. Though the mobile subscriber base has grown by over 95% (August 06 over
August 05) it is believed that relative growth in VAS revenues will be lower. As the
current focus by mobile telephony operators is on adding subscribers, many low value
users are now entering the category and are not likely to contribute significantly to the
growth of VAS. Overall the growth in 2007 will continue to be driven by Ringtone
downloads and by games; the share of games in the overall pie is also expected to
grow.
The current VAS market is expected to grow by 60% for the next year and at the end of
2007 should be close to Rs 4560 crore.
Current Growth & Future Potential for Different VAS
Entertainment VAS- Entertainment VAS is designed for mass appeal and extensive
usage. These provide entertainment for leisure time usage. An example of these kind of
services are Jokes, Bollywood Ringtones & games. These services are currently very
popular and are driving the revenues for the Indian mobile VAS market.
Info VAS- These are the services which provide useful information to the end user.
The user interest comes in from the personal component of the content. E.g.
Information on movie tickets, news, banking account etc. These also include
productivity services like missed call information which brings back lost business
opportunity for the operators. They also include user request for information on other
product categories like real-estate, education etc.

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mCommerce VAS (Transactional services)- mCommerce VAS allow the use to
conduct a transaction using the mobile phone. These services are in a very nascent
phase and are not really available to most users. An example of these kind of service
are buying railway tickets or movie tickets through the mobile phone. The revenue
generation and popularity of these three types of VAS revolves around 2 factors:
Perceived Value - Perceived value of a VAS depends on perceived rather than the
actual utility to the end user. When the immediate benefit may not be clear to the
subscriber, the value that a subscriber derives from it largely depends on the marketing
efforts and persona related to the service. The value is gauged more from the intangible
benefits derived from the service like emotional benefits. A good example of a VAS
with high perceived value is CRBT (Caller Ring Back Tone).
Practical Value - Practical value is completely based on tangible benefits derived from
the service. The benefits considered could be based on convenience & saving of time
and money. E.g. Service availed to get the cheapest air fares available.
These three categories of VAS provide a unique combination of perceived and practical
values for every user and this may change over time as the market & users evolve. To
understand the growth of the different types of VAS and their future growth, they have
been analyzed on both of the above mentioned factors.

Perceived & Practical value of Entertainment VAS

Currently entertainment based VAS applications are driving the market both in value
and volume terms. These have a very high perceived value as apart from basic
entertainment, these can also be a means of self expression by the end user. This
explains the success of Entertainment VAS despite the fact that its practical value is
minimal. Entertainment content is dynamic and changes very frequently which keeps
the subscriber’s tastes alive but we feel that unless it is supplemented by innovative
applications like CRBT, the drive will be difficult to sustain. In India, entertainment
VAS is there to stay though we predict a fall in its contribution to the overall VAS
revenue pie in the next 3-4 years. This would happen as other type of services become
more popular and user engagement with entertainment VAS reaches saturation.

60
Perceived & Practical value of Info VAS

Currently infotainment VAS has moderate practical and perceived value. Operators feel
that this is mainly because of not very strenuous effort to promote these services and a
lack of customization for the end-user. Currently very few applications are catering to
subscriber’s needs. Not many efforts are being made to develop the market and create
awareness about these applications. However perceived value will increase in the future
as new utility applications are developed catering to different niche segments; like
location based services.

Perceived & Practical value of mCommerce

Currently transaction based services are in a very nascent stage in India and are
constrained by both lack of awareness and suitable applications. Both practical and
perceived value is low amongst users. One of the main reasons driving low trials is
discomfort with the idea of paying through the mobile. Users are skeptical regarding
transactions on mobile, no stringent policies and measures are in place to instill a sense
of security in the subscriber’s mind. This is acting as a roadblock in the aggressive
focus and investment to increase the perceived security of mobile payments. Currently
there is also a lack of innovative applications which can click with the subscribers.
However it will be initially focused on low value transactions and will gradually
expand. Over the medium-long term operators expect an exponential rise in the
popularity and revenue generated from these services.

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The VAS business model

The mobile VAS market in India has evolved into a complex ecosystem. There are
multiple entities involved in the value chain but our research reveals that it is still not
well defined and lot of overlapping takes place. A single entity performs one or more
roles and several are also focusing on expanding their existing roles.
The main entities involved in VAS value chain are:

62
Content Enablers
Content Portals/Aggregators/Developers:
At the first level existing portals in the Internet space are providing content to end
users. For most of them, mobile data content offers an additional revenues stream, from
a strategic perspective it also offers an opportunity to leverage the traffic to the portal
and generate potential advertising revenues.
Ringtones & wallpapers are two very popular categories where portals like Indiatimes
& Rediff lead. On the next level there are a host of large content aggregators. Most of
these like Mauj & Indiagames offer content directly to the end user through their own
portal and also provide content to mobile operators. They perform the twin functions of
in-house content development & also aggregating from other smaller boutiques.
There are also many small pure development entities, as they do not have the technical
support to host content or to negotiate with operators they prefer to provide it to
aggregators.

Third Party Copy Right Owner

Most of the rich content in mobile VAS is built around Bollywood movies & music.
The copyright for these are held by production houses or rests with individual artistes.
A part of the revenue is shared as fee with the owners for using the copyright material.
Apart from Ringtone & wallpaper development there is also a growing trend of game
development around popular Bollywood movies, a recent example is a popular game
based on the Hindi movie “Don”.

Traditional Media Companies

Following the global trend most traditional media companies are also trying to bring
the feature of interactivity into their media. As we have discussed in the first part, SMS
contests have been a very successful way for TV channels to achieve this. However
using this feature involved revenue sharing with several entities, so to generate cost
efficiencies over the long run, some media houses have expanded and acquired Short
Codes for their own brands. Prominent amongst them are Sony TV, Aaaj Tak & Zee

63
TV. HT Media is a relatively new entrant in this space and has also acquired a short
code.

Sidhaarthaa, ET, (2006) points out that music consumption, especially on mobiles, is
impulse-based. Research shows us that our customers don't just want more music, but
want it to be more accessible and in the least possible time. About eight million Airtel
users enjoy music on their mobiles every month, which will increase with the launch of
this service. The company is expecting 75 million downloads from its database this
year.

Some time back A.R. Rehman's tune for Air Tel was manna and music to the ears.
Today ring back or caller tunes are `must have' with the Generationext, so much so that
you are not considered `in' if you don't sport a ring tone. No matter if you have that hi-
funda gadget of a handset, what really matters is how you are positioned— thanks to
your ring back tune. "It is personification of yourself. It is a representation of your
identity and much like the music that a guest might find playing in your home.

The current modus operandi has been the use of multiple channels like Voice Portal,
IVR-based Hello Tunes service, Airtel Live (WAP portal). The focus has been on
downloads and easy music. We do a thorough research in terms of consumer tastes and
scan chartbusters on various music channels. This helps us in incorporating the latest
music as Hello Tunes and ring tones. (Sidhaarthaa, ET, 2006) We are very nimble-
footed when it comes to tying up with various content providers, music labels and
producers to be able to provide the latest chartbusters to our customers.

As for the players, music has not just become the focal point to capture the Generation
next market. The service providers find the music component as a crucial part of the
Value Added Services. "Voice and data revenues including ring tones and caller tunes
have grown over a period of time accounting for 10 per cent of the revenue. Music is
extremely popular with new users, particularly the youth.

Customers find it easier to accept branded content, as they have a general idea (as well
as a higher expectation) about the type, source and quality of content they are getting

64
for themselves. Airtel Live and Hello Tunes have succeeded partly due to the fact that
they have consistently offered branded content to customers. Branded content on Airtel
Live and Hello Tunes ranges from Sholay, The Mummy to Robbie Williams, Shabd
and Elaan.

On the same token, it is necessary to evaluate the importance of the mobile phone as a
content retailing channel. It is very a important channel, considering the tele-density
across the globe. The mobile phone has the ability to support and process different
types of content. It also has the ability to support the population of increasingly diverse
devices. Next, it allows infrastructure optimization as content can be delivered through
multiple delivery channels, such as SMS, MMS and data network. Finally, it leads to
sophisticated merchandising as well.

The mobile phone began as humble content retailing channel with basic offerings like
logos. Today, it has graduated to a full-fledged multimedia device that plays MP3 files
and can show TV and movies. Obviously, this presents a huge opportunity for the
content community, and as more and more handsets come within reach of a larger
stratum of people, it will present an even more lucrative business opportunity for
content providers. For example, the music industry in India has realized the significant
revenue opportunities from ring tones, Hello Tunes, etc. This non-physical format of
music sales will represent a significant percentage of the total music sales in the years
to come.

The other significant changes occurring in the mobile content arena include varying
charging patterns, creation of logical content linkages and recommendation engines.
The multimedia capable handsets are luring more content providers. Handset
manufacturers are also getting into the content creation role by partnering with content
aggregators and generating the acceptability of their handsets. This also helps them in
highlighting the special features on their handsets.

Besides, more movies, music albums and sports events are making the mobile content
arena as a part of their marketing and distribution plans. This is a positive sign, and
shows that this community now considers the mobile device as a serious business

65
opportunity, and is working with operators to offer content through properties like
Airtel Live and Hello Tunes. The biggest change is that consumers have now begun to
expect more than a vanilla voice service from their mobiles. The mobile experience
must inform, entertain, allow for personalization, etc., in order for consumers to stay
loyal with an operator.

Airtel has a content team that runs a content developer program, and is responsible for
offering content to its customers through properties like Airtel Live and Hello Tunes.
This team is entrusted with the responsibility of managing the content and alliances
chain end-to-end. The activity starts from scouting for content, to acquiring and testing
content, as well as co-marketing of content across various media properties.

The operator's strategy is to have very strong content aggregators and partners who will
continue to develop world-class content/apps. Therefore, it is very important for Airtel
to play its role in ensuring a fair and transparent content value chain. However, there is
still a long way to go before operators are able to develop efficient content value
chains.

The certain challenges are involved with the product management, marketing and
financial aspects associated with the delivery of premium content services. Within
product management, operators need to support innovative ways of charging and
attaching quality of service (QoS) with delivery. Within marketing, they need to
continue creating awareness in the market, besides taking care of branding and the
competition. Within finance, the major challenges include proper accounting, fraud
control and settlement with content providers.

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 OBJECTIVE OF THE STUDY
 To study the concept of VAS and the various services provided by Pinnacle
Teleservices Pvt. Limited.

 To analyze the revenue models for VAS for the services of Pinnacle

 To study the consumer behavior in choosing a particular VAS.

 To identify the future of VAS in the Indian Telecom Industry.

67
 RESEARCH METHODOLOGY
Research Design

A research design is purely and simply the framework or plan for a study that
guides the collection and analysis of data. The survey research was used in this
project, because consumer’s feedback was necessary for obtaining the data.

Data Sources

Primary data was collected by the questionnaire based market survey.

Secondary data was obtained from journals, magazines, newspapers, books
and of course the Internet.

Research Instrument

For doing the survey research, structured questionnaire with both open-ended
and closed-ended questions was used.

Mode of Survey

The mode of survey was personal interview with the respondents during the
filling up of the questionnaires.

Sampling

The sampling used for this study was probability sampling. Since the study is
only meant for certain specific categories within the total population (cell phone
users, in this case), a stratified random sample was used.

Sample Size

A sample size of 50 respondents was used for the study – 50 Customers and 50
Corporates.

Sample Unit

This study was basically an opinion survey of the customers and corporates in
Delhi & NCR who are cell-phone users – regarding their views on the cellular
service providers.

Place of Study

Delhi & NCR

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 LIMITATIONS
• Time was the biggest constraint as many times it was not possible to meet senior
officials to collect such information. But all efforts were made to get all the relevant
information required for this study.

• There may be biases on the part of the respondents while providing the information.
This will not directly affect the study but will have some impact on the conclusions.

• Since the sample was of random nature, sampling error, if any could not be
avoided.

• Certain unavoidable errors will come into the study like non-response error, hasty
responses etc.

• Since the research was conducted in Delhi & NCR the results cannot be generalized
for other parts of the country.

69
 SECONDARY RESEARCH FINDINGS
VAS
When a network operators offers services using:

• existing customer base

• existing infrastructure

They add more value to the relationship between consumer and operator. Hence, these
services are known as Value Added Services.
Broad Classification of VAS offerings:

• Messaging – short codes, MMS, email etc. (Except P2P SMS)

• Music – mono tones, true tones, poly tones, mp3 tones, full songs, CRBT etc.

• Imagery – wallpapers, animations, screensavers, videos etc.

• Games – Branded, Unbranded

• Text based – stock quotes, news etc.

Offered using platforms such as:

• WAP/GPRS

• CDMA data

• Voice

• Web

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Process:
GSM Operators

• Subscribe to WAP access

• Access WAP portal which hosts the content

• Link to 3rd party WAP portals

• Pay for Airtime used (per Kb)

• Pay for content downloaded

• Pay for subscription of Rs.30 per month (Avg)

Reliance

• Need to have “R World enabled” handset

• Access R World portal which hosts the content

• No link to fetch 3rd party content (very walled garden)

• No airtime cost

• Pay only for content downloaded

• J2ME, Brew, WAP, Browser – all 4.

Difference in contents of GSM and CDMA Operators

GSM Operators

• Bollywood – Images, Videos, Music

• Hollywood

• Cricket

• Mega Games

• Stock Quotes, Exam Results etc. only on SMS

Reliance

• Bollywood

• Hollywood

• Cricket

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 • Mobile Banking, Exam Results, Guides, Railway Tickets etc. – with UI and no
airtime charge.
Business Method
For Content provider/Developer
GSM

• Contact operator

• Operator will mostly ask you to go through to an existing content provider

(why)

• Go to existing content provider and provide content

• Content provider will evaluate and put onto the WAP portal

Reliance

• Mostly the same

• Or DADP (applications/games only)

REVENUE SHARING IN VAS (EXCEPT P2P SMS)

Aggregator/Developer 25%
Operator 60%
Copyright Owner 15%

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 Chart 5: Revenue Sharing Model

15%
25%

60%

Aggregator/developer Operator Copyright Owner

Source: ATPL
Operators typically retain the biggest chunk of revenues. Copyright fee given to
content developer/owner comes from the margin of Content Aggregator or Operator or
both. Revenue sharing arrangement is typically 60% for the operator, 25% for the
aggregator and 15% for the owner. This model is significantly different from evolved
market like China where the share of operator is typically 20-30% in the entire chain
and aggregators & owners keep a much higher share.

73
 REVENUE SHARING IN ENTERPRISE SOLUTION SERVICES

Short Code Owner 30%

Operator 70%

Chart 6: Revenue Sharing in Enterprise Solutions

30%

70%

Short Code Owner Operator

Source: ATPL
Enterprise service providers are increasingly using VAS as a marketing and
customer development tool. It is being increasingly used to connect to users through the
mobility platform. E.g. “Tracking of DHL courier through SMS- Send POD number as
DHL-XYZ to 3456” The end user requests for this service by sending an SMS, this is
routed through the mobile service operator to the Short code service provider. The short
code provider collects all the information on the server and passes it to the client (E.g.
DHL). The per unit revenue accrual in this VAS is low (Rs 3/SMS) as compared to
other types of VAS, but it offers two streams of revenues as both the end-user & the
enterprise service provider pay for the VAS. We expect this to grow significantly as
enterprises look beyond mass media for solutions to reach out to their customers. It is
also cost effective for the enterprise as it serves both as a data base development
initiative and also leads to cost savings as queries can be handled through automated
response

74
 OPERATION DETAILS

S
Suppli
I
Inpu
P
Proce
O
Outp
C
Custom
er t ss ut er
Increase
Databa Promotional SMS is Increase
VAS Databa Promotional SMS is in VAS &
VAS se of sent to the in VAS &
Team se of sent to the SM
Team Non- Customer SM
Non- Customer penetratio TEAM
Users penetratio TEAM
Service Users Customer responds n & % of
Service Customer responds n & % of
Marketin Promotio to the Promo SMS & non-users
Marketin Promotio to the Promo SMS & non-users
g Team nal SMS dials 678 converted.
g Team nal SMS dials 678 converted.
Increase
Increase
Browse through in
Browse through in
song list revenue
song list revenue
Increase
Increase
Select song and in
Select song and in
subscribe to the customer
subscribe to the customer
service delight
service delight

75
 SURVEY RESULTS
Type of Organization:

Trading Service Manufacturing Others

8 21 12 9

Others Trading
18% 16%

Manufacturing
24%
Service
42%

Interpretation: Respondents were chosen from different sectors to get the complete
view on the role of PR. Total numbers of respondents were 50.

76
1. How does your handle the PR activities?

In-house Outside Agency Both

17 19 14

Both
28% In-house
34%

Outside
Agency
38%

Interpretation: 28% respondents said that the PR activities were carried out using both
in-house and outside agency. While 38% respondents said that PR activities were
handled using outside agency while 34% respondents said it was handled by in-house
team.

77
2. What are the key objectives of PR activities?

To gather public To gain goodwill To Handle crisis To gauge public

opinion attitude

19 11 9 11

To gauge
public attitude
22% To gather
public opinion
38%

To Handle
crisis
18%
To gain
goodwill
22%

Interpretation: Respondents cited the above reasons for PR activities, PR depends on

the need of the Industry thus PR is mainly industry specific.

78
3. What is the most preferred media for carrying out PR activities?

Written Oral Visual Audio-Visual

Communication communication Communication Communication

9 4 8 29

Written
Communication
18% Oral
communication
8%

Audio-Visual
Communication Visual
58% Communication
16%

79
4. What are the media used by your organization for PR activities

In-House Press TV/Documentary Radio Others

Journal/newsletters

15 21 3 6 5

In-House
Journal/newslett
Others
ers
10%
Radio 30%
12%

TV/Documentary
Press
6%
42%

80
5. How are the PR budgets decided?

As a percentage of Sales On the basis of task

37 13

On the basis of
task
26%

As a percentage
of Sales
74%

81
6. Do you agree that PR has become a integral part of management function?

Yes No

50 0

50
50
45
40
35
30
25
20
15
10
5 0
0
Yes No

82
7. Is there a formal process for evaluation of PR function in your organization?

Yes No

17 33

Yes
34%

No
66%

83
8. “PR activities are more relevant in Social marketing? “

Strongly agree Agree Disagree Strongly Disagree

4 7 27 12

Strongly Strongly agree

Disagree 8%
24% Agree
14%

Disagree
54%

84
9. In which situation is PR activity most relevant?

Promotional Opportunity 7

Competitive Challenge 3

Controversy 6

Adverse Publicity 9

Catastrophe 0

Ineffective Communication 0

New Image 16

Crisis 7

Rumour 2

4% 14%
14%
6%

12%

32%
18%
0%
0%

Promotional Opportunity Competitive Challenge Controversy

Adverse Publicity Catastrophe Ineffective Communication
New Image Crisis Rumour

85
10. Have you heard about Bulk Messaging Services?

Yes No

50 0

50
50
45
40
35
30
25
20
15
10
5 0
0
Yes No

All the respondents were aware of Bulk Messaging Services.

86
11. Do you agree that Bulk Messaging is Effective and cost-effective?

Yes No

50 0

50
50
45
40
35
30
25
20
15
10
5 0
0
Yes No

All the respondents agree that Bulk Messaging is Effective and cost-effective

87
12. Do you agree whether Indian conditions are conducive for Bulk Messaging?

Yes No

50 0

50
50
45
40
35
30
25
20
15
10
5 0
0
Yes No

All the respondents agreed that Indian conditions are conducive for Bulk Messaging.

88
KEY FINDINGS

 PR activities have become an integral part of all most of the organizations.

 PR activities are handled using in-house or outside agency based on the need.

 PR activities are linked to the type of organization and the purpose is defined as per
the need.

 PR budgets are usually high and lined to the expected end result.

89
 CUSTOMER SURVEY TABULATION

The aim of this question was to identify the age group which uses the value added
services the most. On the basis of the age of the respondents one can identify the age
group that maximizes the sales of value added services.

Age Respondents
15 to 20 13
20 to 25 21
25 to 30 25
30 to 35 9
35 to 40 6
40 to 45 9
45 to 50 6
50 to 55 3
55 to 60 1
60 & Above 1
Missing 6
Total 100

Chart 7: Age Group of Respondents

1%
1%
6% 13%
3%
6%

9% 21%

6%

9%
25%

15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 40 to 45
45 to 50 50 to 55 55 to 60 60 & Above Missing

The respondents vary in age from 17 years to 79 years. The average age of the
respondents is 24 years and the age groups 15 to 30 are found to be the maximum,

90
60%, in the sample. While the single most dominant group in the sample are the
respondents in the age group of 25 to 30.

The aim of this question was to identify the segment across which the value added
services are popular.

Occupation Respondents
Service 32
Business 22
Student 25
Housewife 1
Professional 14
Missing 6
Total 100

Chart 8: Occupation of Respondents

6%
14%
32%
1%

25%
22%

Service Business Student Housewife Professional Missing

The maximum respondents are engaged in Service as an occupation (32%), followed by

Students (25%).

91
The respondents educational background relates to his choice of value added services,
language preference and usage pattern, thus this question was asked.

Education Respondents
Under Graduate 18
Graduate 30
Post Graduate 18
Professional 27
Missing 7
Total 100

Chart 9: Education of Respondents

7% 18%

27%

30%
18%

Under Graduate Graduate Post Graduate Professional Missing

Interpretation: The respondents were from different educational brand, 18%

respondents were under-graduates, 30% respondents were graduates, 18% respondents
were post-graduate and 27% were professionals.

92
This question was asked to gauge the popularity of value added services amongst the
pre-paid and post-paid users.

Type of Connection Respondents

Pre-paid 39
Post-paid 46
Missing 15
Total 100

Chart 10: Type of Mobile Connection with Respondents

15%
39%

46%

Prepaid Postpaid Missing

Interpretation: Most of the respondents (46%) had post-paid connection and 46%
respondents had prepaid connection.

93
This question aimed at identifying whether service technology plays a significant role
in selection of value added services.

Type of Connection Respondents

GSM 61
CDMA 39

Chart 11: Type of Mobile Service with Respondents

13%

53%
34%

GSM CDMA Missing

Interpretation: Most of respondents (61%) were using GSM handsets and 39%
respondents were using CDMA handsets.

94
The question was asked to correlate the demand of value added services with the social
strata represented by the price of handsets used by respondents.

Type Of Connection Respondents

Below 2000 29
2001-5000 36
5001-10000 17
10001-15000 7
15001 & Above 11
Total 100

Chart 12: Price of Handsets used by respondents

11%
7% 29%

17%

36%

Below 2000 2001-5000 5001-10000 10001-15000 15001 & Above

Interpretation: Most of the respondents (65%) were using handsets in the price range
below 5000 and others (35%) were using handsets above 5000.

95
The question was asked to find a usage pattern of telecom users for calling and values
added services.

Usage Frequency Total Calling VAS

Most Frequent 68 20
Occasionally 14 12
Rarely 3 10
Never 0 39
Missing 15 19
Total 100 100

Chart 13: Usage Pattern and purpose

70 68
60
50
40 39
30 20
20 12 19
14 10
10 15
0 3
0
Most Frequent

Occasionally

Rarely

Never

Missing

Total Calling VAS

Interpretation: The subscription of VAS was low as compared to the Total calling but
as far as actual usage is concerned the VAS subscription is substantial for increase the
ARPU of operators.

96
The question was asked to identify the factors influencing the selection of value added
services.

Factors 5 4 3 2 1
Price 63 24 6 1 6
Features 21 31 27 17 4
Availability 21 6 18 11 44
Quality of Service 3 5 4 11 77
Perceived Benefit 68 24 4 3 1

Chart 14: Factors Influencing the selection of VAS

6
5
5
4
4
3
3
2
2
1
1

0
Price Features Availability Quality of Perceived
Service Benefit

Interpretation: The most important factor for selection of Value Added services was
perceived benefits followed by the price of the service, features, availability and quality
of services.

97
The question was asked to determine the most popular value added services.

VAS Rank
Contests 6
Caller Tunes 5
MMS 1
Ringtones 4
Wallpapers 3
Others 2

Chart 15: Most Preferred VAS

7
6
5
4
3
2
1
0
Contests Caller MMS Ringtones Wallpapers Others
Tunes

Interpretation: The most preferred VAS were contests, followed by caller tunes, ring
tones, wallpapers in that order.

98
The question was asked to determine the satisfaction levels of users with the pricing of
value added services.

Satisfaction Level Respondents

Very satisfied 12
Satisfied 38
Neutral 6
Dissatisfied 27
Very dissatisfied 17

Chart 16: Satisfaction Level of Respondents with prices

of VAS

17% 12%

27% 38%

6%

Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied

Interpretation: Most of the respondents (50%) were satisfied with the price of VAS
while 44% respondents were not satisfied with the prices of VAS.

99
 RESEARCH ANALYSIS

Correlation of Usage frequency for calling with age of the respondents

Usage Frequency Most

for Calling/Age Frequent Occasionally Rarely Never Missing
15 to 20 7 3 1 0 2
20 to 25 10 3 0 0 8
25 to 30 21 0 1 0 3
30 to 35 7 2 0 0 0
35 to 40 3 1 0 0 2
40 to 45 7 2 0 0 0
45 to 50 6 0 0 0 0
50 to 55 2 1 0 0 0
55 to 60 1 0 0 0 0
60 & Above 1 0 0 0 0
Missing 3 2 1 0 0

Chart 17: Usage Frequency of calling/Age

25

20

15
10

0
e
20

25

35

45

50

60
30

40

55

g
ov

in
to

to

to

to

to
to

to

to

to

iss
Ab
15

20

25

30

35

40

45

50

55

M
&
60

Most Frequent Occasionally Rarely

Never Missing

100
Correlation of Usage frequency for calling with age of the respondents

Usage Frequency Most

for VAS/Age Frequent Occasionally Rarely Never Missing
15 to 20 0 2 2 5 4
20 to 25 10 3 2 4 2
25 to 30 10 2 1 3 9
30 to 35 0 3 1 1 4
35 to 40 0 0 1 5 0
40 to 45 0 1 1 7 0
45 to 50 0 1 1 4 0
50 to 55 0 0 0 3 0
55 to 60 0 0 0 1 0
60 & Above 0 0 0 1 0
Missing 0 0 1 5 0

Chart 18: Usage frequency of VAS/Age

12
10
8
6
4
2
0
50

55

e
20

25

30

35

40

45

60

g
ov

in
to

to

to

to

to

to
to

to

to

iss
Ab
50
15

20

25

30

35

40

45

55

M
&
60

Most Frequent Occasionally Rarely

Never Missing

101
Consolidated Usage Frequency – Calling & VAS Versus Age

Chart 19: Usage Frequency - Calling & VAS verus Age

35
30
25
20
15
10
5
0
-5 15 to 25 to 35 to 45 to 55 to Missing
20 30 40 50 60

Calling VAS Linear (VAS) Linear (Calling)

The trend line clearly shows that the usage frequency decreases with Age.

102
Correlation of Usage frequency for calling with occupation of the respondents

Usage Frequency for Most

calling/Occupation Frequent Occasionally Rarely Never Missing
Service 29 2 0 1
Business 4 7 3 0 8
Student 23 2 0 0 0
Housewife 1 0 0 0 0
Professional 11 3 0 0 0
Missing 0 0 0 0 6

Chart 20: Usage Frequency for calling/Occupation

35
30
25
20
15
10
5
0
g
t

l
ss
e

ife

na
en

in
ic

ew

i ss
io
ud
rv

in

ss
Se

M
St

us
Bu

fe
Ho

o
Pr

Most Frequent Occasionally

Rarely Never
Missing Linear (Most Frequent)
Linear (Occasionally) Linear (Rarely)

The trend line clearly shows that Usage frequency for calling decreases with
occupation of the respondents

103
Correlation of Usage frequency for VAS with occupation of the respondents

Usage Frequency for Most

VAS/Occupation Frequent Occasionally Rarely Never Missing
Service 0 1 1 28 2
Business 0 4 3 11 4
Student 11 0 6 0 8
Housewife 1 0 0 0 0
Professional 8 6 0 0 0
Missing 0 1 0 0 5

Chart 21: Usage Frequency for VAS/Occupation

30
25
20
15
10
5
0
ng
al
t
ss
e

ife
en
ic

on
ne

si
w
ud
rv

is
si
se
si
Se

M
St

es
Bu

ou

of
H

Pr

Most Frequent Occasionally

Rarely Never
Missing Linear (Most Frequent)
Linear (Occasionally) Linear (Rarely)

The trend line clearly shows that Usage frequency for VAS slightly increases with
occupation of the respondents.

104
Correlation of Usage frequency for calling with education of the respondents
Usage Frequency for Most
Calling/Education Frequent Occasionally Rarely Never Missing
Under Graduate 17 1 0 0 0
Graduate 27 3 0 0 0
Post Graduate 4 1 1 0 12
Professional 19 8 0 0 0
Missing 1 1 2 0 3

Chart 22: Usage Frequency for Calling/Education

30

25

20

15

10

0
Under Graduate Post Graduate Professional Missing
Graduate

Most Frequent Occasionally

Rarely Never
Missing Linear (Most Frequent)
Linear (Occasionally) Linear (Rarely)

The trend line shows that Usage frequency for calling sharply decreases with education
of the respondents.

105
Correlation of Usage frequency for VAS with education of the respondents

Usage Frequency of Most

VAS/Education Frequent Occasionally Rarely Never Missing
Under Graduate 15 1 0 0 2
Graduate 2 7 2 18 1
Post Graduate 0 0 7 11 0
Professional 3 4 1 10 9
Missing 0 0 0 0 7

Chart 23: Usage Frequency for VAS/Education

20
18
16
14
12
10
8
6
4
2
0
Under Graduate Post Graduate Professional Missing
Graduate

Most Frequent Occasionally

Rarely Never
Missing Linear (Most Frequent)
Linear (Occasionally) Linear (Rarely)

The trend line shows that the Usage frequency for VAS sharply decreases with
education of the respondents.

106
 KEY FINDINGS

 All the respondents surveyed were using Value added services in some form or the
other i.e. sms, caller line identification, missed call alerts, participation in contests,
etc.
 The age groups of 18-30 are the highest users of value added services.
 The awareness level of value added services increases with education level of
respondents. Some services like caller tunes and contests are popular across all the
respondents.
 Value added services directed towards entertainment are most popular amongst
students and those directed towards information like news updates, banking etc are
more popular amongst professionals. Contests are more popular in house wives.
 Most of the respondents were concerned about the perceived value of the value
added services and the prices became secondary as compared to the perceived
value.
 The services were mostly popular with the respondents using costly handsets as
compared people using low-end handsets.
 The Value added services like participation in contests, opinion poll through
messages and gauging contestants through sms voting have become a bridge
between the new media and the viewers.

107
 RECOMMENDATIONS

 Marketing activities should specifically directed towards the age groups of 18-30.
 Special focus should be given to increasing the awareness level of value added
services to under-graduates and graduates.
 Marketing and advertising should address consumer concerns about perceived
benefits because higher the perceived benefits, higher the usage.
 Pinnacle technologies should come up with innovative and engaging contests and
competitions that complement the television.

108
 CONCLUSIONS

According to the Cellular Operators Association of India (COAI), the mobile

subscriber base in GSM and CDMA has grown from 88.48 million in January 2006 to
93 million (GSM 65.2 million, CDMA 27.82 million) in February. But behind the
scenes all the telecom operators are struggling to increase their average revenue per
user.
Concept of VAS: Rising demand for handsets has led operators to offer services other
than voice calls. Thus, the content or value-added services (VAS) market comprising
music, wallpapers, ringtones and gaming is growing rapidly. With the number of
mobile users growing, there is a growing opportunity for content providers. In India,
wireless operators, music and film companies, comics content developers, game
developers and musicians are all entering the mobile content market for ringtones,
gaming, mobile imagery and streaming audio and video. The increased interest in and
demand for personal expression applications across mobile users is driving the
applications and content market. Entertainment and content applications offered by
content publishers, aggregators and operators are increasingly central to the revenue
and competitive positioning.

VAS Business Models: There are three types of business models functioning in the
Indian market. There are companies that are experts only in providing short codes
which are the four-digit numbers that you SMS. These providers basically need to
integrate with the media house’s system and keep track of the number of SMS
messages received, and also the billing and collection. The next is a direct relationship
with the service operators; content providers have exclusive tie-ups with operators like
Airtel or Reliance. The third working model is with application service providers who
are into voice-based services. Of these models, when it comes to sharing revenue, the
content providers find it profitable to work directly with a media house rather than with
service operators for the simple reason that service operators take a huge chunk of the
revenues.

109
Consumer behaviour: The consumer behaviour for selecting VAS as identified
through primary research is related to the age, occupation and education of the
consumers. Price has negligible impact in selection of VAS services as long as
consumer sees perceived benefits.

Hurdles: The content market is big in India; there are several hurdles in its path. These
range from socio-cultural settings to technology to business sense. This includes
creation of content in local languages across all mobile circles in India. Other hurdles
are related to handsets and standardisation of technology platforms. A significant
amount of time has to be spent on making a product compatible with various handsets.

Future of VAS: Currently, the number of mobile phone subscribers in India is rising at
an average of 6 million each month. India added 6.57 million mobile subscribers
(including GSM and CDMA) in May 2007, taking the total number of mobile
subscribers to 178 million and this represents a huge opprtunity for content providers.

110
 BIBLIOGRAPHY
• Pinnacle Teleservices Pvt. Ltd. :
http://203.129.203.243/new/service.php

• Singh, H. V., A. Soni, and R. Kathuria (2005), “Telecom Policy Reform

in India”

• Babbar Geetanjali (2006), Mobile Music Piracy: Crippling the VAS

Industry, September 21, 2006

• Prashant Pravin (2006), Cellular Services: Triple Play: Growth,

Expansion, and Profit , Financial Express, July 4, 2005

 Sidhaarthaa (2007) Global mobile content and service market to top USD 150
billion by 2011 http://www.wirelessduniya.com/category/mobile-music/ February
5th, 2007

 Manoj Gairola (2006) Music's beat; cell tones spew cash , Times News Network,
April 19, 2006

 Sethi Vishal (2006), Telecom Sector in India: Law, Policy & Procedure, JBA
Publishers, New Delhi

111
 ANNEXURE
SURVEY QUESTIONNAIRE

The purpose of this study is to evaluate the impact of Value Added Services on the
profitability of Telecom Service Provider. This study is being conducted as a part of
thesis of the Masters Course in Business Administration and is for purely academic
purposes only.

1. What is the type of Mobile Connection do you use?

Prepaid  Post Paid 

2. Which type of technology do you use?

GSM  CDMA  Not Aware 

3. What is the price of handset that you use?

Price of handset
Below 2000 
2001-5000 
5001-10000 
10001-15000 
15001 & Above 

4. What is your usage pattern?

Value Added
Usage Frequency Calling Services
Most Frequently ( > 20 calls/day)  
Occasionally (10-20 calls/day)  
Rarely (5-10 calls/day)  
Never (0-5 calls/day)  
Missing  

112
5. What are the Value Added Services that you use?
Services 5 4 3 2 1
Contests     
Caller Tunes     
MMS     
Ringtones     
Wallpapers     
Others     

6. What are the factors influencing the selection of Value Added Services?
Factors 5 4 3 2 1
Price     
Features     
Availability     
Quality of Service     
Perceived Benefit     

7. Are you satisfied with the pricing of VAS?

Satisfaction Level 
Very satisfied 
Satisfied 
Neutral 
Dissatisfied 
Very dissatisfied 

Please tell us something about yourself

Name__________________
Age_____ years
Occupation:

113
Service  Business  Student  Housewife  Professional 

Education:

Under  Graduate  Post  Professional 

Graduate Graduate

Thank You

114