Evolution of Telecom In

India
Number
portability was
ILD services was
BSNL was proposed
Independent opened to Intra-circle
established (pending) Number
Private regulator, competition merger
by DoT Calling Party portabili
players were TRAI, was guidelines were
Attempted
Pays (CPP) was ty
allowed in established Go-ahead to establishedto boost
implemented approve
Value Added the CDMA Rural d
Services technology telephony
1999 2007
1994 2002 2003 2004 2005
INDIA

1992 2000 Internet Unified 2006 2009

1997
telephony Access
initiated Licensing Broadband
(UASL) policy 2004
National was
NTP-99 led to Reduction regime was FDI limit was
Telecom Reference formulated—
migration from of licence introduced increased
Policy (NTP) Interconnec targeting 20
high-cost fixed fees from 49 to 74
was t order was million
license fee to low- percent
formulated issued subscribers
cost revenue Decision on 3G
sharing regime by 2010 services
(awaited)

Department of Telecommunication (DoT) is the main body

formulating laws and various regulations for the Indian telecom
industry.
ILD – International Long Distance
 Changing
Demographics
Demand for VAS &
Broadband services Among
Youth

28 % Urban Population

Rapid Urbanization
Source: Mckinsey Report
Rising Income level
 Technologies
CDMA – Already there are
big players in this
segment Reliance ,
Tata

3G – Value added services

potential still to be
tapped fully

2G/3G – GSM Currently

commands 70% of
mobile subscribers in
India
 • Pradeep (09020242026)
• Govindrajan (09020242049)
• Pritam Bhattacharya
(09020242050)
 Vision 2010
• By 2010 Airtel will be the most
admired brand in India:
– Loved by more customers
– Targeted by top talent
– Benchmarked by more businesses
 Vision 2020
• To build India's finest business
conglomerate by 2020
• Supporting education of
underprivileged children through
Bharti Foundation
• Strategic Intent:
– To create a conglomerate of the future by
bringing about “Big Transformations
through Brave Actions.”
 Mission
• “ We at Airtel always think in fresh
and innovative ways about the needs
of our customers and how we want
them to feel. We deliver what we
promise and go out of our way to
delight the customer with a little bit
more”
 VISION
 

“We will leverage our strengths to execute complex global-scale

projects to facilitate leading-edge information and communication
services affordable to all individual consumers and businesses in
India.

We will offer unparalleled value to create customer delight and

enhance business productivity.

We will also generate value for our capabilities beyond Indian

borders and enable millions of India's knowledge workers to deliver
their services globally.”
 MISSION
To attain global best practices and become a world-class
communication service provider-guided by its purpose to move
towards greater degree of sophistication and maturity.

To consistently achieve high growth with the highest levels of

productivity.

To be a technology driven, efficient and financially sound

organisation.

To contribute towards community development and nation building.

To encourage ideas, talents and value systems.

 Core Values of AirTel
• Performance

• Dynamism

• Leadership
 Core Values of Reliance

• Customer first

• Operate with honesty and integrity

• Treat every individual with dignity and respect

 TARGETING
• Elite
• Up market professionals
• Entrepreneur with business plans
• Low income mass category
• Youth
• Women and senior citizens by post
paid connection
 TARGETING
• Lower-middle, Middle & Upper class
• Rural areas
• Entrepreneur with business plans
• Low income mass category
• Women and senior citizens by post paid connection
 POSITIONING
• “Power to keep in touch”
• “Touch tomorrow”
• “Live every moment”
• “Express yourself”
TIME LINE
 “Power to keep in touch”
• Positioned in premium category aimed at elite
class of society
• Convey power of instant communication
• Perception of aspirational and lifestyle brand
• Airtel decided that the brand should always
connote leadership–be it in network,
innovations, offerings, services
• Sponsored games like Golf
 “Touch tomorrow”
• New campaign launched to facilitate entry into
new markets
• Started to capture mass market
• A new logo for Airtel- Red , black and white colors
with ‘Airtel’ enwrapped in an eclipse.
• Logo indicated core value of the brand: leadership,
performance and dynamism
 “Live every moment”
• Launched to capture the imagination
of the customer
• Projects a persons desire to
spontaneously communicate through
words, emotions, sights, sounds,
thoughts and actions over
boundaries, distances and
geographies
 “Express Yourself”
• In 2003, Airtel repositioned its brand
with “Express yourself” campaign
• Changed its logo to give more
energetic and younger look
• Highlight capability of Airtel’s
performance and network coverage
• Launched in regional language
TIME LINE
First Mover Advantage
First Mover Advantage
 RURAL STRATEGIES
• Airtel follows “Match-box strategy”
• The firm expands regularly in Bihar,
piggybacking on 300 distributors and more
than 50,000 retail outlets selling Airtel
prepaid cards
• Covers over 4,00,000 villages and hopes to
expand to other 1,00,000 by 2009
 RURAL STRATEGIES

• Reliance follows “Post-card strategy”

• Covers over 4,50,000 villages and
hopes to expand to other 1,00,000
by 2015
 AIRTEL ADVERTISEMENT
• Airtel basically uses two appeal to
connect to the users
– Emotional
– Humorous

• Total advertising budget of Airtel is

Rs. 150 crore
 RELIANCE ADVERTISEMENT

• Reliance basically uses two appeal to

connect to the users
― Patriotism
― Emotions

• Total advertising budget of Reliance is Rs.

130 crore
The Ad diagnostics
score helps to
understand how far the
Ad has been able to
break the clutter
 INTERNET ADVERTISING
• Massive advertising through
– Google AdSense
– BidVertisers
 INTERNET ADVERTISING

assive advertising through

― Google AdSense
― Microsoft adCenter
 PUBLICITY AND EVENTS
Sponsored events
• Delhi half marathon
• Delhi golf tournament
Sponsored TV shows
• Big Boss
• KBC
• Indian Idol
 PUBLICITY AND EVENTS

ponsored events
― IPL

― World Cup Cricket

OUTCOME OF THE
CAMPAIGN
 SWOT
Strengths Weakness
• Largest Telecom Player in • Outsourcing of Core Systems

India - ~80Mn, 22.6% • Network Coverage (earlier)

• Market Leader
• Strong Leadership – Sunil
Bharti Mittal
• Recognized Globally
• Pan India Presence
• Strong Financials
• Strong Brand Image –
Marketing Team
 SWOT
Opportunities Threats
• Bharti Infratel – Cutting • India centric – Major revenues

Down cost in Rural area from India

• Falling ARPU & AMOU

• Match Box Strategy – Scale
• Intense Competition &
of Penetration
Shortage of Bandwidth
• Current Tele-Density – 30.6
• New Players coming in India
is still low among
• Uncertain Economic conditions
developing countries
• Low Broadband Penetration,
Rural Telephoney
 SWOT
Strength Weakness

 Low Entry Cost  Branding Image

 Commission Structure  Distribution problem

 Fast Activation  Limited product

Process portfolio- Only Mobile

 Network  Lack of Competitive

 Connectivity Strength

 Data GPRS  Limited Budget

 SWOT
Opportunity Threat
 Preference of GSM over  Political destabilization.

CDMA  New Entrants

 New Specialist application  IT Development

 Rural Telephony  Market Demand

 New Market, Vertical,

Horizontal
 Competitors`

Vulnerabilities
AIRTEL STRATEGY
 Airtel – Strategy
MANTRA : Focus on Core Competencies
and Outsource the rest!
 Strategy
• Partner with leading players in
telecommunication across the globe.
• Managed to work with the best of
domain specialists globally and
emerge as a world class entity.
• Operational contracts with marquee
vendors and strategic investors
ranging from private equity investors
to global telecom giants.
 Outsourcing deals in 2004
• Ericsson was given the mandate to
provide, manage and maintain the
equipment as well as provide quality
assurance in Airtel‘s then 13 mobile
circles.
• IBM was given the mandate to
handle the back office requirements
of Airtel’s presence in India
RELIANCE STRATEGY
 Reliance – Strategy
MANTRA : To reduce the cost to the consumer, thus focusing
on a market driven by volume!
 Strategy

ustomer Generation - Tapping in to Internal

Resources

hirubhai Ambani Entrepreneurship Programme – A

New Way to Market

dvertising – Educating Masses and Evoking Passions

FUTURE STRATEGIES
 Future Strategies
• Translate its expertise in Indian markets to
other emerging economies.
• This could call for acquisitions globally.
• Technology leadership is a must – Airtel
must ensure that its reliance on GSM
technology does not render it obsolete.
• Indian market inspite of being the worlds
largest is still not matured. Opportunities
abound in the hinterland which must be
exploited.
FUTURE STRATEGIES
 Future Strategy

n enterprise Netway revolution will bring the

possibility to provide broadbandexperience to every
desktop

A convergence revolution will provide high-speed

networks to millions of homes
Road Map – Growth Path

VPN &
VoIP

WiMAX

3G

2G/2.5G