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A Report on 7Ps of Marketing Mix & Impact of Technology In TELECOMMUNICATION SECTOR

By: Debanjan Chakraborty ( roll no :09 ) Rajib Dutta ( roll no :12 ) Soumava Pal ( roll no :20 ) Upasak Bhattacharyya ( roll no :28 ) MBA IN FINANCE SEMESTER :02

Contents :

What is Telecommunication Ancient systems & Design technology What is the marketing mix What is the telecommunication s Marketing Mix Product Price Place Promotion People Process Physical Evidence 5. BCG Matrix Representation of telecom products 6. Impact of Technology 7. Growth prospects
1. 2. 3. 4.

Telecommunication is communication at a distance by technological means, particularly means based on electrical signals or electromagnetic waves. Early communication technologies based on visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs are sometimes considered to be forms of telecommunication. Other examples of pre-modern "telecommunication" include audio messages such as coded drumbeats, lung-blown horns, and loud whistles. Electrical and electromagnetic telecommunication technologies include telegraph, telephone, and teleprinter, radio, microwave transmission, fiber optics, communications satellites and the Internet. A revolution in wireless telecommunications began in the first decade of the 1900s with pioneering developments in radio communications by Nikola Tesla and Guglielmo Marconi. Marconi won the Nobel Prize in Physics in 1909 for his efforts. Other highly notable pioneering inventors and developers in the field of electrical and electronic telecommunications include Charles Wheatstone and Samuel Morse (telegraph), Alexander Graham Bell (telephone), Edwin Armstrong, and Lee de Forest (radio), as well as John Logie Baird and Philo Farnsworth (television). The world's effective capacity to exchange information through two-way telecommunication networks grew from 281 petabytes of (optimally compressed) information in 1986, to 471 petabytes in 1993, to 2.2 (optimally compressed) exabytes in 2000, and to 65 (optimally compressed) Exabytes in 2007. This is the informational equivalent of two newspaper pages per person per day in 1986, and six entire newspapers per person per day by 2007. [8] Given this growth, telecommunications play an increasingly important role in the world economy and the global telecommunications industry was about a $4.7 trillion sector in 2012. The service revenue of the global telecommunications industry was estimated to be $1.5 trillion in 2010, corresponding to 2.4% of the worlds gross domestic product (GDP). Ancient systems Greek hydraulic semaphore systems were used as early as the 4th century BC. The hydraulic semaphores, which worked with water filled vessels and visual signals, functioned as optical telegraphs. However, they could only utilize a very limited range of pre-determined messages, and as with all such optical telegraphs could only be deployed during good visibility conditions. During the Middle Ages, chains of beacons were commonly used on hilltops as a means of relaying a signal. Beacon chains suffered the drawback that they could only pass a single bit of information, so the meaning of the message such as "the enemy has been sighted" had to be agreed upon in advance. One notable instance of their use was during the Spanish Armada, when a beacon chain relayed a signal from Plymouth to London that signalled the arrival of the Spanish warships.

Systems since the Middle Ages In 1792, Claude Chappe, a French engineer, built the first fixed visual telegraphy system (or semaphore line) between Lille and Paris. However semaphore systems suffered from the need for skilled operators, and expensive towers at intervals of 10 30 kilometres (620 mi). As a result of competition from the electrical telegraph, Europe's last commercial semaphore line in Sweden was abandoned in 1880. Telegraph and telephone Experiments on communication with electricity, initially unsuccessful, started in about 1726. Scientists including Laplace, Ampere, and Gauss were involved. A practical electrical telegraph was proposed in January 1837 by William Fothergill Cooke, who considered it an improvement on the existing "electromagnetic telegraph"; an improved five-needle, six-wire system developed in partnership with Charles Wheatstone entered commercial use in 1838. Early telegraphs used several wires connected to a number of indicator needles. Businessman Samuel F.B. Morse and physicist Joseph Henry of the United States developed their own, simpler version of the electrical telegraph, independently. Morse successfully demonstrated this system on September 2, 1837. Morse's most important technical contribution to this telegraph was the simple and highly efficient Morse Code co-developed with his associate Alfred Vail, which was an important advance over Wheatstone's more complicated and expensive system, and required just two wires. The communications efficiency of the Morse Code preceded that of the Huffman code in digital communications by over 100 years, but Morse and Vail developed the code purely empirically, with shorter codes for more frequent letters. The first permanent transatlantic telegraph cable was successfully completed on 27 July 1866, allowing transatlantic electrical communication for the first time. An earlier transatlantic cable had operated for a few months in 1859, and among other things, it carried messages of greeting back and forth between President James Buchanan of the United States and Queen Victoria of the United Kingdom However that first transatlantic cable soon failed, and the project to lay a replacement line was delayed for five years by the American Civil War. The first transatlantic telephone cable (which incorporated hundreds of electronic amplifiers) was not operational until 1956, only six years before the first commercial telecommunications satellite, Telstar, was launched into space. The conventional telephone now in use worldwide was first patented by Alexander Graham Bell in March 1876. That first patent by Bell was the master patent of the telephone, from which all other patents for electric telephone devices and features flowed. Credit for the invention of the electric telephone has been frequently disputed, and new controversies over the issue have arisen from time-to-time. As with other great inventions such as radio, television, the light bulb, and the digital computer, there were several inventors who did pioneering experimental work on voice transmission over a wire, who then improved on each other's ideas. However, the key innovators were Alexander Graham Bell and Gardiner Greene Hubbard, who created the first telephone company, the Bell Telephone Company in the United

States, which later evolved into American Telephone & Telegraph (AT&T), at times the world's largest phone company. The first commercial telephone services were set up in 1878 and 1879 on both sides of the Atlantic in the cities of New Haven, Connecticut, and London, England. Radio and television The RCA 630-TS, the first mass-produced television set, sold from 1946 to 1947.In 1832, James Lindsay gave a classroom demonstration of wireless telegraphy via conductive water to his students. By 1854, he was able to demonstrate a transmission across the Firth of Tay from Dundee, Scotland, to Woodhaven, a distance of about two miles (3 km), again using water as the transmission medium. In December 1901, Guglielmo Marconi established wireless communication between St. John's, Newfoundland and Poldhu, Cornwall (England), earning him the Nobel Prize in Physics for 1909, one which he shared with Karl Braun. However smallscale radio communication had already been demonstrated in 1893 by Nikola Tesla in a presentation before the National Electric Light Association. On March 25, 1925, John Logie Baird of Scotland was able to demonstrate the transmission of moving pictures at the Selfridge's department store in London, England. Baird's system relied upon the fast-rotating Nipkow disk, and thus it became known as the mechanical television. It formed the basis of experimental broadcasts done by the British Broadcasting Corporation beginning September 30, 1929. However, for most of the 20th century, television systems were designed around the cathode ray tube, invented by Karl Braun. The first version of such an electronic television to show promise was produced by Philo Farnsworth of the United States, and it was demonstrated to his family in Idaho on September 7, 1927. Television, however, is not solely a technology, limited to its basic and practical application. It functions both as an appliance, and also as a means for social storytelling and message dissemination. It is a cultural tool that provides a communal experience of receiving information and experiencing fantasy. It acts as a window to the world by bridging audiences from all over through programming of stories, triumphs, and tragedies that are outside of personal experiences.

Video telephony The 1969 AT&T Mod II Picture phone, the result of decades long R&D at a cost of over $500M.The development of video telephony involved the historical development of several technologies which enabled the use of live video in addition to voice telecommunications. The concept of video telephony was first popularized in the late 1870s in both the United States and Europe, although the basic sciences to permit its very earliest trials would take nearly a half century to be discovered. This was first embodied in the device which came to be known as the video telephone, or videophone, and it evolved from intensive research and experimentation in several telecommunication fields, notably electrical telegraphy, telephony, radio, and television.

The development of the crucial video technology first started in the latter half of the 1920s in the United Kingdom and the United States, spurred notably by John Logie Baird and AT&T's Bell Labs. This occurred in part, at least by AT&T, to serve as an adjunct supplementing the use of the telephone. A number of organizations believed that video telephony would be superior to plain voice communications. However video technology was to be deployed in analogy television broadcasting long before it could become practicalor popularfor videophones. Video telephony developed in parallel with conventional voice telephone systems from the mid-to-late 20th century. Only in the late 20th century with the advent of powerful video codecs and high-speed broadband did it become a practical technology for regular use. With the rapid improvements and popularity of the Internet, it became widespread thru the use of videoconferencing and webcams, which frequently utilize Internet telephony, and in business, where telepresence technology has helped reduce the need to travel. Satellite Main articles: Communications satellite, Satellite phone, Satellite radio, Satellite television, and Satellite Internet access The first U.S. satellite to relay communications was Project SCORE in 1958, which used a tape recorder to store and forward voice messages. It was used to send a Christmas greeting to the world from U.S. President Dwight D. Eisenhower. In 1960 NASA launched an Echo satellite; the 100-foot (30 m) aluminized PET film balloon served as a passive reflector for radio communications. Courier 1B, built by Philco, also launched in 1960, was the world's first active repeater satellite .Telstar was the first active, direct relay commercial communications satellite. Belonging to AT&T as part of a multi-national agreement between AT&T, Bell Telephone Laboratories, NASA, the British General Post Office, and the French National PTT (Post Office) to develop satellite communications, it was launched by NASA from Cape Canaveral on July 10, 1962, the first privately sponsored space launch. Relay 1 was launched on December 13, 1962, and became the first satellite to broadcast across the Pacific on November 22, 1963. The first and historically most important application for communication satellites was in intercontinental long distance telephony. The fixed Public Switched Telephone Network relays telephone calls from land line telephones to an earth station, where they are then transmitted a receiving satellite dish via a geostationary satellite in Earth orbit. Improvements in submarine communications cables, through the use of fiber-optics, caused some decline in the use of satellites for fixed telephony in the late 20th century, but they still exclusively service remote islands such as Ascension Island, Saint Helena, Diego Garcia, and Easter Island, where no submarine cables are in service. There are also some continents and some regions of countries where landline telecommunications are rare to nonexistent, for example Antarctica, plus large regions of Australia, South America, Africa, Northern Canada, China, Russia and Greenland.

After commercial long distance telephone service was established via communication satellites, a host of other commercial telecommunications were also adapted to similar satellites starting in 1979, including mobile satellite phones, satellite radio, satellite television and satellite Internet access. The earliest adaption for most such services occurred in the 1990s as the pricing for commercial satellite transponder channels continued to drop significantly. Digital cinema Realization and demonstration, on October 29, 2001, of the first digital cinema transmission by satellite in Europe of a feature film by Bernard Pauchon, Alain Lorentz, Raymond Melwig, Philippe Binant. Computer networks and the Internet On 11 September 1940, George Stibitz was able to transmit problems using teleprinter to his Complex Number Calculator in New York and receive the computed results back at Dartmouth College in New Hampshire. This configuration of a centralized computer or mainframe computer with remote "dumb terminals" remained popular throughout the 1950s and into the 1960s. However, it was not until the 1960s that researchers started to investigate packet switching a technology that allows chunks of data to be sent between different computers without first passing through a centralized mainframe. A four-node network emerged on December 5, 1969. This network soon became the ARPANET, which by 1981 would consist of 213 nodes. ARPANET's development centred around the Request for Comment process and on 7 April 1969, RFC 1 was published. This process is important because ARPANET would eventually merge with other networks to form the Internet, and many of the communication protocols that the Internet relies upon today were specified through the Request for Comment process. In September 1981, RFC 791 introduced the Internet Protocol version 4 (IPv4) and RFC 793 introduced the Transmission Control Protocol (TCP) thus creating the TCP/IP protocol that much of the Internet relies upon today. However, not all important developments were made through the Request for Comment process. Two popular link protocols for local area networks (LANs) also appeared in the 1970s. A patent for the token ring protocol was filed by Olof Soderblom on October 29, 1974, and a paper on the Ethernet protocol was published by Robert Metcalfe and David Boggs in the July 1976 issue of Communications of the ACM.[33][34] The Ethernet protocol had been inspired by the ALOHAnet protocol which had been developed by electrical engineering researchers at the University of Hawaii. Design Network architecture Two fundamental choices which dictated much of the ALOHAnet design were the two-channel star configuration of the network and the use of random accessing for user transmissions.

The two-channel configuration was primarily chosen to allow for efficient transmission of the relatively dense total traffic stream being returned to users by the central time-sharing computer. An additional reason for the star configuration was the desire to centralize as many communication functions as possible at the central network node (the Menehune), minimizing the cost of the original all-hardware terminal control unit (TCU) at each user node. The random access channel for communication between users and the Menehune was designed specifically for the traffic characteristics of interactive computing. In a conventional communication system a user might be assigned a portion of the channel on either a frequency-division multiple access (FDMA) or time-division multiple access (TDMA) basis. Since it was well known that in time-sharing systems [circa 1970], computer and user data are bursty, such fixed assignments are generally wasteful of bandwidth because of the high peak-to-average data rates that characterize the traffic. To achieve a more efficient use of bandwidth for bursty traffic, ALOHAnet developed the random access packet switching method that has come to be known as a pure ALOHA channel. This approach effectively dynamically allocates bandwidth immediately to a user who has data to send, using the acknowledgment/retransmission mechanism described earlier to deal with occasional access collisions. While the average channel loading must be kept below about 10% to maintain a low collision rate, this still results in better bandwidth efficiency than when fixed allocations are used in a bursty traffic context. Two 100 kHz channels in the experimental UHF band were used in the implemented system, one for the user-to-computer random access channel and one for the computer-to-user broadcast channel. The system was configured as a star network, allowing only the central node to receive transmissions in the random access channel. All user TCUs received each transmission made by the central node in the broadcast channel. All transmissions were made in bursts at 9600 bit/s, with data and control information encapsulated in packets. Each packet consisted of a 32-bit header and a 16-bit header parity check word, followed by up to 80 bytes of data and a 16-bit parity check word for the data. The header contained address information identifying a particular user so that when the Menehune broadcast a packet, only the intended user's node would accept it. Remote units The original user interface developed for the system was an all-hardware unit called an ALOHAnet Terminal Control Unit (TCU), and was the sole piece of equipment necessary to connect a terminal into the ALOHA channel. The TCU was composed of a UHF antenna, transceiver, modem, buffer and control unit. The buffer was designed for a full line length of 80 characters, which allowed handling of both the 40 and 80 character fixed-length packets defined for the system. The typical user terminal in the original system consisted of a Teletype Model 33 or a dumb CRT user terminal connected to the TCU using a standard RS-232C interface. Shortly after the original ALOHA network went into operation, the TCU was redesigned with one of

the first Intel microprocessors, and the resulting upgrade was called a PCU (Programmable Control Unit). Additional basic functions performed by the TCU's and PCUs were generation of a cyclic-parity-check code vector and decoding of received packets for packet errordetection purposes, and generation of packet retransmissions using a simple random interval generator. If an acknowledgment was not received from the Menehune after the prescribed number of automatic retransmissions, a flashing light was used as an indicator to the human user. Also, since the TCU's and PCUs did not send acknowledgments to the Menehune, a steady warning light was displayed to the human user when an error was detected in a received packet. Thus it can be seen that considerable simplification was incorporated into the initial design of the TCU as well as the PCU, making use of the fact that it was interfacing a human user into the network.../ The Menehune The central node communications processor was an HP 2100 minicomputer called the Menehune, which is the Hawaiian language word for imp, or dwarf people,[12] and was named for its similar role to the original ARPANET Interface Message Processor (IMP) which was being deployed at about the same time. In the original system, the Menehune forwarded correctly-received user data to the UH central computer, an IBM System 360/65 time-sharing system. Outgoing messages from the 360 were converted into packets by the Menehune, which were queued and broadcast to the remote users at a data rate of 9600 bit/s. Unlike the half-duplex radios at the user TCUs, the Menehune was interfaced to the radio channels with full-duplex radio equipment. Later developments In later versions of the system, simple radio relays were placed in operation to connect the main network on the island of Oahu to other islands in Hawaii, and Menehune routing capabilities were expanded to allow user nodes to exchange packets with other user nodes, the ARPANET, and an experimental satellite network. Country Wise Advance Data Usage

The 7 Ps of the marketing mix


Product
As seen in the goods-service continuum, your product can have both tangible and intangible aspects, and is the thing you offer to satisfy your customers wants and needs.Within this element, you need to consider such things as your product range; its quality and design; its features and the benefits it offers; sizing and packaging; and any add-on guarantees and customer service offerins. .Price Sound pricing decisions are crucial to a successful business and should be considered at both long-term strategic and short-term tactical levels. Within this element of the mix you should consider list price and discount price; terms and conditions of payment; and the price sensitivity of your market. Worth remembering is the connection of price to your position in the marketing specifically that only one operator in any market can be the cheapest. Jostling between competitors for this position is rarely wise.

.Promotion
.This is the element of the marketing mix that most people mean when they talk about marketing. But jumping straight into decisions a but what promotional tools to use without considering their relationship to the rest of the mix can be a sure-fire way to waste money. There are many different promotional techniques, each with their own strengths but essentially they can be broken down into four broad categories: Advertising; Public Relations; Sales Promotions; and Direct Selling. These techniques are used to communicate the specific benefits of your product to your customers.

Place
Marketers love models that explain the way they work; they love it even more when elements of each model begin with the same letter hence the use of the word Place to describe distribution channels. Your choice of such channels is important, as is the variety of channels you use. For example, a common issue for businesses beginning to trade on-line is how that will affect their off-line business, for example selling directly through the web could alienate retail outlets that have been the mainstay of your business in the past.

People
The impact that your people can have on your marketing cannot be underestimated. At its most obvious, this element covers your frontline sales and customer service staff who will have a direct impact on how your product is perceived. You need to consider the knowledge and skills of your staff; their motivation and investment in supporting your brand. Any element of the marketing mix will also have its impact on other elements of your business ,but the people element is one where the importance of regarding marketing as an integral part of the way you do business is crystal clear.

Process
The process part of the mix is about being easy to do business with. If youve ever become frustrated at call centres that cant answer your questions, or annoyed when you cant buy something in a shop because the computerised till doesnt recognise that it exists, even when you can see it on the shelves, youll know how important this element can be. The more high contact your product, and the more intangible, the more important it is to get your processes right. Remember to look at this from your customers point of view. The process problems that are most annoying to a customer are those that are designed for the providers convenience, not the customer.

Physical Evidence
When you sell tangible goods, you can offer your customer the chance to try before they buy, or at least see, touch or smell. With services, unless you offer a free trial, your customer will often be buying on trust. And to help them do so you need to provide as much evidence of the quality you will be providing as possible. So physical evidence refers to all the tangible, visible touch points that your customer will encounter before they buy, from your reception area and signage, to your staffs clothing and they images you include in you corporate brochure. Think about how all the elements of your marketing mix hang together. Does your pricing reflect the quality of your product? Does your choice of promotional tools reinforce your choice of distribution channel? Do your people understand how to implement your process?

7PS IN TELECOMMUNICATION SECTOR Product


1.Prepaid : A prepaid mobile phone has access to most if not all of the services
offered by a mobile phone operator, although the charges for these services may differ from customers with the same operator who have a postpaid contract. In addition, a prepaid phone has a balance which can be queried at any time, and also topped up periodically. Examples of ways in which the balance can be topped up are the following:

a credit card or debit card direct from a bank account using an ATM in a retail store by purchasing a "top-up" or "refill" card at retail. These cards are stamped with a unique code (often under a scratch-off panel) which must be entered into the phone in order to add the credit onto the balance. in a retail store using a swipe card where the balance is credited automatically to the phone after the retailer accepts payment. from other mobile phones on certain networks which provide international topup services, where the initiator of the top up is often a migrant worker wanting to add minutes to the prepaid mobile phone of a family member back home. direct from some open-loop prepaid cards featuring a mobile refill service.

through electronic reloading where a specially designed SIM card (Retailer's SIM card as used to define in the Philippines and India) is used to reload a mobile phone by entering the mobile number and choosing the amount to be loaded. This process is widely implemented in the Philippines and India so that any person can be a prepaid load retailer creating a nationwide availability of reloading stations, even in remote areas.

Credit purchased for a prepaid mobile phone may have a time limit, for example 90 days from the date the last credit was added. In these cases, customers who do not add more credit before expiration will lose their remaining balance. There is no compulsion on a prepaid mobile phone user to top up their balance. To maintain revenues, some operators have devised reward schemes designed to encourage frequent top ups. For example, an operator may offer some free SMS to use next month if a user tops up by a certain amount this month. Unlike postpaid phones where subscribers have to terminate their contracts, it is not easy for an operator to know when a prepaid subscriber has left the network. To free up resources on the network for new customers, an operator will periodically delete prepaid SIM cards which have not been used for some time, at which point their service (and its associated phone number) is discontinued. The rules for when this deletion happens varies from operator to operator, but may typically occur after 6 months of non-use. By 2003 the number of prepaid accounts grew past contract accounts, and by 2007, two thirds of all mobile phone accounts worldwide were prepaid accounts . 2. Postpaid : The post-paid mobile phone is a mobile phone for which service is provided by a prior arrangement with a carriage service provider (CSP). The user in this situation is billed after the fact according to their use of mobile services at the end of each month. Typically, the customer's contract specifies a limit or "allowance" of minutes, text messages etc., and the customer will be billed at a flat rate for any usage equal to or less than that allowance. Any usage above that limit incurs extra charges. Theoretically, a user in this situation has no limit on use of mobile services and, as a consequence, unlimited credit. This service is better for people with a secured income. Postpaid service mobile phone typically requires two essential components in order to make the 'post-usage' model viable: 1. Credit history/Contractual commitment: This is the basis on which the service provider is able to trust the customer with paying their bill when its due and to have legal resource in case of non-payment 2. Service tenure: Most post-paid providers require customers to sign long term (1-3 year) contracts committing to use of the service. Failure to complete the term would make the customer liable for early terminiation fees. The bill itself is an important component of the services which acts as an ambassador of the service provider and at times as an evidence of the service itself.

The bill needs to be readable, comprehensible as well as aesthetically attractive for the subscriber to be interested enough to see details other than the bill amount. The United States is an example of a country dominated by postpaid providers (AT&T, Verizon, Sprint and T-mobile) although a smaller market has been captured by prepaid providers such as Boost, Virgin Mobile, Metro PCS, Cricket, Tracfone and Jump, many of which use the post-paid providers networks (e.g. MetroPCS is carried on the T-Mobile network).

3.Global Positioning System: The Global Positioning System (GPS) is a space-based satellite navigation system that provides location and time information in all weather conditions, anywhere on or near the Earth where there is an unobstructed line of sight to four or more GPS satellites. The system provides critical capabilities to military, civil and commercial users around the world. It is maintained by the United States government and is freely accessible to anyone with a GPS receiver. The GPS project was developed in 1973 to overcome the limitations of previous navigation systems,[1] integrating ideas from several predecessors, including a number of classified engineering design studies from the 1960s. GPS was created and realized by the U.S. Department of Defence (DoD) and was originally run with 24 satellites. It became fully operational in 1994. Roger L. Easton is generally credited as its inventor. Advances in technology and new demands on the existing system have now led to efforts to modernize the GPS system and implement the next generation of GPS III satellites and Next Generation Operational Control System (OCX).[2] Announcements from the Vice President and the White House in 1998 initiated these changes. In 2000, U.S. Congress authorized the modernization effort, referred to as GPS III.

In addition to GPS, other systems are in use or under development. The Russian Global Navigation Satellite System (GLONASS) was developed contemporaneously with GPS, but suffered from incomplete coverage of the globe until the mid-2000s. There are also the planned European Union Galileo positioning system, Chinese Compass navigation system, and Indian Regional Navigational Satellite System.

4. Value-added service: A value-added service (VAS) is a popular


telecommunications industry term for non-core services, or in short, all services beyond standard voice calls and fax transmissions. However, it can be used in any service industry, for services available at little or no cost, to promote their primary business. In the telecommunication industry, on a conceptual level, value-added services add value to the standard service offering, spurring the subscriber to use their phone more and allowing the operator to drive up their ARPU. For mobile phones, while technologies like SMS, MMS and data access were historically usually considered value-added services, but in recent years SMS, MMS and data access have more and more become core services, and VAS therefore has beginning to exclude those services. A distinction may also be made between standard (peer-to-peer) content and premium-charged content. These are called mobile value-added services (MVAS) which are often simply referred as VAS. Value-added services are supplied either in-house by the mobile network operator themselves or by a third-party value-added service provider (VASP), also known as a content provider (CP) such as All Headline News or Reuters. VASPs typically connect to the operator using protocols like Short message peer-topeer protocol (SMPP), connecting either directly to the short message service centre (SMSC) or, increasingly, to a messaging gateway that gives the operator better control of the content.

Price:
Telecommunications expenditure accounted for 2.8 % of gross domestic product (GDP) in the EU-27 in 2010, compared with 3.3 % in the United States and 3.5 % in Japan (both 2008) see Figure 1. The highest relative levels of expenditure were generally recorded in those Member States that joined the EU in 2004 or 2007 (data for Cyprus and Malta are not available), in particular in Estonia and Bulgaria, where telecommunications expenditure was valued at over 5 % of GDP in 2010. The share of the total telecommunications market accounted for by fixed-line voice operations has shrunk, as growth within the telecommunications sector has been concentrated in mobile telephony markets and markets for other data services. In 2008, the incumbent ex-monopoly service providers in fixed telecommunications markets accounted for more than two fifths of international calls across those EU Member States for which data are available (see Table 1), a share that reached 85 % in Malta. By comparison, the share of the leading operator in the mobile market

was relatively low in 2010, varying between 31 % in Poland and around one third of the mobile market in Germany, Italy and the United Kingdom, up to just over three quarters (76 %) of the mobile market in Cyprus; the EU-27 average was 38 %. The average number of mobile phone subscriptions per 100 inhabitants stood at 125 in the EU-27 in 2009 (see Figure 2). It surpassed parity (100) in 24 of the EU Member States, where there were more subscriptions than inhabitants; the three countries where rates were below 100 subscriptions per 100 inhabitants were Austria, France and Latvia. Statistics relating to the number of short-message service (SMS) texts that are sent per inhabitant are also presented in Figure 2, with a considerable range in the values across the EU Member States. While, on average, Bulgarians sent 87 SMS text messages per inhabitant in 2009, the figures in Lithuania and Ireland were more than 30 times as high (around 2 700 messages per inhabitant). Total turnover, in value terms, is based on sales from all telecommunication services, including leased lines, fixed network services, cellular mobile telecommunication services, interconnection services and internet service provision. In nearly all EU Member States (for which data are available) turnover from mobile services exceeded that from fixed network services in 2009, the main exception being Belgium (see Table 2). The price of telecommunications fell between 2000 and 2010 in many EU Member States (see Table 3). Price reductions were most apparent for national long-distance calls and international calls (represented here by calls to the United States). Across the EU, the average price of a national long-distance call almost halved between 2000 and 2010, with most of this reduction occurring by 2005, as the average price fell 5 % between 2005 and 2010. The price fall between 2005 and 2010 for an international call was larger, down 19 %, whereas the price of local calls increased by 17 %. The largest increase (in percentage terms) in the price of local calls between 2005 and 2010 was recorded in the United Kingdom, where the price more than doubled, while double-digit percentage increases were also recorded in eight other EU Member States. In contrast, Denmark recorded the biggest decrease in the price of local calls, down 65 %. In the majority of EU Member States there was a remarkable decrease of prices for international calls between 2000 and 2010; the decrease was less dynamic during the second half of the decade. The convergence in prices for local and national long-distance calls between 2000 and 2010 was notable. Between 2000 and 2005 there was strong convergence between EU Member States in prices for international calls; this was followed by a slight divergence between 2005 and 2010. Prices of local, national long-distance or international calls varied greatly across the EU Member States in 2010. Local calls were most expensive in the United Kingdom, national long-distance calls in Slovakia and Italy, while the price of international calls was highest in Latvia. The cheapest tariffs for local calls were in Denmark, Bulgaria and Cyprus, while the cheapest national long-distance calls were in Denmark and Cyprus. For international calls (to the United States), the cheapest calls, by far, were from Germany.

Promotion:
Promotion is the way a company communicates what it does and what it can offer customers. It includes activities such as branding, advertising, PR, corporate identity, sales management, special offers and exhibitions. Promotion must gain attention, be appealing, tell a consistent message and above all else give the customer a reason to choose your product rather than someone elses. Good promotion is not one-way communication- it paves the way for a dialogue with customers. Promotion should communicate the benefits that a customer obtains from a product, and not just the features of that product. Whether your promotional material is a single sheet or a complex brochure, folder or catalogue, it must grab the attention of your customers. It should be easy to read and enable the customer to identify why they should buy your product. A brochure isnt necessarily the best way of promoting your business, the problem being that once a brochure has been printed, the information is fixed. You cant change or remove anything should the need arise. A more cost effective and flexible option might be a folder with a professionally designed sheet inside, over a series of your own information sheets produced in house. These sheets can be customized by varying them to suit the target customers and or/changing them as required.

Promotion does not just mean communicating to your customers. It is just as important to ensure your internal stakeholders are aware of the value and attributes of your products. This means communicating effectively to your staff/fellow employees so that they can be knowledgeable and share expertise with their customers.

People:
Anyone who comes into contact with your customers will make an impression, and that can have a profound effect positive or negative on customer satisfaction. The reputation of your rests in your peoples hands. They must, therefore be appropriately trained, well-motivated and have the right attitude. Many customers cannot separate the product or service from the staff member who provides it. This shows the importance of your people. The level of after sales support and advice provided by a business is one way of adding value to what you offer, and can give you an important edge over your competitors. This will probably become more important than price for many customers once they start to use youLook regularly at the products that account for

the highest percentage of your sales. Do these products have adequate after sales support. Or are you being complacent with them? Could you enhance your support without too much additional cost?

Place:
It refers to the place where the customers can buy the product and the means of distributing your product to that place. This is done through different channels, like Internet, wholesalers and retailers. The product must be available in the right place, at the right time and in the right quantity, while keeping in mind storage, inventory and distribution costs to an acceptable level. Customers surveys have shown that delivery performance is one of the most important criteria when choosing a supplier. Place also means way of displaying your product to customer groups. This could either be in a shop window or via internet. Distribution methods: Indirect DistributionIt involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.Direct Distribution- It involves distributing direct from a manufacturer to the consumer.

Physical Evidence:
Sim Cards- A sim card is a card that is placed into your cell phone that carries all of the information about your phone. It has your phone number on it and all of your information. Recharge Vouchers-A voucher is a recharge number sold to a customer to recharge their SIM Card with money and to extend the card's availability period. Vouchers are typically sold at retail outlets, such as phone stores run by the mobile operator or by distributors, grocery stores, and gas stations. Service Outlets- It is an outlet of any telecommunication company which sells sim cards and has company personnels to look after any problem of any customer who has come to the store.

BCG Matrix
SMS and Calling Service

Star Market Growth

???
GPRS and Internet Service Dog MMS Service

Cash Cow Value Added Service

Relative Market Share

SMS and calling services-they are in star cell, that is they are having a large market share and fast market growth. GPS and internet services- They are in the question mark cell, that is they have a low market share and high market growth. Value added services- They are in the cash cow cell, that is they have large market share and slow market growth. MMS services- They are in the dogs cell, that is they are neither having large market share nor they have a market growth.

Technology in telecom sector:


"Information- and Technology-based Marketing" addresses how to use customer information and the technology to process it (i.e. databases, analytics, computing systems) to learn about and market to individual customers. Advances in the technology to process individual-level customer information has had two important effects for Marketing. First, many firms now possess much more information about consumers' choices and reactions to marketing campaigns than ever before. However, few firms have the expertise to intelligently act on such information. The first goal of this course is to develop this expertise. The second effect of information technology is that it has changed the competitive environment for many firms. Consumers have more information about competitive offerings, the Internet has allowed many competitors to market to consumers directly, etc. Marketing is going through an evolution from having been primarily an art to becoming a science.

Evoluation of comminication media:


Basic electrical signals:

1838: Electrical telegraph 1858: First trans-Atlantic telegraph cable 1876: Telephone. 1880: Telephony via lightbeam photophones

Advanced electrical and electronic signals:


1893: Wireless telegraphy 1896: Radio. 1914: First North American transcontinental telephone calling 1927: Television 1927: First commercial radio-telephone service, U.K.U.S. 1930: First experimental videophones 1934: First commercial radio-telephone service, U.S.Japan 1936: World's first public videophone network 1946: Limited capacity Mobile Telephone Service for automobiles 1956: Transatlantic telephone cable 1962: Commercial telecommunications satellite 1964: Fiber optical telecommunications 1965: First North American public videophone network 1969: Computer networking 1973: First modern-era mobile (cellular) phone

1979: INMARSAT ship-to-shore satellite communications 1981: First mobile (cellular) phone network 1982: SMTP email 1983: Internet. 1998: Mobile satellite hand-held phones 2003: Skype Internet telephony

Email marketing is directly marketing a commercial message to a group of people usingemail. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either cold lists or current customer database. Broadly, the term is usually used to refer to:

Sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business, Sending email messages with the purpose of acquiring new customers or convincing current customers to purchase something immediately, Adding advertisements to email messages sent by other companies to their customers

Email marketing (on the Internet) is popular with companies for several reasons:

An exact return on investment can be tracked ("track to basket") and has proven to be high when done properly. Email marketing is often reported as second only to search marketing as the most effective online marketing tactic. Email Marketing is significantly cheaper and faster than traditional mail, mainly because of high cost and time required in a traditional mail campaign for producing the artwork, printing, addressing and mailing. Advertisers can reach substantial numbers of email subscribers who have opted in (i.e., consented) to receive email communications on subjects of interest to them. Almost half of American Internet users check or send email on a typical day, with email blasts that are delivered between 1 am and 5 am local time outperforming those sent at other times in open and click rates. Email is popular with digital marketers, rising an estimated 15% in 2009 to 292m in the UK.

Evoluation of telecom technology:


G 1 2 Analog Digital TDMA, CDMA GPRS mux packets in voice timeslots Improved modulation, using CDMA variants Technology Data Rates Typical 2.4 Kbps; max 22 Kbps 9.6 - 14.4 Kbps (circuit data) 15 - 40 Kbps

2.5

50 144 Kbps (1xRTT); 200 384 Kbps (UMTS); 500 Kbps 2.4 Mbps (EVDO) 214 Mbps (HSPA)

3.5

More modulation tweaks

New modulation (OFDMA); Multipath (MIMO); All IP

LTE: >10 Mbps; eventual potential >100 Mbps

Impacts of technology on telecom sector:


Everything has both a positive and negative impact, and the impact of technology on the communication process also comes as mixed baggage Positive Impact Technology has transformed the once big and far world into a tiny global village. Thanks to technology, we now have the power to communicate with anybody on the other side of the world. The points below summarize these benefits. No barriers: Communication is now easy; in case of situations when you want to convey something urgently to someone, mobiles and emails come in handy. Strengthened relations: Technology has made it easy to keep in touch with old contacts, and has also helped strengthen relationships. Better solutions: Technology has brought the world closer and promoted exchange of thoughts to find better solutions to any problem. E-schools: Services like video-conferencing has made it possible to give best education to students via expert faculty on the web. Impact on relations: Finding someone to date was never so easy, thanks to the dating and chatting websites! No one would disagree if I say - Technology is the rational behind the success of long distance relationships. Video chats and social networking sites have played a big role in keeping people in touch. Development: Technological advancements in the modes of communication have promoted faster decision-making, and led to the development and progress of the world. Video conferencing has played a considerate role in promoting faster decision-making. Most of the businesses depend on technology for communication. Negative Impact The most prominent negative effect of technology - the charm of the good old world is missing. The letters, and lengthy face-to-face conversations have gone away, and have been replaced by texting or chatting. See the below given points for details. Impact on interpersonal communication: The current generation lacks essential interpersonal skills (the ability to express the ideas and thoughts to others face-toface). A major reason for this tendency is increased frequency of communication through texting and chatting on websites. Effect on nonverbal communication: Technological means have also affected nonverbal communication. Lack of face-to-face interaction has reduced the nonverbal grasping power of individuals.

Near yet far: Teenagers especially are always hooked to the social networking sites. They are more close to online friends, but the gap between parents and kids has increased considerably. Communication is missing, parents are not technology savvy and not used to the communication styles of their kids, and this has increased the generation gap. Reduced social interactions: Consider the socializing among people. Life has changed a lot; there are no social meetings and get-togethers (the frequency has reduced). People are more bothered about their online life rather than the real social life. Has led to many addictions: People have literally become addicted to the Internet and cell phones, and this addiction has led to many anxiety disorders. People addicted to the Internet feel lonely and isolated. Malicious motives: Many people abuse the social networking sites and communicate to unsuspecting beings pretending someone else. This tendency of people has done more harm than good. As you can see, the impact is both positive and negative. But logically thinking, technology has bettered the communication process and has done negligible harm. The positive points of the technological advancements cover up the negative points. It all depends on how we use these means; use the technological means of communication for sane purposes, and don't abuse them for malicious motives.

Growth prospects:
India's teledensity has improved from under 4% in March 2001 to around 76% by the end of March 2012. Cellular telephony continues to be the fastest growing segment in the Indian telecom industry. The mobile subscriber base (GSM and CDMA combined) has grown from under 2 m at the end of FY00 to touch 919 m at the end of March 2012 (average annual growth of nearly 64% during this 12 year period). Tariff reduction and decline in handset costs has helped the segment to gain in scale. The cellular segment is playing an important role in the industry by making itself available in the rural and semi urban areas where teledensity is the lowest. The fixed line segment continues to decline in terms of the subscriber base. It has declined to 32.17 m subscribers in March 2012 from 34.73 m in March 2011. The decline was mainly due to substitution of landlines with mobile phones. As far as broadband connections (>=256 kbps) are concerned, India currently has a subscriber base of 13.8 m. Broadband penetration received a boost from the auction of broadband spectrum. The network providers have stated that they would be looking at boosting the contribution of data to their revenues. This bodes well for the future of broadband services.

As far as the fixed line business goes, the low penetration levels in the country and the increasing demand for data based services such as the Internet will act as major catalysts in the growth of this segment. However, the growth would be mitigated by increasing substitution of landlines by mobile phone. The PSUs will however continue to retain their dominant position. This is on account of high capital investments required in setting up a nationwide network. As a result, the private sector players will have to rely on key business centers and pockets of high urbanisation for their growth. Increasing choice and one of the lowest tariffs in the world have made the cellular services in India an attractive proposition for the average consumer. The penetration levels in urban areas have already crossed 100%. Therefore the main driver for future growth would be the rural areas where tele-density is around 39.22%. During FY12, a number of things were carried out. The Supreme Court cancelled the 2G licenses that were issued in 2008 by the erstwhile telecom minister. The Court also directed the regulator to formulate new rules for auctioning the spectrum and cancelled licenses. The regulator, TRAI has come up with regulations which price the 2G spectrum at sky high prices. The operators have vehemently opposed the pricing which they state will strain their stretched balance sheets further. The cancellation of the licenses and subsequent TRAI's proposals on pricing of the new spectrum prompted the exit of 2 foreign operators from the country. The other operators too have revisited their investment plans in India. However, the regulator is optimistic that foreign operators would still participate in the upcoming 2G auction. The operators continued to operate on thin margins during FY12. Due to intense competition, tariffs continue to remain low. At the same time rising operating costs will force operating margins to continue remaining depressed during the current fiscal as well. At the same time, operators are likely to see their balance sheets come under pressure as well. Most operators have taken huge loans to fund their 3G spectrum obligations. Now they would have to raise more funds to fund the 2G spectrum licenses. With such low margins and high debt to equity ratios, banks have been skeptical about lending further to the telecom companies. As a result, most of them are exploring other options of raising funds including listing of unlisted subsidiaries. In a latest move, operators have cut tariffs on the premium 3G services. Most of them have stated that the decline in tariffs would be offset by increase in volumes which would help boost 3G revenues. Indian consumers are known to be highly sensitive to price decrease and therefore this move to cut prices is expected to drive

growth for 3G in the coming years. However, if the operators go for predatory pricing, like they did for 2G, then it would harm the fundamentals of the sector by forcing companies to cut margins further. While tariff increase on the 2G side will have to happen eventually, it remains to be seen if all operators would make this move in the current fiscal or not. According to the Union Minister of State for Communications and Information Technology,India has become an advanced nation in the mobile market of the world with lakhs of consumers getting associated to the service every month. This will of course lead to the growth of the other sectors too and will make its strong place in telecommunication sector in the future time.