Key Challenges for a successful 3G launch

Rajat Mukarji
Chief Corporate Affairs Officer IDEA Cellular Limited

3G : Global Performance
In the past, Performance of 3rd generation technology around the world was a mixed bag But Recently 3G technology is back in the mainstream with more than 168 Operators* in 73 countries around the world who have launched WCDMA based network

Source: World Cellular Information Services/ GSMA

Catching the attention of Operators and Subscribers Globally .

3G is catching Attention of Operators and Subscribers Globally .

6 21.3 20.9 32 .3 21.8 18 16.3G is catching Attention of Operators and Subscribers Globally Operator O2 ORANGE TIM T MOBILE ORANGE SFR VERIZON AT&T NTT DoCoMo Source: COAI Country UNITED KINGDOM UNITED KINGDOM ITALY GERMANY FRANCE FRANCE USA USA JAPAN Non-Voice Revenues as % of Total Revenues 33.2 21.1 20.

Test Cus tom er S erv ice Ter min als . Test .Factors Driving 3G a dM an rk ices o etw serv wN na d ge Cre ati ng ag oo dc ust om Ne Segmentation er exp eri en ce Distribution The Customer Products and services Partners Pricing Test.

.Factors Driving 3G (Contd.) Key Drivers Target Segment Pricing and Distribution Partnership Management Customer Care Product and Services Terminals Form Customer Experience Network Strategies Increased Market Share Increased ARPU Reduced Costs Increased Customer Satisfaction Increased Profitability Reduced Time to Market Potential Benefits .

One of the key questions being raised currently in India Is 3G for India? 42% 8% 3G likely to be used initially as a network overlay & tool to carry traffic and then as revenue growth driver .Is 3G Important for India? India is primarily a voice market It has one of the lowest airtime tariffs in the world Growth in mobile services is being driven primarily by low priced handsets. low tariffs & network expansion.

Location based services and Entertainment Rural Coverage??? . Telemedicine.Is 3G Important for India? Spectrum Crunch Migration of High Usage Subscribers to 3G Low Cost of Voice per minute Why 3G in India? 42% 19% 8% New Services and Applications day to day life with services like.

It presents its own set of Opportunities and Challenges .3G is the new Paradigm.

3G Rollouts Desired Market Positioning Key factors Mass Market & Low differentiator Mass Market & High differentiator Low diff mass High diff Niche Market & Low differentiator niche Niche Market & High differentiator .

3G Rollouts Target Market Segment Key factors Youth Non-Youth Small Medium Enterprises Prosumers Corporates .

3G Rollouts Target Market Locations Key factors Number of Cities Names of the Cities Service area for youth in each city Service area for corporate in each city Service area for non-youth in each city Service area prosumers .

3G Rollouts Preferred 3G Services Key factors Voice SMS MMS WAP Video Telephony Audio Streaming Video Streaming Internet Access Games Audio/Video Clip downloads .

3G Rollouts Coverage Strategy Key factors Match 3G coverage with 2.5G 3G in pockets Carpet Coverage for Video Telephony Seamless coverage for 64kbps or 128kbps What kind of HSDPA coverage Indoor coverage strategy .

3G Rollouts Network 3G Architecture Key factors Core Radio Network Centralized RNC architecture Distributed RNC architecture Transmission Network All IP Transmission network All ATM transmission Network Separate transmission for GSM and 3G ATM network .

3G Rollouts Terminal Strategy Key factors Bundling of handsets Handset Subsidy Level of Customization Control Sell of handsets or Continue with existing terminal strategy Device Management system for better service delivery Terminal Test Lab for network and applications testing .

3G Rollouts Channel/Distribution Strategy Key factors Understand impact on channel/distribution processes due to launch of 3G services Skilled staff at company owned showrooms and other channels Impact on automated channel options Creation of experience centers Incentive schemes for various channel partners .

3G Rollouts Branding Strategy Key factors Continue with existing Brand for 3G Reposition brand with launch of 3G Services Extend existing brand for 3G services Separate branding option for 3G portal .

3G Rollouts Business Planning for 3G Key factors Develop Financial Model for 3G Revenue Model Capex and Opex Model Sensitivity Analysis .

why they are doing it and what might they be doing Create a promise Tell your customers what your company stands for Choose Position Define how you want to offer customer value and differentiate from the competition Increase retention Give customers reasons for not to leave us Tell your customers what your products stand for .In conclusion Understand Customers Find out what drives the customers and how much they value the benefits of your (potential) the competitors offerings Create Segments Define a manageable number of distinct groups of customers Develop offering Relevant product Competitive price Make it convenient Make your product/service easily available and easy to purchase for your (potential) customers Choose Targets Estimate attractiveness for each segment and which ones to target Correct channel Effective promotion Create loyalty Reward customers for usage and for staying with us Understand Competitors Find out what the competitors are doing.

Thank You .

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