Airtel iCreate 2019

The Road Ahead

SALES & MARKETING

Team Name: ETERNITY

Campus: SIMSR, Mumbai
Members: VIKAS ARORA & SHREYA MATTA
 Largest telecom
1,183.51
Total
Subscriber million
2nd network in the
world RESPONSE TO DISRUPTIVE MARKETING STRATEGY OF BETATEL
base
Increase in AlphaTel
Highest number
14 Data • Retain market share by competitive pricing
of internet
subscribers 2nd Consumption
• Product portfolio offering shifted from a per GB price to a
globally times Bundled package
• Aggressive investments on Spectrum
Rising • Acquired 2 players’ network & 6 spectrum
Penetration 90.11 3
Number of
players in • Launched its music & entertainment/TV apps
rate industry
% • Consumer engagement/reward programs
Merging of GammaTel and DeltaTel to realize economies of scale

BetaTel
• Entered industry with 4G LTE network
• Offered 10 month free usage (Voice unlimited &
data GBs)
• Data prices slashed from Rs 250/GB to Rs 20 per GB
• Data usage per customer at 10 GB from 1 GB
AlphaTel
• Focus: Infrastructure & customer centricity
• Huge Capex Network Investment: $ 3.5bn
• Mobile services led to 73% rise in revenues
• Product offerings: 2G, 3G and 4G wireless services,
mobile commerce, fixed line services, high speed
home broadband, DTH, enterprise services
ACQUISITION AND DIFFERENTIATION
ALPHATEL
• Retain and strengthen Brand value
• Maintain market presence & increase share
• Market synergies can create substantial long term
value for shareholders
• Acquire resources & core competencies speedily
• Immediate Increases in revenues, improve long
term financial outlook
• Instantaneous entry into new product lines
• Reduce risks & costs of new product development
• If did not obtain market synergies, returns may
not benefit stakeholders to the anticipated
extent
• Expected cost savings might never materialize
• Higher-than-anticipated price of acquisition
• Poor ROI for aggressive investments in marketing
MERGERS
GAMMATEL -DELTATEL
• Each operator gains 50:50
• Regulation of Monopoly by BetaTel
• Increase market share
• Strong balance sheets for both operators
• Gain power to take on giants like AlphaTel &
BetaTel
• Debt burden of combined entity will go down
• Obtain advanced technologies by investing in R&D
• Clash of cultures and lack in content ecosystem
space
• Confusion about brand identity and management
• Impact on morale of employees job safety
• One operator might lose the customers to the other
• Identify unified branding strategy
• Quality degradation
POLITICAL ECONOMIC
• Privatization & deregulation by • FDI cap increased to 100% from 74%
government • Contributes 30% of service tax revenues
• Low tariff per minute plans • Foreign equity of 74% for telecom services
• Investment of US $32.2 bn • Lucrative incentives for foreign collaborations
• Revised M&A market share to 35% • Approval of US $2 mn - technology,
• Reduced license fee 5% - domestic sales, 8% for exports BUSINESS MODEL
• Increased disposable incomes
Core Competency:
SOCIAL • 4G LTE network
• Changing lifestyle of consumers TECHNOLOGY • 10-month free usage: Voice unlimited and data
• Increased employment • IOT & growing Cashless Transactions GBs per day
opportunities • Investments in optical fibre network • Largest 4G footprint network and spectrum pool
• Regional shift in population • Enhanced spectrum limit
• Shift from landlines to mobile • Mobile wallet transaction increased With launch of 4G LTE enabled
operators 5% per month COMPANY
feature phone to cater to
lower segments, its target
customers were both lower
ENVIRONMENTAL CONTEXT CUSTOMERS and higher segments
• Green telecom: To reduce carbon footprint Expansion to rural markets
• Promote & incentive deployment of solar &
green energy for telecom towers.
COLLABORATORS
COMPETITION Blue Ocean strategy
LEGAL BetaTel made the competition
• NTP: No roaming charged and nation-wide portability Key Partnership: irrelevant by disrupting the telecom
• Independent regulatory body: TRAI, 1997 • e-tailers market
• Legal obligations for 3G auctions & bidding • smartphone retailers and Disruptive Pricing
• Tightened norms against misuse of cellular network mobile manufactures Data prices slashed from Rs. 250/GB
• Conflict between government and operators to Rs. 20 per GB
 ALPHATEL STRATEGIES TO INCREASE
MARKET SHARE

TECHNOLOGY
AFFORDABLE
PRICING RURAL
Provide 5G network EXPANSION COLLABORATE
Allow foreign
investment for Adding more value
added service(VAS) to Expand the Airline companies for
reduction in prices of in-flight
5G current existing plan network in remote
regions communication
Introduce digital SIM More regulation on
charges for accidental Train the rural Railway industry for
Investments in optical subscriptions crowd about the better connectivity
fibre network mobile usage Merger with foreign
Freedom to choose
Safe for ecosystem inactive days; no Social initiatives as telecom industry to
Less congested charge for inactive e-education, tele- generate revenue for
networks numbers medicine, e-health, 5G spectrum
Reduce number of e- governance
Use of AI to curb
misuse of cellular plans and focus on
network quality
 ALPHATEL STRATEGIES TO INCREASE
BRAND VALUE Digitise Telecom Industry?

Create an attractive slogan and capturing creative NO

Contract appropriate celebrity for being Brand YES Privatise Telecom
ADVERTISING Ambassador Industry?
Promote its mobile app and leverage social media
CAMPAIGN marketing
NO
Provide Bundled product by adding more value

PRODUCT
to existing package YE
Introduce 5G
DEVELOPMENT CAUSES OF S
Introduce Online portability, making it user-
friendly DISSATISFACTION
Customized and robust data plans

Referral scheme of data benefits to referred customers OTHERS

Offer automatic compensation to customer for
CUSTOMER deficiency in service
SERVICES Quick resolution of Customer grievances
Monitor satisfaction level of customers
Inter operator compatibility (lesser call drop and lesser ** Data from survey
busy tone) conducted by us
THANK YOU