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TELECOM INDUSTRY

 ' Indian Telecom Industry' is the third largest and


fastest growing in the world with nearly 200 million
connections.
 Subscriber growth rate is 45%
 The wireless technologies currently in use ' Indian
Telecom Industry '
 Global System for Mobile Communications (GSM)
 Code Division Multiple Access (CDMA).
 There are primarily 11 GSM and 4 CDMA operators
providing mobile services in 19 telecommunication
circles and 4 metro cities, covering more than 2000
towns across the country.
 Telecom Industry in India ' is regulated by
'Telecom Regulatory Authority of India' (TRAI).
 Three types of players exist in ' Indian Telecom
Industry ' :
 State owned companies like - BSNL and MTNL.

 Private Indian owned companies like - Reliance


Infocomm and Tata Teleservices.
 Foreign invested companies like – Hutchison-
Essar , Bharti Tele-Ventures, Escotel, Idea
Cellular, BPL Mobile, Spice Communications
etc.
  
MARKET SHARE
BHARTI ENTERPRISES
BHARTI ENTERPRISES

Bharati Telecom Bharti Jersey Bharti AXA Bharti Field


Bharti
Teletech Seychelles Telecom Airtel Insurance Telesoft Fresh Retail Pvt
Ltd. Ltd. Ltd. Ltd. Co. Ltd Ltd. Foods Pvt. Ltd.
Ltd.

eletech Services
(India) Ltd. Bharti Airtel
Ltd
BHARTI AIRTEL LIMITED
 Established in June 07, 1995 as a Public Limited Company.
 Largest Cellular Operator in India.
 Listed on Bombay Stock Exchange (BSE) & National Stock
Exchange of India Limited (NSE)
 Operational Network:
 Provides GSM mobile services in all the 23 telecom circles in
India, and was the first private operator to have an all India
presence.
 Provides broadband (DSL) and telephone services (fixed line)

in 94 cities in India
STRATEGIC BUSINESS
 Mobile Services: UNIT
 This unit constitutes the largest portion of the company’s
business in terms of total revenues and customers.
 The company’s mobile customer base accounts for 22.9% of
the overall wireless (GSM+CDMA) market.
 Broadband and Telephone Services
 This unit provides fixed line and broadband services over the
same copper lines.
 Plans to introduce IPTV (Internet Protocol Television)
 Enterprise Services : Two sub-units are –
 Carriers : It handles long distance national & international
mobile, broadband and telephone services.
 Corporates: It provides customised integrated voice and data
communications solutions to corporate customers.
PERFORMANCE AT A
GLANCE
Particulars Units Full Year Ended March 31

2003 2004 2005 2006 2007

Total Customer Base (In 1000) 3,443 7,141 11,842 20,926 39,013

Mobile Services (In 1000) 3,071 6,504 10,984 19,579 37,141

Broadband and Telephone Services (In 1000) 372 637 857 1,347 1,871

           

Revenue Rs. Mn 30,554 50,369 81,558 116,641 184,202

Profit After Tax Rs. Mn (2,051) 5,837 12,116 20,279 40,621

Return on Capital employed % 0.9 9.9 15.7 21.5 31.6


ANSOFF’S MODEL
MARKET PENETRATION STRATEGY
(Increase Market Share)
 Attract users of competitors products : Full Talktime
 Convert nonusers into users :Lifetime plans to attract low
income groups
 Increase product usage : Easy Recharges
 Increase the frequency of purchase : Recharge through
ATM ; Internet based recharging through leading banks ;
Products available on Indiatimes shopping and Rediff
shopping
 Find new applications for current users : Collaboration
with banks to facilitate fund transfer through mobile; Global
Money Transfer.
NEW PRODUCT DEVELOPMENT

 Product quality improvement strategy :


Good mobile coverage.

 Product feature additions strategy : Wap


Services ; EDGE Service; Airtel Live ( Cricket
news, downloads, astrology, travel etc.) ;

 New product development strategy :


Blackberry
MARKET DEVELOPMENT
(Intensive)

  Expand geographically : Entering new


markets in the west (U.K) ; Launching mobile
services in Sri Lanka ; GSM license in Bhutan

 Target new segments : CallHome service for


NRIs living in USA to be in touch with their loved
ones.
DIVERSIFICATION

 Broadband Services.
 Telephone Services - Touchtel.
 Consultancy services to industry verticals
like Banking, Financial services and
Insurance, ITES, etc. to meet their telecom
needs.
FOUR Ps
FIVE PRODUCT LEVELS
 Core Product: Communication;
 Basic Product: Mobile telephony

 Expected Product: Strong network


coverage
 Augmented Product: Caller tunes,
Wallpaper, Ring tones, WAP, SMS
alerts, Voice SMS
 Potential Product:
PRODUCT
 Product Variety:
 Prepaid
 Postpaid
 Value added services
 Blackberry
 Business solutions
PRICE

 Easy payment options. Anytime Anywhere


 Easy billing
 Flexible Credit limit
 Happy recharge ( full talktime everytime)
PLACE

 Operating in 23 circles in India


 Strong distribution network with
approximately 160,000 family of
retailers
 Over 500 exclusive outlets
 Operation in foreign countries
PROMOTION
 Celebrity endorsements ( Sachin Tendulkar,
Amitabh Bachhan, Shahrukh Khan, AR Rehman,
Madhavan,Kareena Kapoor)
 Loyalty rewards
 Lower tariffs
 Discount coupons
 Talk time schemes
 Special season offers
 Innovative advertisement campaigns
 Mass promotion campaigns
 Setting up of exclusive stalls to promote existing
and new products.
 Corporate Social Responsibility: “Satya Bharti
School” providing primary education for
underprivileged children in rural areas.
SEGMENTATION
 Geographic Segmentation : 23 telecom circles
(different tariff for different circles)
 Demographic Segmentation :
 Age : Senior citizen.
 Gender : Women.
 Occupation : Students ( Youth Plan) , Corporate .
 Income: All income groups ( Different plans for various
income groups)
POSITIONING
 AirTel positions itself in the market as a very
reliable, effective and consumer savvy brand
 Positioning as a brand which people can trust in
terms of quality and performances
 Plans to position itself as complete telecom
service provider with a strong presence in global
network
FIVE FORCE ANALYSIS
Potential
entrants
-Entryof Global
Telecom providers

Suppliers Industry Buyers


(supplier Competitors
power) Loyalty shift.
Hutch, BSNL, Idea,
Ericsson – GSM MTNL, Tata Indicom,
Network Reliance
Management
Service Provider
Substitutes
CDMA technology,
Internet
messengers, Net-
to-Phone
COMPETITOR – HUTCH
 Hutch is the second largest cellular operator in
India in terms of revenue.
 Operates in 16 telecom circles.
 Subscriber base : 26.73 Million.
 Market share : 20% of the GSM market.
 Highest average revenue per user in industry.
 Vodafone has acquired a 67% of holding in
Hutch-Essar for US$11.1 billion
SERVICE PORTFOLIO
 Prepaid
 Postpaid
 Calling Cards
 HandyPhone
 Hutch PCO
 Hutch World (GPRS service)
 Hutch services on mobile
 PlanetHutch services
 Mobile E-mail solutions
AIRTEL vs HUTCH
(Revenue Comparison)
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Revenue ( in Crore)

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Airtel Hutch
Airtel Year
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Airtel Hutch
RECOMMENDATIONS
 Airtel should consider acquisition of domestic and local GSM service
providers, thereby increasing its market share. E.g. , acquisition of Spice.
 It has to be quick to adapt to and bring new emerging technologies like
3G and 4G in India at affordable cost.
 It should start Mobile Bill Payment Van services.
 It should put more focus on entering into new countries and establishing
itself as a global brand.
 It should expand its rural network coverage to widen its customer base.
THANK YOU