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STRATEGIC ANALYSIS

OF TELECOMMUNICATION SECTOR
PRATIK PANDEY
13HM24
COMPANIES
TELECOM SECTOR
In 1881, Oriental Telephone Company Limited of
England was the first company to open telephone
exchanges at Calcutta, Bombay, Madras and
Ahmedabad.
Now, India is the world's second-largest
telecommunications market, with 922 million
subscribers and service revenues of Rs. 54,284
crore as on 31st December 2013 (TRAI).
Major Companies are BSNL, MTNL, RELIANCE,
TATA DOCOMO, IDEA, AIRCEL, VODAFONE etc.

TELECOM SECTOR








Source: (Press Release No. 13/2014)TRAI.
Number of Telecom Subscribers







Source: (Press Release No. 13/2014)TRAI.

Service Provider wise Market Share as
on 31st January, 2014.









Source: (Press Release No. 13/2014)TRAI.

Service Provider wise net subscriber
addition during January, 2014











All data's in Millions.
Source: (Press Release No. 13/2014)TRAI


Service Provider wise Market Share of wire line
subscribers as on 31st January, 2014













Source: (Press Release No. 13/2014)TRAI

Company Profiles
COMPANY

INFORMATION

BSNL

BHARTI AIRTEL

RELIANCE
COMMUNICATONS

IDEA CELLUAR

INDUSTRY
Telecom Telecom Telecom Telecom

TYPE
State-owned
enterprise
Public company
BSE: 532454
NSE:BHARTIARTL
Public company
NSE: RCOM
BSE: 532712

Public
BSE: 532822
NSE: IDEA

FOUNDED 1
st

October,2000
7 July 1995
2004
1995
HEAD
QUARTERS
New Delhi,
India

New Delhi,
India

Mumbai, India Santacruz East,
Mumbai, India
KEY PEOPLE R.K. Upadhyay
(Chairman & MD)

Sunil Bharti
Mittal
Anil Ambani
(President)

Kumar Mangalam
Birla
(Chairman)

.
COMPANY

INFORMATION

BSNL

BHARTI AIRTEL

RELIANCE
COMMUNICATONS

IDEA CELLUAR
Products
Fixed line and
mobile telephony,
Internet services,
digital television,
IPTV
Fixed line and mobile
telephony,broadband
and fixed-line
internet services,
digital television and
IPTV
mobile
telephony,broadba
nd and fixed-line
internet services,
digital television
and IPTV

Mobile
telephony,
Wireless
broadband
Revenue Rs.279.33
billion(2011-12
Rs.419.31 billion
(2012
Rs.218 billion
(2013)
15389.00 crore
(2011)
Net income Rs. 88.51 billion
(201112)
Rs.53,700
million (2012)
Rs.6.72 billion
(2013)
844.60 crore
(2011)


Employees
244,891 (as on 19
November 2013)
21,299 (2012)
18,070 (2013) 6,481 (2010)
Owner(s) Government of
India
Bharti Enterprises
(52.7%)[3][4]
SingTel
(15.57%)[3][4]
Vodafone (4.4%)

Reliance Group
Aditya Birla Group
(49.05%)
Axiata Group Berhad
(19.96%)
Providence Equity
(10.6%)

BSNL
MISSION:
Be the leading telecom service provider in India with global
presence.

To Provide world class telecom infrastructure to develop
country's economy.
Leveraging technology to provide affordable and innovative
products/services across customer segments

VISION:
To become the largest telecom Service Provider in Asia

BSNL
Tagline/ Slogans Connecting India; BSNL hai to bharosa hai
USP SMS rates are reasonable; high speech quality and is capable of
delivering high bandwidth using DSL technologies
Segment Senior citizens, Conservative audiences
Target Group Middle class from urban and rural areas
Positioning Most reliable and low priced service
S W
T
Strengths
Alliances with Ericsson and Cisco
Systems
IT alliances with HP Compaq,
interconnecting alliances
Selling capacity of 25 million per
annum
Has an excellent network coverage
across India







Opportunities

Strong strategic alliances with
network companies may help BSNL
Communication to focus on marketing
its services

Untapped rural markets





Threats

Competitors low price offering

2. Saturation point in Basic telephony
service

3.Mobile Number Portability
O
Weaknesses

Suffers from high call dropping rates and
a reduction in brand equity

Has a major presence only in C Circle

Low brand visibility and low brand
loyalty











SWOT ANALYSIS
BHARTI AIRTEL
MISION:

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:
To be globally admired for telecom services that
delight customers
BHARTI AIRTEL
Tagline/ Slogans Express yourself
USP Top brand in India and Brand connect
Segment Elite class of people; Corporates
Target Group Elite class above 25 years age; YUPS(Young Upward
Professionals)
Positioning Aspirational and lifestyle brand; Premium category
S W
T
Strengths
Largest Telecom operator in the
world with 207.8
Only Indian operator, with VSNL, that
has an international submarine cable
4.High brand visibility
5.Strong advertising with celebrity
brand ambassadors







Opportunities
Fast expanding cellular market

Latest and low cost technology

Untapped rural market






Threats


O
Weaknesses

Price competition from BSNL and
MTNL

Untapped Rural Market








New entrant's low price offering

Saturation point in Basic telephony
service

Mobile Number Portability






SWOT ANALYSIS
Reliance Communications
MISSION:
Meeting and exceeding Customer expectations with a
segmented approach
Establishing, re-engineering and automating Processes to
make them
customer centric, efficient and effective

VISION:
By 2015, be amongst the top 3 most valued Indian
companies, providing Information, Communication &
Entertainment services, and being the industry benchmark
in Customer Experience, Employee Centricity and
Innovation

Reliance Communications

Tagline/ Slogans

Karlo Duniya mutthi mein

USP
Connection with handset

Segment
Lower and lower middle

Target Group
Villagers, poor, Daily wagers

Positioning
World in your hands
S W
T
Strengths
Flexible plans
Good advertising
High brand visibility
Celebrity brand ambassadors
Ability to attract customers with
various plans







Opportunities
Fast expanding cellular market

Latest and low cost technology

Untapped rural market






Threats


O
Weaknesses

Price competition from BSNL and
MTNL

Untapped Rural Market








New entrant's low price offering

Saturation point in Basic telephony
service

Mobile Number Portability






SWOT ANALYSIS
IDEA CELLUAR
Mission:
We will delight our customers while meeting their
individual communication needs time anywhere.
We survive because of our customers.

VISION:
To be the most customer-focused mobile service
brand, continuously innovating to help liberate
our customers from the shackles of time & space.
IDEA CELLUAR
Tagline/ Slogans An idea can change your life
USP Big brand with great service
Segment Middle and upper middle class
Target Group Students (majority out station), workers, labourers
Positioning Smartness that comes with using Idea
S W
T
Strengths
.Flexible plans
Good advertising
High brand visibility
Celebrity brand ambassadors
Ability to attract customers with
various plans







Opportunities
Fast expanding cellular market

Latest and low cost technology

Untapped rural market






Threats


O
Weaknesses

Price competition from BSNL and
MTNL

Untapped Rural Market








New entrant's low price offering

Saturation point in Basic telephony
service

Mobile Number Portability






SWOT ANALYSIS
COMPARISON
COMPANY

ANALYSIS

BSNL

BHARTI AIRTEL

RELIANCE
COMMUNICATIONS

IDEA CELLUAR




Strengths
IT alliances with HP
Compaq,
interconnecting
alliances
Selling capacity of
25 million per
annum
Has an excellent
network coverage
across India

Largest Telecom
operator in the
world with 207.8

Only Indian
operator, with
VSNL, that has
an international
submarine cable

Flexible plans

Good
advertising

Ability to attract
customers with
various plans

Good advertising

High brand
visibility

Celebrity brand
ambassadors




Weakness
Suffers from
high call
dropping rates.

Low brand
visibility and low
brand loyalty

Price
competition
from BSNL and
MTNL

Untapped Rural
Market

Price
competition
from BSNL and
MTNL

Untapped Rural
Market

Price competition
from BSNL and
MTNL

Untapped Rural
Market

COMPARISON
COMPANY

ANALYSIS


BSNL

BHARTI AIRTEL

RELIANCE
COMMUNICATIONS

IDEA CELLUAR



Opportunities
Adoption of
Next Generation
Networks (NGN)
is global .

Untapped rural
markets

Fast expanding
cellular market

Latest and low
cost technology

Untapped rural
market

Fast expanding
cellular market

Latest and low
cost technology

Untapped rural
market
Fast expanding
cellular market

Latest and low
cost technology

Untapped rural
market




Threats
Low price of
Competitors


Mobile Number
Portability

Saturation point
in Basic
telephony
service

Mobile Number
Portability

Saturation point
in Basic
telephony
service

Mobile Number
Portability

New entrant's
low price
offering


Mobile Number
Portability

Porter five forces analysis
Porter five forces analysis
Threats of new entry : Low

Bargaining power of Suppliers : Medium

Bargaining power of Buyers : High

Internal and External rivalry : High

Threats of Substitutes : High



Critical success factors
Product quality, employee attitudes(particularly
BSNL), manufacturing flexibility, and brand
awareness.

Explore rural market

Proper market segmentation

Better network services (Reliance and BSNL)

Competitive Advantages
BSNL has an advantage in that it does have to pay the 8-12 per cent
revenue share that other private operators do to the government as
licence fees.
BSNL does not have to pay the large share of the revenue as
interconnect charges for routing the landline calls and STD calls.
In 2011, Idea acquired 3G licences for 11 circles for Rs 5,800 crore.
Reliance is a well known brand and it adds advantage in terms of
brand visibility.
Bhartis acquisition of Zain, gives Bharti the access to Africa.
CONCLUSION
From the study it is found that PSUs like BSNL
and MTNL has lost its grip in telecom sector
because of poor governance and very less
marketing strategies. Private sectors are gaining
more market share. Though the threats of new
entry are very less, the completion among the
existing players is very high. The swot analysis
and Porters five forces model shows very little
difference among the companies, because the
companies provide exactly the same products
and services.