Evolution of Telecom In India

Private players were allowed in Value Added Services Independent regulator, TRAI, was established 1994 1997 1999 2000 BSNL was established by DoT ILD services was opened to competition Go-ahead to the CDMA technology 2002 Internet telephony initiated Reduction of licence fees Calling Party Pays (CPP) was implemented 2003 Unified Access Licensing (UASL) regime was Reference introduced Interconnec t order was issued Intra-circle merger guidelines were Attempted establishedto boost Number portability was proposed (pending) Number portabili ty approve d

INDIA

2004

Rural telephony 2005

2007 2006 2009

1992

National Telecom Policy (NTP) was formulated

NTP-99 led to migration from high-cost fixed license fee to lowcost revenue sharing regime

Broadband policy 2004 was formulated— targeting 20 million subscribers by 2010

FDI limit was increased from 49 to 74 percent Decision on 3G services (awaited)

Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry. ILD – International Long Distance

Changing Demographics
Demand for VAS & Broadband services Among Youth 28 % Urban Population Rapid Urbanization Rising Income level
Source: Mckinsey Report

Technologies
CDMA – Already there are big players in this segment Reliance , Tata 3G – Value added services potential still to be tapped fully 2G/3G – GSM Currently commands 70% of mobile subscribers in India

• Pradeep (09020242026) • Govindrajan (09020242049) • Pritam Bhattacharya (09020242050)

Vision 2010
• By 2010 Airtel will be the most admired brand in India: – Loved by more customers – Targeted by top talent – Benchmarked by more businesses

Vision 2020
• To build India's finest business conglomerate by 2020 • Supporting education of underprivileged children through Bharti Foundation • Strategic Intent:
– To create a conglomerate of the future by bringing about “Big Transformations through Brave Actions.”

Mission
• “ 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
 

“We will leverage our strengths to execute complex global-scale projects to facilitate leading-edge information and communication services affordable to all individual consumers and businesses in India. We will offer unparalleled value to create customer delight and enhance business productivity. We will also generate value for our capabilities beyond Indian borders and enable millions of India's knowledge workers to deliver their services globally.”

MISSION
To attain global best practices and become a world-class communication service provider-guided by its purpose to move towards greater degree of sophistication and maturity. To consistently achieve high growth with the highest levels of productivity. To be a technology driven, efficient and financially sound organisation. To contribute towards community development and nation building. To encourage ideas, talents and value systems.

Core Values of AirTel
• Performance • Dynamism • Leadership

Core Values of Reliance
• • •

Customer first Operate with honesty and integrity Treat every individual with dignity and respect

TARGETING
• • • • • • Elite Up market professionals Entrepreneur with business plans Low income mass category Youth Women and senior citizens by post paid connection

TARGETING
• • • • •

Lower-middle, Middle & Upper class Rural areas Entrepreneur with business plans Low income mass category Women and senior citizens by post paid connection

POSITIONING
• • • • “Power to keep in touch” “Touch tomorrow” “Live every moment” “Express yourself”

TIME LINE

“Power to keep in touch”
• Positioned in premium category aimed at elite class of society • Convey power of instant communication • Perception of aspirational and lifestyle brand • Airtel decided that the brand should always connote leadership–be it in network, innovations, offerings, services • Sponsored games like Golf

• New campaign launched to facilitate entry into new markets • Started to capture mass market • A new logo for Airtel- Red , black and white colors with ‘Airtel’ enwrapped in an eclipse. • Logo indicated core value of the brand: leadership, performance and dynamism

“Touch tomorrow”

“Live every moment”
• Launched to capture the imagination of the customer • Projects a persons desire to spontaneously communicate through words, emotions, sights, sounds, thoughts and actions over boundaries, distances and geographies

“Express Yourself”
• In 2003, Airtel repositioned its brand with “Express yourself” campaign • Changed its logo to give more energetic and younger look • Highlight capability of Airtel’s performance and network coverage • Launched in regional language

TIME LINE

First Mover Advantage

First Mover Advantage

RURAL STRATEGIES
• Airtel follows “Match-box strategy” • The firm expands regularly in Bihar, piggybacking on 300 distributors and more than 50,000 retail outlets selling Airtel prepaid cards • Covers over 4,00,000 villages and hopes to expand to other 1,00,000 by 2009

RURAL STRATEGIES
• Reliance follows “Post-card strategy” • Covers over 4,50,000 villages and

hopes to expand to other 1,00,000 by 2015

AIRTEL ADVERTISEMENT
• Airtel basically uses two appeal to connect to the users
– Emotional – Humorous

• Total advertising budget of Airtel is Rs. 150 crore

RELIANCE ADVERTISEMENT
• Reliance basically uses two appeal to

connect to the users ― Patriotism ― Emotions
• Total advertising budget of Reliance is Rs.

130 crore

The Ad diagnostics score helps to understand how far the Ad has been able to break the clutter

INTERNET ADVERTISING
• Massive advertising through
– Google AdSense – BidVertisers

INTERNET ADVERTISING
assive advertising through ― Google AdSense ― Microsoft adCenter

PUBLICITY AND EVENTS
Sponsored events • Delhi half marathon • Delhi golf tournament Sponsored TV shows • Big Boss • KBC • Indian Idol

PUBLICITY AND EVENTS
ponsored events
― IPL ― World Cup Cricket

OUTCOME OF THE CAMPAIGN

SWOT
Strengths
• • • • • • • Largest Telecom Player in India - ~80Mn, 22.6% Market Leader Strong Leadership – Sunil Bharti Mittal Recognized Globally Pan India Presence Strong Financials Strong Brand Image – Marketing Team
• •

Weakness
Outsourcing of Core Systems Network Coverage (earlier)

SWOT
Opportunities
• Bharti Infratel – Cutting Down cost in Rural area • Match Box Strategy – Scale of Penetration • Current Tele-Density – 30.6 is still low among developing countries • Low Broadband Penetration, Rural Telephoney
• • •

Threats
India centric – Major revenues from India Falling ARPU & AMOU Intense Competition & Shortage of Bandwidth • • New Players coming in India Uncertain Economic conditions

SWOT
Strength
 Low Entry Cost  Commission Structure  Fast Activation

Weakness
 Branding Image  Distribution problem  Limited product

Process
 Network  Connectivity  Data GPRS

portfolio- Only Mobile
 Lack of Competitive

Strength
 Limited Budget

SWOT
Opportunity
 Preference of GSM over

Threat
 Political destabilization.  New Entrants  IT Development  Market Demand

CDMA
 New Specialist application  Rural Telephony  New Market, Vertical,

Horizontal
 Competitors`

Vulnerabilities

AIRTEL STRATEGY

Airtel – Strategy
MANTRA : Focus on Core Competencies and Outsource the rest!

Strategy
• Partner with leading players in telecommunication across the globe. • Managed to work with the best of domain specialists globally and emerge as a world class entity. • Operational contracts with marquee vendors and strategic investors ranging from private equity investors to global telecom giants.

Outsourcing deals in 2004
• Ericsson was given the mandate to provide, manage and maintain the equipment as well as provide quality assurance in Airtel‘s then 13 mobile circles. • IBM was given the mandate to handle the back office requirements of Airtel’s presence in India

RELIANCE STRATEGY

Reliance – Strategy
MANTRA : To reduce the cost to the consumer, thus focusing on a market driven by volume!

Strategy
ustomer Generation - Tapping in to Internal Resources

hirubhai Ambani Entrepreneurship Programme – A New Way to Market

dvertising – Educating Masses and Evoking Passions

FUTURE STRATEGIES

Future Strategies
• Translate its expertise in Indian markets to other emerging economies. • This could call for acquisitions globally. • Technology leadership is a must – Airtel must ensure that its reliance on GSM technology does not render it obsolete. • Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.

FUTURE STRATEGIES

Future Strategy
n enterprise Netway revolution will bring the possibility to provide broadbandexperience to every desktop A convergence revolution will provide high-speed networks to millions of homes

Road Map – Growth Path
VPN & VoIP

WiMAX

3G

2G/2.5G

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