Evolution of Telecom In India

Go-ahead to the CDMA technology

IND

IA

Private players were allowed in Value Added Services

National Telecom Policy (NTP) was formulated

1992

1994

1997

Independent regulator, TRAI, was established

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

1999

2000

2002

BSNL was established by DoT

ILD services was opened to competition

Internet telephony initiated

Reduction of licence fees

2003

Calling Party Pays (CPP) was implemented

Unified Access Licensing (UASL) regime was introduced

Reference Interconnect order was issued

2004

Intra-circle merger guidelines were established

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

2005

FDI limit was increased from 49 to 74 percent

Attempted to boost Rural telephony

2006

Number portability was proposed (pending)

Decision on 3G services (awaited)

2007

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

ILD – International Long Distance

Number portability approved

2009

Demand for VAS & Broadband services Among Youth

28 % Urban Population

Rapid Urbanization

Rising Income level

Changing Demographics

Source: Mckinsey Report

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

Technologies

• 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

“Touch tomorrow”• 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

“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

•Massive advertising through―Google AdSense―Microsoft adCenter

PUBLICITY AND EVENTS

Sponsored events• Delhi half marathon• Delhi golf tournamentSponsored TV shows• Big Boss• KBC• Indian Idol

PUBLICITY AND EVENTS

•Sponsored 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

Process

Network

Connectivity

Data GPRS

Weakness

Branding Image

Distribution problem

Limited product

portfolio- Only Mobile

Lack of Competitive

Strength

Limited Budget

SWOT

Opportunity

Preference of GSM over

CDMA

New Specialist application

Rural Telephony

New Market, Vertical,

Horizontal

Competitors`

Vulnerabilities

Threat

Political destabilization.

New Entrants

IT Development

Market Demand

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

•Customer Generation - Tapping in to Internal

Resources

•Dhirubhai Ambani Entrepreneurship Programme – A

New Way to Market

•Advertising – Educating Masses and Evoking

Passions

•RWorld – Reliance Way of Putting the World in Your

Hands

•Product Innovations - Connecting with Every

Section of Society

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

•An 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