Trench Warfare How a trench battle would happen No Man’s Land A A A BBB.
Telecom Warfare The battle for Survival
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Transcript of Telecom Warfare The battle for Survival
Telecom Warfare The battle for Survival
The sequence of events…… The ‘per-second-billing’ revolution by Tata
Docomo’s GSM service The introduction of 50p pulse flat by Rcom - a wave
of lowest tariff buzz in the country enthralled every one
A damage of Rs 35,000 crore to Bharti’s valuation RCom meanwhile witnessed its valuation declining
by 21 % at Rs 14,169 crore. Such a huge loss just a result to per sec and 50p
pulse. Did anybody imagined it????
Testing the pocketsOur listed telcos collectively lost Rs 54,000 cr Idea lost Rs 3534 crore MTNL lost Rs 522 croreTata Teleservices (Maha) Rs 531 croreTata Communication Rs 370 croreSpice Communication Rs 227 crore
Industry ScenarioThe telecom subscriber base in India reached the
525.65 mn markOverall Tele-density in India - 44.87 (Wireline-3.18)Fastest Growing Sector – CAGR 22% (2002-07)Second Largest Telecom Market - Lowest tariffLack of Transparency in Spectrum & License
Allocation
Industry Scenario
Difficult to differentiate service offerings or
customer service
Huge License Fees to be paid upfront
High gestation period
Rapidly changing technology
Infrastructure Setup Cost - High
Indian Telecom Market
Hyper competition…….???
It occurs when technologies or offerings are so new that standards and rules are in flux.
This results in competitive advantages that cannot be sustained.
In response, companies must constantly compete in price or quality, or innovate in supply chain management, new value creation, or have enough financial capital to outlast other competitors.”
The Person
Big Daddy of the industry Takes care of you where ever you goMost respected and classic personalityReliable and dependable family memberVisionary ,looking beyond the horizonTruly, a global Indian
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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”
Bharti Airtel Largest Private Integrated Telecom Company in India
3rd Largest Wireless Operator in the World
Bharti Airtel formerly known as Bharti Tele-ventures Limited (BTVL) is a JV between Singtel and Bharti Telecom. (31.9 % stake)
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Meaning behind the logo
Airtel logo is a strong ,contempory, a confident symbol of a brand that is always ahead of the rest , always ‘In-touch’ and on customer’s side.
It incorporates two solid, red rectangular forms whose counter-form creates an open doorway.
The title case lettering with its capital ‘A’ reinforces the leadership position.
The red dot cues in the focus on innovation.
Express yourselfExpress yourself
Mile Stones of Bharti Airtel• Bharti Airtel was established as Bharti Tele-Ventures, in 1995.
• The company offered its initial public offering in 2002.
• Vodafone acquired a 10% stake in Bharti Tele-Ventures for around $1.5 billion, in 2005.
• Bharti Tele-Ventures renamed itself to Bharti Airtel Limited, in 2006.
• Airtel launched its Iphone in august 2008.
• Airtel successfully tested 3G services in Delhi, Mumbai and Bangalore and are waiting for the spectrum to be allocated.
• MTN -Bharti merger begins to take shape in June -09
• MTN Bharti deal called off in Sept -09
• Joins the pricing war at the end of November - 09
Integrated Telecom CompanyWireless Services
– 2G/3G– VAS, Blackberry
Telemedia Services– Fixed Line– Broadband– DTH / IPTV
Enterprise Services– Carrier– Corporate
Passive Infrastructure– Bharti Infratel– Indus Tower
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Price
Customer based pricing strategies.Flexible pricing mechanism Late adopter to price warFinally changed to per second billing with
reduced roaming rates.
Investor Relations :- http://www.bhartiairtel.in
Place
• It has wide and extensive presence even in the remotest areas.(Pan India coverage)
• Airtel Customer Care Touch Points
• Distributors like E.g. Paan shops, grocery stores, chemists, outlet etc.
Promotion• Large scale print and video advertising.• Brand endorsers - Big celebrities like SRK Saif,
Kareena • In 2002 Airtel got its Signature tune from A.R.
Rehman, this signature tune is the most downloaded tune in India.
• Ads based on the emotional connect
Tagline evolution
Current market share - Market Leader Pan India Network Recognized Globally Brand and corporate image Focused Leadership Managerial personal Promotional effectiveness
Business Strength
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Airtel – Strategy
MANTRA : Focus on Core Competencies and Outsource the rest!
Ericssion – Networking IBM – IT Mphasis – call centre Bharti Infratel – Tele Infra
Core Competenci
es
Future Strategies
Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally.
Bharti Airtel to invest US$ 126.5 million to ramp up its networks in the Assam and Northeast circles
Technology leadership is a must – Airtel must ensure that its dependency 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.
Innovate. Stimulate
.
Liberate.
To be the most customer-focused mobile service brand, continuously innovating to help liberate our
customers from the shackles of time & space
Till about eight years ago, the corporate name used to be the butt of many jokes.
???
BATATA!!
A three-way joint venture between the Birla Group, Tata and AT&T, it was called the
Birla-AT&T-TATA
INORGANIC GROWTH STRATEGY
8 YEAR DEAL WITH IBM WORTH $19.2 MILLION
40.8 % STAKE
PRESENT STRATEGY
• Present in 21 of 22 circles, latest entry - ASSAM
MAHARASHTRA
UTTAR PRADESH
HARYANA
• Special pricing/ tariffs for each circle during entry
• From basic voice & Short Message Service (SMS) services to high-end value added services such as Mobile TV, Games etc - IDEA is seen as an innovative, customer focused brand
'Best celebrity endorsement award' at NDTV Tech Life Awards
“I remember, I salute, I pledge” Talk for India at Citizen’s Park on November 26.
• Idea is simultaneously conducting indoor WiMAX trials in three cities - Pune, Bangalore and Kochi.
• Eyes rural circles• `cover gaps quickly'
Entered other circles in 2005
STATUS QUO
NGN expertise of Maxis telecom in more mature markets like Malaysia especially with 3G & WiMAX.
$10 billion - investment till 2011Rs. 20 billion for 3G spectrum despite
economic slowdown.
2.88%
4.65%
A special handset for senior citizens. This will only have four buttons; one each for the doctor and police with two for calling two relatives
VAS & DATA SERVICES
• To be a nation wide player by end of 2009
• To acquire more number of subscribers
• To increase its tower numbers
• 3G• Data play, VAS• Roping in more partners• Banking on increasing
churn rate• Focus on youth
FUTURE???
NO CLEAR RURAL STRATEGY
BRAND PERSONALITY
Make the most of now
Vodafone
• Cute• Friendly• Trend setter• Approachable• Youth student
Vodafone
• Youth oriented Brand • Boy - girl • Quirky – Zoo Zoo• Friendly – Happy to help • Fun – Make the most of now • Hugely popular – 323 million subscribers
world wide
• Red: For the passion and spirit• Rock Solid: dependable and empathetic• Restless: always challenging to improve and
being funny.• Glocal brand
Vodafone
Original Corporate Logo ofVodafone before 1997 New Corporate Logo of
Vodafone as of 1997.
• It represents a quotation mark within a circle. With 'O' in the Vodafone logotype being opening and closing quotation marks, suggesting conversation. Its logo is a true representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering.
• The name Vodafone comes from Voice data fone, chosen by the
company to "reflect the provision of voice and data services over mobile phones.“
• Products and services offered by Vodafone Voice Mobile telecommunication services Mobile Text centre (Messaging Services – SMS, PXT and MMS) Data Services Fixed line Fixed line internet access Device (Handsets and Vodafone mobile connect)
Mr. Vittorio Colao of Italy is the new CEO of Vodafone after Mr. Arun Sarin took retirement on 29th July, 2008. Mr. Asim Ghosh is the CEO of Vodafone Essar, India
Rank Brand Sector
Trademark Value /
Enterprise Value(%)
BrandScore Brand Rating
1 Coca-Cola Beverages 39% 94 AAA+
2 Microsoft Software 15% 91 AAA+
3 Citibank Financial Services 13% 79 AA+
4 Wal-Mart Retail 15% 55 A
5 IBM Computers 23% 70 AA-
6 HSBC Financial Services 14% 88 AAA
7 GE (General Electric) Miscellaneous Manufactur 4% 77 AA+
8 Bank of America Financial Services 12% 79 AA+
9 Hewlett-Packard Computers 24% 77 AA+
10 Marlboro Tobacco 14% 67 AA-
11 Vodafone Telecommunications 17% 74 AA
12 Gillette Cosmetics/Personal Care 12% 91 AAA+
13 Intel Computers 22% 79 AA+
14 L'Oreal Cosmetics/Personal Care 39% 77 AA+
15 Google Internet 19% 90 AAA+
16 Toyota Auto Manufacturers 9% 69 AA-
17 Nokia Wireless Equipment 35% 89 AAA
18 McDonalds Retail-Restaurants 36% 92 AAA+
19 Pepsi-Cola Beverages 22% 74 AA
20 Dell Computers 53% 89 AAA
• Product and services in India– World calling card– Post paid services – Prepaid services– Vodafone handy phone– Vodafone PCO
Campaign s
• 9xm• IPL• 24 hour 20th Sept 07• Puzzles • Inter circle • F& F
• Partner of Mc laren , England team & Uefa formerly Man U
• Sometimes capable off resorting to crazy ad campaigns
Challenges
• Amazing image not really translating to increased subscribers
• Increase competition with similar offerings• Lack of presence in Broadband , WLL market
BSNL
• Boring• Dull• Slow to react • Mammoth• Resists change• Babu
Bsnl• Known by many names for various avatars Cellone, Bfone and Dataone
now all known as BSNL• Like s the Liril Girls Priety now Deepika • Have a lot money Rs 10,000 Crore cash Reserves• Was known to be very unreliable but now known as low cost alternative • Have better Pan India presence than all other networks only present in
Mumbai & Delhi where you will find sister concern MTNL • Also known as Mini Ratna esteemed in Indian PSU Sector • Known to have had the best network in villages • Used to have the best Std plans before all the new players came into the
market and started talking bout one paise • Only 2 Co s provide 3g in India right now at affordable rates
BSNL
• Have a lot of advantages that rivals don t have in terms of 3G one year lead @30 ps per min for video call 50 ps Std
• Despite this no longer popular last year had a market share of 17% this year 13.6 %
• BSNL is a confused personality with an obsolete outlook that youth nowadays don’t connect with , hence it has been looking for foreign strategic partner with AT& T interested
Strategy
• To remain market leader in providing world class Telecom and IT related services at affordable prices and to become a global player.
• Zain• Swan• Value added services• Tele infra • Quality of services • Technology • I- Phone
Products • BSNL LANDLINE • PHONE PLUS SERVICE • NEW TELEPHONE CONNECTION • PERMANENT CONNECTION • CONCESSION IN RENTALS • SHIFT OF TELEPHONE • TRANSFER OF TELEPHONE • TELEPHONE TARIFF
• BSNL MOBILE • POSTPAID • PREPAID • UNIFIED MESSAGING • GPRS/WAP/MMS • DEMOs • TARIFF • SMS & BULK SMS • BSNL WLL
• INTERNET SERVICES NETWORK • BROADBAND • TYPES OF ACCESS • WI-FI • CO-LOCATION SERVICE • BSNL WEB HOSTING • INTERNET TARIFF • DIAL UP INTERNET • SMS& BULK SMS BSNL BROADBAND
• REGISTER ONLINE • TARIFF • CHECK USAGE • BSNL MANAGED NETWORK SERVICES • BSNL MPLS-VPN • ISDN
Bsnl • STRENGHTS• It has a competitive pricing policy.• BSNL has the support of Government• BSNL has a good Financial standing• BSNL maintains solid partnerships and is the go to person in the industry in
terms of infra • • WEAKNESSES:• Although it is investing too much in R&D but its marketing skills are below
average. • Although the industry is growing very fast ,at the same time it is losing its
customers as well because the competitors are eroding it s market share • Inability to convert it s advantages into strengths
• OPPORTUNITIES:• It can retain its customers by improving its marketing skills.• Leverage on it s 3G advantage • The Group can strengthen and expedite research and
development in order to deliver products of top international standards.
• THREATS:• Price war • New competition• The other threat can be the market saturation in terms of business
opportunities available in the conventional telecom business.
ACCESSIBLE
UNRELIABLEUNETHICAL
Rs.
HIGH COST
LOW VARIETY
VERY LOW COST
HIGH VARIETY
INCOMING
15 SECONDS PULSE RATE
Outgoing Calls at 10paise
One time membership
Java enabled, multimedia ready
VALUE ADDED SERVICES
BIGGEST PROMOTIONAL SCHEME EVER 1 MILLION SUBSCRIBERS IN 10 DAYS
TAPPING INTO INTERNAL RESOURCES
DHIRUBHAI AMBANI ENTREPRENEURSHIP
PROGRAM
ADVERTISING – EDUCATING MASSES AND
EVOKING EMOTIONS
DIFFERENT SECTIONS OF SOCIETY
Today.........We Have Mobiles coz of Reliance!!!!!!!!!!by pratap on Jun 18, 2009 06:26 PM | Hide replies
Considering poor/middle class peopleReliance Produced Mobiles for Everyone...........
.
today everyone have mobile just because of RELIANCE.........
POOR people have mobile just because of RELIANCE.........
I and YOU keeps 2-3 mobiles just because of RELIANCE.........
Call rates are reducing day by day just because of RELIANCE.........
Other network has reduce the cost of sim and call rates just because of RELIANCE.........
.
Today a Rikshawala has Mobile just because of RELIANCE.........
OTHERWISE WE WILL BE TALKING 8.50 Rs./Min for Outgoing and 4.50 Rs/Min for Incoming.
There may be little bit bad network but one who bring every hand Mobile was......RELIANCE
Am i right or wrong???
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MARKET LEADER IN JAPAN
WORLD LEADER IN VAS
LEADER IN MOBILETECHNOLOGY
HUGE MARKET PENETRATION
TEMPORARY PRICE WAR
DIFFICULTY IN SCALING UP
WHY NEW BRAND IDENTITYDifferentiated
tariff plans
DO co mo
BRAND AMBASSADORS
ENTRY INTO INDIA
STRATEGIC PARTNERSHIP
MORE SHARE – MORE CAPITAL
BOTH GSM AND CDMA – MARKET PENETRATION
TECHNOLOGY FROM WORLD LEADER
External factor – Govt.’s Role 74% as FDI cap in telecom sector Lack of effective guidance from the
govt The Govt. is as confused as ever State owned BSNL loses market
share (47% to 14%) Sam Pitroda, to the rescue of the 3G
auction
External factors
Govt. to garner Rs 35000 cr from the 3G auction and set up dedicated OFC N/w for the defense forces.
Falling Handset Prices.
11 digit mobile number – beyond 600mn subscriber base.
External factors- 3G3G - auction -January 14, 20103G subscribers in India is likely to touch 90
mn by 2013 WiMAX users are expected to reach 7 mn by
the end of 2011 (Gartner)Google eyeing opportunities in the 3G.It might
participate in the auction.
External factors- MNPTo be launched in various phases from Jan,10On payment of Rs19 the user retain his number
and switch to any other service provider.Game changer – to take competition to a different
levelTo increase the customer churning – Low Switching Costs
The future Falling ARPU
Intense Competition & Shortage of Bandwidth
New Players coming in India – MTS, Uninor
Increase in mobile presence – Payments, ads Consolidation in the industry ??? See long-term potential – Rural and technology
Who will win?
The Indian urban market is 80-90 % penetrated. The winner would try to reach penetration levels of 70% in the rural markets as well (rural tele density at 16%)
Would build a strong and vast network. In the fight to reduce tariffs the companies have to bear in mind the aspect of network quality too.
3G, Wimax…The ability to embrace new technologies fastest will be of huge importance.
Profitability…Irrespective of anything, the companies have to ensure a positive balance sheet and generate cash-flow.
THANK YOU !!
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