13-14 PLAYERS causing PRICE WAR in SATURATED INDIAN TELECOM MARKET . WHAT IS THE FUTURE ?????? CONSOLIDATION ????

1. Presented By :- “Study of VAS Products in Telecom Market in India “ Ashish Sharma -17010 Apeejay School Of Management PGDM (Finance & Marketing) 2009-2011 July , 2010

2. ASHISH " GURU BHAI " SHARMA !

4. Topic: 1 Introduction

7. 2010 Introduction :

9. Welcome in the New AVATAR of TELECOM WORLD! India entering 2nd stage of “Telecom Revolution “ . INDIAN TELECOM SECTOR FIRST PHASE OF REVOLUTION : VOICE SECOND PHASE OF REVOLUTION : DATA

11. THE FATHER OF THE NATION - MAHATAMA GANDHI SAM PITRODA SUNIL BHARTI MITTAL THE FATHER OF THE INDIAN CELLULAR PHONE REVOUTION THE FATHER OF THE INDIAN TELEPHONE'S REVOLUTION - Contribution of 3 Leaders in India:

12. Quick Facts : Next Super Power India (March, 2010 ) 15 % 3 % Contribution to India’s GDP. 120 Million 81 Million Internet Users 18 % 7 % Internet Penetration 70 % 52.74 % TeleDensity 10 Million 4 Million Employment to People (Approx. ) Over 26 % 16 % Growth Rate (Approx. ) 344,921 Rs. Crore 100,000 Rs. Crore Market Size (Approx. ) 5-6 Players 13 Number of Players (Approx. ) Over 1 Billion 584.32 Million Mobile Users (Approx. ) 135 Crore 120 Crore Population of India (Approx. ) Projected Trends (In 2015 ) Current Trends (In 2010) Name

13. Impact of Telecom Sector on Indian Economy:

16. Telecommunication : Managerial: “ Telecom is a huge and varied bastion of technologies, companies, services and politics that is truly global in nature.” Technical: “Telecom in the real sense means transfer of information between two distant points in space.”

18. The Indian Telecom Journey : TELECOM NETWORK INFRASTRUCTURE COMPANIES : ALCATEL LUCENT , CISCO & ERICSSON TELECOM EQUIPMENT MANUFACTURERS: NOKIA , SAMSUNG & MOTOROLA TELECOM SERVICE PROVIDER: BHARTI AIRTEL , RELIANCE , VODAFONE & IDEA TELECOM SOLUTIONS PROVIDERS : IBM DAKSH, WIPRO, SPANCO , ARICENT, AEGIS

20. Policy of Government of India : FDI in telecom recently revised to 74%. Government gets 15% of revenues from Unified Licensing Regulator Licensor Judiciary Telecom Regulatory Authority of India Telecom Dispute Settlement Appellate Tribunal Dept of Telecom Unified License Operators Fixed Line Operators GSM 900 & 1800 MHZ Wireless Operators National Long Distance Operators International Long Distance Operators CDMA 1800 MHZ Ministry of Communication & Information Technology

21. Regulatory Framework & Organization Unified Access Licensing Regime (UALR) Access Deficit Charge (ADC) – Subsidising the Infrastructure Cost Universal Service Obligation (USO) – Building Rural Network

23. Telecom Growth Comparison : Total No. of Mobile Subscriber in the year 2015 will be 1000 Million.

24. Different Services of Telecom Sector:

25. Growth of Telecom Network (PSUs & Private ) :

26. Teledensity Growth in India :

27. Wireless & Wireline Subscriber Base in India :

28. FDI in Telecom Sector in India :

29. Market Share of Technology & Connection:

30. Topic: 3 Players of Indian Telecom Industry

32. Market Share: Bharti Airtel Market Leader With 21.84 % Market Share in India : Overall Indian Telecom Industry Market Share : TRAI REPORT : MARCH 2010

33. All India GSM Cell Subscribers- March 2010 (COAI Report) :

34. Battle of Brands- Get Ready for Third World War !!!!!! “ PAISAFICATION “ seems to be the name of the game in mobile telephony. Fighting for the Share of Wallet !!!!!!!!!!! 100 MILLION CUSTOMER MARK - NEW MAGIC NUMBER CONSOLIDIATION "TARIFF WAR" Thirteen Operator causing Ripple Effect & demanding for Innovation/Renovation in Saturated Indian Telecom Market. WHAT IS FUTURE ?????

36. 2 nd PLAYER- RELIANCE COMMUNICATIONS 1 st Rank in CDMA Telecom Market of India with Total Subscriber Base (Both GSM & CDMA) of 102.44 Million & Market Share in CDMA Of 59.39 %. 6 th Rank in Purely GSM Market with Total Subscriber Base of 16.31 Million & Market Share in GSM Market is of 3.87 %. BOTH GSM PLAYER & CDMA PLAYER PAN in 23 Circles. Reliance is again in Hot News after 2002 when it sold its Reliance Handset in only 500 rs. R-Com has launched a new tariff model for its pre-paid customers, which offers Unlimited talk time for a flat monthly fee. ADAG Parent 31,884 Employees Rs 1,032 crore (US$ 219.82 million) Total Equity Rs 102,207 crore (US$ 21.77 billion) Total assets Rs 6,045 crore (US$ 1.29 billion) Net income Rs 9,305 crore (US$ 1.98 billion) Operating income Rs 22,948 crore (US$ 4.89 billion) Revenue Wireless Telephone Internet Television Data Cards Recharge Vouchers Products Anil Ambani (Chairman ) Satish Seth (MD) Key people India Area served Navi Mumbai, Maharashtra Headquarters Dhirubhai Ambani Founder 2004 Founded Telecommunications Industry Public BSE: 532712 Type

37. 3 rd Player – Vodafone Essar 2 nd Rank in Telecom GSM Market of India with Subscriber Base of 100 Million & Market Share of 23.91 %. ( TRAI ,March 2010 Report ) GSM PLAYER PAN in 23 Circles Vodafone ZOOZOO Magic 10,000 Employees Vodafone Group (67%) Essar Group (33%) Owner(s) Mobile networks, Telecom services, Etc. Products Mumbai, Maharashtra Headquarters 1994 Founded Hutchison Essar Predecessor Mobile telecommunications Industry Limited Type

38. 4 TH PLAYER- IDEA CELLULAR GSM PLAYER PAN IN ALL 23 CIRCLES 3 RD Rank in Telecom GSM Market of India with Subscriber Base of 63.82 Million & Market Share of 15.13 % in GSM Market. ( TRAI ,March 2010 Report ) Aditya Birla Group (49.05%) Axiata Group Berhad (15%) Providence Equity (10.6%) Parent Mobile Products Kumar Mangalam Birla (Chairman) Sanjeev Aga (MD) Rajat Mukharjee (VP Corporate Affairs) Key people Santa Cruz East, Mumbai, India Headquarters 1995 Founded Telecommunications Industry Public BSE: 532822 NSE: 532822 Type

39. 5th Player-TATA Teleservices Ltd. (TTSL) 2 ND Rank in CDMA (TATA INDICOM With DOCOMO ) Telecom Market of India with Subscriber Base of 65.94 Million & Market Share of 38.23 % in CDMA Market . IN TELECOM MARKET WITH 3 BRANDS : 1)TATA INDICOM- CDMA PLAYER 2) TATA DoCoMo - GSM PLAYER 3)VIRGIN MOBILE- BOTH CDMA & GSM PLAYER Tata Indicom (CDMA) Tata DoCoM o (GSM) Virgin Mobile India (CDMA/GSM) Divisions Tata Group Parent 350,000 Employees Wireless Telephone Internet Television Products Mr. Ratan N. Tata Chairman) Anil Kumar Sardana (MD) Key people Navi Mumbai, India Headquarters Incorporated 1996 Founded Telecommunications Industry Public (BSE: 532371) Type

40. 6th Player-BSNL BOTH GSM & CDMA 4 th Rank in Telecom GSM Market of India with Subscriber Base of 63.48 Millions & Market Share of 15.05 %. ( TRAI ,March 2010 Report ) BSNL ;- Undisputed Leader in Broadband with 60 % Market Share. It has1.5 Million 3G Users out of 60 Million Total Consumer Base. 357,000 Employees The Government of India Owner(s) ▼ US$ 7.03 billion Revenue Wireless Telephone Internet Television Products Kuldeep Goyal (Chairman) (MD) Key people Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi Headquarters 19th century, incorporated 2000 Founded Telecommunications Industry State-owned Type

41. 7th Player-AIRCEL GSM PLAYER IN PAN in 18 CIRCLE 5 th Rank in Telecom GSM Market of India with Subscriber Base of 36.86 Millions & Market Share of 8.74 %. ( TRAI ,March 2010 Report ) In a bid to raise awareness about the declining number of tigers, Aircel, partnering with World Wildlife Fund ( WWF) India has launched the 'Save Our Tigers' initiative. The campaign, created quite a buzz. 'Stripey the Cub', the face of the Initiative, has over 96,400 fans on popular social networking website, Face book; and the official Twitter page have 3,027 followers already. Maxis Communications(74%) Apollo Hospital (26%) Parent Mobile Telecommunication operator Products Gurdeep Singh, COO Key people Gurgaon Headquarters 1999 Founded Telecommunications Industry Private Type

42. 8th Player –MTNL 7 th Rank in Telecom Market of India with Subscriber Base of 47.84 Million & Market Share of 1.13 %. ( TRAI ,March 2010 Report ) BOTH GSM PLAYER & CDMA PLAYER MTNL provides fixed line telephones, cellular connection of both GSM — Dolphin (Postpaid) and Trump (prepaid) and WLL (CDMA) — Garuda -FW and Garuda-Mobile and internet services Through dialup and DSL — Broadband internet TriBand. The Government of India Owner(s) ▼ INR 1.626 million (2009) Net income ▼ INR 52.895 million (2009) Revenue Wireless Telephone Internet Television Products Kuldip Singh (CMD) Anita Soni (CFO) S.M.Talwar (ED-New Delhi) J.Gopal (ED-Mumbai) Key people Mumbai and New Delhi India Headquarters 1986 Founded Telecommunications Industry State-owned Public NSE: MTNL NYSE: MTE Type

43. 9th Player-UNINOR GSM PLAYER PAN 8 th Rank in Telecom GSM Market of India with Subscriber Base of 42.64 Million & Market Share of 1.01 %. ( TRAI ,March 2010 Report ) With ‘ Ab mera number hai', Uninor tells the world it has arrived. Telenor (67.25%) Unitech Group (32.75%) Parent 2,000 Employees Wireless Telephone Internet Products Stein-Erik Vellan (CEO) Sanjay Chandra (Chairman) Key people Gurgaon, India Headquarters 2009 Founded Telecommunications Industry Joint Venture Type

44. 10th Player- MTS (SSTL) CDMA PLAYER 3 rd Rank in CDMA Telecom Market of India with Subscriber Base of 3.77 Million & Market Share of 2.19 % in CDMA . Sistema (73.71%) Shyam Group (23.70%) Owner(s) CDMA Products New Delhi, Delhi, India Headquarters 2009 as Sistema Shyam TeleServices Limited Founded Mobile telecommunications Industry

45. 11th Player-LOOP MOBILE GSM 10 th Rank in Telecom GSM Market of India with Subscriber Base of 2.84 Million & Market Share of 0.67 %. ( TRAI ,March 2010 Report ) Essar Group (8%) Owner(s) Mobile Telecommunication operator Products CEO Sandip Basu Key people Mumbai Maharashtra , India Headquarters 1994 as BPL Mobile 2009 as Loop Mobile Founded Telecom Industry Private Type

46. 12th Player-S TEL GSM PLAYER 11 th Rank in Telecom GSM Market of India with Subscriber Base of 1 Million & Market Share of 0.24 %. ( TRAI ,March 2010 Report ) S Tel, is a GSM based cellular operator in India. It has a unified services access license in Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir. It is owned jointly by C Sivasankaran (51%) and Bahrain Telecommunications (49%). S Tel Private Limited (S Tel), a new telecom operator in the Indian marketplace, is a joint venture between Siva Group (formerly Sterling InfoTech Group) and Bahrain Telecommunications Company (Batelco). S Tel has acquired Unified Access Services Licenses (UASL) and spectrum to operate in six Category C circles – Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir. These licenses will enable the company to provide Unified Mobile service, wireless broadband and innovative Value Added Services (VAS) covering a population of over 226 million across these circles

47. 13th Player-PING (HFCL) CDMA 4 TH Rank in CDMA Telecom Market of India with Subscriber Base of 0.32 Million & Market Share of 0.19 % in CDMA . HFCL Infotel Ltd. (Infotel) is a "Total Telecom Solutions Provider" offering Fixed Line telephony (Telephone Services), Mobile telephony, Broadband Services, Customized Data Services and Value Added Services. Infotel provides a world class telecom experience when it comes to technology, products, customer services, Launched in Punjab in the year 2000 under the Connect brand name. Infotel has set up state-of-the-art Networks with coverage in over 200 towns of Punjab with an extensive optical fiber network coverage of over 4,000 km. Today, Infotel is one of Punjab's leading private sector telecommunication services providers with an aggregate customer base of 5, 10,263 as on 31st Dec 09.

48. 14th Player-VIDEOCON GSM 100 DAYS-100 CITIES Videocon Mobile Service., is a GSM based cellular operator in India based in Mumbai. Videocon Telecommunications Limited, a Videocon group company offers GSM mobile services GSM service under the brand name Videocon. The Videocon Group is a $4 billion, global business conglomerate with a strong presence in Household Consumer Goods, Oil & Gas, Retail, Telecom, DTH and the Power sector. 5,000 (2010) Employees ▲ US$276 million (2010) Net income ▲ US$4 billion (2010) Revenue Consumer Electronics Home Appliances Components Office Automation Mobile phones Wireless Internet Petroleum Satellite television Power Products Venugopal Dhoot (Chairman) K. R. Kim (CEO) Key people Aurangabad, Maharashtra, India Headquarters Nandlal Madhavlal Dhoot Founder(s) 1979 Founded Conglomerate Industry Public (BSE: 511389) Type

49. SWAN TELECOM RE- NAMED ETISALAT DB TELECOM INDIA PVT. LTD GSM IN 15 CIRCLES Etisalat will shortly be launching its service. As of April 2010, signal testing has already begun in a few circles of Chennai [IND 922], Delhi & NCR [IND 913], Maharashtra & Goa [IND 918], Mumbai [IND 916] and Gujarat[IND 914]. Etisalat has signed a deal with bollywood actor Aamir khan which is biggest endorsement till date in the Indian advertising market for Rs. 350 million(35 Crores) for a three year contract. In May 2010, Etisalat is in talks to buy 25% stake in Reliance Communications. Listed 15th Player- ETISALAT ▲ $8.4 billion (FY2009) Revenue Mohammed Hassan Omran Chairman Mohammed Al Qamzi CEO Key people United Arab Emirates Headquarters United Arab Emirates Government Founded Public Type

50. Topic :4 Analysis of Bharti Airtel

51. News Paper Headlines :

52. Sunil Bharti Mittal : FIRST GENERATION ENTREPRENURS He is a Pioneer, a Dreamer, an Achiever. Mittal prides himself on a string of firsts: "the first push-button, the first cordless, the first answering machines, the first fax machines“. Asia's self-made billionaires . In 2007, he was awarded the Padma Bhushan, India's third highest civilian honor. THE GAME CHANGER. SUNIL BHARTI MITTAL is an Indian Telecom Mogul, Philanthropist and the Founder, Chairman and Managing Director of Bharti Enterprises. Mobile Phone Service License Operator in Delhi 1992 UMBRELLA BRAND -AIRTEL 1995 Fax Machines, Cordless Phones and Other Telecom Gear. 1990 Electronic Push Button Phones 1982 Portable Generators 1982 Bicycle Crankshaft Business 1970

53. Airtel Brand : Taglines :

54. Airtel Brand Logo :

55. Brand Ambassadors : 2008 2003 2002 2009 2010

57. Four Strategic Business Units : The mobile business offers services in India, Sri Lanka and Bangladesh. 1) Mobile The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. 2 ) Telemedia 3 ) Enterprise The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos. 4 ) Digital TV The Digital TV business provides Direct-to-Home TV services across India.

58. Vision : 2010 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” .

59. Company Profile : PARTNERS : Singtel Equity Partner {Strategic} IBM Daksh, Hinduja TMT, Teleperformance, Mphasis, Firstsource & Aegis Call Centre Operations IBM Information Technology Nokia Siemens, Juniper, Cisco, Alcatel Lucent, ECI, Tellabs Telemedia & Long Distance Services Nokia Siemens, Ericsson, Huawei Mobile Services Network Equipment

60. Factsheets : BSE: INR 267.00 Stock Quote US$ 25 billion. Market Capitalization The Stock Exchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) Listings 30,000 TOTAL NO. OF EMPLOYEE 3,797,530,096 as at Mar 31, 2010 Shares in Issue Rs. 160,268 million (year ended March 31, 2010 - Audited) Rs. 151,678 million (year ended March 31, 2009 - Audited) As per US GAAP Accounts Proportionate EBITDA Rs. 396,150 million (year ended March 31, 2010-Audited) Rs. 369,615 million (year ended March 31, 2009-Audited) As per US GAAP Accounts Proportionate Revenue

61. Organization Structure :

63. Group Companies :

64. Analysis of AIRTEL : 1)Product Life Cycle (PLC) Analysis. 2)SWOT Analysis. 3)BCG Matrix. 4)Porter Model. 5)Ansoff Matrix. 6)PEST Analysis. 7)Marketing Mix.

65. 1 )Product Life Cycle Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments (Rs.) Sales and Profits (Rs.) Sales and Profits Over the Product’s Lifetime Thirteen Operator causing Ripple Effect & demanding for Innovation/Renovation in “Saturated Indian Telecom Market “.

69. 3 ) BCG MATRIX : AIRTEL VODAFONE RELIANCE BSNL IDEA CELLULAR AIRCEL TATA INDICOM VIRGIN MOBILE M A R K E T G R OWT H Rate in % H I G H L O W HIGH LOW RELATIVE MARKET SHARE

70. BCG Matrix for Bharti Airtel : LOW HIGH HIGH LOW Mobile Services DTH & IPTV Broad Band

71. 4 ) Porter's Five Force Analysis :

73. 3. Suppliers Bargaining Power LOW

75. Porter’s Generic Strategy : Porter has identified three types of generic strategies that help a firm to cope with competitive forces and outperform other firms in the industry. These strategies are:- 1. Overall Cost leadership strategy 2. Differentiation strategy, and 3. Focus strategy

76. 5) ANSOFF MATRIX Market Penetration: Entered in Broadband and fixed line market. Market Development: Looking for overseas market. Product Development: IPLC products. Diversification: Outsourcing.

80. 7 ) MARKETING MIX : 4 P’s P-Products. P- Price. P- Place. P- Promotion. MARKETING MIX PRODUCT Cell Phones PRICE Lower End Segment to Super Premium End. PLACE Exclusive Showroom, Shopping Mall, Chain Store PROMOTION Print Media, Mass Media & Electronic Media

82. Topic : 5 Major Market Trends

83. Major Emerging Trends: Changing Face of Indian Mobile Consumer

84. Handset Market in India: India’s Mobile Handset Market is Rs. 50,000 Crore Annually with 30 Handset Maker Company. About 100 Million Phones were sold in India in 12 Months to June 2009 say IDC Data. 10-12 Million Handsets are sold Per Month in India making India “Mobile Hub” after “Small Car Hub”.

85. Telecom Services : PMRTS INTERNET VSATS RADIO PAGING GMPCS BASIC SERVICES MOBILE SERVICES

86. Technology :

87. Growth Factors :

88. Emerging Trends : 3G USSD GPRS MMS SMS Voice

91. Topic : 6 Project Findings

95. Indian Mobile VAS Industry valued at more than Rs 7000 Crore has so far been dominated by Entertainment Service. Focus should be on “Utility Based VAS “ not on Entertainment VAS .

97. 4 Pillars of VAS:

98. Four Component of VAS :

99. Drivers of VAS:

100. Challenges of VAS:

101. Trends in VAS:

103. Mobile Internet Users in India

105. Main Challenges: GPRS •Problems Faced by English knowing Mobile Application Users. •Data connectivity; it is far too expensive, slow, and unreliable •Mistrust about the mobile operator’s Value Added Services (VAS) offerings. •The problem of awareness of existence of mobile applications and services. •Opportunity in Enabling Non-English Mobile Data Services. (Language Barrier) Problems Faced by Indian Mobile Application Developers • Diversity of Handsets (50 % Mobile Handsets are ULCH-Ultra Low Cost Handsets. More than 50 % Handsets in India are not GPRS enabled. Traditional V/S. Mobile 1)Screen Sizes & Resolution 2)Input Devices 3)Connection Speed 4)Cookies , JavaScript , Flash Conclusion: 1.Technical limitations 2. Different User Experience 3 .Alternative Solutions Needed

106. GPRS problems :           2 days to resolution Customer dissatisfaction GPRS Trouble-shooter, captures the customers interaction with the network in real time and reveals where the problem on the network lies. The problem could be on any of the nodes in the network. BTS BSC SGSN GGSN APN Call helpdesk? Use self help? Customer

107. Expectation of A Consumer from GPRS Provider : WHAT I WANT FROM GPRS ALWAYS CONNECTIVITY LOW PRICE HIGH SPEED UNLIMITED USAGE GOOD SERVICES & BEST PLANS

111. Critical Success Factor : Mobile Internet : BETTER NETWORK BETTER DEVICES BETTER PRICES BETTER EDUCATION

114. Topic : 7 Conclusion :

118. Topic : 8 Recommendations & Suggestions :

123. For Youth Group: Advertisement Campaign: “ Yuva Bharat ka Yuva Airtel “. Although Sarman Joshi endorsement is successful today but for both Voice Service & Data Service Two Different famous Youth like Chetan Bhagat & Abhinav Bindra could create in Positioning Airtel as “Yuva Bharat ka Yuva Airtel .” For Working Women Group : Sania Nehwal would be the most appealing Star for Working Women Group.

124. Topic : 9 Learning's & Experiences

127. ASHISH SHARMA E-Mail: [email_address] [email_address] ANY QUESTIONS ?????????