Recent Trend in Telecommuncation

7/31/2019 Recent Trend in Telecommuncation

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Preface

The underlying aim of the seminar on contemporary issue as an integral part of M.B.A

programme is to give presentation by the students on the issue. The topic of my seminar is

Recent Trends in Telecommunication Sector and contains introduction of

telecommunication sector , key players of telecommunication industry, segmentation of

telecommunication industry, & its growth & contribution to GDP.

My report has also contains the future prospectives of telecommunication Industry.

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Executive Summary

World-class telecommunications infrastructure is key to economic and socialdevelopment of the country. It is critical for the development of InformationTechnology; sectors like services, travel, tourism, hotels, and airlines are linkedto communications and would get a fillip. It is also anticipated that a major partof the GDP of the country would be contributed and supported by this sector.

The cellular industry has taken off fast and had a major positive impact on theeconomy and lifestyles of people. It is in the limelight and is seeing rapid growthrates each year with strong underlying demand drivers.

India is one of the fastest growing telecom markets in the world with an additionof more than 6 million connections per month. FDI inflow in Indian Telecom

sector is the highest among all sectors. It is emerging as telecom manufacturinghub.

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Table of Contents

S.No. Particulars Pg.No.

1 INTRODUCTION TO TELECOMMUNICATION. 1

2 HISTORY OF THE TELECOM SECTOR IN INDIA 3

3 GROWTH OF TELECOM IN INDIA 8

4 SERVICES OF TELECOM 9

5 WHAT IS CDMA & GSM 12

6 INTRODUCTION OF TELECOM COMPANIES AND

IT`S MARKETING STRATEGIES

14

7 TARGET MEASURE IN 11TH PLAN FOR TELECOM

SECTOR

43

8 FUTURE PLANS 45

9 FINDINGS/CONCLUSION 46

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INTRODUCTION TOTELECOMMUNICATION

Telecommunications is the transmission of data and information between

computers using a communications link such as a standard telephone line.

Typically, a basic telecommunications system would consist of a computer or

terminal on each end, communication equipment for sending and receiving data,

and a communication channel connecting the two users. Appropriate

communications software is also necessary to manage the transmission of data

between computers.

1994 was a watershed in the history of Indian telecom sector, which ranked

sixth in the world after USA, china, Japan, Germany, and France in terms of

number of installed fixed lines. That year saw the introduction of new telecom

policy (ntp) of government of India that envisaged a vast change in Indian

telecom scenario and reflected the governments desire to bring Indian telecom at

par with the rest of the world.

This policy change was followed up by a large

number of other initiatives, including introduction of ntp 1999, that indicated

continuing commitment of the government to liberalise the sector. The various

policy changes also reflected government of Indias realisation that the huge

funds needed to undertake gigantic and extensive upgrade of telecom

infrastructure in all the three segments of wire line, wireless and data services,

would require active participation of private sector.

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The government also accepted in principle that unless a progressive movement

to free market system in telecom sector was ensured, in which market forces and

not the government would decide who would be the winner in each segment,

faster roll out of innovative products and services and lower prices to the

consumers would not be realized in the near future.

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HISTORY OF THE TELECOM

SECTOR IN INDIA

The telegraph act of 1885 governed the telecommunications sector. Under thisact, the government was in-charge of policymaking and provision of services .Major changes in telecommunications in India began in the 1980s. Under theSeventh Plan (1985-90), 3.6 percent of total outlay was set aside forcommunications and since 1991, more than 5.5 percent is spent on it (Figure 1).The initial phase of telecom reforms began in 1984 with the creation of Center forDepartment of Telematics (C-DOT) for developing indigenous technologies and

private manufacturing of customer premise equipment. Soon after, the MahanagarTelephone Nigam Limited (MTNL) and Videsh Sanchar NigamLimited(VSNL)were set up in 1986.

When telecom reforms were initiated in 1994, there were three incumbents in thefixed service sector, namely DoT (Department of Telecom), MTNL and VSNL.Of these, DoT operated in all parts of the country except Delhi and Mumbai.MTNL operated in Delhi and Mumbai and VSNL provided international

telephony for the customers of India.

Given its all-India presence and policy-making powers, the DoT enjoyed amonopoly in the telecom sector prior to the major telecom reforms. However,subsequent to the second phase of reforms in 1999, which included restructuringthe DoT to ensure a level playing field among private operators and theincumbent, the service-providing sector of DoT was split up and calledDepartment of Telecom Services (DTS). DTS was later corporatized and renamedBharat Sanchar Nigam Limited (BSNL). This meant separation of the incumbent

service provider from the policy-maker. Broadly, DoT is now responsible forpolicy-making, licensing and promotion of private investments in both telecomequipment and manufacture and provision of telecom services. BSNL, acorporate body, is responsible for the provision of services for the customers ofIndia.

A crucial aspect of the institutional reform of the Indian telecom sector wassetting up of an independent regulatory body in 1997 the Telecom Regulatory

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Authority of India (TRAI), to assure investors that the sector would be regulatedin a balanced and fair manner. TRAI has been vested with powers to ensure itsindependence from the government. The government has retained the licensingfunction with itself. The main issue with respect to licensing has not beenwhether it should be with the regulator but that the terms and conditions of

licensing should involve consultations with TRAI to ensure transparency in thebidding process Some of the main functions of TRAI include fixing tariffs fortelecom services, dispute-settlement between service providers, protectingconsumers through monitoring of service quality and ensuring compliance tolicense conditions, setting service targets and pricing policy.

Further changes in the regulatory system took place with the TRAI Act of 2000that aimed at restoring functional clarity and improving regulatory quality. TRAIcan frame regulations and can levy fees and charges for telecom services asdeemed necessary. The regulatory body also has a separate fund (called the TRAIGeneral Fund) to facilitate its functioning. To fairly adjudicate any dispute

between licensor and licensee, between service provider, between serviceprovider and a group of consumers, a separate disputes settlement body was setup called TDSAT.

Actually, telecommunications is not a new concept. It began in the mid-1800swith the telegraph, whereby sounds were translated manually into words; then thetelephone, developed in 1876, transmitted voices; and then the teletypewriter,developed in the early 1900s.

Since the 1960s, telecommunications development has been rapid and widereaching. The development of dial modem technology accelerated the rate duringthe 1980s. The 1990s have seen the greatest advancement intelecommunications..

Deregulation and new technology have created increased competition andwidened the range of network services available throughout the world. This

increase in telecommunication capabilities allows businesses to benefit from theinformation revolution in numerous ways, such as streamlining their inventories,increasing productivity, and identifying new markets. In the following sections,the technology of modern telecommunications will be discussed.

Private Participation in Telecom :-

For the provision of basic services, the entire country was divided into 21telecom circles, excluding Delhi and Mumbai (Singh et. al. 1999). With telecommarkets opened to competition, DoT and MTNL were joined by private operators

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but not in all parts of the country. By mid-2001, all six of the private operators inthe basic segment had started. Table 2 shows the number of village publictelephones issued by private licensees by 2002.

After a recent licensing exercise in 2002, there exists competition in most service

areas. However, the market is still dominated by the incumbent. In December2002, the private sector provided approximately 10 million telephones in fixed,WLL (Wireless Local Loop) and cellular lines compared to 0.88 million cellularlines in March 1998 (DoT Annual Report, 2002). 72 per cent of the total privateinvestment in telecom has been in cellular mobile services followed by 22 percent in basic services. After the recent changes, the stage is now set for greatercompetition in most service areas for cellular mobile Over time, the rise incoverage of cellular mobile will imply increased competition even for the basicservice market because of competition among basic and cellular mobile services.

Teledensity and Village Public Phones (VPTs) :-

India's rapid population increase coupled with its progress in telecom provisionhas landed India's telephone network in the sixth position in the world and secondin Asia (ITU). The much publicized statistic about telecom development in Indiais that in the last five years, the lines added for basic services is 1.5 times thoseadded in the last five decades! The annual growth rate for basic services has been

22 percent and over 100 percent for internet and cellular services. As Dossani(2002) argues, the comparison of teledensity of India with other regions of theworld should be made keeping in mind the affordability issues. Assuminghouseholds have a per capita income of $350 and are willing to spend 7 percentof that total income on communications, then only about 1.6 percent ofhouseholds will be able to afford $30 (for a $1000 investment per line).

Teledensity has risen to 4.9 phones per 100 persons in India compared to theaverage 7.3 mainlines per 100 people around the world. Figure 2 shows thegrowth rate of fixed and cellular mobile subscription between 1998 and 2002.Although, the coverage is still much higher in urban areas - 13.7 in urban areascompared to1.4 in rural areas, the government has made efforts to connectvillages through village public telephones (VPT) and Direct Exchange Lines(DEL). This coverage increased from 4.6 lakhs in March 2002 to 5.10 lakhs inDecember 2002 for VPT and from 90.1 lakhs in March to 106.6 lakhs inDecember 2002 for DELs. BSNL has been mainly responsible for providingVPTs; more than 84 percent of the villages were connected by 503610 VPTs with

private sector also.

The overall telecom growth rate is likely to be high for some years, given theincrease in demand as income levels rise and as the share of services in overall

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GDP increases. The growth rate will be even higher due to the price decreaseresulting from a reduction in cost of providing telecom services. A noteworthyfeature of the growth rate is the rapid rate at which the subscriber base for cellularmobile has increased in the last few years of the 1990s.

Foreign Participation:-

India has opened its telecom sector to foreign investors up to 100 percent holdingin manufacturing of telecom equipment, internet services, and infrastructure

providers (e-mail and voice mail), 74 percent in radio-paging services, internet(international gateways) and 49 percent in national long distance, basic telephone,cellular mobile, and other value added services (FICCI, 2003). Since 1991,foreign direct investment (FDI) in the telecom sector is second only to power and

oil - 858 FDI proposals were received during 1991-2002 totaling Rs. 56,279crores (Figure 4) (DoT Annual Report, 2002). Foreign investors have been active

participants in telecom reforms even though there was some frustration due toinitial dithering by the government. Until now, most of the FDI has come in thecellular mobile sector partly due to the fact that there have been more cellularmobile operators than fixed service operators. For instance, during the period1991-2001, about 44 percent of the FDI was in cellular mobile and about 8

percent in basic service segment. This total FDI includes the categories ofmanufacturing and consultancy and holding companies

Tariff-setting :-

An essential ingredient of the transition from a protected market to competition isthe alignment of tariffs to cost-recovery prices. In basic telecom for example,

pricing of the kind that prevailed in India prior to the reforms, led to a highdegree of cross-subsidization and introduced inefficient decision-making by bothconsumers and service-providers. Traditionally, DoT tariffs cross-subsidized thecosts of access (as reflected by rentals) with domestic and international longdistance usage charges (Singh et. al. 1999). Therefore, re-balancing of tariffs -reducing tariffs that are above costs and increasing those below costs - was anessential pre-condition to promoting competition among different service

providers.

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TRAI issued its first directive regarding tariff-setting following NTP 99 aimed atre-balancing tariffs and to usher in an era of competitive service provision.Subsequently, it conducted periodic reviews and made changes in the tariff levels,if necessary. Table 4 shows the current level of telephone charges in Indiaeffective from January, 2003. Re-balancing led to a reduction in cross-subsidization in the fixed service sector. Cost based pricing, a major departurefrom the pre-reform scenario, also provides a basis for making subsidies moretransparent and better targeted to specific social objectives, e.g. achieving theUSO.

Service Quality :-

One of the main reasons for encouraging private participation in the provision ofinfrastructure rests on its ability to provide superior quality of service. In India, asin many developing countries, low teledensity resulted in great emphasis beinglaid on rapid expansion often at the cost of quality of service. One of the benefitsexpected from the private sector's entry into telecom is an improvement in thequality of service to international standards. Armed with financial and technicalresources, and greater incentive to make profits, private operators are expected to

provide consumers value for their money. Telephone faults per 100 main linescame down to 10.32 and 19.14 in Mumbai and Delhi respectively in 2002-03

compared to 11.72 and 26.6 in 1997-98 (Figures 6 and 7). Quality of service wasidentified as an important reform agenda and TRAI has devised QOS (Quality ofService) norms that are applicable across the board to all operators (Singh et. al.1999).

Growth of Telecom in India

1994 - National Telecom Policy 1994 announced

Aug 1995 - Kolkata became the first metro to have a cellular network

1997 - Telecom Regulatory Authority of India was setup

1999 - Tariff rebalancing exercises gets initiated

March 1999 - National Telecom Policy 99 announced

Aug 1999 - License fee (revenue share) reduced from

provisional 15% to 12%, 10% & 8% on Circle wise basis.

2000 - TRAI Act amended & separate tribunal

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proposed

Jan 2001 - TDSAT started functioning

Jan 2001 - Policy announced for additional licenses in

Basic and Mobile Services

Jan 2001 - Limited mobility allowed to Basic Services

(CDMA spectrum allotted to Basic Servic Operators)

Oct-2002 BSNL entered in to GSM cellular operation

19th October, 2002. Made incoming call free & initiated

tariff equalization process

Tariff for GSM cellular mobiles reduced

Nov 2003Unified Access (Basic & Cellular) Service License (USAL)

introduced as a first step

towards Unified License Regime

Technology neutral and allows provisioning

any kind of service

Apr 2004License fee reduced by 2% across the board for all the access

licenses.

Services

Electronic mail (e-mail) is a message transmitted from one person to anotherthrough computerized channels. Both the sender and receiver must have access to

on-line services if they are not connected to the same network. E-mail is now oneof the most frequently used types of telecommunication for various purposes.

Voice mail is similar to an answering machine in that it permits a caller to leave avoice message in a voice mailbox. Messages are digitized so the caller's messagecan be stored on a disk of a personal computer.

The Internet is a continuously evolving global network of computer networksthat facilitates access to information on thousands of topics.

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Facsimile (fax) equipment transmits a digitized exact image of a document overtelephone lines. At the receiving end, the fax machine converts the digitized data

back into its original form.

Videoconferencing involves the use of computers, television cameras, and

communications software and equipment. This equipment makes it possible toconduct electronic meetings while the participants are at different locations.

The General Packet Radio Service (GPRS) is a new non-voice value addedservice that allows Mobile Phones to be used for sending and receiving data overan Internet Protocol (IP)-based network. GPRS as such is a data bearer thatenables wireless access to data networks like the Internet, enabling users to accessE-mail and other Internet applications using Mobile PhonesWith GPRS you can enjoy a continuous wireless connection to data networks

(Internet) and access your favorite web sites, entertainment services and otherweb applications.GPRS is an extended service of GSM Network adding the ability to surf theInternet on your phone at slightly higher speeds. GPRS Internet surfing iscomparable to dial-up Internet service in it's speed, operating at around 4 to 5Kilobytes per second.Surfing the net on your mobile isn't exactly cheap compared to residentialInternet services. It is generally billed by how much data you transfer and it canget costly!

Multimedia Messaging Service (MMS)

With GPRS and services based on GPRS introduced, there has been renewedspark in this sector. However not all service operators are offering the service asyet. The quality of the pictures has scope to improvement as well. Cameracompatibility in cell phones is a feature in demand for new purchases. New phone

purchases are generating demand for camera phone compatibility and accessories.Onset of faster data delivery technologies such as GPRS(general packet radio service) and multimedia messaging is a demand driver.Sales of camera phones across the world are expected to touch 147 million by2009, says a survey conducted by international research and consulting firmStrategy Analytics. This is against sales of 16 million camera phones witnessedlast year.

Dial-in Services

Many cellular service providers offer a number of dial-in services which are veryuseful in day to day life like Dial for a Cab, Pizza, Delivery, Flowers, Weather,

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Astrologer, Ask me service, Flight Information On Line, Food On Line,Ticket On Line, Vastu On Line, Dentist On - Line.

Short Messaging Services (SMS)

SMS (text messaging) allows a short message to be sent and received on cellphones, including from the Internet mail server. SMS became a paid service froma free/ fixed charge service. The cellular tariffs are bound to rise in the wake oftermination charges being introduced for SMS. SMS had become very popular tokeep in touch even when calls could not be taken. Services available from manyof the world's GSM networks today - in addition to simple user generated textmessage services - include. (More information about SMS can be found in GSMTechnology). SMS contributes 12 per cent of the revenues for cellular operatorsat the national level. The volume of short messages grew by over three timesduring the year 2002, with the figure touching 2.45 billion, up from 806 million

messages in the year 2001.

Some services on SMS include information on bill payment, cricket scores, news,sport, financial, language and location based services, stocks and share prices,mobile banking facilities, leisure booking services, mobile internet, mobileinformation, astrology.

Information services have not taken off as expected in the boom times. FederalBank customers can receive automated alerts on transactions in their accounts no

matter where they are. SMS is the only value added service, which has shownconsistent growth. Others like among others havent made much headway. Tomake SMS more attractive, companies are taking it beyond just being a value-added service by offering various information services

ranging from billing information to horoscopes, news, flight information andbanking services. With more content, graphics and multimedia, bigger and betterterminal displays, enhancements to security and appropriate privacy, use of SMSis expected to accelerate to even greater levels.

The beauty of SMS is the fun element attached to it and the price, which is farlower than voice communication. It is non-invasive, instant and direct and it has

potential to replace other modes of communication like fax, email and paging.Text messaging becomes much more attractive when theres a need tocommunicate with someone internationally.

IDEA Cellular launched Music Messaging Service in Gujarat where subscriberswould be able to send musical messages in various languages including Gujaratialong with a personalised message in their own voice.

Other Services

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A variety of Ring tones are now available even on the Internet and a certain priceper tone is charged for downloading the same. Web sites also send customizedring tones by SMS.Online Services Live news is offered by Reliance on its WLL service. Live newsis sent and can be heard as is read out and the voice quality is very good. Calling

line identity, Automatic Facsimile, Multi Party Calling, Call Forward, BarringCalls, Call Waiting are services available on cell phones. Emails can be sent andreceived between cell phones and mail servers.

What is CDMA & GSM

In cellular service there are two main competing network technologies: GlobalSystem for Mobile Communications (GSM) and Code Division Multiple Access(CDMA). Cellular carriers including Sprint PCS, Cingular Wireless, Verizon andT-Mobile use one or the other. Understanding the difference between GSM andCDMA will allow you to choose a carrier that uses the preferable networktechnology for your needs.The GSM Association is an international organization founded in 1987, dedicated

to providing, developing, and overseeing the worldwide wireless standard ofGSM. CDMA, a proprietary standard designed by Qualcomm in the UnitedStates, has been the dominant network standard for North America and parts ofAsia. However, GSM networks continue to make inroads in the United States, asCDMA networks make progress in other parts of the world. There are camps on

both sides that firmly believe either GSM or CDMA architecture is superior tothe other. That said, to the non-invested consumer who simply wants bottom lineinformation to make a choice, the following considerations may be helpful.Coverage: The most important factor is getting service in the areas you will beusing your phone. Upon viewing competitors' coverage maps you may discoverthat only GSM or CDMA carriers offer cellular service in your area. If so, there isno decision to be made, but most people will find that they do have a choice.

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Data Transfer Speed: With the advent of cellular phones doing double and tripleduty as streaming video devices, podcast receivers and email devices, speed isimportant to those who use the phone for more than making calls. CDMA has

been traditionally faster than GSM, though both technologies continue to rapidlyleapfrog along this path. Both boast "3G" standards, or 3rd generation

technologies.

Subscriber Identity Module (SIM) cards: In the United States only GSM phonesuse SIM cards. The removable SIM card allows phones to be instantly activated,interchanged, swapped out and upgraded, all without carrier intervention. TheSIM itself is tied to the network, rather than the actual phone. Phones that arecard-enabled can be used with any GSM carrier.Roaming: For the most part, both networks have fairly concentrated coverage inmajor cities and along major highways. GSM carriers, however, have roamingcontracts with other GSM carriers, allowing wider coverage of more rural areas,

generally speaking, often without roaming charges to the customer. CDMAnetworks may not cover rural areas as well as GSM carriers, and though they maycontract with GSM cells for roaming in more rural areas, the charge to thecustomer will generally be significantly higher.International Roaming: If you need to make calls to other countries, a GSMcarrier can offer international roaming, as GSM networks dominate the worldmarket. If you travel to other countries you can even use your GSM cell phoneabroad, providing it is a quad-band phone (850/900/1800/1900 MHz). By

purchasing a SIM card with minutes and a local number in the country you are

visiting, you can make calls against the card to save yourself internationalroaming charges from your carrier back home. CDMA phones that are not card-enabled do not have this capability, however there are several countries that useCDMA networks. Check with your CDMA provider for your specificrequirements.The chief GSM carriers in the United States are Cingular Wireless, recentlymerged with AT&T Wireless, and T-Mobile USA. Major CDMA carriers areSprint PCS, Verizon and Virgin Mobile. There are also several smaller cellularcompanies on both networks.

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INTRODUCTION OF TELECOM

COMPANY

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INTRODUCTION

Telecom giant Bharti Airtel is the flagshipcompany of Bharti Enterprises. The Bharti Group has a diverse business portfolioand has created global brands in the telecommunication sector. Bharti hasrecently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU withWal-Mart for the cash & carry business. It has successfully launched aninternational venture with EL Rothschild Group to export fresh agri products

exclusively to markets in Europe and USA and has launched Bharti AXA LifeInsurance Company Ltd under a joint venture with AXA, world leader infinancial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited,Indias largest integrated and the first private telecom services provider with afootprint in all the 23 telecom circles. Bharti Airtel since its inception has been atthe forefront of technology and has steered the course of the telecom sector in thecountry with its world class products and services. The businesses at Bharti Airtel

have been structured into three individual strategic business units (SBUs) -Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile

business provides mobile & fixed wireless services using GSM technology across

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23 telecom circles while the Airtel Telemedia Services business offers broadband& telephone services in 94 cities. The Enterprise services provide end-to-endtelecom solutions to corporate customers and national & international longdistance services to carriers. All these services are provided under the Airtel

brand.

BUSINESS DIVISIONS

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of Indiaand is the largest mobile service provider in the country, based on the number ofcustomers.

The group focuses on delivering telecommunications services as an integratedoffering including mobile, broadband & telephone, national and internationallong distance and data connectivity services to corporate, small and medium scaleenterprises.

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The group offers high speed broadband internet with a best in class network.With Landline services in 94 cities we help you stay in touch with your friends &family and the world.

The Company compliments its mobile and broadband & telephone services withnational and international long distance services. It has over 35,016 routekilometers of optic fiber on its national long distance network. For internationalconnectivity to east, it has a submarine cable landing station at. For internationalconnectivity to the west.

MARKETING STRATEGY

An awkward question. A difficult answer. Anembarrassing truth. A flattering lie. A frank yes. A blunt no. A warm hello. A curtgoodbye. A sincere sorry. Heartfelt thanks. Make the most of every moment.Leave nothing unsaid. Express Yourself.

Airtel Spells End of Distance in India

Creates an India without boundaries

Liberates national long distance calling

Redefines national roaming

Makes mobile telephony more affordable

New Delhi, April 28, 2009: Reiterating its commitment to make mobiletelephony more affordable, Airtel today announced unprecedented tariffreductions on STD and Roaming services for its over 62 million customers.

Airtel has reduced its STD rates dramatically to Re 1.00/ minute from the earlierRe 1.50/ minute, benefiting all Airtel customers who make long distance calls.The new tariffs will be effective from April 30, 2009.

Airtel has also redefined the roaming regime in the country. Airtel customers willnow be able to receive a call while roaming at Re 1/minute, as compared toRe1.75/minute at present. Further, while roaming, Airtel customers can make an

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outgoing local call at Re1/minute and an STD call at Re 1.50/minute. This willhelp create an India without boundaries, making communication with loved oneseasier and more affordable.

Mr. Manoj Kohli, President & CEO, Bharti Airtel Ltd said, Airtel has today

taken another step to take forward Indias telecom story powered by enhancedaffordability. 800 million Indians are now closer than ever before. This initiativewill particularly benefit rural customers and underlines our commitment to thenations growth.

Mr. Sanjay Kapoor, President, Mobile Services, Bharti Airtel, added, Thisinitiative spells the end of distance for our existing and prospective customers.With 70% STD customers in India using less than 5 minutes/month on STD callsand 80% mobile customers not using their phones while roaming, we have a

compelling customer proposition.

I am delighted that we are leading this endeavor, which strengthens ourstrategic plank of affordability. I am confident that this will drive growth andusage in the Indian telecom industry.

Airtel has always been a front-runner in leading affordability in theindustry, one of the many reasons why over 62 million customers prefer itsservices. This revised tariff further reinforces Airtels commitment to make

mobile telephony more affordable. The 700-million strong rural markets in Indiais the biggest single market in the world and Airtel is rapidly expanding itsfootprint in the rural areas of the country. It has already connected over 3.2-lakhvillages and plans to reach 5 lakh by 2010. This rapid roll out is witnessing alarge number of customers joining Airtels network from the rural areas of thecountry. Therefore, these tariff initiatives will help catalyze efforts to maketelephony more affordable for all customers across the country and furtherreinforce Airtel as the industry leader in both affordability and availability.

Industry reports indicate that education, tourism and travel will be keygrowth driver of the future. Data shows that Airtel remains committed to ensuringthat communication continues to help facilitate cultural, social and commercialexchanges to the benefit of its customers. The reduced call tariffs will be awelcome relief to the increasing number of people who are taking up educational,

professional or commerce opportunities in different parts of the country. Bridgingdistances, the revised call tariffs will empower Airtel customers to talk more at anaffordable cost.

Earlier, Airtel initiatives like the Re.200 Recharge, Easy Charge,Lifetime, and Easy Lifetime & Super Lifetime Prepaid have revolutionized theIndian market in terms of creating customer value and Airtel will continue to

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come up with offerings that facilitate an affordable and available mobileexperience

INTRODUCTION

BSNL Telecom Factories are located at sevenplaces viz. Jabalpur, Richhai, Bhilai Kolkata, Gopalpur, Kharagpur, Mumbai inIndia.

Telecom Factory Wright Town, Jabalpur was

established as Telegraph workshop during year 1942 as a measure of dispersalof activities from Kolkata during World War II to meet the requirement ofDOT (then P & T Department). Telegraph workshops were converted intoTelecom Factory organization in 1968.

Over all control of the Telecom Factory, Jabalpur Circle isexercised by CGM (in SAG Grade), Telecom Factory, Jabalpur. The CGMTelecom Factory, Jabalpur is directly reports to Director (Planning & NS), Bharat

Sanchar Nigam Limited Board, New Delhi.

Business Divisions

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MARKETING STRATEGIES

Visions drive consequences.Principles drive results.

Key is to base vision on principles.

- Stephen R Covey.

We often talk of marketing & Sales and oftenuse it interchangeably without understanding the difference in it. Marketing iseverything we do to get and leverage a client relationship. Marketing strategy isbroad and includes all of the following: -

Discovering what product, service or idea customers want. Producing a product with the appropriate features and quality.

Pricing the product correctly.

Promoting the product; spreading the word about why customers shouldbuy it.

The concepts surrounding both selling andmarketing also differ. There is a need for both selling and marketing approachesin different situations. One approach is not always right and the other always

wrong - it depends upon the particular situation.

In a marketing approach, more listening toand eventual accommodation of the target market occurs. Two-waycommunication (sometimes between a salesperson and a customer) is emphasizedin marketing so learning can take place and product offerings can be improved.

A salesperson using the sales concept, on theother hand, sometimes has the ability to individualize components of a sale, but

the emphasis is ordinarily upon helping the customer determine if they want theproduct, or a variation on it, that is already being offered by the company. In thesales approach, not much time is spent learning what the customer's ideal product

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would be because the salesperson has little say in seeing that their company'sproduct is modified. Furthermore, they aren't rewarded for spending timelistening to the customer's desires unless they have a product to match theirdesires that will result in a sale.

The 7Ps for service marketing (Product, price, place, promotion, physicalevidence, people & process) are the means to attain, nurture, & retain the

customers and not the end.

Business Development.

Business development units have been giventhe task to develop and nurture long-term relations with corporate houses. ManyMoUs have been signed. Bulk bills are being issued. One-point payments are

being realized for multiple service locations. Key Account Manager Concept hasbeen introduced. All this requires change of mindset in addition to the skills ofmarketing & sales. Do we have skilled manpower? Is ourorganization setupapt for better results? The staff expense to revenue ratio could be a goodindicator.

No doubt our revenues are up. Profit hasincreased. But consider the marketing budget we have in comparison to others.Even with this little budget many circles are unable to utilize it. We need to probeourselves. Corporate office has permitted delegation of up to 70% of Circle

budget to SSAs. Does it mean that our budget planning is wrong? How should weallocate marketing budget and which parameter to weigh?

Per DEL/Mobile

Acquisition cost

Life time value

Competitor spend

Growth targets

Life Time Value You cant give people pride, but you canprovide the kind of understanding that makes people look to their inner strengthand find their own sense of pride.

- Charles Etta Waddles.

Let us understand what is the lifetime value ofour customers? Paying commission of Rs 100-200 to franchisee is not a costconsidering the future flow of revenue from the customer. How many of our

decisions are based on scientific analysis of the precious customer data wealready have such as calling pattern, payment habits, usage profile etc? Howmany surveys we do, how much customer research we carry out? Net growth in

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mobile is high but what about churn? Cant we analyze & reduce it? Acquisitioncost is usually said to be 5-8 times the retention cost.

It is high time we learn fast, groom ourselves,improve our mindset and act fast. Business perspective is equally important as

excellence in Telecom operations, maintenance, and installations & planning. Ourcore competence should be telecom business acumen and not just traditionalexpertise developed over the years.

It is usually much easier to sell additional thingsto existing customers than to add new customer. Let us try to upgrade eachcustomer by RS 20 RS 50 by offering them more add on relevant services.

Social Responsibility.We were the most trusted telecom brand in year 2003 & 2004. We

have been given Golden Peacock award for Best Corporate Social

responsibility. How can we leverage these distinctions? Theseachievements need to be highlighted through public relation exercise like

press meet. This will help us in building our marketing image. In sales anddistribution front though we have over one-lakh retailers, 1000 franchisees,3300 CSCs, 36000 exchanges why are we not visible like others? Why cantwe utilize all possible space? Cant we leverage our franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why ourrecharge coupons, India Telephone Cards are in shortage when there is nocapacity constraint? Does it imply that our planning for printing, inventorymanagement, logistics, and supply chain and of course franchiseemanagement is inefficient? Do we have targets for these just like DELs &CellOne? Why cant we leverage this huge network for better customer careand improve collection efficiency? We must realize that with waiver ofsecurity deposits, no OYT schemes, no advance rentals, adjustment of landlinesecurity for CellOne, we dont get fixed deposits to meet our funds

requirements. Everything has to be met from Operating revenues. We need toimprove collections, realize bills early, not on the last day of payment andreduce bad debts. We need to provide 24X7 culture in our organization,though we have been providing operation and maintenance on 24X7 basis inthe past and we will continue to provide in future too, but what about

provisioning customer care and marketing on 24X7 basis?

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INTRODUCTION

Tata Teleservices is part of the INR Rs.120000 Crore (US$ 29 billion) Tata Group, that has over 87 companies, over330,000 employees and more than 2.8 million shareholders. With a committedinvestment of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), theGroup has a formidable presence across the telecom value chain.

Tata Teleservices spearheads the Groupspresence in the telecom sector. Incorporated in 1996, Tata Teleservices was thefirst to launch CDMA mobile services in India with the Andhra Pradesh circle.

Starting with the major acquisition of HughesTele.com (India) Limited [now renamed Tata Teleservices (Maharashtra)

Limited] in December 2002 the company swung into an expansion mode. Withthe total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India

presence spread across 20 circles that includes Andhra Pradesh, Chennai,Gujarat, Karnataka, Delhi, Maharashtra, Mumbai, Tamil Nadu, Orissa,

Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E),

Uttar Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

Having pioneered the CDMA 3G1x technologyplatform in India, Tata Teleservices has established a robust and reliable 3G

ready telecom infrastructure that ensures quality in its services. It has partneredwith Motorola, Ericsson, Lucent and ECI Telecom for the deployment of areliable, technologically advanced network.

SERVICES

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http://www.tataindicom.com/default.aspx


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Features

TariffBenefits

Features

TariffBenefits

Connect swiftlyto your business!Connect swiftlyto your business! Authorized access to

your corporationsnetworks over CDMA

Get your message

across to your group

instantaneously

Give your customers

and clients the

best service available

Design, build, host

and operate your

own sms application

Get the best in

Technology with a

portable internet

connection.

Stay in touch with

colleagues and clients

with Tata Connectivity!

Tata Indicom presents

a range of safe and

secure connections for

the banking sector.

Benefit from the bestand most secure

Domestic Leased

Circuit (DLC)!

MARKETING STRATEGY

Tata Indicom sticks to three pillar marketing strategy

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Tata Indicom, the Mobile service by TataTeleservices has its eyes fixed on a three pillar strategy that it has defined for the

brands growth. With a subscriber base

more than 20 million today, the game seems tohave just begun for the brand. According to Abdul Khan, president, marketing,Tata Teleservices, There is a growing market there to reach out to, and everyminute, a new generation mobile user walks in. We went back to people, and werealise that customer aspirations have catapulted they are in constant search fornew, better and latest services. They are very clear they dont love you if youdont offer them what they want! They will churn and go away, so we have toliterally keep running to stay in the same place.

From its inception, the brand has chosen tospeak mass market. Khan says, We adopted the mass market route to target thefirst user. But today, interestingly, more than 30-40 per cent users are GSM add-ons, which is a huge paradigm shift. Looking at this, we now have to move onfrom being simply a mass market brand to being an aspirational brand, yet notabandoning the mass market approach completely. We cant be either/or, wehave to be and. The whole category being aspirational, it was necessary to lookat that.

With a set of advantages, Khan says, thecompany began with promoting its network on the basis of coverage, clarity,connectivity, etc., taking it further by talking about its VAS, and then itshandsets. Tactical offers continue to exist.

Khan clarifies, For building our brand image,which is the first pillar of our strategy, we have to go on from being positioned asa cheap brand. There is nothing wrong in being low-priced, but if you also offersomething more apart from that... We are looking at refreshing the way we are.

The company is looking at expanding its retailnetwork as well. It plans to take its store count to 3,500, and all True Value hubsand stores will be singularly named Tata Indicom Exclusive Stores.Customisation of the retail experience has been an important consideration,

Innovation is the second pillar of the companysstrategy. Khan believes that there has to be new news. Unless, as a brand, youare refreshing yourself, which goes beyond changing from blue to red, and

actually moving towards good product offerings, you are moving nowhere, hesays. Driving towards innovations, the company plans to leverage its product mobile Internet to connect with a significant target group, the youth.

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Bank ATM Solution

Tata Indicom now presents a wireless connectivity

for bank ATMs. This solution uses CDMA2000 1X packet data and is availableat a fractional cost of competing technologies. With this bank ATMs can beplaced even at remote locations covered by Tata Indicom CDMA network usingthe worlds latest wireless technology and can connect to a central server withoutcompromising data security.

Corporate Directory

TATA Indicom presents its MobileCorporate Directory, a secure and innovative solution that enables your

employees to access the latest updated contact information of their colleaguesacross the corporation through mobile.

Your firm can now run independent ofsources like printed directories, operators or other colleagues to trace any contactinformation.

The Mobile Corporate Directory offers yourenterprise the ease to create, update and modify a centralised contact database

that can be accessed by your employees using SMS or WAP enabled mobilephones. To access this service using SMS, the users have to just send akeyword(s) as a message from their mobile phones to a predefined SMS code andthe requested information will be messaged instantly to their mobiles.

Group SMS

Tata Indicom brings for your corporations, its

Group SMS service. A comprehensive solution that provides your affiliates andemployees the ease of sending a message to a set of people in one goes instead ofsending it again and again. This can be done either using Tata Indicom mobile

phone or a mobile phone of any other operator

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Point of Sale Solution

Now connect your business associatesfrom across the country into your private office network seamlessly and alsocarry point of sale counter at your customers door. At times when service tocustomers is of utmost importance, you would not have asked for more.

Tata Indicom presents managedwireless Point of Sale solution for enterprises. Customers will connect the PoSterminals to CDMA phones, which in turn will be connected to enterprises

private office network using TATA Indicoms packet data network.

SMS GatewayWith Tata Indicom's SMS gateway offering, you can now

design, build, host and operate your own SMS applications!

SMS Gateway services

Now mobile phones can be used to exchangethe business critical information quickly and secured way. You can now access

applications like Trouble Ticketing System, Payroll, and AttendanceManagement System etc. from a mobile phone, at the convenience of accessingthrough a PC or Laptop. To ensure security of the information a unique ID and

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password will be provided to you for exchanging information. The services canbe accessed throughout the Tata Indicom's network coverage.

SMS Gateway services are very useful andeffective for the large and medium enterprise customers having a field force like

sales force or after sales service force that need to access or update information toorganisation.

INTRODUCTION

In February 2009 Vodafone announcedofficially its acquisition of 67% of Hutch-Essar for $11.08 billiondefeating the rival bidder Reliance Communications. About 33 per cent isheld by Essar group, an Indian group, of which 22 percent is held throughMauritius-based subsidiaries.

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Vodafone has operations in 25 countrieswith over 200 million proportionate customers at end of January 2009, aswell as 36 partner networks. Vodafone essar is expecting to touch over 35million customers across 400000 shops and thousand of hutchs ownemployees along with employees of its business associates.

PRODUCTS & SERVICES

Follow himFollow him

Check out

his TV ads,

tunes,

images andlots more.

Check out

his TV ads,

tunes,

images andlots more.

Caller tunesCaller tunes

Make your

callers listen to

your favorite

tunes.

Make your

callers listen to

your favorite

tunes.

WarningWarning

Have you

received any

emails which

appear likeofficial

communicatio

n from

Vodafone?

They just may

be fraudulent.

Have you

received any

emails which

appear likeofficial

communicatio

n from

Vodafone?

They just may

be fraudulent.

World Calling CardsWorld Calling Cards

Know someone

abroad? Put

your ISD & STDbills on diet.

Know someone

abroad? Put

your ISD & STDbills on diet.

Postpaid

Prepaid

World calling cards Home calling cards

Vodafone handy phone

Vodafone PCO

MARKETING STRATEGY

The worlds leading businesses have embracedthe concept of mobility: a strategic, cultural and technical innovation in the way

that business gets done. Thanks to the ubiquity and sophistication of informationand communications technologies, employees can now work effectively awayfrom their desks, out of their offices and whilst abroad. The number of global

businesses has increased, once distant markets have become more accessible andtelecommunications costs have fallen dramatically.

Mobile technology has played aparticularly important role in business globalisation as its wireless infrastructurehas allowed developing countries to roll-out communications networks quickly

and at far less cost than the fixed-line alternative. Global businesses are keybeneficiaries of mobility services, for understandable reasons: they havedistributed offices, employees, and customers which create a heavy dependence

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on telecommunications and travel. It is these organisations that have beeninstrumental in driving the mobile industry to develop advanced solutions in thefirst place; well known examples being the GSM standard, mobile email andwireless office. The key significance of mobility for the global business is that itconnects individuals. This is a simple yet powerful proposition because when

people, rather than premises, are connected, they can be more responsive, moreflexible, more informed, and ultimately more productive. This whitepaperexamines the impact of mobility on global businesses, and seeks to answer thequestions: why should global businesses develop and implement mobilitystrategies?, and how should they go about doing this? Mobility is enabled anddriving global business Global Business Global Businesses demand advances incommunications technologies

Although many global businesses havealready embarked on their mobilisation journey, there is often a lack of clarity asto the key stages of this Journey and their implications. Vodafone has identifiedsix straightforward steps that should be taken when developing a mobilitystrategy. They require involvement from a wide group of stakeholders fromacross the business to ensure exceptional excellence

Work closely with stakeholders to identifykey strategic aims and objectives for the next 12-18 months. It is important that

business line owners buy-in to the value and purpose of the mobility project.Example initiatives that must be captured in this early stage of the project mightinclude:

Expansion into new territories Launching new products or services Revising internal business processes and office relocation Out-tasking non-core operations

Understand the requirements of the end-users of mobility solutions within your organisation different roles often requirediffering levels of mobility support. Collaboration with stakeholders fromdifferent functional areas, regions and countries of the business is needed in orderto conduct user profiling and travel Patterns analysis which reflects both globalcommonality and local country variations. In addition, mobility offers the globalenterprise resilience by using mobile solutions to support fixed data. Theremaining work steps can be conducted by a smaller team of stakeholders.

The stakeholder team should conduct ananalysis of the range of mobility solutions currently in use across the business, as

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well as what is available in the market, in order to understand what they offer andtheirPoints of difference. It is essential that the longevity of these solutions isevaluated in order to effectively manage technology lifecycles.

This solution information can be mappedonto the mobility requirements for the companys workforce, and the mostappropriate solutions can be identified. At this stage, the stakeholder team willhave determined the end-user mobility requirements, and will have short listed aset of potential mobility solutions. However, it is also important to understand theenvironment in which the business will manage and operate mobility services.Considerations should include:

Centrally managed mobility solutions require significantly less operationaloverhead than locally Managed services

Unlike basic voice services, data and Converged solutions will require ahigh degree of involvement from

INTRODUCTIONThe Reliance Anil Dhirubhai Ambani

Group is among Indias top three private sector business houses on all major

financial parameters, with a market capitalization of Rs 100,000 crore (US$ 22

billion), net assets in excess of Rs 31,500 crore (US$ 7 billion), and net worth to

the tune of Rs 27,500 crore (US$ 6 billion)

Across different companies, the group has a

customer base of over 50 million, the largest for any group in India, and a

shareholder base of over 8 million, the largest for any group in the world.

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Through its products and services, the

Reliance - ADA Group touches the life of 1 in 10 Indians every single day. It

has a business presence that extends to over 7,500 towns and 300,000

villages in India, and 5 continents across world.

The interests of the Group range from communications (Reliance

Communications ) and financial services (Reliance Capital Ltd), to

generation, transmission and distribution of power (Reliance Energy),

infrastructure and entertainment.

Reliance Communications will offer a

complete range of telecom services, covering mobile and fixed line telephony

including broadband, national and international long distance services, data

services and a wide range of value added services and applications that will

enhance productivity of enterprises and individual

PRODUCTS & SERVICES

Mobile

Wireless Phone

Wireless Terminal

Blackberry

Roaming

Broad Net

Reliance Landline

Reliance Net connect

Reliance Mobile World

Reliance India Call

35
http://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_fwp.jsphttp://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_fwt.jsphttp://www.reliancemobile.com/blackberry/html/solution_indiv.htmhttp://www.rcom.co.in/webapp/Communications/rcom/Rm/rm_roaming_new.jsphttp://www.reliancecommunications.co.in/Communications/rcom/broadband/broadband_individuals.htmlhttp://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_flp.jsphttp://www.rcom.co.in/webapp/Communications/rcom/Netconnect/rm_netconnect.jsphttp://www.reliancemobileworld.co.in/https://www.relianceindiacall.com/web/globalhome.aspxhttp://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_fwp.jsphttp://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_fwt.jsphttp://www.reliancemobile.com/blackberry/html/solution_indiv.htmhttp://www.rcom.co.in/webapp/Communications/rcom/Rm/rm_roaming_new.jsphttp://www.reliancecommunications.co.in/Communications/rcom/broadband/broadband_individuals.htmlhttp://www.rcom.co.in/webapp/Communications/rcom/Rh/rh_flp.jsphttp://www.rcom.co.in/webapp/Communications/rcom/Netconnect/rm_netconnect.jsphttp://www.reliancemobileworld.co.in/https://www.relianceindiacall.com/web/globalhome.aspx


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Bank to go mobile on R World

Reliance Communications has already beenproviding mobile banking services to customers in private banks like ICICI Bank,

HDFC Bank, Axis Bank and IDBI Bank. However, it is the first time and the firsttelecom operator in India to offer such a service to a public sector bank.

Reliance Mobile World

Reliance Mobile World is a virtual one-stop-shop for entertainment, communication, gaming and m-commerce. Thanksto the wide range of applications, it has endeared itself to users from all walks of

life. Reliance Mobile World has over hundreds of useful applications and over2,00,000 content titles which include mobile TV, videos, cricket updates, music,ringtones, phonebook transfer and back-up service, m-commerce services likeMobile Banking, bill payments, mobile e-mail and instant messenger, city andTV guides, booking gas cylinders, tracking Speed Post, Airlines and Railwayreservations, examination results and much more.

MARKETING STRATEGY

Reliances path-breakingmarketing strategy that was put in by the strongest teamof telecom professionals the country has ever seen hasmade millions of Indians happy as they got the bestmobile tariffs in the world. The aggression resulted toadding to his already swollen kitty. Every hour India will

be adding around 20,000 new mobile customers and Reliance Communicationsover 4,000.

When mobile telephony first began in India, a local callcost Rs 16 per minute; an STD Rs 50; and a call to the US Rs 100 per minute.With Reliance Communications pioneering price initiative, a local call now costsa mere 15 paisa per minute, STD 40 paise, and a call to the US costs less than Rs2 per minute. The presence of Reliance Communications is making thecompetition in India panicky. Global telecom forces will also shortly start feelingthe heat. Ambani has also recently announced his Rs 1,200 crore buyout of YapsHoldings.

Achiever's Pride Undertook financial restructuring of Reliance communications

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To spend Rs 16,000 crore to expand and strengthen network coverage After expansion, Reliance Communications will have the single largest

wireless network in the world Launched the lowest-cost classic brand handset at Rs 777 Subscriber base grew to over 28 mn during last fiscal, registering 60%

growth Total Revenue shot up to Rs 14,468 crore, an increase of 34% Net Profit rises to Rs 3,163 crore, an increase of over 600% Revenues of the wireless business increased by 46% to Rs 10,728 crore Broadband achieved revenue growth of 123% to Rs 1,144 crore Market capitalization crossed Rs 100,000 crore Will add 23,000 more towers Telecom services will be available in over 23,000 towns and 600,000

villages To launch premium IPTV services in top cities Next generation DTH network will be launched before end of the year

Reliance Communications' wireless subscriberbase grew to over 28 mn last fiscal, registering a 60% growth. This makes it oneof the top two wireless operators in India.

"Economic growth in the future will be indexedto connectivity of millions of enterprise and individual customers. Over the nextfew years, we will have over 100 million customers, making us one of the top 5

telecom players in the world. In four years, we put up a total of 14,000 towersacross the country. This year alone we will add 23,000 more towers. Our wirelessnetwork is currently available in 10,000 towns. By the end of this year, it will beavailable in over 23,000 towns and 600,000 villages," Anil Ambani said at thefirst annual general meeting of Reliance Communications since the re-organization of the Reliance Group in June 2005.

"In four years of operations, we invested aroundRs 32,000 crore. This year alone we will invest over Rs 20,000 crore. At the end

of this year, we will have covered over 90% of our population. If Version 1.0 ofthe Indian telecom story was all about affordability, Version 2.0 will be aboutreach. Our network expansion will give us the power to drive the market and stayahead of the curve," Ambani adds.

According to Ambani, the financialrestructuring of Reliance Communications is the biggest turnaround story in thehistory of corporate India. The inherited ownership structure of RelianceCommunications was complex. The reorganization has yielded a simple, fair, andtransparent ownership structure, and given Reliance Communications 100%

ownership of all operational and associate companies.

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Reliance Communications is now among thethree most valuable private sector companies in India, and the five most valuabletelecom companies in Asia. In the current fiscal, Reliance Communications willspend Rs 16,000 crore to further expand and strengthen its network coverageacross India and the rest of the world.

In addition to organic growth, RelianceCommunications will leverage the advantages derived from this impressivefinancial platform to explore and pursue any significant opportunities available inthe telecommunications sector. "We are currently evaluating a number ofinorganic opportunities in select international markets to further expand ourfootprint," Ambani said.

Reliance Communications One India, One Tariffplan allowed millions to connect across India at just one rupee a minute. The

company was the first one to break the Rs 1,000 entry-barrier with the launch ofthe lowest-cost classic brand handset at Rs 777.

As per its expansion plan, RelianceCommunications will have the single largest wireless network in the world,covering over 900 mn Indians or more than 15% of the global population. It willcover 23,000 towns or every single Indian habitation with a population of over1,000. Reliance Communications will cover almost 100% of all rail routes,

providing seamless voice, video, radio, and Internet connectivity to 14 mn

commuters every day. It will also cover almost 100% of all national highways,and 84% of all state highways, giving millions of users the power to talk, text,surf, play, chat or simply stay in touch across nearly the entire length of India's2,00,000-km-long road network.

Having achieved tremendous growth, the mainchallenge for Reliance Communications is to improve quality of service andARPU. Its enterprise business is also not in a position to compete with the globalmajors. Stock market valuations may boost the fortunes of an entrepreneur, butAmbani needs to address the issues faced by the growing mobile customer base,especially in India, where bureaucracy takes pride in checking the businessman.

Reliance Communications has already been providingmobile banking services to customers in private banks like ICICI Bank, HDFCBank, Axis Bank and IDBI Bank. However, it is the first time and the firsttelecom operator in India to offer such a service to a public sector bank.

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INTRODUCTION

Virgin, a leading branded venture capital

organization, is one of the world's most recognized and respectedbrands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone onto grow very successful businesses in sectors ranging from mobile telephony totransportation, travel, financial services, leisure, music, holidays, publishing andretailing. Virgin has created more than 200 branded companies worldwide,employing approximately 50,000 people, in 29 countries. Its revenues around theworld in 2006 exceeded10 billion (approx. US$20 billion).

TTLs Virgin Mobile brand is Indiasfirst national youth-focused mobile service. Virgin Mobile branded services will

be offered to the Indian consumers by Tata Teleservices through a brandfranchise with Virgin. Virgin Mobile India will facilitate Tata Teleservices withexperience and expertise in designing, marketingand servicing of Virgin Mobile branded products for the youth segment. VirginMobile services will be supported from nine centers across nine cities and willhave bench strength of 250 personnel. At launch, although the Virgin Mobile

branded service will be available nationwide, it will focus on subscriberacquisition in the top 50 cities which will extend to over 1000 cities by year end.

Virgin Mobile branded handsets will be available across 15,000 outlets and itstop up cards across 40,000 outlets nationally.

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MARKETING STRATEGY

Indias first nation-wide youth focused mobile service Tata Teleserviceslaunches Virgin Mobile branded services to Indias youth 2nd March,

2008, Mumbai: Virgin Mobile services are being offered to consumers by TataTeleservices through a brand franchise with the Virgin Group. Virgin MobileIndia is an association between Virgin Group and Tata Teleservices which willfacilitate Tata Teleservices with its experience and expertise in designing,marketing and servicing TTLs Virgin Mobile branded products for the youthsegment. The Virgin Mobile brand philosophy of Think Hatke is encapsulatedin Virgin Mobile Indias desire to redefine Indias mobile services landscape.

The launch of Virgin Mobile today sees the Virgin Mobile brand arrive in India a day I have looked forward to for many years. India is a country I hold dear tomy heart; the vibrancy of its youth and culture truly makes it Virgin territory! AtVirgin Mobile we believe that the existing operators are all pursuing the samestrategy: to get as many subscribers as quickly as possible. Virgin Mobilesstrategy is different. We want to deliver a more tailored, more relevant offeringfor a single, distinct segment. We are not pursuing scale for scales sake, said SirRichard Branson, Chairman and Founder of the Virgin Group, in todays pressconference. Our association with the Tatas unites the passion of our two

business groups for putting customers first and finding innovative, fun ways ofenriching their lives, and it represents Virgin Groups strong focus on India. Intrue Virgin tradition, Virgin Mobile brings to all its customers ten firsts to theIndian telecoms market - were even going to pay our customers to talk. Now thatreally is Think Hatke! he added. TTLs Virgin Mobile offers Indias youth atleast ten industries

Firsts that include Get Paid to Receive Calls,One-touch VAS access from every Virgin Mobile-branded handset, Call morefor less, True Care and a value-for-money handset range that makes VirginMobile the only service brand offering handsets that are 100% colour, 100%FM. In another First, Sir Richard Branson, launched Virgin Mobile brand in

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India, by flying down the faade of The Hilton Towers in Mumbai andunveiling the Virgin Mobile logo in midFlight.

Special Offers WOW!

VIRGIN MOBILE FIRSTS

Get paid to receive calls VirginMobile customers will get 10 paise credit forevery in-coming minute they receive from any

Network.

Easy Handset upgrades:

Virgin Mobile is Indias first CDMA

service where all customers will be on RUIM(SIM)-based phones, thereby giving them theconvenience of upgrading their phones withouthaving to change their number or re-enter theiraddress book.

True Care:All Virgin Mobile customers will be

called back by the same call center agent to address their query

Call more for lessAfter the 1st 2 mins of calls each day

(which will be charged at Re1) all Virgin Mobilecustomers nationwide will automatically be ableto call any local network at any time of day foronly 50

paise per minute with no commitment orextra charge

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One Touch access to V-Bytes

100% of Virgin Mobile-branded handsets will have a simple one-touchaccess button that takes customers directly to our unique VBytes portal.

INTRODUCTION

Idea Cellulars antecedents date back to

1995, when the Aditya Birla Group and AT&T (through Birla AT&T

Communications-Maharashtra & Gujarat circle) and the Tata Group (through

Tata Cellular Andhra Pradesh circle) set up cellular networks. Both the above

companies were amongst the first company into commercially start operation in

circles other than metros and achieve financial closure in Indian Telecom

industry.

In the year 2000,the historic path-breaking

merger of Tata Cellular with Birla AT & T Communications and the subsequent

acquisition of RPG Cellular (Madhya Pradesh circle) in the year 2001 helped

take the company to aim even further and led to the formation of Birla Tata AT

& T Limited.

In the year 2001, company won fourth cellularlicense for Delhi metro circle and in year 2002 company introduced common

brand idea and changed the name to Idea Cellular Limited.

The brand Idea

It is almost impossible to disintegrate brandIdea from the corporate Idea. Brand values are the company values and viseversa. Brand Vision: It goes without saying that the brand vision of idea mirrors

the companys vision. The brand mission statement is...... To be the mostcustomer-focused mobile service brand, continuously innovating to help liberateour customers from the shackles of time & space.

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IDEA - Brand Values

Innovate. Stimulate. Liberate....

It is these brand values, which have made us a formidable player in thetelecom industry. Innovations that stimulate the customer and liberate him fromthe shackles of time and space are the core of our brand. This is what we strive

for. Nothing more, nothing less, nothing else.

MARKETING STRATEGY

Through media buying and planning, is to

create year round impact. With the objective of strengthening our brand, we workwith strategic communication partners on campaigns like sponsorship of the Idea

International Indian Film Academy awards and the television programs IdeaRocks India, Idea Star Singer and Idea Andhra Idol.

They seek engagement with subscribers on avariety of levels, from major celebrity fashion shows to small local events timedto coincide with new product offerings. Since August 2003, we havecommissioned a Brand Track Index Study to evaluate the health of our brand.The Brand Track Index Study is a monthly study conducted by TNS, a marketingconsultant engaged by us to evaluate our brand using face-to-face interviews on arandom sample of mobile users a well as those intending to purchase mobileswithin the next three months. According to the study our brand is perceived asreliable/trustworthy and one that offers cheaper and good promotional offers.We have improved our rating in the Brand Track Index calculated by the study inthe past year reflecting, we believe, the growing strength of our brand.

The main communication medium for the Ideabrand is television, where we seek strategic Idea brand coverage in variousformats. Billboards and hoardings are used as a secondary medium, customizedfor specific regional preferences to communicate effectively at the local level. We

also use other mass communication media such as the press and radio tocommunicate price plans and other tactical and customer information.

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All key initiatives are subjected to a rigoroustesting and launch process to ensure accountability for all advertising spend and

improve the chances of success of a new product. This process is followed upwith extensive briefing of call center agents and sales personnel and real-timetracking of the impact of the communication and feedback from subscribers

Special offers by Idea

Help:Help alerts provide the facility to

customer Call police, ambulance, fire and anyhelp

Low STD rates:

It also provides low rates of STDJust Rs. 1.00 any where in India

World calling card:

Talk any where in the world withMinimum rates of ISD calls

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Target Measure in 11th plan for

Telecommunication Sector

11

th

plan (2007-20012):

FDI in Telecom sector has increased in recent years with value of 81.62 billionwith share of 10% in total inflow during January 2000 to June 2005. This ismainly in telecom services and not in telecom manufacturing sector. Therefore, itis essential to enhance the prospect for inflow of increased funds. The NTP 1999sought to promote exports of telecom equipments and services. But till dateexport of telecom equipment remains minimal. Most of the state-of-the-arttelecom equipments including mobile phones are imported from abroad. There isthus immense potential for indigenous manufacturing in India. Certain measureslike financial packages, formation of a telecom export promotion council,creation of integrated facilities for telecom equipment through SEZ andencouraging overseas vendors to set up facilities in India, are required for makingIndia a hub for telecom equipment manufacturing and attract FDI. The telecomsector has shown robust growth during the past few years. It has also undergone asubstantial change in terms of mobile versus fixed phones and public versus

private participation. The following table and discussions from the report of theworking report on the telecom sector for the 11th plan (2007-2012)will show the

growth of telecom sector since 2003:

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Important policy initiatives:-

Broadband policy unveiled in 2004 - Targets 20 million broadbandsubscribers by 2010

Focus on making India a regional Telecom manufacturing hub

FDI limit increased from 49% to 74%

100% FDI permitted under automatic route in the manufacturing sector

Deregulation virtually complete and Unified Licensing regime

Interconnection Usage Charge framework in place

Exemption from customs duty for import of Mobile Switching Centres

Comprehensive Spectrum policy and 3G policy on the anvil

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FUTURE PLANS

Targets 20 million broadband subscribers on 2010

FDI limit increased from 49% to 74% Exemption from customs duty for import of Mobile Switching Centres

Findings/conclusion

After doing the study we can conclude that yes the Gap exist there in

telecommunication industry. Consumers have a lot of expectations from47


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their service provider that are not performed or deliver by their companies.

we have conclude that consumer expect from public companies to improve

its customer care service that can be found busy most of the times. Now

users of public telecom companies have rated it as a best company for its

post paid services but still they are not satisfied with some of companys

strategies. So this is the Gap between BSNL users and company

performance. Then we have example of Delhi market leader- private

sector. Users of private telecom are not satisfied with company fixed line

services and their post paid service as they charge more as compared to the

public companies.

Private companys performance is good but Gap exists not just with a

single company, but with all the companies in the industry. Various VAS

(Value Added Services) provided by company does not seems to be

Satisfying their users. Customers are not satisfied with SMS pack that is

perceived costlier as Compare to public companies SMS packs. Users also

found monthly low call rate pack costlier as well.

Private players in the telecom industry are performing far better than the

public players i.e., MTNL and BSNL. Private company in the industry is

found to be delivering as per their customer expectations. Thats why

customers have rated it not as satisfactory but excellent. But one has to pay

more for superior service. Price is the potent Gap exists in between private

company and public companies. But it should be noticed that Effective

tariffs have dropped from over Rs 14 a minute to Re 1, bringing the phone

within reach of people even below the middle-class.

Looking at the competition trend, it seems that soon in future, rural schools

will be having broadband and internet facilities as their part of studies as

well as routine lives. There is availability of internet facility in many

villages. But soon it will be taught in secondary and higher secondary

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schools in all villages and various technologies like 3G and various VAS

have made the market more competitive and made easy for the users.

Implementation of number portability and 3G technology have solved

many problems and made easy and comfortable for the customers

Webliography and Bibliography

Websites:-

www.relianceinfo.com

www.airtel.com

www.bsnl.com

www.idea.com

www.vodafone.com www.tataindicom.com

49
http://www.relianceinfo.com/http://www.airtel.com/http://www.bsnl.com/http://www.idea.com/http://www.vodafone.com/http://www.tataindicom.com/http://www.relianceinfo.com/http://www.airtel.com/http://www.bsnl.com/http://www.idea.com/http://www.vodafone.com/http://www.tataindicom.com/


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www.virginmobile.com

Books, Magazines & Newspapers:-

Marketing Management: - Ramaswami, kotler, Azhar Kazmi

Newspapers: - TOI, Rajasthan Patrika.

Magazines: - Business News, Telecommunication

Recent Trend in Telecommuncation

Documents