Aircel Mobile Internet

Internet users acquisition and growth plan

Aircel Marketing

 Aircel Mobile Internet

Introduction Aircel is 6 largest operator in India with a user base of 45 Million and Consumer Market Share (CMS) of 6%. With intense competition, as much as 11 players, in certain geographies, and late entry as a national player, Aircel took mobile data/Internet, and Value Added Services (VAS) as a plank for positioning in the market. With the launch on PocketInternet (PI), as a brand supported by retail, enabling technology (autoprovisioning, automatic device configuration, data call centers, policy control engine and others), and unlimited proposition, Aircel created mobile Internet category and garnered significant number of users with additional benefits of higher ARPU and longevity. Presently, Aircel has a Customer Market Share (CMS) of about 9%, and Revenue Market Share (RMS) of about 8.5% in mobile data, and 60% penetration on Internet enabled handsets. Mobile Internet Key Information Internet Users In the next 3 years (2013-15) mobile Internet users are expected to grow from 145 Mn to 356 Mn [Figure I]. Of these new users, called category entrants, majority would come from among youth and working men [Figure II]. Segments of users Mobile Internet users come across 4 different categories 2G or slow speed users on Mobile 3G or high speed users on Mobile 3G broadband or Dongle users
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4G/LTE broadband users (to be launched in 2013)

The split of users in each category with their current ARPU, consumption is provided for reference [Table I] Product and Pricing Data consumption on mobile is not as intuitive as voice consumption. To make it simpler for
TM

users product

Aircels carries

flagship Unlimited

PocketInternet

offering. At present Aircel offers 30-50% more benefits over market leaders (Airtel, Vodafone) on similar price points. Brand and Positioning Aircel in the market enjoys a certain amount of equity on the parameter of Brand preferred for internet on mobile due to its early mover advantage with PocketInternet and subsequent data focused communication and tieups with brands like Yahoo!, MSN, Apple etc. Overall none of the brands are sharply differentiated. Airtel is associated with good network and leadership positioning and off late tried to position itself as a youth brand. Voda is known for good network, customer service and likeable brand. Network presence The number of sites determines the network coverage and presence for different operators. While in strong markets - Chennai, Tamil Nadu, Assam, North East and JK - Aircels presence and coverage is comparable to Airtel or Vodafone,

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 Aircel Mobile Internet

overall sites deployed pan India is lower than competition. Strengths & Weakness Strengths Created the mobile Internet category and perceived to bring new changes Unlimited non cluttered approach to Internet Provides higher benefits at similar price points CMS on Internet at 9%, significantly higher than voice CMS Pocket Internet
TM

References, Tables, and Figures Figure I: Projected Internet users and revenue

an already established

brand among Internet consumers Penetration on Internet enabled handsets is at 60% while the Industry average is about 45% Weakness Smaller operator with lesser network and retail presence Lower number of Internet enabled handsets internally and hence has to be brought from market As a 6
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Figure 2: Segments driving growth

or in some cases 9

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operator to

enter market Aircels user mix has a lower ARPU mix as compared with competition Objective The future growth for telecom is going to driven by Data. How can Aircel capture a significant portion of the new users entering the category? Specifically how does Aircel increase its CMS of mobile internet users from 9% at present to 20% by 2015 Table I: Users split across Technologies

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 Aircel Mobile Internet

Round 2: - Top 10 entries from Round 1 (to be declared by 28 February) would need to submit a detailed solution by 10 following. 1. A word document detailing the proposed solution (should cover the research behind the recommendation, pros & cons, possible hurdles, and next steps). The word document should not exceed more than 8 pages in length 2. 3. A PPT covering the key points of word document (10-15 slides) Each team would get to present their submission to Aircel Management team for 15 minutes (7 minutes of presentation + 8 minutes of Q&A) over Telecon or Videocon between 11-15 March Team Size Permitted: Maximum of 2 members Prize Money: First prize: INR 15,000/Second prize: INR 10,000/Third prize: INR 5,000/th th th

March containing

All the winners would also get a cool limited edition Format: Round 1: - Participants are expected to submit 12 page executive summaries (word doc) by 20 February of their proposed solution.
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Internshala t-shirt! In addition, the

winning teams would be interviewed by Aircel for summer internships Judging criteria: 1) Novelty & Business feasibility of the solution 2) Amount of background research and data collection to support recommendation 3) Scalability of the solution Page 4

The

summary should cover recommended approach, the rationale, and an overview of roadmap.

 Aircel Mobile Internet

4) ROI 5) Quality of write up and presentation Terms & Conditions: 1. All the solutions submitted as part of the contest (both in round 1 and round 2) would be intellectual property of Aircel Internshala and Aircel reserve the right to not select any winners or not hire anyone for internships if none of the submitted entries are found meeting the expectations

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