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Introduction

Industry Analysis

Existing competition There are three types of players in telecom services: State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm, Tata Teleservices,) Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications)

Competition set to intensify further with market liberalisation: The Indian mobile sector is an intensely competitive industry, featuring 10 mobile operators, of which four, namely Bharti Airtel Limited, Reliance Communications Limited, Vodafone Essar Limited and BSNL, together account for almost three-fourths of the entire mobile market share. This is also partly on account of the fact that these four operators have their presence in a larger number of circles as compared with other players. With licences being granted to some of the existing

operators for new circles and also to new entrants, competition is expected to intensify further. Nearly everybody already pays for phone services, so all competitors now must lure customers with lower prices and more exciting services. This tends to drive industry profitability down. In addition to low profits, the telecom industry suffers from high exit barriers, mainly due to its specialized equipment. Bargaining power of buyer With increased choice of telecom products and services, the bargaining power of buyers is rising. For the most part, basic services are treated as a commodity. This translates into customers seeking low prices from companies that offer reliable service. At the same time, buyer power can vary somewhat between market segments. While switching costs are relatively low for residential telecom customers, they can get higher for larger business customers, especially those that rely more on customized products and services. Bargaining power of supplier As far as telecom industry is concerned, it is service-based industry, which is intangible, so in this case, there are less suppliers or we can say the role of suppliers are almost negligible in the case of telecom industry. 1. Mobile hand set suppliers: - There are multiple suppliers for handsets, some of them are Nokia, Sony Ericsson, Motorola, and Siemens etc. Many big telecom giants have their own handset manufacturing(back ward integration) like Reliance Classic, Tata Indicom or they have collaboration with some known companies like Reliance communication have tie ups with Samsung and LG for their CDMA services. 2. Some other suppliers for this industry can be the Optical fibresuppliers, Aluminum suppliers (aluminum is required for the tower) but their bargaining power is limited. 3. Other important parameters can be the software assistance where suppliers can have the edge some of the main software solution provider are TCS, Infosys, Wipro, Satyam etc. Again one thing is noticeable that big giants like Reliance and Tata have their own units for software solution and companies like Vodafone, Spice are taking services from above stated companies. So here software providers have bargaining power because suppose Vodafone cant go to Reliance info for their software solution so here suppliers can have edge over the companies

Threats of substitute Telecom sectors offers a wide range of services in India, such as wireline, CDMA mobile, GSM mobile, internet, broadband, carrier, MPLS-VPN, VSAT, VoIP, IN, etc. Internet telephone is emerging as a best option in place of because it is cheaper and video as an added advantage. Threat of new entrants The Indian telecom sector offers unprecedented opportunities for foreign companies in various areas, such as 3G, virtual private network, international long distance calls, value added services, etc. The market is witnessing M&A activities that are leading to consolidations in the industry. This trend has assisted companies in expanding their reach in the Indian telecom market to offer better services to customers. The Indian telecom industry has always allured foreign investors. It comes as no surprise that in the capital-intensive telecom industry the biggest barrier to entry is access to finance. To cover high fixed costs, serious contenders typically require a lot of cash. When capital markets are generous, the threat of competitive entrants escalates. When financing opportunities are less readily available, the pace of entry slows. Meanwhile, ownership of a telecom license can represent a huge barrier to entry.

About Aircel
The Aircel Group is a result of alliance between Maxis Communication Berhad of Malaysia (74% equity) and Sindya Securities & Investment Private Limited (26% equity). The Aircel Group, formed in 1994, offers affordable and outstanding mobile services to a vast subscriber base in India. Aircel has a vision of delighting its customers by giving them the respect they deserve. Their goal is to provide customers with exemplary service and persistently look for new ways to surpass their expectations.

Aircel commenced operations in 1999. In their first decade of operations, they concentrated on building foundations in the southern part of the country, and soon emerged as the regional market leaders. They worked hard and achieved that success by remaining focused on growth opportunities. Soon after the company began with its expansion in 2005 and has now set its sight on becoming a pan India operator. Their project pipeline is robust, allowing for sustainable long-term growth.

In addition to their leadership position in Tamil Nadu, Aircel met with extraordinary success in the Eastern frontier circles. They pride themselves on customer satisfaction and managed to emerge as the market leaders in Assam and North Eastern states within 18 months of operations. During this period, the company gained a strong foothold in 10 circles, to provide better access to their customers. Today, Aircel operates in 18 telecommunication circles and the company is ready to embark on a dynamic expansion plan, swiftly rolling out in new circles in the near future.

Aircel recognizes the tremendous growth in its customer base. They have also got an authorization from the Department of Telecommunications for ILD and NLD telephony services and are now on track to realize their dream of becoming a nationwide player by the year 2010.

Aircel offers its customers, services and products that are easy to understand and use. All offerings are stimulating and at the same time unique as Aircel continue to re-invent itself constantly to deliver the best and most up-to-date services. The brand instils a feeling of pride, confidence and reliance among all stakeholders by anticipating their desires and

fulfilling the same efficiently.

With their foundations deeply set on their brand values of simplicity, creativity, trust and excitement, they will continue to deliver superior services to their customers and will do their best to live up to high expectations Awards and Recognition Aircel has also been recognized for its consistent and reliable efforts, receiving the highest rating for overall customer satisfaction and network quality by Voice and Data in 2006, an accolade given to only a select few. They succeeded in keeping their promises to their customers as they were recognized for the same award by IDC in 2007. Aircel emerged as the top mid-size utility company in Businessworld's 'List of Best Mid-Size Companies' in 2007. Additionally, they have also been recognised as the best regional operator by the Tele.net Publication in 2007 and have been honoured by CMAI INFOCOM for excellence in marketing of new telecom service in 2009.

About 3G
3G will bring to life the experience of mobile broadband on phone. With this technology, one can enjoy superior videos, enhanced voice calls and swift data transmission on the mobile phone that will make life quicker, exciting and efficient so one can do more on the go.
y y y y High speed internet Allows real time video streaming Video conferencing High Definition Gaming High speed download/upload

Methodology
Research Design
Quantitative descriptive research is used to understand 3G market in Delhi/ NCR. Based on literature, a questionnaire was developed. The respondents were people in Delhi/NCR with a mix of student and working professionals as well as age mix.

Data sources
The data has been collected majorly through primary research. Secondary data has been collected from various database sources and company website for literature review and formulating objectives. Primary data for quantitative research has been obtained by surveying respondents from Delhi/NCR with both users and non users of 3G.

Research Instrument
The survey had a mix of open ended as well close ended questions to better gauge the consumers behaviour and understanding of 3G and its services. The flow of questions varied depending upon their preference towards 3G subscription

Sampling Methodology
Sampling method followed in this research is non probability sampling method i.e. convenient sampling technique. Reason for choosing this method is that they are least expensive, less time consuming and most convenient. One assumption that is made in this method is that every element in the population does not have a nonzero probability of being included in the sample. But on the other side the result must be viewed with caution because the sample might not be a true representative of the population. Sampling unit are all the individuals covered in the survey. A Sample size of 100 respondents was taken.