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Presented by: VIKAS GUPTA Harsh Singh nirmal INSTITUTE OF MARKETING AND MANAGEMENT 2

Evolution of Telecom InIn India Evolution of Telecom India

Department of Telecommunication (DoT) is the main body formulating laws and various regulations for the Indian telecom industry.
Private players were allowed in Value Added Services
Independent regulator, TRAI, was established BSNL was established by DoT ILD services was opened to competition Go-ahead to the CDMA technology 2002 2000 Internet telephony initiated Reduction of licence fees Number portability Intra-circle merger was proposed guidelines were established Attempted to (pending) boost Rural telephony 2004 2005 2006 Broadband policy 2004 was formulated targeting 20 million subscribers by 2010 2007

Calling Party Pays (CPP) was implemented 2003

INDIA

1994
1992 1997

1999

National Telecom Policy (NTP) was formulated

Unified Access Licensing (UASL) regime was introduced

Reference Interconnect order was issued

NTP-99 led to migration from highcost fixed license fee to low-cost revenue sharing regime

Decision on 3G services (awaited) FDI limit was increased from 49 to 74 percent

Changing Face of Indian Mobile Consumer

BHARTI AIRTEL
India the most talkative nation after America. Bharti Airtel, today is a behemoth with close to 25% share of countrys mobile telecom market. Serves 75 million subscribers base. Most profitable telecom network in the country with a revenue more than Rs.9,000 crore.
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Innovation

AIRTEL Services

Lost Mobile Tracking System is a mobile software application which post installation helps you keep track of your mobile phone in the event of it being lost. LMTS service informs you about any change in the SIM of your lost mobile phone. It sends an SMS of the new mobile number and IMEI No. of your lost/stolen mobile handset to 3 alternate mobile numbers and an e-mail on any e-mail ID which had been provided to you by the subscriber at the . time of registration. Thus it helps you in tracking your lost mobile phone. How it works

Each SIM card has a unique International Mobile Subscriber Identity (IMSI) number. Whenever there is a change in the SIM its IMSI number also changes. This change is detected by the software and thus is able to identify any SIM change. IMEI number of the mobile phone is then used to authenticate the mobile phone.
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Process

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Customer Segmentation
Achievers Funsters Productivity-Enhancer Social Callers
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AMOU & ARPU

Minutes of Usage per Month Mobile Services
USA
838

India

461

China

303

Despite a low teledensity of approximately 19 percent, India has the second highest minutes of usage per month. This offers huge growth opportunity to telecom companies.

Russia

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ARPU* in India Mobile Services

ARPU (USD per month)
10 8 6 4 2 0 Q1 2006 Q2 2006 Q3 2006 GSM CDMA Q4 2006 Q1 2007

The declining ARPU implies that India Inc. is tapping a large market at the bottom of the pyramid by reducing tariffs; thereby, enhancing affordability.

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Declining Tariff Rising Revenue

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Customer Retention
Vodafone

TNS used its proprietary TRI*M Stakeholder Relationship Management System, wherein the TRI*M Index is a measure of the 'intensity of retention' and takes into consideration both the subscribers' level of satisfaction with the service provider as well as the level of retention and loyalty towards the service provider.
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Service Benchmarks

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SERVQUAL Model

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Corporate Responsibility at Bharti Airtel

To be responsive to the needs of our customers
To continuously improve our services innovatively and expeditiously To be transparent and sensitive in our dealings with all stakeholders

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Service Employee
People Pride Passion Processes Performance

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Levels Of Service

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Operational Improvement
Business Challenge
Bharti Airtel needed to maximize its future flexibility and growth potential by adopting a business-driven framework for integration, allowing it to implement and deliver new services rapidly. With competition intensifying in the Indian telecom services market, Bharti Airtel needed to find a way to focus on developing new services that could set it apart from the competition and strengthen its customer relationships.
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Operational Improvement
Solution
Bharti Airtel entered into a comprehensive 10-year agreement with IBM to transform its processes and take on the management of its IT infrastructure. Its new platform provides a standardized framework for Bharti Airtel to integrate its channels and customer-facing processesenabling a more seamless customer experience, higher customer satisfaction and more profitable growth.

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Analysis of Customer Expectations

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Loyalty towards Operators

Loyalty is a function of satisfaction with various aspects of services that the subscriber has experienced. Likelihood of staying with the same operator and intention to recommend it to others are important measures of loyalty. Therefore, we have looked at satisfaction against likelihood of staying and intention to recommend

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Success Factors
Infrastructure Sharing

Rural Telephony

Success Factors

Managed Services

Enterprise Telecom 30

Opportunities

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Failures
1. MTN Deal failure will signal lack of any real market investment. 2. Airtel failed to reduced its tariff rates in comparison to its competitors like VODAFONE and BSNL. 3. Unnecessary charges- like for deactivation of services HELLO TUNES. 4. Ignorance towards cancellation of telephone line.

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Major Challenges
Getting a Disproportionate Share of New customers Plan and Deploy network Distribution through a hub and spoke model Create alliance- IFFCO, Nokia association Build Relevance for its products and servicesNetwork & affordability

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Major Challenges
Delight current customers Build trust- lead simplification of tariff, customer touch points Drive innovation- Data and services like MoD, M-commerce.

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Major Challenges
Build Capability to Make Scale an Advantage Segmentation( consumer, trade) and segmented delivery Technology automation Building internal people capabilities like restructuring of the marketing team which was carried out recently.

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Future Challenges
Mobile number portability (MNP) is a facility given by operators where a subscriber can move from one service provider to another without changing the number allocated to the subscriber. Thus, under MNP, a subscriber will have the option of retaining the same phone number issued by the old operator even with the new operator. To achieve the successful implementation of MNP, operators should consider carrying out a comprehensive cost-benefit analysis to ascertain whether or not the implementation of the technology would prove to be profitable for the operator.
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Recommendations
Pricing: Depending on the market conditions/ competitors from cellular service providers and also to suit local conditions, there should be flexible pricing mechanism( either at central or local level.) Improvement in technology: Airtel should immediately shift to third generation switches by replacing its c-dot switches. This will improve the quality of service to desired level and provide simultaneous integration with the nationwide network. The special distribution of the transmission towers should be increased to avoid no signal pockets. Increased Focus: It should increase focus on low end customers.
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Future Strategies
Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. Technology leadership is a must Airtel must ensure that its reliance on GSM technology does not render it obsolete. Indian market inspite of being the worlds largest is still not matured. Opportunities abound in the hinterland which must be exploited.
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Thank You
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