Telecom Industry-India

• PRESENTED BY:

• AMIT JOSHI• VARSHA KUMARI• MANEESH SHARMA• VINAMARATA SINGH• RAHUL KUMAR• ASHOK SUMAN

Contents • Overview of telecom industry.• Structure of telecom industry.• Players of Telecom industry.• SWOT analysis of telecom Industry.• Vodafone overview and SWOT analysis.• Airtel overview mission and vision.• Conclusion and Recommendation.

Fast facts• Indian telecom market is one of the fastest growing markets in

the world.

• With its 806 million telephone connections as on 28th Feb 2011, it is the second largest network in the world after China.

• It is the second largest wireless network in the world.

• Over 15 million connections are being added every month.

• The target of 600 million telephones by the end of 11th five year plan has been achieved in February 2012 itself.

Fast facts• Wireless telephones are increasing at faster rate. The share of

wireless telephones as on 31st December 2012 is 95.54% of the total phones.

• The share of private sector in total telephone is 84.6%.

• Overall tele-density has reached 66.17%. Urban tele-density is about 148%, whereas rural tele-density is at 31.22%, which is also steadily increasing.

• Broadband connections increased to 10.74 million by November, 2010.

Souce: Cellular operators association of India, TRAI, DoT

OverviewServices offered by the telecom industry

Telecom services

Basic services

Mobile services

Internet services

VSATsGMPCS

Radio paging

PMRTS

Structure of Indian telecom industry

Telecom Industry

Public sector

MTNL BSNL

Private sector

Indian companies

Tata communications

Reliance communications

Idea cellular Bharti Airtel

Foreign invested companies

Vodafone Uninor MTS Virgin Aircel

Indian Consumer gets the worlds lowest mobile tarrifs

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Highest minutes of usage

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Russia Malaysia Australia Korea Singapore China Thailand India

Players of Industry

Bharathi Air-

tel21%

Re-liance17%

Vodafone17%

BSNL11%

Tata12%

Idea11%

Aircel7%

Others5%

15 Players in the industry as of Sep 2012

Other Payers:

-Hexacommm-Escotel-Spice-BPL-MTNL-Uninor-Virgin-MTS

Telecom Industy Users

SWOT ANALYSIS

Strengths

• High Customer Potential Tele-density grew from 48% in 2005 to 64% in 2012. Significant growth of broadband subscriber.

• High Growth Rate Wireless subscriber growing at the rate 60% per annum.

• Allow FDI limit ranging from 74% to 100%. The total FDI equity inflow in telecom sector have been US$2223 million during

2012.

• High Return on Investment. Easier to create economies of scales thereby increasing the return on investment.

• Liberalization of Government. The share of the private sector in the telecom sector is 88.6% and

• Lower capital expenditure. The Indian Telecom Industry is a high density area, which means more population

per tower. This means less capital expenditure.

Weakness• Poor Telecom Infrastructure.

Resulting in large call drops.

• Late Adopters of New Technology. India is among the last countries to adopt 3G technology. Recent reports

suggests that already 132 countries in the world has already adopted 3G.

• Most competitive market. 10 to 12 companies offer mobile services in most parts of India.

• A market strongly regulated by Government.

• Difficult to enter because of huge financial resources. Auction of 3G license has reached Rs 15814.15 crores

Opportunity

• 3G Telecom service and 4G service.• More quality service.• Value added service.

SMS, ringtones, mobile tv, video streaming, mobile banking, mobile ticketing etc.

• Boost to Telecom manufacturing companies. Production of telecom equipments from Rs 4,12,700 million (2007-08) to Rs

6,75,000 million (2010-2012).

• Horizontal integration. Entry into other consumer segments . For example Reliance BIG TV, TataSky, Airtel

Digital TV

• Providing fibres connectivity to 2,50,000 village panchayats by 2015.

Threats• Telecommunication Policies.

Renewal of 2G license on the basis of market rate of 3G TRAI’s telecom regulatory authority intention of rolling out 4G

technology, known as the ultra-broadband in 2-3 years raising fears rendering 3G services somewhat obsolete.

• Declining ARPU(Average Revenue per user). Price wars like per second billing which is deflating revenues and

making sure the survival of the fittest.

• Partiality on the part of Government. E.g Allowing 3G services in a PSU(MTNL,BSNL) before auctioning to

private sector.

HISTORY

• The company was founded in 1982 as a joint venture in England.

• the name was derived from the company's goal of establishing both voice (VO) and data (DA) services over a mobile telephone network.

• Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 additional countries

CNTD….

•It is the largest telecommunications network in the world

•Vodafone came in India by acquiring HUTCHISON ESSAR LTD.

•Launched officially on 21sep 2007.

CNTD…..• Vodafone India has been awarded the Most

Admired Telecom Operator and Best 3G Operator at the recent Telecom Operator Awards 2012.

SWOT ANALYSIS

STRENGTH1.One of the most popular

cellular service provider in India 2.One of the largest Telecom operator in the world 3.Only Indian operator, with VSNL, that has an international submarine cable 4.High brand visibility 5.Strong advertising with Zoo ZoozOo concept 6.Tieup with international sports like Formula One.

WEAKNESS

• Price competition from BSNL and MTNL

• Untapped Rural Market• US business not nearly as

strong as European/rest of the world operation

OPPORTUNITY

• Fast expanding cellular market

• Latest and low cost technology

• Untapped rural market• Research and development

of new mobile technologies • Good Tariff package

THREAT• New entrant's low price

offering • Saturation point in Basic

telephony service• Mobile Number Portability

INTRODUCTION

Owner- Sunil Bharti Mittal.Bharti Airtel formerly known as Bharti Tele-Ventures Limited (BTVL).India’s largest cellular service provider.Known for its service.First cellular operator to set up cellular showrooms ‘Airtel Connect’.First cellular company to install a second mobile switching centre.

HISTORY1985- entered in telecom business.1985-Technical collaboration with Siemens, Takacom corporation.1990- entered in telecommunication industry.1992- launching services in Delhi.1995- opened its first cellular showroom.2000- invested in acquisitions and alliances to expand its business.Won ‘Techies Award’ for four consecutive years (1997-2000).

VISIONVision 2013 By 2013 Airtel will be the most admired brand in India:

Loved by more customers Targeted by top talent Benchmarked by more businesses

Vision 2020 To build India's finest business conglomerate by 2020 Supporting education of underprivileged children through

Bharti Foundation Strategic Intent:

To create a conglomerate of the future by bringing about “Big Transformations through Brave Actions.”

MISSION “  We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more”

CORE VALUESCore Values Empowering People - to do their best Being Flexible - to adapt to the changing environment and evolving customer needs Making it Happen - by striving to change the status quo, innovate and energize new ideas with a strong passion and entrepreneurial spirit Openness and transparency - with an innate desire to do good Creating Positive Impact – with a desire to create a meaningful difference in society.

OBJECTIVESTo undertake transformational projects that have a positive impact on the society and contribute to the nation building process.

To Diversify into new businesses in agriculture, financial services and retail business with world-class partners

To lay the foundation for building a “conglomerate” of future

SWOT ANALYSIS

Strengths1. Largest cellular service provider in India, with over 164.61

million subscribers at the end of April 2012.

2. Largest Telecom operator in the world with 207.8 million subscribers across 19 countries at the end of 2012

3. Only Indian operator, with VSNL, that has an international submarine cable.

4. High brand visibility

5. Strong advertising with celebrity brand ambassadors

Weakness

1. Price Competition from BSNL and MTNL. Airtel is tough competition from the operators like BSNL

and MTNL as these two operators are offering services at a low rate.

2. Untapped Rural Market, Although Airtel have strong Presence throughout the country but still they are far away from the Indian rural part and generally this part is covered by BSNL so indirectly Airtel is loosing revenue from the rural sector

3. Service centre issues

Opportunity

1.Fast expanding cellular market2.Latest and low cost technology3.Untapped rural market

Threats

1.New entrant's low price offering2.Saturation point in Basic telephony service3.Mobile Number Portability

Conclusion & Recommendation

In this cut throat competition the winner will be that company that understands consumer needs focusing on usability and giving control to the users

The losers are ones that focus on technical differentiation that majority of consumers do not understand.

Future strategy which can make one to be a leader are competitive tariff plans ,VAS and focus on rural markets.

THANK YOU