K J Somaiya Institute of Management Studies and Research 2012

A Comparative study of network service providers in India

Data Analysis and Data Models Presentation

EXECUTIVE SUMMARY

INTRODUCTION
Telecom industry - Third largest in the world. One of the lowest tariffs in the world. Major sectors telephony, internet & broadcasting. Twenty times growth in 10 years. Worlds second largest mobile users base. Worlds third largest Internet user base. Directly contributes to more than 1.5% to the GDP of the country. Mobile subscribers base in India is expected to reach 1.159 billion by 2013. 11 GSM and 5 CDMA operators providing mobile services in 22 telecommunication circles.

History of Telecom in India- I

First Military Landline from Fort William to Lalbazaar (Calcutta ) by the British Govt Merger with the Postal service Merger of ETC &IRT to form (IRCC) Indian Radio Telegraph Cable Company

1851

1881

1883

1923

1932

1947

First Civil landline service introduced for the British Viceroy and his team

Formation of Indian Radio Telegraph Company (IRT)

Formation of Posts Telephone & Telegraphs under Ministry of Communication

History of Telecom in India- II

DOT established separate from Postal system 1st call on Mobile phone Telecom Minister Sukh Ram(Delhi) to Jyoti Basu (Calcutta) Cellular service launched. New Telecom Policy(NTP) is adopted For 3 months in a row India beats China for the maximum subs added every month

1985

1986

1995

1997

1999

2000

2009

DOT spilt into 3 : MTNL (metros) DOT (others) VSNL (International)

TRAI created (Telecom Regulatory Authority of India)

DOT becomes a corporation = BSNL

Review of literature
http://articles.economictimes.indiatimes.com/2 012-06-26/news/32424822_1_revenue-marketshare-vodafone-mobile-operators www.coai.in(Projects and Reports available online) http://www.iitcoe.in/ (IIMA IDEA Telecom Centre of Excellence)

Need for study

To know the network providers in India To compare their market share Study of top 4 providers wrt. : Their market share No. of subscribers Their revenue generated

Conceptual framework
1
2
Setting the objective Analysis the data Calculations Results Findings Future Implications

Objectives
To study the decrement in ARPU To study the decrement in the additional number of subscribers per month To compare the number of subscribers and the market share of various network service providers in India.

Hypothesis
Number of subscribers are increasing thereby increasing the overall revenue. The ARPU (average revenue per user) also increases on increase in total revenue. C:\Users\sheena\Desktop\stats ppt\descriptive analysis.xlsx stats ppt\ARPU Revenue Analysis - Jan-Mar 10FINAL.xls

General Facts and Figures

GSM SUBSCRIBER FIGURES August -2012 Total number of GSM Subs as of August 2012 671.95 million The GSM Subs declined by 7.1 million in August 2012 (1.05% decrease from previous month) Maximum GSM Subs addition in the month of August by - Aircel- 0.79 million Maximum GSM Subs addition in the month of August in - Chennai- 1,07,131 Maximum GSM Subs - Airtel - 186.90 Million

Group Company wise % market share (Subscribers) as of August 2012

Videoco n, 0.71 Uninor, Aircel, 6.27 9.82 BSNL, 14.09
MTNL, 0.76 Loop, 0.46 Airtel, 27.82

C:\Users\sheena\ Desktop\stats ppt\market share.xlsx

IDEA, 17.26

Vodafo ne, 22.82

200 180 160 140 120 100 80 60

186.90

153.35

Number of Subscribers as of August 2012 (in Millions)

115.97 94.68

65.95
42.11

40 20 0

4.78

5.12

3.08

Vodafone

IDEA

BSNL

Aircel

Uninor

Videocon

MTNL

Loop

Airtel

Operator Wise % Growth over previous Month

1.22% 0.0%
Vodafone IDEA BSNL Aircel

2.67%

Uninor

Videocon

MTNL

Loop

Airtel

-1.01%
0

-1.40%

-1.98%

-1.01%

-5.36% -7.44%

Statistical analysis
All india GSM sub figures June 2012.xls All india GSM figures July 2012 - Final (2).xls All India GSM figures August 2012.xls

Marketing Strategies

Main findings
Number of subscribers are increasing thereby increasing the overall revenue. --TRUE The ARPU (average revenue per user) also increases on increase in total revenue. --FALSE

Summary and conclusion

Number of subscribers are increasing. Although Airtel is the market leader but it market share is decreasing Aircel being the lowest holder in market share but is playing well and hence its market share is increasing For all the service providers the ARPU is decreasing The number of subscribers per month are decreasing in Airtel and increasing in Aircel

Future implications
AIRCEL will now cover a larger market AIRTEL will lower the rates of its services to maintain its market share Airtel might also have to increase the dealer share which it reduced earlier Along with it the rates of services might increase due to TRAI regulations( due to increase in the cost of the spectrum)

References
http://articles.economictimes.indiatimes.com/2 012-06-26/news/32424822_1_revenue-marketshare-vodafone-mobile-operators Department of Telecommunications Telecom Regulatory Authority of India (TRAI) Cellular Operators Association of India (COAI) Association of Unified Telecom Service Providers of India (AUSPI) Telecommunication Engineering Center (TEC)

Thank You!!