A Study of

Telecom Industry
Presented by:

MITHUN GHOSH
9163797960

INTRODUCTION
Telecom in the real sense means transfer of information
between two distant points in space
Telecom is a huge and varied fastness of technologies,
companies, services
that is truly global in nature

Telecom stands as one of the most essential elements of the

business world in terms of Connecting the World

History of Telecom Industries

1851

First operational land lines were laid by govt near Calcutta (seat of
British power)

1881

Telephone service introduced in India

1883

Merger with postal system

1923

Formation of Indian Radio Telegraphy Company(IRT)

1947

Nationalization of all Foreign telecommunication companies to form the

posts, Telephone and Telegraph ,a monopoly run by the governments
Ministry of Communications.

1985

Department of Telecommunication(DOT) established.

1986

Conversion of DOT into two wholly government-owned companies: the

VSNL for international telecommunications and MTNL for service in
metropolitan areas.

1997

Telecom Regulatory Authority of India Created.

2000

DOT become a corporation ,BSNL

Overview of Telecom
Industries

Indian Telecom sector, like any other industrial sector

in the country, has gone through many phases of
growth and diversification. Starting from telegraphic
and telephonic systems in the 19th century, the field
of telephonic communication has now expanded to
make use of advanced technologies like GSM,
CDMA, and WLL to the great 3G Technology in
mobile phones. Day by day, both the Public Players
and the Private Players are putting in their resources
and efforts to improve the telecommunication
technology so as to give the maximum to their
customers.

Others
1%
Airtel
24%

Reliance
19%

Mobile company market

share
(as on 30Th apr,2009)

Aircel
5%

IDEA
11%

Vodafone
18%
Tata
9%

Fixed line Telephone

Bsnl
13%

Mobile Telephone

Players of Telecom Industries

Airtel
BSNL
Vodafone
Reliance
Idea

All players are launched net usage by USB

(plug & surf from anywhere)

AIRTEL
Established in 1995 by Sunil Mittal as a Public Limited
Company, Airtel is the largest telecom service provider in
Indian telecom sector. With market capitalization of over
Rs. 1,360 billion, Airtel has 24% of total market share of
GSM service providers. Providing GSM services in all the 23
circles, Airtel was the first private player in telecom sector
to connect all states of India. Also, Airtel is the first mobile
service provider to introduce the lifetime prepaid services
and electronic recharge systems.

SWOT ANALYSIS
STRENGTHS

WEAKNESS

Market share.

Price Competition from BSNL and

MTNL

Pan India Footprint.

Customer care.

Losing lead on technical expertise.

Promotions
OPPORTUNITIES
The fast extending IPLC market.
Latest technology and low-cost
advantage.
Growth of mobile phone users.
Untapped Rural Market.

THREATS
Market Maturity in basic telephony
segment.

AIRTEL DATA CARD:USB Modem Rs.

3999/-

Standard
plan

Plan l

Plan 2

Plan 3

Airtel Data
Card Rental

Rs. 49/-

Rs. 350/

Rs. 599/-

Rs. 999

Free Bundled
Usage

NIL

500 MB

1 GB

Unlimited

Data Usage
(per MB)

Re. 0.10/- per

10 KB

Rs. 5/-

Rs. 3/-

unlimited

Free SMS per NA

month

NIL

100

100

Voice Plan

Voice Rental
Inclusive*

Voice Rental
Inclusive

Voice Rental
Inclusive

Additional
Any Plan

VODAFONE

Vodafone Essar in India is a subsidiary of Vodafone

Group Plc and commenced operations in 1994 when
its predecessor Hutchison Telecom acquired the
cellular license for Mumbai. Vodafone Essar now has
operations in 20 circles with over 54.63 million
customers. Vodafone is the worlds leading
international mobile communications company. It now
has operations in 25 countries across 5 continents
and 40 partner networks with over 269 million
customers worldwide. Vodafone partnered with Essar
Group as its principal joint venture partner for the
Indian market.

VODAFONE DATA CARD

USB Modem Rs. 2999/Monthly Rental

Rs. 499

Rs. 699

Free Data

500 MB

1 GB

User charge

5p / 10 KB

5p / 10 KB

Special Offer:

(12 month advance Rental Plan)

Advance Rental:
Data Bundle:

Rs. 5999/- Period: 12 Months

1 GB usage per month for 12 months.

Note: Customer is moved to Rs. 499/- (1 GB) plan at the

end of offer period

BSNL (Bharat Sanchar Nigam Ltd.)

Founded in 2000, Bharat Sanchar Nigam Ltd. India's largest public

sector Telecommunications Company providing a wide variety of
telecom services. Its service range covers Wire line, CDMA mobile,
GSM Mobile, Internet, Broadband, Carrier service,
VSAT, VoIP services and 3G service , etc. In 2005-06, the BSNL
earned revenues of Rs. 40,177 crore, & In 2007-08, the BSNL
earned revenues of Rs.38,053 crores.

BSNL Evdo Data Card Tariff

What is EVDO :
This word stands for Evolution-Data or Evolution-Data Optimized is a
internet service standard for wireless internet connections with speeds
ranging upto 2.4Mbps
KOLKATA
PLANS

Down
Payment

UTTARPRADESH

JHARKHAND

CHENNAI

Monthly Down
Rental
Payment

Monthly Down
Rental
Payment

Monthly Down
Monthly
Rental
Payment Rental

PLAN 1 Rs.2980

Rs.221

Rs.1650

Rs.400

Rs.2460

Rs.750

Rs.3500

Rs250

PLAN 2 NA

NA

Rs.3600

Rs.250

Rs.3600

Rs.250

NA

NA

IDEA

Joint venture of Aditya Birla Group and Tata Group.

Idea Cellular, is a part of Aditya Birla Nuvo, a flagship
company of the Aditya Birla Group
Idea is growing its network in 11 circles.
Idea offers both prepaid and post paid services in the GSM
network.
It has 11% market share.
Idea has a base of 2.3 crores subscribers all over the
country.
A three-year contract was signed between Idea cellular and
Ericsson for GSM expansion.

IDEA NETSETTER DATA CARD

Idea Net setter data card Price in India
Rs. 2490/- MRP (incl of taxes)
Tariff plan

Free Data Usage

Usage change
beyond free usage

Special offer (For

first 3 bill cycle)

Net Setter 299

512 MB

Rs 2/MB

Free Usage 1 GB

Net Setter 399

1 GB

Rs 2/MB

Free Usage 1 GB

Net Setter 849

Unlimited

NA

Rental - 500

Idea Net setter data card Features

Global roaming
GRPS
Data and SMS capabilities.
Plug & Play function, no installation CD required
SIM-lock function

RELIANCE
Established in 2002, Reliance communication is
the wholly owned subsidiary of Anil Dhirubhai
Ambani Group of Companies providing the
telecommunication services. Reliance offers
prepaid and postpaid mobile services with R-world
and fixed line services with broadband services. In
673 cities, Reliance Communications offers a wide
range of telephony services. With an optical fiber
network of 80,000 kms, the company aims at
providing best services to its customers.

Reliance Net connect Broadband+

Price Rs.
2299/Pack

Price

Validity

Rs. 250/-

30 Days

Rs. 500/-

30 Days

Broadband+ 1GB Pack

Rs. 715/-

30 Days

Broadband+ 3GB Pack

Rs. 935/-

30 Days

Broadband+ 5GB Pack

Rs. 1,210/-

30 Days

Broadband+ 10GB Pack

Rs. 1,379/-

30 Days

Broadband+ 1GB Pack

Rs. 200/-

1 week

Broadband+ 6GB Pack

Rs. 1500/-

3 months

Broadband+ 18GB Pack

Rs. 3,000/-

6 months*Additional
usage @Rs.1per MB

Broadband+ 300MB
Pack
Broadband+ 700MB
Pack

Additional usage @Rs.1per MB

Wireless broadband for laptops and desktops
Download speeds up to 3.1 Mbps and upload speeds up to 1.8 Mbps
Simply plug and play

Evaluation Criteria & Parameter of Competitors

IDEA

Factor

Reliance

Airtel

Vodafone

Used For

Laptop & desktop

Laptop & desktop

Laptop & desktop

Laptop & desktop

Technologies

CDMA

EDGE

EDGE

EDGE

Price

2299

3350

2999

2490

Speed

144 kbps to 3.1Mbps 512 kbps

.53 Mbps

Up to 3.6 Mbps

Voice Call

yes

yes

NA

Yes

No of Tariff

500 MB free

NA

Rs.350

Rs.450

Rs.299

1 GB free

Rs.650

Rs.599

Rs.699

Rs.399

Unlimited

Rs.1500

Rs.999

NA

Rs.849

Unlimited(Night)

Rs.400

NA

NA

NA

Minimum rate

Rs.300

Rs.49

Rs.499

Rs.299

Maximum rate

Rs.1500

Rs.999

Rs.699

Rs.849

Additional Data

Rs.2/MB

Plan Rs.350- Rs.5/MB NA

Usage(size)

Plan Rs.599- Rs.3/MB

Rs.2/MB

Marketing Mix
AIRTEL

PRODUCT

PRICE

VODAFONE

RELIANCE

BSNL

IDEA

Pre-paid,
Post-paid,
Wireless
.Value Added
Services (VAS)
like hello tunes ,
GPRS.

Prepaid
Postpaid. Its
gives different
features such
as games,
pictures, ring
tones,
information
services.

Prepaid,
postpaid, Wi- fi,
CDMA, mobile
services,
wireless desktop
phones, public
booth telephony,
wire line services
and enterprise
solutions, GSM
space.

Prepaid
,post paid,
Landline
, public
booth
telephony

Prepaid,
Postpaid,
Data card

Customer based
pricing strategies

Vodafone
offers a
number of price
plans to suit all
of its target
groups.
Phone users
can top up their
phone on line

It offers various
pricing structure
so that every
people can afford
this.

It offers
various
pricing
structures
to suit
different
customer
groups

Customer
based
pricing
strategies

Marketing mix
AIRTEL

PLACE

PROMOTIO
N

VODAFON
E

BSNL

IDEA

RELIANCE

It has wide
and extensive
presence even
in the
remotest
areas Airtel
Customer
Care Touch
Points

Vodafone
operates over
300 stores and
also sells
through other
outlets. It has
expert staff in
the stores to
help buyers.

It reaches to
its 58million
customers in
more than
410,000
towns
through
different
outlets &
stores.

It has 2.44
crore GSM
customer
base in India.

It has 1.3
crore GSM
customer base
in India

Print & video

ads
Endorsement
by big
celebrity
Special
discount in
calling rate &
sms

Ads on T.V,
News paper,
billboard
Stores have
special offers,
promotions
and point of
sale posters to
attract those
inside the
stores to buy

, TV
commercials
,billboard,
newspaper,
telecom
partner of
KITES

Special
discount in
calling rate &
sms
POS material

TV
commercials
Endorsement
by Abhishek
Bacchan
Billboard
Special
discount in
call & SMS
rate

COMPETITIVE ANALYSIS (POSITIONING

STRATEGY)

Vodafone has veered

towards warmth and
emotions.
Vodafone used the
powerful visual imagery of
a dog.

Airtel Positions itself as a

lifestyle brand.
Airtel choose to use music,
which is not nearly as
effective.

COMPETITIVE ANALYSIS (TARGET AUDIENCE)

They

are targeting
middle class person
as their target
audience.

It

can be justified by
their product like
chota recharge.

group or class of
persons enjoying
superior intellectual
or social or economic
status
Up

market
class of people

Developments in telecom
industry
3G Technology In India
3G or Third Generation technology is a convergence of
various Second Generation telecommunication systems.
The technology is intended for SMARTPHONES It offers 3 Mbps speed for downloading, which is very high
as compared to that of the 2G technology.
The 3G technology provides for 1.Internet surfing,
2.Downloading,
3.E-mail attachment downloading,
4.Audio-video conferencing,
5.Fax services and many other broadband applications.

Future Trends
Convergence of technologies & the ability
of private players to offer it to the market
faster than the incumbent operator.
The telecom industry in 2012 will be very
different from the one we know today.
Developing strong partnership skills,
focusing on customer user groups,
embracing Internet services and starting to
talk the language of Web 2.0 will enable the
carriers to thrive well into the future,"

Conclusion

In this changing landscape, the winners will be

those companies that understand consumers'

needs, focusing on usability and actually giving

control back to the users. The losers will be the
ones that focus on overly technical product
differentiation that the majority of consumers will
not understand and therefore not use.