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Telecom Warfare The battle for Survival. The sequence of events……. The ‘per-second-billing’ revolution by Tata Docomo’s GSM service The introduction of 50p pulse flat by Rcom - a wave of lowest tariff buzz in the country enthralled every one A damage of Rs 35,000 crore to Bharti’s valuation
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The sequence of events…… • The ‘per-second-billing’ revolution by Tata Docomo’s GSM service • The introduction of 50p pulse flat by Rcom - a wave of lowest tariff buzz in the country enthralled every one • A damage of Rs 35,000 crore to Bharti’s valuation • RCom meanwhile witnessed its valuation declining by 21 % at Rs 14,169 crore. • Such a huge loss just a result to per sec and 50p pulse. Did anybody imagined it????
Testing the pockets • Our listed telcos collectively lost Rs 54,000 cr • Idea lost Rs 3534 crore • MTNL lost Rs 522 crore • Tata Teleservices (Maha) Rs 531 crore • Tata Communication Rs 370 crore • Spice Communication Rs 227 crore
Industry Scenario • The telecom subscriber base in India reached the 525.65 mn mark • Overall Tele-density in India - 44.87 (Wireline-3.18) • Fastest Growing Sector – CAGR 22% (2002-07) • Second Largest Telecom Market - Lowest tariff • Lack of Transparency in Spectrum & License Allocation
Industry Scenario • Difficult to differentiate service offerings or customer service • Huge License Fees to be paid upfront • High gestation period • Rapidly changing technology • Infrastructure Setup Cost - High
Hyper competition…….??? • It occurs when technologies or offerings are so new that standards and rules are in flux. • This results in competitive advantages that cannot be sustained. • In response, companies must constantly compete in price or quality, or innovate in supply chain management, new value creation, or have enough financial capital to outlast other competitors.”
The Person • Big Daddy of the industry • Takes care of you where ever you go • Most respected and classic personality • Reliable and dependable family member • Visionary ,looking beyond the horizon • Truly, a global Indian
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”
Bharti Airtel • Largest Private Integrated Telecom Company in India • 3rd Largest Wireless Operator in the World • Bharti Airtel formerly known as Bharti Tele-ventures Limited (BTVL) is a JV between Singtel and Bharti Telecom. (31.9 % stake) GROUP 7
Meaning behind the logo Airtel logo is a strong ,contempory, a confident symbol of a brand that is always ahead of the rest , always ‘In-touch’ and on customer’s side. • It incorporates two solid, red rectangular forms whose counter-form creates an open doorway. • The title case lettering with its capital ‘A’ reinforces the leadership position. • The red dot cues in the focus on innovation.
Mile Stones of Bharti Airtel • Bharti Airtel was established as Bharti Tele-Ventures, in 1995. • The company offered its initial public offering in 2002. • Vodafone acquired a 10% stake in Bharti Tele-Ventures for around $1.5 billion, in 2005. • Bharti Tele-Ventures renamed itself to Bharti Airtel Limited, in 2006. • Airtel launched its Iphone in august 2008. • Airtel successfully tested 3G services in Delhi, Mumbai and Bangalore and are waiting for the spectrum to be allocated. • MTN -Bharti merger begins to take shape in June -09 • MTN Bharti deal called off in Sept -09 • Joins the pricing war at the end of November - 09 Express yourself Express yourself
Integrated Telecom Company • Wireless Services • 2G/3G • VAS, Blackberry • TelemediaServices • Fixed Line • Broadband • DTH / IPTV • Enterprise Services • Carrier • Corporate • Passive Infrastructure • BhartiInfratel • Indus Tower GROUP 7
Price • Customer based pricing strategies. • Flexible pricing mechanism • Late adopter to price war • Finally changed to per second billing with reduced roaming rates.
Place • It has wide and extensive presence even in the remotest areas.(Pan India coverage) • Airtel Customer Care Touch Points • Distributors like E.g. Paan shops, grocery stores, chemists, outlet etc.
Promotion Large scale print and video advertising. Brand endorsers - Big celebrities like SRK Saif, Kareena In 2002 Airtel got its Signature tune from A.R. Rehman, this signature tune is the most downloaded tune in India. Ads based on the emotional connect
Business Strength • Current market share - Market Leader • Pan India Network • Recognized Globally • Brand and corporate image • Focused Leadership • Managerial personal • Promotional effectiveness
Airtel – Strategy MANTRA : Focus on Core Competencies and Outsource the rest! • Ericssion – Networking • IBM – IT • Mphasis – call centre • Bharti Infratel – Tele Infra
Future Strategies • Translate its expertise in Indian markets to other emerging economies. This could call for acquisitions globally. • BhartiAirtel to invest US$ 126.5 million to ramp up its networks in the Assam and Northeast circles • Technology leadership is a must – Airtel must ensure that its dependency 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.
Stimulate. Liberate. Innovate.
To be the most customer-focused mobile service brand, continuously innovating to help liberate our customers from the shackles of time & space
Till about eight years ago, the corporate name used to be the butt of many jokes. ??? BATATA!!
A three-way joint venture between the Birla Group, Tata and AT&T, it was called the Birla-AT&T-TATA
INORGANIC GROWTH STRATEGY 40.8 % STAKE 8 YEAR DEAL WITH IBM WORTH $19.2 MILLION
PRESENT STRATEGY • Present in 21 of 22 circles, latest entry - ASSAM • MAHARASHTRA • UTTAR PRADESH • HARYANA
Special pricing/ tariffs for each circle during entry • From basic voice & Short Message Service (SMS) services to high-end value added services such as Mobile TV, Games etc - IDEA is seen as an innovative, customer focused brand
'Best celebrity endorsement award' at NDTV Tech Life Awards “I remember, I salute, I pledge” Talk for India at Citizen’s Park on November 26.
Idea is simultaneously conducting indoor WiMAX trials in three cities - Pune, Bangalore and Kochi. • Eyes rural circles • `cover gaps quickly'
STATUS QUO $10 billion - investment till 2011 Rs. 20 billion for 3G spectrum despite economic slowdown. NGN expertise of Maxis telecom in more mature markets like Malaysia especially with 3G & WiMAX. 4.65% 2.88%
A special handset for senior citizens. This will only have four buttons; one each for the doctor and police with two for calling two relatives VAS & DATA SERVICES
To be a nation wide player by end of 2009 • To acquire more number of subscribers • To increase its tower numbers • 3G • Data play, VAS • Roping in more partners • Banking on increasing churn rate • Focus on youth FUTURE???
BRAND PERSONALITY Make the most of now
Vodafone • Cute • Friendly • Trend setter • Approachable • Youth student
Vodafone • Youth oriented Brand • Boy - girl • Quirky – Zoo Zoo • Friendly – Happy to help • Fun – Make the most of now • Hugely popular – 323 million subscribers world wide
Red: For the passion and spirit • Rock Solid: dependable and empathetic • Restless: always challenging to improve and being funny. • Glocal brand
Vodafone Original Corporate Logo of Vodafone before 1997 New Corporate Logo of Vodafone as of 1997. • It represents a quotation mark within a circle. With 'O' in the Vodafone logotype being opening and closing quotation marks, suggesting conversation. Its logo is a true representation of that belief - The start of a new conversation, a trigger, a catalyst, a mark of true pioneering. • The name Vodafone comes from Voice data fone, chosen by the company to "reflect the provision of voice and data services over mobile phones.“
Products and services offered by Vodafone • Voice Mobile telecommunication services • Mobile Text centre (Messaging Services – SMS, PXT and MMS) • Data Services • Fixed line • Fixed line internet access • Device (Handsets and Vodafone mobile connect) Mr. Vittorio Colao of Italy is the new CEO of Vodafone after Mr. Arun Sarin took retirement on 29th July, 2008. Mr. Asim Ghosh is the CEO of Vodafone Essar, India
Product and services in India • World calling card • Post paid services • Prepaid services • Vodafone handy phone • Vodafone PCO