Launching 4G Services in India

By : Pankaj ChomalSITM : MBA (Executive)-2014-16PRN:14020547005

4G Introduction Features Ansoff’s MatrixNeed for 4G Services in IndiaPorter’s 5 ForcesPESTEL Analysis of 4GSWOT Analysis of 4GSTP AnalysisMarketing Mix : 4 P’sWay forwardReferences

Look forward for:

What are these G’sTechnology

When Introduced? Speed Signal Drawbacks Features

1G Introduced in 1980s and completed in early 1990s.

Up to 2.4kbps Analog Poor Voice Quality

Poor Battery Life

Large Phone Size

No Security

Limited Capacity Poor Handoff Reliability

Can talk wirelessly.

2G Launched in Finland in the year 1991.

Data speed was up to 64kbps

Digital 2G requires strong digital signals to help mobile phones work. If there is no network coverage in any specific area , digital signals would weak.

These systems are unable to handle complex data such as Videos.

It enables services such as text messages, picture messages and MMS (multi media message).

It provides better quality and capacity

What are these G’s…Technology

When Introduced? Speed Signal

Drawbacks Features

3G This was introduced in year 2000s.

Data Transmission speed increased from 144kbps- 2Mbps.

Digital

• Expensive fees for 3G Licenses Services.

• It was challenge to build the infrastructure for 3G.

• High Bandwidth Requirement.

• Expensive 3G Phones.

• Large Cell Phones.

Providing Faster Communication

Send/Receive Large Email Messages

High Speed Web / More Security

Video Conferencing / 3D Gaming

TV Streaming/ Mobile TV/ Phone Calls

Large Capacities and Broadband Capabilities

11 sec – 1.5 min. time to download a 3 min Mp3 song.

What are these G’s…Technology

When Introduced? Speed Signal

Drawbacks Features

4G Started from late 2000s.

100Mbps – 1Gbps speed.

Digital •Battery uses is more

•Hard to implement

•Need complicated hardware

•Expensive equipment required to implement next generation network.

Higher data rates and expanded multimedia services.

Capable to provide speed 100Mbps-1Gbps.

High QOS and High Security

Provide any kind of service at any time as per user requirements, anywhere.

Also:o More Securityo High Speedo High Capacityo Low Cost Per-bit etc.

NetworkCoverageAccessibilityAvailabilit

y

ExperienceBuyingUtility

VAS

Price

Ansoff’s Matrix

Market Penetration

Product Development

Market Development

Diversification

Increasing Risk Increasing Risk

Products

Market

Existing

Existing

New

New

4G Services are New

Product in Existing Market.

Hence, new product

development carries more

risk than simply

attempting to increase

market share.

Need for 4G• Mobile networks have until recently been relying

purely on 3G/UMTS technology, which is now 10 years old and struggling to cope with the needs of today's data hungry users.• 4G/LTE (Fourth Generation / Long Term Evolution) is

the next stage in mobile network development and provides users with much faster data speeds than 3G is able to.

Five Forces for Business Analysis

RivalryThe level of rivalry is high as there is exit barriers in the Telecom industry.There is also a strong price competition among the Service Providers.

Threat Of New EntrantBarriers to entry the mobile phone services sector are high. Therefore it is very difficult for a new entrant to enter this industry.In addition, it is very expensive to enter this industry due to the high costs to entry the market. Furthermore, to entry the market is expected to do it in a large scale in order to achieve the low costs levels.

Threat of Substitute Product or Services The major threat comes from broad band or WiMAX services providers such as BSNL or Reliance. There could be other Service providers providing the same services.

Bargaining Power of Suppliers

The device suppliers will play a critical role as devices to consume 4G services are different.

Bargaining Power of

Buyer

The majority of subscribers are prepaid or pay as you go.Postpaid subscribers will sign a contract

Porter’s Five

Forces

PESTEL AnalysisPolitics • With changes in Government to support Telecom industry, will help

• Don’t see much change in Government policies due to stability of it.• More regulation in favor to support new trend in technologies.

Economy • With overall improvement in Inflation rates and increasing numbers in paychecks, gives an opportunity to spend more, on more than need.

• Globalization will also help us.• High disposable income.

Social • Educated, Young, high spending power and information hungry people

• Want everything on their finger tips, hectic lifestyle.• Media is also playing pivotal role in ever changing world.• Fast Socio & Cultural changes happening.

Technology

• High impact of Internet and technologies.• More & More new items are discovered due to more R&D

expenditure.• Communication cost is reducing day by day.• Online video calling and all time & everywhere connected concept/

Environment

• Due to increase in awareness regarding saving trees, more and more people moving towards e-Issues of magazines & news papers.

Legal • More technology favorable regulations.• More stringent Cyber laws.

From PESTEL to SWOT

SWOT Analysis of 4G 4G visions take into account installed base

and past investments Strong position of telecommunications

vendors expected in the market place Faster data transmission and higher bit rate

and bandwidth, allow more business applications.

Has advantage for personalized multimedia communication tools

No larger user community for advanced mobile data applications yet

Growing divergence between telecommunications vendors and operators

Not possible to offer full internet experience due to limited speed and bandwidth

Comparatively higher cost to use and deploy infrastructure compared fast mobile generation

Evolutionary approach may yield opportunities for the 4G

Emphasis on heterogeneous networks capitalizes on past investments

Strategic alliance and coalition opportunities with traditional non telecommunication industries

Worldwide economy recover simulates consumption and consumer confidence, so bring in opportunities for telecommunication sections

It is expected and predicted that consumers will continue to replace handsets with newer technology at a fast rate

Desirable higher data capacity rates, the growth opportunity for 4G is very bright and hopeful

Faster rate of growth and developments in other region.

Since 3G mobile is still in the market, it squeezes the market competition in mobile industry

STRENGTH

WEEKNESSES

OPPORTUNITIES

THREAT

STP Analysis

SEGMENTATION

TARGETING POSITIONING

STP Analysis…

Geographic

Young Working Professional

Urban people

Games Enthusiastic

Research & Analysis Activities

Demographic

Middle aged

Male/female

Middle to high income groupWorking professionals

SEGMENTATION

Business men

STP Analysis…TARGET CUSTOMER

STP Analysis…POSITIONING

The tag line to be used to describe 4G service will be “MAGIC in your hand”.MAGIC will stand for:• Mobile Multimedia• Anytime Anywhere• Global Mobility Support• Integrated Wireless Solution• Customized Personal Services

“MAGIC in your hand”

4 P’s

Marketing Mix

Marketing Mix…Product• Domain of 4G extends beyond 1G, 2G, and 3G• > 2 Mbps in a wide-area mobile system (> 20 Mbps peak).

• Could coexist with 2G and 3G.• 4G is not necessarily defined by the bit rate, but by a significant advance in system capability beyond what can be achieved with 3G.• Better Security by implementing complex key hierarchy.• The U.S.P. of our product “MAGIC” would be that, it will be available even in trial pack for both Post-paid and Pre-paid customer.

Price• Pricing would be dynamic• Initially free trial period would be provided to the corporate & working professional customer.• The initial 4GB data would be at standard rate and after that both the price and bandwidth will drop. To keep fair practice in place.

Marketing Mix…

Place• The product will be launched where people are already

consuming 3G services.• 4G service availability would be high near to offices and city

center where more gaming zones.• Free 4G services will be provided in Airport, Malls etc.• Will bundle 4G services along with free Video streaming and

Cloud storage.• Will be launched in Metros, Urban area and then in sub-urban

areas.• It will be available in every major city of India. We will sell

our product at retailer outlets and through our Customer Care service.

Marketing Mix…

Promotion• Initially, the Pricing of the “MAGIC” would be same as that of

3G service.• For corporate customer, it will be given on 30 days trial.• For customer, who needs video streaming, there will be

different data package.• We will do tie-up with some Satellite channels to stream their

channels free of cost in trial period.

Various media channels such as Newspapers, Magazine, Social networking sites, Radio, Television, Internet ( Social Networking Sites), Bill boards and various Promotional Events in Malls will be conducted.

Marketing Mix…

Single Segment

Targeting Other Segment

Diversifying Worldwide

World’s Market LeaderWay

Forward

Conclusion4G systems offer this promise of a standard that can be embraced worldwide through its key concept of integration. Future wireless networks will need to support diverse IP multimedia applications to allow sharing of resources among multiple users.The Fourth Generation promises to fulfill the goal of PCC(Personal Computing and Communication) a vision that affordably provides high data rates everywhere over a wireless network.Hence, we should go full fledge on this.

References• Technical white paper- Long Term Evolution (LTE): A

Technical Overview: www.motorola.com• Workshop on Security and Privacy in 4G Networks: A

Survey of Security Threats on 4G Networks: IEEE 04437813 • IEEE LTE and the Evolution to 4G Wireless, Design and

Measurement Challenges: www.agilent.com/nd/lte• http://

www.ukessays.com/essays/information-technology/