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A

Report on

Marketing Management

BHARAT SANCHAR NIGAM LIMITED

SUBMITTED BY:

Harsh Sankhala 62Harsh Sankhala 62

Aditya Chavan 65Aditya Chavan 65

Sachin Shetty 92Sachin Shetty 92

Vivek Vinodraj 98Vivek Vinodraj 98

Lohit Sharma 105Lohit Sharma 105

Harshil ari!ala 11"Harshil ari!ala 11"

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#a$le o% Contents1& 'ntrod(ction))))))))))))))))))))))))))))1

1&1& #elecom 'nd(stry))))))))))))))))))))))))1

1&2& A$o(t *S+L)))))))))))))))))))))))))&&&&"

1&"& ,ilestones)))))))))))))))))))))))))))&5

2& -rod(cts and Services)))))))))))))))))))))))&&&&&6

"& Se.mentation/ #ar.etin. and -ositionin. ))))))))))))))))9

"&1& Se.mentation)))))))))))))))))))))))))&&&&9

"&2& #ar.etin.)))))))))))))))))))))))))))&10

"&"& -ositionin.))))))))))))))))))))))))))&&&11

& ,arketin. ,i )))))))))))))))))))))))))))1

&1& -rod(ct Service))))))))))))))))))))))))&&&1

&2& -rice)))))))))))))))))))))))))))))&1&"& -romotion)))))))))))))))))))))))))))15

& & -lace)))))))))))))))))))))))))))))&18

&5& -eo3le))))))))))))))))))))))))))))&&&19

&6& -rocess))))))))))))))))))))))))))))&19

&4& -hysical vidence)))))))))))))))))))))))&&&19

5& ,arketin. Channels))))))))))))))))))))))))&20

6& Com3etition vervie!)))))))))))))))))))))))&&2"

4& 7inancial #rends)))))))))))))))))))))))))&&&"0

8& S #))))))))))))))))))))))))))))))""

9& Strate.ies))))))))))))))))))))))))))))&&&"

10& Concl(sion))))))))))))))))))))))))))))"6

11& e%erences))))))))))))))))))))))))))))"4

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1 '+# :;C#' +

1.1 # L C ,,;+'CA#' + '+:;S# < V V'

The Indian Telecommunications network is the third largest in the world and thesecond largest among the emerging economies of Asia. Today, it is the fastest growingmarket in the world. The telecommunication sector continued to register significantsuccess during the year and has emerged as one of the key sectors responsible for Indiasresurgent Indias economic growth.

Growth

This rapid growth has been possible due to various proactive and positivedecisions of the Government and contribution of both by the public and the private sector.

The rapid strides in the telecom sector have been facilitated by liberal policies of theGovernment that provide easy market access for telecom e uipment and a fair regulatoryframework for offering telecom services to the Indian consumers at affordable prices.

Wire line Vs Wireless

It has also undergone a substantial change in terms of mobile versus fi!ed phonesand public versus private participation. The preference for use of wireless phones has also

been predominant in the sector. "articipation of the private entities in the telecom sector israpidly increasing rate there by presenting the enormous growth opportunities. There is aclear distinction between the Global #atellite $obile %ommunication &G#$' and %ode(ivision $ultiple Access &%($A' technologies used and the graph below shows thedivide between the two &)igure 1.1.1 and )igure 1.1.*'.

'nd(stry :ata

The Indian telecom industry is worth with the total number of +1 .* millionsubscribers. The India telecom industry will grow at a compound annual growth rate&%AG-' of 1 . per cent between */1/ and */10 and will touch revenues of -s. ,22,+%rore &3 * billion' according to a research

Se.ment !ise Stat(s

Wire line Services

4ith increasing penetration of the wireless services, the wireline services in thecountry is becoming stagnant. 5n the other hand, 6roadband demand has picked up and

promises to stabilise fi!ed line growth.

GSM Sector

In terms of the Global #ystem for $obile %ommunication &G#$' subscriber basethis now places India third after %hina and -ussia.

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CDMA Services

%($A technology was introduced in India as a limited mobility solution. The

introduction of %($A services has created competition, lowered tariffs and offered manyciti7ens access to communication services for the first time

Internet Services

Internet services were launched in India on August 1 , 188 . In 9ovember 188the government opened up the sector to private operators. A liberal licensing regime was

put in place to increase Internet penetration across the country. The growth of I"telephony or grey market is also a serious concern. Government loses revenue, whileunlicensed operation by certain operators violates the law and depletes licensed operatorsmarket share. 9ew services like I":T; and I":Telephony are becoming popular with thedemand likely to increase in coming years. The scopes of services under e!isting I#"

license conditions are unclear.

)igure 1.1.1

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#ig$re % %!

1.2 ABOUT BSNL

6

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The state:owned company operates in *1 of IndiaBs * regional circles, but does not provide services in 9ew (elhi or $umbai, where sister company $T9= operates.

It has about 0 .20 million line basic telephone capacity, . million 4==capacity, 2*.+/ million G#$ capacity, 2, fi!ed e!changes, + ,1+* G#$ 6T#s,1*,/21 %($A Towers, 182 #atellite #tations, +, +,+00 -Cm. of 5)%, /,0 / -Cm. of microwave network connecting +* districts, 2 / citiesDtowns ? . lakhs villages.

(uring the */1/:11, turnover of 6#9= is around -s. *8,2// %rores.

The company has vast e!perience in planning, installation, network integration ?maintenance of switching ? transmission networks ? also has a world class I#5 8///certified Telecom Training Institute.

Telecommunications is a basic infrastructure along with power and transportationand is thus recogni7ed as the means for accelerating the economic growth in all theregions including remote and inaccessible areas in the country. Telecom in the modernworld is e!pected to usher a concept of global economy and single world market place.6#9= telecom network, therefore, is part of modern global network, providing access tocountries around the world for transporting information in the form of voice and data

%" MILESTONES

#et up on 1st 5ctober,*///

Introduced cellular services on 18th 5ctober,*//*

6ecame market leader within + months, in its areas of operation

Introduced limited mobility 4== services w.e.f. (ecember *///, and has ./+million customers as on date

Introduced dial up internet facility w.e.f. (ecember *///

Introduced %=I based internet facility w.e.f. (ecember *//

. million Internet %ustomers with 6#9=

Introduced 6roadband in the country w.e.f. 10.11.*// and has ./8 millioncustomers

Introduced launched G services on a pan india basis on )eb *//8 by making itsfirst video call from chennai

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2 PRODUCTS AND SERVICES

#he Services offered by 6#9= can be classified into four broad categories

A. =andline6. $obile%. Internet ? 6roadband(. >nterprise

A& Landline BSNL is the largest telecom operator in India and is known to everybody forBasic Telephony Services for over 100 years. resently the lain old! "o#ntrywidetelephone service is being provided thro#gh $%!000 electronic e&changes! $%'(igital Tr#nk )#tomatic *&changes+T),-! (igitali ed #blic Switched Telephone

Network + STN- all interlinked by over %./ lakh km of ptical iber "able! with ahost of hone l#s val#e additions to o#r val#ed "#stomers. BSNL2s telephonynetwork e&pands thro#gho#t the vast e&panses of the co#ntry reaching to theremotest part of the co#ntry.

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*& ,o$ile ServicesBSNL is the largest telecom operator in India and is known to everybody forBasic Telephony Services for over 100 years. resently the lain old! "o#ntrywidetelephone service is being provided thro#gh $%!000 electronic e&changes! $%'(igital Tr#nk )#tomatic *&changes+T),-! (igitali ed #blic Switched TelephoneNetwork + STN- all interlinked by over %./ lakh km of ptical iber "able! with ahost of hone l#s val#e additions to o#r val#ed "#stomers. BSNL2s telephonynetwork e&pands thro#gho#t the vast e&panses of the co#ntry reaching to theremotest part of the co#ntry.

C& 'nternet = *road$and Services6#9= is IndiaBs no. 1 Internet service provider with more than 12 lakh

subscribers, providing Internet service throughout the entire country &e!cept in 9ew(elhi and $umbai' under the brand name of E #ancharnet E. #ancharnet provides freeall India roaming and enables itBs users to access their accounts, using the same accesscode &12** ' and user I( from any where in the %ountry. In order to make Internetavailable throughout the length and breadth of the %ountry Internet (habas are being

)

http://www.sancharnet.in/http://www.sancharnet.in/

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commissioned at all the 6lock

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- :;C# ,'>

"& S ?, +#A#' +/ #A ? #'+? A+: - S'#' +'+?

"&1 S ?, +#A#' +#egmentation is very important because of the better predictability of the target

consumer group and to design the proper marketing mi! strategy. In *//8 6#9=suffered great erosion in its market share due to its faulty marketing practices i.e. theydo not used to segment the market for strategies. After *//8 they hired 6oston%onsultancy Group to advise it on #egmenting and various marketing practices. Theoverall market is segmented on the basis of following variables

Geographic variables F:

-egion wiseFo

>ast -egion &4est 6engal, Assam, Arunachal "radesh etc'o 4est -egion &Gu arat, -a asthan, $aharashtra etc'

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o #outh -egion &Andhra "radesh, Carnataka, Cerala etc'o 9orth -egion &"un ab,

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The company attempts to serve all customer groups with all the products theymight need. Also within full market targeting, the company follows differentiated

marketing. !ampleFAll #ubscribers under normal prepaid plan can en oy reduced call charges facilityon 6#9= numbers.Two on:net =ocal numbers and one on:net #T( number is allowed.#imilarly %ustomers registered under #tudent #pecial "lan can avail )riends ?)amily facility for numbers.

"ccupation#pecial prepaid JHAI HA4A9 and post:paid J-AC#

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is applicable only for serving Hawans of JAll "aramilitary )orces L 6order#ecurity )orce &6#)',%entral Industrial #ecurity )orce &%I#)', %entral -eserve"olice )orce &%-")', Indo Tibetan 6order "olice &IT6"', 9ational #ecurity Guard

&9#G', #ashastra #eema 6al #6' and Assam -iflesM and JAll Armed )orcesLIndian Army, Indian 9avy, Indian Air )orce, %oast Guard, 6-5 etc.M personnel.The plan is applicable only for %entral Armed forces and not for #tate Armed)orces.

#pecial postpaid plan for (ept. of Income Ta!

"NA-I H5(I "lan under *G $obile #erviceF nder "NA-I H5(I"lan,6#9= =andlineD4== &)i!ed ? =imited $obility' customer can get a newG#$ *G connection free with unlimited free call facility to one of his 6#9=

postpaid home landlineD4== number and reduced call rates to two 6#9= local

numbers ? one 6#9= #T( number.

"&" - S'#' +'+?

"ositioning is the act of designing companys offering and image to occupydistinctive place in the minds of target. The goal is to locate the brand in the minds of theconsumer to ma!imi7e the potential benefit to the firm. %ompany on the basis of theresources and values has crafted its position in the market.

-esources O its own service network -eputation O %urrently the 9o 0 telecommunication company as per the customer

base, year */11. 6efore *//8, the company was operating in the market withdifferent brand names.

;alueso To increase the reach of its service to a ma!imum number of Indians.o -ange of services.o "ricing strategy

sing the opportunities of the above factor 6#9= positioned as low cost service providerfor common man, which constituted large Indian population and positioned itself in themarket under one 6rand name as J6#9= O %onnecting India

6#9= has defined is value proposition given their target customer, benefits and prices

6randF "yari Hodi "roduct #erviceF *G servicesTarget %ustomerF )amily, $edium Income6enefitsF =ow cost, free roaming;alue propositionF Hude rahe ghar se, muft mein

6randF %lub and %lub 1/

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"roductF *G serviveTarget %ustomerF )riends and Groups6enefitsF =ow cost

;alue "ropositionF Increase social network,decerease phone bills

6rand 9ameF 6#9= G"roductF G seviceTarget %ustomerF )irst time users6enefitsF ;ideo on (emand,

live stream movies, etc;alue "ropositionF )aster than your thoughts,

speed of the network wascommunicated by associatingthe brand with -a dhanie!press

6randF 6#9= G "roduct #erviceF G servicesTarget %ustomerF 9ew customers, Nouth.6enefitsF : ;ideo calling, low cost

: G service available at *G rate: Applications, games, chat.

;alue propositionF To connect well with youth (eepika "adukone featured as anendorsee and the ads included value proposition statement:)ace to )ace

:Talk more e!press more because now its free :"ower of entertainment

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& ,arketin. ,i

There are standard four "s &"roduct, "ricing, "romotion and "lacement'applicable for products. #ervices marketing re uire e!tra three, totalling seven and knowntogether as the e!tended marketing mi!. )or a marketing plan to be successful, the mi! of the four E"sE must reflect the wants and desires of the consumers in the target market.Trying to convince a market segment to buy something they donBt want is e!tremelye!pensive and seldom successful. $arketers depend on marketing research, both formaland informal, to determine what consumers want and what they are willing to pay for it.

$arketers hope that this process will give them a sustainable competitive advantage.$arketing management is the practical application of this process.

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Product#Service @The product aspects of marketing deal with the specifications of the actual good or

service, and how it relates to the end:userBs needs and wants. The scope of a productgenerally includes supporting elements such as warranties, guarantees, and support.

*S+L conte t FAll services offered by 6#9= such as landline, mobile:prepaid ? post

paid, 4==, lease line, ;#AT, internet &different types', 6roadband etc fall in thiscategory. $any types of internet access have been devised to cater to needs of specific customer segments. #imilarly post paid ? prepaid is suitable to differentgroup of customers. $arket research helps identify needs of the customers toenable marketers give inputs to product development team for new services ?features. Acceptability is first re uirement of any product. 6#9= has appointed*C? as its consultant to advise it from time to time to find needs for new

productDfeatures by conducting market research and also advising it on #T". #omeimportant researches carried were to assess e!pectations of people for 6#9=$obile, $"=# connections.

Pricing$This refers to the process of setting a price for a product, including discounts. The

price need not be monetary : it can simply be what is e!changed for the product or service, e.g. time, or attention.

*S+L conte t F"rice indicates affordability of the offer. (efinitely it varies with customer

segments. 6#9= has multiple tariff plans in various services. $ore the revenuecontributed by a customer, higher is the discount. #imilarly in broadband 6#9=offers two months free period if ten month advance rental is paid. )ree A(#=modem is given on advance payment of rental. >%# &electronic clearing scheme'

provides for 1@ discount &ma! -s 1///D:'. They are providing G services at the price of *G. It was the first company to provide video calling at / paiseD min thelowest in its category. )ree value added services are provided for high usagecustomer and specific plans for specific segments like students, families, and ruralmarket. #pecial festive discount offers.

Promotion FThis includes advertisingP sales promotion, publicity, and personal selling etc. and

refer to the various methods of promoting the product, brand, or company. 6randing isdone to differentiate offers of a company from others offer.

*S+L conte t F6#9= keeps releasing various advertisements in print, electronic ?

outdoor media.

*rand Am$assador

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"rominent 6ollywood stars such as $s "reity Qinta and $s (eepika "adukonehave featured in 6#9= T;%s. #ports star Abhinav 6indra also featured indifferent print and outdoor ads, T;%s

-rint and (tdoor media@6#9= uses various print medium like newspapers, hoardings, kiosks etc. 6#9=advertises mainly in regional language newspapers to reach out to its targetcustomer base primararily rural India. 6#9= also uses hoardings to publicise new

schemes and offers. 6#9= also has its kiosk at various e!hibitions andoccupational gatherings for sales promotion.

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#elevision Commercials and adio@ 6#9= uses mainly the national television as its preferred medium for advertisingits T;%s. It had various brand ambassador to attract youth towards 6#9= byhaving bollywood actresses to endorse the brand. 6#9= also uses radio channellike Akashwani to connect with the rural customers most of its ads are playedduring acricket match or during news bulletion

'nternet and Social ,edia F

%ompany has its online portal which acts as a medium to advertise online.After Tata (ocomo, ;odafone, 6harti Airtel, -eliance $obile, Idea %ellular,Tata Indicom and Aircel, finally state run "an India G $obile #ervice

5perator 6harat #anchar 9igam =td &6#9=' oined the bandwagon of social

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networking sites and has come up with its own official Twitter and )acebook account.

6#9=s Twitter account & G =ive' was active from 1+th #ept */1/ and)acebook account was created on 0 5ctober */1/ but officially announced on* rd (ecember */1/ at their corporate website &bsnl.co.in' and started tomention )acebook and Twitter link on home page.In most cases, 6#9= talksabout freebies, product, and marketing. Although *S+LLiV "? &6#9=stwitter handle' does not take any complaints from consumers on Twitter,unlike all private mobile service operators which usually follow up complaintsof customers on all issue posted on the social networking sites In other words,they are ust promoting the G services via Twitter and )acebook. They have

been officially active on Twitter and )acebook and responding to mosten uiries on its G and ;A#. It is a good start for 6#9= in communicating

with the G customers nap #hots >!hibit 1'These advertisements have messages for creating awareness as well sales

promotion &such as schemes'.The print and outdoor media are directed intowards the target segment

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#ies ;3s@ 6#9= does tie up with various prominent brands to promote itsservices a few e!ample are they tied up with Indian railways for promoting Gdata services where in they painted the whole train and also conducted livedemonstrations of video calling and G data or internet speed for the

passengers at selected railway stations

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-lace -efers to how the product gets to the customerP for e!ample, point of sale

placement or retailing. This fourth " has also sometimes been called Place , referring tothe channel by which a product or service is sold &e.g. online vs. retail', which geographicregion or industry, to which segment &young adults, families, business people', etc.

*S+L conte t@ Pre Sales:

6#9= utili7es physical as well as electronic space for easy accessibility of its services. -egistration through website was made available since launch of theservice. 9ow %ustomer care portal &web solution' has been introduced to providesimilar solution for all other services of 6#9=.

Sales:

6#9= has over 1*// franchiseesP lakhs of retailers allow convenience to

customers for knowing ? buying services. 6#9= has 6usiness Associates for corporate sales and (#A &direct selling agents' for door to door selling Post Sales:

5ver /// 6#9= %ustomer services centres, appro!imate. Apart from this1 // call centre facilitates sales. In 6#9= marketing cells at corporate ? circlelevel takes care of various aspects of these sale points.

People FAny person coming into contact with customers can have an impact on overall

satisfaction. 4hether as part of a supporting service to a product or involved in a totalservice, people are particularly important because, in the customerBs eyes, they are

generally inseparable from the total service. As a result of this, they must be appropriatelytrained, well motivated and the right type of person. )ellow customers are also sometimes

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referred to under BpeopleB, as they too can affect the customerBs service e!perience, &e.g., ata sporting event'.A linked concept is of Internal customer i.e. all employees ? sections inan organi7ation treat each other as customers. 4ithin the organi7ation, internal marketing

is re uired which is the development and training of staff to ensure high levels of ualityand consistency in service delivery and support. Internal marketing includes recruitment,training, motivation and productivity.

*S+L Conte t@%ustomer service representative, direct sales agent directly interacts with

the customer are important part of the service as they are the face of the company.

Process FThis is the process involved in providing a service, which can be crucial to

customer satisfaction. #tandardi7ation of processes, checklists etc. are helpful.

*S+L Conte t@6#9= has a *0 hours free customer care to all its users for customer

assistance. They also have online portal for each of its circles providing with various plan details, and bill payment facilities.

Physical evidence F#ince services are intangible, unlike a product, a service cannot be e!perienced

before it is delivered. This, therefore, means that potential customers could perceivegreater risk when deciding whether to use a service. To reduce the feeling of risk, thusimproving the chance for success, it is often vital to offer potential customers the chanceto see what a service would be like. This is done by providing physical evidence, such ascase studies, testimonials or demonstrations

5& ,arketin. Channel *S+L

%& Direct Selling agent a. )or effecting "romotion, #ale and (istribution of various 6#9= "roducts

and #ervices

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b. The minimum ualification for registration as (#A shall be 1/th pass D$atriculation pass. $arketing agenciesDcompanies dealing in telecom

information technology products shall also be allowed to register as (#As.

c. 5ne or more services may be added D deleted for subscription through(#A by 6#9= at any time at the discretion of 6#9=

d. All (#As shall be re uired to bring minimum * / customers in 1* monthsto be eligible for renewal of their Agency. This number will include thecustomers of all types of services listed in Anne!ure above taken together.A customer subscribing for more than one service through the (#A shall

be counted for the number of services subscribed for e. In order to facilitate marketing activities of the (#A, 6#9= will provide

technical support in the form of specifications and other technical literatureof the various services.

f. The (#A shall not, during the continuance of this Agreement, market and promote the products of any competitors of 6#9=.

'& BS()*Shoppe

A proposal regarding formulation of business model for "%5 and usingthem as one stop sales and distribution centers for various services being offered

by 6#9= was considered and approved by the management %ommittee of6#9= in its +1st meeting held on 8: :*//2. Accordingly, following instructionsare being issued to promote #T(DI#( "%5 businessF&a' The brand name for the one:stop shop sales and (istribution %entres for

various 6#9= services and products will beF

B*S+L SH -- ne Sto3 Sanchar Sho3D&&b' All "%5s will be allowed to be converted into 6#9= #hoppe : for the

following 6#9= products and services on non:e!clusive basisFi. Sale of Excel/CellOne cards.

ii. Sale of all types of recharge coupons.iii. Broadband connections including modem.iv. IP ! connections including set top box.v. Sancharnet cards" I C cards and other type of cash cards.

vi. #isplay/ sale of various types of telephone instruments $ accessories.vii. Information %ios%s for various BS&' services $ products.

viii. Boo%ing of telegrams and delivery thereof.ix. Bill collection of all post paid services through ##/Che(ue. x. )ny other service for customer convenience.

&b' A "%5 will be allowed to be converted into 6#9= #hoppe only if thefranchisee has been paying bills regularly without any default during the

past + months. The condition of minimum revenue of -s. ///D: permonth for urban areas and -s. 1 //D: per month for rural area forcollection of bills has been dispensed with.

&c' There shall be no condition of minimum revenue for a "%5 to be eligiblefor conversion into 6#9= #hoppe.

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&d' 6roadband connection shall be provided by 6#9= for such E6#9=#hoppesE at normal tariff rates. The franchisee of 6#9= #hoppe may

choose any tariff plan from the 6usiness plans available and can offervariety of services &like internet telephony, video conferencing etc.' ontime sharing basis. 9o limit on the charges to be taken from public forsuch broad band services by the franchisee has been prescribed by 6#9=and the franchisee is at liberty to charge any rates depending on thecompetition.

&e' The commissionDdiscount for offering such services shall be as prescribedfrom time to time for each service. All the services e!cept 6ooking oftelegrams and 6ill collection shall be on pre:paid basis i.e. the franchiseewill make advance payment to 6#9= and, therefore, no additional

security need to be collected from the franchisee. The activation of anyservice booked through B6#9=:#hoppeB will, however, be sub ect tocompletion of all formalities by the applicant.

+& distribution of services

a. 6#9= %orporate office has authori7ed all %hief General $anagers of alltelecom circles to e!ecute Agreements with 9 ; $arketing "vt. =td forelectronic distribution of pre:paid services in Andaman ? 9icobar, Andhra

"radesh, Assam, $adhya "radesh, 6ihar, %hennai "hones, Gu arat,', "&4', ttarakhand, 4est 6engal,Tamil 9adu, Hammu ? Cashmir %ircles.

b. >lectronic "I9 distribution of "repaid mobile "hone #ervicesc. 9 ; $arketing "vt. =td. is an all India )ranchisee of 6harat #anchar

9igam =imited &6#9=' for distribution of pre:paid services vi7 $obilerecharge coupons, India Telephone cards, 4eb #ancharnet %ard, )i!ed=ine card etc.

d. $ain features of systemF1. (istribute >lectronic "I9 of "repaid service by using G"-#connectivity

*. #ystem makes it simple and convenient for a person to recharge his phone.

. 4hen retailers sell 6#9= pre:paid services to the customers instantmessage is sent giving mobile number mentioning #erial 9o. "I9 number,e!piry date and time, transaction I( "I9 to the toll free number of 6#9=customer service for availing the service.

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0. As soon as the retailer sells 6#9= pre:paid products an electronicreceipt is generated giving details of the transaction

. #ystem provides complete details to the retailers regarding thetransactions made by him

+. (istributor can track retailers transaction status, sales record, limitavailable etc and the -etailers transaction history.

,& -ie .p with retailer

The $obile#tore, Indias leading mobile retail outlets chain announcedforging a tie:up with state:run "# 6#9= to retail the operators servicesacross its outlets.-a iv Agrawal, %>5 cited that we aim to providecustomers with the entire bou uet of 6#9= services ranging from )i!ed=ines, Internet, %($A ? G#$ $obile %onnections, -echarges and more.6#9= customers at The $obile#tore will get a wide choice of handsetsincluding 6lack6erry phones and other G enabled handsets.The$obile#tore being country wide organi7ed chain of retail stores dealing intelecom related services with presence in over *// towns in India willensure that our products and services are more accessible to ourcustomers. 9ow a customer can buy a 6#9= connection or recharge his

prepaid connection in any of The $obile#tore outlets even in $umbai,irrespective of where his number is obtained from.

6& C ,- #'#' + V V'

$a or "layersThere are three types of players in telecom servicesF

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R #tate owned companies &6#9= and $T9='R "rivate Indian owned companies &-eliance Infocomm, Tata Teleservices,'R )oreign invested companies &;odafone:>ssar, 6harti Airtel, Idea %ellular, =oop $obile,

ninor %ommunications'

(ata related to the different competitor is given as follows."rivate operators hold .*2@ of the wireless market share where as 6#9= and $T9=,two "# operators hold only 11.2 @ market share. The graphical presentations of marketshares and shares in net additions of all the service providers during the month of Huly*/11 are given belowF

#ervice "rovider wise $arket #hare as on 1./2.*/11

!'

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Composition of Telephone S !s"#i!e#s

!(

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$ahanagar Telephone 9igam =imited &$T9='

N$me Mahanagar Telephone NigamLimited (MTNL) %e$# of Est$!lishment 1986Comp$n& P#o'le MTNL was set up by the

Government o !ndiato upgrade the "uality o tele#omservi#es$e%pand the tele#om networ&$introdu#e newservi#es and to raise revenue ortele#om development needs o!ndia's &eymetros MTNL with a mar&etshare o about1 * o the National tele#omNetwor& has a #ustomer base o+ 9, millionThe Govt - !ndia #urrently holds+6 ,+* sta&e in the #ompany

A"( isitions ) St#$te*i"Alli$n"es

MTNL has ormed a .oint /enture#ompany in Nepal by the name o

0nited Tele#om Ltd(0TL) in #ollaboration withTele#om onsultants !ndiaLimited (T !L) in ,221 orproviding 3LL based basi#servi#es in NepalMTNL has set up its 122*subsidiary Mahanagar TelephoneMauritius Limited(MTML) in Mauritius$ orproviding basi#$mobile and international longdistan#e #alls

Bharti Airtel

N$me B0arti Airte/ %e$# of Est$!lishment 32'Comp$n& P#o'le 4harti Tele5/entures Limited was

in#orporated on .uly $ 199+ orpromoting investments in

tele#ommuni#ations servi#es !tssubsidiaries operate tele#om

!)

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servi#es a#ross !ndia 4harti'soperations are broadly handled bytwo #ompanies7 The Mobility

Group and The !n otel Group+lo!$l P#esen"e) M$#,etin*Net-o#,

The mobile business providesmobile %edwireless servi#es using G:Mte#hnology a#ross, tele#om #ir#les$ it also o;ersbroadband and %ed line servi#esin 8 #ities They also o;er ! servi#esA"( isitions ) St#$te*i"Alli$n"es

Bharti Telecom and BritishTelecom formed a 51%:49% jointventure, Bharti BT Internet for

providing Internet services, in199Bharti Tele!"entures ac#uired ane$ective

&' (% e#uit) interest in Bharti*o+ile

formerl) -T *o+iles., the cellularservices

provider in /arnata0a and Andhra

radeshcircles in 1999 Bharti Telesonicentered into a joint venture, Bharti

A#uanet, 2ith 3ingTel foresta+lishing a su+marine ca+lelanding station at hennai in & 1

A 5 :5 joint venture +et6eenBharti and 3ingTel, to underta0ethe largest infrastructure pro?e#tbetween :ingapore and !ndian#ompanies in ,221

t #e P#ospe"t Bharti Airtel compan) is planningto set up

more to6ers as part ofenhancing their rural coverage and 6ill no6 focuson rural and semi!ur+an areas'

7eliance ommunication

N$me @elian#e ommuni#ations

!2

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Aear o Bstablishment 1999ompany

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Tata Group$ whi#h has 9#ompanies$ over,22$222 employees and more than

, million shareholders TataTeleservi#es' bou"uet o telephony servi#es in#ludesMobile servi#es$3ireless =es&top

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"odafone 9ame ;odafone

%e$# of Est$!lishment D#"uired ma?ority sta&e in >ut#hBssar in !ndia$ by buying out#omplete sta&e o >ut#h in ,22 $Bssar is still minority sta&eholderin #ompany

Comp$n& P#o'le /oda one Bssar in !ndia is asubsidiary o /oda one Group ut#hison Tele#om a#"uired the#ellular li#en#e or Mumbai

/oda one Bssar now hasoperations in 16 #ir#les #overing86* o !ndiaCs mobile #ustomerbase$ with over E+ 8 million#ustomers /oda one Bssar$ underthe >ut#h brand$ has been namedthe CMost @espe#ted Tele#om

ompanyC$ the C4est Mobile:ervi#e in the #ountryC and theCMost reative and Most B;e#tive

Ddvertiser o the AearCGlobal "resenceD $arketing 9etwork It has operations in * countries across continents and 0/ 9etwork partnernetworks with over *// million customersworldwide.

Ac uisitions D #trategicAlliances

t #e P#ospe"t /oda one Bssar is e%pe#ting totou#h over +million #ustomers a#ross E22$222shops andthousand o voda one's ownemployees along with employeeso its business asso#iates

IdeaN$me !dea

%e$# of Est$!lishment 188

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Comp$n& P#o'le !dea ellular is part o the Dditya4irla Group$whi#h is !ndiaCs rst truly

multinational#orporation Dditya 4irla NuvoLtd holds +per #ent$ 4irla TMT >oldings LtdEE 9 per#ent$ Grasim + per #ent$ and>indal#o 12 1per #ent in !dea

+lo!$l P#esen"e) M$#,etin*Net-o#,

>as a #ustomer base o over 1million$ !=BD

ellular has operations in =elhi$Maharashtra$Goa$ Gu?arat$ Dndhra aryana$ 0< D#"uiredBs#orts Tele#ommuni#ationsLimited (subse"uently renamed as!dea Tele#ommuni#ations Limited)in ,226 Merger o sevensubsidiaries with !dea ellularLimited in ,22

t #e P#ospe"t Idea also plans to enter rural and neglectedcircles as a strategy to gain subscribers.5ther advancements in the telecom industry willhelp it cut costs : use of e:mail to send billsto customersP sharing cell sitesP smaller

basetransmission stations that will mean lesser infrastructure re uirements and e!pensesand independent tower operators. Along

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with its plan to go for a national longdistance licence, it will also look atinternational long distance in the near

future.

4& 7inancial #rends

6#9= suffered a /@ increase in the net loss of about -s.*2* crore in */11 from-s. 1 ** crore in */1/. Its market share decreased from 1*. @ to 11./*@ in */11 in themobile category.

-etailers $arginF The retailers are provided with a constant margin of *. @ across all therange of sale it does

in$n"i$l D$t$ Ope#$tion$l D$t$ %e$#

Re/en es Rs C#.

P#o't Rs

L$n0line mn

Mo!ile mn

B#o$0!$n0 mn

M$#,etSh$#e

2 3 /02"443

%& !3%' &(%!" "%44) 2%((

2 4 11.8')&%

3 !2% (!%2 &%) '%(

2 1 */0 .0

52!!

%) !'%(' 2(%) (%2 !%2

2 11 12*5

!)!' ! %!! 3 %2" )%&3& %4!

""

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"&

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8& S #

Stren.ths

Integrated telecoms operator offering fi!ed:line &local and (=(D I=(', fi!ed:wireless, mobile and broadband services. =eading local fi!ed operator, with more than 2*@ market share in land line and

about 8 .2mn mobile subscribers &Hune */11' in a fast:growing market. IndiaBsfourth largest G#$ operator.

6eing a government owned company it gets access to the spectrum and other scarce telecom infrastructure easily.

nparallel rural reach gives it competitive advantage over its competitors.

eaknesses

"(

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for the financial year ended $arch */11 &latest available results', 6#9= reported anet loss of I9-*2.2*bn, a significant change from the net profits of I9- .208bnand I9- /./80bn in the )N*// D/8 and )N*//2D/ respectively.

$obile operations hampered by a comparative lack of investment in G#$network.

=a! attitude of employees leading to constant loss of market share and revenues

33ort(nities %urrently of a si7e 1 million &G#$ and %($A', this sector is e!pected to reach

a si7e of nearly 8// million subscribers by financial year */11. The big takeoff is e!pected with the rollout of G services. The teledensity of rural india is about 0 which represents huge opportunity to tap

the rural population which comprises about 2/@.

"otential of mobile market especially within GP 6#9= targets 1 mn Gsubscribers within three years.

"rivatisation of 6#9= would likely lead to increased levels of investment in thecompany.

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Place Fo 6#9=Bs products are available in only 0/@ of the outlets as

compared to the market leader 8/@ increasing the penetration as far as

point of sale is concernedo (edicated customer care outlets for sale and service in tier 1 cities

and metros where it is present

Promotion Fo It is one of weakest link in the marketing mi! of 6#9=. The

promotional campaign of 6#9= lacks the innovation in terms of content.o The visibility of the e!isting promotional activities is poor and

doesnt attract to its target population.o Improving the visibility of its promotional campaign by placing

their ads in the prime time slot of top television soaps to target high usagecustomer.

o An e!tensive promotion campaign is needed to target the youthwhich is the highest proportion of population to advertise all its youthcentric plans and services

o #ponsoring college festivals and other youth festivals for better reach and visibility.

o "romoting 6#9= in rural India by associating with rich traditional

media forms like folk dances, puppet shows, melas, etc with which ruralconsumer are comfortable and familiar can be used for high impact

product campaign People F

o Inconvenience caused due to untimely and poor service by itscustomer care e!ecutives at its outlets in had a huge impact on its marketshare which reduced from 1@ in *//+ to 11.*@

o "roper training of customer care e!ecutives and huge customer centric initiatives like uick and responsive action on complaints andactivations

Processo There are problems related to long call waiting, unanswered calls

and poor response time of customer care e!ecutives over its call centre.o The website of company is not user friendly and encounters

fre uent problems in its operations Physical vidence F

o Improving the ambience of the customer care outleto Improving the service e!perience of customer by providing uick

and easy disposal of customer complaints. Tie up with mobile phone

manufacturers to provide value for money handsets to attract low usagecustomers.

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10& Concl(sion@

The telecom sector has been one of the fastest growing sectors in the Indian economy inthe past years. This has been witnessed due to strong competition that has brought downtariffs as well as simplification of policy environment that has promoted healthy

competition among various players.

The mobile sector alone has been growing rapidly and has emerged as the fastest growingmarket in the whole worlds. %urrently of a si7e 1 million &G#$ and %($A', thissector is e!pected to reach a si7e of nearly 8// million subscribers by financial year */11.The government has eased the rules regarding inter circle and intra circle mergers. Thishas led to a slew of mergers and ac uisitions in the recent past. Also as the sector ismoving closer to maturity, further consolidation is a reality and this will lead to thesurvival of more profitable players in this segment.

In order to further promote the use of Internet in the country the government is taking

proactive steps to develop this sector with the help of the various players in this segment.)or this purpose, the use of broadband technology is being mooted and this will go a long

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way in improving the productivity of the Indian economy as well as turn out to be thene!t big opportunity for telecom companies after the mobile communications segment

9on:voice services and ;A# are the gold mines. The big takeoff is e!pected with the

rollout of G services.Internet users base fast reaching near the >nglish speaking population base. =ocallanguage and content re uired for further growth Infrastructure e uipment cost is down toa fraction of what prevailed ust a few years ago. 5perators can plan better e!pansion plannow Increased viability for the operators to e!pand to semi:urban and rural markets,hence, accelerate growth further Its not without reason that India is tipped to be the worlds third:largest economy by*/ /S

9o wonder if it happens much earlier Investors can look to capture the gains of the Indiantelecom boom and diversify their operations outside developed economies that aremarked by saturated telecom markets and lower G(" growth rates.

At a time when global telecom ma ors are struggling to cope with their losses and therollout of G networks, which has been a non:starter for close to a year nowP India, withits telecom success story, represents an attractive and lucrative destination for investment.

11. -eferencesF

0ttp:66te707ir7/e%*77ir7/e%7om6'446in+ia5te/e7om,5in+$,tr85to5to$705re*en$e,5o.5r,5"))(2"57rore51et-een5!4 45an+5!4 &6

0ttp:66---%1,n/%7o%in67ompan869nan7e%0tm 0ttp:66---%1,n/%7o%in6,er*i7e%0tm 0ttp:66---%1,n/%7o%in6a1o$t%0tm 0ttp:66---%trai%go*%in6pre,,re/ea,e, /i,t 8ear%a,p 0ttp:66---%+ot%go*%in69n,tat$,69n,tat$,%0tm 0ttp:66---%7oai%7om6,tati,ti7,%p0p

'ndia #elecomm(nications e3ort E 2011 *y *(siness ,onitor 'nternational

-rinci3les o% ,arketin. -hili3 Fotler/ ?ary Armstron./ -ra%(lla < A.nihotri/hsan (l HaG(e

&4

http://techcircle.vccircle.com/500/india-telecoms-industry-to-touch-revenues-of-rs-377683-crore-between-2010-and-2014/http://techcircle.vccircle.com/500/india-telecoms-industry-to-touch-revenues-of-rs-377683-crore-between-2010-and-2014/http://www.bsnl.co.in/company/finance.htmhttp://www.bsnl.co.in/service.htmhttp://www.bsnl.co.in/about.htmhttp://www.trai.gov.in/pressreleases_list_year.asphttp://www.dot.gov.in/finstatus/finstatus.htmhttp://www.coai.com/statistics.phphttp://techcircle.vccircle.com/500/india-telecoms-industry-to-touch-revenues-of-rs-377683-crore-between-2010-and-2014/http://techcircle.vccircle.com/500/india-telecoms-industry-to-touch-revenues-of-rs-377683-crore-between-2010-and-2014/http://www.bsnl.co.in/company/finance.htmhttp://www.bsnl.co.in/service.htmhttp://www.bsnl.co.in/about.htmhttp://www.trai.gov.in/pressreleases_list_year.asphttp://www.dot.gov.in/finstatus/finstatus.htmhttp://www.coai.com/statistics.php

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