SITUATIONAL ANALYSIS REPORT ON

INDIAN TELECOM INDUSTRY

COMPILED BY :-

KUMAR RAMA SHANKAR

HRD-09-6134

INDIAN TELECOM INDUSTRY

Fourth largest telecom market in Asia after China, Japan and south Korea.

Eighth largest in the world.

Market size of over US $8 billion is expected to increase three fold by 2012.

Broadly classified into a) Fixed line telephony and b) Mobile telephony.

MAJOR PLAYERS

Three types of players in telecom services:

State owned companies (BSNL and MTNL)

Private Indian owned companies (Reliance Infocomm, Tata Teleservices, Bharti Airtel, Idea Cellular)

Foreign invested companies (Vodafone, Escotel)

CURRENT MARKET TRENDS

GPRS- enabled multimedia messaging, internet surfing and mobile commerce.

3G mobile technology

There will be a reduction in tariffs according to the Financial budget.

BHARTI AIRTEL India's largest telecommunications company by subscriber base,

which stood at 85.7 million in December 2008. The company has a 34.5% share of the wireless services market.

VISION:

By 2010, Airtel will be the most admired brand in India:a) Loved by more customers.b) Targeted by top talent.c) Benchmarked by more businesses

I-PHONE AND BLACKBERRY SERVICES

PRODUCTS OFFERED

DIGITAL TV

AD ORIENTATIONAd’s are focused mainly on selling their product and service, no social message as such is conveyed through the ad’s

MARKETING STRATEGY

Embarking on a multi-pronged strategy, including a comprehensive customer retention programme.

Partnerships with companies that offer mobile entertainment and commerce services, domestic acquisitions.

Customer life-cycle management system

KEY TRENDS AND FORCES:

Decreasing ARPU and net profit margin offset by increasing subscriber additions.

Regulatory charges are between 17% and 26% of total .

Falling handset prices could increase wireless penetration rate in rural India.

Rollout of 3G spectrum.

STRENGTHS:

Largest cellular provider in India, with 110 million customers overall.

Supplies broadband and telephone services to both domestic and corporate customers. It has 1.5 million outlets in the world.

Strategic alliances with- Sony-Ericsson, Nokia - and SingTel

WEAKNESESS:

Airtel did not had its own towers earlier which was a particular strength of some of its competitors such as Hutchison Essar, but now it has 100,000 towers.

OPPORTUNITIES

Airtel have done a tie-up with Google.

Global telecommunications and new technology brands:

a) launch of Apple I-phone b) Partnership with

Blackberry.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers have control on 70% towers in India.

THREATS

Airtel and Vodafone seem to be having an on/off relationship.

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

COMPETITION:

RELIANCE COMMUNICATIONS:

India’s second-largest wireless operator by subscriber base. Different services, viz.

▫ Wireless▫ Global▫ Broadband▫ Infrastructure

Recorded 5 million subscribers in January 2009.

BSNL/ MTNL:Third-largest wireless operator by subscriber base and along with government-owned MTNL provides wireless services in all 23 circles of India.

VODAFONE: The second largest telecom company in India in terms of

subscriber base The company Vodafone Essar has its operations in 16

telecom circles of the country, which covers around 86% of the customer mobile base in India

Economical and Value based services provided to the users as well as it has a good network range.

IDEA CELLULAR: Operates in 11 circles. Customer base of over 17 million, covering approximately

45% of India's population and over 50% of the potential telecom-market

FUTURE TRENDS IN TELECOM

•4G Technology:

•Cloud Computing

THANK YOU!