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Project ON Market Share analysis of companies in Telecom Sector IN PARTIAL FULFILMENT OF THE

Project

ON

Market Share analysis of companies in Telecom Sector

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

POST GRADUATE DIPLOMA IN MANAGEMENT

SUBMITTED BY

AJAY KUMAR

PGDM/08-10/03

SUBMITTED TO

Mr. SAMARTH SHARMA

FACULTY- IILM-CMS

Objective/ Aim

Project details

INDEX

Innovativeness & Usefulness

Current Status of Development

Market Potential & Competitive Strategies

Marketing Strategies of telecom companies

Conclusion

Objective/ Aim

The main objective of this project is to analyze the market share of each

company operating in India.

Project details

Indian Telecom History

1851: The sprawling Posts and Telegraphs Department, for instance, occupied a small corner of the public works department. 1854: A regular, separate department was opened, when telegraph facilities were thrown open to the public. 1950: In 1950 the number of Telephone Exchanges absorbed from princely states was 196. 1981: Prime Minister Indira Gandhi signed contracts with of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. 1985: First mobile telephone service started on non-commercial basis in Delhi. 1985: Two separate Departments for the Posts and the Telecommunications were created. 1994: First Telecom policy for India was framed. 1995: GSM entered in India. 1995: GSM entered India. Historic first cell phone-call was made by Mobile Net-joint venture between Telstra (Australia) & B.K. Modi group. First call was made by Jyoti Basu. 1996: Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. 1997: TRAI was formed. 2004: BROADBAND POLICY 2005: Lowest call charges in the world ($ 0.03). 2006: India One plan launched. Reliance Communications was the first to launch on January 1. 2007: Bharti Airtel became the first India operator to cross 50 million mark.

2007: DOT opened Universal Service Access License; 575 applications came as response. 2008: DOT granted 120 new licenses. 2008: 3G guidelines declared

Top companies operating in different circles

2008: DOT granted 120 new licenses. 2008: 3G guidelines declared Top companies operating in different circles

Total Subscriber in India in February 2010

Indian Telecom

Statistics

Total telephone subscriber base

594.81

Over all Tele-density

51.37%

Fixed-line user base

36.76

Wireless user base (GSM+CDMA+WLL(F))

513.05

GSM Subscribers

401.35

CDMA Subscribers

150.73

Monthly additions + Wireless)

(Wireline

13.51

Monthly additions (Wireline)

-0.31

Monthly additions (Wireless)

19.90

Broadband subscribers

8.43

Market share of telecom companies in India

Monthly additions (Wireless) 19.90 Broadband subscribers 8.43 Market share of telecom companies in India

List of top 30 Telecom companies in India

Company Name

Market Cap in Crores

108066.23

32683.44

14368.92

13181.25

4393.06

4136.13

4044.6

GTL

2475.12

2210.49

1403.52

457.73

ITI

413.28

Him.Fut.Comm

386.99

241.88

125.71

118.54

64.58

Nelco

63.55

55.96

52.6

48.16

Kavveri Telecom

26.51

Krone Communications

24.52

17.37

16.58

16.19

12.68

9.86

Interg.Digit

3.15

Vital Communications

2.81

Innovativeness & Usefulness

Innovativeness & Usefulness Innovation One of its kind integrated approach to the Global Digital Media Business

Innovation

One of its kind integrated approach to the Global Digital Media Business

Creates a Digital Media exchange for integrated content deliveryintegrated approach to the Global Digital Media Business Marks its entry into the Digital Cinema Delivery

Marks its entry into the Digital Cinema Delivery marketa Digital Media exchange for integrated content delivery Airtel’s Teleport Services to enable content gathering and

Airtel’s Teleport Services to enable content gathering and its distribution across the Globe. distribution across the Globe.

Usefulness

The creation of its Digital Media Exchange offers the industry, a secure digital distribution capability across multiple media platforms. This ensures that content producers can have an integrated content delivery and aggregation platform that repackages content for all media formats. This platform will benefit a range of users including producers, creative agencies, production and post production houses, animation, gaming firms, visual media firms, news channels, cinemas, banking institutions, and distribution agencies.

Technology

Airtel’s Digital Media Business is integrated with our global network of submarine cable systems, international points of presence (PoPs) and our Content Delivery Network (CDN) services. It will now be able to deliver on a secure platform, high quality content across geographies.

Market Impact

The move will also pave the way for over 16,000 cinema screens across the country to potentially offer high quality international viewing experience for consumers in India. Addressing critical areas of operations for media

organizations, Airtel through its Teleport services would offer content gathering, distribution services to television channels. This would also include complete content management services such as playout, archival, collocation and storage. Besides, Airtel will also offer content producers- an integrated content delivery and aggregation platform that can repackage content for all formats.

Being both content and access agnostic, Airtel’s Digital Media Business will open up the market opportunity for the Indian media and entertainment industry that is estimated to grow from Rs. 611 bn to Rs.929 bn at 11% CAGR over 2009-2013.

from Rs. 611 bn to Rs.929 bn at 11% CAGR over 2009-2013. Innovation Offers free 2

Innovation

Offers free 2 Mbps speed upgrade for all broadband customers viewing matches on YouTube. Airtel Broadband has also introduced a social media game ‘Fastest Fifty’ to engage with the community on Orkut where customers will be able to predict outcomes, compete against each other and win exciting prizes.

Usefulness

The excitement of cricket on YouTube has exploded with 6.9 mn views being generated in just last 4 days and Airtel Broadband has enabled its entire user base to experience TV quality videos without buffering on www.youtube.com/ipl. This association is helping open up a new video streaming experience for Airtel Broadband customers.

Technology

Airtel has constantly strived to innovate and deliver high quality products to its broadband customers. As the leading private broadband player in the country, Airtel delivers its broadband service to customers through a fibre backbone of Carrier Ethernet Network with last mile delivery on copper using ADSL2+ technology.

Market Impact

This technology enables ultra high-speed broadband which is scalable and affordable. Airtel offers its broadband services across 95 cities in the country with approximately 1.24 million broadband customers as on December 31,

2009.

1.24 million broadband customers as on December 31, 2009. Innovation Idea Cellular brings Cricket at fingertips

Innovation

Idea Cellular brings Cricket at fingertips for the experts of the game as well as novice, men & women, old and the young, and everybody else who uses a mobile phone.

Usefulness

The new format of the Game will allow millions of mobile users in India to participate in this unique campaign. Idea Brand Ambassador Abhishek Bachchan along with other celebrities and cricketers will appear on TV, in this campaign.

and cricketers will appear on TV, in this campaign. Innovation Vodafone launches ‘Star of the Match’

Innovation

Vodafone launches ‘Star of the Match’ competition for IPL.

Usefulness

Vodafone provides an opportunity to all its customers to be seen on national television being honoured by the winning captain during the post match ceremony. The winner captain will present the ‘star of the match’ with a personally autographed match ball.

Since this is a nationwide competition, Vodafone will provide each winner with a return trip air ticket and hotel accommodation at the city where the match is played. With the ‘Star of the match’ contest, company wants to make this an opportunity for customers to become an integral part of cricketing history.”

Current Status of Development

A Close Look At 3G in India

3G networking is still in its infancy in India and given the sheer geographical size of the nation it will be difficult to provide universal coverage, ultimately because doing so would not be financially viable. However, in many areas 3G is becoming available due to public demand and since India is one of the fastest growing global markets for mobile internet connectivity, this is no surprise. Full 3G has only been available for a couple of years, but now it is possible for new and existing customers within India to pick up a compatible SIM card and mobile phone from a number of different leading network providers. Before we look at which providers offer the best 3G connectivity, it is sensible to explain about 3G technology and how it works.

3G literally stands for the 3rd generation of mobile networking technology and is defined as such by an international body which regulates global telecommunications. There are actually many diverse connection types which fall under the broad definition of `3G`, but in most cases it refers to a connection that allows for both voice and data information to be transmitted from a single device at the same time. 3G speeds vary depending on the network you choose, the phone you use and the level of 3G coverage in your area. However, the theoretical maximum download speed for 3G is currently around 14Mbps using the advanced HSPA technology. In real terms, most customers will have access to much slower download speeds because of network limitations and other incalculable factors, but in general 3G

networking allows for advanced services such as mobile television, video calling and mobile internet access to be available on a handset.

In order to receive a 3G service you will need a mobile phone coupled with a 3G ready SIM card, both of which should be supplied by a network provider of your choice. On important thing to bear in mind in relation to 3G is that in most cases using 3G networks will drain the battery on your phone faster than if you were using older networking technology. This is because the data upstream and downstream is faster and the service is higher quality, which requires a bit more power. You will usually loose a couple of hours in potential talk time as a result and if you surf the internet regularly you will run your battery down even quicker, but these are minor sacrifices when you consider the improvements offered by 3G.

In India, BSNL is one of the leading network providers to offer a 3G service. It offers a comprehensive selection of options for people looking to switch over to 3G, including SIM-only deals which allow you to slot in a new SIM card to any 3G compatible phone and get connected instantly. They do not charge you if you want to migrate from your older 2G service, but there may be a cost for the SIM itself. They offer mobile TV viewing and video streaming, along with internet access and high quality calling. There are also many alternative 3G mobile phones deals available for Indian customers and shopping around for the best deal is advisable since prices change frequently.

Unexpected Benefits from 3G Delay

The continued delay in auctioning 3 G spectrum has not slowed the mobile subscriber growth in India. The month to month growth rates are amazingly stable and remain robust. By observing the debates on policy, planning, finance, legal and general issues of 3 G licenses, and in an environment that finds ways to delay any policy decisions, it is quite likely there will be a further delay in the auctions. We have newer reason today than we had a few weeks ago, or for last several months and years.

Subscriber growth rates being constant simply shows that the existing operators with the already allocated spectrum have enough capacity to maintain the robust growth, and the delay in 3 G is not causing any reduction in loading new mobile subscribers. It’s quite a valid observation as to the value of the existing networks having the ability to continue with the growth in user base.

By assuming that at least 2 new entrants will come into the foray with 3 G licenses, the already operating dozen or so networks in each region will only get more competition for the same subscribers. The delays pretty much limit the growth of operators in the short run, and might also allow for some consolidation in the market place. There is no doubt that we don’t need a dozen operators in each market. Consolidation will further improve coverage, network quality along with better usage of spectrum. All of them benefits to the customer, DOT and also the markets.

MTNL and BSNL have had 3 G airwaves for about a year now, and have not made any headway in loading up 3 G subscribers. Accept making noises of 3 G services both these operators have not benefitted by having the spectrum. It is time to look at why MTNL and BSNL are not attracting 3 G customers, if there is such a huge demand for the services? While the policy and other issues are being sorted out by the powers in Delhi, the failure to lure 3 G customers by MTNL and BSNL can be understood to develop the appropriate business and engineering plans to develop the 3 G customer acceptance. There is a perhaps simple reason such as services, value addition, cost, handsets, coverage, speed and the entire regular attributes that a particular customer expects to purchase the service, and may be at this time they do not exist in the Indian market, or the customer simply is not ready to upgrade to the next generation mobile services.

MTNL and BSNL can use the time left as 3 G monopolies to shore up their advantages to develop best practices and solutions to attract customers, and with the already established network and perhaps another year of monopoly in the 3 G arena, they can make up for the losses in the 2 G and fixed line networks. The government should allow them to act quickly and decisively with 3 G planning and execution (unlike the decision making with 2 G sourcing which is at the speed of a snail) to capture the first in market advantages that certainly exist in the Indian mobile market.

MTNL and BSNL also will not have to pay the 3 G spectrum fees until such time the government. This certainly helps in keeping the cash with them and utilizing the resources for another year or so. This helps them with the balance sheet and also leverage for some more time.

The delays are unwarranted and purely because of poor planning, and too much tinkering by the policy makers. As of now, the proposed auctions have so many difficulties and issues, it may be best to just scrap the whole exercise

and start fresh. The unexpected (perceived) benefits do not support the delay in 3 G auctions and launching these services. Albeit it illogical not to take immediate action on 3 G (while the rest of the developed markets might be looking at 4 G and beyond), there is some truth to the benefits of the delays to the existing networks, which have yet to recover costs of deployment.

More challenges ahead of fixed-mobile convergence

Research shows that there is currently little integration between the services available for the different users’ profiles. Most companies struggle with separate fixed and mobile devices, independent infrastructures and separate voice-mail systems. However, these companies want more integration of their mobility services to support the growing mobile workforce with better productivity, simplified management and save cost through an integrated approach.

Enterprises will choose either integrate all the parts of this puzzle themselves or outsource the challenge by picking a one-stop shop. However, even the latter option requires that many decisions be made. Furthermore, there is a wide range of suppliers approaching enterprises with their offerings. Enterprises can turn to a traditional systems integrator (SI), a vendor, a network service provider or pick the best-of-breed offering and integrate the services themselves or even a combination of these. For most enterprises the migration from legacy telephony technology to an integrated collaboration environment will normally occur in several steps. A multi-vendor environment will initially be the norm, and system integration is a key part of

this

transition.

Cost is a key decision factor in any enterprise communication project. Enterprises with a significant long-term investment in communication systems will rely as much as possible on their existing infrastructure. Reutilizing existing components might result in lower entry costs and less deployment complexity. Furthermore, users will be more familiar with some of the functionalities, requiring less effort in education and business customization. We expect that larger enterprises with recent investments in communication systems will use their existing premise solutions as a basis to integrate their fixed and mobile services. Established relations with SIs and UC vendors are likely to be the starting point.

We believe that enterprises will also start to evaluate their suppliers’ approach to cloud capabilities. Telcos are developing next-generation networks (NGNs) that will support integrated services. The advantage for enterprises is that the hosted approach can avoid up-front capital investment and brings the flexibility they need to respond quickly to market pressures. This allows them to pay as they grow or reduce their operations when business gets tough. However, most of the offerings are still in the early days and larger enterprises might think it’s too risky to have their communications locked in with a single provider and will prefer to retain management and control a little longer.

The LTE business case: plan now to avoid the rush

As with the affairs of men, there is a tide in the affairs of mobile networks. More or less once every ten years that tide comes in, bringing with it a new technological generation.

Right now the LTE tide is turning to flood, with the technology moving from definition to implementation. Commercial launches of LTE networks are expected to start in 2010, with early deployments from NTT DoCoMo, Verizon and TeliaSonera.

1. No new sources of revenue

The introduction of LTE is provoking sharp feelings of déjà vu. Many of the claims being made for the technology are eerily reminiscent of those made for 3G ten years ago, some of which in particular the suggestion that higher data speeds will enable new sources of revenue for mobile operators are no more likely to be true now than they proved to be then. The issue of rollout strategy also has a certain ‘retro’ flavor. As with 3G, there is the question of whether to go for a rapid and wide rollout so that LTE is quickly co-extensive with the existing network, or to go for a much slower and more targeted rollout, using LTE to provide increased data capacity in the locations where it is most needed.

From both marketing and a technical perspective, faster rollout appears to make most sense. The history of mobile communications from Rabbit to Wi-Fi shows how hard it is to sell a service which requires user behavior to overcome limited coverage; and the efficiency gains which LTE promises are

undermined by the need to maintain parallel architectures associated with a gradual rollout. Technology is not yet ready for wholesale replacement of the existing mobile network.

However, not all technical factors point in the same direction. LTE’s support

for legacy services such as voice telephony and SMS (or rather, the absence of

a well-defined mechanism for such support) means that it cannot yet effect a

wholesale replacement of the 3G network. The phased introduction of devices, beginning with data-only devices, tends to support the same conclusion.

Commercial and financial considerations also point in the opposite direction.

A fast rollout and rapid replacement of the existing network will be very

expensive, and there is little evidence of new revenue streams enabled by LTE to justify it. Investors and lenders are generally unimpressed by the business case for a rapid rollout, both as a result of the current financial climate and as

a reaction to the disappointed expectations that 3G would enable new revenue streams for mobile operators.

Eventually most mobile networks will almost certainly implement LTE, just as they did 3G; only niche players with a very carefully defined strategy aimed at low-end customers can afford to stay off the LTE bandwagon permanently.

For most operators there are few advantages to early LTE deployment

For most players, there is no need to rush headlong into implementation. A few operators with specific technology migration concerns or capacity issues may have grounds for an early move to LTE; others can afford to wait until implementation and operational issues are resolved and the business case improves. CDMA operators with LTE ambitions will have to assess what they want to do with their existing CDMA assets. This may range from shutting down the network to go to HSPA before moving to LTE, to operating two or three networks in parallel (CDMA/LTE or CDMA/HSPA/LTE).

It isn’t necessary to do everything at once or soon. There are few first-mover advantages at the moment, as the entire LTE environment and business case is not yet mature. However, it’s crucial to have a top-down strategy with a clear vision of what LTE is for; this will drive the business case and thus the rollout plan, which in turn is needed to drive the most pressing issue

spectrum acquisition.

Here the only certainties are partial coverage and dual-mode operation for some years to come, and eventual replacement of the 2G/3G network to ensure ROI. At the same time, all intermediate steps should factor in the eventual migration to LTE, so that investments and incremental improvements to the network are LTE-ready.

Market Potential & Competitive Strategies

Strategies for the mobile industry to maximize the rural India opportunity

Low ARPUs and higher costs of providing services to rural users warrant innovative thinking and a different approach

According to a new report from Ovum, the global analyst and consulting company, rural India presents significant growth opportunities for the mobile industry. However, due to low ARPU and the higher cost of providing services in rural India, operators face the challenging task of serving these areas profitably.

”Due to huge population base, low teledensity and strong socio-economic developments, rural India is becoming an important growth frontier for the mobile industry”, said Amit Gupta, Principal Analyst, based in India. However, half of the rural population is too poor to afford even the cheapest handset, and among those who can afford one, a mobile phone is likely to be a family device as opposed to an individual one. “Despite a huge rural population and low teledensity, the addressable market in the short to medium term is less than 200 million unique subscribers out of a total population of more than 800 million.”

While low spending power of end customers has adverse impact on adoption and ARPU, limited electrification, a lack of backhaul and the poor state of road connectivity make deploying and operating a wireless network in rural areas expensive. Therefore, mobile business case in much of rural India is very challenging.

To overcome these challenges, operators need to shift their primary focus from increasing ARPU and penetration to maximizing total revenue and profit from the servable rural subscribers. It can be achieved by adopting a comprehensive rural strategy comprising service & product innovation and operational excellence; partnering with the government, non-government organizations and non-telecoms players; and employing local entrepreneurs. “These levers are mutually reinforcing and can help industry players to meet the dual objectives of increasing revenues and reducing costs”.

The industry’s success in rural India so far can be attributed to efforts in the areas of service and product innovation, operational excellence, partnering with non-government organizations, and employing local entrepreneurs. “However, we believe that the industry needs to further explore partnership opportunities with the government and non-telecom companies.

“Operators can circumvent the poverty constraints of rural India to a certain extent by forming partnerships with the government and non-telecoms companies to charge them, rather than the poor end customers, for providing mobile services”. “The government and non-telecoms companies get a reliable medium to connect with rural India, and operators get new revenue streams. It’s a win-win solution.”

Significant opportunity for mobile content in emerging markets

Telecoms operators in emerging markets must improve their strategy and execution if they are to ensure sustained success in the mobile content and applications arena, according to Ovum. The global advisory and consulting firm believes operators are yet to commit sufficient attention and resources to what is a small but growing market with significant potential. According to Ovum, which has recently completed extensive research* on the subject, most operators have so far been too busy with land grab and expansion to be able to make the transition from providing basic voice and SMS services.

Significant potential

The content and applications market in emerging markets is currently immature and represents a very small part of the mobile market.

SMS and mobile Internet aside, content accounts for 57% of most operator

revenues, and most of this is basic services such as ringtones, logos, wallpapers, simple games and news/information services.

“There are multiple reasons for this state of play. “Many operators have yet to commit significant organizational focus and resources to this area. Users, many of whom have very recently crossed the communications divide, are still focusing their limited budgets on basic voice and SMS services.

“Penetration of more capable mid-range devices and smart phones, which enable a richer mobile content experience, remains low. 3G coverage also remains patchy in many markets, contributing to a slow multimedia experience.”

Confidence among operators

Many emerging market operators feel very confident about their current market position, and few are concerned about device vendors’ inroads into content and applications through applications stores or vertically integrated mid- to low-end services such as Nokia Life Tools.

The low penetration of smart phones and the immature payment infrastructure (which makes their billing capability that much more valuable) are the key planks of operator confidence in their market position.

This is the main reason that emerging market operators take a big cut of the content revenues around 50%, far higher than the prevailing 30% norm in mature markets.

A strong content ecosystem will be the key market driver

Ovum believes the development of a strong, balanced and effective value chain will be one of the key factors that will shape the future of mobile content services in emerging markets.

Mobile operators currently occupy a central role in the value chain, but few are giving mobile content services the attention required to develop an attractive service portfolio in order to succeed.

“Of course, there are other important factors that will play a major role in

market development “The availability of affordable mid-range devices that enable a richer content experience is still low, but is set to rapidly improve in the medium term, although smart phone penetration will remain relatively low.”

Literacy challenges will be a key barrier, particularly in rural areas, and solutions to overcome this, such as IVR and video, will be few and far between. Local content and applications tailored for, and in the language of, diverse local communities are still sparse, although this will improve rapidly in the medium term.

Hence, while different markets will evolve at different rates, in emerging markets as a whole we expect all of the above factors to lead to muted market development in the short term.

Operators need to improve their content strategies

Ovum’s research indicates that many operators’ strategies need more refined customer segmentation, stronger marketing (in its broadest sense), more effective management of the content value chain and a carefully considered application store strategy. Operator shortcomings are understandable: mobile content and applications require a very different mindset to selling voice and SMS.

In particular, operators must use their dominant position in the mobile content value chain wisely. This means working effectively with other players in the value chain and, more importantly, ensuring there are adequate incentives for them.

“Key emerging market operators are in a good position to tackle the challenges of launching an own-brand application store. “However, this will not be the default route for all operators and there are a number of other application store strategies to explore, including partnering with other operators or third-party application stores.”

Mobile Social Messaging will drive 2010

Amid signs of economic recovery, 2010 will be the year when mobile operators worldwide protect their existing revenue channels while exploring

new ones. Data services will play an even more important role in 2010, supported by an enlarged mobile messaging landscape that, in addition to SMS, will also encompass mobile email, mobile social networking, and instant messaging (IM). Contrary to many analysts' belief, the device platform landscape will not consolidate, but further diversify as new platforms like Maemo, LiMo and Android take their market share. As the battle between operators, device manufacturers, and internet portals for value-added services (VAS) intensifies, operators will play their strongest card - their billing relationship with the user.

1. The Battle Between Handset Manufacturers, Portals, and Mobile Operators Will Intensify

In 2010, the battle for supremacy in value-added services will intensify in the triangle between mobile operators, device manufacturers, and internet portals. Over the past few years, operators increasingly have come under attack in particular from device manufacturers like Apple, RIM, and Nokia who are massively pushing device-specific services, differentiating their product offerings, establishing direct relationships with the end-users and locking them into services hosted by the manufacturers.

Premier examples of device manufacturer-specific and dependent services are Apple's App Store, MobileMe, iTunes, RIM's BlackBerry Internet Services, as well as Nokia's OVI. These services are very attractive to the end-user as they offer a great user experience and unique functionality, but they also present a threat to mobile operators which are increasingly at risk of becoming dumb bit pipes. If the mobile operators don't fight back, all they will be left with is to provide the data transport and their differentiation will be reduced to price per megabyte and speed of data transmission. Operators would be sharing the fate of ISPs who have faced the results - dramatic price wars and increasing churn rates.

Some industry observers have pointed towards Google's Android as the white horse that would create an equal-level playing field, and some operators are endorsing this allegedly open platform. However, Google, like Apple, really wants to be the premier value-added service provider, and, not surprisingly, Android phones by default point to Gmail for email, Google Talk for instant messaging and (of course) to Google's search engine and application store - again reducing the role of mobile operators to deliver the bits.

However, the war is not over yet. Operators can fight back and remain in the driving seat for value-added services by promoting operator-hosted and device-neutral value-added services. Their chances of winning are quite good, in particular in emerging economies where internet services have yet to take off in the mass market. A trump card of mobile operators is their billing relationship with the end-user and their ability to control the pricing for services. For example, operators can ensure success of their own email service by offering a flat rate for accessing the operator-hosted email while charging volume-based fees for accessing internet email, using their billing relationship as an 'unfair' advantage.

2. The Diversification of Mobile Device Platforms Leads to an Increasingly Heterogeneous Landscape

Just a few years ago, analysts were predicting a radical consolidation among mobile device platforms with only two or three platforms controlling the majority of the market. Of course, these analysts were completely wrong, and the industry has taken an entirely different direction. Now it seems that about two to three new device platforms are introduced every year, leading to further diversification and an increasingly heterogeneous device landscape.

Over the past few years, the industry saw the introduction of the Apple iPhone, the Google Android platform and, more as a side note, the Palm WebOS. In 2010, we will see a plethora of Android devices from various manufacturers and Nokia introducing their first Maemo devices based on the Linux operating system. Others are expected to also bet on LiMo, including NEC, Panasonic, and Samsung who introduced the first Vodafone 360 handset based on this Linux platform. Nokia's Symbian continues to command about 40 percent of the smartphone market, and RIM remains with their closed proprietary platform. Windows Mobile, which once was supposed to be one of the few remaining platforms and a main consolidator, seems to be dwarfed, leaving Microsoft's platform with a single digit market share.

On top of that, the industry continues to use a wide variety of proprietary operating systems in their mass market feature phones which, despite common belief, will continue to represent the vast majority of devices shipping to market for the next few years.

All of these platforms have a completely different runtime environment, incompatible with any other platform. This increasingly heterogeneous device

landscape is presenting a growing problem for developers of messaging applications, in particular for those which require proprietary client software to be downloaded and installed on the handset. While these proprietary solutions can offer impressive functionality due to their end-to-end-integrated architecture, their developers are facing a Sisyphean task of having to develop and maintain clients for an ever increasing number of incompatible platforms. Once touted as an answer to this problem, Sun's Java (J2ME) does no longer present a complete solution as it is not supported in many new platforms (Apple iPhone, Android, WebOS do not support J2ME).

The only viable solution to the issue of heterogeneous platforms seems to be the use of industry standards for delivery of messaging services. Just like literally every phone supports SMS and MMS, almost all platforms support IMAP for email, and the majority supports SyncML for synchronization. During 2010, messaging solutions which are based on open industry standards will thrive while proprietary platforms will start to see the limits of their success.

3.

Emerging

Markets

Will

Lead

the

Mobile

Internet

Revolution

While most users in Europe, the U.S., and other 'old' markets are using their mobile devices as a secondary access channel to internet services, and consequently mobile operators are struggling to defend their walled gardens, operators in emerging markets are starting to capitalize on a unique opportunity. With the PC and fixed-line penetration remaining low, the mobile phone penetration is soaring in emerging economies. This means that many users in these regions will have their first contact with internet services via their mobile phone, creating a unique opportunity for mobile operators to establish the mobile phone as the primary access device and themselves as the value-added service provider.

Subscribers in emerging markets are hungry for data services, and if carriers carefully choose their suppliers, and price the services attractively, they can see fast take-up rates, generate substantial revenues and prevent churn by binding users to attractive mass market services like email and instant messaging.

However, operators in emerging markets must make sure that the services they select actually can be consumed by the vast majority of their subscribers, avoid solutions which support only a small number of devices (e.g. require a

smartphone), and ensure the services are affordable for the average user. If operators select services that support the entire device landscape, price the services with affordable flat rates and promote the usage with SMS campaigns, we will see emerging markets lead the mobile internet revolution with millions of subscribers - replicating the success of SMS.

4. Mobile Email Will Grow Dramatically in the Consumer Space and Messaging Will Diversify

2010 will see operators diversifying revenue streams beyond what they had typically considered to be their foremost killer applications - voice and SMS. Across all markets, developed, as well as emerging, operators will package an array of mobile messaging services to accommodate the needs of diverse subscriber segments, but using a device-neutral approach.

Mobile messaging will contribute strongly to the expected data revenue growth next year. ABI Research projected that within three years, global revenues from mobile messaging will reach USD 212 billion.

Mobile messaging is generally a valuable and addictive service that holds mass market appeal with large potential and room for innovation. While operators have historically relied mainly on SMS, consumer mobile email still remains a largely untapped service with large potential. 2010 will see mass market consumer mobile email expand significantly as operators are introducing affordable push email services supporting mass market devices. Mobile email, instant messaging, and social networking are providing massive opportunities for operators to exploit and diversify their revenue streams.

5. Standards-based Instant Messaging Will Have the World Nudging and Buzzing

In what could become the most exciting prospect of 2010, standards-based mobile instant messaging services are finally becoming more commonplace. Thanks to standardization, a greater amount of people will be able to access their IM accounts by simply using their current mobile phones.

Highly popular amongst teenagers, 1.6 billion people will use IM services by 2012 according to industry analysts. Mobile IM will emerge as an important service addition for operators who wish to offer the full spectrum of mobile messaging options.

Until now, handset compatibility has been the single greatest barrier to mobile IM. An early study by Capgemini revealed that 19 percent of mobile subscribers who were interested accessing their IM service via their mobile phones were unable to do so because their handset did not support it.

By delivering IM through existing and established technologies, such as SMS and MMS for basic handsets, as well as the industry standard IMPS for mid- to high-end handsets, compatibility will no longer be a barrier. Finally, IM will be fully accessible to all, and the world will be nudging and buzzing from their phones!

6.

Social

Networking

Will

Generate

Mobile

Social

Messaging

The unprecedented success of social networking is already well documented. Facebook, for example, has a staggering 150 million users from every continent around the world including Antarctica! Almost half of Facebook's users use the service daily in 35 different languages.

Social networking services are fast becoming important repositories of personal information. In 2010, we will see the emergence of mobile services which will synchronize these social networking services to mobile phones.

Ultimately, mobile numbers and email addresses of social networking contacts will be synchronized. There will also be improved facilities to read and update status updates and send messages to contacts, using a regular mobile phone. 2010 will see a surge in mobile social networking, and mobile operators will play a key role in delivering these services.

Instant messaging and email are also largely being embedded into social networks, so it makes perfect sense for operators to deploy mobile social messaging services which enable users to stay in touch with their friends on Facebook and Twitter.

Marketing Strategies of telecom companies

Airtel:-

1. Network Expansion

2. Targeting all segments

3. Wooing the rural areas

4. New advertising Strategies

5. New Technology

Idea:- MARCOM STRATEGY

Marcom (sometimes spelled "marcomm") is an abbreviation for "marketing communications." Marcom is targeted interaction with customers and prospects using one or more media, such as direct mail, newspapers and magazines television, radio, billboards, telemarketing, and the Internet. A marketing communications campaign may use a single approach, but more frequently combines several.

Vodafone:-

1. Derive Operational Performance

o

Value enhancement

o

Cost reduction

2. Pursue growth opportunity in total communication

o

Mobile data

o

Enterprise

o Broadband

3. Execute in emerging market

o

Delivery in existing market

o

Selective expansion

4. Strengthen capital discipline

o

Shareholders returns

o

Clear priorities of surplus capital

Reliance communication:-

1. Financial restructuring

2. Expand and strengthen network coverage

3. Network superiority

4. Channel strength

5. Customer service excellence

BSNL:-

1. Pricing strategies

Market skimming5. Customer service excellence BSNL:- 1. Pricing strategies Market penetration 2. New product development 3. Network

Market penetrationservice excellence BSNL:- 1. Pricing strategies Market skimming 2. New product development 3. Network connectivity.

2. New product development

TATA Teleservices:-

1. Value to shareholders

2. Operational efficiency

3. Enterprise planning

4. Rural market penetration

Market positioning of companies

BSNL

Low-cost service provider for common man

Hutch

Niche player mainly operating in urban and semi-urban market

with focus on quality service

Reliance communication

Competing on Value-Added services such as R-World.

Airtel

 

Best network coverage

New product initiative.

Idea

Congested network

Narrow product line

Conclusion:- This is a huge dampener for the eventual roll out for the rural areas

Conclusion:-

This is a huge dampener for the eventual roll out for the rural areas who have

been left out of the ambit of telecom revolution for too long. Part of the reason

is the perceived inability to pay and part is the high cost of initial roll out of

infrastructure. In my opinion, instead of taking a short-term view of paying

capacity of rural areas, the telcos should focus on a long-term game. It was

heartening to note that finally the manufacturing arm of the government(C-

Dot) was given the budgetary support. How much it pays out in the long run,

only time would tell.

There is a lot made out for the 3G services. Expect more lobbying in the

corridors of power for the scarce spectrum. Should 3G services be introduced

in India? Would that serve the purpose? The initial buzz is that 3 G services

would give the always-on connectivity to the mobile owners. That was said so

about the GPRS and much hoopla was raised in the market. Yet, everyone

knows about the pathetic access. The fact is that 3 G networks can carry more

voice calls than the present networks. If it is the voice network, then perhaps

it

may

be

beneficial.

How

many

people,

realistically

speaking

would

be

carrying the top of the line blackberrys and laptops to access the network?

The proposed merger of BSNL and MTNL is consuming a lot of ink. There have

been various suggestions floated in the media about the ways and means the

“synergies” could be obtained. The purpose is not to get in the awkward

details here.

BSNL should concentrate

more on rural spread and better

Internet connectivity. MTNL should be divested totally.

Finally Broadband, This is a late non-starter here. In terms of pricing and

download limits, this is pathetic for users who wish to consume bandwidth for

file sharing or extensive web surfing for any reason. According to telcos logic,

they feel that ordinary user should not get more than a few hundred MB’s.

This only exposes the socialist mindset, which forces the ordinary citizens for

looking up to these “mai baap” bosses. Come what may, the present state of

Internet

would

take

another

year

to

come

to

decent

levels.

Meanwhile

Reliance

is

getting

aggressive

over

corporate

customers

for

giving

out

bandwidth for monitoring through video cameras. They have implemented

the same across their web worlds. Next time around in a web world, have a

look. It is possible that you are being looked at! Their broadband services for

home users seem to be in a limbo. Since they are planning to introduce TiVO

like functionality across India, there could be a problem in getting across the

different

entertainment

channels

on

board

as

of

now.

No

surprise,

that

Reliance is amassing a huge library of its own. Wireless broadband in terms of

WiFi and WiMax may soon be a reality given the fact that Dishnet has planned

to roll out its services. The grey area of security remains unanswered as of

now .