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
 INDEX

Objective/ Aim

Project details

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

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
513.05
base (GSM+CDMA+WLL(F))
GSM Subscribers 401.35
CDMA Subscribers 150.73
Monthly additions (Wireline
13.51
+ Wireless)
Monthly additions (Wireline) -0.31
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

Bharti Airtel 108066.23
Reliance Communications 32683.44
Idea Cellular 14368.92
Tata Communications 13181.25
Tata Teleservices 4393.06
Spice Communications 4136.13
MTNL 4044.6
GTL 2475.12
GTL Infrastructure 2210.49
OnMobile Global 1403.52
HFCL Infotel 457.73
ITI 413.28
Him.Fut.Comm 386.99
Astra Microwave 241.88
Gemini Communications 125.71
Avaya Global 118.54
Shyam Telecom 64.58
Nelco 63.55
XL Telecom & Energy Limited 55.96
Goldstone Infratech Ltd 52.6
Nu Tek 48.16
Kavveri Telecom 26.51
Krone Communications 24.52
Mobile Telecommunications Ltd 17.37
Valiant Communications 16.58
Pun.Communi. 16.19
Nettlinx 12.68
Aishwarya Telecom Ltd 9.86
Interg.Digit 3.15
Vital Communications 2.81
Innovativeness & Usefulness

Innovation

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

Creates a Digital Media exchange for integrated content delivery

Marks its entry into the Digital Cinema Delivery market

Airtel’s Teleport Services to enable content gathering and its

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.

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.

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.

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 5–7% 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 skimming

Market penetration

2. New product development

3. Network connectivity.
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 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 blackberry’s 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.