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S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Contents Acknowledgement Declaration Certificate by the guide Certificate by the faculty Executive Summary Chapter 1- Company Profile Chapter 2- Introduction to IPTV Chapter 3- MTNL IPTV Chapter 4- Research Methodology Chapter 5- Tabulation & Analysis of Data Chapter 6- Findings & Recommendations Annexure Bibliography Page no. 3 4 5 6 10 20 27 31 35 36 51 53
ACKNOWLEDGEMENT
It is my proved privilege to release the feelings of our gratitude to several persons, who helped us directly or indirectly to conduct this project work.
I acknowledge with sincere gratitude and deep sense of reverence to our corporate project guide Mr. Milind chchande, Manager of Mahanagar Telephone Nigam limited, Mumbai, for his inspiration and cooperation to prepare this project report.
I am greatly indebted and will remain ever obliged to the Director and faculties of Asian School of Management, Pune for their constant coordination, cooperation and guidance. We are thankful to our faculty Project guide Prof.Rajan Dhamdhere for his guidance and encouragement throughout our project work.
DECLARATION
I Rohit Nirbhay student of Asian School of Management, having registration no ASOM9033 declare that the project report having title A study of buyer behaviour in the IPTV market is prepared by me during summer training in MTNL,Powai, Mumbai. This is an original work and has not been submitted earlier to ASOM or elsewhere in any form. The project work was carried during 01th June to 30th July. The data collected through survey in the catchments area are true to the best of my knowledge.
This is to certify that the project work entitled A study of buyer behaviour in the IPTV market is a piece of work done by Rohit Nirbhay(ASOM9033), student of Asian School Of Management, Pune under my guidance and supervision for the partial fulfilment of the course Post Graduation Diploma Management, Asian School Of Management, Pune. To the best of my knowledge and belief the thesis embodies the work of the candidate himself and has been duly completed. Simultaneously, the thesis fulfils the requirements of the rules and regulations related to the summer internship of the institute and I am assured that the project is up- to the standard both in respect to the contents and language for being referred to the examiner.
EXECUTIVE SUMMARY
OBJECTIVE OF THE STUDY
What marketing tools and techniques MTNL is implementing to defend and increase the market share. TO find what are the threats of substitutes. To know the customer perception and expectation regarding the product. To find out how MTNL react to the technology changes in the communication sectors.
HYPOTHESIS
MTNL is a low-cost & affordable service. MTNLs market share is decreasing in comparison to past three or four years therefore they are trying to increasing their market share by using various market researches. They can try to extend its services beyond two cities with the help of BSNL. Buyers behave negatively during the purchase and post purchase because of poor service. Lack of customer awareness about MTNL IPTV. Service providers are not performing well to cooperate with customers. Retailers are not interested to sell this product.
Research Area
As per my research is concerned i was allotted to conduct all my survey at Borivalli East as well as West and was also some part of IIT (Powai).
Chapter 1
Company Profile and Introduction
Mahanagar
is a stateowned telecommunications service provider in the metro cities of Mumbai and New Delhi in India. The company was a monopoly until 1992, when the telecom sector was opened to other service providers. In recent years, MTNL has been loosing revenue and market share heavily due immense competition in Indian telecom sector. MTNL was set up on 1st April, 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of Indias key metros, Delhi, the political capital and Mumbai, the business capital of India. In the past 17 years, the company has taken rapid strides to emerge as Indias leading and one of Asias largest telecom operating companies. Besides having a strong financial base, MTNL has achieved a market share of approximately 13% of the Indian telecommunication network with a customer base of over 4.74 million lines. The Govt. of India currently holds 56.25% stake in the company.
Telephone
Nigam
Limited (MTNL)
In the year 2002-03, the company has not only consolidated the gains but also focused on new areas of enterprise viz. Joint Ventures for projects outside India, widened the cellular and CDMA-based WLL customer base , set up internet and allied services on all India basis.
MTNL VISION
To be one of the preferred "Telecom Technology and Management Training Centres" in Afro Asian Countries. Become a total solution provider company and to provide world class telecom services at affordable prices. Become a global telecom company and to find a place in the Fortune 500 companies. Become the largest provider of private networks and leased lines. Venture into other areas in India and abroad on the strength of our core competency.
MTNL MISSION
To develop leadership competency in the participants through quality training to face challenges in the field of Telecom Technology & Management. To improve accessibility of participants to training of international repute.
To explore, create and develop knowledge through applied and concept research in Telecom Technology and Management.
Our values are woven around our commitment and vision to serve the needs of our customers and associate. Customer Oriented Approach Excellent Programs and Facilities Total Quality Management Transparency in Dealings Mutual Respect and Trust
MTNL OBJECTIVES
To provide latest technology and services to the customers at affordable prices. To achieve the highest level of customer satisfaction and delight To diversify in other areas for providing telecom services at national and international levels To provide convergence of Telecom, Information Technology and related services To improve productivity by training and redeployment of man-power. To work for social benefits.
HISTORY
The company started its operations by establishing Delhi telephone system with a manual exchange. Later in 1986 MTNL (Mahanagar Telephone Nigam) was established. In the same year it brought in digital exchange world technology for the first time in India. MTNL, a state-owned telecom services company provides spectrum of products and services. It operates in the telecom circles of Mumbai and Delhi. The government of India holds 56.25% stake in MTNL.
SERVICES
Landline It offers landline services such as regular telephone connection, temporary telephone connection, call transfer, three party conferencing, call waiting and many more in Delhi and Mumbai.
Mobile services It provides mobile services through Trump, Dolphin and Garuda. It
offers wide range of services such as voice mail service (VMS), short message service (SMS), multi-party conference, closed user group, MMS, GPRS, WAP and many more.
Internet services It offers internet services through MTNL TriBand with a speed
range of 256 kbps to 2 mbps. In future it plans to expand its portfolio by adding VPN, multicasting, video conferencing, video-on-demand and broadcast applications.
SUBSIDARY Millennium Telecom (MTL) It handles laying of submarine lines from India to
East Asia and Middle East and extended toUSA and Europe. MTNL will provides telecom services in these areas through joint venture with MTL.
While constructing any buildings and carrying out projects, MTNL not only ensures preservation of the existing trees but also plants large number of trees to enhance greenery in the area as a special measure to avoid falling of trees MTNL published its last directory on Recycled paper which was appreciated a lot by various organizations.Thus, it is seen that MTNL has been ensuring its contribution towards social cause.
SWOT ANALYSIS:
STRENGTHS
MTNL is one of the NAVRATNA companies. The company enjoys large consumer base in MUMBAI. Being a Govt. company ,it enjoys a strong reliability among users. High on cash.
WEAKNESSES Poor marketing Slow on implementation It does not provide good network. Bureaucratic organizational structure
OPPORTUNITIES
There is a strong growth in IPTV industry. It can provide value added services i.e., e-banking, e- reservation etc. It can cover others metros ( Banglore and Kolkata) of India.
THREATS
Private players in IPTV industry. Competitors regularly come up with new attractive call rates, tariff vouchers and value added services. Competitors continuously improving their distribution channel.
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ACHIEVEMENTS
YEAR 28.01.1882 1892-1893 1896 1906-1910 24.05.1924 1932 1941 April , 1943 1950-55 1956-60 1966-70 1971-75 DETAILS First Telephone exchange in Mumbai using Law's call wire equipment commissioned by Mumbai Telephone company at fort All Exchanges converted into Magneto Exchanges. Introduction of phonogram at Bombay Underground cables introduced. Auto Exchanges opened for the first time in India. Automatic time announcing machine with disc records installed. Charging by meter introduced . Bombay Telephone Company is taken by Government with 21000 lines. Steps by step strowger exchanges commissioned. Central Disk tape recorder type announcement introduced. Penta Conta cross Bar Exchange installed for the first time in Mumbai. One Max -2 exchange commissioned with STD to Mumbai on 6.9.1975 at vashi, Navi Mumbai .
Vashi demand trunk service introducED Demand trunk to BG, CA and BRD introduced . Telephone accounting computerised . Telephone directory (English) compiled for the first time. Time announcement (175) in Marathi & Hindi introduced . STD to madras, Nagpur & Gandhi Nagar introduced.
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1975 1976-78
First PCM system between city & Andheri commissioned. STD to various stations, ISD to London introduced.
C-400 Hitachi Crossbar Commissioned on 26.5.78 at Malabar Hill SPC analog exchange commissioned at Cooperage. E10B exchange commissioned at Worli- 3 South Colaba , Walada -2 , Central & Ghatkopar -2 . Navi Mumbai Telecom District formed on 1.4.85 ISD to USA and some of other European countries introduced. Panvel, Taloja, Nhava & Uran taken over from Maharashtra Circle.
Formation of MTNL on 1.4. 86 Large scale introduction of Push Button instruments. Phone Plus services introduced for subscriber numbers connected with Electronic exchanges . I-net system commissioned. Fetex -150 commissioned at Fountain -3 and Thane RLC-1 Voice Mail service commissioned at Prabhadevi. Radio paging commissioned at Prabhadevi 197 special services made non- metered .
First OCB switch in the network introduced at Kandivali. First EWSD exchanges introduced in network at Vileparle and Borivali. Usage of automatic number announcement services introduced. Interactive fault repair service introduced. ISDN services introduced commercially. Autocom service introduced. Waiting list for new connection brought to NIL. Total of 213475 connections added to the system.
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IN( Intellegent Network ) service introduced. Internet service commenced and MTNL became an ISP. MTNL Mumbai crossed the 2 million mark in subscriber base. MTNL became 100% electronic. MTNL Launched its GSM Service under the Brand Name "Dolphin" on 27th February, 2001.
2001-2002 2002-2003
MTNL got listed at New York Stock Exchange on 06/11/2001, One more connection that brings more transparency in its operation. TRAI adjudged MTNL as "Best Telecom Service Provider". Prepaid Service under the Brand Name of Trump has been launched simultaneously in Mumbai & Delhi on 14/01/2002.
MTNL becomes No.1 in Internet Service Provider in Delhi and Mumbai High Speed Broad Band Internet service Launched. CDMA 2000-1X New exchange was installed and prepaid Garuda Mobile services launched. Games on demand and IPTV service on broadband launched. VOIP service launched. NGN switches and 3G Technology in GSM mobile services introduced VDSL(Very high speed digital subscriber line)service launched.
PRODUCTS
MTNL provides fixed line telephones, cellular connection of both GSM Dolphin(Postpaid) and Trump (prepaid) and WLL (CDMA) Garuda-FW And GarudaMobile and internet services through dialup and DSL Broadband internet TriBand. MTNL has also started Games on demand, video on demand and IPTV services in India through its Broadband Internet service called Triband. Phone numbers belonging to MTNL start with the prefix 2 infixed line telephones and WLL & in GSM Mobile services start from 901x/ 9869/9969/9868/9968. MTNL also provides other services such as VPN, Internet TelephonyVOIP and leased lines through BSNL and VSNL. MTNL has been actively providing connections in both Mumbai and New Delhi areas and the efficiency of the company has drastically improved from the days when one had to wait years to get a phone connection to now when one can get a connection in even hours. Pre-activated Mobile connections are available at many places across both Metros. MTNL has also
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unveiled very cost-effective Broadband Internet access plans (TriBand) targeted at homes and small businesses. At present MTNL enjoys the largest of the market share of ISP services in Mumbai and Delhi. Former Indian Communications Minister Thiru Dayanidhi Maran had declared year 2007 as "Year of Broadband" in India and MTNL is gearing up to provide five million Broadband connectivity by the end of 2007.
MTNL has upgraded existing TriBand (Broadband) connections for a speed of up to 2 MB/s without any extra cost. This 2 MB/s broadband service is being provided by MTNL at a cost of just US$5.00 per month.
MTNL-STPI IT Services Ltd. is a 50:50 Joint Venture between Software Technology Parks of India (STPI) and Mahanagar Telephone Nigam Limited, (MTNL). The JV formed in 2006 combines the STPI's rich experience as an ISP and MTNL's track record of being India's leading telecom operating company to offer niche portal services to the Indian community. The JV was formed to realize one of the 10-point agenda of MoC&IT, which are of extreme importance to India for bringing about an all-round economic development.
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Time Shift TV: which allows you to watch your favorite programs as and when you want. i.e. a subscriber can re-view past 7 days telecast program again , Karaoke (Music)
This article is about Internet Protocol Television. For public television broadcasting in Iowa IPTV is TV-style content delivered via internet protocol directly to the consumer via a closed network a walled garden. Globally IPTV market has successfully reached an advanced stage where it has been growing rapidly since last 3 to 4 years. IPTV has grown from strength to strength from its first deployment in 1999 to 2009 in terms of numbers of subscribers and revenues. At the end of 2008 global IPTV subscriber base was 23 million grown to 26.7 million in 2009 and it is expected to grow at a CAGR of 32% to 81 million by end 2013. In terms of service revenue Global IPTV market is $6.7 billion in 2009 and is expected to grow to $19.9 billion by 2013 as per industry estimates. In the last few years major developments have taken place in the global IPTV market. One of the major developments that should interest companies who are planning to foray into IPTV deployment in India is the deployment of IPTV services over ADSL access on telephone wire. 'Maha' = big or great, 'Nagar' = city or town, 'Mahanagar' = metropolis or megacity, 'Nigam' = venture or enterprise.
time-shifted programming: catch-up TV (replays a TV show that was broadcast hours or days ago), start-over TV (replays the current TV show from its beginning);
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DEFINITION
Historically, many different definitions of IPTV have appeared, including elementary streams over IP networks, transport streams over IP networks and a number of proprietary systems. The official definition approved by the International Telecommunication Union focus group on IPTV (ITU-T FG IPTV) is as follows: "IPTV is defined as multimedia services such as television/video/audio/text/graphics/data delivered over IP based networks managed to provide the required level of quality of service and experience, security, interactivity and reliability."
"IPTV is defined as the secure and reliable delivery to subscribers of entertainment video and related services. These services may include, for example, Live TV, Video On Demand (VOD) and Interactive TV (iTV). These services are delivered across an access agnostic, packet switched network that employs the IP protocol to transport the audio, video and control signals. In contrast to video over the public Internet, with IPTV deployments, network security and performance are tightly managed to ensure a superior entertainment experience, resulting in a compelling business environment for content providers, advertisers and customers alike.
One definition for consumer IPTV is for single or multiple program transport streams (MPTS) which are sourced by the same network operator that owns or directly controls the "last mile" to the consumer's premises. This control over delivery enables a guaranteed quality of service (QoS), and also allows the service provider to offer an enhanced user experience such as better program guide, interactive services etc.
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In commercial environments IPTV is widely deployed for distribution of live TV, video playout channels and Video on Demand (VOD) material across LAN or WAN IP network infrastructures, with a controlled QoS.
Chapter 3
ABOUT MTNL IPTV:
Mahanagar Telephone Nigam Ltd (MTNL) rolled out the country`s first IPTV service in Mumbai on Saturday and in Delhi on October 17. This will be the first IPTV deployment in India. MTNL has entered into a tie-up with city-based IOL Broadband Ltd for the service, which would be available at Rs 199 per month. As a first step, 25 channels will be provided which will go up to 200-250 at a later stage. Initially the service will be offered to the existing 2.2 million MTNL broadband subscribers in Mumbai. MTNL would be providing the infrastructure, while IOL Boradband the content delivery network. IPTV describes a system where a digital television service is delivered using the Internet Protocol over a network infrastructure, which may include delivery by a broadband connection. For residential users, IPTV is often provided in conjunction with Video on Demand and may be bundled with Internet services such as Web access and VoIP. The
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commercial bundling of IPTV, VoIP and Internet access is referred to as a Triple Play. The technology is being touted as the next big thing in broadband and is becoming popular in other countries. A number of other operators, including Bharat Sanchar Nigam Ltd and Reliance Communication are planning to launch IPTV in a big way.
The three main components in delivering this service are: TV and Content Head End where the TV channels are received and encoded. Also other content (Videos) are stored at Head End. MTNL has signed agreement for this with M/s IOL. Delivery network which is MTNLs Broadband network and MTNLs telephone line. (Landline). Set Top Box The Set Top Box is required at the customer location for converting the IP signal back to TV signal. The STB shall be connected between MTNL Broadband Modem and customers TV.
FUTURE
In the past, this technology has been restricted by low broadband penetration and by the relatively high cost of installing wiring capable of transporting IPTV content reliably in the customer's home. In the coming years, however, residential IPTV is expected to grow at a brisk pace as broadband was available to more than 200 million households worldwide in the year 2005, projected to grow to 400 million by the year 2010. Many of the world's major telecommunications providers are exploring IPTV as a new revenue opportunity from their existing markets and as a defensive measure against encroachment from more conventional Cable Television services. Also, there are a growing number of IPTV installations within schools, universities, corporations and local institutions. The first IPTV service to launch on the Chinese mainland sells under the "BesTV" brand and is currently available in the cities of Shanghai and Harbin. In India IPTV was launched by Airtel and the government service provider MTNL and BSNL and is available in most of the major cities of the country . In Pakistan IPTV was launched by PTCL, brand name Smart TVwhich is available in most of the major cities of Pakistan. In Malaysia, various companies have attempted to launch IPTV services since 2005. Failed PayTV provider MiTV attempted to use a IPTV-over-UHF service but the service failed to take off. Hypp.TV was supposed to use an IPTV-based system, but is not true IPTV as it does not provide a set top box and requires users to view channels using a computer. True IPTV providers available in the country at the moment are Fine TV and DETV. Telekom Malaysia
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launched IPTV services through their fiber to the home product UniFi in select areas since Q2 2010.
Wireless technologies like 802.11 are optimized for data transmission, but they usually don't provide the Quality of Service required by IPTV applications. Networking technologies that take advantage of existing home wiring (such as power lines, phone lines or coaxial cables) have become a popular solution for this problem, although fragmentation in the wired home networking market has limited somewhat the growth in this market.
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definition TV (with twice the data rate of SD video) increases connection speed requirements, or limits IPTV service quality and connection eligibility even further.
Advantages
The IP-based platform offers significant advantages, including the ability to integrate television with other IP-based services like high speed Internet access and VoIP. A switched IP network also allows for the delivery of significantly more content and functionality. In a typical TV or satellite network, using broadcast video technology, all the content constantly flows downstream to each customer, and the customer switches the content at the set-top box. The customer can select from as many choices as the telecomms, cable or satellite company can stuff into the pipe flowing into the home.
INTERACTIVITY
An IP-based platform also allows significant opportunities to make the TV viewing experience more interactive and personalized. The supplier may, for example, include an interactive program guide that allows viewers to search for content by title or actors name, or a picture-in-picture functionality that allows them to channel surf without leaving the program theyre watching. Viewers may be able to look up a players stats while watching a sports game, or control the camera angle. They also may be able to access photos or music from their PC on their television, use a wireless phone to schedule a recording of their favorite show, or even adjust parental controls so their child can watch a documentary for a school report, while theyre away from home.
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Video-On-Demand
IPTV technology is bringing Video-on-demand (VoD) to television which permits a customer to browse an online program or film catalog, to watch trailers and to then select a selected recording. The playout of the selected item starts nearly instantaneously on the customer's TV or PC. Technically, when the customer selects the movie, a point-to-point unicast connection is set up between the customer's decoder (Set Top Box or PC) and the delivering streaming server.
Limitations
IPTV is sensitive to packet loss and delays if the streamed data is unreliable. IPTV has strict minimum speed requirements in order to facilitate the right number of frames per second to deliver moving pictures. This means that the limited connection speed/bandwidth available for a large IPTV customer base can reduce the service quality delivered. The last mile delivery for IPTV usually has a bandwidth restriction that only allows a small number of simultaneous TV channel streams typically from one to three to be delivered. Streaming IPTV across wireless links within the home has proved troublesome; not due to bandwidth limitations as many assume, but due to issues with multipath and reflections of the RF signal carrying the IP data packets. An IPTV stream is sensitive to packets arriving at the
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right time and in the right order. Improvements in wireless technology are now starting to provide equipment to solve the problem.
Privacy Implications
Due to limitations in bandwidth, an IPTV channel is delivered to the user one at a time, as opposed to the traditional multiplexed delivery. Changing a channel requires requesting the head-end server to provide a different broadcast stream, much like VOD (For VOD the stream is delivered using Unicast, for the normal TV signal Multicast is used). This could enable the service provider to accurately track each and every programme watched and the duration of watching for each viewer, broadcasters and advertisers could then understand their audience and programming better with accurate data and targeted advertising.
Vendors
A small number of companies supply most current IPTV systems. Some, such as Imagenio, were formed by telecoms operators themselves, to minimise external costs, a tactic also used by PCCW of Hong Kong. Some major telecoms vendors are also active in this space, notably Alcatel-Lucent (sometimes working with Imagenio), Ericsson (notably since acquiring Tandberg Television), NEC, Nokia Siemens Networks, Thomson, Huawei, and ZTE, as are some IT houses, led by Microsoft. California-based UTStarcom, Inc., Tennessee-based Worley Consulting, Tokyo-based The New Media Group, Malaysianbased Select-TV and Oslo/Norway-based SnapTV also offer end-to-end networking infrastructure for IPTV-based services, and Hong Kong-based BNS Ltd. provides turnkey open platform IPTV technology solutions. Global sales of IPTV systems exceeded 2 billion USD in 2007.
IPTV Regulation
Historically, broadcast television has been regulated differently than telecommunications. As IPTV allows TV and VoD to be transmitted over IP networks new regulatory issues arise.Professor Eli M. Noam highlights in his report "TV or Not TV: Three Screens, One Regulation?" some of the key challenges with sector specific regulation that is becoming obsolete due to convergence in this field.
Deliverable Channels 125 Chill & cool STB Deposit # (Refundable) 10 pay channels
On 10 paid & 5 FTA On 10 paid & 5 FTA channels channels Rs. 1499/Nil
Rs. 1499/Free VOD monthly subscription with minimum 75 movies (Excluding listed movies)
Rs. 1499/Free VOD monthly subscription with minimum 75 movies (Excluding listed movies)
VOD Subscription
Including ESPN,Star Including ESPN,Star Sports & Sports & Star Cricket unlimited Star Cricket unlimited use of use of VOD VOD of listed movies of listed movies for 12 for 1 months months
**In Block Buster PLan(Rs.4999) the STB will remain the property of AKSH .In case of disconnection request, an amount of Rs. 01378/- will be deducted for each quarter or part thereof and the balance will be refunded subject to return of STB in good working condition. Service tax will be charged extra wherever applicable. * The STB security deposit will be refunded on receipt of full STB kit and in case of parts missing the following deducations will be made:i)For Remote : Rs. 250/ii) For Adaptor : Rs. 50/iii) For full STB set : No security deposit will be refunded in addition to that another Rs. 2500/- will be payable by the customer. (Except Block buster & Box office plan) Rs. 3500 (For Block buster & Box office plan) Other conditions to be fulfilled are: a) Existing plan of Rs. 100/- will be discontinued for further booking.Already booked customers may remain in old Rs. 100 plan. b) Migration ia allowed from existing plan of Rs. 100/- to Rs. 249/- or Rs. 199/-.
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Written by Amit Goel and Gaurav Vasu, Knowledge faber. In this article the main objective is to clear certain doubts about the IPTV in general and Indian market in particular. Some of the questions that we would try to answer are:
Whether IPTV is really going to a big success story like mobile phones or DTH? Is there enough push from the telcos/operators for the IPTV to flourish? Who are the stakeholders in the market and how do they get affected by the success
or
failure of the market? Does India have the required infrastructure for IPTV deployment? Any competition between DTH and IPTV? Article will also include recommendations Software/Middleware providers. for Telcos, Hardware providers,
Research Methodology: Knowledgefaber researchers have been tracking the IPTV space in India and globally on an ongoing basis. Numerous Interviews (primary research) with key industry participants from Telcos, equipment providers, technology providers in India. Interviews with experts from around the world who had experience of IPTV deployments and service provisioning. Secondary research including but not limited to annual reports, company websites, journals, magazines, literature shared by participants web search.
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Globally IPTV market has successfully reached an advanced stage (Highlighted Stage in above picture) where it has been growing rapidly since last 3 to 4 years. IPTV has grown from strength to strength from its first deployment in 1999 to 2009 in terms of numbers of subscribers and revenues.
Chapter 4
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Indias first IPTV deployment was in 2006, when MTNL rolled out its IPTV service in Mumbai followed by BSNL. Other major players like Bharti Airtel and Reliance Communications were given the go ahead to launch their IPTV services in the Indian market in Feb-2008 by TRAI. Airtel has launched its service in Jan-2009 while Reliance has quietly launched their services in Mumbai Scenario for IPTV market in India is driven by certain factors like:
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However India still has a long way to go before IPTV can pick up momentum like wireless communication or DTH services. India has a lot of problems that exist as a barrier for growth of IPTV in India. Some of key issues are listed below: Physical Infrastructure One of the biggest challenge India faces is the required infrastructure for growth of IPTV. India lacks required high-speed wiring and copper cables and still dependent on copper or co-axial cables for deployment of IPTV network. Some parts of the world have successfully shifted to optic fibre for deploying high quality IPTV services.
Broadband
penetration and n/w capability One of the biggest and most important factor for success of IPTV in any country is its infrastructure for broadband services and broadband penetration. The existing broadband infrastructure would have to be substantially upgraded, Indias broadband penetration is one of the lowest in the world and success of IPTV is directly dependant on Broadband penetration. Indias broadband penetration rate is 2% (Rate of internet penetration of the total households) however it is expected to pick up pace in the coming years.
Network
Capability IPTV requires at least 1.5 Mbps line (with MPEG-4) for basic services at a good QOS and 8 Mbps line (with MPEG-4) for HDTV services. Some part of the broadband networks especially MTNL and BSNL networks are not ready yet. Most of the major cities like Delhi, Mumbai, Pune, Bangalore, Chennai, etc. are SDTV compatible this islargely due BSNL and MNTL network and these are the cities where BSNL and MTNL first launched its IPTV in India.
QOS
(Quality of service) India lacks the required infrastructure to support IPTV. Current subscribers have criticized the quality of services offered by these companies
Content
Readiness and cost Content is critical for success of IPTV & to compete with DTH and cable operators IPTV service providers will have to provide high quality innovative content. With respect to content there are various costs which are involved and it totally depends on what route does the player take. It can be either fixed fee deal with broadcaster or Ala carte price per channel. Operators will have to offer services that are not being already provided by their competitor including live TV, Video on Demand (VOD) and Digital Video Recorders (DVRs).
Cost
of service for user The cost of IPTV services offered are quite competitive but the cost of IPTV STBS is still very high. Cost of IPTV STBS will have to fall further, as they are more expensive than traditional DTH or Cable set top boxes
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Regulatory
includes Advertising Targeted advertising and advertisement-less content delivery to allow next-generation business models o Time Shifted TV Legal framework to support content storage, redistribution and super-distribution (e.g. access from multiple devices) o Privacy Protect privacy of user content (with consideration for lawful intercept) o Piracy Provide a framework for detection and prosecution. Alternate models: watermarking, crawling, etc. o Multimedia Communications Triple play: voice, video and data regulations o Content Classification Larger scale production
o
Some of the key IPTV Service Providers in India include BSNL, MTNL, Bharti - Airtel and Reliance : .
BSNL BSNL has been offering IPTV services in over 50 cities of India, some of these includes Kolkata, Bangalore, Chennai, Ahmedabad, Gurgaon, Jaipur, Chandigarh, to smaller cities like Thiruvananthapuram, Ernakulam etc. BSNL Kolkata started its services in Aug-07. Company is providing triple play service featuring telephone, broadband internet and TV. Additional services like pause, fast forward VOD(video on-demand). IOL Broadband (India on Line Broadband) has a tie up with Gurgaon, Jaipur, demand) (BSNL) for Internet Protocol television (IPTV) services to Chandigarh, etc BSNL subscribers. MTNL MTNL is offering IPTV services in Mumbai and Delhi so far. IPTV services in Delhi started in Oct-06. Triple play services including telephone, Broadband internet, and TV is provided. Video on Demand and other value added services are available. MTNL and IOL Broadband are in IPTV deal, in which IOL will provide IPTV content to broadband subscriber of MTNL. Aksh has a agreement with MTNL to provide IPTV broadband content services to MTNL subscribers in Delhi and Mumbai. Bharti-Airtel In its first phase Bharti-Airtel has started providing IPTV services to customers of NCR (Delhi, Gurgaon, and Noida). Bharti Airtel started its services in Jan-2000. Company is offering triple play advantage of telephony, broadband and TV. Company is also giving services like Video-on-Demand, Time shift TV. IBM provides software and IT requirements for Bharti Airtel' non-mobile businesses which include Direct to Home (DTH), Internet Protocol TV (IPTV), enterprise services and broadband. UTStarcom has a contract with Bharti Airtel to supply its RollingStream end-to-end IPTV solution.
Reliance Reliance IPTV service is currently available in select areas of Mumbai. As per company officials it will also be made available in all major cities and towns of India soon.
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For a long time Reliance IPTV services were under testing stage which was considered as deliberate delay by some industry experts. Reliance provides Triple play services and Realtime Video-on-Demand, High definition, subtitling and audio language choice, Digital video recording, etc. Reliance Communications Ltd. and Microsoft Corp. has a partnership to deliver Reliances Internet Protocol Television (IPTV) service, which is powered by the Microsoft Mediaroom IPTV software platform.
IPTV Readiness and Challenges:Is India ready for IPTV? This is one big question everyone has on their mind. Operators are aggressively promoting DTH services and not IPTV services. Based on Knowledge Faber surveys and expert interviews we sense from the stakeholders response that IPTV is going to take some time to gather critical mass. Based on our interviews and surveys we have gathered following facts Telecom players (read carriers) are not very aggressively pushing IPTV right now. They are heavily involved in their DTH service promotions. Companies are playing safe and waiting to see the results of IPTV launch of some of the existing companies Based on Knowledge Faber expert analysis it is believed that IPTV will take some years to gain scale and will directly depend on Telcos push, infrastructure and broadband penetration. Its success would depend on how seriously the top 4 telcos (with broadband infrastructure) take it up. Their involvement and creation of push would depend on the rate of return and the point of break even. Also possibility of global IPVT giant entering the Indian market cannot be ruled out. Despite low internet penetration rate of 2% it is predicated that India will have 2.5 million IPTV subscribers by 2018 with just 6% broadband penetration rate making it fourth highest in Asia.
Threat of substitutes?
Question of substitute does not arise here as IPTV would have to go beyond peoples imagination. Just providing video Programs/video on demand through IPTV does not seem to be a viable business model in India since cable and DTH have already established a very large viewership base for themselves. Telcos and IPTV service providers have to come out with innovative services newer applications that can catch the attention of consumers. Unless IPTV establishes a unique selling proposition (USP), it will not be a popular choice or a substitute for DTH or Cable operators.
Parameters
DTH
IPTV High cost of the DSL line and right of way permissions. Expensive hardware and software for handling the complex systems
Cost for Operator Cost per line is much lower as no requirement of a physical line to home
Content Access
Content creators/broadcasters actively Content creators are relatively less & aggressively pursue DTH operators interested to partner with IPTV to partner with them operators, and charge higher fees
DTH is considered most suitable for For IPTV, the cable connectivity geographically large countries like the needs to be physical drawn until the US, Brazil, India because cost of a customer point, resulting in high DTH connection for customers installation charges for customers. anywhere in country is the same. IPTVs Access to remote customers Connectivity can be given even for might not be possible for many more people in remote villages years
Consumer Behavior
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Knowledge faber has interviewed IPTV subscribers across the country and finds that consumer reaction is very mixed. Subscribers are about the concept but we find it difficult to differentiate between DTH and IPTV. We believe this is largely due to quality of service, lack of user generated content and high cost of digital set top boxes. So far IPTV in India has not been able to make great impact and we suggest understanding Indian consumer needs and aggressive marketing strategy to successfully grow the IPTV subscriber base. IPTV connections are not easily available to customers as per their demand. They dont have much knowledge to make it suitable ,so they behave like this.
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1 Cartoon(Paid) 2 Pogo(Paid) 3 Jetix(Paid) 4 Disney(Paid) 5 Nick(Paid) 6 Animax(Paid) 7 Star Plus(Paid) 8 Sony(Paid) 9 Zee TV(Paid) 10 Star One(Paid) 11 Sab Tv(Paid) 12 Star Utsav(FTA) 13 Discovery(Paid) 14 History(Paid) 15 National Geographic(Paid) 16 Animal Planet(Paid) 17 travel Living(Paid) 18 Zee Sports(Paid) 19 Ten Sport(Paid) 20 Neo Sports(Paid) 21 DD sport(FTA) 22 Neo Sports Plus(Paid) 23 Zee Smile(FTA) 24 Zee Studio(Paid) 25 AXN(Paid)
26 Zee Caf(Paid) 27 BBC Entertainment(Paid) 28 Star World(Paid) 29 zee Trendz(Paid) 30 MTV(Paid) 31 V Channel(Paid) 32 9XM Music(Paid) 33 Zee Music(FTA) 34 B4U Music(FTA) 35 mh1(FTA) 36 Entr 10(FTA) 37 Zee Cinema(Paid) 38 Star Gold(Paid) 39 Set-Max(Paid) 40 Zee Classic(Paid)
41 9X Movies(Paid) 42 Zee Premier(Paid) 43 Reality TV(Paid) 44 NDTV Metronation(Paid) 45 Sanskar(FTA) 46 Aastha(FTA) 47 Shraddha(FTA)
48 Satsang(FTA)
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49 HBO(Paid) 50 Star Movies(Paid) 51 Sony PIX(Paid) 52 Zoom TV(Paid) 53 VH 1(Paid) 54 Play TV(Paid) 55 Zee Punjabi(Paid) 56 ETC Punjabi(Paid) 57 PTC News(FTA) 58 Zee Telgu(Paid) 59 Star Vijay-Tamil(Paid) 60 Jaya TV- Tamil(FTA) 61 Win TV-Tamil(FTA) 62 Asia Net -Malyalam(FTA) 63 Jeevan TV-Malyalam(FTA) 64 Kerali TV-Malyalam(FTA) 65 Zee Action(Paid) 66 Power VisionMalyalam(FTA) 67 Zee Kannada(Paid) 68 Zee Marathi(Paid) 69 Star Majha(FTA) 70 Zee Gujrati(Paid) 71 Zee Bangla(Paid) 72 Kolkata TV-Bengali(FTA) 73 CNBC TV 18(Paid)
74 CNBC Aawaz(Paid) 75 NDTV Profit(Paid) 76 Zee Business(Paid) 77 Bloomberg(FTA) 78 BBC World(Paid) 79 CNN(Paid) 80 9X News(Paid) 81 Headlines Today(Paid) 82 Zee News(Paid) 83 NDTV 24*7(Paid) 84 STAR News(Paid) 85 Times Now(Paid) 86 Total TV(FTA) 87 NDTV India(Paid) 88 INDIA TV(FTA) 89 DD News(FTA) 90 Sahara Rastriya(FTA) 91 Sahara NCR(FTA) 92 Aaj Tak(Paid) 93 Aaj Tak Tej(Paid) 94 LokSabha(FTA) 95 MH1 News(FTA) 96 Jain TV(FTA) 97 YO Music(FTA) 98 Sahara Bihar(FTA) 99 24 Gante(Paid)
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100 24 Taas(FTA) 101 DD National(FTA) 102 DD Bharti(FTA) 103 NDTV Good Times(Paid) 104 Real Estate TV(FTA) 105 GOD Channel(FTA) 106 Gyan Darshan(FTA) 107 DD India(FTA) 108 Eklavya Technology(FTA) 109 Vyas UGC CEC(FTA) 110 Amrita TV(FTA)
111 Asianet News(FTA) 112 Asianet Plus(FTA) 113 TV 9Gujrati(FTA) 114 Kashish(FTA) 115 Sangeet Bangla(FTA) 116 Aakash Bangla(FTA) 117 Channel 8 Bangla(FTA) 118 ETV Urdu(FTA) 119 ETC(FTA) 120 Punjab Today Hmch. News(FTA) 121 Geo News 122 TV5 Monde Asie
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Chapter 5
RESEARCH METHODOLOGY
SAMPLE SIZE
The number of sample is 100 from Mumbai city, which fulfills the requirement. Each respondent is treated as a case of detailed analysis.
PLACE OF STUDY:
The study was conducted in different locations at Mumbai and different people selecting through random sampling and mtnl guidance.
SAMPLING PLAN:
A sample design is definite plan for obtaining an overall analysis from a given population. It refers to the technique or the procedure, the researcher would adopt in selecting items to be included in the sample research should select design which would be reliable and appropriate for the study. Convenience sampling is used for this study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This non probability
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method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.
During my analysis , I visited hundred customers except of thirty 38% of the customers are using MTNL IPTV connection whereas its highest no of the customers using IPTV is Dish Tv with 27% of the connection and others followed by Tata Sky with 19% and BIG Tv with 13% and the rest of 3% People use other cable networks.
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As per the collected data from research process most of the customers are inspired and suggested by their friends as 38%,family members suggest to purchase as 27%.Beacause of low positioning and lack of promotions retailers are taking only 18% and rest of others are of 22%.
From the resesrch, I came to know that MTNLs IPTV connection by users they are hardly satisfied from it; whereas private players has taken highest no. Of satisfactory and preference level of the customers. May the customers are taking keen advantage on the low cost of the
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connction but are not enjoying tv connection network because of the service level.
Out of 100 sample customer majority of 32% percentage of the customers get refrences from magazines whereas 25% of the customers get knowledge from Newspapers. On the other hand the second highest of the customers get refrences from the other sources like word of mouth, pamphlets, etc of about 28% and rest of the 15% of the knowledge people get it from their television sets.
5.
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As a result from above diagram the basic problems in selling iptv connections is difficulty to get connection and availability of other service providers are more in iptv market.
7.How would you rate the distributor of MTNL responding to your problems ?
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It can be found out that MTNLs response towards the customers from their service providers are enough and some of the sample customers are highly satisfied from the service of the retailers.
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Chapter 7
Suggestions
MTNLs officer should regularly visit different retail outlet which will help to find out the problems of the customers in after sales service. Government should try to bring the transparency in the quality of the service. MTNL IPTV should be introduced in all major cities and need to be highly marketed.
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MTNL IPTV should be easily marketable to the customers. Company should improve its service quality. After sales service should improve its speed of service i.e. fastening in customer handling grievances. Should increase in offers in different festive seasons for more sales. Should take more customer feedback on connections related issue. Should use more ways and techniques to make aware of the MTNLs IPTV to the customers.
Recommendations
After knowing all the aspects of MTNL here are some of the suggestions which are been provided by me, are as follows:
Expand its products in all over India. Make frequent market researches to increase its sale and to know about the other competitors strength & weaknesses. Provide value to the customer after sale in its services to customers. Try to know the recent culture of the other companies & follow these.
Expected Contribution
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MTNL eyes tie-up with an MNC for 3G services. MTNL eyes tie-up with BSNL to expand its business internationally. Tough competition from other companies like Airtel, Vodafone, Idea, Reliance etc.
Limitation Some of the owners of the retail outlet tried to manipulate our findings Most of the owners were not disclose the actual information. Most of the customers are not aware about the services provide at the retail outlet.
Tough there is lot of action has been taken to check the diversion of IPTV business, it is very difficult to check because of corrupt management.
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ANNEXUR E
Questionnaire
1. Name: . 2. Address: .. 3. Age: . 4.Gender: Male [ ] Female [ ] 5. Contact No. .. 6. Do you like to watch cable T.V? ANS: YES [ ] NO [ ]
7. What type of cable connection do you have? ANS: Big T.V [ ] Tata Sky [ ] Others [ ] Dish T.V MTNL IPTV [ ] [ ]
8. How did you know about the IPTV? ANS: News paper [ ] Magazine [ ] T. V [ ] Others [ ]
9. Who suggested you to buy IPTV? ANS: Friends [ ] Family Members [ ] Others [ ]
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Shopkeeper [ ]
10. When did you purchased this IPTV? ANS: Festive Occasions [ ] Birthday [ ] Marriage [ ]
Others [ ]
11. What was the mode of payment? ANS: E M I [ ] Others [ ] Cash [ ] Credit Card [ ]
12. Did you get any special offer or service with that purchase? ANS: .. 13. Are you satisfied with the service of connection? ANS: Yes [ ] No [ ]
14. How would you categorize the service provider? ANS: Excellent [ ] [ ] Good [ ] Ok [ ] Bad
15. Would you like to change or shift to any other cable TV service? ANS: Yes [ ] No [ ]
16. Which cable TV service you would like to shift? ANS: Big T.V [ ] Tata Sky [ ] Others [ ]
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Dish T.V
[ ]
MTNL IPTV [ ]
17. Do you have any suggestions for cable service? .............................................................................. ............................ .............................................................................. ............................
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Bibliography
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