TELECOMMUNICATION SERVICE

Presented by

FAIZAN KHAN

ISHA JAFRI
FASEEH AZIM KHAN SYED MOHD FAISAL

What is Telecommunication
The history of telecommunication began with the use of smoke signals and drums in Africa, the Amercias and parts of Asia.

Communication over a distance by cable, telegraph, telephone, or broadcasting. Telecommunication is communication at a distance by technological means, particularly means based on electrical signals or electromagnetic waves

FACTS
Indian Telecom market is one of the fastest growing markets in the world. With its 926.55 million Telephone connection, it is the second largest network in the world after China. It is also the second largest wireless network in the world. The country is poised to achieve 1 billion telephone connections. Wireless telephones are increasing at a faster rate. The share of wireless telephones is 96.47% of the total phones. The share of private sector in total telephones is 86.09%. Overall tele-density has reached 76.86%. Urban teledensity is 67.46%, whereas rural tele-density is at 37.52% which is also steadily increasing. Broadband connections increased to 13.30 million.

TYPES OF COMMUNICATION
POINT-TO-POINT COMMUNICATION Telecommunication over telephone lines .

BROADCAST COMMUNICATION Telecommunication through radio broadcasts and Television . MULTIPLEX SYSTEM (Internet) Telecommunications in which multiple transmitters and multiple receivers.

Areas of Telecommunication
The internet is the largest example. On a smaller scale, examples include: Corporate and academic wide-area networks (WANs),LAN ETC Telephone networks Mobile subscribers Landline Broadcasting area includes Radio Television

Value Offerings
Corporate Solutions
Solutions by Business Need Centralized High Speed Internet Virtual Private Networks Audio Conferencing

Solutions by Business Size

Work From Home VPN DATA centre Infrastructure VPN solutions for Retail, Manufacturing, IT/ITES & Hospitality Industry.

Value Offerings
Personal Usage
3G Prepaid Mobile Postpaid Mobile Handsets Internet Home Phone T.V.

The Indian Story

1851
First operational landlines were laid by government neat Calcutta

1881
Telephone Service introduced into India

1883
Merger with postal System

1923
Indian Radio Telegraph Company formed

The Indian Story

1947
Nationalization of Foreign Telecom Companies to form Posts, Telephone & Telegraph (PTT) India

1985
Department of Telecommunications established

The Indian Story

2003-04
Tele-density growth of 2% >50 yrs growth 1948-98(1.92 %) achieved

2008
3G guidelines issued; spectrum allocation through auction, foreign players allowed to bid.

The Indian Story

2009
TRAI announces rules & regulations to be followed for Mobile Number Portability on 23rd Nov.

2010
BSNL becomes 1st country to launch WIMAX service India to launch MNP from Nov 25th 2010. 2011 3G in india.

Latest News : 4G Launch in some cities.

FDI IN TELECOMMUNICATION
At present 74% in Telecom Industry to 100% FDI is permitted in the area of telecom equipment manufacturing and provision of IT enabled services. The telecom sector is also the second highest FDI attracting sectors in India, attracting 8.53% of the total FDI inflows into India during Apr 2000 to July 2011.

Top 10 Countries in terms of Mobile Phone Usage

Rank Country World No. of Phones 5,000,000,000 % of Population 67.6

1
2 3 4 5 6 7 8 9 10

833,300,000
670,600,000 285,610,580 213,900,000 191,472,142 168,264,000 109,500,000 107,490,000 107,000,000 88,580,000

62.5
56.6 91 147.3 98.89 73.1 65.1 130.1 84.1 147.4

Top Telecom Industry in India

Bharti airtel BSNL Vodafone Reliance Communication Idea Cellular Tata Communication Tata Teleservice Aircel MTNL Tata Service Maharashtra Limited

Group Company wise % market share (Subscribers) as of August 2012

Videocon, 0.71 Uninor, 6.27
Aircel, 9.82 BSNL, 14.09 IDEA, 17.26 MTNL, 0.76

Loop, 0.46

Airtel,27.82

Vodafone, 22.82

Reason for Growth of Telecom Industry

Factors Facilitating Growth of the Sector
The phenomenal growth in the Indian telecom industry was brought about by the wireless revolution that began in the nineties. Liberalisation: The relaxation of telecom regulations has played a major role in the development of the Indian telecom industry. The liberalisation policies of 1991 and the consequent influx of private players have led the industry on a high growth trajectory and have increased the level of competition.

Contd..
Increasing Affordability of Handsets.
Prepaid Cards Bring in More Subscribers: In the late nineties, India was introduced to prepaid cards, which was yet another milestone for the wireless sector. Prepaid cards lured more subscribers into the industry besides lowering the credit risk of service providers due to its upfront payment concept. Increased Competition & Declining Tariffs.

Introduction of Calling Party Pays (CPP):The CPP regime was

introduced in India in 2003 and under this regime, the calling party who initiated the call was to bear the entire cost of the call. This regime came to be applicable for mobile to mobile calls as well as fixed line to mobile calls. So far India had followed the Receiving Party Pays (RPP) system where the subscriber used to pay for incoming calls from both mobile as well as fixed line networks.

Trends to be observed in 2012

The Most Significant Trend

Outlook
The telecom industry in India has experienced exponential growth over the past few years Important contributor to economic growth; however, the cut-throat competition and intense tariff wars have had a negative impact on the revenue of players. Despite the challenges, the Indian telecom industry will thrive because of the immense potential in terms of new users. India is one of the most-attractive telecom markets because it is still one of the lowest penetrated markets. The government is keen on developing rural telecom infrastructure and is also set to roll out next generation or 3G services in the country. Operators are on an expansion mode and are investing heavily on telecom infrastructure. Foreign telecom companies are acquiring considerable stakes in Indian companies.

Global Trends Connecting World

Convergence & Mobility
Mobile Devices with voice, data & video Mobile Wireless Broadband
Public Safety

Mobile Police & Fire personnel devices

Computers & IT
Entertainment becomes Digital Mobile Personal Digital Devices prevail

Consumer Electronics

Laptops & Handheld PCs Entertainment major PC driver

Problem Faced
The bottlenecks for ' Indian Telecom Industry ' are: Slow reform process. Low penetration. Service providers bears huge initial cost to make inroads and achieving break-even is difficult Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make inroads into this market segment as service providers have to incur a huge initial fixed cost Huge initial investments Limited spectrum availability and interconnection charges between the private and state operators.

TELECOM SUBSCRIBER MARKET SHARE RURAL VS URBAN

RURAL URBAN

33%

67%

Growth signals for communication Industry

There will be 1.6 billon users of pc in 2013. It has also been projected that the users for the broadband base are going to reach 100 million mark by 2014, particularly after the telecom companies roll out their 3G services. People will spend hundred of rupees on smart phones for texting and making calls. Also identified India as the fastest growing country in terms of Internet users.

 We have. Moreover, mobile telephony continues to fuel growth of the Indian telecom sector, with mobile subscribers anticipated to grow at a around 11% during 2009-10 to 2013-14, the report said

Contribution to GDP
The telecom sector is one of the major drivers of the growth of the Indian economy. It is the fastest growing telecom sector in the world with more than 16 million subscribers being added every month Besides contributing to about 3% to Indias GDP, Telecommunications, along with Information Technology, has greatly accelerated the growth of the economic and social sectors.

Why is Airtel is the top brand

Customer based Marketing strategy . It has the widest presence in remotest area eg pann shops, grocery shops ,chemist , dhabas Airtel Customer Care touch points Large Scale Print and Video Advertising by famous celebrities. Strong Customer base. 1st company to launch 4G services in Kolkata

TELECOMMUNICATION CYCLE

7 PS OF TELECOM INDUSTRY

PRODUCT
Pre-paid Post-paid Blackberry Wireless Handheld Value Added Services (VAS)

The different value added services are Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert, Call wait & Call Hold Multimedia messaging service (MMS) Live Portal SMS based Information Service

PRODUCT CONT.
Features like chat, games, ringtones video clips etc. On-the-move information service. Black list callers. Social Products.

Pricing strategies

Price
Worlds cheapest price rates. Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI. Monthly price plans are available. Rewards on the usage.

Place
Bharti Airtel is one of the leading alternative providers of telecommunications services in India, and among the top ten global carriers offering services in 17 other countries, particularly in Africa.

Telecom service provider has wide and extensive presence

even in the remotest areas. Telecom service provider has Customer Care Touch Points. Distributors like E.g. Paan shops, grocery stores, chemists, outlet etc.

Place cont.
Service providers now also have customer assistant stores like Vodafone store, idea showrooms etc. Customers are able to see and handle products they consider to buy. People are on hand to ensure customers needs are matched with the right product to explain the different options available.

Promotion....

Airtel- My Airtel My Offer

Do not disturb policy. It was also promoted to communicate the Value added service. To choose the best available product/service.

Vodafone- Zoozoo
Start its Promotion during the IPL season 2. To communicate the value added services. ZooZoos had low cost costumes, real people. 30 advertisements cost only Rs 3 Crores. 20-30 sec long. No celebrity endorser - No associated risks and costs.

IDEA- What an idea sirji

Idea of Participative Management. Two-way communication is encouraged between government and public. Mobile is a life-transforming tool for millions. It changes lives! Ambassador is Abhishek Bachchan.

6. People..
People are important because:
Providing a service, rather than selling a service. Quality of personal relationships between company and clients becomes vital. New staff needs thorough training and constant monitoring. Staffing costs the highest cost Recruiting specialist staff time consuming and expensive. Strategies and tactics for recruiting, training and safeguarding relationships.

People Include...

Higher managers
Like: Technicians, Dealers, Other Employees (BPO Employees)

Middle managers Lower managers

People Cont.
Employees are the most significant part. Employee delight focuses. Dedicate and passionate workforce. Reward and Recognition. Focused on health and safety performance. Employee engagement.

Process
Process for services is very easy and customer
can avail it very easily.

Each service provider has a customer support

no. which can be dialed from anywhere in India.

Process of taking a postpaid/prepaid connection

Go to the Shop Choose a service (Say Postpaid connection/Prepaid service ) Pay the appropriate fees and required documents

Take the Respective service (Like SIM Card in this case)

Avail the facilities Give the feedback

Physical Facilities
SIM cards, Recharge Vouchers. Service outlets. Digital TV services.
Before and After sale documents

PHYSICAL EVIDENCE

Sim cards

Bills

Physical Environment & Social Settings

Around 40 Vodafone Mini Stores in Mumbai Region 25 Airtel Relationship Centers in Mumbai Region

Conclusion
Finally to conclude the telecom industry is reaching to new heights through cutting edge-technology. The government is taking initiative to make India a global hub in terms of telecommunication industry by allowing FDI. Whereas it is clear end-users will eventually ask for bundled products at a discount that will make more operators emerge. It is a clear indications that demand for broadband is increasing .

Thank You!!