Prepared by: Ajay Pratap Singh Sujeet Singh

Tata DOCOMO is Tata Teleservices Limited's telecom service on the GSM platform-arising out of the Tata Group's strategic alliance with Japanese telecom major NTT DOCOMO in November 2008. Docomo already a leader in Japan with 55% market share

Development of cutting edge technologies and services Known for 3G technologies and services like i-mode, e-wallet and e-plethora First one to physically test 4G First one to launch 3G in india

Got license to operate in 18 circles out of 22 in India Some of the other products launched by the company include new mobile handsets and new voice and data services such as BREW games, voice portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc.

Telecommunications was first introduced in India in 1851 when the first operational land lines were laid by the government near Kolkata Indian telecom industry is one of the fastest growing industries in the world Telecom penetration extremely low when compared with global standards

Current Teledensity in India:

Overall: 67.67% Urban: 150.67% Rural: 32.11%

Indian market is characterized by a large subscriber base and substantial tele-density, the average revenue per user (ARPU) is quite low

There are three types of players in telecom services:

State owned companies (BSNL and MTNL) Private Indian owned companies (Reliance Infocomm) Foreign invested companies ( TATA DOCOMO, Vodafone etc)

Tata Teleservices (Maharashtra) Ltd., 9.10% Aircel + Dishnet, 4.60%

Idea Cellular + Spice, 11.10%

Bharti Airtel Ltd, 24.40%

MTNL, 1.20% BSNL, 13.10% Reliance Communications Ltd., 18.30%

HFCL , 0.10%

BPL Mumbai , 0.60%

Vodafone Essar Ltd., 17.50%

Shyam Telecom , 0.10%

Strengths:
Early Mover 3G Innovative pricing models in almost everything be it voice calls, VAS and IVR services Global leader in value added services. USP : Value Added Services like
Timed SMS Diet SMS Comix-on-the-go Interactive GPRS application, TATA i-Channel

Strong Alliance: Trusted TATA brand combined with proven technological edge of NTT DOCOMO Plans affordable by common people Active in social media sites

Weakness
Signal Strength Customer Service Low Price Low Quality Trap

Opportunities
Scope to increase coverage area New plans for internet users Association with Microsoft to launch windows based mobile phones

Opportunities
TRAIs plan to introduce Mobile Number portability in early 2010 VAS for rural segment like integration with echoupal, mandi prices, weather information, fish shoal movement etc.

Threats
Cut throat competition No strong POD other than price

Late entrant in Indian Market MNP Introduction, a threat as well

Increase the customer base Target Customers:

Demographic:
Youth who uses more of internet and other VAS services heavily Middle age working population who are heavy voice call users

Geographical
Rural areas with more than 2000 population

TATA DOCOMO is entering a market where:

Product demand is highly price elastic. Substantial economies of scale are available. The product is suitable for a mass market (i.e. enough demand). The product will face stiff competition soon after introduction

Because of the cut throat competition, price skimming will not work.

Most of the telecom players works at margins 2.5-3% Tata Docomo provides 3% margins to retailers in Bhubaneswar Other major players also provide margins in same bracket