Professional Documents
Culture Documents
OF TELECOMMUNICATION SECTOR
PRATIK PANDEY
13HM24
COMPANIES
TELECOM SECTOR
In 1881, Oriental Telephone Company Limited of
England was the first company to open telephone
exchanges at Calcutta, Bombay, Madras and
Ahmedabad.
Now, India is the world's second-largest
telecommunications market, with 922 million
subscribers and service revenues of Rs. 54,284
crore as on 31st December 2013 (TRAI).
Major Companies are BSNL, MTNL, RELIANCE,
TATA DOCOMO, IDEA, AIRCEL, VODAFONE etc.
TELECOM SECTOR
Source: (Press Release No. 13/2014)TRAI.
Number of Telecom Subscribers
Source: (Press Release No. 13/2014)TRAI.
Service Provider wise Market Share as
on 31st January, 2014.
Source: (Press Release No. 13/2014)TRAI.
Service Provider wise net subscriber
addition during January, 2014
All data's in Millions.
Source: (Press Release No. 13/2014)TRAI
Service Provider wise Market Share of wire line
subscribers as on 31st January, 2014
Source: (Press Release No. 13/2014)TRAI
Company Profiles
COMPANY
INFORMATION
BSNL
BHARTI AIRTEL
RELIANCE
COMMUNICATONS
IDEA CELLUAR
INDUSTRY
Telecom Telecom Telecom Telecom
TYPE
State-owned
enterprise
Public company
BSE: 532454
NSE:BHARTIARTL
Public company
NSE: RCOM
BSE: 532712
Public
BSE: 532822
NSE: IDEA
FOUNDED 1
st
October,2000
7 July 1995
2004
1995
HEAD
QUARTERS
New Delhi,
India
New Delhi,
India
Mumbai, India Santacruz East,
Mumbai, India
KEY PEOPLE R.K. Upadhyay
(Chairman & MD)
Sunil Bharti
Mittal
Anil Ambani
(President)
Kumar Mangalam
Birla
(Chairman)
.
COMPANY
INFORMATION
BSNL
BHARTI AIRTEL
RELIANCE
COMMUNICATONS
IDEA CELLUAR
Products
Fixed line and
mobile telephony,
Internet services,
digital television,
IPTV
Fixed line and mobile
telephony,broadband
and fixed-line
internet services,
digital television and
IPTV
mobile
telephony,broadba
nd and fixed-line
internet services,
digital television
and IPTV
Mobile
telephony,
Wireless
broadband
Revenue Rs.279.33
billion(2011-12
Rs.419.31 billion
(2012
Rs.218 billion
(2013)
15389.00 crore
(2011)
Net income Rs. 88.51 billion
(201112)
Rs.53,700
million (2012)
Rs.6.72 billion
(2013)
844.60 crore
(2011)
Employees
244,891 (as on 19
November 2013)
21,299 (2012)
18,070 (2013) 6,481 (2010)
Owner(s) Government of
India
Bharti Enterprises
(52.7%)[3][4]
SingTel
(15.57%)[3][4]
Vodafone (4.4%)
Reliance Group
Aditya Birla Group
(49.05%)
Axiata Group Berhad
(19.96%)
Providence Equity
(10.6%)
BSNL
MISSION:
Be the leading telecom service provider in India with global
presence.
To Provide world class telecom infrastructure to develop
country's economy.
Leveraging technology to provide affordable and innovative
products/services across customer segments
VISION:
To become the largest telecom Service Provider in Asia
BSNL
Tagline/ Slogans Connecting India; BSNL hai to bharosa hai
USP SMS rates are reasonable; high speech quality and is capable of
delivering high bandwidth using DSL technologies
Segment Senior citizens, Conservative audiences
Target Group Middle class from urban and rural areas
Positioning Most reliable and low priced service
S W
T
Strengths
Alliances with Ericsson and Cisco
Systems
IT alliances with HP Compaq,
interconnecting alliances
Selling capacity of 25 million per
annum
Has an excellent network coverage
across India
Opportunities
Strong strategic alliances with
network companies may help BSNL
Communication to focus on marketing
its services
Untapped rural markets
Threats
Competitors low price offering
2. Saturation point in Basic telephony
service
3.Mobile Number Portability
O
Weaknesses
Suffers from high call dropping rates and
a reduction in brand equity
Has a major presence only in C Circle
Low brand visibility and low brand
loyalty
SWOT ANALYSIS
BHARTI AIRTEL
MISION:
We at Airtel always think in fresh and innovative
ways about the needs of our customers and how
we want them to feel. We deliver what we promise
and go out of our way to delight the customer with
a little bit more
VISION:
To be globally admired for telecom services that
delight customers
BHARTI AIRTEL
Tagline/ Slogans Express yourself
USP Top brand in India and Brand connect
Segment Elite class of people; Corporates
Target Group Elite class above 25 years age; YUPS(Young Upward
Professionals)
Positioning Aspirational and lifestyle brand; Premium category
S W
T
Strengths
Largest Telecom operator in the
world with 207.8
Only Indian operator, with VSNL, that
has an international submarine cable
4.High brand visibility
5.Strong advertising with celebrity
brand ambassadors
Opportunities
Fast expanding cellular market
Latest and low cost technology
Untapped rural market
Threats
O
Weaknesses
Price competition from BSNL and
MTNL
Untapped Rural Market
New entrant's low price offering
Saturation point in Basic telephony
service
Mobile Number Portability
SWOT ANALYSIS
Reliance Communications
MISSION:
Meeting and exceeding Customer expectations with a
segmented approach
Establishing, re-engineering and automating Processes to
make them
customer centric, efficient and effective
VISION:
By 2015, be amongst the top 3 most valued Indian
companies, providing Information, Communication &
Entertainment services, and being the industry benchmark
in Customer Experience, Employee Centricity and
Innovation
Reliance Communications
Tagline/ Slogans
Karlo Duniya mutthi mein
USP
Connection with handset
Segment
Lower and lower middle
Target Group
Villagers, poor, Daily wagers
Positioning
World in your hands
S W
T
Strengths
Flexible plans
Good advertising
High brand visibility
Celebrity brand ambassadors
Ability to attract customers with
various plans
Opportunities
Fast expanding cellular market
Latest and low cost technology
Untapped rural market
Threats
O
Weaknesses
Price competition from BSNL and
MTNL
Untapped Rural Market
New entrant's low price offering
Saturation point in Basic telephony
service
Mobile Number Portability
SWOT ANALYSIS
IDEA CELLUAR
Mission:
We will delight our customers while meeting their
individual communication needs time anywhere.
We survive because of our customers.
VISION:
To be the most customer-focused mobile service
brand, continuously innovating to help liberate
our customers from the shackles of time & space.
IDEA CELLUAR
Tagline/ Slogans An idea can change your life
USP Big brand with great service
Segment Middle and upper middle class
Target Group Students (majority out station), workers, labourers
Positioning Smartness that comes with using Idea
S W
T
Strengths
.Flexible plans
Good advertising
High brand visibility
Celebrity brand ambassadors
Ability to attract customers with
various plans
Opportunities
Fast expanding cellular market
Latest and low cost technology
Untapped rural market
Threats
O
Weaknesses
Price competition from BSNL and
MTNL
Untapped Rural Market
New entrant's low price offering
Saturation point in Basic telephony
service
Mobile Number Portability
SWOT ANALYSIS
COMPARISON
COMPANY
ANALYSIS
BSNL
BHARTI AIRTEL
RELIANCE
COMMUNICATIONS
IDEA CELLUAR
Strengths
IT alliances with HP
Compaq,
interconnecting
alliances
Selling capacity of
25 million per
annum
Has an excellent
network coverage
across India
Largest Telecom
operator in the
world with 207.8
Only Indian
operator, with
VSNL, that has
an international
submarine cable
Flexible plans
Good
advertising
Ability to attract
customers with
various plans
Good advertising
High brand
visibility
Celebrity brand
ambassadors
Weakness
Suffers from
high call
dropping rates.
Low brand
visibility and low
brand loyalty
Price
competition
from BSNL and
MTNL
Untapped Rural
Market
Price
competition
from BSNL and
MTNL
Untapped Rural
Market
Price competition
from BSNL and
MTNL
Untapped Rural
Market
COMPARISON
COMPANY
ANALYSIS
BSNL
BHARTI AIRTEL
RELIANCE
COMMUNICATIONS
IDEA CELLUAR
Opportunities
Adoption of
Next Generation
Networks (NGN)
is global .
Untapped rural
markets
Fast expanding
cellular market
Latest and low
cost technology
Untapped rural
market
Fast expanding
cellular market
Latest and low
cost technology
Untapped rural
market
Fast expanding
cellular market
Latest and low
cost technology
Untapped rural
market
Threats
Low price of
Competitors
Mobile Number
Portability
Saturation point
in Basic
telephony
service
Mobile Number
Portability
Saturation point
in Basic
telephony
service
Mobile Number
Portability
New entrant's
low price
offering
Mobile Number
Portability
Porter five forces analysis
Porter five forces analysis
Threats of new entry : Low
Bargaining power of Suppliers : Medium
Bargaining power of Buyers : High
Internal and External rivalry : High
Threats of Substitutes : High
Critical success factors
Product quality, employee attitudes(particularly
BSNL), manufacturing flexibility, and brand
awareness.
Explore rural market
Proper market segmentation
Better network services (Reliance and BSNL)
Competitive Advantages
BSNL has an advantage in that it does have to pay the 8-12 per cent
revenue share that other private operators do to the government as
licence fees.
BSNL does not have to pay the large share of the revenue as
interconnect charges for routing the landline calls and STD calls.
In 2011, Idea acquired 3G licences for 11 circles for Rs 5,800 crore.
Reliance is a well known brand and it adds advantage in terms of
brand visibility.
Bhartis acquisition of Zain, gives Bharti the access to Africa.
CONCLUSION
From the study it is found that PSUs like BSNL
and MTNL has lost its grip in telecom sector
because of poor governance and very less
marketing strategies. Private sectors are gaining
more market share. Though the threats of new
entry are very less, the completion among the
existing players is very high. The swot analysis
and Porters five forces model shows very little
difference among the companies, because the
companies provide exactly the same products
and services.