Telecom in India

1. GROUP 2
SECTION A

2.  EXECUTIVE SUMMARY
 INTRODUCTION
 ENVIRONMENT SCAN
 PRESENT SCENARIO
 FUTURE PROSPECTS
 OPPORTUNITIES & CHALLENGES
 EMPLOYMENT PROSPECTS
 INSIGHTS

3.  The telecom industry has been studied in detail, with focus on world data
 The various factors which are currently influencing the telecom industry are studied using PEST
analysis
 The telecom industry, with respect to India , has been studied for both wired & wireless segments
 Future prospects with focus on implications of Telecom industry on others, have been looked into
 Insights into the potential focus areas of Telecom industry, have been looked into
 Future research areas have been identified

5. Industry Insights
60716 Crore
Revenue
933.01 Million
Subscribers
97%
Wireless
Subscribers
93%
Prepaid
Subscribers
Airtel
22%
Vodafone
18%
IDEA
15%
Reliance
12%Tata
7%
Aircel
7%
Unitech
4% BSNL
12%
Others
3%
Market Share of Major Players
Channel Structure
• 2 tiered
distribution
model
• For mass
market
reach
• Focused on
prepaid
• Exclusive
• Sales and
service
• Primary
focus on
post-paid,
terminals &
data
• Selling
directly to
the end
customer
• Focused on
post-paid
• Large
format
outlets/chai
n stores
• Future
growth
driver for
Data & 3G
• Enterprise
VGE
National
A/C
SME
• Includes
fixed line
and data
Indirect
Channel
Exclusive
Retail
Direct
Channels
Modern
Trade
B2B Business
Monthly ARPU:
Rs 113
Idea Recorded
highest Net Adds
Wireless Market
Share Rural: 41%
Urban:59%
22 Circles
Highest Wirless
Subscribers: UP
East
Key Pointers
Sector Overview

6. Telecom
Fixed line
(wireline)
Mobile
Wireless
Internet
services
Comprises establishments operating and maintaining switching and
transmission facilities to provide direct communications via airwaves
Consists of companies that operate and maintain switching and
transmission facilities to provide direct communications through landlines,
microwave or a combination of landlines and satellite link-ups
Includes internet service providers (ISPs) that offer broadband internet
connections through consumer and corporate channels
Source: Aranca Research

7. Source: Telecom Regulatory Authority of India, Business Monitor

8. About 6.9 billion mobile connections globally, which are growing at an annual rate of 7.36%
Around 2 billion internet users globally which is expected to reach approx. 5 billion by 2020
Mobile 4G services has 2.85% of the world market penetration at the end of 2013 while 3G had that of
28.45%
China has largest mobile subscriber base of approx.1 billion people
India ranks second with close to 900 million mobile subscribers
Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020
Global Enterprise Mobility Market to grow by 15% annually in terms of revenue from 2013-2020
ARPU is stagnating to around $24.6 while Minutes of Use (MoU) show an upward trend around 296 per
connection
Telecom industry is in the midst of a transformational shift, driven by a huge surge in data traffic on telecom
networks
More emphasis is laid globally to deal with challenges like spectrum exhaustion, greater speed of mobile data
connectivity
Source: Aranca Research

9. 39.1
40.8
37.3
33.3 33.2 32.1
0
5
10
15
20
25
30
35
40
45
FY13 FY12 FY11 FY10 FY09 FY08
Wireline/Wireless Revenues ( $ Bn)
Wireless and wire line revenues in India
• Wireless and wireline revenue increased at a CAGR of 10.4 per
cent to US$ 39.1 billion over FY06-13
Composition of telephone subscribers
in India
• The wireless segment (96.6 per cent of
total telephone subscriptions)
dominates the market, while the wire
line segment accounts for the rest
58%
39%
2%1%
Urban
Wireless
Rural Wireless
Urban
Wireline
Source: Telecom Regulatory Authority of India, Business Monitor

10. Changing Value Chain
Source: http://www.atkearney.com/operations/ideas-insights/article/-
/asset_publisher/LCcgOeS4t85g/content/rewriting-india-s-shared-services-playbook/10192
Network
Development
Network
Management
Platform
Development
and
operations
Marketing
and Product
Development
Sales
Service
Delivery
Billing and
Collection
Network
Development
Network
Management
Platform
Development
and
operations
Marketing
and Product
Development
Sales
Service
Delivery
Billing and
Collection
Traditional Telecom Value chain
Emerging Telecom Business Model in India

12. Political
-Government Stability
-Taxation Laws
-Policy reforms
-International Relations
-Interconnection Regulation for Broadcasting
Sector
Economic
-GDP growth trends
-Inflation Rate
-Per Capita Income
-Interest rates
-Industrial production
-Lifestyle Changes
-Consumer Activism
-Population Mix and Growth Rate
-Labor Cost
-Regional Shift in Population
-R&D Spending
-Technology Transfer
-Internet Penetration for Business Transactions
-New and customized offerings
-Technological shifts affects costs, quality and
leads to innovation
PESTSocial Technological

13. Telecom Regulatory Authority of India(TRAI)
Independent regulator in India
Established on 20th February 1997
Regulate telecom services, fixation/revision of
tariffs services
Fair and transparent policy environment,
promotes level playing field
Tariff, Interconnection and services
Department of Telecommunication(DOT)
Part of Ministry of Communication and
Information Technology
Formulate policies for accelerated growth
Responsible for grant of licenses
Enforces wireless regulatory measures by
monitoring wireless transmission of all users
Telecom Disputes Settlement and Appellate
Tribunal (TDSAT)
 Dispute involving parties like licensor, licensee,
service provider and consumers are resolved by
TDSAT
 Any direction, order or decision of TRAI can be
challenged by appealing in TDSAT
Cellular Operators Associations of India(COAI)
 Official voice for Indian telecom industry
 Interacts & exchange ideas directly with
Ministries, Policy makers, Regulators & Service
providers
Source: TRAI Website

14. These Industries are
dependent on network but
also growth of network is
dependent on these sectors
E commerce: As e-commerce
increases more connectivity
and speed will be required
Banking: As law becomes
more lenient, provides
opportunity for extra revenue
Other Industries
Telecommunication towers
plays a major role
Availability and quality of
towers effect the industry
Pricing of services have
direct impact on cost
Sharing of towers allows
operator to have less assets
Major players are Bharti
Infratel ltd, Reliance
Infratel Ltd. , Nokia
Siemens network, Indus
towers
Infrastructure
Mobile phones and
telecommunications are
complementary
Increase in use of services
as handsets become
cheaper
Technology advancement,
requirement of high speed
Mobile phones

16. 2013*
Number of Subscriber: 898
million
FY16E
Number of subscriber:1.2
billion
Robust demand
• India is the world’s
second-largest
telecommunications
market, with 898.02
million subscribers
as of March 2013
• With 70 per cent of
population staying
in rural areas, the
rural market will be
a key growth driver
in coming years
Attractive
opportunities
• Telecom penetration
in the nation’s rural
markets is expected
to increase to 70 per
cent by 2017 from
the 41.0 per cent as
of March 2013
• India is expected to
feature among the
top 10 broadband
markets by 2013
High ratings
• The country has a
strong
telecommunication
infrastructure
• In
telecommunication
ratings, India ranks
ahead of peers in the
West and Asia
Policy support
• The government has
been proactive in its
efforts to transform
India into a global
telecommunication
hub; prudent
regulatory support
has also helped
• National Telecom
Policy 2012 proposes
unified licensing, full
MNP and free
roaming
Source: BMI (Business Monitor international) Report, Aranca Research
Notes: * - figure for 2013 is up to March 2013; MNP - Mobile Number Portability; E - Estimates (2016E - Estimates for 2016)

17. 0
5
10
15
20
25
30
FY06 FY07 FY08 FY09 FY10 FY11 FY12
• The number of internet subscribers increased at a
CAGR of Internet subscriptions (in million) 19.7 per
cent to 25.3 million in 2012 from 8.6 million in 2006
• By 2016, internet subscriptions are expected to rise
to 215.0 million, with a penetration rate of 16.2 per
cent
Source: Telecom Regulatory Authority of India, Business Monitor
International, Aranca Research
Note: CAGR - Compound Annual Growth Rate

18. 2.3
3.9
6.3
8.8
11.9
13.8
15.1
0
2
4
6
8
10
12
14
16
FY07 FY08 FY09 FY10 FY11 FY12 FY13
Broadband subscriptions (in million)
Source: Telecom Regulatory Authority of India, Aranca Research
Note: CAGR - Compound Annual Growth Rate
BSNL, 66
Airtel, 9.3
MTNL, 7.2
Others, 17.5
Market break-up by broadband subscriptions
(FY13)
Source: Telecom Regulatory Authority of India, Aranca Research
Notes: BSNL - Bharat Sanchar Nigam Ltd;
MTNL - Mahanagar Telephone Nigam Ltd

19. 21.7
17.6
14.2
14
11.7
7.7
6.9
3.71.41.1
Wireless market share in terms of Total
Subscribers
Bharti Airtel
Vodafone
Reliance
Idea
BSNL
Tata
Aircel
Unitech
Sistema
Others
• Bharti Airtel is the market leader, with a 21.7 per
cent share of total subscription; Vodafone follows
with a 17.6 per cent share market share
• The top five players – Bharti Airtel, Vodafone,
Reliance, Idea, and BSNL – account for over 79 per
cent of the total subscribers
Source: Telecom Regulatory Authority of India, Aranca Research
Note: BSNL - Bharat Sanchar Nigam Limited

20. 14.6
22.8
33.7
49.6
68
76
70.9
0 20 40 60 80
FY07
FY08
FY09
FY10
FY11
FY12
FY13
TeleDensity
• GSM services continue to dominate the wireless market
with an 91.5 per cent share (March 2013); CDMA
accounts for the remaining 8.5 per cent
• The mobile segment’s teledensity surged 4.8x from 14.6
percent in FY07 to 70.9 per cent in FY13
Source: Telecom Regulatory Authority of India, Aranca Research
Notes: Teledensity - The number of telephone lines for every 100 people in a
country,
GSM - Global System for Mobile Communications, CDMA - Code Division
Multiple Access

21.  Total fixed line subscription stood at 30.2 million, while teledensity reached 2.5 per cent due to wide usability of wireless segment
in FY13
 BSNL is the market leader with a 67.7 per cent share followed by MTNL with 11.5 per cent market share
 BSNL, MTNL, and Bharti together account for 90.0 per cent of the total fixed-line market
Source: Telecom Regulatory Authority of India, Aranca Research

25.  Highlights of the Minute factory Model
• Improving affordability to gain positive elasticity
• Focus on producing the lowest cost minute whilst
maintaining / growing margins
• Drive affordability
 More users
 More usage
• Increased scale of minutes
 Driving operating leverage

26. Depth
Interview
Analysis Results
•Incentives (COCA)
•Rapport With Salesman
•Product Features
•Knowledge About Products
Sales force motivation
Key take
away
Sales Force Training
Activity Duration Conducted By
Induction Training
Module
1 month ASM+ Trainer
Field Training 2 weeks TSM
Re Fresher Training
Module
2 weeks Trainer
Product Quizzes Trainer
Sales Force Recruitment &
Incentives
Salesman Hired
by Distributor
Company pays incentive on
attainment of Targets
17% 32%
Turn
Over
Rate
18% 25%
Retailer Incentive Plans
Benefits given in Cash or Kind
Few Companies Use
Gimmicks to Increase
Retailers Self Esteem
Serves as the Biggest
Motivator to Push for Product
Zonal Target
Distributor-wise
Target
Beat-wise Target
(Set by Zonal Business
Manager)
(Set by Area Sales Manager)
(Set by Territory Sales
Manager)
Concentrate on performance
related incentives to build
higher level of motivation
Turnover rate on higher side
as they lack a sense of
ownership because of the
hiring pattern
Good understanding of
telecom fundamentals and
networking basics is essential
part of training
Target Setting
Airtel
Navranta
Vodafone
Champ
Pre Paid Channel Analysis
Non reimbursements of travel
expenditure for salesman acts
as a deterrent

28. *Deloitte Report: Tmt India Predictions 2014
MIM’s will carry more
than twice the volume
(50 billion versus 21
billion per day) of
messages sent via
SMS’s
The demand for ruggedized device platforms based on tablets &
smartphones is expected to rise rapidly in next few years
2014 is likely to mark a new
era in growth of mobile
video in India. India will see
several OTT, DTH and
telecom operators
themselves trying to
leverage this opportunity

29. http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
Trends in Telecom- Spreading Education
Market size of Indian education sector is expected to increase to 6024.1 billion by FY15
74.04
83.4
65
70
75
80
85
90
India World
Literacy Rate 2011(%)Telecom enabled access to education
• Access to education in the remote areas via interactive learning – audio
and video
• Improve subject coverage as well as delivery
• Help students in accessing the content directly
• Help teachers in developing their skills and knowledge
The Emerging promise of m-education
• Educational e-Books and e-Courses
• Game-or Simulation-based learning tools
• “English Seekho” (Learn English) one of the service offered by Tata DoCoMo
• Students can access that anytime, anywhere and allowing them to learn at an independent pace
• Customisation of instructions and adjustment of difficulty levels by tracking responses to several different
questions

30. Trends in Telecom- Health Care
Development in telecom and other related technologies are contributing to improved quality outcomes
Tele-medicine and Tele-healthcare
• Healthcare professionals are now sharing information, holding consultations using mobile broadband
• Videoconferencing equipment is helping in to bring a physician and medical facilities as close to a patient as
possible ways in which these technologies work
•Store & forward mode - information stored on the digital camera is forwarded. Ex – pictures, MRI, X-Rays, CT Scans
•Two way interactive television – videoconferencing
M-health
• M-health services make use of mobile devices to deliver healthcare
solutions such as health alerts, updates and patient monitoring systems
•Home monitoring
•Connected medical environments
•Clinical remote monitoring
•Assisted living and clinical trials
http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf

31.  Advantage of reach and cost vis-à-vis other banking
delivery channels
 Banks partner with mobile service providers and other
entities
 M-Banking & M-Payments
 Inter–account fund transfer
 Account inquiry
 Stock trading
 Bill payment
 Ticketing
Country
No. of Bank Branches
(per 1 lakh)
No. of
ATM’s
(per 1 lakh)
India 10.6 8.9
China 23.81 49.56
Brazil 46.15 119.63
http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf

32.  Several players betting on convergence1
 Indigenous manufacturing: less imports, more job creation , security2
 Inclusion of greener energy services in telecom3
 Adoption of telecom services embedded in applications. Ex: Kindle
 Launch of Reliance Jio will be a game-changer in Indian telecom: Moody‘s4
1-Deloitte Report: Tmt India Predictions 2014
2-Telecom Sector Roadmap for Innovation 2010-2020
3-http://timesofindia.indiatimes.com/tech/it-services/Green-Telecom-DoT-accepts-TRAIs-recommendations/articleshow/9386473.cms
4- http://www.domain-b.com/companies/companies_r/Reliance_Industries/20140623_mukesh_ambani.html
Content
owners
Content
aggregators
Mobile video
platform
developers
App stores
Payment
gateways
Telecom
operators
OEM’s OTT

34.  Strengthen R&D efforts, provide an impetus to build world-class manufacturing capabilities
 Achieve efficiency and transparency in spectrum management
 Provide reliable media to all exchanges by 2020
 Encourage development of telecom facilities in remote, hilly and tribal areas of the country
 Sector related skill development
 Broadband penetration
http://www.deloitte.com/assets/Dcom-
India/Local%20Assets/Documents/Thoughtware/2014/Telecom_Enabling_growth_and_serving_the_masses.pdf
http://blog.euromonitor.com/2013/08/special-report-the-telecom-consumer-in-2020.html
China and India will be the world’s online
superpowers, with the two countries making up
over 1.0 billion Internet users by 2020, or around
a third of the world’s total users. Opportunities
for online businesses will be expansive,
especially in Internet retailing and m-commerce
services targeted at the countries’ huge rural
populations

36. • Increasingly using social media sites Facebook and Twitter, apart from professional networks such as LinkedIn
• Hiring through social media is expected to grow by more than 50% this year from 2013
• Telecom sector's hiring increased 36% in August from a year earlier, according to the Naukri Job Speak Index
• Hiring in the industry is expected to remain fairly healthy over the next few quarters; 4G technology and Reliance Jio
Infocomm's entry will lead to surge in recruitments
http://articles.economictimes.indiatimes.com/2013-10-02/news/42617658_1_telecom-sector-speed-new-leader
http://economictimes.indiatimes.com/industry/telecom/telecom-firms-relying-on-social-media-to-hire-talent/articleshow/43571741.cms
3 key skill sets for employees
Speed
Technical
Expertise
Ownership &
Accountability
HIRING

37. • The surge in the subscriber base has necessitated a network expansion covering a wider area,
thereby creating a need for significant investment in telecom infrastructure
• To curb costs and focus on core operations, telecom companies have been segregating their tower
assets into separate companies
• Creating separate tower companies has helped telecom companies lower operating cost and
improve capital structure, and also provided an additional revenue stream
Rising
Competition
Higher
operating
cost and
debt burden
Focus on
tower
sharing to
reduce cost
Segregation
of towers
into
separate
companies
Emergence of Tower Industry

38. 0 5 10 15 20 25 30 35
Others
GTL Infra
Bharti Airtel
Viom Networks
Bharat Sanchar Nigam
Reliance InfraTel
Indus Tower
Market share of tower companies in 2010
(based on towers owned)
ITTC
28%
Telcos
owned
72%
Ownership of towers (2010)
The growing need for towers and rise in tower sharing have led to emergence of independent telecom tower
companies (ITTCs) along with the Telecos-owned Tower companies
Source: Aranca Research

39. Aircel plans to set up 200 more XPRESS stores in the country, targetting model XPRESS stores to 500 by the middle of 2015
Reliance Jio Infocomm has signed deals with Ascend Telecom Infrastructure and Tower Vision to share their towers to roll out its
much awaited high speed data and voice services sooner and at a lower cost across India
Vodafone India has extended its Project Samridhi to Karnal in rural Haryana, in a bid to boost sales and provide
employment opportunity to women in the region
Reliance Communications (RCom) has entered into inter-circle roaming partnerships with Aircel and Tata Teleservices Ltd to offer
3G services on a pan-India basis
Tata Communications has entered into strategic partnerships with NEXTDC in Australia, Interxion in Germany and Austria, and
Pacific Link Telecom in Malaysia
Vodafone Business Services (VBS) launched managed video conferencing service for enterprises to offer an experience of world class
virtual face-to-face-like interaction with various participants anytime, anywhere.
Source: Aranca Research

41.  Best opportunities for Indian telcos to pursue to capitalize on explosion in the mobile
Internet user base
India will leapfrog into online
and digital services over the
next three to five years—
opening up an extraordinary
opportunity for telcos to become
the primary gateway to the
digital life
Ecare and Estore
Media Content and
Services
Mobile app for
SME’s
M -payments
Four Areas that hold vast potential for Telcos
Source : http://www.atkearney.com/communications-media-technology/ideas-insights/featured-article/-/asset_publisher/4rTTGHNzeaaK/content/creating-the-next-
multibillion-dollar-online-opportunities-in-telecoms/10192

42.  In developed markets(South Korea and the Netherlands), "over-the-top“ (OTT)
mobile messaging applications now constitute a significant threat to telecommunications
carriers' SMS-messaging revenues
Reasons for OTT Tipping
Technology
readiness
A cost incentive to
adopt OTT
The strength of the
OTT alternative
The social
propensity to adopt
OTT
3G and better network that enables accessibility
Smartphone penetration at high levels
Opportunity to arbitrage between data and SMS costs
High cost of SMS incentivizes to switch to inexpensive OTT
Relative Mix of Smartphones in age 18-24 years
Individual person social group is biggest influencer
Significant market penetration by given OTT app
Concentration of single Os platform with integrated IM
OVER THE TOP Tipping

43.  Fixed and mobile telecommunications operators are pragmatically melding different
technologies in order to deliver the performance customers want at costs that make
sense.
Source : Mckinskey Report on Choosing Network Technology by Duarte Bacelar Begonha and Sergio Osle
Three factors that make choosing right suite of network technologies
1. Changes in demand
2. New Technologies
3. Regulatory moves
Several predictions regarding tomorrow’s telecom environment can be made
The networks of the
future will integrate
fixed and mobile
services
Network quality,
speed, and enabled
services will, from
the customer's
perspective, become
key differentiating
factors
These new
technologies and
regulatory
opportunities open
broad options for
operators

44. Emergence of Mobile Videos
Mobile video market has developed because of:
(i) Increased Smartphone penetration
(ii) Improved high speed mobile networks
(iii)Increasing demand for mobile video, and
(iv) Influx of new mobile video service providers
But it is in nascent stage, India will see several OTT, DTH and telecom operators themselves trying to
leverage this opportunity
To be successful, focus of the players would remain on:
• Targeted Content: Customer segments / content preferences etc.
• Historic & Internal Analytics: Behavior analytics / trend analytics etc.
• Innovative Service Models: Live streaming / on-demand streaming / limited downloads etc.
• Innovative Business Models: Content owner’s share / operator’s share / customer wallet / sponsorship
etc.
• Quality of Service: Connectivity / better quality at lower speeds etc.
Source : TMT predictions by Deloitte ,2014

45.  Increase in the rural market penetration remains the mantra to improve market
share
 Introduction of new and efficient technologies such as M2M and cloud computing
 Make available fresh spectrum that will meet the demands of the growing data
usage
 Indian mobile operators and equipment vendors need to develop energy-efficient
networks by deploying renewable energy sources
 Use of business analytics and big data to address challenges faced by Telecom
companies
 Reducing vulnerability to security attacks

46.  In 1995,Incorporated as Birla Communications Limited, Obtained licenses for
providing GSM-based services in the Gujarat and Maharashtra
 In 1996, Changed name to Birla AT&T Communications Limited
 In 1997,Commenced operations in the Gujarat and Maharashtra Circles
 In 2000, Merged with Tata Cellular Limited, thereby acquiring original license
for the Andhra Pradesh Circle
 In 2001, Acquired RPG Cellular Limited and consequently the license for the
Madhya Pradesh (including Chattisgarh) Circle
 In 2002, Changed name to Idea Cellular Limited and launched "Idea" brand
name and Commenced commercial operations in Delhi Circle
 In 2004, Acquired Escotel Mobile Communications Limited, Reached the four
million subscriber mark
 In 2006, TATA Group transferring its entire shareholding in the Company to the
Aditya Birla Group. Reached the 10 million subscriber mark
 In 2007Won an award for the "CARE" service in the "Best Billing or Customer
Care Solution" at the GSM Association Awards in Barcelona, Spain. Same year
reached 20 million subscriber
 In 2013, became third largest service provider by subscriber base
Source :http://www.ideacellular.com/aboutus/history

48.  A pan India pure wireless play 2G-
GSM service provider
 Third largest operator in India, by
Mobility Revenues and VLR
subscribers
 Holds 3G Spectrum (2100 & 900 MHz)
in 12 service areas, which covers ~80%
of Idea revenues and 57% of Industry
revenues
 Provides 3G services in 21 service
areas, including Intra-Circle Roaming
(ICR) arrangement for 10 service areas
 Voice Minutes Carried ~1.82 billion
per day during Q1FY15
 Owns 9,495 towers, with a tenancy of
1.57
 Holds 16% stake in Indus Towers
through its subsidiary ABTL

49. 22%
18%
14%
13%
7%
7%0.5%
0.2%
1%
4%
0.3%
13%
1%
Bharti
Vodafone
IDEA
Reliance
Tata
Aircel
Loop Mobile
Quadrant
Sistema
Unitech
Videocon
BSNL
MTNL
No. of Total
Subscribers
135.79 millions
No. of Rural
Subscribers
74.72 millions
Maximum Net
Additions Dec’13
to Mar’14
7.10 million
Highest Rate of
Growth
5.52%

50.  Provides passive infrastructure
services in 15 service areas
 Leading independent tower
company
in the world with around 113,500
towers and tenancy ratio of 2.09 (as
of June 30, 2014)
 Combined revenue market share
of
three shareholders is 71.3%
 Idea benefits by reduced capex,
speed to market, and embedded
value
of shareholding

52. STRENGTH
Reputation of Brand
Technology innovation used in Idea
Advertising and promotion in Idea
High quality network structure
WEAKNESS
No Broadband service
Low coverage in India
Market leader only in North India
Direct to Home Service is not
available
OPPORTUNITIES
The Indian telecommunication
industry is growing at faster rate
Low penetration, more particularly in
rural India
New services, like internet, 3G, 4G
Intense competition
Customers loyalty is low
Increasing cost of promotion
Increased network cost
SWOT
THREATS

53.  Mounting losses have forced small/new telecom providers to exit or
selectively close operations
 Cost per minute for Idea has improved with scale, while ARPM uptick has
helped drive margin improvement

54. Sales Model of Service Outlets
COCO COFO FOFO
Company Owned , Company Operated Company Owned , Franchise Operated Franchise Owned , Franchise Operated
Outlets are large in size
High level of control
Outlets are large in size Outlets are small in size
Moderate level of control Low level of control
Types of Service outlets of IDEA
FOFO
Sales Model of My Idea (MI) Store
Out-bound salesIn-bound sales
Front Desk executives (FDE)
Number depends upon category of outlet
Generally 1-2 FDEs
Number mandated by Idea
Number of FOS per MI : 5
Feet on street (FOS)
Direct control of the company ,
On Ideas pay roll
Direct control of Franchise Partner,
On FPs pay roll

55. Idea's 3G services
start from
chattisgarh, Gujarat
and Hp & MP
It Plans progressive
pan-India rollout of
'Gold Standard' 3G
services to ensure
unmatched customer
experience
To enjoy Video
Conferencing, Video
on Demand, Mobile
TV and high-speed
Internet, Introduces
Time based Billing
plan for 3G services
Idea has
traditionally focused
on growth from
semi-urban
heartlands of India
and will continue to
drive its 3G services
from these
industrial,
agricultural and
educational region.

57. At different points of time, idea has launched different campaigns. Most
the campaigns, advertisement focus on the social issues and try to solve
the problem by using mobile phones. Some of the famous campaigns are
as listed below
 Focused on making consumer awareness, with its campaign on
internet it is making consumer more awareness about the benefit of
Internet
 Differentiated from other competitors by providing the benefits like
detail billing, etc to every user
 Environmental friendly campaign- Use mobile save paper
 Health related campaign- Walk while you talk
 Education for all- use of mobile to teach students remotely
 Social- Use of mobile to vote and take social & community decisions