2. Evolution of Telecom InIn India
Evolution of Telecom India
Department of Telecommunication (DoT) is the main body formulating laws and various
regulations for the Indian telecom industry.
Independent
regulator, TRAI,
was established
INDIA
Private players
were allowed in
Value Added
Services
1997
National Telecom
Policy (NTP) was
formulated
ILD services was
opened to
competition
Go-ahead to
the CDMA
technology
1999
1994
1992
BSNL was
established by
DoT
2002
2000
NTP-99 led to
migration from highcost fixed license fee
to low-cost revenue
sharing regime
Calling Party Pays
(CPP) was
implemented
2003
Internet
telephony
initiated
Reduction of
licence fees
Unified Access
Licensing (UASL)
regime was
introduced
Reference
Interconnect
order was
issued
Number portability
Intra-circle merger
was proposed
guidelines were
established
Attempted to (pending)
boost Rural
telephony
2004
2007
2005
2006
Broadband
policy 2004 was
formulated—
targeting 20
million
subscribers by
2010
Decision on 3G
services (awaited)
FDI limit was
increased from 49
to 74 percent
2
4. BHARTI AIRTEL
• India the most talkative nation after America.
• Bharti Airtel, today is a behemoth with close
to 25% share of country’s mobile telecom
market.
• Serves 75 million subscribers base.
• Most profitable telecom network in the
country with a revenue more than Rs.9,000
crore.
4
7. Lost Mobile Tracking System is a mobile software application which post
installation helps you keep track of your mobile phone in the event of it being
lost.
LMTS service informs you about any change in the SIM of your lost mobile
phone. It sends an SMS of the new mobile number and IMEI No. of your
lost/stolen mobile handset to 3 alternate mobile numbers and an
e-mail on any e-mail ID which had been provided to you by the subscriber at
the time of registration. Thus it helps you in tracking your lost mobile phone.
.
How it works
Each SIM card has a unique International Mobile Subscriber Identity (IMSI)
number. Whenever there is a change in the SIM its IMSI number also
changes. This change is detected by the software and thus is able to identify
any SIM change. IMEI number of the mobile phone is then used to
authenticate the mobile phone.
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15. AMOU & ARPU
Minutes of Usage per Month – Mobile Services
USA
838
India
461
China
Russia
303
Despite a low teledensity of approximately 19
percent, India has the second highest minutes of
usage per month. This offers huge growth opportunity
to telecom companies.
88
ARPU (USD per month)
ARPU* in India – Mobile Services
10
8
The declining ARPU implies that India Inc. is tapping a
large market at the bottom of the pyramid by reducing
tariffs; thereby, enhancing affordability.
6
4
2
0
Q1 2006
Q2 2006
Q3 2006
GSM
Q4 2006
Q1 2007
CDMA
15
17. Customer Retention
Vodafone
TNS used its proprietary TRI*M Stakeholder Relationship Management System,
wherein the TRI*M Index is a measure of the 'intensity of retention' and takes into
consideration both the subscribers' level of satisfaction with the service provider as
well as the level of retention and loyalty towards the service provider.
17
20. Corporate Responsibility at Bharti Airtel
• To be responsive to the needs of our customers
• To continuously improve our services – innovatively
and expeditiously
• To be transparent and sensitive in our dealings with
all stakeholders
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23. Operational Improvement
Business Challenge
Bharti Airtel needed to maximize its future flexibility
and growth potential by adopting a business-driven
framework for integration, allowing it to implement and
deliver new services rapidly. With competition
intensifying in the Indian telecom services market,
Bharti Airtel needed to find a way to focus on
developing new services that could set it apart from the
competition and strengthen its customer relationships.
23
24. Operational Improvement
Solution
Bharti Airtel entered into a comprehensive 10-year agreement with IBM to transform its processes and take on the
management of its IT infrastructure.
Its new platform provides a standardized framework for
Bharti Airtel to integrate its channels and customer-facing
processes–enabling a more seamless customer experience,
higher customer satisfaction and more profitable growth.
24
27. Loyalty is a function of satisfaction with various aspects of services that the
subscriber has experienced. Likelihood of staying with the same operator and
intention to recommend it to others are important measures of loyalty.
Therefore, we have looked at satisfaction against likelihood of staying and
intention to recommend
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31. Failures
1. MTN Deal failure will signal lack of any real market
investment.
2.Airtel failed to reduced its tariff rates in comparison to its
competitors like VODAFONE and BSNL.
3.Unnecessary charges- like for deactivation of services
HELLO TUNES.
4. Ignorance towards cancellation of telephone line.
31
32. Major Challenges
•
•
•
•
Getting a Disproportionate Share of New
customers
Plan and Deploy network
Distribution through a hub and spoke model
Create alliance- IFFCO, Nokia association
Build Relevance for its products and servicesNetwork & affordability
32
33. Major Challenges
Delight current customers
• Build trust- lead simplification of tariff,
customer touch points
• Drive innovation- Data and services like MoD,
M-commerce.
33
34. Major Challenges
Build Capability to Make Scale an Advantage
• Segmentation( consumer, trade) and
segmented delivery
• Technology automation
• Building internal people capabilities like
restructuring of the marketing team which
was carried out recently.
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35. Future Challenges
• Mobile number portability (MNP) is a facility given by
operators where a subscriber can move from one service
provider to another without changing the number allocated
to the subscriber.
• Thus, under MNP, a subscriber will have the option of
retaining the same phone number issued by the old operator
even with the new operator.
• To achieve the successful implementation of MNP, operators
should consider carrying out a comprehensive cost-benefit
analysis to ascertain whether or not the implementation of
the technology would prove to be profitable for the operator.
35
36. Recommendations
• Pricing: Depending on the market conditions/ competitors
from cellular service providers and also to suit local
conditions, there should be flexible pricing mechanism( either
at central or local level.)
• Improvement in technology: Airtel should immediately shift
to third generation switches by replacing its c-dot switches.
This will improve the quality of service to desired level and
provide simultaneous integration with the nationwide
network. The special distribution of the transmission towers
should be increased to avoid “no signal pockets”.
• Increased Focus: It should increase focus on low end
customers.
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37. Future Strategies
• Translate its expertise in Indian markets to other
emerging economies. This could call for
acquisitions globally.
• Technology leadership is a must – Airtel must
ensure that its reliance on GSM technology does
not render it obsolete.
• Indian market inspite of being the worlds largest
is still not matured. Opportunities abound in the
hinterland which must be exploited.
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In India consumer talking over 500 minutes per month which is only second to USA 750 Minutes.
1. Subscribe for cool alerts at the click of a button! What's better is that you receive updates automatically on your Airtel phone.
2. Avail of special services like calling waiting, call hold, call divert and voice mail to manage all your accessibility needs with Airtel
3. More services, for convenient use of your mobile from Airtel network.
4. Let your phone do the talking, with our Mail and Messaging services. Make arrangements, share moments or just say hello..
5. Welcome to Airtel Mobile Phone Backup, a unique service that saves all the vital and precious information at the touch of a button.
If a person dials a no of Chennai,the call through router goes to mobile switching centre of that respective area. Than through different MSC these calls are send to Chennai Bharti ISP. All call tariffs are calculated at Chennai centre and from Chennai it send to desired centralized call centre.
First we have to define what customer wants/ what are the requirements of customers. Company have to decide which segment of customer to target, what are the process req and which particular area to target.
Measure: maesure the different req like tariff for different seg. Time frame for customer complaint redressal. Here KPImetrics is imp indicates critical process to be adressesd.
Analuse:in analysis part, companies find out what customer expected and what perceives abt.offerings.
Then they go for root based cause analysis- from where problem arise and how to solve it.
Design: based on earlier analysis, the whole process is redesigned and op ARE MODIFIED AND ULIMATELY
SCORECARD IS CREATED ON BASIS OF PERFORMANCE PANEL.
VALIDATE: TRAINING TO STAFF FOR NEW PROCESS
IMPLEMENTATION
CONTINUOS IMP.PROGRAMME.
Achievers-Consisting of professionals and executives who want quick and efficient service.
Funsters- young people who want fun and entertainment, mobile is a gadget for them.
Productivity-Enhancer- like traders, plumbersm electricians for whom mobile is aproductive tool.
Social Callers- consiting of young girls/ wives who make calls to stay in touch with their loved one/ friends and at times to flaunt it as a status symbol
Technology Evaluation
Analyse current market situation
Instruments and equipment
Ercission (hardware) and IBM (software)
Gap analysis
Problem arised in accessing AIRTEL from other networks.
Routing problem with BSNL NETWORK.
Internal restructuring and reengineering
Analyse issue surrounding scalability
Proper training regarding information of services.
Targeted institutional customers.
Business growth
Company heavily expanded in rural area’s .
Transmission in remote areas.
Increased towers capacity.
Market and regularity environments
23 circles available.
Formation of cartalisation.
STEP3.
Pilot launched
Feedback received with problems and suggestion
After reengineering user validation was sought
All these were rolled into Airtel Roadmap for CRM
( using ORACLE software in CRM) and pick up of call in call centre in 2-3 rings.
Intrinsic Attributes:
Product: SIM card cost and available calling cost
Service: no. of service outlets and handling of customer complaints.
Activities: easy recharge options.
Extrinsic attributes:
Word of mouth- telling or recommending to friends or relatives etc.
Objective
Price- what competitiors provide
What are different tariff plans available, free sms, rooming rates, STD and local call rates.
Perceived quality:
On the basics of intrinsic and extrinsic qualities consumer perceived service of particular service provider.
Perceived cost:
Monetary cost + other cost of acquisition
Monetary cost: cost of purchasing SIM, recharge etc.
Other cost includes top up cards, rooming cards etc.
Perceived Benefits:
Functional benefits: speed, accuracy in calling
Emotional : rel. to loyalty, customer feels attached to brand or not.
Perceived sacrifice: considering perceived benefits and perceived cost consumer decide what to sacrifice.
Perceived value: On basis of perceived benefits and perceived sacrifice, consumer perceived value which ultimately affects purchase behavior.
Tangible: customer care centre, large workforce and efficient workforce.
Reliability: Accurate billing, customer complaint redressal
Responsiveness: promptness in handling customer complaints
Assurance: time bound customer complaint redressal, billing problems resolved within four weeks.
Empathy: customized tariff plans for family, youngsters, entrepreneurs etc.
At Bharti, each employee is sensitized towards CSR issues and thus operations at the ground level are influenced.
For example, Confidence Plan for hearing impaired people, covers noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above.
Bharti Airtel has been recognized among the Best Employers in the Country which shows the robust, progressive, people as well as business aligned Human Resource practices, which the organization has developed and implemented remarkably in a very short span of time.
Employee friendly HR policies-family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off, no official meetings on weekends.
Performance Linked Incentive (PLI) schemes are linked with the variable component of our compensation structure. This component is linked to both the individual performance against his/ her set KRAs (Key Result Areas) and the overall performance of the business entity that an employee belongs to.
RURAL TELEPHONY- Airtel started a rural helpline with IFFCO to answer
farmer’s various crop related queries.
INFRASTRUCTURE SHARING: they have set up different division BHARTI
INFOTEL to look after towers. Agreement with IBM to transform its processes
and take on the management for its IT infrastructure.
Enterprise telecom: video conferencing, Telepractices etc.
Managed services: customer care centres, process centres,centralized
call centre etc.
Fault Management
Fault management lets you detect and respond decisively to network faults, helping you minimize repair time, lost revenue, and subscriber churn. With fault management you can detect, isolate, and correct malfunctions in a telecommunications network, compensate for environmental changes, and include maintaining and examining error logs, accepting and acting on error detection notifications, tracing and identifying faults, carrying out sequences of diagnostics tests, correcting faults, reporting error conditions, and localizing and tracing faults by examining and manipulating database information.
In the telecommunication market, competition is very high and the products and offerings are more and more comparable. This leads to reduced customer loyalty. Losing an existing high-volume customer means losing a lot of revenue. It is more expensive to gain a new customer than to retain an existing one. Analyzing customer data and customer behavior is the basis for understanding the needs of your customers. It's necessary to identify customers that are willing to move to a competitor before they do so. As a conclusion you have to make the right offering to the right customer at the right time. Churn Management helps to increase customer loyalty and to leverage existing customer assets.
Interestingly, in case of the GSM service providers (cellular), customers seem satisfied with the 'ability to make and receive calls in any part of the city', however, the service providers have fallen short in meeting customers expectations when it comes to coverage within buildings, in basements or in lifts. The corporate image of the service provider continues to be an important aspect in driving retention and most service providers have been successful in building a positive and favorable image among the subscribers.
The study also revealed that 'Error free' and 'accurate' bills, being promptly delivered is something that the customers seem to be taking for granted and have little impact on retention. On the contrary, non-delivery on these could cause a lot of disgruntlement and unhappiness with the service provider.
Another revelation was that customers seemed very peeved with the amounts they had to pay for local and STD calls. The cellular industry has performed below average in various aspects related to 'customer care / helpline'. These include 'time taken before someone attends to you', their 'ability to resolve complaints/ queries in the first instance', 'overall time taken to resolve complaints', call center personnel's ability to take decisions, 'knowledge of customer care personnel about tariff plans and schemes' and 'the promptness in taking action on complaints'.
Hub and spoke distribution model to ensure reach in maximum no. of villages. Airtel Business is quite different from FMCG where the whole thing is done through wholesale while for Airtel Business, the various products and services are sent to one particular person who works as hub and in turn sends these to other sellers working below him across villages.
Airtel started a rural helpline with IFFCO to answer farmer’s various crop related queries.
It offers innovative services like M commerce, music on demand or 3G.
Simplification of tariffs include changing lifetime tariff from Rs2 to Rs 1 or lowering its STD rates.
Its strengths lies that it treats its customers equally and every plan applicable for new as well as existing customers.
Airtel is investing heavily in automation with the help of its technology partner IBM.
Airtel covers around 76 percent of the country reaching nearly 5,000 towns and 3,65,000 villages with the help of its network partners.
Recently(last quarter) it added roughly 6700 towers and 4,700 km of OFC network.