From Generation To Generation

The lure of 3G notwithstanding, telecom players have a long road ahead if they are to monetise it
That which is well built
will never be torn down.
That which is well latched
cannot slip away.
Those who do things well
will be honoured from generation to generation
Tao Te Ching
The auction of 3G or ‘third-generation’ spectrum has been followed up by the rollout of services that will enable the delivery of a range of next generation services — video streaming, movie downloads, video calls and so on. With as much as Rs 67,719 crore invested by operators in 3G spectrum, they are bound to follow Tao Te Ching’s wisdom in introducing 3G services in the market.

Bharti Airtel is using experiential marketing wherein it has several red-coloured “3G buses” on the move in major cities. Users can step into these buses and have a firsthand experience of 3G mobile services like mobile TV, video calls, high-speed downloads and so on. Its print and outdoor ad screams: ‘Airtel 3G is here’. Tata DoCoMo, known to have one of the largest footprint in retail stores amongst telecom operators, is turning thousands of its shops into “experience stores”. Consumers can walk in and experience services like video SMS, video streaming, mobile television, ultra-high-speed data transfers, route-finder, and live aarti. This assisted experiential marketing would help in making the millions who have not used GPRS yet more familiar with what 3G is all about.
Many of us are familiar by now with Superhero ZooZoo flying all over our TV screens. That was Vodafone’s 3G launch strategy, that is, use its much-appreciated TV ads to announce the introduction of 3G services in India. Superhero ZooZoo stands for the brand personality of 3G — Faster, smarter and better — and helps educate subscribers on this new technology in a simple manner. The different things Superhero ZooZoo does in the TVC indirectly point to the quality of the 3G network that Vodafone aspires to offer. Vodafone is also offering free time-bound 3G trial to its current GPRS subscribers. This not only serves the purpose of pre-purchase service trial but also provides Vodafone with valuable usage data from which it can infer which services are more sought after, how the data consumption is likely to change after mass introduction of 3G services and so on.
On the other hand, Reliance is focusing more on partnerships to offer popular value-added services. It has tied up with Universal Music Group so as to offer music streaming and is promoting its new App Store on Reliance 3G that enables you to get directions while on the road, tips on cooking and yoga, and so on.
Lessons from PSUs
There are some lessons to be learned from BSNL/MTNL in terms of 3G strategies that did not work well. Users found their 2G to 3G SIM card exchange system complicated since one was required to send an SMS as “M3G120” to 53733 and confirm the SMS you get back as “M3G120 Y” to 53733. BSNL’s strategy of offering 3G services at the same price as 2G perhaps weaned subscribers from competition. However, this did not lead to higher data average revenue per user (ARPU) vis-à-vis the 2G network. (In Japan, innovative data plans and highlighting the relevance of 3G services have enabled high penetration and data ARPU.) Moreover, MTNL and BSNL were not able to provide enough marketing thrust to 3G services, thus leading to a lack of awareness of their 3G services. It must not be forgotten that the target customers for a service like 3G prefer young and energetic brands like Airtel and Vodafone.
To provide critical insights in order to close in on a strategy for the deployment of 3G services, the eTech Group@IMRB, active in the area of telecom-related market research for several years now, recently carried out a Syndicated Study on 3G Mobile Services in India christened “The World Of 3nity”. The first round of the study has been conducted amongst as many as 10,000 mobile subscribers and 1,520 establishments across top cities such as Delhi, Mumbai, Chennai, Kolkata, Pune, Ahmedabad, Bangalore and Hyderabad. The study also covers views of several industry experts on the India 3G market. Mobile operators seem to be on the right track since as many as 72 per cent of mobile users assume understanding usage of 3G services would be complicated and someone would need to demonstrate it to them first.
The study reveals that only 9 per cent own a 3G-enabled handset, but 82 per cent are willing to switch to a new (3G-enabled) handset to avail 3G services, provided it lies in the Rs 4,200- 6,400 price band. This is in line with the fact that Indian handset manufacturers have already started offering 3G-enabled handsets at ‘middle class affordable’ prices. With a plethora of handsets in the market, the bigger issue is the pricing of the 3G services. As we know, India is a price-sensitive market and for 3G to percolate to the masses the price would need to be quite low and attractive — to start with. However, that is unlikely to happen given the huge cost of spectrum which itself is scarce and the fact that some of the winners are operating in the low-ARPU voice market.
The consumer segment study was carried out using random sampling with a minimum quota for some aspects such as SEC A, B, C & D and subscribers of the 3G spectrum winners while. The fieldwork was completed in December 2010.
As per the IMRB study, 32 per cent are aware of 3G mobile services. Amongst those who are aware, as many as 93 per cent associate video calling with 3G. Here is what an industry expert says about other 3G services: “Purely utilitarian stuff like traffic signal, map, directions, facilities, restaurants and purely entertainment stuff like gaming, infotainment will be very big. Casual gaming will dominate.”
Video versus voice
The report also reveals even more interesting information — that while video calling may be the most awaited 3G application, the main reason people would consider subscribing to 3G services is that 73 per cent of mobile subscribers believe it will mean better voice quality. Experts believe that in the first instance, 3G will be used by many operators to improve their overall network quality and retain voice customers.
Video calling could well emerge as the next big mobile application. Even the unlettered can use it to communicate. However, there are certain constraints — both sides need a double camera phone. It is ironical that rural citizens who require high-speed applications (telemedicine, e-education) the most can afford them the least. In Korea, the government accelerated the adoption of 3G with subsidies for operators as well as mobile phone manufacturers. In India too, the government and industry would need to work together to take 3G to the villages.
The business segment study was done purposely amongst those involved with mobile/telecom decision-making. In case of SMEs, mobile usage is restricted to voice. Besides, messaging is also used especially by small enterprises. However, awareness of specialised enterprise applications such as ERP and CRM on mobile was found to be abysmal. In order to increase penetration of 3G amongst enterprises, it is important to create higher awareness about how they can utilise 3G for business purposes.
We have seen in global markets that it takes time for 3G to transcend from a technology to becoming a household need. The recent rollout of 3G in China has seen only 4 per cent adoption after two years of aggressive marketing by the players and evident government backing. Since none of the operators have a national footprint we are likely to see partnerships being forged amongst operators to weave together a national offering. And with consolidation in the telecom industry on the cards in the next few years, only time will tell who religiously followed Tao Te Ching’s wisdom.

The author is Group Business Director, IMRB

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Hello TV On BSNL Crosses 5 Lakh Subs; Percept Knorigin MD Viraj Malik On ROI

HELLOTV the mobile TV service deployed by Percept Knorigin with BSNL since February 2010, has crossed 5 lakh subscribers, including both 3G and non-3G users
Percept Knorigin MD and CEO Viraj Malik told MediaNama that running a Mobile TV business in India is tough for a VAS provider as content costs are high and service price points are low. “The ARPUs for mobile TV services are in the range of Rs 20 and the churn is high. We are open to working with operators who believe in an equitable revenue share and commit to promoting the service,” he reiterated. Percept Knorigin, which is the digital arm of media firm Percept Holdings, also plans to launch a targeted mobile TV app for the Indian diaspora in overseas markets, including an iPad app. In India, it is in talks with three major operators to roll out mobile TV services on 3G and GPRS in the next three months.
Percept has launched mobile TV through circuit switched data or video call on BSNL on the shortcode 51010, which is priced at Rs 2 per minute or Rs 299/month for unlimited use. The service will be launched on MTNL as well.
On BSNL, Hello TV services single channel packs are priced at Rs 10 per day, Rs 20 per week and Rs 30 per month. A combo pack of 30 popular channels is also available at Rs 149 a month in addition to Low Value packs of Rs 29/month for three channels and Rs 49/month for five. In addition to subscription charges, a usage charge of Rs 0.0025 per 10kb (25 paise per MB) also applies. The service is integrated with BSNL’s WAP portal BSNL Live, and does not require a separate application download: allows users to watch TV streams from their native mobile browsers.
Another player in the Mobile TV space, Apalya, which is also present on BSNL through its MiMobi TV app charges Rs 10 per day or Rs 50 per month for single channel packs, and Rs 150 per month for subscription to all channels.source

BSNL gains 29,000 customers after MNP

Rajiv Agarwal, BSNL's chief general manager, Andhra Pradesh Circle, today claimed that more than 29,000 cell phone customers from other telecom services migrated to BSNL after number portability scheme was introduced.

As against that, only 8000 customers switched from BSNL to another mobile service provider, he said.

He said that to improve the customer service in the city, a 24-hour service center has been set up.

Agarwal also said that radiation from BSNL towers was minimum and they meet all the norms imposed by the Government on radiation.source

Old Telcos Likely To Challenge TRAI Fine

 Old telecom players — Bharti, Idea and Vodafone are considering a legal challenge against Trai’s recent recommendation to levy heavy spectrum charges on them. Trai has recommended this penalty for excess spectrum held by these companies.

The CAG, which had pegged the exchequer’s loss due to the 2G scam at Rs 1.76 lakh crore had also ascribed Rs 37,000 crore of the total to the excess spectrum held by these firms. “If the telecom department accepts the Trai recommendation, we will have no choice but to challenge them in the courts. The Trai recommendation are unjust and the charges they have announced are too high,” said a senior official from a telecom company.

In fact last year Bharti, Vodafone and Idea had challenged in TDSAT, Trai’s recommendation which had first talked about levying one time charge on these old telecos for the spectrum they hold beyond 6.2 Mhz based on the price discovered in then on-going 3G auction. These companies were forced to withdrew their petition because at that time telecom department had not accepted these recommendations and therefore the petition was not “maintainable.”

However, then Trai on its own had told the telecom department that it will study the matter in detail and will give recommendations separately on how to charge the spectrum beyond 6.2 Mhz. Last week, Trai finally came out with its report recommending that companies be asked to pay Rs 4,571 crore for every MHz of spectrum they hold on a pan-India basis over the contractual limit of 6.2 Mhz.

The government is expected to get additional revenue of Rs 16,000 crore if it accepts these recommendations, an analysis by Emkay Global Financial Services shows. BSNL, which holds the maximum amount of additional spectrum, will have to pay Rs 7,000 crore. BSNL has excess spectrum in 19 circles (61 Mhz), Bharti in 13 circles (32 Mhz), Vodafone in seven circles (19.6 Mhz), Idea in six circles (12.6 Mhz), MTNL in two circles (12.4 Mhz), BPL in one, Reliance in one, Aircel in one and Spice (now Idea) in one, according to CAG report.source.

Top 10 Operators in INDIA 2011

Top 10 Mobile service Providers in India 2011

List Of Mobile Phone Service Providers in India: 

Below You can find the list of Mobile Service Providers and their Market Shares

	Operator	Subscriber base	Market Share
1	Bharti Airtel	146,293,078	21.34%
2	Reliance Communications	119,351,438	17.37%
3	Vodafone	118,038,438	17.08%
4	BSNL	80,739,935	11.31%
5	Tata Teleservices	80,817,298	11.47%
6	Idea	76,023,551	10.84%
7	Aircel	47,519,629	6.64%
8	Unitech	13,748,300	1.05%
9	Loop	3,009,445	0.45%
10	Sistema	7,121,765	0.86%
11	MTNL	5,342,039	0.81%
12	Videocon	5,616,152	0.43%
13	Stel	1,867,060	0.22%
14	Etisalat	70,829	0.01%
15	HFCL Infotel	1,132,477	0.13%
	All India	706,691,164	100.00%

Top 10 Mobile Service Providers in India:

1	Bharti Airtel
2	Vodafone
3	Idea
4	BSNL
5	Aircel
6	Tata Serviceable
7	Reliance Communications
8	MTNL
9	Unitech
10	Loop

State wise Mobile Phone Subscribers: 

	State	Subscriber base	Population (01/08/2010)	Mobile phones per 1000 population
1	Uttar Pradesh	92,867,835	199,415,992	427
2	Maharashtra	84,543,727	110,351,688	707
3	Tamil Nadu	63,671,528	67,773,611	881
4	Andhra Pradesh	54,000,379	84,241,069	600
5	West Bengal	51,901,967	90,524,849	520
6	Bihar	46,311,291	97,560,027	430
7	Karnataka	43,802,688	58,969,294	709
8	Gujarat	40,158,662	58,388,625	618
9	Rajasthan	38,649,784	67,449,102	535
10	Madhya Pradesh	38,295,896	72,362,313	489
	India	706,691,164	1,188,783,351	580

3million 3G users for BSNL in 2011

 State-run telecom entity, Bharat Sanchar Nigam Limited (BSNL) expects its 3G (third generation) mobile services subscriber base to touch 3-million mark by March, a senior company official said.

"We will be adding two-million subscribers in the 3G services this fiscal," BSNL Principal General Manager (Value Added Services) N K Yadav told reporters on the sidelines of 9th VAS International Conferences held here today.

"one million customers were using these services last fiscal," he said.

BSNL was the first telecom firm to roll out 3G mobile services in the country and currently it covers 650 cities across four zones.

"The switch over from 2G to 3G needs to be taken care of. The customer experience cannot be spoilt on any cost. BSNL has been an early starter and the pick up is just getting better and better," Yadav said.

Data usage has increased six times and the number of post-paid customers has gone up since the rolling out of 3G services, Yadav said adding now there is a need to focus on the network and handset related issues.source
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What telcos are offering!!

Telcom firms have launched a major advertising, marketing and promotional blitz to attract new and existing customers after the government launched a pan-India scheme that allows them to switch operators while retaining the numbers.

Although mobile number portability may not be a big game changer for the industry, it is certainly proving to be a boon for customers giving them the freedom to shift networks, as companies are not just improving their service but also throwing in freebies.

State-run Bharat Sanchar Nigam Ltd (BSNL), for example, has waived the porting charges and is offering a SIM card free of cost along with an additional talk value of Rs.100 for pre-paid customers who switch to their service from other operators.

Post-paid customers moving to BSNL will get 50 per cent rebate on their first bill. Idea Cellular, the first telcom operator which started campaigning for the service, has not announced any special offers for the customers, but it is making its presence with its round the clock "No Idea, Get Idea" campaigns.

"We have not launched any special tariff; however, our focus is to provide good network and customer services. We are confident that the large number of customers who want better network will switch to Idea," said Rajat Mukarji corporate affairs officer Idea Cellular.

However, the industry biggie, Bharti Airtel, has not gone full throttle on promotional campaigns. The company is restricting itself to a few offers like the "Airtel surprise" for customers who switch to its network free talktime, special call rates and free SMS.

Unlike Idea Cellular's campaigns citing negativities of the other networks, Airtel has taken a much softer approach with the punch line which says, "Move to Airtel. Bring your old number along."

Vodafone, known for its distinct advertising campaigns, too is not as aggressive as Idea. Its "everybody's welcome" television commercials are cute and feature the face of its promotional activities -- a pug.

One of the biggest players in the industry, Reliance Communications has also launched a slew of television ad campaigns to promote its network and attract customers after the launch of number portability service across the country.

"Global experience shows customers are keen on porting to a service provider offering better network quality, full suite of voice and data products, superior experience and enriched value-added offers," said Mahesh Prasad, president of Reliance Communications.

New telecom players such as Tata DoCoMo have also started campaigns with tags such as "Welcome to the world of freedom, welcome to the world of Tata DoCoMo."

To make it easy for the customers to port into their networks, the operators have also created helpline numbers. These are toll free services created to address the queries of the customers.

To avail himself of the service, a customer has to pay a maximum of Rs 19 to the new operator for "porting" the number and remain with the new operator for at least three months.

The customer has to send an SMS from the existing phone to 1900. Based on this, a unique porting code will be sent by existing provider. An application then has to be filed with the new service provider mentioning the code for transferring the connection.

The maximum waiting period for porting is fixed at seven working days. But the number may remain out of service for just two hours. India currently has over 700 million mobile phone users, making the network the largest in the world after China but ahead of the US. The country has been adding 15-18 million new mobile phone connections to the network every month. source

BSNL presents iPad 3G Data Plans

BSNL will unveil iPad 3G Data Plans. BSNL will provide 3G Data Plans for iPad to both its Prepaid and Postpaid consumers. We have also learnt that BSNL will initially offer 3G Data Plans for iPad in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, UP (East), UP (West), Chennai and Kolkata telecom circle.
For pre paid customers it offers starter pack priced at Rs. 100, it will come alongwith Free Usage of 1GB/month for 6 months. For Prepaid consumers BSNL will provide 3 plans namely, Unlimited monthly plan, Limited monthly plan and Daily plan.For post paid customers it will charge one time activation fee of Rs. 100. There is only one plan available for Postpaid users i.e Unlimited Monthly Plan. It will be available at Rs. 999 per month with unlimited usage and no FUP.

BSNL 3G services in all 760 cities soon

KANCHEEPURAM: The Bharat Sanchar Nigam Limited's target to roll out 3G services in 760 cities will be achieved by this fiscal, according to its Chairman and Managing Director Gopal Das.
Talking to mediapersons after a function on Rajiv Gandhi Salai in Padur, near Kelambakkam, on Saturday, he said the pan-India presence enjoyed by BSNL had helped in smooth and easy rollout of 3G services in 700 cities. In the remaining 60 cities, the 3G services would be rolled out by March 31, he said.
Earlier, he inaugurated BSNL's new broadband service offered through fibre-optic cables to the occupants of ‘Mantri' – a residential complex promoted by Mantri Developers. The new broadband service – Fibre to the Home (FTTH) – utilises fibre-optic cables and optical electronics instead of copper wire and DSL equipment, Mr.Gopal Das said. There were plans to provide FTTH service to high-end customers in 127 cities across the country.
The BSNL CMD also launched Smart Payphone Card services in Chennai Telecom District (CTD), where the phone card could be used to make calls from specially designed PCO boxes.
Chief General Manager of BSNL Chennai Telephones, A.Subramanian said the launch of FTTH would help improve business prospects of BSNL in the Chennai region.source

FAQs of Mobile Number Portability

Finally, the most awaited Mobile Number Portability (MNP)is here. Starting today, you will now be able to switch networks as per your convenience and choice as MNP is now launched all over India. Many of us want to know about some of the frequently asked questions about the Mobile Number Portability. So, lets check out the same.

FAQs of Mobile Number Portability

1. What is Mobile number Portability (MNP)?
Basically, MNP which is the short form of Mobile number Portability which allows you to retain the same number and allows you to switch to different operator irrespective of GSM or CDMA mobile operator.

2. What is the Benefit of using MNP?
In an era of competition where Customer is a King, you get a freedom to choose from the services of different operators present across your circle. Since this allows you to retain the number and change the operator you will be relieved from new set of numbers which you previously used to get when you change the number.

3. What is meant by the term Porting?
Porting is basically a technical word which means that your mobile number is ported to a new recipient operator or in short it’s an act of switching to a new mobile service provider.

4. How i can Port and what are the requirements for taking the advantage of MNP?
There’s a procedure by following which you will be able to port your number to an operator of your choice. If you are a prepaid subscriber then you should have at least completed 90 days with the current operator before applying for MNP. If you are a postpaid customer, then here too you should complete 90 days with your current telecom operator before applying for MNP.

5. Is MNP available only for postpaid customers or prepaid customers can also avail this?
Irrespective of Prepaid or Postpaid, all subscribers who have been a customer of a particular operator for at least a period of 90 days.

6. Will my balance and scheme will be transferred with the number if i shift to any other operator?
No, all balances and schemes of your current operator will be lapsed and you need to choose from the plan which the recipient operator is offering.

7. Can i make use of MNP and shift to other operator without clearing the dues of my existing operator?
Unless and until you clear all the dues of your current postpaid connection you will not be allowed to port your number to any other operator.

8. What are the documents i need to carry when i go for porting my number?
You need to carry two recently clicked passport sized photos along with Proof of Address (POA) and Proof of Identity (POI). Do carry original documents as well as a copy of both.

9. Where i need to go for porting my number?
If you are a customer of Loop Mobile and wishes to move to Vodafone, then you need to go directly go to Vodafone’s official Gallery for porting your number.

10. Do i need to get porting code or the recipient operator will do the same?
It’s always better to take the UPC along with you to the recipient operator’s store. You just need to sms PORT (your 10 digit mobile number) to 1900 and within seconds you will receive the UPC from 1901.

11. What is the Porting charge, is it free?
Porting charge is not free; porting fee is fixed at Rs.19 by TRAI (Telecom Regulatory Authority of India), though some companies may offer porting charges less than Rs. 19, in some cases it may be nil due to immense competition in the telecom market.

12. How many days it will take to port my number?
Porting the number will not take more than 7 working days.

13. Can i shift from CDMA to GSM?
Yes, irrespective of CDMA or GSM, you can shift to the new operator and retain the same number. However you will need to have a GSM handset to accommodate the GSM Sim.

14. Can i cancel the porting request?
In an unlikely even if you wish to cancel the porting request you can do so but for this you need to give a written cancellation request within 24 hours of the porting request.

15. Are there any Cancellation charges?
There will not be any additional cancellation charges but the amount of Rs.19 which is the porting fee will not be refunded.

16. Can i shift within the network from Prepaid to Postpaid using MNP?
If you want to shift within the network like Postpaid to Prepaid or Prepaid to postpaid then it’s not required to exercise the MNP as you can do this without using MNP too. Just visit your Operator’s help desk and they will help you out regarding the same.

17. If am a customer of airtel Mumbai, can i port my number to airtel Maharashtra & Goa network or to any other network operator in Maharashtra & Goa circle?
Since, DOT has decided to implement Mobile Number Portability (MNP) within a circle; customer can port their number to another service provider as long as it is done within a circle. Portability between other circles (called Inter circle portability) is not allowed as yet.

18. Under MNP can i switch my Landline number to another operator?
As of now number portability is only made available for the Mobile customers, so Landline customers will not be able to use MNP service.

19. Do i need to submit the Old sim to the new operator?
No, in any case you should not submit your Old sim to the recipient operator as that sim will be with you.

20. Will there be any service disruption time during the MNP Process?
Yes, there will be a service disruption time of only 2 hrs during this process which will be preferably during the night time.

21. Can i port more than once?
Yes, as of now there is no cap on the number of times you can port to operator, as after every 90 days you can port your number to the operator of your choice.

22. If i have a Reliance number which is registered on my name, can i transfer the same number to any other person in the process of Mobile number Portability?
No, you cannot transfer the ownership in the process of Mobile number portability in any case.

23. How will I know when I have to replace my old SIM with the new SIM?
You will get an sms from the recipient operator with details like port-in date and time after which you can use your existing number on new sim.

24. For how long will be the Unique Porting Code be valid?
Unique Porting Code (UPC) received by you while making the porting request is valid for a period of 15 days after which if you wish to get UPC again then you need to again send Porting request to 1900.

25. Who is the recipient operator?
Recipient Operator is an operator or a service provider who will be providing mobile service to the subscriber after porting. In other words, recipient operator is the operator that a mobile subscriber wants to port to.

With the help of Mobile number portability, yuo can port your number to any mobile service provider within your telecom circle like Vodafone, airtel, MTNL, BSNL, Videocon, Idea Cellular, Cheers Mobile etc.source