Introduction to Telecom Industry

Project on Emerging Strategy in Telecom of Vodafone

Introduction to Telecom Industry

The telecom network in India is the fifth largest network in the world meeting up with global

standards. Presently, the Indian telecom industry is currently slated to an estimated

contribution of nearly 1% to India’s GDP.

The Indian Telecommunications network with 110.01 million connections is the fifth largest

in the world and the second largest among the emerging economies of Asia. Today, it is the

fastest growing market in the world and represents unique opportunities for U.S. companies

in the stagnant global scenario. The total subscriber base, which has grown by 40% in 2005,

is expected to reach 250 million in 2007.

According to Broadband Policy 2004, Government of India aims at 9 million broadband

connections and 18 million internet connections by 2007. The wireless subscriber base has

jumped from 33.69 million in 2004 to 62.57 million in FY2004- 2005. In the last 3 years, two

out of every three new telephone subscribers were wireless subscribers. Consequently,

wireless now accounts for 54.6% of the total telephone subscriber base, as compared to only

40% in 2003. Wireless subscriber growth is expected to bypass 2.5 million new subscribers

per month by 2007. The wireless technologies currently in use are Global System for Mobile

Communications (GSM) and Code Division Multiple Access (CDMA). There are primarily 9

GSM and 5 CDMA operators providing mobile services in 19 telecom circles and 4 metro

cities, covering 2000 towns across the country

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Cellular Market Structure in India

As in other countries, in India, the Cellular Mobile Service Providers (CMSPs) are licensed to

operate in designated geographical operating areas. The service areas include four metro

areas and 18 circles categorized as A, B and C. (The categorization is based on the revenue

Proceedings of the 36th Hawaii International Conference on System Sciences).

The potential with category C circles in the lower end of the scale. For example the metros

account for 40% of the subscriber population, with Category-A, B and C accounting for 33%,

23% and 4% respectively. The CMSPs had to pay an entry fee and subsequently annual

license fee as a percentage of their revenue to the Department of Telecommunications.

The entry and license fees varied according to the service area, highest for metros and lowest

for Category-C circles. Some of the CMSPs could not fulfill their licensing obligations and

their licenses were revoked leading to a monopoly situation in certain areas. Apart from these

charges, each CMSP has to share the revenue with the long distance operators for carrying

inter-service area calls.In profitable metros and circles, the competition is severe and the

market is split between the two operators. In a price-cap regulated market, the operators use

appropriate pricing strategy to win customers and win market share. In highly price-elastic

markets, such as in India, as the service provider reduces the price, the subscriber base

increases considerably, and so is the network traffic. The increased network traffic decreases

the performance and the quality of service, inviting customers to switch. Being a new entrant

in a metro area, the government operator reduced the airtime charges to such an extent that

the subscriber base increased suddenly leading to poor network performance. The operator

did not have enough network capacity to handle calls leading to blocking of calls, with

frustrated customers switching over immediately to competitors.

The Churn in the Cellular Industry:

As like the other products Cellular industry has not been left untouched from the Churn

(switching over). During the survey this fact comes to the fore. According to the cellular

operators, there is a normal seven to eight percent churn in the customers, especially in the

pre-paid category. Among the post-paid customers, the Churn is much lower about two-three

percent.

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They say that one significant change that has happened in the last few months, more so since

lowering of the tariffs, is that the bias in favour of incoming calls as far as call charges are

concerned — incoming calls has been set free while they are charging reasonably only for the

outgoing ones — has changed. A tariff re-balancing has definitely taken place.

This means that the cellular operators are encouraging their subscribers to not just receive

calls, but also make calls — increasing the usage of the service. With falling tariffs, cellular

operators are convinced that increasing usage is one way to ensure that average revenue per

user (ARPU) does not fall very low. The industry figure for ARPU is believed to be about

Rs.1,100 while it may vary from operator to operator. The operators are also concentrating on

introducing more value added services to the customers. Value-added services have not really

taken off. Only the SMS (short messaging service) has really caught on, but operators like

Bharti are bringing in services like music messaging and concierge facility for its subscribers.

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Company Profile

Vodafone is a mobile network operator headquartered in Berkshire, England, UK. It is the

largest mobile telecommunications network company in the world by turnover and has a

market value of about £75 billion (August 2008). Vodafone currently has operations in 25

countries and partner networks in a further 42 countries.

The name Vodafone comes from Vo ice da ta fone , chosen by the company to "reflect the

provision of voice and data services over mobile phones."

As of 2006 Vodafone had an estimated 260 million customers in 25 markets across 5

continents. On this measure, it is the second largest mobile telecom group in the world behind

China Mobile.

In the United States, Vodafone owns 45% of Verizon Wireless.

History:

In 1982 Racal Electronics plc's subsidiary Racal Strategic Radio Ltd. won one of two UK

cellular telephone network licenses. The network, known as Racal Vodafone was 80% owned

by Racal, with Millicom and the Hambros Technology Trust owning 15% and 5%

respectively. Vodafone was launched on 1 January 1985. Racal Strategic Radio was renamed

Racal Telecommunications Group Limited in 1985. On 29 December 1986 Racal Electronics

bought out the minority shareholders of Vodafone for GB£110 million.In September 1988 the

company was again renamed Racal Telecom and on 26 October 1988 Racal Electronics

floated 20% of the company. The flotation valued Racal Telecom at GB£1.7 billion On 16

September 1991 Racal Telecom was demerged from Racal Electronics as Vodafone Group.In

July 1996 Vodafone acquired the two thirds of Talkland it did not already own for £30.6

million. On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for

£77 million, a 181 store chain whose customers were overwhelmingly using Vodafone's

network. In a similar move the company acquired the 80% of Astec Communications that it

did not own, a service provider with 21 stores.

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In 1997 Vodafone introduced its Speech mark logo, as it is a quotation mark in a circle; the

O's in the Vodafone logotype are opening and closing quotation marks, suggesting

conversation.

On 29 June 1999 Vodafone completed its purchase of AirTouch Communications, Inc. and

changed its name to Vodafone Airtouch plc. Trading of the new company commenced on 30

June 1999. To approve the merger, Vodafone sold its 17.2% stake in E-Plus Mobilfunk. The

acquisition gave Vodafone a 35% share of Mannesmann, owner of the largest German mobile

network.

Vodafone’s original logo used until the introduction of the speech mark logo in 1998. On

21 September 1999 Vodafone agreed to merge its U.S. wireless assets with those of Bell

Atlantic Corp to form Verizon Wireless. The merger was completed on 4 April 2000.

In November 1999 Vodafone made an unsolicited bid for Mannesmann, which was rejected.

Vodafone's interest in Mannesmann had been increased by the latter's purchase of Orange,

the UK mobile operator. Chris Gent would later say Mannesmann's move into the UK broke

a "gentleman's agreement" not to compete in each other's home territory. The hostile takeover

provoked strong protest in Germany and a "titanic struggle" which saw Mannesmann resists

Vodafone's efforts. However, on 3 February 2000 the Mannesmann board agreed to an

increased offer of £112bn, then the largest corporate merger ever. The EU approved the

merger in April 2000. The conglomerate was subsequently broken up and all manufacturing

related operations sold off.

On 28 July 2000 the Company reverted to its former name, Vodafone Group Plc. In April

2001 the first 3G voice call was made on Vodafone United Kingdom's 3G network. In 2001

the Company took over Eircell, then part of eircom in Ireland, and rebranded it as Vodafone

Ireland. It then went on to acquire Japan's third-largest mobile operator J-Phone, which had

introduced camera phones first in Japan.

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On 17 December 2001 Vodafone introduced the concept of "Partner Networks" by signing

TDC Mobil of Denmark. The new concept involved the introduction of Vodafone

international services to the local market, without the need of investment by Vodafone. The

concept would be used to extend the Vodafone brand and services into markets where it does

not have stakes in local operators. Vodafone services would be marketed under the dual-

brand scheme, where the Vodafone brand is added at the end of the local brand. (i.e., TDC

Mobil-Vodafone etc.)

In February 2002 Finland was added into the mobile community, as Radiolinja is signed as a

Partner Network. Radiolinja later changed its named to Elisa. Later that year the Company

rebranded Japan's J-sky mobile internet service as Vodafone live! and on 3 December 2002

the Vodafone brand was introduced in the Estonian market with signing of a Partner Network

Agreement with Radiolinja (Eesti). Radiolinja (Eesti) later changed its name to Elisa.

On 7 January 2003 the Company signed a group-wide Partner agreement with mobilkom

Austria. As a result, Austria, Croatia, and Slovenia were added to the community. In April

2003 Og Vodafone was introduced in the Icelandic market and in May 2003 Vodafone Italy

(Omnitel Pronto-Italia) was rebranded Vodafone Italy. On 21 July 2003 Lithuania was added

to the community, with the signing of a Partner Network agreement with Bitė.

In February 2004 Vodafone signed a Partner Network Agreement with Luxembourg's

LuxGSM and a Partner Network Agreement with Cyta of Cyprus. Cyta agreed to rename its

mobile phone operations to Cytamobile-Vodafone. In April 2004 the Company purchased

Singlepoint airtime provider from John Caudwell (Caudwell Group) and approx 1.5million

customers onto its base for £405million, adding sites in Stoke on Trent (England) to existing

sites in Newbury (HQ), Birmingham, Warrington and Banbury. In November 2004 Vodafone

introduced 3G services into Europe.

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VODAFONE:

Today, in India, becomes Vodafone. Now, the pink color logo of Hutch is replaced by

Vodafone Essar’s corporate red colored one.

In 2005-06, the Orange brand in Mumbai was phased out to introduce (now Vodafone). The

company also changed the colors of its logo from orange to pink and then red.

After acquiring 67 per cent of stake (around Rs. 250 crores) in ison Essar from Hong Kong-

based ison Whampoa, Vodafone Essar is expecting to touch over 35 million customers across

400,000 shops and thousands of ’s own employees along with employees of its business

associates.

Vice chairman, Ravi Ruia, Vodafone Essar, said “We’ve had a good innings as in India

and today marks a new beginning for us, not as a departure from the fundamentals that

created , but an acceleration into the future with Vodafone’s global expertise.”

Vodafone CEO, Marten Pieters of the Vodafone Essar will be landing in India for the

meeting that would discuss branding exercise, expansion plans, spectrum requirements for its

expanding subscriber base and future plans.

Vodafone offers a host of premier value added services (VAS) including national and

international roaming in over 70 countries in over 160 networks, Wireless Application

Protocol (WAP), short message service, voice mail service, auto roam, fax and data, cricket

updates, M-banking, general information, tarot line, etc. The company launched WAP in

Delhi in October 2000, much before its rival Bharti. It has 5000 WAP customers, as in

December 2000. The company has been a prime mover in introducing these value-added

services in the Delhi circle.

The values are stated simply. To be fair and transparent in what they do and how they do it.

To provide the quality services with more customer friendly practices. To make one’s

communications experience simple, pleasurable and fun. Where he doesn't simply get

technology - but technology that is relevant. Where solutions are not just promised in the

future - but delivered in the present.

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CORE VALUES :

We shall uphold the dignity of the individual.

We shall honor all commitments.

We shall be committed to Quality, Innovation and Growth in every endeavor .

We shall be responsible corporate citizens.

Vodafone Logo

Accomplishments:

- Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most

Respected Telecom Company´, the ´Best Mobile Service in the country´ and the

´Most Creative and Most Effective Advertiser of the Year´.

- Vodafone is the world´s leading international mobile communications group with

approximately 315 million proportionate customers as at 30 June 2009.

- Vodafone currently has equity interests in 31 countries across five continents and

around 40 partner networks worldwide

- The Essar Group is a diversified business corporation with a balanced portfolio of

assets in the manufacturing and services sectors of Steel, Energy, Power,

Communications, Shipping Ports & Logistics, and Projects.

- Essar employs more than 50,000 people across offices in Asia, Africa, Europe and the

Americas.

- The company now has operations across the country with over 78.68 million

customers.

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Services:

Staying connected becomes a lot easier with Vodafone. We have a wide range of

services you can access right from your Vodafone phone. From cell banking to

flight updates to call management services, get all that you want, instantly.

Prepaid services(latest):

- Vodafone Essar, one of India’s leading cellular service providers announced a new

Bonus Card 25 for its prepaid customers in Punjab. With this new bonus card,

Vodafone customers can enjoy the benefit of unlimited national SMS at just

20paisa/SMS. The new bonus card comes with 30 days validity.

Postpaid services(latest):

- Vodafone Essar, one of India’s leading cellular services providers has launched three

new monthly rental plans - Budget 500, Budget 750 and Budget 1000 - for its

postpaid customers in Kolkata and West Bengal. These Budget plans offer

combinations of free minutes over local and STD calls along with free local SMS.

This offer is valid for new and existing customers.

Sridhar Rao, Chief Executive Officer, Vodafone Essar East Limited, said

“These budget plans will specially appeal to customers with high usage who can now

manage their mobile bills without compromising on talktime or SMS volume.”

- Announced a special offer for its customers in Madhya Pradesh and Chhattisgarh.

Customers can now avail free VIP numbers with every new post paid connection. The

VIP numbers provide customers an option to choose a number of their preference

from a range of special Golden numbers that usually comes with a huge price tag.

Vodafone Online:

Get all the useful information you need directly on your Vodafone phone - with Vodafone

Online. Including cricket, finance, entertainment, weather, astrology and more.

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Simply go to the Vodafone Online menu on your Vodafone phone. If you do not see the

Vodafone Online menu on your phone, send HELP to 123. We will send you the list of

keywords.

Scroll to the topic on which you need information.

Select the information and key input as requested on the screen.

You will be charged Rs. 2 per outgoing message. Incoming messages are free.

MTNL Directory:

With this facility you can get to know the address and telephone no. of MTNL users.you will

be charged Rs.2 per outgoing message.

STD / ISD Codes:

You don't need to look up your diary or a phone directory to find out STD and ISD codes.

You can find it directly through your Vodafone phone.

Ringtones & Logos:

Now you can change the ringtone on your Vodafone phone according to your

moods. You can download logos as well. With the Vodafone and Yahoo! tieup you

have hundreds of tunes and logos to choose from.

For every ringtone downloaded, you will charged Rs. 7.00 (including the cost of

SMS sent). For every logo/picture message downloaded, you will charged Rs.

3.00 (including the cost of SMS sent).

Flash & Blink

Vodafone now offers you two exciting ways to send messages. You can make your message flash

directly on your recipient’s screen instead of the inbox. You can also highlight the important parts of

your message through blinks. So your text messages become not only more visible, but more effective

too.


Dial-in Services

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Vodafone brings you more conveniences at your fingertips. Use our Dial-in-Services to check

cricket scores, horoscope, up-to-the minute news and other relevant information on services

that touch your everyday life.

All Dial-in-Services carry a flat charge of Rs 6 per minute (1 min pulse).

Here's a shortlist of services you can access –There are occasions when you may not

want to take a call, or your Vodafone phone maybe busy or simply unreachable.

By paying a nominal monthly access fee, you can now retrieve your messages at

your convenience. Even if you are roaming, you can retrieve your messages from

your voice mailbox through a fixed line, anywhere on earth.

Your Vodafone voicemail can

Hold up over 17 messages at a time.

Receive a message that lasts up to 90 seconds.

Store a message for as long as you want.

You can also record your voice signature and welcome message.

Calling Line Identification

You can check your caller's telephone name and number on your phone screen whenever you

receive a call. This gives you the flexibility to either accept or reject an incoming call. This

service is also helpful in identifying your missed calls

You can access this service by just paying Rs. 49 per month, if you are a postpaid customer.

This service is absolutely free if you are a Vodafone Prepaid customer.

Itemized Billing

As a Vodafone Postpaid customer, you can choose to receive an itemized bill at the end of

each month. This is a detailed billing statement which helps you keep track of all your calls.

Your itemized bill includes:

Origin of the call

Destination of the call

Duration of the call

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Toll charges

Airtime and total charge

Get your itemized bill.

Via post: Pay a monthly rental of 49 only.

Fax & Data Services

This service enables you to constantly keep in touch with your office, colleagues

and information sources. You can send or receive faxes and transmit data using

your Vodafone phone anytime, anywhere. Whether you are operating from

home, Hotels and airport lobbies.

At speeds of up to 9600 bps within the network or while roaming. You can even

access the Internet.

All you need is a handset compatible data card (PC Card) or a GSM Software, and

a data chord cable with a PC to set up a mobile office.You can also opt for either

Vodafone Fax or Vodafone Data services independently.Your Vodafone fax

number can help you differentiate between incoming voice calls and fax

transmissions. You can also send and receive faxes anywhere on earth with your

Vodafone phoneBy opting for the Vodafone Data Services you can access e-mail,

databases and the Internet. All on your single incoming data number.

Charges to activate the Vodafone Fax and Data service, you just need to pay a

one-time activation fee of Rs 500. To access the Fax service, the fee is Rs. 250.

The usage charges are nominal at Re 1 per minute.

Call Management Services

There may be occasions when you need to conference with up to six people at a

time or talk to just two. Or you are speaking to someone and want to forward an

incoming call to another phone. With your Vodafone phone, you can do this and

more. Vodafonehelps you manage your calls effortlessly so that you stay in

control of your conversations, always.

Voice Response

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Get your Vodafone phone to respond directly to your commands. Custom

designed to recognize Indian voices and accents, the Voice Response service

makes your life more convenient. You can get the latest updates on news,

stocks, cricket and your horoscope. Airtime charges will be Rs.6 per minute (1

minute pulse).

Voice Messaging

Voice Messaging has become even more affordable. You can now send voice messages to

cellular phones as well as fixed telephone lines in USA or Canada for just Rs.3.95 per min*

(as against Rs.4.95 per min earlier).

Yahoo! Messenger For SMS

You do not have to wait to get a PC to use the Yahoo! Messenger. With the exclusive

Vodafone-Yahoo! tie-up, you can easily get connected through your Vodafone phone.This

unique messenger comes with a lot of exciting features. You can connect with all Yahoo!

Messenger users, send, receive and reply to instant messages, view and manage your friend

list and also manage authorization requests. All this and more just by using SMS. You will be

charged Rs. 2 per outgoing message. Incoming messages are free.

Cell Banking

Vodafone now puts the bank in your pocket with Cell Banking. Access your bank account

and transact directly on your Vodafone phone by sending text messages. The first of its kind

in India, this service enables you to conduct your banking without having to visit the bank or

making a call. You can do Cell Banking from over 90 countries worldwide.


Roaming

Now you can always stay connected, no matter where you are. With the

Vodafone Roaming facility, you can use your Vodafone phone in over 100

countries worldwide and over 1000 cities, towns and highways across India.

Vodafone Roaming makes life easy and convenient for you.

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- Vodafone Essar, one of India’s leading cellular services providers, today announced

significant reduction in international roaming rates for its Postpaid customers

traveling to South Africa during the upcoming DLF Indian Premier League (IPL)

cricket tournament. Vodafone Essar is the official partner to DLF IPL 2009

One number across the globe

Your Vodafone phone number and PIN number remains the same whether you

are in Delhi, Chandigarh, London, Paris or anywhere else in the world.

National and International Roaming on Vodafone Prepaid

Roaming on Vodafone Prepaid gives you the most extensive coverage in over

1000 cities, towns and highways across India, and in over 100 countries around

the world. Enjoy Roaming on your Vodafone Prepaid card and stay in touch

wherever you go.

Yahoo! Mail For SMS

You can now directly access your email account on Yahoo! Mail on your Vodafone phone. What’s

more, you do not need a WAP enabled handset for this service as it is based on SMS. So gain freedom

from your PC and access your Yahoo! mails anytime, anywhere on your Vodafone phone. You will

be charged Rs. 2 per outgoing message. Incoming messages are free.

WAP

With WAP, you can have the Internet directly in your pocket. So if you are looking

for quick and easy delivery of information and services, your Vodafone phone

can show it all. Use it to check out news, finance, shopping, entertainment,

travel, entertainment and city service information etc. To access this service all

you need is a WAP enabled handset and WAP services activated on your

Vodafone phone. This service comes to you at a nominal charge of Re. 1 per

minute (1 min pulse).

Group Messaging

Party invitations, movie outings, festive greetings... whatever be the occasion, you can send

your message to all your friends at one go!

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With Group Messaging from Vodafone, you can thus save yourself the bother of

painstakingly sending your message to one person at a time whether you are on Vodafone

Prepaid or Postpaid.

Vodafone4help

Vodafone4help now lets you take advantage of a lot more services than before. You can

connect to the nearest fire brigade or mechanic or florist or even order a pizza. If you are

stranded in the middle of the road, or if you you need immediate medical attention or if you

are looking for a police station close by, Vodafone4help gives you instant access to your

nearest source of help, anywhere in Delhi or the NCR.

All the help services are [email protected]/min. while for police and fire help only local airtime

charge is applicable.

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mailto:[email protected]/min


Vodafone Essar

Vodafone Essar, previously Hutchison Essar is a cellular operator in India that covers 21 telecom

circles in India. Despite the official name being Vodafone Essar, its products are simply branded

Vodafone. It offers both prepaid and postpaid GSM cellular phone coverage throughout India and is

especially strong in the major metros. Vodafone Essar provides 2G services based on 900 MHz and

1800 MHz digital GSM technology, offering voice and data services in 22 of the country's 23

licence areas.

Ownership:

Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indian nationals,

15%.On February 11, 2007, Vodafone agreed to acquire the controlling interest of 67% held

by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping Reliance

Communications, Hinduja Group, and Essar Group, which is the owner of the remaining

33%. The whole company was valued at USD 18.8 billion. The transaction closed on May 8,

2007.

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Previous brands:

In December 2006, Hutch Essar re-launched the "Hutch" brand nationwide, consolidating its

services under a single identity. The Company entered into agreement with NTT DoCoMo to

launch i-mode mobile Internet service in India during 2007.

The company used to be named Hutchison Essar, reflecting the name of its previous owner,

Hutchison. However, the brand was marketed as Hutch. After getting the necessary

government approvals with regards to the acquisition of a majority by the Vodafone Group,

the company was rebranded as Vodafone Essar. The marketing brand was officially changed

to Vodafone on 20 September 2007.

On September 20, 2007 Hutch becomes Vodafone in one of the biggest brand transition

exercises in recent times.

Vodafone Essar is spending somewhere in the region of Rs 250 crores on this high-profile

transition being unveiled today. Along with the transition, cheap cell phones have been

launched in the Indian market under the Vodafone brand. There are plans to launch co-

branded handsets sourced from global vendors as well.

A popular daily quoted a Vodafone Essar director as saying that "the objective is to leverage

Vodafone Group's global scale in bringing millions of low-cost handsets from across-the-

world into India."

While there is no revealing the prices of the low-cost Vodafone handsets, the industry is

abuzz that prices might start at Rs 666, undercutting Reliance Communications' much-hyped

'Rang Barse' with cheap handsets beginning at Rs 777.

Meanwhile, Vodafone Essar sources said there would be no discounts or subsidized handset

offers -- rather handset-bundled schemes for customers.

Incidentally, China's ZTE, which is looking to set-up a manufacturing unit in the country, is

expected to provide several Vodafone handsets in India. Earlier this year, Vodafone penned a

global low-cost handset procurement deal with ZTE

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SWOT

STRENGTHS: Vodafone has its brand image and its ranking is 2nd in world. So here one

thing is conform that Vodafone has good network and outstanding services that’s why its

users are most after china mobiles. At gave some special packages to attract customers. It can

offer international roaming facility more than any network in India. Financially Vodafone is

strong and is able to invest heavy amount in India.

WEAKNESS : It has to take license from PTA and act according to rules of India due to

which it may not give it’s special services like 3G,vedio calling and call to someone by

hiding your phone number.

OPPORTUNITIES: Vodafone can capture Asian market if it can grow in India ,55% of

population of India is young and mobile phones are most commonly used by young ones.

Demographs of India tell us that in this company Vodafone can earn heavy amount of

revenue. Total mobile users in India is 89.9 million and the population of the country is 1.15

billion. So there is space for market penetration . If Vodafone offers some special packages

for limited time then customer of other networks may switch. Vodafone have better

technology so it can capture the customers of the other networks as well. With India

Vodafone can capture Asia as well because of population or demographs of India.

THREATS: The current recession in market is not good for any kind of business including

telecommunication. Five cellular companies are already working in India. The situation in

India is not good specially political and peace. There are a lot of uncertainties in the country.

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Customer Satisfaction Survey - listening to customers' needs

As part of our ongoing commitment to delivering exceptional service and support, we

recently surveyed a number of our Global Enterprise customers. The analysis of these results

identified some key areas where Global Enterprise can develop solutions and provide greater

benefits and support to our customers.

Pricing

Globally consistent pricing is crucial for any global business in order to manage its

communications spend more effectively. We have launched a new voice roaming tariff that

can be used for both domestic and international voice usage, across 5 European markets and

are currently working on extending this footprint. For data, we have developed a roaming

package that is simple, predictable, capped and available across 10 European markets

We are working on an improved monthly roaming tariff for mobile datacards plus a Friends

and Family tariff, which we plan to announce later this year.

Contracts & commercial terms

In addition to shortening and simplifying our contracting process, our legal and commercial

teams have continued to grow in order to provide even greater support for customers. Our

Master Services Agreement has been expanded to cover new countries, increasing the

footprint available under this contract.

Global Footprint & Communications

We continue to identify opportunities for expansion of the Vodafone footprint, as well as

increasing our engagement with our partners across the globe. We have appointed a number

of Regional Engagement Managers who are responsible for ensuring that the needs of

Vodafone Global Enterprise customers are prioritised within Vodafone affiliates and partners.

We are also building an agency management capability specifically for Vodafone Global

Enterprise customers to ensure that you have a consistent approach to managing mobility

worldwideA number of Customer Forum events are being planned for the coming year. These

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will provide an ideal opportunity to interact with other global businesses and ensure that

you’re kept up to date with the latest product and service information from Global Enterprise.

Global Solutions

We have increased our portfolio of global solutions with consistent products across key

markets, such as Vodafone Applications Service which enables you to access critical

applications from any smart device. We continue to build our managed service capabilities,

specifically for reporting, security and device management. This year will see the launch of

Spend Manager, providing a web based reporting tool for our customers to keep control of

spend and profiles across multiple countries.

Service Implementation

We understand that the speed of implementing any new solution is critical for our customers

and we continue to build a world class service and programme management team to provide

even greater support in this area. We have adopted MSP and Prince 2 as our project and

programmed management methodology and introduced direct reporting lines between our

national service teams and Vodafone Global Enterprise to ensure greater control of end-to-

end implementation.

We continue to further develop our professional managed services capabilities to reduce the

complexity and cost of managing your global communications. Your Global Service Manager

will be able to give you more information on how we can help your business.

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Market Segmentation

After gathering all this data our objective was to segment the market or market targeting. We

tried to follow the theory of the segmentation which says that, to be useful, market segments

must be:

Measurable: The size, purchasing power, and profiles of the segments can be

measured. Certain segmentation variables are difficult to measure. Like for our

product 89% of the population of Mumbai takes tea and more than 70% of the

population takes tea more than one time daily and in that 70% more than 50% of the

population takes tea more than one time to four times a day. And the population of

Mumbai is more than 10 million and according to the report 8.9million people are the

customers for the tea. And 70% means 7 million are the potential customers of this

product.

Accessible: The market segments can be effectively reached and served. Like our

advertisement team was working very hard to capture or dominate the mass marketing

strategy we adopted, in the same manner we did make sure that our distribution

channels are capable enough to provide the service to the consumer by making sure

that the availability of the product is certain.

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Substantial: The market is large or profitable enough to serve. A segment should be

the largest possible homogenous group worth pursuing with a tailored marketing

program. It would not pay like our product Unique, was for everyone and there was

no restriction of anything in the usage.

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Product Positioning

After selecting the segment we had a big task of position our product in the customers mind.

As we know that a product’s position is the way the product is defined by the consumer on

the important attributes, the place a product occupies in the consumers mind relative to the

competing products. Positioning involves implanting the brands unique benefits and

differentiation in customers mind. As we tried to position our product as the strongest

communication services in the market by comparative advertisement on the media and as I

mentioned earlier that we have already tried to get an effective noise level in the consumer

surroundings before starting our media publicity.Consumers are always overloaded with

information about products and services. They cannot reevaluate products every time they

make a buying decision. To simplify the buying process consumers organize products into

categories, they position products, services and companies in their minds. A products position

is the complex set of perception, impression and feelings that consumers have for the product

compared with the competing products. Consumer position their product with or without the

help of marketers, but marketers do not want to leave their products position’s to chance.

They must plan position that will give their products the greatest advantage in selected target

markets.

Competitive Advantage

…………“The competitive advantage of our services was that, that it is equally strong as

Mobilink but at an affordable price. This service possess some kind of uniqueness which the

other brands does not posses.”

Which Differences To Promote?

Not all brand differences are meaningful or worth-while not every difference makes good

differences are meaningful or worth-while not every difference make a good differentiator.

Each difference has the potential to create company costs as well as customer

benefits .therefore; the company must carefully select the ways in which it will distinguish

itself from competitors. A difference is worth establishing to the extents that it satisfies the

following criteria:

Affordable : “Our services are a unique in many aspects; one of them is the price.

We have offered our communication services at low price than the other services.

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We are able to do this because of the new technology, equipments, and accessories.

The modern techniques help us to minimize the cost in the tea production.”

Important : The difference delivers a highly valued benefit to target buyer.

Distinctive : Competitors do not offer the difference; other company can offer it in a

more distinctive ways.

Superior : The difference is superior to other ways that customers might obtain

the same benefit.

Communicable : The difference is communicable and visible to buyers.

Preemptive : Competitors cannot easily copy the difference.

Profitable : The product must provide a real benefit to consumer.

Pricing.

The pricing of the tea is specially designed for the special purpose that is “Affordable for

all”. The company had decided earlier that the price factor of Vodafone will be carrying a

unique factor of affordability. But the quality is same as the expensive one. The pricing is

leveled very correctly by our competent team of researchers. Peoples are very loyal to the

brands or they don’t want change we introduce (likho)sachets & where the peoples want to

experience and have resources to taste new and can buy more in quantity we introduce the

boxes (packets) etc.

Advertisement

As we had already started our mass marketing so we managed to get a noise level within the

market and we also used TV and Newspaper for the advertisement, and for advertisement we

hired an advertising company. And our sales team did provide light boards to more to more

than 60 big stores in Mumbai which had our product’s name on it. In the same time our sales

team gave targets to the different retailers and set bonuses for them on achieving certain

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targets. At the same time we started a quiz questions along with a scratch card with our

product and different prizes were allocated for the winners. The one of the basic innovative

idea is related to our product is the “advertising unlimited”. As we are approaching the

normally promotion channels like print media, electronic media (+internet) etc. We are also

looking widely at the billboard concept of advertising, the sell stands, sell promotion

campaign by moving vehicles, the hoardings but the thing we include in that is we will be

launching a parachute carrying our label on it, the hoardings will be every where. The

concept of this huge marketing campaign was the part of the organization statement of

Uniqueness which is the main difference between our product and others.

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Customers, marketing and distribution

Vodafone endeavours to ensure that customers’ needs are at the core of all products and

services. Understanding these needs and continuing to serve them is key to Vodafone’s

customer strategy.

Customers

Vodafone has 302.6 million proportionate mobile customers across the globe. The Group

seeks to use its understanding of customers to deliver relevance and value and communicate

on an individual, household, community or business level. In delivering solutions that meet

customers’ changing needs in a manner that is easy to access and is available when required,

Vodafone aims to build a longer and deeper customer relationship.

Vodafone continues to use a customer measurement system called “customer delight” to

monitor and drive customer satisfaction in the Group’s controlled markets at a local and

global level. This is a proprietary diagnostic system which tracks customer satisfaction across

all points of interaction with Vodafone and identifies the drivers of customer delight and their

relative impact. This information is used to identify any areas for improvement and focus.

Customer segmentation

Customer segments are targeted through many different tariffs and propositions, which are

adapted for any localised customer preferences and needs. These often bundle together voice,

messaging, data and, increasingly, fixed line services.

Consumer

Customers are typically classified as prepaid or contract customers. Prepaid customers pay in

advance and are generally not bound to minimum contractual commitments, while contract

customers usually sign up for a predetermined length of time and are invoiced for their

services, typically on a monthly basis. Increasingly, Vodafone offers SIM only tariffs

allowing customers to benefit from the Vodafone network whilst keeping their existing

handset.

Enterprise

The Group continues to grow usage and penetration across all business segments. VGE

manages the Group’s relationship with Vodafone’s 270 largest multinational corporate

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customers. VGE simplifies the provision of fixed, mobile and broadband services for mncs

who need a single operational and commercial relationship with Vodafone worldwide. It

provides a range of managed services such as central ordering, customer self-serve web

portals, telecommunications expense management tools and device management coupled

with a single contract and guaranteed service level agreements.

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Marketing and brand

Vodafone has continued to build brand value by delivering a superior, consistent and

differentiated customer experience. Communication activities are focused on delivering the

promise of “helping customers make the most of their time”. The Group’s vision is “to be the

communications leader in an increasingly connected world” expanding the Group’s category

from mobile only to total communications. To enable the consistent use of the Vodafone

brand in all customer interactions, a set of detailed guidelines has been developed in areas

such as advertising, retail, online and merchandising.

Vodafone regularly conducts brand health tracking, which is designed to measure the brand

performance against a number of key metrics and generate insights to assist the management

of the Vodafone brand across all Vodafone branded operating companies. An external

accredited and independent market research organisation provides global coordination of the

methodology, reporting and analysis.

Distribution

Vodafone directly owns and manages over 1,800 stores selling services to customers and

providing customer support. The store footprint is constantly reviewed in response to market

conditions. The Group also has 5,200 Vodafone branded stores, which sell Vodafone

products and services exclusively through franchise and exclusive dealer arrangements.

Additionally, in most operating companies, sales forces are in place to sell directly to

business customers. The internet is increasingly a key channel to promote and sell

Vodafone’s products and services and to provide customers with an easy, user friendly and

accessible way to manage their services and access support, whilst reducing costs for the

Group.

The extent of indirect distribution varies between markets but may include using third party

service providers, independent dealers, distributors and retailers. The Group hosts mvnos in a

number of markets, selling access to the Vodafone network at a wholesale level. Where

appropriate, Vodafone seeks to enter mutually profitable relationships with MVNO partners

as an additional route to market.

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Company’s Future Prospectus

The Vodafone also took some additional steps for the consumer’s sake and different interests.

We are suppose to launch India website shortly in which the facilities of free email account,

chatting rooms, E-greetings, current news, stock rate, weather situation etc. We are moving

towards fulfilling the requirements of new millennium costumers.

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Conclusion

Vodafone uses the capabilities of the mobile phone to bring value to both developing and

developed economies. The impact of mobile technology on developed markets over recent

years has been immense and has focused on providing added value to customers through new

and improved functions and features. By comparison, the impact of technology on emerging

markets such as Kenya has provided a real lifeline both to individuals and to small

businesses. The mobile phone has helped economic development in emerging economies.

With growth in the provision of mobile phones, Vodafone has enabled great improvements in

facilitating the flow of money and information, which is vital for economic growth

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Bibliography

http://www.vodafone.com/start/media_relations/news/local_press_releases/

portugal/portugal_press_release/vodafone_had_highest.html

http://en.wikipedia.org/wiki/Customer_satisfaction

http://en.wikipedia.org/wiki/Hutch_(Indian_cellular_company)

http://en.wikipedia.org/wiki/Vodafone

http://bora.nhh.no/bitstream/2330/1919/1/Saplitsa%202008.pdf

www.anacom.pt/render.jsp?contentId=606658

www.iimcal.ac.in/community/consclub/reports/telecom.pdf

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Introduction to Telecom Industry

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Transcript of Introduction to Telecom Industry