Market entry strategy for UninorSyndicate 6 – Systems and Finance

About Telenor Group• Telenor Group - Incumbent telecommunications company in Norway, with headquarters

located at Fornebu, close to Oslo.

• An international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand.

• Currently ranked as the sixth largest mobile phone operator in the world, with more than 172 million subscribers.

• Started off in 1855 as a state-operated monopoly, named Telegrafverket as a provider of telegraph services.

• Key people :- – Jon Fredrik Baksaas (President and CEO), – Harald Norvik(Chairman)

Telenor world locations 2009

Telenor in India

• Uninor had started its mobile services on 3rd December 2009, in 8 of the 22 circles in India. Telenor has acquired a 67% equity stake in Unitech Wireless, which has the requisite government approvals and licences to provide mobile services pan-India. Uninor has rolled out its network nation-wide under brand name Uninor.

About Unitech Group • The Unitech Group is India's second largest real estate investment company, and has recently

claimed to be the largest real estate builder in the country

• Founded by Ramesh Chandra and originally formed as United Technical Consultant Private Ltd in 1972 as a soil investigation company.[They later moved into civil engineering contracts in 1974.

• The company began to focus solely on real estate in 1986, and today it is India's second-largest listed real estate firm.

• he company is based in New Delhi and ranks 1484, in Forbes Global 2000 listing of the top 2000 public companies in the world by Forbes magazine, 32nd in India

• The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a wireless services license for all 22 Indian telecom circles since 2008.

About Uninor

• In early 2009, Unitech Group and Telenor agreed on a majority take-over by Telenor of Unitech's wireless business, including Unitech Wireless' national-wide mobile license.

• By March, May and November, Telenor acquired a 33%, 49% and 60% stake in Unitech Wireless, respectively.

• In September, the mobile operation changed its name to Uninor.

• On October 19 the Indian Cabinet Committee of Economic Affairs (CCEA) announced that it has approved Telenor's acquisition of up to 74% in Unitech Wireless, and the shareholder's agreement sets a 67.25% Telenor ownership in Uninor.

Uninor’s Strengths

World class IT and network

►Amongst the best voice clarity

►Quality mobile experience

►Supported by most modern systems and processes

►Backed by the largest network ever deployed

Great care, great people

►Customer first in every interaction

►Belief in a strong customer care as the core of business

►Attracting the best in the league talent

Product designed for you

►Product designed to get more from every opportunity

►Products based on users Needs and ambitions

►Plans are simple and offer incomparable value

Uninor’s key market entry strategies

Uninor’s Strategy

Innovative advertisements and promotions

Focusing on a major chunk of the market

Hub-based geographical divisions

Deputed IT systems and outsourced networks

Focusing initially on2G services

Innovative pricing plans and products

Innovative pricing plans and products

• Dynamic Pricing Plan– Pioneer concept, one of its kind– 24X7 changing discount plan– Upto 60% discount depending on the time and place

• Innovative plans– Talk longer at 29p/min– Call more at 29p/min

Innovative advertisements and promotions• Hoardings with the changing discount rates along with the time for which they are

applicable

• TV and web advertisements featuring their own employees – treasuring their people the most

• Localized advertisements and different versions of the tagline ‘Ab mera number hai’

• Campaigns without famous personalities and celebrities to contain marketing costs

Focusing on a major chunk of the market • Focus on a major chunk and not the entire Indian market

• Step by step rollout instead of a national deployment

• Different plans for each operating circle

• Appealing to consumers believing in constant growth

Hub-based geographical divisions

• No centralized operating centre

• Dividing the country into 11 zones each controlled by a dedicated hub

• Controlling operating costs and maintaining a leaner and fitter organization

Deputed IT systems and outsourced networks• Tower sharing agreements for complete rollout, do not own even a single tower

• Specific operations are assigned to experts outside the organization to curtail costs

• Adopting the best practices deployed by the existing telcos

• Gradual network buildup with support from operating partners

Focusing initially on 2G services

• Did not opt for 3G spectrum as they see a lot of opportunity in the existing 2G market

• Focusing on voice as a major revenue generator

• Less debt compared to other 3G bidding operators, having a good chance to break even before the competitors

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