Tata Teleservices

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Table of Contents

Overview of Telecom Industry 3

Market Overview 3

Growth Forecast 3

Core competencies -Industry 4

Value added services in India: Snapshot 4

Marketing Plan 5

Pricing 7

Sales tactics 7

Advertising & Promotion 7

Distribution 7

Future services to look for: Tata Teleservices 8

GPS Service 8

BVC: Buy Via Cell 9

Social Networking 10

Mobilize Finance 11

Associations with different Websites & Channels 12

Telephonic Trading (Via SMS) 13

Call blocks 14

Emergency – Zero balance Calls 15

CONCLUSION 16

EXHIBITS 17

Overview of Telecom Industry

The Indian Telecom market is going through a very dynamic phase with lots of mergers and acquisitions happening around. The major players have been in constantly reinventing their services to hedge the shifts in their market share.

Initially three major private players – the erstwhile Hutchison Telecom, Bharti, and Idea Cellular � emerged in the battlefield. The entry of the state-owned enterprises –BSNL and MTNL – as mobile operators saw BSNL, in particular, emerge as a major contender to these private players. And finally we have seen the arrival of Reliance and Tata Indicom come into the CDMA market, although now Reliance is coming in the GSM in a big way. The release of the spectrum to the players has intensified the contest amongst these.

However for the mobile subscribers it has been a joy ride with more and more value added services being dished to them at minimum prices. The price wars of the operators have left the Indian consumer satiated and this has resulted in increasing of the mobile consumer base in India. The mobile sector has grown from around 10 million subscribers in 2002 to 150 million by the start of 2007. Whilst GSM technology still dominates the mobile market, CDMA has quickly grabbed an almost 30% share. The mobile industry should continue to boom.

Market Overview

The telecom market of India had seen annual growth in excess of 100% for a number of years in succession. The Indian mobile market has been characterised by fierce competition. Mobile call charges in India are claimed to be the lowest in the world due to vigorous competition among the money-losing mobile companies. Into 2006, call charges – and as a consequence ARPUs – are dropping as intense competition continue in the industry.

Growth Forecast

Gartner’s prediction has forecasted that India would continue to be the highest telecom growth market in the Asia-Pacific region. Gartner expected Indian companies to spend US$16.7 billion on telecommunications in 2005. It predicted that by end-2008 mobile penetration would rise to 14.5% and combined mobile-fixed penetration to reach 19.1%. Its predicted that, by 2008 that every 1 in 5 Indians will have a mobile subscription. An Indian government report in June 2002 said that the telecom market would grow from its 2001 level of US$7.4 billion in annual revenues to US$27 billion by 2010. In November 2004, the MCIT said it expected investments worth 1.6 trillion rupees over a three year period up to 2007 would be directed towards expanding the country’s rapidly growing telecommunications network. In January 2005, one Indian market research company said that the country’s total teledensity was expected to reach 25% by 2010 and that it would be �one of the world’s largest telecommunications markets’ by 2008. India’s total Tele-density had been forecast to grow to 7% by 2004, but it had surpassed expectations and grown to 8.2%. Mobile services were set to dominate the Indian telecom market until at least 2010. Since mid-2003, mobile services accounted for over 90% of the growth in the telecom subscriber base.

Core competencies -Industry

Quality: The quality of the service provided