PROJECTPROJECT TO STUDY ABTS & TO STUDY ABTS &

COMPETITORS ANALYSISCOMPETITORS ANALYSIS

An Insight Into Competitors An Insight Into Competitors Model And SuggestionsModel And Suggestions

22

AIRTEL – Brief InfoAIRTEL – Brief Info

1.87 Million Broadband and Wireline subscribers. 1.87 Million Broadband and Wireline subscribers.

32% of Broadband & Wirleline subscribers are also 32% of Broadband & Wirleline subscribers are also subscribing to Broadband. This means, subscribing to Broadband. This means, Airtel has 0.59 Airtel has 0.59 Million Broadband subscribersMillion Broadband subscribers. .

Some more insights-Some more insights-

-- Broadband & Wirleline services revnue is up Broadband & Wirleline services revnue is up by 50%. by 50%. Contributes 12% of Total RevenuesContributes 12% of Total Revenues

-- Broadband & Wireline segement has ARPU of Broadband & Wireline segement has ARPU of Rs 1,112 /Month. Rs 1,112 /Month.

*ARPU – Average Revenue Per User.*ARPU – Average Revenue Per User.

33

AIRTEL-EXISTING MODELAIRTEL-EXISTING MODEL

INDIRECT CHANNEL

DSA ARCRETAILERS+

TIEUPS+TECHNOLOGYRETAIL CHAINS

SUB DEALERS

LEAD GENERATION +

CAF FULFILMENT

LEAD GENERATION

44

AIRTEL – DSA STUDYAIRTEL – DSA STUDY

PAYMENT STRUCTURE - COMMISSION BASIS.PAYMENT STRUCTURE - COMMISSION BASIS. VOICE(in Rs.)VOICE(in Rs.) DSL(in Rs.)DSL(in Rs.)<=75 <=75 450450 <=100<=100 45045076-10076-100 500500 101-125101-125 500500101-150101-150 550550 126-175126-175 550550151<151< 600600 175<175< 600600

ADDITIONAL INCENTIVESADDITIONAL INCENTIVESPLAN PLAN Rs.Rs.<=746<=746 NILNIL747-998747-998 125125999<999< 200200

55

AIRTEL – DSA STUDY AIRTEL – DSA STUDY (contd…)(contd…)

FSOs PER DSA – 4*FSOs PER DSA – 4*

TELECALLERS PER DSA – 2*TELECALLERS PER DSA – 2*

DSAs USUALLY HAVING MORE THAN ONE BUSINESSES DSAs USUALLY HAVING MORE THAN ONE BUSINESSES HENCE NOT A DEDICATED PARTNER OR WORKING STAFF.HENCE NOT A DEDICATED PARTNER OR WORKING STAFF.

HOWEVER, THE MAX. SALES COME BY COLD CALLING DONE HOWEVER, THE MAX. SALES COME BY COLD CALLING DONE BY FSOs IN THEIR ALLOTED AREA.BY FSOs IN THEIR ALLOTED AREA.

THE ROI OF THE DSAs HAVE BEEN AFFECTED LATELY BY THE ROI OF THE DSAs HAVE BEEN AFFECTED LATELY BY THE INTODUCTION OF NEW PLANS, HENCE SOME SHOWING THE INTODUCTION OF NEW PLANS, HENCE SOME SHOWING LESS INTEREST, OTHERS WANT COMMUNICATION TO LESS INTEREST, OTHERS WANT COMMUNICATION TO INCREASE.INCREASE.

*The number of FSOs (Field Sales Officers) and TELECALLERS vary from DSA to DSA.*The number of FSOs (Field Sales Officers) and TELECALLERS vary from DSA to DSA.

66

AIRTEL – ARC STUDYAIRTEL – ARC STUDY

PAYMENT STRUCTURE – COMMISSION PAYMENT STRUCTURE – COMMISSION BASIS.BASIS.

VOICEVOICE DSLDSL

<=50<=50 400400 700700

51-7551-75 450450 800800

76-10076-100500500 900900

101<101< 600600 10001000

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AIRTEL – ARC STUDY AIRTEL – ARC STUDY (contd…)(contd…)

FSOs PER ARC – 4-7*FSOs PER ARC – 4-7*

TELECALLERS PER ARC – 2-3*TELECALLERS PER ARC – 2-3*

ARC A GOOD REVENUE GENERATING OPTION SINCE TRAFFIC IS HIGH. ARC A GOOD REVENUE GENERATING OPTION SINCE TRAFFIC IS HIGH. HOWEVER, COMMUNICATION GAP BE MINIMISED AND APPRECIATION HOWEVER, COMMUNICATION GAP BE MINIMISED AND APPRECIATION DONE TO MOTIVATE ARC OWNERS AND HENCE INCREASE SALES.DONE TO MOTIVATE ARC OWNERS AND HENCE INCREASE SALES.

SOME HAVE DEDICATED FORCE DUE TO WHICH SALES ARE ALSO SOME HAVE DEDICATED FORCE DUE TO WHICH SALES ARE ALSO HIGH.HIGH.

COLD CALLING ALSO DONE BY CERTAIN ARCs WHICH GIVES COLD CALLING ALSO DONE BY CERTAIN ARCs WHICH GIVES ADDITION TO TOTAL SALES IN A BIG WAY. ADDITION TO TOTAL SALES IN A BIG WAY.

*THE NUMBER OF FSO AND TELECALLERS ARE AS PER THE ARC NEEDS. HOWEVER IN SHIRSHA COMMUNICATION GHAZIABAD, *THE NUMBER OF FSO AND TELECALLERS ARE AS PER THE ARC NEEDS. HOWEVER IN SHIRSHA COMMUNICATION GHAZIABAD, FSOs WERE ONLY 2 IN NUMBER.FSOs WERE ONLY 2 IN NUMBER.

88

Competitors Of AirtelCompetitors Of Airtel

BSNLBSNL

RELIANCERELIANCE

TATATATA

MTNL(DELHI & MUMBAI)MTNL(DELHI & MUMBAI)

99

BSNLBSNL

ALTHOUGH BEING A GOVERNMENT ALTHOUGH BEING A GOVERNMENT ORGANIZATION IT REQUIRES DSA AND ORGANIZATION IT REQUIRES DSA AND DISTRIBUTERS FOR SELLING ITS PRODUCTS.DISTRIBUTERS FOR SELLING ITS PRODUCTS.

SERVICE IS IMPROVING IN TERMS OF CONNECTION SERVICE IS IMPROVING IN TERMS OF CONNECTION ESTABLISHING PERIOD AND BROADBAND ESTABLISHING PERIOD AND BROADBAND SERVICES.SERVICES.

NO.1 COMPETITOR OF AIRTEL WITH A DATABASE NO.1 COMPETITOR OF AIRTEL WITH A DATABASE OF OVER OF OVER 35.1 million Basic Phone 35.1 million Basic Phone subscriberssubscribers ..

AT PRESENT, AT PRESENT, 0.6 million DataOne broadband 0.6 million DataOne broadband customers.customers.

1010

RELIANCERELIANCE

COMPARITIVELY NEW IN WIRELINE BUSINESS.COMPARITIVELY NEW IN WIRELINE BUSINESS.

ACCORDING TO INFORMATION, BROADBAND ACCORDING TO INFORMATION, BROADBAND FIXED CONNECTIONS ALREADY GIVEN TO FIXED CONNECTIONS ALREADY GIVEN TO CORPORATES, NOT FOR HOME USER RIGHT NOW.CORPORATES, NOT FOR HOME USER RIGHT NOW.

PLANING TO ATTRACT CUSTOMERS BY PLANING TO ATTRACT CUSTOMERS BY LOW LOW PLANS PLANS AND AND HIGHER SPEEDS(4Mbps)HIGHER SPEEDS(4Mbps)..

NO INDIRECT MODEL IN PLACE FOR NOW FOR NO INDIRECT MODEL IN PLACE FOR NOW FOR WIRELINE, PLANNING TO DO DIRECT SELLING FOR WIRELINE, PLANNING TO DO DIRECT SELLING FOR 1-2 YEARS.1-2 YEARS.

1111

RELIANCE POSTPAID MODELRELIANCE POSTPAID MODEL

THERE ARE CURRENTLY THREE TYPES OF THERE ARE CURRENTLY THREE TYPES OF MODELS AVAILABLE TO REACH THE CUSTOMERS:-MODELS AVAILABLE TO REACH THE CUSTOMERS:-

1.1. COMPANYCOMPANY WAREHOUSE WAREHOUSE WEBWORLD WEBWORLD CUSTOMER.CUSTOMER.

2.2. COMPANY COMPANY WAREHOUSE WAREHOUSE OTC OTC WEBEXPRESS WEBEXPRESS CUSTOMER. CUSTOMER.

3.3. COMPANY COMPANY WAREHOUSE WAREHOUSE OTC OTC DISTRIBUTER DISTRIBUTER DEALER DEALER RETAILER RETAILER CUSTOMER. CUSTOMER.

1212

Reliance WiMax BroadbandReliance WiMax Broadband

DELIVERY PLATFORM:DELIVERY PLATFORM:They will install a WiMax They will install a WiMax

antenna on top of your house, just like the antenna on top of your house, just like the DTH Dish and a cable is drawn to a Modem. If DTH Dish and a cable is drawn to a Modem. If you have more than one computer to share you have more than one computer to share then you need a SOHO router to hook your then you need a SOHO router to hook your PC and Laptops. The Wimax antenna talks PC and Laptops. The Wimax antenna talks directly to Reliance Towers.directly to Reliance Towers.

The Cost Structure:The Cost Structure:Pre-launch offer - Rs 500 Installation Cost. The Pre-launch Pre-launch offer - Rs 500 Installation Cost. The Pre-launch

offer is valid through June-15th.  For residential use, the cost for offer is valid through June-15th.  For residential use, the cost for Wimax broadband is same as that of Reliance Wired Broadband. A Wimax broadband is same as that of Reliance Wired Broadband. A 150 Kbps Unlimited Data Transfer connection costs Rs 750 / Month 150 Kbps Unlimited Data Transfer connection costs Rs 750 / Month and a 300 Kbps Unlimited Data Transfer connection costs Rs 999 / and a 300 Kbps Unlimited Data Transfer connection costs Rs 999 / Month. All other taxes are additional.Month. All other taxes are additional.

1313

TATATATA

12-14 DISTRIBUTERS FOR NCR.12-14 DISTRIBUTERS FOR NCR.

NUMBER OF EXECUTIVES PER DISTRIBUTER ARE NUMBER OF EXECUTIVES PER DISTRIBUTER ARE AROUND 10AROUND 10

PAYMENT – FIXED + COMMISSIONPAYMENT – FIXED + COMMISSION (Rs.5000) (Rs.100-125)(Rs.5000) (Rs.100-125)

DISTRIBUTER HAVING MANY RETAILERS UNDER DISTRIBUTER HAVING MANY RETAILERS UNDER THEM FOR MASS REACH AND SALE OF PRODUCT.THEM FOR MASS REACH AND SALE OF PRODUCT.

1414

TATA INDIRECT CHANNELTATA INDIRECT CHANNEL

COMPANY

DISTRIBUTER

RETAILER

CONSUMER

1515

MTNLMTNL

MAJOR COMPETITOR IN DELHI AND MUMBAI.MAJOR COMPETITOR IN DELHI AND MUMBAI.

HOLDS AROUND 20% SHARE OF TOTAL ISPs.HOLDS AROUND 20% SHARE OF TOTAL ISPs.

ALTHOUGH BEING A GOVERNMENT ORGANIZATION IT ALTHOUGH BEING A GOVERNMENT ORGANIZATION IT REQUIRES DSA TO BOOST ITS SALES.REQUIRES DSA TO BOOST ITS SALES.

HAVE OVERSEAS TIEUPS WHICH HELP IT IN ITS REVENUE HAVE OVERSEAS TIEUPS WHICH HELP IT IN ITS REVENUE GENERATION.GENERATION.

MARKET SHARE OF APPROXIMATELY 13% OF THE MARKET SHARE OF APPROXIMATELY 13% OF THE INDIAN TELECOMMUNICATION NETWORK WITH A INDIAN TELECOMMUNICATION NETWORK WITH A CUSTOMER BASE OF OVER 4.74 MILLION LINES.CUSTOMER BASE OF OVER 4.74 MILLION LINES.

1616

Other Competitor ISPsOther Competitor ISPs

SIFYSIFY HOTWIREHOTWIRE HATHWAYHATHWAY BEAM CABLE SYSTEMSBEAM CABLE SYSTEMS ASIANETASIANET

1717

SIFYSIFY

OPERATES ON WIRE AS WELL AS WIRELESS (for OPERATES ON WIRE AS WELL AS WIRELESS (for backup).backup).

HAVE TIE-UP WITH OTHER COMPANIES FOR DATA HAVE TIE-UP WITH OTHER COMPANIES FOR DATA TRANSFER THROUGH CABLES.TRANSFER THROUGH CABLES.

CTOs TAKE THE LEAD AND ALSO DO CAF CTOs TAKE THE LEAD AND ALSO DO CAF FULFILMENT. FULFILMENT.

CTOs ARE ALSO RESPONSIBLE FOR LAST MILE CTOs ARE ALSO RESPONSIBLE FOR LAST MILE INSTALLATION AND LAYING DOWN THE CABLE INSTALLATION AND LAYING DOWN THE CABLE FROM THEIR END TILL CONSUMER PREMISES. FROM THEIR END TILL CONSUMER PREMISES.

*CTOs – CABLE TV OPERATORS.*CTOs – CABLE TV OPERATORS.

1818

SIFY - CHANNELSIFY - CHANNEL

TWO STRUCTURE ON WHICH THEY OPERATE :-TWO STRUCTURE ON WHICH THEY OPERATE :-

1.1. COMPANY COMPANY CTOs CTOs CONSUMER CONSUMER

2.2. COMPANY COMPANY CTO CTO DSA DSA CONSUMER CONSUMER

DSA GIVES LEAD TO CTO AFTER CAF FULFILMENT. DSA GIVES LEAD TO CTO AFTER CAF FULFILMENT. THE INSTALLATION IS DONE BY CTO.THE INSTALLATION IS DONE BY CTO.

LOW PRICING ATTRACTS CUSTOMERS.LOW PRICING ATTRACTS CUSTOMERS.

OVERHEAD CABLES – COMPROMISE ON QUALITY.OVERHEAD CABLES – COMPROMISE ON QUALITY.

1919

ADDED INFORMATIONADDED INFORMATION

TRAI has released the latest figures on Internet and TRAI has released the latest figures on Internet and Broadband subscribers in India. Broadband subscribers in India. At the end of December At the end of December 2006 their were 2.05 Million Broadband subscribers2006 their were 2.05 Million Broadband subscribers. . Last audit in August 2006 pegged the Broadband subscribers Last audit in August 2006 pegged the Broadband subscribers at 1.7 Million. In all India has 8.5 Million internet subscribers.at 1.7 Million. In all India has 8.5 Million internet subscribers.

BSNL is the largest ISP with 44.6% market share followed by BSNL is the largest ISP with 44.6% market share followed by MTNL at 19.40%. Dial-up users spend mere 3 Hours a Month MTNL at 19.40%. Dial-up users spend mere 3 Hours a Month surfing the web.surfing the web.

Total number of landline / wire line subscribers in India – Total number of landline / wire line subscribers in India – 40.51 Million 40.51 Million

Total number of Broadband [>256 Kbps] subscribers in India – Total number of Broadband [>256 Kbps] subscribers in India – 2 Million 2 Million

2020

SUGGESTIONSSUGGESTIONS

COMPETITORS DSA IS ALMOST THE SAME IN TERMS OF COMPETITORS DSA IS ALMOST THE SAME IN TERMS OF TARGETS AND COMMISION/INCENTIVES AND TARGETS AND COMMISION/INCENTIVES AND MANPOWER.MANPOWER.

ARCs ARE GOOD OPTION TO BOOST SALES AS TRAFFIC ARCs ARE GOOD OPTION TO BOOST SALES AS TRAFFIC IS GOOD AND CONVERSION LEVEL IS HIGH.IS GOOD AND CONVERSION LEVEL IS HIGH.

WHEN VISITING A SHOWROOM, CUSTOMER WANTS WHEN VISITING A SHOWROOM, CUSTOMER WANTS COMPLETE KNOWLEDGE REGARDING THE PRODUCT AND COMPLETE KNOWLEDGE REGARDING THE PRODUCT AND A LISTENING EAR.A LISTENING EAR.

RETAIL CHAIN TIE-UPS WILL BRING IN MORE SALES. RETAIL CHAIN TIE-UPS WILL BRING IN MORE SALES. HOWEVER PAYMENT SHOULD BE COMMISSION BASIS HOWEVER PAYMENT SHOULD BE COMMISSION BASIS AND SHOULD BE USED FOR LEAD GENERATION ONLY.AND SHOULD BE USED FOR LEAD GENERATION ONLY.

2121

SUGGESTIONS contd…SUGGESTIONS contd…

A DISTRIBUTER SHOULD BE ASSIGNED FOR A A DISTRIBUTER SHOULD BE ASSIGNED FOR A TERITORY UNDER WHICH DIFFERENT TERITORY UNDER WHICH DIFFERENT RETAILERS OPERATES FOR MASS REACH AND RETAILERS OPERATES FOR MASS REACH AND INCREASE IN SALES.INCREASE IN SALES.

PRODUCT TIE-UP WITH HP-COMPAQ WILL GIVE PRODUCT TIE-UP WITH HP-COMPAQ WILL GIVE BETTER RESULTS AS THEY ARE NO.1 BETTER RESULTS AS THEY ARE NO.1 COMPANY IN SALES FOR DESKTOP PCs AND COMPANY IN SALES FOR DESKTOP PCs AND LAPTOPS IN INDIA.LAPTOPS IN INDIA.

INSTALLATION MADE EASY – CHOKING ISSUES INSTALLATION MADE EASY – CHOKING ISSUES AND PILLAR INSTALATION A LIMITATION.AND PILLAR INSTALATION A LIMITATION.

2222

AIRTEL-SUGESSTED MODELAIRTEL-SUGESSTED MODELINDIRECT CHANNEL

DSA ARC

RETAILERS+TIEUPS+

TECHNOLOGYRETAIL CHAINS

DISTRIBUTERS(maybe CAF fulfillment)

SMALL RETAILERSSUB DEALERS

LEAD GENERATION +

CAF FULFILMENT

LEAD GENERATION

MASS CONSUMERS