Airtel

Company OverviewCompany Overview

•India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. •Broadband & telephone services in 94 cities •About 79,988,675 customers •Bharti Infratel owns 42% of Indus Towers Limited.•These two top providers of passive infrastructure services in India• Approx. revenue (for the financial year 2007-08) – Rs 270,000 million

Product MixProduct Mix

•Prepaid mobile services•Postpaid mobile services•Broadband connection

•Landline phone connection•Airtel Digital TV•Calling Cards

•Wireless Internet

Airtel DTH

Airtel DTH

134 channels , customized packages

Prices : Rs 2000 to Rs 3,500 as initial installation charges. Packages differ from Rs 150 to Rs 350, per month.

USP: Interactive services, eg. iMatinee, iCity, iTravel, World Space Radio etc.

Image source:www.saveondisk.com

DigitalTV

Product & Service Quality

Feature

Brand Name

Customer Care

Market Offering

ACTUAL PRODUCT

AUGMENTED PRODUCT

CORE PRODUCT

Product Line

Packages launched in initial phase

Cost(p.a.)

ChannelsIncluded

Interactive Session

South

platinum

3,500 134 10

Platinum 3,500 126 10

South gold 2,500 108 9

Gold 2,500 104 9

South silver 2,000 74 5

Interactive Services

The new service provides new exclusive applications such as

•iMatinee (to book cinema tickets),•iLearn: is being powered by Edurite, and developed by Infosys (screencap) •iTravel (to browse and book travel packages), •iShop (to shop on TV for your favorite brands),•iCity (to get your city’s information)•iAstro: daily predictions•Widgets (to update yourself on latest stock news).•World Space Radio

Games

Beat the stress with exhaustive range of games.

All kinds of games-for teenagers to all ages games.

Rest your eyes and relax with good music from the various Radio

stationsWide range of Radio channels from

WorldSpace radio.

RADIO

Major competitors

Dish TV

168 channels,7 movie channels,21 audio channels

Price between Rs 2,490-3,990 (initial payment), Rs 100 for up to 85 channels, Rs 300 for 140 channels

USP: Free gaming portal, multilingual voice-overs coupled with astrological services and customized sports.

Major competitors

TATA Sky

150 channels

Price Rs 2,499 for initial installation; Rs 175 for 65 channels, Rs 310 for 123 channels

USP : Interactive offering like quiz, story telling, broadcast like shrines and cooking portals among other offerings

Major competitors

BIG TV

202 channels, 32 movie channels and 10 interactive channels

Price Rs 2,499 for initial installation, Rs 100 for bouquet of 44 channels, Rs 175 for a pack of 101 channels

USP: Movie channels on a monthly subscription, niche channels at low add-on charges, USB port in the set-top box

Major Competitors

SUN DIRECT

110 Channels(initially no Hindi channel)

Initial instalment of Rs.1999 with one year free subscription,Rs.75 per monthAdd-ons such as the Hindi package, the kids’ package, or the English movie package, which cost Rs 20-140 more.

USP: It’s not a rich man’s product. Low cost makes it easily available.

Major Competitor

Prasar Bharti owned DTH service which is free to air service which just need an

initial installment to buy set top box.

Market Share of Various Players

Cable Tv, 80

Dish TV, 4.4

Tata Sky, 2.2 Sun Direct, 1.3

Big Tv, 0.5

• No. of channels in the packages and value added services.

• Competitors prices in the market.• Technology used in the digitalTV service.• As per the current policy, the total foreign equity

including FDI/NRI/OCB/FII cannot exceed 49% and within this FDI component not more than 20%,so price has to be kept high for overcoming cost of expansion and thus price.

• Usage based.• ARPU is increasing unlike the telecom sectors.

PRICING STRATEGY

Inter firm rivalry very high

Price war litigation

Threat of New Entrants

DTH market is always crowded with 5 players

Bargaining power of Buyers high

Lots of options and Substitutes Price sensitive buyers

Threat of substitutes very high

Cable TV-Very High

IPTV-High

Terrestrial-very low

Bargaining power of supplier very high

Transponders-very high

CPE suppliers-low

Content-very high

ARPU in DTH services

ACo-branding

For Airtel-digital TV Airtel has collaborated with companies like

world space radio and Infosys.

•‘See You At Home Soon’ - with a dozen celebrities, the ad has been reported to be amongst the most watched ads on youtube.com, recently.•Teasers : Animated characters , viz. Masai (infotainment), Cowboy (movies), Band (music) and Meercats (kids). •DTH Services – costliest product category, these days. Estimated expenditure : Rs 8 – 10 crore per month, with a total of over Rs 40 crorespent on DTH advertising by the prominent players in the market.•The three biggest players claims that they are not competing with each other.•Marketing penetration is only 3 %, with a total of 7.5 million DTH users.

The Red Sofa

Ways To Choose A Package

•Browse ‘n’ Buy•Compare ‘n’n

Buy•Package Wizard

After Sales Services

•Recharge options are available for the digital TV which can be obtained online and from dealers.

•Customer care is available as both telephonic and e-mail help.

•Assistance is provided to operate the set top box(by installation team).

Thank You