TERM PAPER

ON
TATA TELECOM

SUBMITTED TO, SUBMITTED BY,

Ms. Jaspreet Kaur Karan Wadhera
RT1803A16
10808494 (reg. no.)
 CONTENTS
 EXECUTIVE SUMMARY
 TELECOM INDUSTRY
 PORTER MODEL
 SLEPT ANALYSIS
 SEGMENTATION, TARGETING AND POSITIONING
 SUSTOMER GAPS
 QUALITY CONCERNS
 MARKETING MIX I.E. 7P’S
 SERVICE MARKET BLUEPRINT
 PRICING STRATEGY
 OTHER STRATGIES.

Executive Summary
Tata Teleservices is part of 98 co the Rs. 119,000 Crore (US$ 29
billion) Tata Group that has over mpanies, over 289,500 employees
and more than 2.9 million shareholders. With a committed investment
of INR 36,000 Crore (US$ 7.5 billion) in Telecom (FY 2006), the
Group has a formidable presence across the telecom value chain.
The company, which heralded convergence technologies in the Indian
telecom sector, is today the market leader in the fixed wireless
telephony market with a total customer base of over 3.8 million.
Tata Teleservices’ bouquet of telephony services includes Mobile
services, Wireless Desktop Phones, Public Booth Telephony and Wire
line services. Other services include value added services like voice
portal, roaming, post-paid Internet services, 3-way conferencing,
group calling, Wi-Fi Internet, USB Modem, data cards, calling card
services and enterprise services.
Tata Teleservices has a strong workforce of 6000. In addition, TTSL
has created more than 20,000 jobs, which will include 10,000 indirect
jobs through outsourcing of its manpower needs.
In this report I’m going to study the service market environment , market mix ,
segmentation of Tata telecom , quality concerns , positioning map , service
blueprint , integrated communication , pricing strategies etc.
The core aim of this term paper is to study the working of the service organization
such as Tata Telecom to develop better understanding of the working of service
organization.

TELECOM INDUSTRY
 ' Indian Telecom Industry' is the third largest and fastest growing in the
world with nearly 200 million connections.
 Subscriber growth rate is 45%
 The wireless technologies currently in use ' Indian Telecom Industry '
 Global System for Mobile Communications (GSM)
 Code Division Multiple Access (CDMA).
 There are primarily 11 GSM and 4 CDMA operators providing mobile
services in 19 telecommunication circles and 4 metro cities, covering more
than 2000 towns across the country.
 Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority
of India' (TRAI).
 Three types of players exist in ' Indian Telecom Industry ' :
 State owned companies like - BSNL and MTNL.
 Private Indian owned companies like - Reliance Infocomm and Tata
Teleservices.
 Foreign invested companies like –Vodaphone, Bharti Tele-Ventures,
Aircel, Escotel, Idea Cellular, BPL Mobile, Spice Communications
etc.

PORTER MODEL
 Threat from New Entrants
Supply Side Economies Of Scale
• declining ARPU
• Infrastructure tenancy costs
• Other FC like BPO
Demand Side Benefits
• Brand pull exists to some extent for brands like airtel /idea/ vodafone
Customer Switching Costs
• Cost of new connection low
• Proposed number portability
Capital Requirement
 • Extremely high infrastructure setup costs
• Spectrum License cost
Incumbent Advantages
 Established brand image
 Reliability of network
Restrictive Govt. Policy
 Spectrum and license allocation
 3G and Number portability policy still unclear.
 74% FDI cap.
 Minimum requirement of number of towers.
 Power of the buyer
• Lack of differentiation among the service provider
• Cut throat competition
• Customer is price sensitive
• Low switching costs
• Number portability to have negative impact

 Supplier Bargaining Power

• Large number of suppliers.
• Shared tower infrastructure.
• Limited pool of skilled managers and engineers especially those well
versed in the latest technologies.
• Medium cost of switching since changing their hardware would lead to
additional cost in modifying the architecture.
• Overall influence on the industry - medium

 Rivalry among Existing Competitors

• High Exit Barriers
 • High Fixed Cost
• 6-7 players in each region 3 out of 4 BIG-Four present in each region
• Very less time to gain advantage by an innovation (Eg. Caller tunes, life
time card)Price wars
 Threat of Substitutes
• Some Substitutes:
 VOIP (Skype, Messenger etc.)
 Online Chat
 Email
 Satellite phones
• None of the above a major threat in current scenario.
• Price-Performance trade-off very high.
• Issues of mobility and penetration with the substitutes.

SLEPT ANALYSIS
POLITICAL FACTORS
 1) Open for new entrants

2) Telecom Industry in India ' is regulated by 'Telecom Regulatory Authority of

India' (TRAI).
ECONOMICAL FACTORS

1) Contribution to the Indian economy.

2) Increasing competition resulting in low tariff cost.

4) The growth of the middle income group family affects the Telecom sector.

SOCIAL FACTORS

1) Development of cities leads to better services and communication.

2) Employment opportunities.

3) Better and improved sevices.

TECHNOLOGICAL FACTORS

1) Introduction of 3G.

2) Sharing of towers for no network problem

3) Modernisation and privatisation of the telecom industry.

4) Better network coverage.

ENVIRONMENTAL FACTORS

1) huge vast Indian market is difficult to be covered.

2) Shortage of the infrastructural capacity

LEGAL FACTORS

1) FDI limits

2) Bilateral treaties among all players in the market.

Segmentation, Targeting, positioning

• Segmentation
 Geographic Region

Density

Social Classes

Income Level

• Targeting
Company executives

Lower middle, upper middle, lower upper segment

• Positioning
Lifestyle

Benefits

Quality

Here , Tata telecom have various plans and tariff rates as per the need and requirement of various
segmentations, such as corporate plans for business people , night plans , low tariff plans for
middle and lower income group , Blackberry with their telecom service for middle and high
income group.

TARGETING MARKET SEGMENT

 FULL MARKET COVERAGE

Tata telecom is following full market coverage strategy as they have wide range of offerings for
the customers i.e. various tariff plan depending upon the segment the customer belongs to for
example the charges for the corporate plans are different from that of residential use plans.

 DIFFERENTIATED MARKETING
For full-market-coverage they are following the differentiated marketing strategy, under which
for each market segment there will be different marketing mix. For example the charges for
corporate plans are different from those of home plans and the feature are also different on the
both.

Customer GAP:-
 The service gap means the gap between expected service and perceived
service is known as customer gap. There are five kinds of gaps in customer gap.

These 5 gaps are involved in service gaps. These are as follows:-

The five gaps that organizations should measure manage and minimize:

• Gap 1 is the distance between what customers expect and what managers think they
expect - Clearly survey research is a key way to narrow this gap.
• Gap 2 is between management perception and the actual specification of the customer
experience Managers need to make sure the organization is defining the level of service
they believe is needed.
• Gap 3 is from the experience specification to the delivery of the experience -managers
need to audit the customer experience that their organization currently delivers in order to
make sure it lives up to the spec.
• Gap 4 is the gap between the delivery of the customer experience and what is
communicated to customers - All too often organizations exaggerate what will be
provided to customers, or discuss the best case rather than the likely case, raising
customer expectations and harming customer perceptions.
 • Finally, Gap 5 is the gap between a customer's perception of the experience and the
customer's expectation of the service - Customers' expectations have been shaped by
word of mouth, their personal needs and their own past experiences. Routine transaction
surveys after delivering the customer experience are important for an organization to
measure customer perceptions of service

Quality concerns customer’s point of view

There should be proper planning and implementation of control program in order to attain the
desired results for the company.

There should be regular check and improvement for the service in order to meet the customer’s
expectations.
As we know that success of any service organization depends upon how strong that
bank is in managing its employees and retaining them over the period of time to
have much better customer and employee relationship.

From the figure it’s clear that for attaining high profitability Tata telecom should
try to have customer satisfaction which can only be attained if the employees are
satisfied and they work wholly and solely for the company.
Marketing Mix 7p’s
Service blueprint
PRICING STRATEGY
They are following differential pricing strategy , they are offering varied tariff
plans from which the customers can choose as per their requirements.
POSTPAID

Postpaid allows you to choose from a variety of affordable talk plans, convenient payment

options and host of rich features. So get set to enjoy a world of limitless possibilities!

Reference Tarif Packages (RTP)

ON TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 524
Bill plan Charge Rs. 444
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 99
Tata GSM / Landline /
CDMA (10 WLL
Digit)
Local Rates Rs. 1.99 Rs 1.99 Rs 1.99
STD RATES
50 – 200 Km
200 – 500 Km
500 + Km
ISD
USA, Canda, Europe (Fixed Line), Rs. 7.20
Austalia, Singapore, Hong Kong, Thailand,
Malaysia, Indonesia, new Zealand
Gulf, Europe (Mobile), SAARC Countries, Rs 9.99
Africa & Rest of the world
Cuba, Sao tome & Principle, Guinea Rs. 40.00
Bissau, Diego Garcia, Nauru, Solomon
Islands, Vanuatu, Cook Island, Tuvalu,
Tokelau, Norfolk Island, Sakhalin
SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00

One Standard 150

ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after 24 months)

Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 50
Monthly Rental Rs. 150
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Bissau, Diego Garcia, Nauru, Solomon Islands,
Vanuatu, Cook Islands, Tuvalu, Tokelau, Norfolk
Island, Sakhalin

one Standard 299

ONE TIME CHARGES
Activation Charges Rs 250
Membership Fee Rs 250 (Converts into security after 24
months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs 299
Bill Plan Charge Rs. 150
Monthly Rental Rs. 299
Clip NA
MONTHLY CHARGES (OPTIONAL)
Clip Rs. 50
Tata GSM / CDMA Landline /
(10 Digit) WLL

LOCAL RATES Re. 1.00 Rs. 1.00 Rs. 1.00

STD RATES
50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40
200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40
500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40
ISD
USA, Canda, Europe (Fixed Line), Austalia, Rs. 7.20
Singapore, Hong Kong, Thailand, Malaysia,
Indonesia, new Zealand
Gulf, Europe (Mobile), SAARC Countries, Rs 9.99
Africa & Rest of the world
Cuba, Sao tome & Principle, Guinea Bissau, Diego Rs. 40.00
Garcia, Nauru, Solomon Islands, Vanuatu, Cook
Island, Tuvalu, Tokelau, Norfolk Island, Sakhalin

SMS
Local Rs. 1.00
National Rs. 2.00
International Rs. 5.00
Value Added Services (Rs.) Rs. 3.00
You also enjoy 25 FREE local mobile to mobile SMS

Senior Citizen Plan

ONE TIME CHARGES
Activation Charges Rs. 250
Membership Fee Rs. 250 (Concerts into security deposit
after 24 months)
Security Deposit NA
MONTHLY CHARGES (FIXED) Rs. 150
Bill Plan Charge Rs. 51
Rs. 99
Monthly Rental
Clip NA
Cuba, Sao Tome & Principle, Guinea Bissau, Diego
Garcia, Nauru, Solomon Islands, Vanuatu, Cook
Islands, Tuvalu, Tokelau, Norfolk Island, Sakhalin

SMS
Local
Rs. 1.50
National Rs. 2.00
International Rs. 5.00
VAS Rs. 3.00
With Senior Citizen Plan

STRATEGIES

Product Offer a basic product/ Offer value added Increase in number of

service. services value added services.

Price Charge cost- plus Price to penetrate Price to match or best

market competitors

Distribution Build selective Build Intensive Build more intensive

distribution distribution. distribution.

Advertising Build product awareness Build awareness and Stress brand differences

among early adopters interest in the mass and benefits.

and dealers. market

Sales Promotion Use heavy sales Increase to build and Increase to encourage

promotion to entice maintain relationships brand-switching.

people to subscribe. with customers.