TATA Teleservices Tata Teleservices spearheads the Group's presence in the telecom sector. Committed investment of INR 36,000 Crore (US$ 7.5 billion) in telecom (FY 2008), the Group has a formidable presence across the telecom value chain. Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobile services in India with the Andhra Pradesh circle. Starting with the major acquisition of Hughes Tele. com (India) Limited [now renamed Tata Teleservices (Maharashtra) Limited] in December 2002 the company swung into an expansion mode. With the total Investment of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread across 22 circles. Partnered with Motorola, Ericsson, Lucent and ECI Telecom for the deployment of a reliable, technologically advanced network.
Mobile services Wireless Desktop Phones Public Booth Telephony and Wireline services Value added services like voice portal, roaming, post-paid Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB Modem, data cards. Product and Services
Calling card services and Enterprise services Prepaid wireless desktop phones. Public phone booths. New mobile handsets New voice & data services such as BREW games, Voice Portal, picture messaging, polyphonic ring tones, interactive applications like news, cricket, astrology, etc Product and Services
There are three types of TV-like service: Broadcast: Material from linear, continuous channels transmitted to many viewers simultaneously over a terrestrial or satellite broadcast network, rather than the mobile network. Video streams: Linear, continuous content is delivered to individual viewers over the mobile network. On-demand access: Users download material from a host server through an individual connection. Each user can watch a piece of content from the start. This type of service can offer libraries of material, including personal content.
The term "mobile TV" refers to any linear, continuous content that is streamed or broadcast over a network to mobile phones. This is often referred to as "live" or "real time" TV. Mobile TV ……
Why Mobile TV Market Network Technology allows the Live TV signals straight to customers Customer benefits a)Instant access to news, channels & entertainment (Music videos, humor) on the move. b) Never miss a program c) Individual consumption at home Partner Benefits a)Additional TV and Video on Demand (VOD) Usage. b) New revenues from short formats on demand c) Expected advertising revenues when mass market penetration acheived TATA Benefits a)Facilitate customer acquisition b) Improve ARPU from subscriptions, usage and advertising
Indian Telecom : Large Growing Penetration / Subscriber Base 140 million phones with Teledensity of (Mar. 2006) 90 million mobile phones including WLL-M (Teledensity ) 50 million fixed phones (Teledensity - 4.5) Out of 32 million phones added during last year, about 31 million are mobile phones More than 4 million subscribers added per month (growing at ~35% p.a.) No. of TVs- 100 million No. of Cable TV Connections- 62 million Internet Connections- 7.5 million (30 million 4 users per connection) Mobile devices will be the biggest mass market reach platform!
VAS - Business Share
TODAYS YOUTH: TOMORROWS MARKET The first generation in history to grow up with internet, 24 hr TV and mobile phones. Multitasking: 44 hrs of activity in a day! (Av 2-3 other tasks while watching TV)* Key needs community, self-expression, and personalization: best met through music, the Internet, and mobile devices* TV serves as a mechanism for escape and entertainment. * Yahoo!-OMD study of yr olds in 11 countries, Jul-Aug 2005 Segmentation & Targeting Youth and Business people on the move. Age group of Yrs ( Tech Savvy )
Positioning w.r.t Technology Adoption Life Cycle Time Revenue growth Innovators & Early Adopters Video on Demand One free channel of customers choice Provide free clips ( Video / music) LU EA EM LM La
Positioning w.r.t Technology Adoption Life Cycle Time Revenue growth Early Majority & Late Majority Innovate on Handsets picture quality Try and improve the network Bundled offers for handsets and services Provide free clips ( Video / music) LU EA EMLM La
Positioning w.r.t Technology Adoption Life Cycle Time Revenue growth LU EA EMLM La Laggards 1)Free usage for one month 2)Bundled products ( handsets and services)
Product – Mobile TV Mobile TV is not a substitute for traditional television - it will Complement, not replace, the media that preceded it This means different usage patterns than traditional TV - implications for programming TV snacking, not TV dinners. Around 2-3 minutes per session Different usage scenarios While commuting While commuting Watching mobile TV while waiting or queuing for something Watching mobile TV while waiting or queuing for something At work during breaks – presumably at lunchtime and coffee breaks! At work during breaks – presumably at lunchtime and coffee breaks! Watching mobile TV at home during peak time TV viewing Watching mobile TV at home during peak time TV viewing
Being the innovative technology – TATAs would go for Market Skimming. Mobile TV Handset will cost INR 15,000 – 25,000 Services Will be the combination of monthly Subscriptions and payments for individual programs : Two Types of models : Flat Rate Subscription ( Very Rare!!) Rs 500 Per month for 5-12 Channels (Upto 100MB max) Pay-per Use : An Easy Model to Launch INR 150 Subscription Charges. Download charges – Rs 5 Min or Rs 10 / MB for 5-12 Channels. Pricing Models
Other Options : Pay – Per – View or Pay – per – Content More Flexible options Eg.: View a cricket game only, subscribe to a specific channel Diversified all-you-can eat bundles Various packages including mobile TV channels.
Place & Promotion Place: Delhi, Rajasthan, Karnataka, Andhra Pradesh, Punjab and Maharashtra are amongst the top circles in VAS revenues. Hence we target Delhi, Rajasthan, Karanataka,AP,Punjab & Maharashtra Circles for launching the services. Promotions : Major Promotions will be through the following mediums: Advertising through prints ads and TV ads. Sponsorships ( College events or office seminars) Through SMSs. Through websites.
Porters Five forces Model Threat of New Entrants High Competition High Initial Investment High Gestation period Bargaining Power of Suppliers Various Chinese Manufacturers Bargaining power of customers High potential competition among service providers Threat of Substitutes Dynamic Industry. Innovation in Technology Intense competition with Reliance and BSNL
Ansoffs Product- Grid –Mobile TV Product Development New Product in India / New Application Product is already available across the globe. Diversification Market Development Market Penetration Existing ProductNew Product Existing Market New Market
Business Model Combined offering between mobile operators and Broadcasters Tata Indicom Content Provider Broadcaster Broadcast network operator Customer Content Flow (Broadcast) Content flow (interactive) Revenue Flow
Strengths and Weakness Good Quality & Strong Network. Tie up with TATA sky to provide more channels Value Added Services (VAS) like Internet on mobile etc Strong Channel Capitalisation of Brand TATA. Strengths
Customer care Weak Marketing communications High Churn. Handset Selection Weakness Strengths and Weakness
Issues and Opportunities Opportunities Consumer or Market Opportunity. Broadcaster Opportunity. Operator Opportunity. Issues Technology issues Regulatory issues
Consumer / market opportunity Forecasters numbers differ but all agree the opportunity is enormous Strategy Analytics: Mobile Broadcast TV: caution needed as the bubble grows. Hype out of proportion with consumer interest Development vendor driven Not functionality, not news/immediacy COOL is and will be the driver of all consumer technology The challenge is not to interest the consumer but to find the right mix of content and price
In India… Single TV homes counter to youth need for personalization Mobile devices enable personal space No. of video-capable handsets just over 1 mn in the US; 76 mn in India # Indian youth are ahead of the curve in adoption of new mobile applications* # eJournal USA, March 2006 * Yahoo!-OMD study of yr olds in 11 countries, Jul-Aug 2005
Broadcaster Opportunity –Extend reach: add people who are not in front of a TV –Extend prime time: making dead time alive – commuting; waiting; lunch time –Sampling: short duration content to draw audience into channel for main telecast Operator Opportunity –Falling ARPU VAS –Customer Acquisition
Issues Technology Issues: Spectrum Allocation Cost of mobile TV compatible handsets Speed of video streaming Regulatory Issues 3-G Policy for faster downloads Broadcast Law limited to cable act Broadcast content regulation and watershed policy : Will apply to Mobile TV ? IPR Laws
In Conclusion… Strategic Planning Assumptions At least 40% of subscribers will be using mobile video download and or/streaming services by 2012 ( 0.7% Probability). At least one in 10 subscribers to mobile networks will adopt mobile TV services by 2009 (0.8 probability) By 2012, 30% of mobile phones sold will support a TV broadcasting technology (0.7 probability)
Recommendations-1 TATAs should transmit programs with a broad appeal over broadcast networks, along with premium content offered on a subscription and/or pay-per-view basis TATAs should use existing 2.5G video services as a guide to overall demand, the type of content viewers like, and how much they will pay for it. Advertising should be carefully considered as a way to subsidize free-to-air content, as it may alienate some users
Recommendations-2 Content owners should sort out the rights to new media. This is a new area and there is a lot of confusion. Manufacturers should produce phones that although optimized to watch mobile TV remain primarily a phone as users that have a phone that supports TV services with them all the time will watch such services more