Key Challenges for a successful

3G launch

Rajat Mukarji
Chief Corporate Affairs Officer
IDEA Cellular Limited
 3G : Global Performance

• In the past, Performance of

3rd generation technology
around the world was a
mixed bag

• But Recently 3G technology

is back in the mainstream
with more than 168
Operators* in 73 countries
around the world who have
launched WCDMA based
network

Source: World Cellular Information Services/ GSMA

Catching the attention of Operators and
Subscribers Globally
3G is catching Attention of Operators and
Subscribers Globally
 3G is catching Attention of Operators and
Subscribers Globally
Operator Country Non-Voice Revenues
as % of Total Revenues
O2 UNITED KINGDOM 33.2
ORANGE UNITED KINGDOM 21.6

TIM ITALY 21.3

T MOBILE GERMANY 20.8
ORANGE FRANCE 18
SFR FRANCE 16.3
VERIZON USA 21.1

AT&T USA 20.9

NTT DoCoMo JAPAN 32

Source: COAI
 Factors Driving 3G
Cre
d ati
ge ng
na ag
d Ma oo
dc
k an s ust
r e om
e two ervic er
exp
wN s Segmentation
Ne eri
en
ce

Products and
Distribution services
The Customer

ice
erv
er S
Ter
min

tom
als

Cus
Partners Pricing

Test, Test , Test

 Factors Driving 3G (Contd..)

Key Drivers Potential Benefits

Target Segment
Increased Market Share
Pricing and Distribution
Increased ARPU
Partnership Management
Reduced Costs
Customer Care
Increased Customer Satisfaction
Product and Services
Increased Profitability
Terminals Form
Reduced Time to Market
Customer Experience

Network Strategies
 Is 3G Important for India?
• India is primarily a voice market
• It has one of the lowest airtime tariffs in the world
• Growth in mobile services is being driven primarily by
low priced handsets, low tariffs & network expansion.
• One of the key questions being raised currently in
42%

India – Is 3G for India?

8%

• 3G likely to be used initially as a network overlay &

tool to carry traffic and then as revenue growth driver
 Is 3G Important for India?

• Spectrum Crunch
Migration of High Usage
Subscribers to 3G

• Low Cost of Voice per minute

• New Services and Applications

Why 3G in India?
42% day to day life with services
like; Telemedicine, Location
19%
8%
based services and
Entertainment

• Rural Coverage???
3G is the new Paradigm.
It presents its own set of
Opportunities and
Challenges
 3G Rollouts – Key factors
Desired Market Positioning

• Mass Market & Low differentiator mass

• Mass Market & High differentiator

Low diff High diff

• Niche Market & Low differentiator

niche

• Niche Market & High differentiator

 3G Rollouts – Key factors
Target Market Segment

• Youth

• Non-Youth

• Small Medium Enterprises

• Prosumers

• Corporates
 3G Rollouts – Key factors
Target Market Locations

• Number of Cities

• Names of the Cities

• Service area for youth in each city

• Service area for corporate in each city

• Service area for non-youth in each city

• Service area prosumers

 3G Rollouts – Key factors
Preferred 3G Services

• Voice • Audio Streaming

• SMS • Video Streaming

• MMS
• Internet Access
• WAP
• Games
• Video Telephony

• Audio/Video Clip downloads

 3G Rollouts – Key factors
Coverage Strategy

• Match 3G coverage with 2.5G

• 3G in pockets

• Carpet Coverage for Video Telephony

• Seamless coverage for 64kbps or 128kbps

• What kind of HSDPA coverage

• Indoor coverage strategy

 3G Rollouts – Key factors
Network – 3G Architecture

Core Radio Network

• Centralized RNC architecture
• Distributed RNC architecture

Transmission Network
• All IP Transmission network
• All ATM transmission Network
• Separate transmission for GSM and 3G
• ATM network
 3G Rollouts – Key factors

Terminal Strategy

• Bundling of handsets

• Handset Subsidy

• Level of Customization

• Control Sell of handsets or Continue with existing terminal

strategy

• Device Management system for better service delivery

• Terminal Test Lab for network and applications testing

 3G Rollouts – Key factors
Channel/Distribution Strategy

• Understand impact on channel/distribution processes due to

launch of 3G services

• Skilled staff at company owned showrooms and other

channels

• Impact on automated channel options

• Creation of experience centers

• Incentive schemes for various channel partners

 3G Rollouts – Key factors
Branding Strategy

• Continue with existing Brand for 3G

• Reposition brand with launch of 3G Services

• Extend existing brand for 3G services

• Separate branding option for 3G portal

 3G Rollouts – Key factors
Business Planning for 3G

• Develop Financial Model for 3G

• Revenue Model

• Capex and Opex Model

• Sensitivity Analysis
 In conclusion

Understand Customers Create Segments Develop offering Make it convenient

Find out what drives the Define a manageable Make your product/service
customers and how much number of distinct groups of Relevant Competitive easily available and easy to
they value the benefits of customers product price purchase for your
your (potential) the (potential) customers
competitors’ offerings

Correct Effective
Choose Targets channel promotion Create loyalty

Estimate attractiveness for Reward customers for usage

each segment and which and for staying with us
ones to target
Understand Competitors Create a promise

Find out what the Tell your customers what

competitors are doing, why your company stands for
they are doing it and what Choose Position
might they be doing
Increase retention

Define how you want to Give customers reasons for

offer customer value and not to leave us
Tell your customers what
differentiate from the
your products stand for
competition
Thank You