Airtel Dth

Airtel

Company Overview Company 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 ProductMix 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.

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Customer Care

ACTUAL PRODUCT

AUGMENTED PRODUCT

Product & Service Quality

DigitalTV

CORE PRODUCT

Feature Brand Name

Market Offering

Product Line

Packages launched in initial phase Cost (p.a.)

Channels Included

Interactive Session

South platinum Platinum

3,500

134

10

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.

RADIO

Rest your eyes and relax with good music from the various Radio stations Wide range of Radio channels from WorldSpace 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 settop box

Major Competitors SUN DIRECT 110 Channels(initially no Hindi channel) Initial instalment of Rs.1999 with one year free subscription,Rs.75 per month Add-ons such as the Hindi package, the kids’ package, or the English movie package, which cost Rs 20140 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 Tata Sky, 2.2

Sun Direct, 1.3 Big Tv, 0.5

Dish TV, 4.4

Cable Tv, 80

PRICING STRATEGY • 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.

Threat of New Entrants DTH market is always crowded with 5 players

Bargaining power of supplier very high

Inter firm rivalry very high

Bargaining power of Buyers high

Price war litigation

Lots of options and Substitutes Price sensitive buyers

Transponders-very high CPE suppliers-low Content-very high

Threat of substitutes very high Cable TV-Very High IPTV-High Terrestrial-very low

ARPU in DTH services

Co-branding A 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 crore spent 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).

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