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.

Product and Services
 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

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.

Mobile TV ……
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.

Market
Customer benefits
Partner
Benefits
TATA
Benefits
Why Mobile TV
Network Technology allows the Live TV signals straight to customers a) Instant access to news, channels & entertainment
(Music videos, humor) on the move.
b) Never miss a program c) Individual consumption at home 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 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 12.75 (Mar. 2006)
• 90 million mobile phones including WLL-M (Teledensity -
8.25)
• 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 users @ 4 users per connection)
Mobile devices will be the biggest mass market reach platform!

Ringtones,
21%
VAS - Business Share
Games,
6%
Voice Based,
11%
Wallpapers,
5%
Text Based ,
31%
CRBT,
26%

Segmentation & Targeting
Youth and Business people on the move.
Age group of 18-34 Yrs ( Tech Savvy )
TODAY’S YOUTH: TOMORROW’S 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 13-24 yr olds in 11 countries, Jul-Aug 2005

Positioning w.r.t Technology Adoption Life Cycle
Innovators & Early Adopters
• Video on Demand
• One free channel of customers choice
• Provide free clips ( Video / music)
LU
EA
EM
Time
LM
La

Positioning w.r.t Technology Adoption Life Cycle
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
EM
Time
LM
La

Positioning w.r.t Technology Adoption Life Cycle
Laggards
1) Free usage for one month
2) Bundled products ( handsets and services)
LU
EA
EM
Time
LM
La

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
 Watching mobile TV while waiting or queuing for something
 At work during breaks – presumably at lunchtime and coffee breaks!
 Watching mobile TV at home during peak time TV viewing

Devices…….

Pricing Models
Being the innovative technology – TATA’s 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 SMS’s.
 Through websites.

Porters Five forces Model
Threat of New Entrants
 High Competition
 High Initial Investment
 High Gestation period
Bargaining power of customers
 High potential competition among service providers
Bargaining Power of
Suppliers
 Various Chinese
Manufacturers
Intense competition with
Reliance and BSNL
Threat of Substitutes
 Dynamic Industry.
 Innovation in Technology

Ansoff’s Product- Grid –Mobile TV
Existing Product New Product
Market Penetration Product Development
 New Product in India / New Application

Product is already available across the globe.
Market
Development
Diversification

Business Model
Combined offering between mobile operators and
Broadcasters
Content Provider
Broadcaster
Tata Indicom
Broadcast network operator
Content Flow
(Broadcast)
Content flow
(interactive)
Customer
Revenue Flow

Strengths and Weakness
Strengths
• 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 and Weakness
Weakness
• Customer care
• Weak Marketing communications
• High Churn.
• Handset Selection

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 13-24 yr olds in 11 countries, Jul-Aug 2005

– 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
– 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
• TATA’s should transmit programs with a broad appeal over broadcast networks, along with premium content offered on a subscription and/or pay-per-view basis
• TATA’s 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