Final submission

PROJECT REPORT ON

JOINT VENTURE WITH RESPECT TO TATA DOCOMO

SUBMITTED BY

SIDDHESH GOAD

T.Y.B.M.S.

2012 - 13

PROJECT GUIDE

MS ARCHANA DIMBLE-BAGAL

SUBMITTED TO

UNIVERSITY OF MUMBAI

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

(AFFILIATED TO UNIVERSITY OF MUMBAI)

VIDYALANKAR MARG, WADALA (E),

MUMBAI 400 037

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A Project Report on

JOINT VENTURE WITH RESPECT TO TATA DOCOMO

Submitted By

SIDDHESH GOAD

T.Y.B.M.S Semester V

2012 - 13

Submitted To

University of Mumbai

Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)

Vidyalankar Marg, Wadala (E),

Mumbai 400 037

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VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
(Affiliated to Mumbai University)

Certificate
This is to certify that
Mr./Ms. _________________________________ of B.M.S
Semester _____ has undertaken & completed the project work titled
______________________________ during the academic year
__________ under the guidance of Mr./Ms. _______________
submitted on _________ to this college in fulfillment of the curriculum of
Bachelor of Management Studies, University of Mumbai.

This is a bonafide project work & the information presented is True &
original to the best of our knowledge and belief.

PROJECT COURSE EXTERNAL PRINCIPAL

GUIDE CO-ORDINATOR EXAMINER

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DECLARATION

Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)

Vidyalankar Marg, Wadala (E),

Mumbai 400 037

I SIDDHESH GOAD of Vidyalankar School of Information Technology, T.Y.B.M.S
Semester V hereby declare that I have completed the project on JOINT VENTURE
WITH RESPECT TO TATA DOCOMO in academic year 20012 – 13.

The information submitted is true and original to the best of my knowledge.

Signature of the Student,

SIDDHESH GOAD

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ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me to draft the
project report. It would not have been possible for me to complete the task without their
help and guidance

First of all I would like to thank the principal Dr. Rohini Kelkar Madam and the
coordinator Prof. Vijay Gawde Sir who gave me the opportunity to do this project work.
They also conveyed the important instructions from the university from time to time.
Secondly, I am very much obliged of Prof. Ms Archana Dimble-Bagal for giving
guidance for completing the project

Then I must mention the person who co-operated with me. They not only
rendered time out of their busy scheduled but also answered my queries without
hesitation. He/ She gave me information on their system of working in their organization
and told me how Promotional Strategies are done in their organization.

Last but not the least, I am thankful to the University of Mumbai for offering the
project in the syllabus. I must mention my hearty gratitude towards my family, other
faculties and friends who supported me to go ahead with the project.

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EXECUTIVE SUMMARY

JOINT VENTURE

A joint venture is generally understood as technical and financial collaboration
either in the form of Greenfield projects, take- over or alliances with existing
Companies.

In India, no legal definition as such has been given to joint ventures. Indian joint
ventures usually comprise two or more individuals/companies, one of whom may
be non-resident, who come together to form an Indian private/public limited
company, holding agreed portions of its share capital.

A joint venture agreement primarily provides for the manner in which the
shareholders of the joint venture company may transfer or dispose of their
shares. It is also commonly referred to as a shareholders‘ agreement.

Telecommunication sector. Telecommunication Industry is basically complex and
fastest growing industry. The industry observes the maximum competition in
terms of customer retention and better service.

TATA DOCOMO‘s Service Point model offers the solution to the problem.

The project covers the operational aspects of operating the large number service
points smoothly and 3G auctions, the various activities that TATA DOCOMO
plans for the customer satisfaction and customer delight.

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INTRODUCTION TO THE STUDY
Aim of doing the project:

 To Implement the management study and understand them better in the way of
our project.

The objectives of this study/project as follows:

 To study the schemes and services provided by Tata Docomo.
 To study the various tariffs charged by Tata Docomo.
 To study the unique features and services offered by Tata Docomo.
 To perform a SWOT analysis of TATA Docomo.
 To know the impact of promotional activities on the purchasing behavior of the
buyer.
 To study the Customer satisfaction level regarding the services provided by Tata
Docomo.

RESEARCH METHODLOGY

PRIMARY DATA:

 Data collected from sample of 200 people in Ratnagiri involved in different
professions by questionnaire method.

 Data collected by visiting Tata Docomo Retail Shop (Roopraj Telecom).

SECONDARY DATA:
 Data Collected from Internet.

 Information received from various pamphlets, brochures and journals of Tata
Docomo.

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LIMITATION

 Sample size was restricted to Ratnagiri city as it was difficult to approach people
outside that because of time constraint. So sample size was limited.

 Improper decision- many respondents could not have sufficient time to answer/ fill
the questionnaire.

 Inadequate information- some of the questions were not answered/ filled properly
or accurately.

 Project study was conducted only for 3 months June to September 2011

Limitation of the study:

 The study was limited to Tata Docomo prepaid mobile user only.

 The study was limited only to know the level of satisfaction of the prepaid Tata
customer and no further action was taken to make them satisfied if they were not
satisfied.

 The study was limited to only few days so each and every aspect of satisfaction
could not be covered.

 The management did not disclose the confidential data.

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INDEX / CONTENT

Sr.no Topic Page
No.
1. Company Profile
2. History
3. Customer Satisfaction
4. Marketing Strategy
5. Availability
6. Plans
7. Competitors Analysis
8. SWOT Analysis
9. Growth of Telecom

10. Advertising and its Impact for Tata
Docomo
11. Buying Preference Celebrity Promotion

12. Article By Times Of India
13. Statement Of The Problem
14. Technology Acceptance Model (TAM)

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15. Data Analysis
16. Case Study
17. Findings
18. Recommendation
19. Conclusion
20. Annexure
21. Bibliography

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COMPANY PROFILE

TATA DOCOMO is Tata Teleservices Limited's TTSL telecom service on
the GSM platform arising out of the Tata Group's strategic alliance with Japanese
telecom major NTT DOCOMO in November 2008. Tata Teleservices has received a
pan-India license to operate GSM telecom services, under the brand TATA
DOCOMO and has also been allotted spectrum in 18 telecom Circles. TTSL and has
already rolled out its services in various circles.

The launch of the TATA DOCOMO brand marks a significant milestone
Indian telecom landscape, as it stands to redefine the very face of telecoms in India.
Tokyo-based NTT DOCOMO is one of the world's leading mobile operators-in the
Japanese market, the company is clearly the preferred mobile phone service provider
with a 50 percent market share.

NTT DOCOMO has played a major role in the evolution of mobile
telecommunications through its development of cutting-edge technologies and
services. Over the years, technologists at DOCOMO have defined industry
benchmarks like 3G technologies, as also products and services like the i-mode TM,
mobile payment and a plethora of lifestyle-enhancing applications. Today, while most
of the rest of the industry is only beginning to talk of LTE technology and its possible
applications, DOCOMO has already started conducting LTE trials in physical
geographies, not just inside laboratories!

DOCOMO is also a global leader in the VAS (Value Added Services) space,
both in terms of services and handset designs, particularly integrating services at the
platform stage. The Tata Group-NTT DOCOMO partnership will see offerings such as
these being introduced in the Indian market under the TATA DOCOMO brand.

TATA DOCOMO has also set up a 'Business and Technology Cooperation
Committee, comprising of senior personnel from both companies. The committee is
responsible for identification of the key areas where the two companies will work
together. DOCOMO, the world‘s leading mobile operator will work closely with Tata

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Teleservices Limited management and provide know- how on helping the company
develop its GSM business.

Despite being a late entrant, Tata Indicom, TTSL's CDMA brand, has already
established its presence and is the fastest-growing pan-India operator. Incorporated
in 1996, Tata Teleservices Limited is the pioneer of the CDMA 1x technology
platform in India. Today Tata Teleservices Limited, along with Tata Teleservices
(Maharashtra) Ltd, serves over 37 million customers in more than 320,000 towns and
villages across the country offering a wide range of telephony services including
Mobile Services, Wireless Desktop Phones, Public Booth Telephony and Wire line
Services.

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HISTORY

Tata Teleservices Limited now also has a presence in the GSM space,
through its joint venture with NTT DOCOMO of Japan, and offers differentiated
products and services under the TATA DOCOMO brand name. TATA DOCOMO
arises out of the Tata Group‘s strategic alliance with Japanese telecom major NTT
DOCOMO in November 2008. TATA DOCOMO has received a pan-India license to
operate GSM telecom services and has also been allotted spectrum in 18 telecom
Circles. The company has rolled out GSM services in 14 of India‘s 22 telecom Circles
in a quick span of under six months. The company plans to launch pan-India
operations by the end of FY 2009-10.TATA DOCOMO marks a significant milestone
in the Indian telecom landscape, and has already redefined the very face of telecoms
in India, being the first to pioneer the per- second tariff option-part of its ‗Pay for What
You Use‘ pricing paradigm. Tokyo-based NTT DOCOMO is one of the world‘s leading
mobile operators-in the Japanese market, the company is the clear market leader,
used by over 50% of the country‘s mobile phone users.

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Corporate Philosophy

With the aim of creating a new world of communications culture, we NTT
DOCOMO will devote all the skills, know-how and energy towards the establishment
of more "personal communication" with our customers that contribute to their heartfelt
satisfaction.

A New World of Communications Culture

More personal communication

 Reliable access
 Real time access
 E-communication One-to-one ―personal
 This gives birth to a new world of communications culture
 Freedom to enjoy communications anytime, anywhere with anyone
 Opening of endless lifestyle horizons

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To achieve this

In order to create a world of more innovative and enriched communications, we
will improve service quality, aggressively move forward with the development of
various services. We will also research and develop a more advanced user-friendly
communications interface, and at the same time we will provide these services and
technologies to an ever expanding area.

Customer Satisfaction:

 Communications those are always ready when needed.
 Capability to contact whomever, from wherever and whenever the customer
desires.
 Happiness that comes from heart-to-heart communications.
 Bringing customers another step closer to realizing their dreams.
 Responding to every customer with consideration, courtesy and thoroughness.
 Providing products that give customers easy and convenient access to cutting-
edge functionality.

To achieve this

 First and foremost, we will fulfill expectations of customers by fulfilling our
response to their needs through improved service quality, building original
networks, enriching functionality and expanding the service area. In addition, by
providing an expanding and ever-improving selection of services at inexpensive
rates, we will deliver satisfaction to a growing diversity of customers.

 Making the most of the talents of each individual in our company.

 Respect for the individuality and sense of values that are unique to each person.
 Enable internal corporate communication to flow free from vertical and horizontal
organizational barriers.
 Make the most of the ideas of each individual.

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 Foster a corporate culture that is not restricted by conventional thinking and
systems.
 Create a creative office environment that supports the fulfillment of the individual.
 Fostering an "open" corporate culture that welcomes the ideas and views of the
individual.
 Evaluate personnel based on their merits.
 Build a company that overflows with a challenging spirit.

To achieve this

By improving our system and programs for the enhancement of human
resources and unifying our human resource development, we will empower each
individual to exert their skills to the utmost of their capabilities and discover new
potential. At the same time, we will strive to create a workplace that motivates
individuals through measures such as improvement of the working environment and
labor conditions and enhancement of health and welfare benefits.

VISION

We will leverage our strength in executing complex global scale projects
to make leading edge information and communication services affordable by all
individual consumers and business in India. We will offer unparalleled value to create
customer delight and enhance business productivity. We will also generate value for
our capabilities beyond Indian borders while enabling millions of India‘s knowledge
workers to deliver their services globally.

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STATISTICS

 Third largest telecom network in the world.
 Largest operator in INDIA is BSNL.
 INDIA‘S mobile market is the fastest growing market in the world.
 World‘s leading Japan based Telecom Company.
 Over the years technologies of DOCOMO has defined industry bench marks
like 3G technology.
It is the global leader in value added services.
 TATA telecom Incorporated in 1996.

 Tata Teleservices is the pioneer of the CDMA 1x technology platform in
India. Deep involvement in the launch of 3G has inspired us to create an
infrastructure that will allow people and all kinds of objects to communicate a
wealth of information. Extended systems will link the home, the office and
any number of other locations to bring greater convenience to all aspects of
everyday life. For the future, it is our aim to incorporate information gathered
by all five senses to achieve an array of services far beyond anything
envisaged to date.
 NTT DOCOMO is already making rapid progress in such areas through a
wide range of innovative research, building expertise and techniques as we
move forward towards exciting new business opportunities.
 Innovating dreams
 Our goal is to create a broad array of exciting new services. Services that will
bring undreamed-of convenience to people everywhere.
 In addition to Audio Barcodes and 3D Display System introduced in this
website, cutting edge technologies beyond the imagination are already under
development. These include a system that makes distant objects feel like an
extension of the human body for ultra realistic experiences, and advanced
chips that will allow items such as household appliances to communicate.
What's more, we are actively realizing 4G technology such as MIMO
(Multiple-Input-Multiple-Output) multiplexing technology and a wireless

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access communications system, as well as contributing to the establishment
of specifications for global standardization.
 Researchers at NTT DOCOMO have a clear vision of the future. A future that
will unite all of the above advances and many more, to create a world where
people can communicate at a higher level, regardless of time and space

 Telecom industry in India is dominated by major companies like Airtel,
Vodafone in GSM services.

 Competition is very intense due to low differentiation.
 India ended March this year with 391.76 million mobile lines and tele density
is around 36.98.

 Airtel enjoys 33.9%, Idea 11.6% Vodafone 19.6 and Tata CDMA has 7.2% of
market share respectively.
 PRICE
It having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is
applicable for both prepaid and postpaid

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Disruptive Innovation in the Indian Telecom Industry by Tata Docomo

Wikipedia defines disruptive innovation as an innovation that improves a
product or service in ways that the market does not expect, typically by being lower
priced or designed for a different set of consumers.
Indian Telecom space was ―Disrupted‖ by Tata Docomo when they came
out with a ‗1 paisa per second‘ tariff.
We have earlier seen how Reliance India Mobile changed the mobile
industry by coming up with the lowest tariff in the beginning of this decade. The call
charges were around Rs 2-3 per minute and because of Reliance this was brought
down to around Re 1 per minute.
Tata Docomo was the next one to employ disruptive innovation in the
Indian mobile industry. Currently the game is not played on the price front but Value
added services front, which is evident from the advertisements of Airtel (Madhavan
and Vidya Balan) and Vodafone (Zoozoos) in the past.
If Aircel is redefining how telecom operators approach value added
services and GPRS in India, Tata Docomo is doing its bit to change billing practices.
The joint venture between Tata Teleservices and Japanese telecom major
NTT Docomo officially began rollouts with a plan to invest $2 billion for its pan-India
GSM services.

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Customer Satisfaction

The 21 century belongs to the service sector. The customer of yester
year was a silent person who uncomplainingly purchased the goods from the market
place. There is a new customer emerging today. Customer satisfaction can be
defined as, customer satisfaction is the feeling derived by the consumer when he
compares the actual performance of the product‘s with the performance that he
expects of it.

The measurement of the customer satisfaction typically begging when a
company realizes that their customer s is the people, who provide the revenues that,
hopeful, will cover expenses. Most companies start by establishing a customer
satisfaction baseline. Then they target year by year improvement.

Understanding customer requirement and delivering superior quality goods
and services to achieve composer satisfaction lead to the retention and growth of the
customer.

General Idea about the satisfied customer:

Satisfaction is a persona‘s feeling of the pleasure or disappointment. It is
resulting from comparing a product‘s perceived performance with his or her
expectations from it. Satisfaction is more of an emotional concept. Today
organization are aiming at high satisfaction rather than at customer delight because
customers who are

just satisfied still find it easy to switch over when a batter offers comes along. Those
who are highly satisfied are much less ready to switch over. High satisfaction or
delight creates an emotional bound with the brand and customer starts looking at an
offering emotionally and just rationally.

The aim of marketing is to meet and satisfy target customers needs and
wants but knowing customer is never simple. Customer may state their needs and
wants but act otherwise. They may not be in touch with their deeper motivations.

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They may respond to influential to change their mind at the last minute. Some of
today‘s most successful companies are raising expectation and delivering
performances to match. These companies are aiming at TCS- Total customer
Satisfaction.

Increasing competition (whether for-profit or nonprofit) is forcing businesses
to pay much more attention to satisfying customers. In a competitive marketplace
where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy.

Customer Loyalty:

 These four factors will greatly affect your ability to build a loyal customer base:

 Products that are highly differentiated from those of the competition.

 Higher end products where price is not the primary buying factor.

 Products with a high service component.

 Multiple products for the same customer.

 Loyal Customers and Loyal Workforces

Building customer loyalty will be a lot easier if you have a loyal workforce not
at all a given these days. It is especially important to retain those employees who
interact with customers such as sales people, technical support, and customer-
service people. Many companies give a lot of attention to retaining sales people but
little to support people.

The increasing trend today is to send customer service and technical support
calls into queue for the next available person. This builds no personal loyalty and
probably less loyalty for the firm. Before going this route, be sure this is what your
customers prefer.

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Instant Feedback:

Recently, many organizations have implemented feedback loops that allow
them to capture feedback at the point of experience. For example, National Express,
one of the UK's leading travel companies invites passengers to send text messages
whilst riding the bus. This has been shown to be useful as it allows companies to
improve their customer service before the customer defects, thus making it far more
likely that the customer will return next time.

Listen to your customers:

Is there anything more exasperating than telling someone what you want or what
your problem is and then discovering that that person hasn‘t been paying attention and
needs to have it explained again? From a customer‘s point of view, I doubt it. Can the
sales pitches and the product babble. Let the customer talk and show them that you are
listening by making the appropriate responses, such as suggesting how to solve the
problem.

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MARKETING STRATEGY

Tata Docomo appears to be banking heavily on its tariff plans the company
is offering a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators are offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused seconds.
A nifty little application ―How much can you really save‖ on Docomo‘s website
explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and
Rs. 0.49/min charges that usually applies.

MARKETING MIX

4P‟S OF MARKETING MIX:

 Product

 Price

 Place

 Promotion.

PRODUCT:

TATA DOCOMO having good range of services. Tata Docomo provides both
postpaid and prepaid services. Tata Docomo having good quality network which
provides clarity in voice.

PRICE: It
having attractive tariff plan: TATA DOCOMO having 1paisa /sec it is applicable for
both prepaid and postpaid.

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PLACE: It
is having good range of channels of distribution: As Tata already exist in this field of
telecommunications as Tata Indicom. It has wide range of channels of distribution to
sell TATA DOCOMO services.

PROMOTION:
Advertising: TATA DOCOMO following different style of advertising pattern in TV
‗and newspapers. Due to that reason it was reaching public very fast.

TATA DOCOMO PRICING STRATEGY

Tata Docomo appears to be banking heavily on its tariff plans the company
offers a 1 second pulse instead of the usual 1 minute pulse that other telecom
operators were offering. This means that consumers are charged on a per second
basis, instead of a per minute basis, and end up saving money on unused seconds.
A fifty little application ―How much can you really save‖ on Docomo‘s website

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explains how this works. Rs. 0.01/second is a marked change from the Re 1/min and
Rs. 0.49/min charges that usually apply.

Now while this plan might sound unique, it isn‘t that it hasn‘t been tried before
back in 2004, Tata Indicom had launched 1 second pulse plans, which going by their
current plans, appears to have been shelved.
At present, Tata Docomo has launched voice portals, 24-hour music, cricket
commentary and voice chat, apart from offering free Missed Call Alerts and Voice
Mail.

Interestingly, voice based services are also being priced with a per-second-
pulse: 24 hour music and voice chat are priced at Rs. 0.02/second. Caller Tune
search service ‗Genie‘ is also being priced at Rs. 0.02/second. This is a marked
change, again, from the per minute pricing, and can offer consumers cheaper
options.

An initiative that has taken the service provider industry by storm
The pay per second model has really paid off well for the latest entrant in
the Indian GSM space, Tata-Docomo. The new pricing strategy from Tata-Docomo
has changed the rules of the GSM game, which is dominated by AirTel and
Vodafone. Tata-Docomo also launched its first mobile handset in September 2010.

Mobile pricing innovation – Tata Docomo now charges per website for Mobile
Browsing!
This is surely a first world over – Tata Docomo have gone ahead and
launched an innovative mobile Internet offering which allows users unlimited usage of
their favorite websites on mobile for a fixed cost.
Tata Docomo has been forefront in coming up with various attractive pricing
schemes, especially, in the pay-per-use paradigm. They were first to introduce pay
per second billing on calls, which now is followed by every mobile service provider.

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They followed it with pay-per-minute and pay-per-call pricing plans as well which has
made them one of the fastest growing Mobile companies in India.
The new pay-per-website offering however, takes it to a complete
different level and unheard of pricing strategy. This is a very thoughtful strategy and
something which has potential to growth rapidly. Tata Docomo pricing strategy.

Pay per site offer two combination:
Those only interested in single websites need to pay Rs 10 per site
Those with multiple site browsing needs can opt for a combo pack at just Rs 25 per
month.
Customers have a bundle of options within various categories of social
networking sites (Facebook, Twitter, and Linked In, Orkut), mail options (Gmail,
Yahoo, Rediff) and chat messengers (GTalk, Yahoo! Messenger, Nimbuzz).
Having said this, there is also a caveat – If you thought it was valid for
unlimited use…it is not.
Tata Docomo pay per site plan categorizes each service under 2 different
genres – Social Networking Site and Emailing & Instant Messaging. Each site under
this genre is priced at Rs. 10/- bundled with 200 MB free data usage valid for 30
days, post which customers will be charged at 1p/kb. There are also 2 Combo
options SNS Combo Pack and Emailing Combo Pack and each Combo Pack is
priced at Rs. 25/- bundled with 500 MB free data usage post which the customers will
be charged 1p/kb.
We have been quite impressed the way Tata Docomo have gone about
their innovative pricing models as well as marketing strategies.

“Per Character” SMS Pricing
On 8th September 2009, the GSM branch of the Indian carrier Tata
introduced a novel pricing strategy for text messaging. Under the brand ―Diet-SMS―,
Tata-DOCOMO bills its customers ―by-the-character‖, rather than on a per message
basis.

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It is a very attractive marketing scheme, since many wireless subscribers,
almost by habit, tend to pepper their text messages with abbreviations and acronyms.
Under the new plan, Tata-Docomo charges “one paisa per character”.
For example, a text which reads ―tnx‖ (for ―thank-you‖) is charged at 3paise instead of
the normal sms charge.

The Impact
Tata Docomo has gathered significant market share, owing to its pricing
strategies.
Existing mobile operators are matching the price and the clear winners are the
subscribers since all the competition is sending the prices downhill.
Tata Docomo pricing strategy.

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ADVERTISING MEDIA CHANNELS

India Tata Docomo, the youngest among telecom players in India to
offer GSM, is Presently banking on its services to garner visibility and a share in the
telecom pie. The launch of Tata Docomo also announced the intention of the brand to
associate with the thought 'do'. Tata Docomo, for the first time in the country, offered
pay-per-second billing; though other telecom providers have followed suit since. The
company has carried out a few adverts that highlight the brand's unique features and
some other topical advertising during Ganesh Chaturthi and Diwali. The latest from
the GSM provider is the 'Friendship Express' TVC. The ad opens inside train, where
everyone is doing their own thing. A couple of the travelers don't like the solemn
mood and start humming the Docomo tune. Slowly and steadily, others pitch in and
soon most of the train is singing along. The ad ends with the super, 'Why walk alone
when we can dance together'.

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Tata Docomo launched „ Keep it Simple‟ campaign with Rabir Kapoor!

Cutting through the clutter that the Indian telecom landscape finds itself in
with customers forced to jostle with confusing and complicated products, services
and tariff plans Tata DOCOMO is ‗Doing the New‘ again, with the launch of its new
brand campaign, aptly titled ‗Keep It Simple‘. Tata DOCOMO‘s unique Keep It
Simple Campaign is in a form of a stand-up comedy show with many episodes,
which will be aired during the course of this IPL season. It focuses largely on how
Tata DOCOMO simplifies the telecom experience, and hence the consumer‘s life, by
providing differentiated products and services. Each individual advertisement starts
by illustrating a complexity in the category, and presents the Tata DOCOMO product
and/or service as a means of simplifying things. This campaign is simple, captures
the various moods of Ranbir depicting those of Tata DOCOMO

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Advertisement strategy

Tata DOCOMO ropes in Ranbir Kapoor as brand ambassador

NEW DELHI: Tata Docomo, the GSM brand of Tata Teleservices (TTSL), today
appointed Bollywood star Ranbir Kapoor as its brand ambassador.

The company has inked a two-year contract with Kapoor and will roll out
various televisions, print and outdoor campaigns with the actor, starting with the
upcoming Indian Premier League (IPL) tournament.

"We think Tata Docomo is an inspirational brand and so is the charm and
personality of Ranbir Kapoor, so it is a great match. We will leverage him in various
campaigns to build the brand further," TTSL Head Corporate Marketing Gurinder
Singh Sandhu told PTI.

Tata DOCOMO will undertake various marketing initiatives with Ranbir
Kapoor, including television commercials, print campaigns, outdoors and retail front
displays, he added.

The company will introduce its new campaign during the IPL tournament,
which kicks off on April

According to media analysts, Tata Docomo is expected to spend in excess
of Rs 50 crore for the 360-degree campaign during the IPL season.

Other telecom operators like Bharti Airtel, Idea Cellular and Reliance
Communications have also appointed Bollywood stars as their brand ambassadors.
While Airtel has worked with Shahrukh Khan, Saif Ali Khan and Kareena
Kapoor, Idea Cellular has Abhishek Bachchan as its ambassador. Reliance
Communications has worked with Hrithik Roshan.

Vodafone, on the other hand, has found success with its 'Zoozoos', the egg
shaped cartoon characters featured in its ad campaign.

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Market Competitors of Tata Docomo:

 Airtel

 Reliance Communication

 BSNL

 Idea

 Aircel

 Vodafone

SERVICES & NETWORK AVAILABLE

 Currently, Tata Docomo mobile services available in these following
circles:

 Bihar & Jharkhand

 Tamil Nadu

 Orissa

 Andhra Pradesh

 Karnataka

 Kerala

 Kolkata

 Maharashtra & Goa

 Madhya Pradesh

 Chhattisgarh

31

 Haryana

 Chennai

 Eastern Uttar Pradesh

 Western Uttar Pradesh

 Punjab

 Rajasthan ,Recently Launched Aand Rest of West Bengal, Recently
Launched.

32

PLANS

Tata DOCOMO Daily Plans. When every
day is different, why have a fixed plan? A
brand new day calls for a brand new
plan. Choose from Daily plans on local,
STD, Night calling, GPRS & Music and
make your own Daily Plan.

Benefits:

Anytime purchase
Minimal cost
Ease of process

How to subscribe:

Dial *141# and choose from Daily plans on local, STD, Night calling, GPRS & Music.

33

Product options:-

Daily Rental Packs (Rs.2) Weekly Rental Packs (Rs.10)

All local at 1p/2sec All local at 1p/2sec
STD at 3p/4sec STD at 3p/4sec
Local Night On-net at 1p/10sec Local Night On-net at 1p/10sec
Local On-net at 1p/6sec Local On-net at 1p/6sec
USA/Canada & UK(F) at 3p/sec USA/Canada & UK(F) at 3p/sec
Gulf at 11p/sec Gulf at 11p/sec
All local & National SMS at 1p All local & National SMS at 1p

Talk More
Night Talk
30 local minutes @ Rs.5 on
Now converse through the night.
Tata DOCOMO Network.
60 Free Local Night minutes on
30 local minutes @ Rs.12 across
Tata DOCOMO Network.
Networks.
30 Free local On-net minutes @ Rs.3
30 local/National minutes @ Rs.14 20 Free local minutes @ Rs.5
10 Local/National minutes @ Rs.5

a. GPRS

World Calling
10MB Free Browsing @ Rs.5 only.

34

10 minutes to USA/Canada @ Rs.20
5 minutes to USA/Canada @ Rs.10

a. Entertainment a. Cricket

15 minutes FREE music @ Rs.5 Cricket Alerts @ Rs.5/day

Terms and Conditions:

 Daily implies active till 12 midnight on the same day of pack activation. Ex: A
subscriber activated the pack on 25th Feb'10 then the pack with daily validity will
expire at midnight of 25th Feburary'10#.
 In case on night packs the expiry of the pack will be 7 am of the next day of activation
of the pack. Ex: A subscriber activated the night pack on 25 th Feb'10 then the pack
with daily validity will expire at 7 am of 26th Feburary'10#.
 The pack will get activated maximum within 2 hrs of request receipt on the system.
You will get an automated confirmation SMS once the same is configured on our
systems.
 You can activate multiple packs in a day.

35

Pay Per Site Packs:-

Pay Per Site Type MRP(Rs.) Validity GPRS free
(Days) Usage

Combo Packs

Mail Combo Mail 25 30 500MB

‗Social Networking Sites‘ SNS 25 30 500MB
Combo

Mail Packs

Gmail+GTalk Mail 10 30 200MB

Rediffmail Mail 10 30 200MB

Yahoo Mail Mail 10 30 200MB

+

Yahoo Messenger

'Social Networking Sites‟ Packs

Facebook SNS 10 30 200MB

Twitter SNS 10 30 200MB

LinkedIN SNS 10 30 200MB

Orkut SNS 10 30 200MB

Nimbuzz SNS 10 30 200MB

36

SMS offers:

 Pay for the First 3 Local SMS everyday and get the next 150 Local SMS free for the
day

 Pay for the First Local/ National SMS everyday and get the next 100 Local/ National
SMS free for the day

 Pay for the First 3 Local SMS everyday and get the next 750 Local SMS Free for
day Pre-STD, ISD and National Roaming without rental.

 Automatic alerts when your Balance is Low.

37

Competitor Analysis

The competition has intensified the past few months with new players and
schemes coming in. There has never been a better time for the customer to get a
mobile phone connection

There are at least six if not more operators to choose from in ever circle. In
June 09, TATA DOCOMO broke the old system of tariff by introducing per second
billing system. As soon as they did this, the other followed suit with price cuts
everywhere. Suddenly the idea of calls being free was not so outrageous. The prices
were reduced to such an extent that the viability of the business was in questions.
The competitive environment of TATA DOCOMO can be looked at from the following
perspectives.

Market share

38

The government issued fresh licenses in 2008.As a result of this the
market gets crowded though incumbents‟ still hold larger market shares are shown
above. However a point to note is that the new players have lower entry costs with
very deep pockets. They also have no legacy issues like the older players and hence
are more adept to changes market situations. The cost of infrastructure has reduced
dramatically due to the market growth and DOCOMO had an advantage here.

MARKET CAPITALISATION:

As profits margins are becoming thin, the market capitalization of listed
telecom companies has fallen. Though there have been some signs of recovery

39

Airtel vs Tata Docomo

 The equal competitors are coming up with their new tariffs, plans, special packs and
their varying services to prove themselves to be much competitive and trying to
anchor them firmly in this mobile sector.
 Currently the Tata Docomo came up with its services with an all new tariff scheme of
pay per second which has brought out a massive revolution in the market.
 On 30th Oct the leading mobile service provider Bharti Airtel launched their much
awaited ―Pay per Second‖ tariff all throughout India. The tariff comparison with Airtel
and TATA Docomo is as follows,
 Airtel with its inception on 2001 renders number of customers but their tariff, call rates
to different network makes confusion and remains unstable. But Docomo‘s 1p/sec
throughout India makes consumers to keep track of their account and controls
expenses.
 Airtel has kept different SMS charges even in their Pay Per Second plan with local
sms being charged at Re.1 and National sms at Rs.1.50, whereas Docomo
introduced SMS charges based on the number of characters. No recharges are
needed to opt for per second calling after one year.
 Package activation of Airtel ranges from Rs.64 to Rs.99 and varies from circle to
circle. Docomo‘s does not charge anything extra for activating the per second pack
since the tariff plan by default is on per second basis.
 The Airtel tariff calculation is hard ranging from 1p/sec to 1.2p/sec , but 20% higher to
other operators whereas A2A calls are kept at 1p/sec and that to other operators are
charged at 1.2p/sec. But Tata Docomo is offering a limited period offer of STD calls
at 1p/sec.
But Airtel is older than Docomo so it has compact network links than Docomo , so
this is the place where Docomo has to establish itself.

Meanwhile it is found that Docomo with both GSM and CDMA network added
over ‗4 million‘ subscribers in September, beating market leader Bharti Airtel yet
again. Airtel had 2.5 million new users in September.

40

SWOT ANALYSIS

 STRENGTH

 WEAKNESS

 OPPORTUNITIES

 THREATS

STRENGTHS:

 First to introduce seconds‘ tariff plan (seconds pulse)

 Good brand image of Tata services

 Having large variety of plans

 Plans are affordable by any common person.

WEAKNESS:

 Signal strength.

 Postpaid connections are not available as of now.

 Customer services are not satisfactory.

 Concentrating only on rural areas.

OPPORTUNITIES:

 Have a great opportunity to expand its services.

41

 To introduce any new plans for internet users.

 Introduce 3G compatible services.

 To introduce new combined plans like, SMS, Internet, Calling integrated offers.

THREATS:

 If signal strength is not increased it may lead to change in the network service by
the customers.
 Tata has to clarify whether this 1ps/sec will continue till its lifecycle.
 Heavy competition from all other network providers.

42

Growth of Telecom

The Indian Telecom sector has proved to be an international success story. The sector
has witnessed a commendable growth over the past two years. With an overall
subscriber base of 914.60 million and a teledensity of 76.03%, the sector continues to
grow from strength to strength. With the urban teledensity reaching 166.54%, the
market has been showing signs of maturity. Rural India is the key target market likely to
drive the next round of growth, particularly for voice based services. It is envisaged that
rural teledensity of 40% would be reached by end of 2014. 3G and BWA are expected
to reinvigorate the maturing urban markets and help in bringing balanced growth of
economy. The aggressive growth observed by mobile services is yet to be replicated in
case of broadband service, where the subscriber base currently stands at more than 12
million. The Government has a vision to provide telephone connection and broadband
facilities on demand across the country at an affordable price and it strives to achieve
the same.

The growth of telecom sector since 2007:

Subscribers' base ( in million)
Subscribers
March'07 March'08 March'09 March'10 March'11 October'11

Wireline 40.77 39.41 37.96 36.96 34.73 33.19

Wireless 165.09 261.08 391.76 584.32 811.60 881.41

Total Phones 205.87 300.49 429.73 621.28 846.33 914.60

Internet 9.21 11.05 13.65 16.10 19.69 -

Broadband 2.29 3.81 6.22 8.77 11.79 12.84*

Data
31.3 65.5 117.82 177.87 381.40 -
services/

43

Wireless
internet#

# accessing internet through wireless networks as per quarterly reports of TRAI

*up to September 2011 .

The 11th plan (2007-2012) had envisaged provision of 600 million connections. The
number of telephone connections both wireline and wireless put together stands at
914.60 million on 31.10.2011. This registers an addition of 869.83 million connections
by October 2011 against a target of 600 million connections by end of the 12 th Plan i.e.
March 2012. Wireless subscribers increased to 881.41 million by October 2011,
exhibiting a Compound Annual Growth Rate (CAGR) of 43.93% . During the first seven
months of the current year 2011-12, the wireless connections grew by 8.60%. The
number of Internet subscribers grew by 22.30%, while the broadband subscribers grew
at 34.43% during the year 2010-11.

Change in composition of sector:

Public vs. Private: The liberalization efforts of the Government are evident in the
growing share of the private sector. The private sector is now playing an important role
in the expansion of telecom sector which is evident from the following table:

Number of Telephones ( in million)

PSUs' Network Private Network %age
Share
Year Total
Wirelin Wireles Wirelin Wireles of
Total Total
e s e s PSUs'

44

134.4 205.8
2007 37.46 33.93 71.39 3.31 131.16 34.68%
8 7

Number of Telephones ( in million)

PSUs' Network Private Network %age
Share
Year Total
Wirelin Wireles Wirelin Wireles of
Total Total
e s e s PSUs'

220.9 300.4
2008 35.23 44.32 79.55 4.19 216.76 26.47%
4 9

340.1 429.7
2009 32.92 56.63 89.55 5.04 335.13 20.84%
8 3

105.8 515.3 621.2
2010 31.33 74.54 5.63 509.78 17.04%
7 8 8

126.0 720.3 846.3
2011 28.69 97.31 6.04 714.29 14.89%
0 3 3

October'1 128.8 785.7 914.6
26.99 101.82 6.20 779.59 14.08%
1 1 9 0

The share of private sector in the number of telephones has increased from
65.32% (134.48 million telephones) at the end of March, 2007 to 85.92% (786 million
telephones) at the end of October, 2011.

45

Wireless vs. Wireline:

The preference for use of wireless phones has also been predominant in the
sector. This is confirmed from the rising share of wireless phones, which increased from
80.19% (165.09 million) at the end of March, 2007 to 96.37% (881.41 million) at the
end of October, 2011.

Trend in Teledensity:

Teledensity in the country is steadily increasing from 18.22% as on 31.3.07 to
70.89% as on 31.03.11 and currently stands at 76.03% as on 31.10.11. However, there
is a wide gap between urban teledensity (166.54%) and rural teledensity (36.81%).

Rural Telephony:

97.09% of the villages in India have been covered by the Village Public
Telephones (VPTs). Apart from the 308.87 million connections provided in the rural
areas, 576350 VPTs have been provided till 31.10.2011.

Policy Reforms and New Initiatives

For a dynamic sector, reforms are necessitated by dynamics of changes
including technological innovations. The telecom sector in India has been witnessing a
continuous process of reforms since 1991. During the recent years, various policy
initiatives have been carried out to give boost to the sector. Major policy initiatives and
milestones achieved in Telecom Sector include:

A Mobile Number Portability (MNP):

MNP was launched by the Prime Minister on January 20, 2011. The MNP service
allows subscribers to retain their existing mobile telephone number even when they
switch from one access service provider to another irrespective of mobile technology or
from one technology to another technology of the same or any other access service
provider within the same service area.

46

Implementation of MNP has not only given wider choices to the Indian
subscribers but has also induced service providers to offer innovative, affordable and
competitive traffic plans for the benefit of the masses. As on November 30, 2011, 19
million mobile customers have successfully ported their mobile numbers to the service
providers‘ of their choice.

B Telecom Commercial Communications Customer Preference Regulations
2010:

Telecom Commercial Communications Customer Preference Regulations
(TCCCPR) 2010 came into force on September 27, 2011. TCCCPR 2010 gives options
to customers to exercise their preference, separate number for telemarketers starting
with 140, easy registration of the telemarketers, sharing of database, blacklisting
provisions, filtering of calls and SMS by service providers, effective complaint redressal
system and financial disincentive on access providers.

In order to curb unsolicited commercial communication, which were a major
cause of disturbance and inconvenience for telecom users, TRAI notified ―Telecom
Unsolicited Commercial Communication Regulations‖ in 2007, putting in place a
framework for controlling unsolicited commercial communications. This regulation was
further improved through two amendments in 2008. As a result of this regulation, the
number of unsolicited calls decreased but the number of unsolicited SMS increased.
The Indian telecom customer demanded more from TRAI, which led to enforcement of
TCCCPR 2010.

C Foreign Direct Investment (FDI):

Foreign Direct Investment (FDI) is one of the important sources to meet the
requirement of huge funds for rapid network expansion. The FDI policy provides an
investor-friendly environment for the growth of the telecom sector. Telecom has
emerged as the third major sector attracting FDI inflows after services and computer
software sector. At present, 74% to 100% FDI is permitted for various telecom services.

47

This investment has helped telecom sector to grow. The growth of FDI in Telecom
Sector since 2007 is as under:

Foreign Direct Investment(in million US$)

2006-07 2007-08 2008-09 2009-10 2011-12 2011-12
(upto Sept.
2011)

FDI 478 1261 2558 2554 1665 1901

D Declining Tariff:

The telephone tariffs have declined dramatically over the last two years making
the mobile telephone affordable to the common man. There are a large number of
options available for the subscribers to choose from the market depending upon their
usage profile. The prepaid tariffs have gone as low as ½ paise per second.

E Manufacturing of Telecom Equipment:

The exponential growth witnessed by the telecom sector in the past decade has
led to the development of the telecom equipment manufacturing and other supporting
industries. With the advent of next-generation technologies and operators looking to roll
out 3G and broadband wireless access services, the demand for telecom equipment
has increased rapidly. In an attempt to capitalize on this opportunity, the Government is
focusing on developing the domestic manufacturing industry. The Indian equipment
manufacturing sector has come a long way in the past few years. From being an import-
centric industry, it is slowly but steadily moving towards becoming a global telecom
equipment manufacturing hub. In 2002-03, India produced telecom equipment worth Rs
144 billion, which increased to Rs 520 billion in 2010-11, making a growth of 265 per
cent.

48

One of the key reasons for this trend is the setting up of domestic manufacturing
facilities by Indian companies along with multinational companies. The market is
currently dominated by multinational companies like Nokia, Nokia Siemens Networks,
Ericsson, Alcatel-Lucent, Motorola, LG Electronics, Samsung etc. which have set up
their production facilities in the country over the past decade and many more are
planning to set up. Also, with Indian as well as multinational companies setting up base
in India, the country is not only emerging as a manufacturing hub but is also planning to
increase its telecom exports. In the year 2006-07, India exported equipment worth Rs
18.98 billion, which increased by over 730 per cent to Rs 158 billion in 2010-11. Indian
mobile handset companies increased their share in the domestic market to 14 per cent
in 2009-10 from 3-4 per cent in 2008-09. Domestic brands have established themselves
in the market and are competing with international handset vendors.

The Government is supporting the domestic equipment manufacturing industry
and the growth of indigenous technology. With efforts from both the Government and
the industry, India can build a conducive ecosystem to boost the equipment
manufacturing sector, which can lead to the creation of an industry that will compete
with the best in the world. With above initiatives India is expected to be a manufacturing
hub for telecom equipment.

F Draft National Telecom Policy(NTP– 2011): Draft NTP 2011 was announced
on October 10, 2011. NTP–2011 proposes to provide stable, rationale and
objective policy regime over next decade or so:

To make available secure, reliable and affordable voice telephony and high
speed broadband services to every citizen in India with special focus on rural and
remote areas.
To improve the broadband experience by enhancing the speed of delivery.
To make India a global hub of manufacturing for all electronic products including
telecom equipment with substantial value addition within the country and
safeguard security concerns of the nation.
49

For simplification and rationalisation of licensing regime, transparent system for
allocation of spectrum and enable efficient usage of spectrum.
For discovery of price of spectrum through market related processes.
To achieve One Nation- Full Mobile Number Portability
To enable free roaming throughout the country.
To harness full potential of mobile phones for enabling provision of citizen centric
services related to education, health, employment, agriculture, entertainment,
banking & insurance services, skill upgradation, vocational training etc.
To encourage indigenous manufacture of cost effective mobile devices.

The faster roll out of high speed and reliable broadband in rural and urban areas will
enable decentralised governance, participative democracy and delivery of basic
services such as health and education to every citizen of the country. The thrust on
manufacturing will promote entrepreneurship, create more job opportunities, reduce
imports and improve security. Efficient usage of scarce resources like spectrum will
result in better quality of service to the customers at affordable cost. The new policy
regime will be beneficial to end consumers/citizens, Telecom Service Providers, Value
Added Service Providers, Government and Manufacturers. Policy is likely to be
approved by the June 2012.

G. National frequency Allocation Plan:

The National Frequency Allocation Plan-2011 (NAFP) came into effect from
October 1, 2011 to ensure its efficient and effective management. Radio spectrum is
becoming increasingly important for all walks of life and needs to be managed rationally.

NAFP-2011 is a policy document which contains spectrum allocation for various
radio communication services/applications in different frequency bands. This document
provides the basis for development, manufacturing and spectrum utilization activities in
the country, both for Government and private sectors.

50

H Recent initiatives undertaken by USOF:

The strategy for network expansion in rural areas mainly involves provision of phones
in the viable areas through market mechanism and through Universal Service Obligation
Fund (USOF) in the non-viable areas. While Village Public Telephones (VPTs) will
enable public access, a scheme of Infrastructure sharing by Infrastructure Providers and
Universal Service Providers has been launched under USOF to create infrastructure in
rural and remote areas. The achievements of the schemes under USOF are as under:-

 Apart from the 308.87 million connections provided in the rural areas,
576350 VPTs have been provided till 31.10.11. 97.09% of the villages in
India have now been covered by the VPTs.
 As on 30.10.2011, 7289 towers i.e. about 99% have been set up under
shared mobile infrastructure scheme. The infrastructure so created is
being shared by three service providers for provision of mobile services.
 As on 30.09.2011, a total of 2,24,631 broadband connections have been
provided and 5674 kiosks have been set up in rural and remote areas
under Rural Broadband Scheme for expanding provision of Wireline
Broadband Connectivity upto village level.
 Another Scheme has been launched to provide sufficient back-haul
capacity to integrate the voice and data traffic from the access network in
the rural areas to their core network by strengthening the OFC network.
This scheme considers Optical Fibre Cable (OFC) Network augmentation
between the blocks' HQ and Districts' HQ to begin with. USOF, through this
Scheme, shall provide subsidy support for augmentation, creation and
management of intra-district SDHQ-DHQ OFC Network on the condition
that it will be shared with other Telecom Operators at the rates prescribed
in the Agreement. Assam has been taken up first for implementation.

51

Some of the pilot projects undertaken by USOF are as under:-

(i) Support is being provided for mobile charging stations in 5000 villages through
Tata Energy Research Institute ( TERI) project of Lighting a Billion Lives (LaBL). The
solar mobile charging stations in these 5000 villages are to be provided in a phased
manner over a period of two years from the date of signing of the Agreement. Till
30.04.2011, mobile charging stations have been established in 322 villages.

(ii) A Memorandum of Understanding (MoU) has been signed with BSNL for
financial support from USOF for provision of Broadband enabled Rural Public
Service Terminals (RPSTs) to eligible Woman SHGs (Self Help Groups) on pilot
basis in the states of HP and Rajasthan. BSNL shall provide an RPST to one eligible
SHG from each of its eligible rural wire-line exchanges under the MoU as per agreed
terms & conditions with subsidy support from USO Fund. At present, 150 RPSTs (100 in
Rajasthan and 50 in HP) have been provided under this scheme.

(iii) Recognizing the vital role that Information Communication Technology (ICT) can
play in the empowerment of rural women, a scheme has been launched for pilot
projects aimed at facilitating Self Help Groups (SHGs) access to ICT enabled services.
Financial support from USO Fund is to be provided towards Value Added Service (VAS)
subscriptions for SHGs in accordance with the provisions of underlying subsidy
Agreements. At present MoUs have been signed for Proof of Concept (PoC) for 8
mobile VAS projects in the state of Tamilnadu, Kerala, Maharashtra, Uttar Pradesh,
Uttarakhand, Andhra Pradesh, Rajasthan and the Union Territory of Puducherry.

52

I Implementation of National Optical Fibre Network (NOFN): All village
Panchayats are to be connected through NOFN to enable delivery of public and
private electronic services to citizens in urban and rural areas.

 Broadband is a tool for improving the life of people by providing affordable
and equitable access to information and knowledge. For individual,
broadband has direct impact on their day to day life style and behaviour. For
State, it enormously contributes towards trade and generation of employment.
 Many Information and Communication Technologies (ICT) applications such
as e-commerce, e-banking, e-governance, e-education and tele-medicine
require high speed Internet connectivity.
 Government has approved National Optical Fiber Network in October 2011
for providing Broadband connectivity to all Panchayats at a cost of approx
20,000 Crore.
 The plan is to extend the existing optical fiber network up to Panchayats. The
Network will be available to telecom service providers for providing various
services to the citizens in non-discriminatory manner. As per the approval of
the Cabinet, the action for establishing and operationalising Special Purpose
Vehicle (SPV) has been initiated for management and operation of the NOFN
and ensuring non-discriminatory access to all service providers.

· In economic terms, the benefits from the scheme are expected through
additional employment, e-education, e-health, e-agriculture etc. and reduction in
migration of rural population to urban areas. As per a study conducted by the
World Bank, with every 10% increase in broadband penetration, there is an
increase in GDP growth by 1.4%.

 NOFN will also facilitate implementation of various e-
governance initiatives such as e-health, e-banking, e-education
etc. thereby facilitating inclusive growth.
 The Network will provide a highway for transmission of voice,
data and video in rural areas. It will enable the broadband
connectivity upto 2 Mbps, capable of providing various

53

electronic services like education, health, entertainment,
commerce etc; to people and businesses.

· The people in rural areas, student, entrepreneurs, various Government
Departments providing services under e-gov projects will be benefitted. It will
also provide connectivity to various public institutions like Gram Panchayats,
Primary Health Centres (PHCs), schools etc. in rural areas. It will also result in
investment from the private sector both for providing different services and
manufacturing of broadband related telecom equipment.

· The NOFN project would be implemented in 2 years.

54

Advertising and its Impact for Tata Docomo

Man in the Airplane - New TATA DOCOMO TV Ad

Celebrity Promotion for Tata Docomo R. Kapour

Ranbir Kapoor dons new avatar for Tata Docomo‟s new campaign

Tata Docomo‟s new campaign with Ranbir Kapoor to go on air with IPL season
5TT Correspondent | 04 Apr 2012

Tata DOCOMO‘s campaign featuring film actor Ranbir
Kapoor will to go on air with the Indian Premier League
(IPL) season 5. The company said the new brand
campaign is simple, drawing attention to the
ridiculousness of service paradigms in telecom. Ranbir
Kapoor is endearing in his all-new, unimaginable avatar in
IPL Season 5 Refresh the core service differentiators of Tata.

With this campaign, we are reinforcing the core proposition of the brand, and reiterating
the service differentiators that brand Tata DOCOMO offers to its customers, Gurinder
Singh Sandhu, Head, Marketing, Tata Teleservices, said.

The idea here is to communicate effectively the unfairness and rigidity that exists in the
telecom industry, and this has been beautifully conceptualized and executed by way of
drawing analogies with another service industry. An eatery, manned by a grumpy yet
endearing old man; the restaurateur!

55

Commenting on this new avatar, Tata DOCOMO‘s brand ambassador Ranbir Kapoor
said, This is a unique approach to advertising and I am very excited to be part of it. With
this campaign, we are attempting to be really different? And I am sure people will like it.
The campaign reflects values that I believe in personally. Transparency, honesty and
true value. This is a brand that believes in DO, and that also strikes a strong chord with
me.

In every promo, Tata DOCOMO differentiators have been talked about, highlighting the
specific consumer pain points that have been contextualized with similar parallels in the
restaurant. Be it the No Unfair Balance Deductions or Enjoy the Best Internet
Experience. Always, Ranbir the restaurateur uses innuendos and raillery in an
uncharacteristic gruff voice to flummox the customer, while driving home Tata
DOCOMO‘s central message in a lucid yet rib-tickling manner.

In continuation to its first series of Keep it Simple, Silly Campaign, this IPL Season 5 will
see Tata DOCOMO launching a simple yet refreshingly different approach. While the
first set of exciting promos tickles the audience and drives home our key message, we
will be expanding the ambit and messaging, with various other marketing initiatives also
pushing the message. The TV campaign will be supported with a brand surround
campaign print, outdoors, on-ground and retail, Sandhu added.

Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless
broadband service brand, Tata DOCOMO Photon Max, which was recently, conferred
the Product of the Year 2012 award for Best Innovation by AC Neilsen. Tata DOCOMO
has been able to foster a strong brand-customer relationship by offering uncomplicated
telecom solutions with no hidden conditions or unwanted service activations.

Ritesh Ghoshal, head – brand marketing, Tata Teleservices, explained, ―Imagine a
world where everyone starts treating you like your telecom operator does. That‘s the
analogy we‘ve drawn, and how Tata Docomo differs from that.‖

The brand is also an associate sponsor with IPL 5. Ghoshal said, ―We are an associate
sponsor on IPL, as we have been for the past two years. We use IPL as a media

56

property rather than an association property. We don‘t associate with teams. When the
IPL comes around, all other channels take a hit in viewership; prime time viewership
moves to cricket. The remote comes into the hands of my core TG which is the male
audience 15-45, all over India, and that‘s why we leverage it as a media property.‖

Ranbir Kapoor's New Look Spells Magic! Tata DOCOMO's New Campaign is
Refreshingly Different

Be Smart, Pay Per Second: virtues of per second billing allows customers to save up to
23% on their mobile bills - Campaign refreshes Tata DOCOMO's core service
differentiators of no fine-print, no hidden conditions and no unwarranted balance
deductions - Ranbir Kapoor is endearing in his all-new, unimaginable avatar in IPL
Season 5 Refresh the core service differentiators of Tata

Bengaluru, Karnataka, April 8, 2012 /India PRwire/ -- Cutting through the clutter that the
Indian telecom landscape finds itself in-with customers forced to jostle with confusing
and complicated products, services and tariff plans-Tata DOCOMO is doing a standout
act yet again, with the launch of its new brand campaign that urges customers to pay by
the second, always.

Scheduled to go on air with the Indian Premier League Season 5, the new brand
campaign is simple, drawing attention to the ridiculousness of service paradigms in
telecom. The campaign refreshes the core service differentiators of Tata DOCOMO-no
fine-print, no hidden conditions and no unwarranted balance deductions. Tagged as
innovators and the first to introduce the concept of Pay Per Use, the brand, with this
unique campaign, reinstates the message that paying by the second always benefits the
customer. Tata DOCOMO charges the customer on a per-second pulse-not by the
minute-leading to saving of up to 23% on mobile bills!

57

"With this campaign, we are reinforcing the core proposition of the brand, and reiterating
the service differentiators that brand Tata DOCOMO offers to its customers," Mr
Gurinder Singh Sandhu, Head, Marketing, Tata Teleservices, said. "The idea here
is to communicate effectively the unfairness and rigidity that exists in the telecom
industry, and this has been beautifully conceptualized and executed by way of drawing
analogies with another service industry-an eatery, manned by a grumpy yet endearing
old man; the restaurateur!"

Commenting on this new avatar, Tata DOCOMO's brand ambassador Ranbir Kapoor
said: "This is a unique approach to advertising and I am very excited to be part of it.
With this campaign, we are attempting to be really different-and I am sure people will
like it. The campaign reflects values that I believe in personally-transparency, honesty
and true value. This is a brand that believes in DO, and that also strikes a strong chord
with me."

In every promo, Tata DOCOMO differentiators have been talked about, highlighting the
specific consumer pain points that have been contextualized with similar parallels in the
restaurant. Be it the 'No Unfair Balance Deductions' or 'Enjoy the Best Internet
Experience. Always', Ranbir the restaurateur uses innuendos and raillery in an
uncharacteristic gruff voice to flummox the customer, while driving home Tata
DOCOMO's central message in a lucid yet rib-tickling manner.

In continuation to its first series of 'Keep it Simple, Silly' campaign, this IPL Season 5
will see Tata DOCOMO launching a "simple" yet "refreshingly different" approach.
"While the first set of exciting promos tickles the audience and drives home our key
message, we will be expanding the ambit and messaging, with various other marketing
initiatives also pushing the message. The TV campaign will be supported with a brand
surround campaign-print, outdoors, on-ground and retail," Mr Sandhu added.

Tata DOCOMO is involved with IPL as an associate sponsor with its leading wireless
broadband service brand, Tata DOCOMO Photon Max, which was recently conferred
the 'Product of the Year 2011' award for 'Best Innovation' by AC Neilsen.

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Buying Preference Celebrity Promotion

“Impact of celebrity endorsement on overall brand”

The motif behind total branding may be decocted as an attempt to amalgamate diverse
activities to win customer preference. Apropos to this context, the topic “Impact of
celebrity endorsement on overall brand”, is a significant one. The crescendo of
celebrities endorsing brands has been steadily increasing over the past years.
Marketers overtly acknowledge the power of celebrities in influencing consumer-
purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement can
bestow special attributes upon a product that it may have lacked otherwise. But
everything is not hunky-dory; celebrities are after all mere mortals made of flesh and
blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also
exacerbate the image of a brand.

If I may take the liberty of rephrasing Aristotle‟s quote on anger, “Any brand can get a
celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right
degree, at the right time, for the right purpose and in the right way... that is not easy.”

Celebrity endorsements are impelled by virtue of the following motives:

Instant Brand Awareness and Recall.

Celebrity values define, and refresh the brand image.

Celebrities add new dimensions to the brand image.

Instant credibility or aspiration PR coverage.

Lack of ideas.

Convincing clients.

The scope of a celebrity on the incumbent brand:

Simply stating, a brand is a differentiated product and helps in identifying your product
and making it stand out due to its name, design, style, symbol, color combination, or
usually a mix of all these.

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Before we can scrutinize the effects of celebrity endorsement on the overall brand, we
have to ferret the implicit nuances that act as sources of strong brand images or values:

Experience of use: This encapsulates familiarity and proven reliability.

User associations: Brands acquire images from the type of people who are
seen using them. Images of prestige or success are imbibed when brands are
associated with glamorous personalities.

Belief in efficiency: Ranking from consumer associations, newspaper editorials
etc.

Brand appearance: Design of brand offers clues to quality and affects
preferences.

Manufacturer‟s name & reputation: A prominent brand name
(Sony,Kellogg‘s,Bajaj,Tata) transfers positive associations

The celebrity‘s role is the most explicit and profound in incarnating user associations
among the above-mentioned points. To comprehend this, let us analyze the multiplier
effect formula for a successful brand:

S=P* D*AV --the multiplier effect
Where S is a successful brand,
P is an effective product.
D is Distinctive Identity
and AV is Added values.

The realm of the celebrity‘s impact is confined to bestow a distinctive identity and
provide AV to the brand; the celebrity does not have the power to improve or debilitate
the efficiency and features of the core product. Thus, we are gradually approaching an
evident proposition claiming,

“The health of a brand can definitely be improved up to some extent by celebrity
endorsement. But one has to remember that endorsing a celebrity is a means to an end
and not an end in itself.”

60

An appropriately used celebrity can prove to be a massively powerful tool that magnifies
the effects of a campaign. But the aura of cautiousness should always be there. The
fact to be emphasised is that celebrities alone do not guarantee success, as consumers
nowadays understand advertising. They know what advertising is and how it works.
People realize that celebrities are being paid a lot of money for endorsements and this
knowledge makes them cynical about celebrity endorsements.

Compatibility of the celebrity‟s persona with the overall brand image

A celebrity is used to impart credibility and aspirational values to a brand, but the
celebrity needs to match the product. A good brand campaign idea and an intrinsic link
between the celebrity and the message are musts for a successful campaign.
Celebrities are no doubt good at generating attention, recall and positive attitudes
towards advertising provided that they are supporting a good idea and there is an
explicit fit between them and the brand. On the other hand, they are rendered useless
when it comes to the actual efficiency of the core product, creating positive attitudes to
brands, purchase intentions and actual sales.

Certain parameters that postulate compatibility between the celebrity and brand image
are:

Celebrity‘s fit with the brand image.

Celebrity—Target audience match

Celebrity associated values.

Costs of acquiring the celebrity.

Celebrity—Product match.

Celebrity controversy risk.

Celebrity popularity.

Celebrity availability.

Celebrity physical attractiveness.

Celebrity credibility.

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Celebrity prior endorsements.

Whether celebrity is a brand user.

Celebrity profession.

Successful celebrity endorsements for a brand- An Indian perspective

The latter part of the '80s saw the burgeoning of a new trend in India– brands started
being endorsed by celebrities. Hindi film and TV stars as well as sportspersons were
roped in to endorse prominent brands. Advertisements, featuring stars like Tabassum
(Prestige pressure cookers), Jalal Agha (Pan Parag), Kapil Dev (Palmolive Shaving
Cream) and Sunil Gavaskar (Dinesh Suitings) became common. Probably, the first ad
to cash in on star power in a strategic, long-term, mission statement kind of way was
Lux soap. This brand has, perhaps as a result of this, been among the top three in the
country for much of its lifetime.

In recent times, we had the Shah Rukh-Santro campaign with the objective of mitigating
the impediment that an unknown Korean brand faced in the Indian market. The
objective was to garner faster brand recognition, association and emotional unity with
the target group. Star power in India can be gauged by the successful endorsement
done by Sharukh for three honchos- Pepsi, Clinic All Clear and Santro. Similarly, when
S Kumars used Hrithik Roshan, then the hottest advertising icon for their launch
advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due
to the sheer impact of using Hrithik. Ad recall was as high as 70 per cent, and even the
normally conservative trade got interested.

In the Indian context, it would not be presumptuous to state that celebrity endorsements
can aggrandize the overall brand. We have numerous examples exemplifying this claim.
A standard example here is Coke, which, till recently, didn't use stars at all
internationally. In fact, India was a first for them. The result was a ubiquitously appealing
Aamir cheekily stating Thanda matlab Coca Cola. The recall value for Nakshatra
advertising is only due to the sensuous Aishwarya. The Parker pen brand, which by
itself commands equity, used Amitabh Bachchan to revitalize the brand in India.

62

According to Pooja Jain, Director, Luxor Writing Instruments Ltd (LWIL), post Bachchan,
Parker's sales have increased by about 30 per cent.

India is one country, which has always idolized the stars of the celluloid world.
Therefore it makes tremendous sense for a brand to procure a celebrity for its
endorsement. In India there is an exponential potential for a celebrity endorsement to be
perceived as genuinely relevant, thereby motivating consumers to go in for the product.
This would especially prove true if the endorser and the category are a natural lifestyle
fit like sportspersons and footwear, Kapil-Sachin and Boost or film stars and beauty
products.

Some Global Examples:

Globally, firms have been juxtaposing their brands and themselves with celebrity
endorsers. Some successful ongoing global endorsements are as follows:

Celebrity endorsements have been the bedrock of Pepsi's advertising. Over the
years, Pepsi has used and continues to use a number of celebrities for general
market and targeted advertising, including Shaquille O'Neal, Mary J. Blige,
Wyclef Jean, and Busta Rhymes, who did a targeted campaign for their Mountain
Dew product.

George Foreman for Meineke. He has also sold more than 10 million Lean Mean
Fat-- Reducing Grilling Machines since signing with the manufacturing company.

James Earl Jones for Verizon and CNN.

Nike golf balls, since the company signed Tiger Woods in 1996, have seen a $50
million revenue growth. Nike's golf line grossed more than $250 million in annual
sales. In 2000 he renegotiated a five-year contract estimated at $125 million.

Other successful endorsements like Nike—Michael Jordan, Dunlop—John
McEnroe, Adidas—Prince Naseem Hamed, and so on.

Venus Williams, tennis player and Wimbledon champion has signed a five-year
$40 million contract with sportswear manufacturer Reebok International Inc.

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Advantages of a celebrity endorsing a Brand

Brands have been leveraging celebrity appeal for a long time. Across categories,
whether in products or services, more and more brands are banking on the mass
appeal of celebrities. As soon as a new face ascends the popularity charts, advertisers
queue up to have it splashed all over. Witness the spectacular rise of Sania Mirza and
Irfan Pathan in endorsements in a matter of a few months. The accruement of celebrity
endorsements can be justified by the following advantages that are bestowed on the
overall brand:

Establishment of Credibility: Approval of a brand by a star fosters a sense of
trust for that brand among the target audience- this is especially true in case of
new products. We had the Shah Rukh-Santro campaign. At launch, Shah Rukh
Khan endorsed Santro and this ensured that brand awareness was created in a
market, which did not even know the brand.

Ensured Attention: Celebrities ensure attention of the target group by breaking
the clutter of advertisements and making the ad and the brand more noticeable.

PR coverage : is another reason for using celebrities. Managers perceive
celebrities as topical, which create high PR coverage. A good example of
integrated celebrity campaigns is one of the World‘s leading pop groups, the
Spice Girls, who have not only appeared in advertisements for Pepsi, but also in
product launching and PR events. Indeed, celebrity-company marriages are
covered by most media from television to newspapers (e.g. The Spice Girls and
Pepsi)

Higher degree of recall: People tend to commensurate the personalities of the
celebrity with the brand thereby increasing the recall value. Golf champion Tiger
Woods has endorsed American Express, Rolex, and Nike. Actress Catherine
Zeta-Jones is used by T-Mobile and Elizabeth Arden. 007 Pierce Brosnan
promotes Omega, BMW, and Noreico.

64

Associative Benefit: A celebrity‘s preference for a brand gives out a persuasive
message - because the celebrity is benefiting from the brand, the consumer will
also benefit.

Mitigating a tarnished image: Cadbury India wanted to restore the consumer's
confidence in its chocolate brands following the high-pitch worms controversy; so
the company appointed Amitabh Bachchan for the job. Last year, when the even
more controversial pesticide issue shook up Coca-Cola and PepsiCo and
resulted in much negative press, both soft drink majors put out high-profile
damage control ad films featuring their best and most expensive celebrities.
While Aamir Khan led the Coke fightback as an ingenious and fastidious Bengali
who finally gets convinced of the product's `purity,' PepsiCo brought Shah Rukh
Khan and Sachin Tendulkar together once again in a television commercial
which drew references to the `safety' of the product indirectly.

Psychographic Connect: Celebrities are loved and adored by their fans and
advertisers use stars to capitalise on these feelings to sway the fans towards
their brand.

Demographic Connect: Different stars appeal differently to various
demographic segments (age, gender, class, geography etc.).

Mass Appeal: Some stars have a universal appeal and therefore prove to be a
good bet to generate interest among the masses.

Rejuvenating a stagnant brand: With the objective of infusing fresh life into the
stagnant chyawanprash category and staving off competition from various
brands, Dabur India roped in Bachchan for an estimated Rs 8 crore.

Celebrity endorsement can sometimes compensate for lack of innovative
ideas.

65

Disadvantages of a celebrity endorsing a brand:

The celebrity approach has a few serious risks:

1. The reputation of the celebrity may derogate after he/she has endorsed the
product: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson,
Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on
the brand, celebrity endorsers may at times become liabilities to the brands they
endorse.

2. The vampire effect: This terminology pertains to the issue of a celebrity
overshadowing the brand. If there is no congruency between the celebrity and the
brand, then the audience will remember the celebrity and not the brand. Examples
are the campaigns of Dawn French—Cable Association and Leonard Rossiter—
Cinzano. Both of these campaigns were aborted due to celebrities getting in the
way of effective communication. Another example could be the Castrol commercial
featuring Rahul Dravid.

3. Inconsistency in the professional popularity of the celebrity: The celebrity may
lose his or her popularity due to some lapse in professional performances. For
example, when Tendulkar went through a prolonged lean patch recently, the
inevitable question that cropped up in corporate circles - is he actually worth it? The
2003 Cricket World Cup also threw up the Shane Warne incident, which caught
Pepsi off guard. With the Australian cricketer testing positive for consuming banned
substances and his subsequent withdrawal from the event, bang in the middle of
the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on
an uneasy wicket

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4. Multi brand endorsements by the same celebrity would lead to overexposure:
The novelty of a celebrity endorsement gets diluted if he does too many
advertisements. This may be termed as commoditisation of celebrities, who are
willing to endorse anything for big bucks. Example, MRF was among the early
sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar
endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has
scaled down.

5. Celebrities endorsing one brand and using another (competitor): Sainsbury‘s
encountered a problem with Catherina Zeta Jones, whom the company used for its
recipe advertisements, when she was caught shopping in Tesco. A similar case
happened with Britney Spears who endorsed one cola brand and was repeatedly
caught drinking another brand of cola on tape.

6. Mismatch between the celebrity and the image of the brand: Celebrities
manifest a certain persona for the audience. It is of paramount importance that
there is an egalitarian congruency between the persona of the celebrity and the
image of the brand. Each celebrity portrays a broad range of meanings, involving a
specific personality and lifestyle. Madonna, for example, is perceived as a tough,
intense and modern women associated with the lower middle class. The personality
of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer
Aniston has the image of the ‗good girl from next door‘.

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CONCLUSION

Despite the obvious economic advantage of using relatively unknown personalities as
endorsers in advertising campaigns, the choice of celebrities to fulfill that role has
become common practice for brands competing in today's cluttered media environment.
There are several reasons for such extensive use of celebrities. Because of their high
profile, celebrities may help advertisements stand out from the surrounding clutter, thus
improving their communicative ability. Celebrities may also generate extensive PR
leverage for brands. For example, when Revlon launched the "Won't kiss off test" for its
Colorstay lipsticks in 1994 with Cindy Crawford kissing reporters, the campaign featured
on almost every major news channel and equally widely in the press. A brief
assessment of the current market situation indicates, that celebrity endorsement
advertising strategies can, under the right circumstances, indeed justify the high costs
associated with this form of advertising.

But it would be presumptuous to consider celebrity endorsement as a panacea for all
barricades. Celebrity endorsement if used effectively, makes the brand stand out,
galvanizes brand recall and facilitates instant awareness. To achieve this, the marketer
needs to be really disciplined in choice of a celebrity. Hence the right use of celebrity
can escalate the Unique Selling Proposition of a brand to new heights; but a cursory
orientation of a celebrity with a brand may prove to be claustrophobic for the brand. A
celebrity is a means to an end, and not an end in himself/herself.

68

ARTICLE BY TIMES OF INDIA

Tata Tele gets Rs 784 cr equity boost from Docomo

Injection coincides with Tata Group‟s holding company Tata Sons infusing Rs
1,593 cr also as equity

Abhineet Kumar / Mumbai Dec 11, 2012, 17:49 IST

ICICIDirect Demat Account : 0*/- Demat Charges+Earn 4% interest on money in
trading a/c .Apply Now.
www.ICICIdirect.com/DematAccount

Japanese telecom operator NTT Docomo that bought a 26% stake in Tata Teleservices
in 2008 for Rs 13,070 crore ($2.7 billion) in November 2008 has infused additional Rs
784 crore by subscribing to fresh equity in the company in the last two financial years
ending March 2012.

Docomo‘s equity infusion is coincided by Tata Group‘s holding company Sons infusing
Rs 1,593 crore and this way taking its holding to 39.22% at the end of March 2012 from
37.92% a year back. The report does not mention how this increased NTT Docomo‘s
holding in the company. Tata Tele is not listed on stock exchanges and
its spokesperson declined to comment. Query sent to NTT Docomo to confirm its
current share holding did not get any response.

Tata Teleservices is a laggard in the over $100 billion revenue Tata Group. It recorded
a Rs 4,227.9 crore loss in 2011-12, up from Rs 3,508 crore loss a year ago. The

69

Japanese company has an agreement with Tata Sons to sell its 26% stake back to the
Tata Group holding firm if the company does not meet certain performance parameters
by March 31, 2014.

―The agreement has five performance parameters out of that three are met and two are
slightly missed,‖ said a Tata Group source who did not wish to be identified.

―We are confident of meeting all five parameters by March 31, 2014 and there should
not be any obligation to buy back those shares from Docomo,‖ he said without
specifying the details.

―The capital infusion reflects the hardship that telecom companies are facing at a time
when revenue growth is muted,‖ said Vivekanand Subbaraman, telecom analyst with
foreign brokerage Phillip Capital.

Tata Teleservices has been on a clean-up drive since the group veteran N Srinath took
the reins of the company as managing director and chief executive officer in January
2011. In his leadership, the company deactivated over 10 million inactive mobile
subscribers bringing down the subscriber base to 80.23 million at the end of quarter
ending June. Meanwhile, the company also started putting more focus on data services
using the CDMA technology.

This is believed to have miffed NTT Docomo that partnered with Tata Teleservice for its
launch of GSM-based services. The Japanese company specialises in 3G technology
and content in Japan. ―There are a few Docomo executives who have moved from
Japan to Tata Tele‘s office in Delhi and Mumbai and there are no issues between the
two companies,‖ said the Tata Group source quoted earlier. DOCOMO already has the
right to appoint three directors on the Tata Teleservices board.

70

STATEMENT OF THE PROBLEM

DoCoMo in exit mode from Tata JV?
Aug 07 2012, 16:19 |

Dec 14 2012, 20:36
The time for taking a final call is approaching fast for Tata DoCoMo.
With Tata Teleservices not being able to meet the set goals by Japanese partner NTT
DoCoMo, the joint venture may be pushed on the rocks if the Japanese giant decides to
exercise its option to exit the company.
A report in The Economic Times said that the company has lost 10 million subscribers
since June 2011, after the company shifted its focus to data customers.
A voice strategy is key to survival in today's environment, a consultant has been quoted
as saying in the report.
According to the report, DoCoMo had set certain performance parameters for the Tata
company and it has not been able to meet them.
New entrant Uninor has almost doubled its subscriber base during the period when Tata
DoCoMo witnessed a 10 percent decline in its customer base, the report said.
Moreover, Tata Tele has managed to increase its revenue market share only
marginally.
This has given rise to speculation that DoCoMo may not be interested in staying
invested in the Indian company anymore.
The Japanese telecom major has an option to raise its shareholding to 35 percent or
exit the company.
NTT DoCoMo had bought 26 percent in Tata Telservices for $2.7 billion.
Tata Teleservices' net loss widened to Rs 162 crore from Rs 119 crore a year ago.

71

Revenue earned from Value added Services

72

Technology Acceptance Model (TAM)
The technology acceptance model is an influential extension of Ajzen and Fishbein‘s
theory of reasoned action (TRA). It was introduced and developed by Fred Davis in
1986 (Davis et al., 1989). TAM is a model derived from a theory that addresses the
issue of how users come to accept and use a technology. Themodel suggests that
when users are presented with, for instance, a new software package, a number of
variables influence their decisions about how and when they will use it. There are two
specific variables, perceived usefulness and perceivedease of use, which are
hypothesized to be fundamental determinants of user acceptance. (Davis and Arbor,
1989).

73

Data Analysis and Tabulation

1. Price range of the mobile which you currently use?

74

Conclusion:

As we can conclude from the responses, the bar diagram and the pie diagram,
there are many people who use a cell phone ranging between Rs 5000-10000,
followed by people using a cell phone which costs above Rs 10000 and people
using cell phones ranging between Rs 1000-5000.

75

2. What type of connection do you use?

76

Conclusion:

there are many prepaid connection users (more than half), but on the other hand,
there are many postpaid subscribers as well. The selection of connection
depends on the convenience and utility of the user.

77

3. Do you use Internet on your mobile phone?

78

Conclusion:
most people use internet on their cell phone. They find it easy to access internet
through mobile phones as it is very convenient.

79

4. You use internet on your mobile phone for?

80

Conclusion:

many people use mobile internet for email (personal/business purposes),
followed by social networking and browsing. Also, there are some youngsters
who use the mobile internet for online gaming.

81

5. How often do you use internet on your mobile phone?

82

Conclusion:

many people use mobile internet at least once a day followed by people using it
multiple times in a day and once a week. While there were some people who
use the internet facility once in a while

83

6. Connectivity of Internet on Mobile handset is through?

84

Conclusion:

majority of people use internet services provided by their mobile network. The
usage of Wifi is comparatively low; this is mainly because there are not many
Wifi hot spots available.

85

7. How much do you spend on your mobile internet per month?

86

Conclusion:

most of the people spend a minimum of Rs 50-100 on internet plans per month
on their mobile internet. This shows that offered the present speed and plans
people are ready to spend almost Rs 100 per month. Hence, we can say that if
better speed and access is provided people would definitely be interested in
switching to the new plans.

87

8. Are you happy with the current internet speed on your phone?

88

Conclusion:

many people are not happy with the current internet speed offered by the service
provider. Hence we can say that, people are now expecting better speed and
access. On the contrary, there are some people who are quite satisfied with the
current mobile internet speed.

89

9. Are you aware of 3G technology?

90

Conclusion:
As we can conclude from the responses, the bar diagram and the pie diagram, a
majority of the people are aware of 3G services.

91

10. Are you aware of the features and benefits of 3G technology?

92

Conclusion:

many people are aware of the features and benefits of 3G. On the other hand,
there are a lot of people who are aware of 3G technology but not about its
features and benefits.

93

11. Is your handset 3G enabled?

94

Conclusion:
there are many people who use 3G enabled cell phones followed by people not
using 3G enabled cell phones whereas some do not know whether their phone is
3G enabled or not.

95

12. Are you willing to subscribe to 3G service (for faster internet and other
additional benefits offered by 3G technology)?

96

Conclusion:

many people are willing to subscribe 3G technology in the immediate future.
Yes 78% No 22%

97

13.Will a speedy and efficient internet service motivate you to spend more on
mobile internet?

98

Conclusion:

many people are willing to pay more if provided with better, faster and efficient
internet facilities. This is mainly because of the increase in per capita income of
the people and the increase in standard of living.

Interpretation:-
Out of 100%, 25 % people are using airtel service, 17% using reliance, 15% are Tata
docomo user and rests are other users.
Tables: IMPORTANCE REGARDING TATA DOCOMO SERVICE
What is important for you?

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Interpretation:-people use tata docomo due to its call tariff and also coverage. There
is also a good roaming facility

SERVICE IN NUMBER PERCENTAGE (%)

Connectivity 17 17

Coverage 25 25

Roaming 22 22

Local call 30 30

All 6 6

Total 100 100

Features of TATA DOCOMO forced people to use it, is

35

30

25

20

15

10

5

0
Advertisement Connectivity Schemes Goodwill

Interpretation:- the advertisement that tatadocomo showing forced people to use.
Also due to its good connectivity .

100

CASE STUDY

NTT DoCoMo - Joint Venture with Tata in Indian Mobile Telecom
by Shih-Fen Chen, Ramasastry Chandrasekhar
Source: Richard Ivey School of Business Foundation
20 pages. Publication date: Jan 10, 2011. Prod. #: W10004-PDF-ENG

In November 2008, NTT DoCoMo, the largest mobile telecom company in Japan,
entered into a joint venture (JV) with Tata Tele Services Ltd (TTSL), the fifth largest
mobile telecom company in India. The two partners had come together because both
had recognized that they could put complementary capabilities into play. NTT DoCoMo
could build on TTSL's knowledge of the local market and ownership of telecom licence
(given by the federal government only to domestic firms). TTSL could gain access to
NTT DoCoMo's core competence in 3G technology, which was soon being rolled out in
India through spectrum auction. As part of signing the deal, the two partners had to deal
with issues other than business synergies - like the percentage of equity holding of each
partner in the JV, the price at which NTT DoCoMo would buy its stake to be offloaded
by TTSL and the provision for veto rights that could make up for a minority holding. The
case study helps students understand the dynamics of the formation of an international
JV. It also highlights the unique advantages of a JV over other forms of international
collaboration, such as technology licensing and agency distribution.

101

TATA TELESERVICES-DOCOMO JOINT VENTURE

Abstract

In late 2008, India-based CDMA operator, Tata Teleservices Limited (Tata
Teleservices) and Japan-based telecom operator NTT DoCoMo (DoCoMo) entered into
a joint venture (JV) in India. Subsequently, in June 2009, the two companies unveiled
their new brand identity for offering GSM services in India - Tata DoCoMo. With this JV,
Tata Teleservices got a presence in the GSM market while DoCoMo got the opportunity
to tap the tremendous potential offered by the Indian telecom sector.

Issues:

» Joint Venture

Introduction

On June 10, 2009, Tata Teleservices Limited (Tata
Teleservices), a CDMA mobile service provider in India, and
NTT DoCoMo Inc. (DoCoMo), a Japan-based mobile phone
operator, unveiled a new brand identity for their GSM service
- Tata DoCoMo. The new branding followed months after the
joint venture (JV) was formed between the two companies in
November 2008. Commenting on the new brand identity, Anil
Sardana (Sardana), Managing Director of Tata Teleservices
said, "TATA DOCOMO is a natural choice of GSM brand-
name for us, since it will provide customers a dual
advantage-trusted service from the House of Tata, riding on
the technological superiority of NTT DOCOMO."...

Questions for Discussion:

1. Critically analyze DoCoMo's strategy for India. Analyze the rationale behind the JV
between TTSL and NTT DoCoMo and enumerate the benefits to both the parties.
2. Do you think DoCoMo will be able to tap the opportunities offered by the Indian
telecom sector? Also, comment on how the new venture will fare against the existing
Indian players.

102

FINDINGS

 It is found that TATA Teleservices is the first company to launch prepaid 1 pec. p/sec.
services in the country.

 The call rates are found to be at par with the other competitors.

 The availability of the recharge voucher was found good. But some time it is not
available.

 Most of the respondents found the customer care service is not satisfactory.

 Nearly all the respondents told that Quick Problem Solving is desirable quality in the
customer care Executives.

 The queries and problem of the customer were solved but not immediately, there is a
scope for improvement.

 More stress was given on customer acquisition then satisfying the Existing
customers.

 While conducting a survey it was found that still many people are not aware of the
term GSM and CDMA even they basic difference between them.

 The voice clarity of GSM is better than CDMA. When CDMA phones are near any
digital or magnetic instrument the poor crack due to interference and also cross
connection problems are faced by some of the users.

 GSM users are satisfied with good coverage strength anywhere.

 Many people who are interested in internet connectivity and data transfer services
get attracted to GSM. As internet connectivity and data transfer is cheaper with GSM.

 It is found that international roaming facility is not so good as it should be.

 Supplementary facilities like call wait call forward, call hold, call divert, call
conference is satisfied the users.

103

Recommendations

 The availability of recharge voucher should be made available when required by the
customers. As this give the good impression about the company.

 The network coverage is another asset for the company‘s image, which needs to be
preserved in future.

 The overall image of the customer care services was found to be good but with some
loopholes related to delays in problem solving.

 The company should be more prompt in handling the queries and problem of the
customer, which is vary essential for the prepaid card so as to retain the customers
with the company in future.

 The customer care executives should be more efficient in handling the customer and
also more friendly and polite their conversation, while dealing with the customer.

 After sales service is required to be maintained properly, which is not up to the mark

 Call rates is affordable so it should be maintained at this level.

 Many people are using mobile, but majority of them are not aware of the technology
they are using. Many tines it happens that a person doesn‘t know which technology
satisfied his need. Hence awareness should be created among them regarding
advantages and differences in the technology.

 Supplementary facilities like call wait, call forward, call hold, call divert, call
conference should be made more effective to attract customers.

104

CONCLUSION
After analysis and interpretation of the data it can be concluded that Tata
Docomo is providing a broad range of various schemes ranging from international
calling to hello tunes. This is the critical factor to attract various customers. Wide
range of schemes is also leading to increase in number of customers with rapid pace
for Tata Docomo.

Tariff charges introduced by the Tata Docomo are found to be cheaper than
other services. Tata Docomo has emerged as a giant killer due to their tariff plans
and heading towards the position of dominator.

Tata Docomo is providing some unique features and services like pay per
second, SMS per character, pay per site plans that are making them being different
from their competitors.

Awareness of the Tata Docomo is spreading widely among people due to
their promotional activities. Buyers are now insisting for cheaper plans or threatening
to opt out.

Majority of the customers are satisfied with the services of the Tata Docomo
and they are not ready to switch on to other service providers.

105

ANNEXURE

Questionnaire

Personal details:

Name:

Address:

Occupation:

Gender: Male ( ) Female ( )

Q.1) Are you using mobile?

a) Yes b) No

Q.2) Does it really matter whether you go for GSM or CDMA?

a) Yes b) No

Q.3) How would you rate the voice quality of your GSM mobile connection?

a) Excellent b) Good

c) Average d) Bad

e) Worst

Q.4) How would you rate network coverage strength on GSM mobile
connection?


c) Average d) Bad

e) Worst

106

Q.5) How would you rate supplementary facilities like call wait, call hold, call
forward, call divert, call conference on GSM mobile connection?


c) Average d) Bad

e) Worst

Q.6) How would you rate internet connectivity and data transfer service on
GSM?


c) Average d) Bad

e) Worst

Q.7) How would you rate security and confidentiality regarding call theft on
GSM mobile connection?


c) Average d) Bad

e) Worst

Q.8) How would you rate dual personal and business number facility on GSM
mobile connection?


c) Average d) Bad

e) Worst

107

Q.9) How would you rate tariff rate of your Tata Docomo prepaid connection?


c) Average d) Bad

e) Worst

Q.10) How would you rate STD tariff plans of Tata Docomo communication?


c) Average d) Bad

e) Worst

Q.11) How would you rate the customer care service of Tata Docomo mobile
connection?


c) Average d) Bad

e) Worst

Q.12) According to you what is the biggest strength of GSM mobile?

a) Voice clarity

b) Cheaper internet facilities with less expensive handsets

c) Cheaper handsets with more features.

d) Less chances of handset theft.

108

Q.13) According to you what is the biggest weakness of GSM mobile?

a)Less flexibility of changing service provider.

b)International roaming very limited.

Q.14) Based on your experience with GSM technology are you likely to
recommend GSM technology to your friends and relatives who may be
planning to purchase a new mobile?

a) Yes b) No c) Can‘t say

Q.15) Is Tata Docomo prepaid voucher easily available at retailer outlet?
a) Yes

b) No

c) Sometimes not available

Q.16) How would you rate international roaming facility on GSM mobile
connection?


c) Average d) Bad

e) Worst

Q.17) Introduction about Tata Docomo is through

a)Family b)Friends c)Media

Q.18) Attractiveness of customers towards Tata Docomo

a) Yes b)No

109

Q.19) Opinion regarding tariff plan offer by TATA DOCOMO.

a) Average

b) Good

c) Excellent

Q.20) Opinion towards paisa/second pulse

a) Satisfied b) Strongly

c) Dissatisfied d) strongly dissatisfied

Q.21) Suggest others to take Tata Docomo

a) Yes b) No

Q.22) Connectivity of Tata Docomo

a) Excellent b)Average c)Good

Q.23) Awareness of Tata Docomo

a) Yes b) No

110

WEBLIOGRAPHY:

 www.tatadocomo.com

 www.mobilenetwork.com

 www.divein.tatadocomo.com

 www.fonearena.com

BIBLIOGRAPHY:
 Digit (monthly magazine)

 Times Of India

 Hindustan Times

Internet Sources
Telecom Regulatory Authority of India. [Online] [Cited: 15 January 2010.]
http://www.trai.gov.in/trai/upload/Reports/1/report31jan06.pdf.

Indian Development Regulatory Authority. [Online] [Cited: 15 January 2010.]
http://www.idra.it/garnetpapers/C06Sumanjeet_Singh.pdf.

References
Telecom Regulatory Authority of India, Information note to the Press (Press
Release No. 61 / 2007), 20 Jun 2007
TRAI, (Press Release No. 71 / 24th August 2010)
TRAI reports
Voice and Data Magazine

111

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