Critical Success Factors of Mobile Telephony Companies

deprecative SUCCESS FACTORS OF THE restless telephony COMPANIES OPERATING IN THE east realm BY AMARTYA DHAR(08BS0000240) ICFAI BUSINESS civilise 10. 12. 09 CRITICAL SUCCESS FACTORS OF MOBILE TELEPHONY COMPANIES OPERATING IN THE EASTERN REGION SUBMITTED BY AMARTYA DHAR(08BS0000240) SUBMITTED TO PROF BHASKAR BASU 2 defraud India, the worlds quickest- ontogenesis liquid run grocery, has tag oned a memorialize 16. 02 zillion fresh radiocommunication indorsers in work on 2009, which argon the highest ever assets in a hit calendar month till now.As the hoidenish continues to add slightly 10-11 trillion sunrise(prenominal) connections exclusively(prenominal) month, the target of 500 trillion tele forebode subscribers by 2010 is judge to be met in advance. 3 INTRODUCTION The Indian meandering(a) telephony constancy is extremely free-enterprise(a) with change magnitude turn of players the companies ar on the lookout for calculates polariating their milita ry dish from the competitors. When a trading takes a return to securities constancy, whether it is a basic product homogeneous corn or a highly engineered pass homogeneous the digital camera the f rangernity must demand the product itself stimulate (Frances X. Frei HBR April 2008).With price cuts and attractive rental schemes organism offered by for each one and every improvement provider the two above mentioned meanss argon no longer the factors which can check a large consumer handbag . That is wherefore the wandering(a) telephony companies argon always on the lookout for factors which can bless them a competitive edge. This project is an social movement to find out the precise victor factors which be necessary for the achievement of a expeditious telephony comp both in the present scenario. The data shit been tranquil through puntary research , radical research with the help of questionnaires was also done. authorized INDIAN TELECOM SECTOR SCENARI O Indias telecommunication sphere has made quick progress since the announcement of the National telecom Policy 1999 (NTP-1999). Since 2000, the telecom arena has been a report contri unlessor to the Indian thriftinesss impressive performance registering bear on high emergence orders. Predominantly, everyplace the function three classs, the telecom sphere has heavy(p) remarkably in the range of 29% 47%. Growth in active c all told told ins was the principal driver for telecom proceeds in the generalwealth as they bear been in other parts of the world.Currently, India continues to be one of the fastest growing telecom markets in the world. A progressive regulatory regime, network expansion by streetwalkers, lessening in tariffs and cost of hand put downs, which essenti completelyy make the get hold of affordable for the universal theatrical rolers, all acted as demand booster to the yield of the telecom sector. Growth of the telecom empyrean in India Year (End regard) 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Mobile situated Total Additions (during calendar course) 21. 84 (28. 5) 41. 96 (42. 4) 65. 54 (46. 7) 94. 65 (46. 0) 129. 21 (43. 0) 35. 61 56. 5 98. 78 165. 11 261. 09 391. 76 40. 92 41. 42 41. 54 40. 75 39. 42 37. 96 76. 53 98. 37 140. 32 205. 86 300. 51 429. 72 5 The peregrine sector has prominent from around 10 one one one thousand one thousand one thousand thousand million million million subscribers in 2002 to around 35. 61million in 2003-04. The year 2004 was a watershed year for the persistent-line serve in India, as mobile subscribers outnumbered inflexible predict subscribers. In October 2004, the number of mobile call off users in India has crossed the number of fixed-line subscribers for the start time. So the year 2004 can be viewed upon as a landmark year in the history of Indian mobile telephony.Today, the mobile subscribers argon not notwithstanding much more than the land-line subscri ber in the country, but their number is also increasing at a much hurrying abuse. This was along the expected lines as, for the past hardly a(prenominal) years, mobile recollect subscriptions ar growing at much hurrying rate than fixed phone subscriptions with almost all leading operators localiseing more on radio set. Consequently, between jar against 2005 and March 2009, the country has added around 335 million new wireless subscribers to reach a total of 391. 76 million however, the fixed line subscriptions seduce declined by 3. 46 million, down to 37. 6 million over the akin period, part reflecting the substitution effect. During the year 2008-09 around 0. 13 million aver days subscribers per month surrendered their land-line phone run except in the month of March which witnessed net additions of0. 23 million new subscribers. However, the telecom analysts opine that the fixed line telephony segment is definitely poised for growth in the advent years as the remem ber operators argon increasingly focusing on enhancing broadband penetration directs in the country and tone at introducing new value added services to enhance the experience of nodes.BSNL is planning to use new technologies such as profits protocol television (IPTV) for tapping the fixed-line market. Tele-density Tele-density (the number of earpiece subscribers per 100 people)grew initially slowly from 7. 2 in March2004 to 12. 8 in March 2006, but in that locationafter galloped to a level of 36. 9 in March 2009 . provided such remarkable achievement, it is necessary to pecker that India still lags far behind countries worry Brazil and mainland mainland China, where the tele-density is over 50. Chinas subscriber primary is whopping.According to the Chinas Ministry of Information persistence (MII), by the end of calendar 2007, Chinas gross subscriber musical theme consisting of fixed and mobile users had fey 912 million. Of the gross subscribers stem, mobile subscribe rs excite numbered 547 million and 6 fixed-line subscribers close to 365 million at the end of declination 2007. However, Indias tele-density is much higher compared to the neighbour countries like Pakistan, Bangladesh and Nepal. The telecom subscriber base in the fiscal year 2008-09 has reached a new milestone, as more than 129. 1 million telephone subscribers get to been added during April 2008 March2009 registering a growth of 43%. As indicated in the Table , the growth of mobile phone subscribers during the fiscal year 2008-09 has been phenomenal at 50%. Total subscribers & Teledensity In India 7 Monthly Growth Rate Of Indias Telephone subscribers 2008-09 The mobile subscriber base in the country is growing at such a fast pace that mobile operators are breaking the record for net additions almost every second month. India, the worlds fastest-growing mobile services market, has added a record 16. 2 million new wireless subscribers in March 2009, which are the highest ever a dditions in a wholeness month till now. As per telecom analysts, this was the highest growth recorded within a 30-day period in any country. The preceding(prenominal) best was 15. 41 million in January 2009. Consequently, the total number of mobile subscribers (GSM, CDMA & WLL (F) at the end of March 2009 has touched 391. 76 million as compared to 315. 31 million in September 2008 and 261. 09 million in March 2008. In youthful years, smaller towns pack fuelled further growth in mobile telephony .An interest revelation is that currently, the cellular subscriber base is growing at a hurrying rate in Circles B and C as compared to Circle A and metropolitan cities. Interestingly, the bulk of the new mobile users are from the folksy areas. As the country continues to add about 10-11 million new connections each month, the target of 500 million telephone subscribers by 2010 is expected to be met in advance. 8 RECENT DEVELOPMENTS Acquisitions Sahara India Investment fraternity has acquired 11. 7% imperil in Chennai-based telecom company STel Ltd, for an undisclosed issue forth.STel has licences to operate in several northern and eastern states. As per telecom analysts the deal can be worth around Rs 250 crore, if STels stake sale in Bahrain telecommunicationmunications earlier this year is taken as the benchmark. Cell anticipate for country-bred Areas A mobile phone that can be charged by a common pencil bombing cell go forth be launched by next year. Techtium, the Israeli hybrid battery manufacturer is having discussions with various cellular phone manufacturing companies to make and market these low-cost handsets.This applied science allow be revolutionary, especially for rural areas in countries where availability of power is a major problem. The company has already launched a mobile phone in collaboration with Philips, which not but runs on the atomic number 3 battery, but also uses a single AAA battery as aback-up option. Investments Telecom player Aircel Ltd go forth be put Rs 1,000 crore in Andhra Pradesh (AP) by 9 celestial latitude 2009, as part of its $5 jillion pan-India expansion plan spread over the next 3 to 5 years. The amount will be used to variety base stations, install switches, realize a data centre and enhance sell presence in AP.New Ventures Indias fifth largest telecom service provider, Aircel has launched its GSM mobile services in Indias fiscal capital, Mumbai, Maharashtra. The company is the s progenyh service provider in Mumbais saturated market and has to compete with six well completed telecomcompanies Airtel, MTNL, Vodafone Essar, Idea, Reliance, Tata Teleservices and Loop Mobile. Aircel has around 1,000 cell sites in Mumbai and will be increasing it to around 2,000 sites by the year-end. The company has presence in 17 circles among 22 circles in the country. Maxis communications (Malaysia) holds a majority stake of 74% in Aircel.The company commenced operations in 1999 and became the le ading mobile operator in Tamil Nadu within 18 months. Aircel began its outbound expansion in 2005 and met with unprecedented achievement in the Eastern frontier circles. Tata communications (formerly VSNL) an Rs 800 crore data and communications service provider company, has announced its participation in the $600 million new West AfricanCable System (WACS). The puddle includes Angola Telecom, Broadband Infraco, Cable & wireless, MTN, Telecom Nambia, Portugal Telecom, Sotelco, Telkom SA, Togo Telecom and Vodacom.The operators train recently signed a construction and maintenance agreement and preparation contract for the implementation of the WACS. ZTE Chinese telecom equipment provider, which has provided infrastructure to Indian telecom companies like Reliance Communication, Tata Teleservices, Aircel and Loop Telecom, has found a novel way to expand business in India. Recently, ZTE has tied up with China Development Bank for financing mobile operators in India for upgradation of the telecom infrastructure.The new dodging select by ZTE is not only to compete with existing, well established players like Ericsson, Nokia-Siemens, but also to development its market share in Indias fastest growing telecom sector. 10 With 35. 53 one million million million net additions during the Quarter, Total Wireless (GSM + CDMA) subscriber base change magnitude to 427. 28 Million at the end of June-09, and wireless Tele-density reached 36. 64. 4. Wireline subscriber base declined to 37. 54 Million at the end ofJune-09, taking the wireline teledensity to 3. 22. 5. lucre subscribers increased to 14. 5 million at the end of June2009 registering a quarterly growth rate of 3. 80%. However, this growth rate is lower than the growth rate seen in the foregoing quarter (5. 3%). 6. component of Broadband subscription in total profits subscription increased from 46% in Mar-09 to 47% in June-09. 86. 66% of the Broadband subscribers are using Digital Subscriber channel (DSL) technology. 7. Average Revenue Per User (ARPU) for GSM-Full Mobility service declined by 10% from Rs. 205 in QE Mar-09 to Rs. 185 in QE Jun-09. 11 8. ARPU for CDMA Full mobility service declined by 7. 2% from Rs. 99 in QE Mar-09 to Rs. 2 in QE June-09 9. ARPU for dialup Internet usage increased by 2. 97% from Rs. 236. 47 in QE March 2009 to Rs 243. 50 for the quarter endingJune 2009 10. MOU per subscriber for GSM Full mobility service continued to orient a declining trend. It declined by 6. 19% from 484 in QE Mar-09 to 454 in QE Jun-09. The outgoing MOUs declined by 5. 30% and incoming by 7. 04%. 11. MOU per subscriber for CDMA-full mobility service declined by 4% from 357 (Q. E March 2009) to 342 (Q. E June 2009). The Outgoing MOUs declined by 2. 7% and Incoming MOUs declined by 5. 2%. 12. utter(a) Revenue (GR) nd Adjusted unrefined Revenue (AGR) of Telecom Sector for the QE June-09 has been Rs 39,108. 33 Crore and Rs. 29,732. 52 Crore viewively. There has been a decline of 3. 3% in GR as compared to previous quarter. AGR has shown slight increase of 0. 02% vis-a-vis previous quarter. 13. Average licence fee as percentage of AGR is 8. 43% in June-09 as against 8. 4% in previous quarter. 14. The wireline dish Providers met the QoS parameters of Customer cover run (Closures)and chemical reaction time to the customer for assistance %age of calls answered (electronically)within 20 sec 15.The performance of wireline servce providers improved as compared to the previous quarter, in respect of parameters supplying of Telephones, Faults repaired by next working day,Mean prison term to Repair, Call Completion Rate, Customer Care Services (Shifts and Additional Facilities) and Time taken for refund of deposits 16. The wireline service performance has deteriorated in this quarter, as compared to the previous quarter, in respect of Faults incidences, Metering & billing credibility, Response time to the customer for assistance %age of calls answered (electron ically) within 40 sec & %age of calls answered by operator (voice to voice). 2 Market Share Rural & Urban 25. 225. 6% 74. 4% 13 Service Area wise entryway (Wireless +Wireline) Subscribers 14 Subscribers (Rural & Urban) & Market share 15 List of Cellular Mobile (GSM & CDMA) Service Providers currently providing service As on thirtieth June 2009 The operators currently operating in Kolkata are Airtel,Vodafone ,Tata Teleservices,Idea, Reliance telecom, Aircel class, BSNL etc. Bharti is the leading service provider in this region . 16 CRITICAL SUCCESS FACTOR censorious achiever Factors (CSFs) are the comminuted factors or activities required for ensuring the achiever your business. The term was initially used in the world of data compendium, and business analysis. small Success Factors pass been used significantly to present or identify a few mainstay factors that organizations should focus on to be successful. minute success factors refer to the limited number of areas in wh ich satisfactory pull up stakess will tell successful competitive performance for the individual, department, or organization.Identifying CSFs is important as it allows pixilateds to focus their efforts on build their capabilities to meet the CSFs, or even allow firms to decide if they suck the capability to build the requirements necessary to meet diminutive Success Factors (CSFs). Types of hypercritical Success Factor There are cardinal basic types of CSFs They are 1. patience CSFs resulting from specialized industry characteristics 2. Strategy CSFs resulting from the chosen competitive dodging of the business 3. Environmental CSFs resulting from sparing or technological changes and 4. worldly CSFs resulting from immanent organizational needs and changes.Five key sources of Critical Success Factors MAIN ASPECTS OF Critical Success Factors and their use in analysis CSFs are tailored to a firms or managers particular situation as different 17 situations (e. g. industry , division, individual) lead to different critical success factors. Rockart and Bullen presented five key sources of CSFs 1. 2. 3. 4. 5. The industry, rivalrous strategy and industry countersink, Environmental factors, worldly factors, and managerial touch (if considered from an individuals drive of view). to each one of these factors is explained in greater detail below. The Industry Critical success factorIndustry There are many CSFs common to all companies operating within the alike industry. Different industries will have unique, industryspecific CSFs An industrys set of characteristics bound its own CSFs Different industries will thus have different CSFs, for prototype research into the CSFs for the Call centre, manufacturing, retail, business services, health care and education sectors showed each to be different after starting with a hypothesis of all sectors having their CSFs as market orientation, learning orientation, entrepreneurial care title and organizatio nal flexibility.In reality each organization has its own unique goals so while these may be some industry standard not all firms in one industry will have identical CSFs. Some traffic associations offer benchmarking across possible common CSFs. Competitive strategy and Competitive position or strategy The nature of position in the marketplace or the adopted 18 industry position Critical success factor strategy to gain market share gives rise to CSFs Differing strategies and positions have different CSFs Not all firms in an industry will have the same CSFs in a particular industry.A firms current position in the industry (where it is relative to other competitors in the industry and also the market leader), its strategy, and its resources and capabilities will define its CSFs The values of an organization, its target market etc will all impact the CSFs that are detach for it at a given even in time. Environmental Factors Critical success factor Environmental changes Economic, re gulatory, governmental, and demographic changes create CSFs for an organization. These relate to environmental actors that are not in the control of the organization but which an organization must consider in developing CSFs Examples for these are the industry regulation, political development and economic performance of a country, and population trends. An example of environmental factors affecting an organization could be a de-merger. Temporal Factors Temporal factors These relate to short-term situations, much crises. These CSFs may be important, but are usually short-lived. Temporal factors are episodic or one-off CSFs resulting from a specific event necessitating their inclusion.Theoretically these would include a firm which lost executives as a result of a plane crash requiring a critical success factor of make the executive Critical success factor Critical success factor Critical success factor 19 group. Practically, with the evolution and integration of markets globally , one could urge that impermanent factors are not temporal anymore as they could exist on a regular basis in organizations. For example, a firm crisply building its business internationally would have a need for a affection group of executives in its new markets.Thus, it would have the CSF of building the executive group in a specific market and it could have this every year for different markets. managerial Position Critical success factor Critical success factor Managerial role An individual role may generate CSFs as performance in a specific managers area of business may be deemed critical to the success of an organization. Managerial position. This is important if CSFs are considered from an individuals point of view.For example, manufacturing managers who would typically have the following CSFs product quality, inventory control and cash control. In organizations with departments focused on customer relationships, a CSF for managers in these departments may be customer rel ationship management. INFORMATION FOR WRITING CRITICAL SUCCESS FACTORS (CSFs) For the organization following the CSF method, the base of operations for writing dependable CSFs is a good sagaciousness of the environment, the industry and the organization In order to do so, this requires the use of reading that is readily available in the universal domain.Externally, industry culture can be sourced from industry associations, news articles, trade associations, prospectuses of competitors, and legality/analyst reports to name some sources. These would all be helpful in building knowledge of the 20 environment, the industry and competitors. Internally, there should be enough sources available to management from which to build on their knowledge of the organization.In most cases, these wont even have to be anything published as managers are expected to have a good understanding of their organization Together, the external and internal information already provides the basis from wh ich discussion on CSFs could begin. USING CRITICAL SUCCESS FACTORS FOR strategical AND BUSINESS PLANNING I have considered t following factors to be the critical success factors for the mobile service providers of the eastern region. 1) CONCEIVE AND DESIGN a)GSM b)CDMA 21 c)3G 2) gentlemans gentleman RESOURCE 3) MARKET a) Advertising b) gross revenue offers c) Network Coverage. ) Customer Service e) judge Added Service. 4) MANAGEMENT a) Planning. b) Organizational Structure. 5) FINANCE a) calculate System. 22 FINDINGS The cellular subscriber base is growing at a faster rate in West Bengal, Bihar, Kerala,Himachal Pradesh, Punjab as compared to Maharashtra, Tamilnadu, Andra Pradesh and metropolitan cities. The number of subscribers for the urban sector is more for every service provider in comparison with the rural sector, the periodic addition of new subscribers for the urban sector is also more than the rural sector . The period april 2008-march2009 has saw a phenomenonal addit ion of 129. 1 million telephone subscribers, an increase of 43%. Total wireless (GSM + CDMA) subscriber base increased from 391. 76 million in march -09 to 427. 29 million at the end of june-09, showing a growth of 9. 07%. Airtel and Vodafone was found out to be leading service providers of Kolkata. 23 REFERENCES 1)www. trai. gov. in 2)Harvard line of business Review (Article by Frances X. FreiApril 2008) 3)Harvard Business Review(Article by Christopher W. HartMarch 2007) 4)www. hindu. com 5)Competitive strategy by Michael E. Porter 6)Competitive Advantage by Michael E. Porter 24