Marketingreport Mobileserviceindustry1 111110033743 Phpapp02

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Executive Summary

The mobile services industry is one of the fastest growing industries in Sri Lanka with

over 14 million users. The industry provides telecommunication and information

services, including voice calls, short message service (SS!, internet access, picture

and video messaging, and other data services, to "# percent of the Sri Lankan

population.

$ue to the ubi%uity of mobile phones, mobile service providers can play a key role in

helping to shape a more sustainable society. &ot only do mobile services providers

bring access to telecommunications and information and that drives sustainable

development in emerging markets, but these companies also develop products andservices that can enable a low'carbon society.

The aim of this report is to assess the mobile industrys current state and develop a

business rationale and framework for sustainability that fits the uni%ue needs of the

mobile services industry. )n addition, recommendations are given that can further the

mobile industrys sustainability agenda.

obile Services )ndustry *ackground The mobile services industry is defined as

those companies, which together enable the provision of telecommunication,

information, and entertainment services including voice, internet, SS, te+t, and

other data services.

)t is comprised of thousands of companies offering mobile services worldwide some

of the largest include obitel, $ialog, -irtel, and tisalat. obitel is narrowly the

largest mobile operator by revenue. /owever, $ialog is the largest in terms of

subscribers and coverage, with over 1.0 million subscribers.



Table of Contents

Chapter 01

1. )ntroduction to the Local )ndustry. obile service providers' )ndustry overview2. )ntroduction to the *usiness nvironment4. )mportance of *usiness nvironment5. &ew Trends in *usiness nvironment3. acro nvironment implication on obile service providers

Chapter 02

. Latest changes in acro nvironmental factors (Last five years!

). Latest changes in 5olitical and Legal factors)). Latest changes in conomic factors))). Latest changes in Social'cultural factors)6. Latest changes in Technological factors6. Latest changes in &atural factors

6). Latest changes in $emographic factors

Chapter 03

7. arketing i+ strategy on obile Service providers". /ow they overcome these challenges ($uring the last five years!

). 5olitical and Legal factors)). conomic factors

))). Social'cultural factors)6. Technological factors6. $emographic factors

Chapter 04

1#. 8ecommendations for the obile Service 5roviders11. 9onclusion



ntro!uction to the "ocal n!ustry

#hat is an n!ustry$

-ny type of conomic -ctivity producing :;;$s or S86)9S.

)t is part of a chain < from raw materials to finished product, finished product to

service sector, and service sector to research and development.

)t includes -:8)9=LT=8, -&=>-9T=8)&: and S86)9s.

Types of in!ustry

-ccording to the 9entral *ank annual report in Sri Lanka there are four types of )ndustry?

• ining and @uarrying

• anufacturing (i.e. processing of agricultural products, >actory industry,

9ottage )ndustry!

• lectricity, :as A Bater

• 9onstruction



%obile Service n!ustry &vervie'.

obile industry it has been observed that in the history of the telecom industry,

mobile telephony has made a greater difference to the lives of more people, more

%uickly than any other technology.

-s the mobile industry globally crossed five million subscribers in #1# ' an

important milestone ' the prospect of a whole world consisting of networked people is

becoming a real possibility. The )nternational Telecom =nion ()T=! predicts that

within the ne+t decade, if not earlier, global teledensity will surpass 1##C. That

would however not mean that everyone has a phone, because many may have more

than a single handset or multiple S)s.

/owever, with mobile technology spreading fast due to growing affordability and

ease of adaption, at the current rate of mobile phone adoption, it is likely that sooner

than later, anyone who wants a mobile phone will have one.

-nd as mobile networks widely offer 2: broadband, everyone will have access to the

)nternet, and as e+pressed by the )T=, that would mean Dmobile telephony would

have done more than anything else in history, to advance the democratiEation of

telecoms, and all that comes with it.F -n interesting development is that the reducing

prices and siEe of obile 5hones and the increasing power and versatility of the

mobile handsets, is leading to the obile service providers and the mobile handset

converging into a new range of devises that combine power, versatility and greater

portability.

This convergence has increased the power of the mobile handset producers who are

becoming the a+is around which operators, platform vendors, software andapplication developers, operating system developers, standards alliances and

9hipG5rocessor manufacturers etc. are building their businesses. )mplications of that

development can be significant, and a potential 9onse%uence could be the possibility

of the importance of voice calls as a source of revenue declining and stress on the

revenue streams of operators being applied by the handset manufacturers.



The challenge then is for the mobile operators to assiduously review their e+isting

business models and redefine their game plan to match the emerging challenge. -n

inactive or DsleepyF operator would obviously be left behind, and the future ready

operator would be best placed to take on the future. >or Srilankan obile service

providers then, these would be interesting times.

2006 2007 2008 2009 2010

0

500

1000

1500

2000

2500

3000

3500

1291

1668

25162769

3238

%obitel Subscriber (ro'th

Subscriber growth inmobitel

2006 2007 2008 2009 2010

0

1000

2000

3000

4000

5000

6000

7000

8000

2700

42004900

6100

6950

)ialo( subscriber (ro'th

Dialog subscriber

growth



%&*TE"

obitel was incorporated in 1""2 as the second mobile telephone provider in the Sri

Lankan market. ;riginally collaboration between Sri Lanka Telecom and Telstra,

obitel has been wholly owned by SLT since &ovember ##. The company slogan

is HBe 9are -lways.H

obitel is considered to be the countryIs most dynamic mobile telephone operator and

is known the I&ationalI mobile service provider in Sri Lanka. Since being ac%uired by

Sri Lanka Telecom in ##, it has grown in leaps and bounds and is now on par technologically with the very latest in the telecommunications industry.

The company is continuing on its strategy which is positioned around Jvalue

innovation and Jcustomer centricity. obitel has a very strong brand image, with

high visibility at strategic locations.

obitel has shown their competitive position over the years in terms of formidable

distribution, product suit and brand. The features and benefits built into the packages

that they offer are all designed carefully, with the customerIs best interest regarded

highly.

>ollowing the successful implementation and operation of an -5SGT$- network

in the country, obitel launched its :S operations in Kanuary ##4 with the

deployment of a fully'fledged :S network in the 7## /E and 17## /E band,

which is $:G:58S enabled. )n ##0 and ##3, obitel traded the 7## /E band

for slots made available from the "## /E range. Bith this enhancement, obitel

embarked on a field trial of 2: at the 1st )nternational *uddhist 9onference held in

##3, setting the stage for the launch of its 2: services in Sri Lanka.

)nvestments committed to date for this state'of'the'art technology to provide 2: and

:S totals over =S ## million. This included increasing the present number of

base stations from 3## to 1,0## by the end of ##7.

+et'or,

http://en.wikipedia.org/wiki/Telstra


http://en.wikipedia.org/wiki/Advanced_Mobile_Phone_System


http://en.wikipedia.org/wiki/Digital_AMPS







obitel currently operates a 2.0: network with /S$5-G/S=5- support and

downlink speeds of up to 2.3 bitGs and uplink speed up to 1.##bitGs. -ccording to

speed test. obitel is the operator to issue the fastest internet connections in Sri

Lanka via /S5-, while they have also fully tested out 4bitGs downlink /S5-

); technology in 9olombo. )t is also serving customers with over 10## :S and

4## 2.0: base stations island wide. ;n 3 ay #11, obitel became the first

company in South -sia to trial a network based on 4: technology.

Taffies an! pac,a(ers

obitel offers S-8T prepaid and $ouble post paid packages, while the =pahara

package was available for Sri Lankan government workers for a limited time period.

=pahara offered up to five similar Subscriber )dentity odules to be used in the

family of the principle customer, at lower rates.

-alue a!!e! services

obitel offers a variety of value added services?

B-5, :58S,S

9losed =ser :roup services,

SS banking,

'channeling,

directories,

2 2.0: services (video calls, video message, /S$5- with uplink up to 1.##

bitGs and downlink up to 2.3 bitGs!,

enu based services (;T-! which are updated to the S) card,

)nternational 8oaming facilities in over 17# countries while including special

services such as the 6oice &otification messages which alert a person on roaming

status and other features such as 9all /ome and SS 8oaming.

'>a+

http://en.wikipedia.org/wiki/Subscriber_Identity_Module

http://en.wikipedia.org/wiki/Wireless_Application_Protocol

http://en.wikipedia.org/wiki/HSDPA


http://en.wikipedia.org/wiki/Subscriber_Identity_Module

http://en.wikipedia.org/wiki/Wireless_Application_Protocol




2 -pps (5owered by :oogle apps!

'tunes

Live scores of cricket matches

)"&/

$ialog 5L9 is Sri LankaIs largest telecommunications service provider, which

operates $ialog obile, the countryIs largest mobile phone network with over 3

million subscribers. $ialog is a subsidiary of -+iata :roup *erhad and $ialog was

Listed on the 9olombo Stock +change in ##0 and was the countrys first =S$ 1

*illion market capitaliEed company on the 9olombo Stock +change in terms

of market capitaliEation. /ans BiMayasuriya is the $irectorG:roup 9hief +ecutive of

$ialog plc.

$ialog launched its services in 1""0 as the 4th entrant to Sri Lankas 9ellular arket

and was the first digital network in South -sia. $ialog was also the first operator in

the region to deliver international roaming in 1"". $ialog obile presently has the

largest number of subscribers and revenue share.

)n #1# the company received the highest H5latinumH rating in the countries first'ever

9orporate -ccountability )nde+. The company operates

on .0:, 2:and 2.0: communications networks, and was the first company to launch

commercial 2: and /S5-N operations in South -sia. )n addition, $ialog recently

announced that the company has switched on its 4: LT &etwork in 9olombo

becoming the first LT pilot network in South -sia..

)n addition to its core business of mobile telephony, the company operates a range of services including $ialog T6, the countryIs $irect To /ome Satellite T6 service and

http://en.wikipedia.org/wiki/Sri_Lanka



http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/Axiata_Group_Berhad

http://en.wikipedia.org/wiki/Colombo_Stock_Exchange

http://en.wikipedia.org/wiki/Market_capitalization

http://en.wikipedia.org/wiki/Hans_Wijayasuriya

http://en.wikipedia.org/wiki/South_Asia

http://en.wikipedia.org/wiki/International_roaming

http://en.wikipedia.org/wiki/2.5G

http://en.wikipedia.org/wiki/3G





http://en.wikipedia.org/wiki/HSPA%2B



http://en.wikipedia.org/wiki/3GPP_Long_Term_Evolution

http://en.wikipedia.org/wiki/Direct_To_Home

http://en.wikipedia.org/wiki/Satellite_TV


http://en.wikipedia.org/wiki/Telecommunications

http://en.wikipedia.org/wiki/Axiata_Group_Berhad

http://en.wikipedia.org/wiki/Colombo_Stock_Exchange

http://en.wikipedia.org/wiki/Market_capitalization

http://en.wikipedia.org/wiki/Hans_Wijayasuriya

http://en.wikipedia.org/wiki/South_Asia

http://en.wikipedia.org/wiki/International_roaming





http://en.wikipedia.org/wiki/HSPA%2B


http://en.wikipedia.org/wiki/3GPP_Long_Term_Evolution

http://en.wikipedia.org/wiki/Direct_To_Home

http://en.wikipedia.org/wiki/Satellite_TV



$ialog :lobal which provides international telecommunication services. $ialog

*roadband offers fi+ed'line and broadband internet services, whilst $ialog Tele'

)nfrastructure is the companys national Telco communications arm.

$ialog was the first mobile operator to cover the Kaffna peninsula in &orthern Sri

Lanka within "# days of the ceasefire agreement in ## and again in ##" was the

first mobile operator to e+tend its :S network to the areas in the &orth and ast

5rovince where the war was fought, and presently has 7#C market share in the region.

$ialog is an investor under the sponsorship of the *oard of )nvestment of Sri Lanka

and has invested over 1 billion =S dollars towards the development of

telecommunications infrastructure in Sri Lanka, and is one of the largest investors in

the island while being the largest investor in the telecom sector.

• $ialog is also the official Sri Lankan partner of the mobile operator 6odafone.

$ialog obile has island wide :S coverage with over ### .0: Sites. )n addition$ialog offers 2: and 2.0: coverage in Sri Lanka with over 1### 2: sites which

support video calls, mobile T6 and broadband internet. )n addition, 8ecently $ialog

Launched a pilot 4: LT &etwork becoming the first operator in South -sia to touch

e+position of Long Term volution (LT! service. )ts 4: pilot network has

demonstrated the delivery of over 1## bps in indoor demonstration mode and 4# <

0#bps under outdoor mobile conditions, from 9olombo 1 to 9olombo 4.

http://en.wikipedia.org/wiki/Broadband_internet

http://en.wikipedia.org/wiki/Jaffna_peninsula

http://en.wikipedia.org/wiki/Sri_Lankan_Civil_War#2002_peace_process

http://en.wikipedia.org/wiki/GSM

http://en.wikipedia.org/wiki/Northern_Province,_Sri_Lanka#North-East_Province


http://en.wikipedia.org/wiki/Market_share

http://en.wikipedia.org/wiki/Vodafone






http://en.wikipedia.org/wiki/Broadband_internet

http://en.wikipedia.org/wiki/Jaffna_peninsula

http://en.wikipedia.org/wiki/Sri_Lankan_Civil_War#2002_peace_process




http://en.wikipedia.org/wiki/Market_share

http://en.wikipedia.org/wiki/Vodafone







TE"

-irtel Lanka Limited is a subsidiary of *harti -irtel Limited, the fifth largest mobile

operator in the world, with appro+imately ## million mobile customers as of ;ctober

#1#. *harti -irtel has been featured in >orbes -siaIs >ab 0# list, rated amongst the

best performing companies in the world in the *usiness Beek )T 1## list ##, and

voted as )ndiaIs most innovative company in a survey by The Ball Street Kournal.

-mali &anayakkara is the 9; of -irtrl Sri Lanka.

-irtel Sri Lanka commenced commercial operations of services on 12 Kanuary ##".

:ranted a license in ## in accordance with the Sri Lanka Telecommunications -ct

&o. 0 of 1""1, it is also a registered company under the *oard of )nvestment Sri

Lanka. =nder the license, the company provides digital mobile services to Sri Lanka.

This is inclusive of voice telephony, voice mail, data services and :S based

services. -ll of these services are provided under the airtel brand.

-irtel Sri Lanka as nationwide coverage and holds 1.4 million subscribers as of

September #1#.

*efore launching services officially, -irtel opened up their branch offices island wide

and allowed customers to book their number beforehand. >orms were given at all

branch offices and customers were given an option of choosing five numbers, out of

which one number was given based on availability. This booking system started on

Kanuary 0 and was e+pected to close on Kanuary " but all numbers had been booked by

Kanuary 7, according to notices displayed on the doors of the branch offices.

http://en.wikipedia.org/wiki/List_of_mobile_network_operators


http://en.wikipedia.org/wiki/Wall_Street_Journal



http://en.wikipedia.org/w/index.php?title=Board_of_Investment_Sri_Lanka&action=edit&redlink=1










-irtel currently uses :S and =TSG/S5- technologies. )nitially -irtel was

offering cheapest obile broadband plans starting at 0:* for 8s.""G' but later it

discontinued due lack of )nternational bandwidth and financial loss it had incurred.

;nly maMor cities like 9olombo, Oandy , :alle and -mpara are covered by 2.0:

network.

-irtel is improving their :S coverage rapidly and they have 1###N *ase Station on

operation island'wide, but they havenIt taken any steps on widening their 2: coverage

ever since their launch. -irtel started their service in &orthern Sri Lanka on ;ctober

#1#.

-irtel Sri Lanka received many legal threats from other operators as -irtel started to

offer cheaper call rates. This led the industry to a price war and all operators including

-irtel itself had posted a significant loss in the year of ##".

;n Kuly 10, #1#, T89 (Telecommunication 8egulation 9ommission! implemented a

floor price to all the operators to overcome the price war. -ll the operators increased

their call charges e+cept -irtel which filed >undamental 8ights re%uest in highest

9ourt on Kuly 1", #1# saying that this new floor price is unfair to the newcomer to

the industry. *ut, this petition got reMected by the Supreme court.

So, -irtel revised their tariff on -ugust 2, #1# for new customers, as previously they

offered 4" centsGmin within the network now itIs 8s. 1Gmin and no changes to other

network call as they offered 8s. Gmin earlier also.


http://en.wikipedia.org/wiki/UMTS


http://en.wikipedia.org/wiki/HSPA

http://en.wikipedia.org/wiki/Colombo

http://en.wikipedia.org/wiki/Kandy

http://en.wikipedia.org/wiki/Galle

http://en.wikipedia.org/wiki/Ampara



http://en.wikipedia.org/wiki/HSPA

http://en.wikipedia.org/wiki/Colombo

http://en.wikipedia.org/wiki/Kandy

http://en.wikipedia.org/wiki/Galle

http://en.wikipedia.org/wiki/Ampara



ETS"T

Sri LankaIs first 9ellular networks, then called 9elltel inaugurated its operations in

1"7". - brand name change was done on the 0th of Kanuary ## and thereafter

named HTigoH and this was transformed with ilicom disposing its -sian operations.

they are now a company fully owned and operated by the giant Telecom tisalat

Telecommunication 9orporation in the =-. )t has e+tended operations in gypt and

Saudi -rabia in the iddle ast and further into -sian markets such as )ndia,

5akistan, -fghanistan, )ndonesia and now Sri Lanka, recording over 1## million

subscribers across 17 countries offering opportunities for synergy with our other

operations in the region. tisalat officially commenced its operations in Sri Lanka on

the 0th of >ebruary #1#.

tisalat is consistently providing not only the widest coverage and an unprecedented

service, but also a host of other 6alue -dded Services. Be are dynamic and treat our

customers as our own, and consider customer service as our first priority.

The slogan of our operations is, H)tIs -bout PouQH as they make public an selection of

services to match the hearts of their customers. Their value and nurture the energy and

dynamism needed to achieve the very best in business. They look forward to future

challenges and opportunities. -s a company, they are welcoming, sociable and

friendly to customers, suppliers.



Their aim is to open up opportunities and to actively help people reach their goals.

They always deliver what we say we willed employees. They deal with people in a

clear, direct way and are always honest and fair in business dealings.

Today tisalat operates in a world where peopleIs reach is not limited by matter or

distance. They are reaching out to where it matters because with tisalat Jits about

you. -s a responsible business entity tisalat strives to go beyond the re%uired norm

to make a positive impact on society and the environment.

Through their management and operations they ensure that whatever they do, set out

to demonstrate their commitment and respect to all of thier stakeholders, communities

and environment. Their 9S8 initiatives focuses on community based investment

programmes and sponsorships. Their management and staff engage themselves with

these community proMects through professional service, as a result a continuous

commitment towards 9S8 initiatives are seen and demonstrated across the company.

tisalat carries out a range of 9S8 initiatives which range from both medium'to'long

and short'term proMects, namely ducation, 9ommunityGLivelihood $evelopment,

nvironment and $isaster 8elief.



TC

/utch mobile telecommunication provider offering customers a range of value'for

money :S services fulfilling the diverse needs of all segments. /utchison

Telecommunications Lanka (5vt! Ltd. (D/utchison Telecom LankaF! launched its

:S service in ##4, and has continuously been investing in the e+pansion of

network coverage with the aim of being a nationwide operator in Sri Lanka.

/utchison Telecom Lanka is a member of /utchison -sia Telecom which comprises

mobile telecommunications operations in the emerging markets of )ndonesia, 6ietnam

and Sri Lanka. /utchison -sia Telecom is a key part of /utchison Bhampoa :roups

telecommunications division which includes the 2 :roup comprising 2: operations in

-ustralia, -ustria, $enmark, /ong Oong, )reland, )taly, acau, Sweden and the =O.



*usiness Environment

The business environment is the aggregate of all conditions, events, and influences

that surround and affect a business firm. *usiness environment generally refers to the

e+ternal factors affecting, either positively or negatively, the operation of a firm. The

most important e+ternal factors include economic, legal, political, social and

technological factors. The environmental factors influence almost every aspect of

business, be it its nature, its location, the prices of products, the distribution system, or

the personnel policies.

*usiness environment is classified as follows? '

(a! )nternal nvironment? These are the environmental factors which include?'

1! an

! achine

2! aterial

4! anagement

(b! +ternal nvironment? they are classified as

acro nvironment

a! :overnment

b! 5olitical factors

c! Social factors

d! 9ultural factors

e! $emographic factors



f! conomic factors

icro nvironment

a! /uman resources to include Mobs, hygiene, security

b! 9ompany *oard

c! anagement structure

The %icro Environment

The microenvironment can be separated into the internal environment and the e+ternal

environment. The internal environment consists of the firms own management

structure, the organiEations strategies and obMectives, and the departments within the

company. The characteristics of the firms internal environment affect its ability to

serve its customers. The e+ternal environment comprises suppliers, marketing

intermediaries, customers, competitors and publics. -s well as obvious groups such as

shareholders, publics can also include local interest groups who may have concerns

about the marketers impact on the environment or on local employment.

The %acro Environment

9hanges in the macro'environment may not be as close to the marketing firms day'

to'day operations, but they are Must as important.

(;ften referred to as the J5ST factors in the marketing analytical conte+t, a useful

aide'memoire, although in some te+ts it is sometimes referred to as JST5!. To this

is sometimes added J9ompetitive factors and although J5ST analysis relates to a

specific organiEation J9ompetitive factors tend to be subsumed under Jconomic

factors. Such a 5ST analysis means listing all possible points, which may affect the

organiEation under review of the each 5..S.T. headings. )n order to correctly identify

opportunities and monitor threats, the company must begin with a thorough

understanding of the marketing environment in which the firm operates.



The success of every business depends on adapting itself to the environment within

which it functions. >or e+ample, when there is a change in the government policies,

the business has to make the necessary changes to adapt it to the new policies.

Similarly, a change in the technology may render the e+isting products obsolete, as we

have seen that the introduction of computer has replaced the typewriters the color

television has made the black and white television out of fashion. -ll these aspects are

e+ternal factors that are beyond the control of the business. So the business units must

have to adapt themselves to these changes in order to survive and succeed in business.

The term Jbusiness environment connotes e+ternal forces, factors and institutions that

are beyond the control of the business and they affect the functioning of a business

enterprise.

These include customers, competitors, suppliers, government, and the social, political,

legal and technological factors etc. Bhile some of these factors or forces may have

direct influence over the business firm, others may operate indirectly. Thus, business

environment may be defined as the total surroundings, which have a direct or indirect

bearing on the functioning of business. )t may also be defined as the set of e+ternal

factors, such as economic factors, social factors, political and legal factors,

demographic factors, and technical factors etc., which are uncontrollable in nature and

affects the business decisions of a firm.

5olitical

factors

Social factors

acro nvironment

>actors

conomic

factorsLegal factors



%&T+CE & *S+ESS E+-&+%E+T

There is a close and continuous interaction between the business and its environment.

This interaction helps in strengthening the business firm and using its resources more

effectively. The business environment is multifaceted, comple+, and dynamic in

nature and has a far'reaching impact on the survival and growth of the business. To be

more specific, proper understanding of the social, political, legal and economic

environment helps the business in the following ways?

a! $etermining ;pportunities and Threats? The interaction between the businessand its environment would identify opportunities for and threats to the

business. )t helps the business enterprises for meeting the challenges

successfully.

b! :iving $irection for :rowth? The interaction with the environment leads to

opening up new frontiers of growth for the business firms. )t enables the

business to identify the areas for growth and e+pansion of their activities.

c! 9ontinuous Learning? nvironmental analysis makes the task of managers

easier in dealing with business challenges. The managers are motivated to

continuously update their knowledge, understanding and skills to meet the

predicted changes in realm of business.

d! )mage *uilding? nvironmental understanding helps the business

organiEations in improving their image by showing their sensitivity to the

Technical factors$emographic factors



environment within which they are working. >or e+ample, in view of the

shortage of power, many companies have set up 9aptive 5ower 5lants (955!

in their factories to meet their own re%uirement of power.

e! eeting 9ompetition? )t helps the firms to analyEe the competitors strategies

and formulate their own strategies accordingly.f! )dentifying >irms Strength and Beakness? *usiness environment helps to

identify the individual strengths and weaknesses in view of the technological

and global developments.

+e' Tren!s in *usiness Environment

1! )ncreasing the age limit of a person therefore the demand for the healthy foods

is increasing and smoking and li%uor habits are decreasing.! )n leisure time people like to spend in rural areas.2! $emand for the take away foods are increasing.4! 5eople are addicted to do several works at the same time.0! )ncreasing the number of nuclear families in the society.3! >emales are the dominant partners in the workforce.! Onowledge of the consumer behavior is increasing.7! arriages are postponed by younger people, because of the higher education."! 5eople are more aware about the concept of S;S' Save ;ur Society.

1#! )ncreasing the number of elderly people of the society, because of that people

are more attracted to the beauty cultural activities.

"atest Chan(es in %acro Environmental actors

Chan(es in olitical an! "e(al actors



5olitical changes in the country have also meant that these markets are now open to

marketers from around the country.

&pportunities for in!ustry.

1. 5roviding free laptops to undergraduates in local universities A making it a

computer literate society

. 8eduction of Ta+s on electronics making the data G handset units much more

affordable

Threats for in!ustry

1. -d'hoc changes in government regulations impacting penetration promotions

. :overnment protection by the use of license.

- lot of new license and consumer protection schemes are introduced by the

government.

2. )ncreasing the pressure groups.

5ressure groups are more affected to the companies and marketers because they try to

achieve their targets without or with political support. (g? nvironment groups.

9onsumer groups, religious groups, tc.!

4. )nternational tariffs, rules and regulations.

0. 5ressure from 5olitical groups.

*een unable to make full use of economies of scale due to restrictions from the

governments which are in place to reduce price war among telecommunication

operators

3. :overnment initiatives of increasing data feasibility A the amount of effort

taken in terms of tackling low speed service providers and penaliEing them to

increase speeds.

. :rowth of Legal and 8egulatory 8isks.



obile service providers are faced with the risk of changes in the regulatory

environment. Some of their activities continue to be subMected to significant price and

other regulatory controls which may affect their market share, competitive position

and future profitability.

The revenue of their organiEations can even be adversely affected by the recently

introduced price revisions of voice services, broadband services, leased circuits and

backhauling services where the prices had to be slashed down due to market and

regulatory pressures towards the achievement of government obMectives of increasing

broadband penetration in the country.

Chan(es in Economic actors.

The economic environment is important to marketers because it affects the amount of

money people have to spend on products and services.

&pportunities for in!ustry.



have to look beyond the voice market to secure profitable revenue growth from

adMacent markets, both inside and outside the country.

Chan(es in Socialcultural actors.5eoples opinions and tastes are shaped by the society in which they live. )t should be

noted that societies are not made up of homogeneous populations. They contain sub'

cultures, which are beliefs and values shared by smaller groups of people. Such

groups may arise out of a common race, religion, social activity or hobby. Sub'

cultures are important to marketers insofar as they may have different consumption

habits from the rest of the population.

&pportunities for in!ustry

1. Shift of life style across the country due to improved media, technology and

communication.. &ew generations born with utmost technology around them create

opportunities for mobile broad band services to grow.2. Social networking A new media such as face book G SS over internet G

ultimedia services has gain popularity among general public across the

country.4. The mobile youth culture

obile communication and the social conse%uences associated with it

are e+perienced by individuals of many walks of life < young, old,



rich, poor, the mobile phone can serve as a status symbol and article of

fashion for its users in general . Poung people have especially come to

be embracing the technology for its symbolic significance. The mobile

phone has become an icon for contemporary teens in many countries.



Chan(es in Technolo(ical actorsobile service firms usually have a huge base of comple+ legacy systems. These

systems are disparate with their own data. )ntegration (system and data! of such

systems has been a problem. -ll this has a heavy toll on 9ustomer loyalty, 5roduct

lifecycle management, and 5rocess improvements.

&pportunities for in!ustry

1. +tensive use of technology in ducation systems G 9ommunication systems G

anufacturing G edicine etc needing data services. :reater emphasis on 8esearch and $evelopment.2. )ncreasing the technological )nnovations mobile service industry.4. Spreading of $igitaliEation all over the country.0. )ncreasing the /i'Technological instruments, /igh -doptability to technology.

3. )nternet >acilities are spreading in rural areas.. obile 5hone users are increasing day by day.

Threats for the in!ustry.

1. 9apacity Limitations.

&ot having developed fiber infra‐structure and ""C B are used for backhauling

(Limited capacity!

. 5ower availability )ssues.

obile base stations are located in hill areas and the &ational grid is not available

also the /igh cost ($iesel generators! and &o developed green energy system(Solar

and wind !

2. &etwork problems.

&etwork operations are usually designed to address fre%uent disruptions caused by

e%uipment failures. Sometimes the obile service companies do not address the

catastrophe level incident like fire, earth %uake etc.

Chan(es in +atural EnvironmentThis is important to obile service industry insofar as it is the source of many raw

materials and fluctuation in supply can affect the prices paid for purchases.



&pportunities for the in!ustry.

1. )ncreasing trend of paperless environments is supported by data A internet. aMor global concern.

:lobal interest on carbon foot print encouraging more and more use of computer and

e communication.

Threats for the in!ustry.

1. 9ontaining costs while delivering increasingly more comple+ services and

providing a consistently higher level of customer service across wide

geographical areas.. )ncreased in energy cost.

The increased cost of energy is also having an effect on the types of products thatappeal to consumers.

2. Scarcity of resources.4. Storage of raw materials.

' $ue to inflation.

Chan(es in )emo(raphic actorsThe demographic environment itself is affected by changes in the mi+ of age groups

in the population. )f the population becomes older, this will lead to rising demand for

products and services consumed by older people and a similar fall in demand for

products consumed by younger people. $emographic environment is also affected by

the level of education in a country, since changes in education have an impact on the

wealth of a nation and the tastes of its people. The lifestyles of a population also have

an impact on the acro environment to the mobile service industry.

&pportunities for the in!ustry.



1. 9hanges in family structure and the population.

)n the mobile sector subscriber growth continued to be aggressive with the number of

mobile subscriptions increasing by 2C ' 1.4 n.

. The fast return to normalcy of the &orth and ast and overall tension free

conditions in all parts of the country offered greater momentum for business

e+pansion.

The promise of the potential emanating from the opening of hitherto une+plored

geographical areas of the country has led to all mobile service operators racing to

capture pieces of the unfolding markets, and obile service providers too with an

already established foothold in those markets will accelerate and e+ecute plans to

further strengthen its position.

2. )ncreasing the )9T literacy level in Sri lanka.

The Signals to the governments intention to fast develop the )9T literacy level of the

country, which in turn would function as a multiplier in the countrys economic

growth process.

o' They &vercome Those Challen(es )urin( The "ast

ive 6ears.

Sri Lankas obile communication industry has been a trailblaEer in the South -sian

region, being the first to introduce latest technologies in the market'be it :S

(:lobal Standard for obile! telephony. -ll companies try to change. *ecause they

want to stay in the market in long time and earn more profits. very time customers

think that what service providers gives more benefits. *ut in the present a research



says that people think dialog is the most profitable and useful service among the

others services.

olitical an! le(al factors

ates are !e!ucte! because of the ne' rules an! re(ulations.

• ;*)TL introduced an *est >riend (*>! Two obitel numbers as y

*est >riend (*>! numbers.4 hours of the day outgoing (6oiceG6ideo! calls

to y *est >riend numbers at 8s. 1G' for the 1st minute, 0 cents for the nd

minute and 0# cents per every minute thereafter. SS to y *est >riend

numbers are at 0 cents per message.

• )n the first time in the mobile industry of Sri Lanka -ritel offered earn super

points on every incoming call from another network to the -irtel.

• -ll companies try to attract more customers. )n /utch 9ompany introduce

with this great per minute prepaid plan, customers get 3# minutes and 0# SS

free for a day, for a daily charge of Must 8s. 1.• T)S-L-T offer new packages for their customers. These are their packages.

)iscover

%onthly Subscription EE

rice

7E to E8

8s. 1

rice

7&ther +et'or,s8

8s.

S%S

Etisalat to Etisalat 1# cents

Etisalat to other net'or,s 0 cents

)ream

ree &ut(oin( mins7E to E 95 &ther +et'or,s 1008

195



rice

7To any local net'or, after your free minutes are use! up8

8s. per min

rice

7E to E fter your free minutes are use! up8

8s.1

Subscription 8s. 0

S%S

Etisalat to Etisalat 10 cents


Success

ree out(oin( mins7E to E 150 &ther +et'or,s 2008

350

rice


8s. per min

rice


8s.1

Subscription 8s. 00#

S%S



each

ree out(oin( mins

7E to E 300 &ther +et'or,s 4008

900

rice


8s. per min

rice


8s.1

Subscription 8s. 11##

S%S





• Talk to 1# friends in T)S-L-T its for Must 8s.1 a inute. &ow we can

build conference room.

• These are the -)8TLs new packages for their customers.

ac,a(e Celebration

300

Celebration

:00

nlimite!

CT-T&+ EE 8s. 0## 8s. 0## 8s. 0##

%&+T"6

C&%%T%E+T

8s. 2## 8s. 3## 8s.1,4""

EE )T *+)"E 1:* 2:* =nlimited

C/ES & S/E

*&-E EE *+)"E

3# cents per

*

3# cents per *

S%S 72; 2&8 1# cents, 0cents

1# cents, 0cents

1# cents, 0cents

SEE)

)o'nlin, 2.3 bps 2.3 bps 1.7 bps

plin, 274 Obps 274 Obps 274 Obps

S/E &"C6 &ot -pplicable &ot -pplicable -pplicable

• /=T9/ offered a new bonus reload 8s. 1"" and get 8s. 2## worth of )$$.

To increase the facility of hi(h spee! internet for their customers.

• They offered new data packs to -irtel customers



• >or the first time in Sri Lanka, get all sorts of mobile applications that

customer want at tisalat -pp Eone. &ow customer can enMoy with games,

alerts, horoscope apps, sms to email, travel apps, voting apps, funs apps and

much more.

• They introduced the obitel 2: delight **. &ow, make high'speed net

surfing a reality with obiltel. :et onto the )nternet directly on the mobile

phone or use the =S* /igh Speed )nternet modem on the desktopGlaptop. -ll

customers need is the 2: $elight suite of services from obitel



Economic actors

%obile service provi!ers entere! in to the ne' mar,et in northern Sri lan,a.

• &ow -irtel 2: is available in the &orth science august, bringing you closer to

the things you love.

• )n &orthern Sri Lanka. They introduced a new Top up for 8s. "7 and enMoy 8s.

10# worth )$$ T-LO T) on the -irtel. )ts valid for a month.

To re!uce the mar,et ris, they sell mobile hones 'ith more benefits.

• -s well as they offered a star points methods. Binners can get Samsung

gala+y tab1#.1 and Samsung gala+y sill.



• T)S-L-T introduced the new unbelievable offers to /&* credit card holder.

&ow customers can buy black berry cure 70#, "2## phones and bold "##

and torch "7## phones by using their credit card. -s well as their customers

can save money 0#C.

• T)S-L-T introduced the /uawei )$;S R2. )ts only available with

tisalat. )t has more facilities.

•

;*)TL offered the 5re'paid *roadband Smart $ongle for Must 8s. 24"# inKuly.



• -s well as obitel introduced a srilankas first 2$ Smartphone partnership

with -bans.)ts the worlds first Dtri'dualF architecture. )t has more facilities. There are 1:/

dual core, dual channel processors, 7 :* memory and 4:* L5 $$8, 2$

recording, viewing and sharing.

• /=T9/ offered 1#C *onus on ;nline 8e'chargeQ

• T)S-L-T introduced new refresh cards to the market T)S-L-T

)&T8&T 5L=S N



• T)S-L-T, $-)L;:, ;*)TL, -)8TL -&$ /=T9/ have :eneral

&ews in Sinhala, nglish and Tamil medium.

• T)S-L-T offered new tisalat dongle for the lowest price in the marketrs.1""" in September.

Technolo(ical actorsTo overcome from; increasin( the iTechnolo(ical instruments; i(h

!optability to technolo(y the mobile service provi!ers use! the follo'in(

metho!s.

• ;*)TL was the first 2.0: operator in Sri Lanka and South -sia. )t covers

most of Sri Lanka with its :S network.

• ;*)TL offers both prepaid and postpaid mobile services, along with

mobile broadband services using the 2.0: network.



>ollowing the successful implementation and operation of an -5SGT$- network

in the country, obitel launched its :S operations in Kanuary ##4 with the

deployment of a fully'fledged :S network in the 7## /E and 17## /E band,

which is $:G:58S enabled.

• )n ##0 and ##3, obitel traded the 7## /E band for slots made available

from the "## /E spectrum.

• $ialog launched a pilot 4: LT &etwork becoming the first operator in South

-sia.

• -)8TL lunched the 'commerce with -irtel. -ll -irtel customers who have

an account at *;9 or 9ommercial *ank now they can do mobile bankingG

top'up their account and pay their bills.

• ;*)TL introduced 11 the new 9ustomer 9are /otline &umber of

obitel.

• ;*)TL offered SS with :mail < &ow we can send >8 SS to your

obitel friends via :mail.

• $)-L;: introduced a new 5assword method to protect our SS )nbo+



• )n recently $)-L;: offered obile T6, SS banking, ' 9hanneling,

$irectories, >a+ number for every service holder.

• T)S-L-T launched new method in >ebruary #11. Bith their Ee top

service now customer can send a reload to tisalat friends anywhere in the

world. To send credit through eEe top.



Socialcultural actors

• Kob alert service via SS

tisalat Sri Lanka and $ialog launches DKobs -lert via SSF service for its

subscribers for the first time in Sri Lanka. The service is launched inassociation with Kobs website. :et instant SS updates about the latest Mobs

on offer at Sri Lankas premier online Mob portal www.topMobs.lk.

• Send te+t messages to any $ialog obile via your :oogle account, absolutely

free.

• Latest gossips about of famous persons.

•



)emo(raphic factors

• )n ##", obitel became the official sponsor of the Sri Lankan 9ricket Team.

-nd they launched a concept called ) am Sri lanka.

• )n first time ;*)TL launched of priority services for war heroes.



)ue to chan(es in a(e mix an! the chan(es in family structure they offer these

facilities.

• /=T9/ launched a couple package for monthly rental is rs.##. Their main

target customers are young students.

• $)-L;: offered free health tips till in &ovember 4 th



ecommen!ations for the %obile Service rovi!ers

1. )mplementation of &ational fiber backbone A $evelop fiber infra‐structure in

the country. (fiber to sites!. =se of green power sources to reduce the cost of the added selling prices and

call, sms and other charges, for that they can use ? Solar 5ower Solution

Solar ‐wind /ybrid 5ower Solution

Solar ‐diesel generator /ybrid 5ower Solution

2. ore )nfrastructure Sharing.4. *ecause of the Limited stability for obile base stations in the market, should

increase the number of Service providers to the industry. *ecause obile

service industry is an oligopoly arket.0. -dvertising via S.

S mobile marketing can contain a timed slideshow of images, te+t, audio and

video. This mobile content is delivered via S (ultimedia essage Service!.

&early all new phones produced with a color screen are capable of sending and

receiving standard S message. *rands are able to both send (mobile terminated!

and receive (mobile originated! rich content through S -5 (application'to'

person! mobile networks to mobile subscribers. )n some networks, brands are alsoable to sponsor messages that are sent 55 (person'to'person!.

obile S videos increase user interest and boost direct response rates offering

marketers and advertisers a viable mobile channel to deliver richer media content.

• )ncreased $irect 8esponse 8ate



*ecause of its interactivity, S videos increase user interest and

boost direct response rates from people that are tired of Must seeing

boring te+t. )tIs also the perfect way to showcase to your customers that

the business is on top of the latest technologies.

• )nteractive S

S creates a more interactive and emotional appeal on mobile

devices compared to SS through elements of sound, animation and

images. S creates a modern mobile e+perience with powerful

visual branding possibilities.

3. 5arent :uide' >ind out all that customer need to know about bringing up

children %ueries related to food, nutrition, growth, development, behavior

patterns, disciplining, and more.

. *aby &ames' 9ustomers precious babies here and now its time to find a

suitable name. - name that reflects all emotions, hopes and aspirations of

customers. *rowse through e+tensive listings and find the one that is perfect

for customers bundle of Moy.

7. *aby 9are' *e aware of all the caregiving needed for bundle of Moy food

habits, immuniEation, safety, basic health tips, toys, and more. Oeep baby

healthy and happy.

". 8ecipes' :et to know the secret to make lip'smacking recipes from one of Sri

LankaIs most famous cooks and delight friends and family.



1#. /omemaker' :et tips on how to be frugal and organiEed in customers

homemaking skills. Onow how to keep customers home safe, comfortable

and coEy and household running efficiently.



/& %E%*ES

9hamudi /erath /$'=:9'1##2

5avan 9handrasiri /$'=:9'1##1

-nushani Thilakarathna /$'=:9'1##72 & Sapideen /$'=:9'1##7#

-yesha )roshani /$'=:9'1##22

5rabashana wiMesinghe /$'=:9'1##"2

Marketingreport Mobileserviceindustry1 111110033743 Phpapp02

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Transcript of Marketingreport Mobileserviceindustry1 111110033743 Phpapp02