12 March 2011

Indian Telecom


India crosses 800 Million Telecom Subscribers –Adds 19m mobile users

The Indian Telecom subscriber count has reached 806.13 Million, thanks to unabated growth in mobile subscribers. India added 18.99 Million new Mobile subscribers in January to take the total mobile subscriber count to 771.18 Million.

According to the latest report released by Telecom Regulatory Authority of India (TRAI), India has 538.38 million Urban Subscribers while 267.74 million Rural subscribers. The mobile growth in rural areas is higher at 3.07% as compared to urban which was about 2.06% in January. The share of Urban Subscriber has declined to 66.79% from 67% where as share of Rural Subscribers has increased from 33% to 33.21%. With this,  the overall Tele-density in India reaches 67.67 percent.


Telecom Subscription Data Highlights as on 31st Jan 2011


Interestingly, according to the new VLR data released by TRAI, out of total 771.18 Million mobile subscribers, 548.66 Million were active subscribers. So roughly about 71 percent of all the connections sold are being actively used. It is also interesting to note that Bharti Airtel has maximum active subscribers (92.63%) closely followed by Idea (90.34%). When it comes to region, Mumbai has lowest proportion of active subscribers (59.59%), while Jammu & Kashmir has the maximum (81.26%)!

also looking forward to see the churn in between telecom providers due to onset of Mobile Number Portability. It seems from the report that instead of actually being beneficial to smaller providers, it is exactly the opposite. They have lost more subscribers to their larger counter-parts than other way around. Infact, Videocon and HFCL are actually showing negative growth!


New Subscriber Additions in January 2011


Bharti maintained the lead adding 17.38 percent of all subscribers followed by Reliance (16.95) Vodafone (16.37) & Idea (13.22%). None of the newer Operators are able to make the mark with all of them put together adding less than 5% of all subscribers.


Telecom Operator Market Share


Bharti leads the pack with over one-fifth of Indian Telecom market under its fold, followed by closely placed Reliance (16.71%) and Vodafone (16.52%).


Broadband Subscriber growth in India

Broadband growth remains subdued – In the month of Jan total of 0.29 million broadband subscribers were added taking the total kitty to 11.21 million, thus showing a growth rate of 2.70%.

Can Entrepreneurship really be taught at B – Schools?


Can Entrepreneurship really be taught at B – Schools?

Entrepreneurship has been the most abused word around according to me. Each and everyone seemingly want to start their own venture. Each and everyone think making business plans is as easy as writing a mail. Each and everyone think that getting the funds for the same will be pretty easy. Each and everyone want to be his / her own boss.


But is it really so easy? Is entrepreneurship just about starting new businesses? What kind of people become entrepreneurs? How does one make the right business plans? Which kinds of industries and sectors one can enter? How does one get the right ideas and opportunities? How does one achieve successful execution? There are some of the hundreds or thousands of questions which one has to consider before getting a business plan ready for a VC.

But then can one really be taught entrepreneurship? Does it have any theories or rules which one has to follow? Are there any textbooks for the same? According to me, the simple answer to all these questions is a big NO! There is no school or college or university in this world which can really teach you the way to start a business.

A person who wants to start a business may search for an idea by brainstorming with his friends, getting information from newspapers, searching for new ideas based on current products which are there etc. Has he learnt any theory for that? NO! Currently there are entrepreneurship cells across various b–schools in this country, entrepreneurship is being taught as a subject, business plans are being organized and there are also programs, But are these generating entrepreneurs at organizations?

n an entrepreneurship class a student is taught what are ideas and opportunities. He / She is taught about business models for various companies. Then there are also assignments of various kinds on business plans, case studies on various entrepreneurs and their stories etc. etc. But has a person really learnt to start a business from this? Has he / she gained the confidence in his idea from the same? Has he / she taken this subject just so that he has nothing else to study? Is the aim of the subject to encourage people to start businesses or just give some gyaan? Your guess is as good as mine.

And this is the reason, I personally don’t seem to understand the role of an entrepreneurship subject at a B–School. One can’t start developing ideas or business plans just by learning some theory regarding the same. And this is the reason I wonder what do entrepreneurship institutes and programs teach us in this country.

What is needed is to build a culture wherein more and more people are encouraged to start businesses. Already top colleges like IIMs, ISB etc. have allowed students will to opt out of placement and start their own jobs, placement opportunities in the ensuing years in case their businesses fail. Having entrepreneurship cells at colleges would help if they have business plans organized and supported by VCs rather than ones which are known to give big prizes and forget everything else.

In a country where the number of small and medium scale businesses grows faster than one can snap his / her fingers, entrepreneurs do have a chance to enter. But unless a culture of entrepreneurship can be built in this country, no one would want to enter the tough and risky world of entrepreneurship.

And till the time we keep teaching ideas, opportunities, business models and such theories at b – schools, no one would be really interested. All they would do is by heart the theory and vomit in the exam.

Interestingly, a famous person has said that an MBA going on to becoming entrepreneur can be the biggest disaster ever!

Telecom Consumer Complaints: Insight


Over-charging Mobile Operators–More common than you think!

If you are a mobile post-paid subscriber, I am sure you may have been surprised one time or the other, looking at your mobile bills. More often than not, they are more than you could have imagined. Most of the times you can’t figure out why the bill is so high, at other times you can spot discrepancies in your SMS charges or phone calls. Sometimes you are also charged for things like caller tunes without having even asked for them.

Yes, that’s the existing scenario and you are simply one of the thousands (or even millions) of victims being overcharged by mobile operators. Interestingly, some of us don’t even realize that we are being looted by the mobile companies.

So how does it work? Say you have asked for some schemes like free SMSs and cheaper call rates. You are really happy that you have made the best possible deals and talk to your girlfriend ( or boyfriend or wife or husband) day in and day out. Many mobile companies use this as the easiest way to fool you. They sometimes charge for SMSswhich have been paid for as FREE or charge a few paisa here and there for some calls which you can just call ‘BILLING MISTAKES’. But then what’s the big deal in a few paisa here and there, right? WRONG! With a few paisa here and there the mobile operators are making millions all the way to the bank. Just think, if each call is billed at just 1 second extra, with millions of calls daily, operators are making a killing!

But, the overcharging is not limited to just calls and SMSes -  Caller tunes and other value added services are also cash cows!

One could argue saying this is the way mobile operators encourage customers to use caller tunes. But isn’t charging them against ethics? Similarly, value added services are another big money spinner for mobile operators as they charge their customers even after the services have been cancelled. Every mobile operator asks you to deposit some money for the services they provide. All the while you are using the operator’s services, they are earning interest. Once you cancel and are late with your bill payment, you have to pay a fee. And only the money minus the interest is given back to you.

Although hundreds of thousands of users face this issue, only a few of them notice it and even less complain about it. Here are the number of complaints launched against Operators in last 2 years.

Consumer Complaints for overcharging
Operator
2008-09
2009-10
2010-11(Upto Dec’2010)
Airtel
773
1736
1062
Tata
232
678
329
Reliance
466
1000
685
Vodafone
477
881
538
Idea
129
425
371
Others
109
370
300
Total
2186
5090
3285

The biggest complaints of overcharging have been from Airtel and Reliance. The TRAI has notified the Telecom Consumer Grievances Regulations, 2007 regarding providing some protection to consumers from such errant operators. But no one has done anything and the consumer is left to fend for himself. From trying their best to reject the MNP because it makes it competitive for them to charging customers over the top, mobile operators have been ruling the roost.

How long can they really do this? Is there any way to stop consumers getting overcharged?