Indian Telecom Industry

Price War in Indian Telecom Industry An academic project submitted by students of eEPSM at IIMK eEPSM -02 Student Name Roll Number Amitabh Kumar Patnaik eEPSM-02-003 Balasubramaniam T eEPSM-02-006 Manmeet Singh eEPSM-02-023 Rahul Mishra eEPSM-02-034 Somashekar Lingaraju eEPSM-02-047 Table of Contents Table of Contents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 The Indian Telecommunications Industry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Mobile Growth – Twist in the Game†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Revenue and Growth†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 Beginning of Overcrowding and Price War†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Industry perspectives on Price War/ Falling Rates†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 Opinions from Industry Stalwarts and Watchers†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 3G on the Horizon†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Growth at Home and Abroad†¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Conclusions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 0 The Indian telecom sector could be going the airline way. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 Hypothesis on future trends of structure conduct and performance of Industry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Who wins who looses?†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Exhibit 1: Indian Telecom Industry Key Milestones†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Exhibit 2: India Telecommunication Industry – Facts and Figures†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 Exhibit 3: Subscriber Base in Key States†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 Exhibit 4: operator wi se wireless subscriber base in India †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 Exhibit 5: Performance of QoS Parameters for Cellular Mobile Services †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 List of References:†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 17 Executive Summary This document is the result of an academic case study an attempt to analyze and understand the present dynamics of Indian Telecommunication Industry with special focus on the Price war in mobile telecom that has overwhelmed the industry. In this study we attempt to look at the causes that lead to the price war, impact thereof and also hypothesize future trends. Methodology Methodology used for the case study is as follows. We have made a set of hypothesis and arrived at key questions which are used to gather the data around the hypothesis. We have retained hypothesis hich are supported by the data and expert views and presented the hypothesis and conclusions. The Indian Telecommunications Industry The Indian telecommunication industry, with about 506. 04 million mobile phone connections (Nov 2009), is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections. The Indian telecom industry is one of the f astest growing in the world and is projected that India will have ‘billion plus' mobile users by 2015. Projection by several leading global consultancies is that India’s telecom network will overtake China’s in the next 10 ears. Looking at the Industry marked milestones for last 4 to 5 years (Exhibit 1), 2 issues are obvious – Mobile Growth and completion that will lead to a shakeout sooner or later. Mobile Growth – Twist in the Game For the past decade or so, telecommunication activities have gained momentum in India. Efforts have been made from both governmental and non-governmental platforms to enhance the infrastructure. Telecommunication as a technology not only serve all segments of India’s culturally diverse society, would play key role transforming India a country a techno savvy one. The historical journey and the milestones of Telecom revelation in India have been shown in the Exhibit 1 of Appendix section. Currently, India's mobile phone market is the fastest growing in the world, with companies adding some 16. 67 million new customers a month. Some of the key drivers to the exponential growth of this industry are ?A large population ?Low telephony penetration levels ?Rise in consumers' income and spending owing to strong economic growth The first and largest operator is the state-owned incumbent BSNL, which is also the 7th largest telecom company in the world in terms of its number of subscribers. BSNL was created by corporatization of the erstwhile DTS (Department of Telecommunication Services), a government unit responsible for provision of telephony services. Subsequently, after the telecommunication policies were revised to allow private operators, companies such as Bharti Airtel , Vodafone, , Tata Indicom, Idea Cellular, Aircel and Loop Mobile have entered the space. In 2008-09, rural India outpaced urban India in mobile growth rate. The wire line segment subscriber base stood at 37. 16 million with a decline of 0. 13 million in Nov 2009, The Cellular Operators' Association of India forecasts the country's mobile phones ill number one billion by 2013, up from around 500 million currently, a clear indication that the shift is happening radically to wireless handheld devices on the CDMA and GSM Platforms. This is the key trend across the country, lead by the states which have experienced high commercialization and urbanization (See Exhibit 3) – Mobile Subscriber Base in Key States Revenue and Growth The total revenue in the telecom service sector was Rs. 86,720 crore in 2005-06 as against Rs. 71, 674 crore in 2004-2005, registering a growth of 21%. The total investment in the telecom services sector reached Rs. 00,660 crore in 2005-06, up from Rs. 178,831 crore in the previous fiscal. It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3. 7 million Public Call Offices in December 2005 up from 2. 3 million in December 2004. The value added services (VAS) market alone within the mobile industry in India has the potential to grow to a whopping $10 billion by 2010. Beginning of Overcrowding and Price War Though Indian telecom market might be growing fast, but surviving in this highly competitive market s not easy for telecom companies. Liberalization and globalization combined with the market potentiality lead to many aspirants enter in t o the market in less than 7-8 years leading to a cut throat competition which manifested in a price war. Following is the list of schemes that fuelled the tariff war in India and ultimate manifestation of this was a major decline in the ARPU of the Mobile Telecom Industry itself. Product / Service / Scheme Player Description Post card or Phone call Reliance Reliance Infocomm launched mobile services in India at 40 paise per minute fulfilling Dhirubai Ambani’s dream o make a phone call cheaper than a post card in 2003. Chotta Recharge Hutch Hutch (Vodafone now) launched the chotta recharge voucher at Rs. 10 when the lowest add-on recharge card available was about Rs 50. What’s the message? Lowering the price by 20-30% to the competitors won’t help much in gaining the market share. Think five times cheaper to make an impact. Non-stop Mobile Tata Though the chotta recharge was broadly accepted , But there were issues in prepaid mobile. You need to recharge regularl y as the validity period is limited. With the recharge card of Rs 200, you will get validity only for one onth. So people have to spend at least Rs2000 per year for their mobile just to receive the incoming calls. Tata Indicom launched Non-stop mobile, a scheme where you don’t need to recharge for 2 years but still get free incoming calls. Soon other players responded to Tata Indicom’s plan and then come in Lifetime validity plan by all major telecom players in India. Get Paid for Incoming Virgin Adding logs to the fire Virgin Mobile jumped into the competitive Indian mobile telecom market with the breakthrough-marketing scheme Get paid for incoming calls. 10 paisa free for every minute of incoming call. However this campaign was not well received. Daily telephone allowance Reliance Going a step further (what if one does not get any incoming call? ) Reliance Communication launched its GSM services in Mumbai offering subscribers Rs 10 talk-time every day for the first 90 days. That’s free talk-time worth Rs 900! Directly passed on to consumer Per Second Billing TATA – DOCOMO Taking the bargain to the next level Tata Docomo introduced per second billing 29 Paisa Per Call Uninor A completely new way of pricing plan offers the customer a fixed price for every call regardless of the duration , hich is aimed at young customers who prefer long calls VAS and SMS Reliance On November 28, RCom opened another front in the price war — SMS (short message service). The company unveiled two plans charging one paisa per SMS message. Under the first, customers pay Re. 1 a day and are entitled to send an unlimited number of free SMS messages. Alternatively, you can buy a Rs. 11 mo nthly voucher and each SMS message will cost just one paisa. VAS and SMS Tata Docomo Tata DoCoMo has been heavily promoting its one paisa per character Diet SMS plan. Now, it is inevitable that they and other competitors will have to match RCom's ates. This will not mean a huge drop in revenues: According to estimates, SMS brings in about 5% of total telecom revenues for Indian companies. But companies' bottom lines will still be affected. The Telecom Regulatory Authority of India (TRAI) has found that each SMS costs the service providers less than one paisa, while they have been charging customers 60 paise to Re. 1 (depending on the plan). Industry perspectives on Price War/ Falling Rates In June this year, Indian telecom service provider Tata DoCoMo announced that it would bill at the rate of one paisa (around 0. 02 cents) per second. In a market that is cluttered with many operators and confusing options, we will offer simplicity to consumers by being the country's most transpare nt, innovative and liberating telecom brand,† said Deepak Gulati, Tata Teleservices president, GSM (global system for mobile communications) Business. A few months later — in September — it unveiled the Diet SMS plan, one paisa per character with no charge for spaces between words. On November 22, it extended the one paisa per second plan to roaming services also. â€Å"When a subscriber is roaming, most telecom operators in India charge a minimum of 50 paise to 60 aise per minute, even when the call duration is less than a minute,† Gulati said in a press statement. â€Å"Under the Tata DoCoMo roaming offer, subscribers will be charged only for what he or she uses — at one paisa per second. For instance, a 15-second call made or received while roaming will elicit a charge of 15 paise only — not up to Re. 1 on a per minute basis, as is the industry norm. † ‘We are responding as we did not have a Choice’ Bharthi Airtel On Oc tober 30, market leader Bharti Airtel took the plunge with the one paisa tariff. In November, it lso cut roaming rates to 60 paise per minute for calls within its network and 80 paise per minute for calls to other networks. On November 24, Bharti took its lowered rates overseas: U. S. customers using calling cards to make calls to India would also be billed at one paisa per second. The company was not happy about these forced countermeasures and their inevitable impact on profits. â€Å"The tariff war has not been launched by us,† Bharti chairman and managing director Sunil Mittal told journalists at the World Economic Forum meeting in Delhi in early November. â€Å"We responded as we did not have a choice. We have always said we will never lead the price war, but responding to the needs of the market is something that every sector and industry has to do. † Although Bharti is the market leader, it has never directly pursued market share; its focus has been share of industry revenues. A survey shows that it is holding its own. â€Å"While the telecom sector's revenues and profits have plunged in the quarter ended September 2009, large private operators such as Bharti Airtel, Reliance Communications (RCom), Vodafone Essar, Idea Cellular and Aircel have all managed to increase heir revenue market share during this period,† according to the survey report. Bharti's revenue market share has increased to 29. 3% as of September 2009, compared to 27. 6% in June the same year, while Vodafone Essar now accounts for 15. 7% of the total earnings of the sector as against 14. 6% in June 2009. Plunging Revenues On the losing side are the public sector telcom firms — Bharat Sanchar N igam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL). On December 1, however, MTNL fired its own salvo by reducing its rates to half a paisa per second for in-network calls and one paisa per second for calls ade outside its network. â€Å"Our pay-per plan is the most affordable in the industry,† said MTNL chairman and managing director R. S. P. Sinha in a press statement when the new rates were announced. The price war's impact on revenues is already apparent. The brutal tariff war that has forced all operators to slash call rates has also resulted in the sector's sales figures dipping over the past six months despite the addition of 80 million customers in the period. The industry clocked about Rs. 38,755 crore in September 2009, which was lower than the sector's revenues in the quarter ended December 2008, when it recorded Rs. 9,408 crore despite having 125 million fewer customers then. The report notes that 13 operators are fighting for share in a market that many be lieve can optimally support four or five — and four more players are planning to enter the market by next year. At this point in time, it is all about grabbing subscribers. â€Å"Industry revenue growth for the quarter ending September 2009 was 1. 7% quarter-on-quarter (Q-on-Q) and 8. 7% year-on-year (Y-on-Y), substantially lower than subscriber growth at 10. 4% Q-on-Q and 49. 6% Y-on-Y,† says a report by equity research firm Enam Securities. â€Å"The aggressive ntry by new GSM players has compelled the incumbents to reluctantly join the tariff war to protect their market share. † At Vodafone Essar, for instance, service revenues dipped 7% from the June quarter to the September quarter. The EBITDA (earnings before interest, taxes, depreciation and amortization) margin is also down from 28. 4% in the first half of 2008-09 to 24% in the corresponding period of 2009-10. The decline in the EBITDA margin was primarily as a result of the expansion into rural areas an d market price reduction offset by scale efficiencies. That this is entirely in line with industry performance; as oted by ETIG, Vodafone has actually done better than most of its competitors on the share-of-revenue metric. Vodafone has also joined the one paisa bandwagon. â€Å"One paisa per second tariff is one of the several tariff options available to our customers,† says Parida. â€Å"We continue to also offer many per minute tariff options. Our customers can make the choice. † Giving a choice is not necessarily pro-consumer. According to Mahesh Prasad, president of RCom, Indian telecom companies combined have 2,700 different billing plans across the country. On October 5, RCom launched a 50 paise per minute plan called Simply Reliance. Under the plan, all calls — whether local or long distance, to landline or mobile — will cost only 50 paise a minute. Currently, RCom itself has 265 plans. â€Å"Henceforth there will be just one plan,† said Prasad, though older customers will be given a six-month period to migrate. There are a couple of other reasons for this frantic activity. On November 20, TRAI announced that mobile number portability (MNP) would be introduced beginning on December 31. This allows users to move from one service provider to another or even from one technology to another. More importantly, TRAI said the maximum porting charges would be Rs. 9. This makes operator-hopping quite cheap. â€Å"MNP will add more pain to the situation,† says Mahajan of KPMG. According to a report by Anand Rathi Financial Services, the move will lead â€Å"to churn rates higher than the current 4. 5% to 8. 0% per month — at least in the short run. † The level of satisfaction with s ervice providers is low in the Indian telecom space. According to a July Nielsen Mobile Consumer Insights study gauging consumer attitudes and behavior towards mobile operators in India, 18% of Indian mobile phone subscribers plan to change their mobile operator when MNP is introduced. The study found that attrition rates would be the highest for RCom and Tata Indicom. Opinions from Industry Stalwarts and Watchers â€Å"Overcapacity is a characteristic of bubbles,† said Idea Cellular managing director Sanjeev Aga. â€Å"At the national level, overcapacity implies wasteful deployment of national resources (like spectrum) and just offers falling tariffs temporarily. † Since June, the country’s telecom players have been indulging in a price war that had seen tariffs being slashed by a large quantum. After Tata DoCoMo introduced the one-paise-per-second rate, ther competitors have had to follow suit, prompting most companies to witness a fall in profitability. Analysts too derated telecom stocks post the country’s biggest tariff war that brought down call rates. And, that’s not the end. Along with new capacity, competition is expected to rise as new players with deep pockets make a line for what was till last year, one of the India’s fastest growing sectors. Mr Aga said markets tend to be merciless in working out the sector overcapacity. â€Å"The greater the overcapacity, the greater the short-term pain. But, this is the market’s way of separating the efficient rom the inefficient, and restoring balance. The efficient usually emerge stronger from the test and are unchallengeable,† he added. The sector’s woes began when the government handed out new licenses to players in 2007, despite not having enough spectrums. Rekha Jain, executive chairman of the Telecom Centre of Excellence and professor at IIM Ahmedabad, said: â€Å"When the government knew that an operator requires a minimum amount of spectrum (4. 4 Mhz for GSM) to start services, how could it allow everybody to come in? And now, everybody is setting up networks. The government wanted competition, but it has created vercapacity, which will lead to consolidation. † Banks have added fuel to the fire thr ough indiscriminate lending. â€Å"Bank and vendor financing is encouraging overcapacity in the sector, despite the fact that new players’ plans look unsustainable in the long-term,† HSBC Securities and Capital Markets analyst Rajiv Sharma said in a recent report. â€Å"Some of the leading operators are now restructuring their loans,† said industry sources. â€Å"If that continues to be the case, there may be some bankruptcies in the sector within two years from now,† said a top official at a telco on condition of anonymity. A top official at a public sector bank said telecom has received easy lending because it is an important part of infrastructure. â€Å"The current state is an aberration and will correct itself,† he opined. HSBC’s Mr Sharma, however, said: â€Å"The current scenario, with 10-11 players, is unsustainable and a reflection of poor government policies. We are of the view that market with 5-6 players is ideal in the Indian context. † He pointed out that even if the entire spectrum were to be made available in India, it would still be insufficient to cater to all the players. â€Å"It may be more logical to promote investments in elecom infrastructure, encourage rural penetration and rural broadband rather than focus on market structure,† he added. 3G on the Horizon The second big event on the horizon is the launch of 3G (third generation) services next year. The auction for 3G licenses has been delayed. But the proceeds are needed to trim the fiscal deficit. In his budget, Finance Minister Pranab Mukherjee had estimated that Rs. 20,000 crore would come in through the sale of these licenses, so there is enough incentive for the auction to happen during this financial year (ending March 2010). The base price for these licenses has now been fixed at Rs. 4,040 piece. Analysts estimate that Rs. 30,000 crore to Rs. 40,000 crore could come in through the sale. The department of telecommunications proposes to hold the auction on January 14, 2010. â€Å"An apparent lack of interest in the auction for high-speed 3G and broadband wireless access spectrum won't stop the government from getting bidders to cough up the cash that it needs to control a burgeoning deficit,† according to business daily Mint. â€Å"That's because many potential bidders running 2G services, already scrambling for scarce spectrum to carry mobile phone calls, desperately want the additional frequencies that will come with a 3G license. Analysts say this is the very rea son why foreign companies don't seem too interested in bidding for the 3G licenses. â€Å"Foreign interest in the form of participation in the pre-bid conference has been low probably on account of two factors,† says K. Raman, practice head, telecom, media & technology at the Tata Strategic Management Group (TSMG). â€Å"First, there are regulatory uncertainties with respect to eligibility of 2G spectrum along with a winning 3G bid. Secondly, a pure 3G play may not be attractive for operators and would not make as much business sense as an overlay on 2G. † Adds Alok Shende, principal analyst at Ascentius Consulting: â€Å"A standalone 3G service is unlikely to succeed. The business will start with virtually no consumers, unlike the current players who will have the advantage of captive 2G customers. † According to Shende, â€Å"Indian telecom markets are likely to undergo a tectonic shift with the introduction of new licensees, MNP and the launch of 3G services all scheduled in the next one year. New players will nibble at the market share of the incumbents and — with regulatory constraints on M&A activity — consolidation, a process that could have cleared the market, will be artificially estrained. The rural markets will continue on their growth trail. Today, only 28% of the subscriber base is contributed by the rural segment. † Growth at Home and Abroad The rural market is the other problem area. This is where the growth is — but it is also where very little money can be made. â€Å"Rural markets are still u nder-penetrated† — at about 15% — â€Å"so there is still a strong upside merely on customer addition,† says Parida of Vodafone Essar. The hitch is that some of the plans don't make money. The average revenue per user (ARPU) is now down to around Rs. 200 a month for the industry. In rural areas, however, it is estimated to be in double digits. â€Å"It certainly makes it harder to ensure viability, as the bulk of users are lower-income and less tech-savvy,† says Rajesh Chakrabarti, assistant professor of finance at the Hyderabad-based Indian School of Business (ISB). â€Å"The most [celebrated] aspect of the Indian telecom revolution, as well as its prime driver, was the mind-boggling reduction of rates in a short span of time. Competition among private players was most certainly the key for this. But the model seems to have been that high-margin products would subsidize access. It now seems that most Indian users are unlikely to use the more sophisticated and high-margin features for a long time to come. Nor is the typical handset amenable to most such features. So ARPUs are likely to stay low for a long time, and the subscriber may not move beyond the most basic functions. The per-second billing will just worsen the ongoing price war. † If looking inwards — to rural India — doesn't work in terms of immediate returns, there may be a solution in looking outwards. Indian companies are trying to balance their bets by foraying abroad. If the low-cost model works there, it could bring some relief to the bottom line. The second merger attempt between Bharti and MTN of South Africa may have failed (See Now That the MTN Merger Deal Has Collapsed, What's Next for Bharti Airtel? ), but the Essar Group (which owns a 9. 9% stake in Loop Telecom, apart from its Vodafone Essar interests) has just bought up Dhabi Telecom's African assets. And the public sector MTNL and BSNL are eyeing Zain Telecom of Dubai. â€Å"Indian telecom companies are looking at markets outside India to be able to grow revenues at the historical pace they are used to,† says Raman of TSMG. â€Å"The markets that they have attempted to enter are ones here tariffs are relatively high and future growth through subscriber addition is possible. In other words, replicating an Indian model of telecom growth is possible in such countries. If execution is handled well, there is no reason to believe that such an approach will not work. † â€Å"Telecom is essentially a business of scale,† says Chakrabarti of ISB. â€Å"So the bigger the scale, the lower the costs — proportionately — are going to be. Hence, venturing abroad would be natural in some sense. It may work, provided the regulatory issues and infrastructural and cross-border operational integration challenges can be handled. Chakrabarti sees problems, but he is not pessimistic. â€Å"The industry should be growing steadily in the years to come. There is likely to be a shake-up with some consolidation and exits, and rates may stabilize or even rise a bit. What we are seeing is not so uncommon for new industries — recall the dot-com bubble and bust in the first phase of Internet growth — when players overshoot on the basis of overoptimistic projections. This may be the time for a reality check and reassessment for the players as well as regulators. But in the long run, the prospects for the industry are quite good. † The future of the industry needs to be seen across various timelines,† says Raman of T SMG. â€Å"The next six months will see new operators completing their footprint and at least three serious operators launching services in the country. All of this points to an intense phase of competition and price cuts. Factor in the 3G auction, and one would see below par profitability for [telecom companies] over the next six to eight quarters. The industry could also expect to see consolidation as much as and as fast as regulation allows it to happen. † According to Parida, the number of players in the Indian market has led to fragmentation, and that eeds to be addressed. â€Å"We feel market forces must be allowed to have a freer play in India and that will certainly lead to a consolidation phase ahead. Telecom, particularly mobile telephony, has become an integral part of India's social and economic fabric. As an industry, it is here to stay. † The industry will stay, but not the large number of companies in the fray, according to Raman. â€Å"Operators with a ccess to resources through internal accruals or credit lines will stand to gain from [any coming] consolidation. † Conclusions The Indian telecom sector could be going the airline way. Once the rising star of India Inc, the local telecom industry is now grappling with the problems of overcapacity created due to unregulated lending, new licensing norms and excess vendor financing. The growth is evident as mobile phones are becoming common. In a country of 1. 15 billion, the mobile subscriber base totals about 500 million people. New as well as existing operators are expanding infrastructure to service more people at lower tariffs. The same trend was witnessed in the aviation sector, which has now nose-dived from its peak in 2007. According to industry estimates, elecom operators are ready with lines to accommodate another 200 million people in the next one year. Hypothesis on future trends of structure conduct and performance of Industry Hypothesis Supporting Analysis Consolidation is the only way for further growth and there will be less than 5 players in next 3 years ?Every Players suffers from Churn Rate which would pose pressure on the players to keep growing th e subscriber base ?Industry / Market which is close to maturity cannot support this many players ?Only rural markets are having lower tele density which may apparently show some potentiality owever due to very little ARPU of Rural Customers , companies will not be able to achieve revenue targets All players including the ones which maintain premium image yield to price war pressure and will experience revenue loss and high cost ?Already a no-holds-barred price war has driven down billing rates to under a cent a minute, hitting revenues and profits of market leaders such as Bharti Airtel and Reliance Communications. ?Advertising billboards have sprouted everywhere offering new per-second billing plans. Who wins who looses? Company Supporting Analysis Bharthi Airtel would stay and emerge as a igger MNC ?Having dominated the industry for the last half decade Airtel seems to have learnt the tricks of the trade and has become the market leader in a short span of time. ( see exhibit 4) ?H aving adapted innovation agenda Airtel has out sourced part core activities like IT to service providers like IBM, have gained the core focus on the product development, promotion and delivery. Company is also developed long term sustainability focus by building capability on Unified Services Delivery platform to leverage on the consolidation plans ?Looking for international route for further growth and expansion hich was evident from its move to acquire MTN, though this has resulted in a set back to do duel listing policy issues , Bharti Airtel will look forward to time its future moves and will be back in action when the legislation changes ?However due to a massive subscription and growth Airtel’s quality of service has taken a serious hit due to network congestion , this could be a major weakness and lead to increased churn rate ( See Exhibit 5) Reliance Likely to Stay ? Have achieved 2nd position in the Industry in a short span of time. ?With a huge capital base Reliance will surely be one of the 4 – 5 layers who would remain in the Industry Vodafone Likely to Stay and Grow ?One of its key competence is growth by acquisition and integration ?Being a global player with financial capability Vodafone may be a major beneficiary of any shakeouts that happen and consolidations that occur in the near future Tata CDMA and GSM to Stay ?The Tatas, already have an established presence in the market through Tata Indicom. ?For the Tata Docomo, the paisa per second plan appears to have worked. According to TRAI data, the number of telephone subscribers in India increased to 525. 65 million at the end of October, up from 509. 03 million in September. Tata DoCoMo grew 23. 16%, the highest for all operators. In absolute numbers, the Tatas added about four million subscribers against three million each for Vodafone and Bharti and two million for RCom. This is no flash in the pan; in July and August, the Tatas showed the fastest growth as well. BSNL ? Likely stay in the long term as a WireLine and Enterprise Service Provider with its cost leadership strategy. ?Unlikely to do well in the mobile space due to lack of Innovation , Flexibility , Organization Structure , Performance Management reasons. Idea Cellular ? Having adopted few of the strategies from Airtel , Idea has also jumped into Outsourcing, technology capability development. However it is highly unlikely to stay in the market without quickly developing its international plans Other New Entrants ? Uninor, controlled by Norwegian telecom company Telenor, is the 14th player to enter India's cellular market, where subscriber numbers are rising so fast that in October the country added a record 16. 67 million users. Through Innovative campaigns Uninor has gained quick access and a decent subscriber base, however its future plans are not clear and company will soon fail to emonstrate the uniqueness in value proposition and aggression that is required to stay in the market. ?But after soaring growth, industry revenues are flattening as rivals slug it out in a savage price battle ?Etisalat’s success in Emirates is mainly in the Enterprise Services Space. Their public sector management out look and style, Organization design and perf ormance ?Etisalat’s Islamic Origin may become a major weakness in succeeding in Indian Market Appendix Exhibit 1: Indian Telecom Industry Key Milestones Year Key Milestone 1975 Department of Telecom (DoT) was separated from P&T. DoT was responsible or telecom services in entire country until 1985 when Mahanagar Telephone Nigam Limited (MTNL) was carved out of DoT to run the telecom services of Delhi and Mumbai. 1981 In a move towards liberalization , Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political opposition. She invited Sam Pitroda a US based NRI to set up a Center for Development of Telematics(C-DOT), however the plan failed due to political reasons. During this period, after the ssassination of Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector organizations were set up like the Department of Telecommunications (DoT) , VSNL and MTNL. Many technological developments took place in this regime but still foreign players were not allowed to participate in the telecommunications business. 1990 Telecom sector was opened up by the Government for private investment as a part of Liberalisation-Privatization-Globalization policy. Therefore, it became necessary to separate the Government's policy wing from its operations wing 1994 The demand for telephones was ever increasing. It was during this period that he P. N Rao led government introduced the national telecommunications policy [NTP] in 1994 which brought changes in the following areas: ownership, service and regulation of telecommunications infrastructure. They were also successful in establishing joint ventures between state owned telecom companies and international players. But still complete ownership of facilities was restricted only to the government owned organizations. Foreign firms were eligible to 4 9% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making. During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance services in order to release the monopoly of the state owned DoT and VSNL; and to enable competition in the long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalized the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years license was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but they managed to keep away from all the hurdles. 1995 The government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of Government in deciding tariffs and policy making. The DoT opposed this. The political powers changed in 1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalization policies. They split DoT in two- one policy maker and the other service provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political party and leftist thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL. This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000, the government became more liberal in making policies and issuing licenses to private operators. The government further reduced license fees for cellular service providers and increased the allowable stake to 74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common middle class family in India to afford a cell phone. 1995 India has become one of the fastest-growing mobile markets in the world. The mobile services were commercially launched in August 1995 in India. In the initial 5–6 years the average monthly subscribers additions were around 0. 05 to 0. 1 million only and the total mobile subscribers base in December 2002 stood at 10. 5 millions. However, after the number of proactive initiatives taken by regulator and licensor, the monthly mobile subscriber additions increased to around 2 million per month in the year 2003-04 and 2004-05. 1999 The New Telecom Policy in 1999, the industry heralded several pro consumer initiatives. Mobile subscriber additions started picking up. The number of obile phones added throughout the country in 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and 65 million in 2006. As of January 2009, total mobile phone subscribers numbered 362 million, having added 15 million that month alone. India ranks second in mobile phone usage to China, with 506 million users as of November 2009. 2000 The Government of India c orporatised the operations wing of DoT on 01 October 2000 and named it as Bharat Sanchar Nigam Limited (BSNL). Many private operators, such as Reliance Communications, Tata Telecom, Vodafone, Loop Mobile, Airtel, Idea etc. successfully entered the high potential Indian telecom market. 2005 The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0. 15 only. In 2005 alone 32 million handsets were sold in India. 2007 Going forward on its Globalization Strategy Vodafone Takes over Hutch in India for 11 Bil USD 2008 In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year. Exhibit 2: India Telecommunication Industry – Facts and Figures Exhibit 3: Subscriber Base in Key States State Subscriber base Wireless density'† Maharashtra 58,789,949 51. 96 Uttar Pradesh 57,033,513 26. 32 Tamil Nadu 45,449,460 63. 66 Andhra Pradesh 37,126,048 42. 58 West Bengal 32,540,049 34. 28 Karnataka 28,867,734 46. 76 Rajasthan 27,742,395 39. 09 Gujarat 27,475,585 45. 49 Bihar 27,434,896 25. 04 Madhya Pradesh 24,923,739 33. 09 All India 471,726,205 37. 71 Exhibit 4: operator wise wireless subscriber base in India As of September 2009 Operator Subscriber base Bharti Airtel 110,511,416 Reliance Communications 86,117,663 Vodafone Essar 82,846,046 BSNL 58,756,598 Idea Cellular 51,454,402 Tata Teleservices 46,796,033 Aircel 25,728,633 MTNL 4,680,141 Loop Mobile 2,495,087 MTS India 1,960,532 HFCL Infotel 379,654 All India 471,726,205 Exhibit 5: Performance of QoS Parameters for Cellular Mobile Services List of References: 1. www. airtel. com 2. www. vodafone. com 3. Trai. gov. in 4. The Indian Telecom Services Performance Indicators : July – September 2009 5. www. bsnl. com 6. www. uninor. in 7. Indian telecom news. com 8. www. indian-cellular. com 9. www. wikipedia. com 10. The Economic Times 11. Harvard Business Review 12. Wharton Publications 13. Etisalat : IT Organization Restructuring Engagement Experiences – an IBM Case Study

An Outline of Analytical Psychology Essay

Analytical Psychology is the school of depth psychology based on the discoveries and concepts of Carl Gustav Jung. Jung gave the broadest and most comprehensive view of the human psyche yet available. His writings include a fully-developed theory of the structure and dynamics of the psyche in both its conscious and unconscious aspects, a detailed theory of personality types and, most important, a full description of the universal, primordial images deriving from the deepest layers of the unconscious psyche. These primordial images are called archetypes of the collective unconscious. The latter discovery has enabled Jung to describe striking parallels between the unconscious images produced by individuals in dream and vision and the universal motifs found in the religions and mythologies of all ages. The concept of the collective unconscious gives analytical psychology an added dimension in comparison with other schools of psychotherapy. It takes the theory and practice of psychotherapy out of the exclusive realm of psychopathology and relates it to the whole history of the evolution of the human psyche in all its cultural manifestations. See more: outline format for essay The practice of analytical psychology thus becomes not only a therapy for neurosis but also a technique for psychological development applicable to normal and superior individuals. An abstract, theoretical presentation is alien to Jung who always strove to engage the response of the whole man, not just the intellect. This presentation should thus be recognized as no more than a two-dimensional sketch of a three-dimensional reality. Libido: The psychic energy that directs and motivates the personality is called libido. Interest, attention and drive are all expressions of libido. The libido invested in a given item is indicated by how highly it is valued. Libido can be transformed or displaced but not destroyed. If the libido attached to one object disappears, it reappears elsewhere. Libido is the dynamism of the life process manifested in the psychic sphere. The theory of libido is closely connected with the law of opposites. The processes of the psyche depend on a tension and interplay between opposite poles. If one side of a pair of opposites becomes excessively predominant in the personality, it is likely to turn into its contrary. This is called enantiodromia. A one-sided conscious attitude constellates its opposite in the unconscious. See Jung’s essay â€Å"On Psychic Energy† (1). Psychological Types: Analytical psychology distinguishes several psychological types. These refer to innate differences in temperament which cause individuals to perceive and react to life in different fashions. There are two attitude types, the extravert and the introvert. The extravert is characterized by an innate tendency for the libido to flow outwards, connecting the individual with the external world. The extravert naturally and spontaneously gives greatest interest and value to the object – people, things, external accomplishments, etc. He or she will be most comfortable and successful when functioning in the external world and human relationships, and will be restless and ill at ease when alone without diversion. Having little relation to the inner world of subjectivity, the extravert will shun it and tend to depreciate subjective concerns as morbid or selfish. The introvert is characterized by a tendency for the libido to flow inwards connecting him or her with the subjective, inner world of thought, fantasies and feelings. Greatest interest and value is given to the subject – the inner reactions and images. The introvert will function most satisfactorily when free from pressure to adapt to external circumstances. He or she prefers their own company and is reserved or uncomfortable in large groups. Both introvert and extravert have the defects of their strengths and each tends to undervalue the other. To the extravert, the introvert appears self-centered and withholding of himself. To the introvert, the extravert appears shallow, opportunistic and hypocritical. Every individual possesses both tendencies, but one is usually more developed than the other. As a pair of opposites they follow the law of opposites. Thus, an excessive, one-sided emphasis on one attitude is likely to lead to the emergence of its opposite. The opposite, however, because it is undeveloped and undifferentiated, will appear in a negative, crude and unadapted form. Thus the extreme extravert will become a victim of negative inferior introversion in the form of depressions. The extreme introvert is likely to have episodes of compulsive extraversion which are crude, ineffectual and unadapted to outer reality. In addition to attitude types, we also distinguish four function types. The four basic psychological functions are thinking, feeling, sensation and intuition. Thinking is the rational capacity to structure and synthesize discrete data by means of conceptual generalizations. Feeling is the function which determines value. It is the function that values and promotes human relationships. Sensation is that function which perceives and adapts to external reality via the senses. Intuition is defined as perception via the unconscious, that is, the perception of representations or conclusions whose origin is obscure. These four functions arrange themselves into two pairs of opposites: thinking – feeling and sensation – intuition. Although every individual has all four functions potentially at their disposal, in actuality one function is usually more fully developed than the others. This is called the superior function. The one least developed is the one that is most primitive and unconscious – the inferior function. Often a second function will have achieved considerable development which approaches that of the superior function. This is an auxiliary function. Since any one of the four functions may be superior, we have the possibility of four function types: the thinking type, feeling type, sensation type, and intuitive type. The thinking type is found more often in men than in women. The thinking type’s mental life is concerned largely with the creation of intellectual formulae and the fitting of all life experience into these forms. To the degree that the individual is identified with the thinking function and unconscious of the other functions, the thinking will tend to be autocratic and limit the full experience of life. Since feeling will be the inferior function, its values will suffer the most neglect. Human relationships will be quickly sacrificed if they interfere with the ruling formula. The feeling type is found more often in women than in men. The development and sustenance of personal relationships is the major aim. A sensitivity to human needs and a willingness to meet them is its outstanding characteristic. It finds its greatest satisfaction in rapport with others. In its extreme, this function type can be objectionable in its excessive emphasis on personal matters. Since thinking is the inferior function, its capacity for abstract, impersonal judgments will be neglected or denied. Thinking will be accepted only so long as it plays a subservient role to the interests of feeling values. The sensation type is characterized by the excellent adaptation to simple, matter-of-fact reality. He or she is content to relate to life on its most elementary terms without subtlety, reflection or imagination. The sensation type appears stable and earthy but may lack creative spark. Vision and imagination, which could mitigate this earthbound state, are products of intuition, which is the inferior function of this type. The sensation type, in fact, will often depreciate intuitive expressions as unrealistic fantasies and thus be deprived of badly needed leaven at times of mental heaviness. The intuitive type is motivated chiefly be a steady stream of new visions and possibilities, derived from active intuition. The new, the strange and the different are a constant lure. He or she often perceives obscure connections between things which seem separate and unrelated. The intuitive mind works in quick jumps, which is sometimes difficult for others to follow. When asked to proceed more slowly, he or she is apt to become impatient, perhaps considering listeners slow in making connections. This type’s weakness lies in its inferior sensation function. The relationship to reality may be poor. The hard work required to bring a possibility into actuality or to make an intuitive flash generally accepted seems too onerous. He or she may remain misunderstood with insights, which if they are to bear fruit, must be patiently developed by others. The function types are seldom as definite as would appear by these descriptions. Usually the development of an auxiliary function will soften and modify the sharp characteristics here described. In addition, we have a further complication. According to the attitude type, each of the function types may have either an introverted or an extraverted orientation. Ideally, all four functions should be available to the individual in order to have a complete response to life experience. It is one of the goals of Jungian psychotherapy to bring in to consciousness and to aid the development of the inferior undeveloped functions in order to approach psychic wholeness. Many conflicts in human relationships and disputes can be understood through the theory of psychological types. For instance, Jung has explained the difference between the psychological theories of Freud and Adler on this basis. Freud’s theory is concerned chiefly with the individual’s need for and love of the object. Thus it is an extraverted theory. Adler’s theory is based on the individual’s need to maintain his own self-esteem, prestige and power. Adler emphasizes the inner, subjective need; hence his is an introverted theory. Differences in type can underlie difficulties in interpersonal relationships. Marital conflicts are often related to differences in psychological type. Knowledge of one’s own type and of the fact that other equally valid types exist can often help to relativize one’s own personal reactions and can lead to more conscious and fruitful human relationships. (2) Structure of the Psyche: The psyche can be divided into conscious and unconscious aspects. The ego is the center of conscious and the starting point for all empirical psychology. It is the seat of individual identity, and all contents which are conscious, must be connected with it. The unconscious includes all psychic elements which are outside conscious awareness and therefore are not connected with the ego. Contents of the unconscious are first encountered as complexes. A complex is an emotionally charged unconscious psychic entity made up of a number of associated ideas and images clustered around a central core. On investigation, this core is found to be an archetypal image (see below). One recognizes that a complex has been struck by the emergence of an affect which upsets psychic balance and disturbs the customary function of the ego. The ego stands between the inner world and the outer world, and its task is to adapt to both. By its extraverted orientation, it relates itself to external reality. By introversion, it perceives and adapts to inner, subjective reality. The requirement for external adaptation leads to the construction of a psychic structure which mediates between the ego and the external world of society. This mediating structure is called the persona, the Latin word for the ancient actor’s mask. It is the partially calculated public face an individual assumes towards others. The persona is composed of various elements, some based on the individual’s personal propensities and others derived from the society’s expectations and the early training of parents and teachers. The persona is a mediating compromise between individuality and the expectations of others. It is the role one plays in society. It is also a protective covering that shields from public view what is personal, intimate and vulnerable. The characteristic symbol for the persona is the clothes we wear. Dreams involving missing or inappropriate clothes refer to a persona problem. Ideally a persona should be appropriate, well fitting and flexible. It is especially important that the individual realize that he is not identical with his persona. The persona sometimes lends one a prestige and authority belonging to the collective group which is not properly used for personal ends. To identify with the persona can cause inflation and alienation from reality. Other persona disorders include a lack of persona which leaves the individual sensitive and exposed to every social touch, and a too rigid, defensive persona which is a barrier to realistic adaptation. For further discussion of the persona, see (3). Just as the persona stands between the ego and the outer world, so another psychic entity stands between the ego and the inner world of unconscious. This entity is called the shadow. The shadow is a composite of personal characteristics and potentialities of which the individual is unaware. Usually the shadow, as indicated by the word, contains inferior characteristics and weaknesses which the ego’s self-esteem will not permit it to recognize. The shadow may be personified in dreams by such figures as criminals, drunkards and derelicts. Technically it must be of the same sex as the dreamer. As with all unconscious contents, the shadow is first experienced in projection. This means that an unconscious quality of one’s own is first recognized and reacted to when it is discovered in an outer object. So long as the shadow is projected, the individual can hate and condemn freely the weakness and evil seen in others while maintaining a sense of righteousness. Discovery of the shadow as a personal content may, if it is sudden, cause temporary confusion and depression. This will be most likely if the ego’s previous attitude has bee especially inflated. The shadow is the first layer of the unconscious to be encountered in psychological analysis. It is not always a negative content. In many cases unconscious positive potentialities of the personality reside in the shadow. In such cases we speak of a positive shadow. Furthermore, the evil and dangerous aspect of the shadow is often due more to its circumstances than to its essence. Just as animals which have become vicious by starvation and brutal treatment can be changed into loyal companions by loving care, so the shadow loses much of its negative aspect when given conscious acceptance and attention. The problem of the shadow and its projection applies to collective psychology as well. The persecution of the Jews by the Nazis is a terrifying example of the extent to which a collective shadow projection can go. The same psychological mechanism operates in discrimination against other minority groups. For more on the shadow, see (4). The first layer of the unconscious, the shadow, is also called by Jung the personal unconscious, as distinguished from the collective unconscious. The personal unconscious or shadow contains personal contents belonging to the individual himself which can and properly should be made conscious and integrated into the conscious personality and ego. The collective unconscious, on the other hand, is composed of transpersonal, universal contents which cannot be assimilated by the ego. Between these two layers of the unconscious, the personal and the collective, is another entity with, so to speak, one foot on each side. This is the anima in a man and the animus in a woman. The anima is an autonomous psychic content in the male personality which can be described as an inner woman. She is the psychic representation of the contrasexual elements in man and is depicted in symbolic imagery by figures of women ranging from harlot and seductress to divine wisdom and spiritual guide. She is the personification of the feminine principle in man, the principle of Eros, pertaining to love and relatedness. The projection of the anima is responsible for the phenomenon of a man’s â€Å"falling in love. † Too much identification of the ego with the anima causes the man to outwardly manifest feminine qualities. Anima moods or states of anima possession can be recognized by their characteristic features of resentment and emotional withdrawal. Such a condition renders a man psychically paralyzed and impotent. It is most likely to occur in relation to a woman with whom he is emotionally and sexually involved. With full psychological development, the anima leads the man to the full meaning of human relationship and provides him an entrance to the deeper layers of the psyche, the collective unconscious. The animus is the corresponding representative of the masculine contrasexual elements in the psychology of women. It can be expressed in symbolic imagery by a multitude of male figures from frightening, aggressive men threatening rape to divining bringers of light. It is the personification of the masculine principle in women, the principle of Logos, which is the capacity for rationality and consciousness. A woman’s â€Å"falling in love† is likewise due to the projection of the animus. Subjective identification of the ego with the animus causes the woman to lose contact with her feminine nature and to take on more masculine qualities. The animus-possessed woman is more interested in power than in relatedness. As with the man’s anima, the animus is most often activated in relation to an emotionally significant man, especially a man with whom she is sexually involved. Indeed, the anima and animus have a marked affinity for each other. The slightest evidence of one is likely to evoke the other in the partner. With maturity and maximum development, the animus can become a valuable psychic entity enabling the woman to function with objective rationality and, similarly to the anima in a man, opens to her the collective unconscious. Further discussion of anima and animus is in (5) and (6). The collective unconscious, more recently termed objective psyche, is the deepest layer of the unconscious which is ordinarily inaccessible to conscious awareness. Its nature is universal, suprapersonal and non-individual. Its manifestations are experienced as something alien to the ego, numinous or divine. The contents of the collective unconscious are called archetypes and their particular symbolic manifestations, archetypal images. The concept of the archetype has a close relation to the concept of instinct. An instinct is a pattern of behavior which is inborn and characteristic for a certain species. Instincts are discovered by observing the behavior patterns of individual organisms. The instincts are the unknown motivating dynamisms that determine an animal’s behavior on the biological level. An archetype is to the psyche what an instinct is to the body. The existence of archetypes is inferred by the same process as that by which we infer the existence of instincts. Just as instincts common to a species are postulated by observing the uniformities in biological behavior, so archetypes are inferred by observing the uniformities in psychic phenomena. Just as instincts are unknown motivating dynamisms of biological behavior, archetypes are unknown motivating dynamisms of the psyche. Archetypes are the psychic instincts of the human species. Although biological instincts and psychic archetypes have a very close connection, exactly what this connection is we do not know any more than we understand just how the mind and body are connected. Archetypes are perceived and experienced subjectively through certain universal, typical, recurring mythological motifs and images. These archetypal images, symbolically elaborated in various ways, are the basic contents of religions, mythologies, legends and fairy tales of all ages. Such images also emerge from the collective unconscious of individuals through dreams and visions in cases of deep psychological analysis, profound subjective experience or major mental disorder. The experience of encountering an archetypal image has a strong emotional impact which conveys a sense of divine or suprapersonal power transcending the individual ego. Such an experience often transforms the individual and radically alters their outlook on life. Archetypal images are so various and numerous that they defy comprehensive listing. For our purposes, we shall describe four broad categories of archetypal imagery. I. The Archetype of the Great Mother, the personification of the feminine principle, represents the fertile womb out of which all life comes and the darkness of the grave to which it returns. Its fundamental attributes are the capacity to nourish and to devour. It corresponds to mother nature in the primordial swamp – life being constantly spawned and constantly devoured. If the great mother nourishes us, she is good; if she threatens to devour us, she is bad. In psychological terms, the great mother corresponds to the unconscious which can nourish and support the ego or can swallow it up in psychosis or suicide. The positive, creative aspects of the great mother are represented by breast and womb. The negative, destructive aspects appear as the devouring mouth or the vagina dentata. In more abstract symbolism, anything hollow, concave or containing pertains to the great mother. Thus, bodies of water, the earth itself, caves, dwellings, vessels of all kinds are feminine. So also is the box, the coffin and the belly of the monster which swallows up its victims. See Neumann(7). II. The Archetype of the Spiritual Father. As the great mother pertains to nature, matter and earth, the great father archetype pertains to the ream of light and spirit. It is the personification of the masculine principle of consciousness symbolized by the upper solar region of heaven. From this region comes the wind, pneuma, nous, ruach, which has always been the symbol of spirit as opposed to matter. Sun and rain likewise represent the masculine principle as fertilizing forces which impregnate the receptive earth. Images of piercing and penetration such as phallus, knife, spear, arrow and ray all pertain to the spiritual father. Feathers, birds, airplanes and all that refers to flying or height are part of this complex of symbols which emphasizes the upper heavenly realms. In addition, all imagery involving light or illumination pertain to the masculine principle as opposed to the dark earthiness of the great mother. Illumination of the countenance, crowns, halos and dazzling brilliance of all kinds are aspects of masculine solar symbolism. The image of the wise old man as judge, priest, doctor or elder is a human personification of this same archetype. The positive aspect of the spiritual father principle conveys law, order, discipline, rationality, understanding and inspiration. Its negative aspect is that it may lead to alienation from concrete reality causing inflation, a state of spiritual hubris or presumption that generates grandiose thoughts of transcendence and results in the fate of Icarus or Phaeton. III. The Archetype of Transformation pertains to a psychic process of growth, change and transition. It can express itself in many different images with the same underlying core of meaning. Perilous journeys to unknown destinations, exploration of dark places, purposeful descent to the underworld or under the sea or into the belly of a monster to find a hidden treasure are expressions of this archetype. The theme of death and rebirth as well as the symbolism of initiation rites in all of their various forms; the crossing of rivers or waters or chasms and the climbing of mountains; the theme of redemption, salvation or recovery of what has been lost or degraded, wherever it appears in mythological or unconscious symbolism – all of these are expressions of the archetype of transformation. The theme of the birth of the hero or wonder-child also belongs to this archetype. This image expresses the emergence of a new, dynamic content in the personality presaging decisive change and enlargement of consciousness. (8) A rich and complex example of this archetype is provided by the symbolism of medieval alchemy. In alchemy, the psychic transformation process was projected into matter. The goal of the alchemists was to transmute base matter into gold or some other supremely valuable object. The imagery of alchemy derives from the collective unconscious and belongs properly to the psychological process of transformation. (9) IV. The Central Archetype, The Self, expresses psychic wholeness or totality. The Self is defined by Jung as both the center and circumference of the psyche. It incorporates within its paradoxical unity all the opposites embodied in the masculine and feminine archetypes. Since it is a borderline concept referring to an entity which transcends and encompasses the individual ego, we can only allude to it and not encompass it by a definition. As the central archetype is emerging, it often appears as a process of centering or as a process involving the union of opposites. Alchemical symbolism gives us numerous examples of the central archetype as a union of opposites. For example, the philosopher’s stone, one of the goals of the alchemical process, was depicted as resulting from the marriage of the red king and the white queen, or from the union of the sun and moon, or fire and water. The product of such a union is a paradoxical image often described as hermaphroditic. Other images which are used to express the union of opposites are the reconciliation of opposing partisan factions and  the reconciliation of good and evil, God and Satan. The emerging central archetype gives rise to images of the mandala. The term mandala is used to describe the representations of the Self, the archetype of totality. The typical mandala in its simplest form is a quadrated circle combining the elements of a circle with a center plus a square, a cross or some other expression of fourfoldness. Mandalas are found everywhere in all times and places. They seem to represent a basic unifying and integrating principle which lies at the very root of the psyche. Mandalas can be found in the cultural products of all races. A fully developed mandala usually emerges in an individual’s dreams only after a long process of psychological development. It is then experienced as a release from an otherwise irreconcilable conflict and may convey a numinous awareness of life as something ultimately harmonious and meaningful in spite of its apparent contradictions. (10,11) Psychological Development is the progressive emergence and differentiation of the ego or consciousness from the original state of unconsciousness. It is a process which, ideally, continues throughout the lifetime of the individual. In contradistinction to physical development, there is no time at which one can say that full psychic development has been achieved. Although we may distinguish various stages of development for descriptive purposes, actually one stage merges into another in a single fluid continuum. In the early phase, the ego has very little autonomy. It is largely in a state of identification with the objective psyche within and the external world without. It lives in the world of archetypes and makes no clear distinction between inner and outer objects. This primitive state of ego development is called, after L? vy-Bruhl, participation mystique, and is shared by both the primitive and the child. It is a state of magical participation and interpretation between the ego and its surroundings. What is ego and what is non-ego are not distinguished. Inner world and outer world are experienced as a single totality. This primitive state of participation mystique is also evident in the phenomena of mob psychology in  which individual consciousness and responsibility are temporarily eclipsed by identification with a collective dynamism. Jung made no effort to present a systematic theory of psychological development. However, some of his followers, especially Neumann(12), have attempted to fill in this gap. Following Neumann, the stages of psychological development can be described as follows. The first or original state is called the uroboric stage, derived from uroborus, the circular image of the tail-eating serpent. It refers to the original totality and self-containment which is prior to the birth of consciousness. The ego exists only as a latent potentiality in a state of primary identity with the Self or objective psyche. This state is presumed to pertain during the prenatal period and early infancy. The transition between this state and the second stage of development corresponds to the creation of the world for the individual psyche. Thus world creation myths refer to this first decisive event in psychic development – the birth of the ego out of the unconscious. The basic theme of all creation myths is separation. Out of undifferentiated wholeness one element is discriminated from another. It may be expressed as the creation of light – the separation of light from darkness, or as the separation of the world parents – the distinction between masculine and feminine, or the emergence of order out of chaos. In each case the meaning is the same, namely, the birth of consciousness, the capacity to discriminate between opposites. The second stage of psychological development is called the matriarchal phase. Although beginning consciousness has appeared, it is as yet only dim and fitful. The nascent ego is still largely passive and dependent on its uroboric matrix which now takes on the aspect of the great mother. Masculine and feminine elements are not yet clearly differentiated so that the great mother will still be undifferentiated as to sex. To this stage belongs the image of the phallic mother incorporating both masculine and feminine components. Here, the ruling psychic entity is the great mother. The predominant concern will be to seek her nourishment and support and to avoid her destructive, devouring aspect. The father archetype or masculine principle has not yet emerged into separate existence. Mother is still all. The ego has achieved only a precarious separation and is still dependent on the unconscious, which is personified as the great mother. The matriarchal phase is represented mythologically by the imagery of the ancient Near Eastern mother religions, for example, the Cybele-Attis myth. Attis, the son-lover of Cybele, was unfaithful to her. In a frenzy of regret, reflecting his dependent bondage, he was castrated and killed. The matriarchal phase corresponds to the Oedipal phase as described by Freud. However, analytical psychologists interpret incest symbolically rather than literally as was done by Freud. The matriarchal phase is the phase of original incest, symbolically speaking, prior to the emergence of the incest taboo. In the life of the individual, this phase corresponds roughly with the early years of childhood. The third stage is called the patriarchal phase. The transition is characterized by particular themes, images and actions. In an attempt to break free from the matriarchal phase, the feminine with all its attributes is rejected and depreciated. The theme of initiation rituals pertains to this period of transition. The father archetype or masculine principle emerges in full force and claims the allegiance of the individual. Tests, challenges, rules and discipline are set up in opposition to the sympathy and comfortable containment of the great mother. The incest taboo is erected prohibiting regression to the mother-bound state. Once the transition to the patriarchal stage has been accomplished, the archetype of the great father, the masculine spirit principle, determines the values and goals of life. Consciousness, individual responsibility, self-discipline and rationality will be the prevailing values. Everything pertaining to the feminine principle will be repressed, depreciated or subordinated to masculine ends. In childhood development, the patriarchal phase will be particularly evident in the years preceding puberty. The fourth phase is designated the integrative phase. The preceding patriarchal stage has left the individual one-sided and incomplete. The feminine principle, woman and therefore the anima and the unconscious have been repressed and neglected. Another change or transition is thus needed to redeem these neglected psychic eleme.

Article Critique Essay Example | Topics and Well Written Essays - 750 words - 7

Article Critique - Essay Example This movement did much to shift the focus from job recovery to the national debt. Though some from the conservative stance felt the Tea Party movement was exactly what the nation needed, proponents such as Sarah Palin had a very different view. She supported the insurgency much more so than the leader of the movement. She was very much against the movement being defined by any one leader or party. TEA AND SYMPATHY Who owns the American Revolution? (Tanenhaus,2012) The article uses metaphor to describe the Boston Tea Party ship. Though there is a replica that is discussed I believe in this article the discussion demonstrates that State of the Tea party Movement. Jill Lepore goes on to describe one business commentator’s outrage of the federal government’s bailout plan, demanding a new Tea Party. He insisted on the unloading of derivative securities into Lake Michigan. The article highlights the importance of the Founding fathers and those events that transpired in 1773; comparing them in a way as to give the opinion that today’s Tea Party movement is small in comparison and lacks the convictions of those of that time. Jill Lepore’s bias seems to be in agreement with the argument’s she presented in the article, and is in agreement that no particular leader or party should be on whole responsible for the Tea Party movement and that those who are considered Tea party faithful’s are emphatic of quixotic crusades (Tanenhaus,2012). Lepore disagree that the tea Party movement has a misguided view of the American Revolutionary period (Mohamed, 2011). Lepore uses sources such as Christen Varley, responsible for holding monthly Tea Party movement meetings and CNBC business commentator Rick Santelli. Lepore suggests that if the Tea party is to be thought of as fundamentalism history and its review will not change these thoughts. No Thanks for the Memories Gordon S. Wood (Wood, 2011) This article is actually a response to the Jill L epore book â€Å"The Whites of Their Eyes: The Tea Party’s Revolution and the Battle over American History, (Princeton University Press, 2011). He describes Jill Lepores attitudes and opinions as mocking and describes her discussions as ramblings of present day Tea Party movement issues with those of the Revolution. He considers her question of what our forefathers would do to be a question that is not only pointless but serves little purpose then to provoke conversation towards what seems to be her favorite subject, the American Revolution. Lepore regards the Tea Party as an ageless and nearly sacred event almost to the point of worship. Throughout her book she constantly reiterates that in the case of the Tea Party movement history is clearly not understood and possibly incapable of being understood by today’s government. She dismisses interpretative doctrine of original ideas as fundamentalism (Woods, 2011). Woods opinion is that Lepore should have as her focus mem ory of the American Revolution more so than emotional ties and that these ties cloud and bias her vision and opinion. He expresses concern that her scientific credentials are not demonstrated and that the book leaves us with little actual understanding of the Tea Party movement. He feels the book should have ‘

PR individual presentation(Case study) Speech or Presentation

PR individual (Case study) - Speech or Presentation Example For this reason, it should be rooted in the reality and connect with citizen as well as the world. A strong country brand helps to boost exports, tourism, foreign direct invest and public diplomacy. A good example is Rwanda, and the genocide was extremely damaging to the country’s image at international and regional levels. After the country had gained economic stability, branding was essential in order to clear the country image. As a result, the economy growth was 129% while tourism increased by 183%. As the brand drive economy, a strong country brand is paramount because they complement each other. Developing strong country brands requires commitment of all the stakeholders in the country. Branding is not just about having good infrastructure to attract foreign investors and tourist. It is creating a high spirit that runs through the people because they are the face of the brand. Globalization has resulted to stiff competition among the country brand; therefore, it is vital for countries to continue shaping and reshaping their identities in order to remain competitive. We should understand reasons a state is chosen over the other for tourism or foreign direct investments. The same strategy a consumer uses to select a product brand, a country brand is subjected. Just like how users choose their favorite toothpaste or banks, country brands are analyzed using the same

Battle of Waterloo Research Paper Example | Topics and Well Written Essays - 3500 words

Battle of Waterloo - Research Paper Example Since the achievement of such an objective is rarely feasible in practicality, although theoretically plausible, the theory of warfare attempts to teach and calculate the moral factors such as the mistakes which the enemy is likely to make; or the impression which can be created to intimidate the enemy forces. Written almost two centuries ago, by a renowned Prussian thinker and theorist, Carl von Cluausewitz, these highly controversial yet oft cited set of principles commonly referred to as the "Principles of War" present a comprehensive summary of the tactics and strategies that can be used during war. These principles have proved to be highly effective over the years, and are adopted by nations worldwide, owing to fact that they encompass all the moral as well as psychological aspects of warfare (Clausewitz, Graham, 2008). This paper on Principles of War: Battle of Waterloo discusses and analyzes the nine principles of war with regard to and as applied in the Battle of Waterloo. Th e Battle of Waterloo: Brief Overview The Battle of Waterloo was fought between the Imperial French army commanded by Emperor Napoleon and the Seventh Coalition - which comprised of an Anglo-allied army commanded by the Duke of Wellington; and the Prussian army commanded by Gebhard von Blucher. It was fought on June 18, 1815 near Waterloo which is in present-day Belgium. Napoleon’s army was defeated by the combined forces i.e. the Seventh Coalition and the Anglo-Allied army, and is considered to be historical since it marked the end of Napoleon’s tyrant rule, and his hundred days of return from exile (BBC History, 2011). The battle was historical since the mighty French emperor and military leader Napoleon’s rule came to an abrupt end after his defeat at the hands of the combined armies led by the British, German, Belgian, Dutch and the Prussians. The principles of war discussed in the following section, aims to discuss, examine, and analyze the various strategie s used by the combined forces against Napoleon’s army, that eventually led to his fall. The nine principles of war: 1. The Principle of Objective: â€Å"No one starts a war—or rather, no one in his senses ought to do so—without first being clear in his mind what he intends to achieve by that war and how he intends to conduct it†. Karl Von Clausewitz (in Mahnken & Maiolo, 2008, pp. 2) The principle of objective refers to the fundamental purpose of the war / military operation, which must be clearly identified, defined and attained in an effective manner. The two parties involved in the battle included Napoleon’s army on one hand, and the allied forces comprising of the British, the Belgians, the Germans, and the Prussians on the other. The basic objective of Napoleon was to continue his accession and dominance, and restore his power after his exile, in the year 1815 and to defeat the allied European forces which had begun to reassemble their armies in a bid to overthrow Napoleon’s rule. Napoleon’s objective was to destroy the efforts of the allied forces, prevent them from gaining more support and expanding their existing coalition, and destroy the British, Prussian, Dutch, and Belgian armies before they could gather more support and assistance from other powers. On the other hand, the basic objective of the allied forces was to stop the emperor’s (Napoleon’s) accession, and overthrow him and thus bring a halt to his reign by defeating him and to end his tyrant rule as the emperor of France. 2. The principle of Offensive: This principle entails the retention, seizing of and exploiting the initiatives of the enemy by launching an offensive

Journal Essay Example | Topics and Well Written Essays - 1500 words

Journal - Essay Example Conflict arises in determining the option to undertake without jeopardizing the business. This kind of conflict is easily resolved since the scales of decision are easily tipped towards one of the choices. Leaders faced with negative choices experience avoidance-avoidance conflict. Both choices have negative outcomes and the individual has to settle for the less burdening option. Leaders can be attracted to, and repelled by traits present in the same activity or goal. A business opportunity may have huge profits, but involves big risks that can destroy the business. This scenario introduces approach-avoidance conflict where the choices are both attractive and repelling. The huge profits present a positive choice while risks are repelling aspects of the investment opportunity. This creates the need for calculated risks that can provide the most plausible solution to the conflict. The feelings present to the leader can act as an avenue to resolve the conflict. Another form of conflict arises when the choices available are partially negative and partially positive. This form of conflict is referred to as double approach-avoidance conflict due to the partial positive and negative aspects of the choices. A graduate may have to choose between a well paying job with odd working hours and a low paying job with good working conditions. Individuals faced with such conflicts have to weigh the available options and try out important decisions before reaching a conclusion. Leadership as Empowering Others Executives in an organization are better placed as leaders rather than managers. Executives have the responsibility of making strategic decisions that affect the organization in the long term. This involves creating strategies, analysis, policies, evaluation, and planning that determine the future of the organization. These leaders act as visionaries in the organization and are responsible for inspiring their juniors. For instance, the CEO of a company has to inspire junior executives as a way of grooming the next CEO and transforming them to conform to the vision of the organization. Transformational leaders introduce changes to the organization that help the organization achieve the laid out goals. Transformational leaders convert followers into leaders by playing the role of moral agents that provide inspiration. Transactional leaders emphasize teamwork, task accomplishment, and problem solving as a way of working with others for a common goal. Leaders stimulate their subordinates by proposing new directions that the followers have never experienced. This form of empowerment comes in form of new exciting intellectual ideas that energize the followers. For instance a leader can encourage and stimulate subordinates to create new inventions. This empowers subordinates to become creative and participate in decision making processes that lay out future goals for the organization. This helps them climb the leadership ladder and prepares them to make cruc ial decisions in the organization. Emotional intelligence Emotional intelligence (EI) can be utilized to foster competitive advantage and profitability. Leaders require the ability to perceive and generate emotions in the thought process and regulate their emotions to promote intellectual growth. EI has become a paramount requirement for top executives for effective leadership and performance. Effective use of EI provides

Sergei eisenstein and his influential on society Essay

Sergei eisenstein and his influential on society - Essay Example There are various influences of Sergei Eisenstein in the works of film and movie theory. Additionally, there are fundamental influences of his films that have inspired the European history and culture in different contexts. For instance, a majority of his films inspired the Russian Revolution through the definitions of imagery to free the lower class. This means he was at the forefront in using most of his silent films in presenting the plight of the ordinary Russian citizen taunted by the terror apparatus of the state. In the same perspective, Sergei Eisenstein was also a prolific author of reverence who related the stories of former USSR with those of Dickens, Goethe, Shakespeare and Da Vinci among others to address pertinent matters of society (Cunningham & Reich, 556). Alternatively, through consistent research in other eclectic interests, he was determined to articulate European culture and history through the comprehension of cinema theory. In that quest, he got obsessed with t he success of the Russian Revolution through varied consultations with various scholars that included Marx in understanding the significance of cinema in society. Furthermore, in his essay called the Film Sense, he attempted to clarify that film was part of both the truth and the result of the endeavors of humanity. On the same note, his extensive use of the montage in film theory ensured that he influenced a variety of filmmakers in shaping the industry. In that view, Eisenstein concurred that the essence of editing in film superseded the aspects of a scene or moment. Additionally, he also impacted upon the European history and culture by encouraging the fusion of emotion into the collision of shots to strike feelings among the audience. This would also help in the striking of meaning of the film metaphors in order to spur the peoples’ conscience. Moreover, the former architect also integrated the methods of montage in terms of juxtapositions to achieve meaning and significa nce (Cunningham & Reich, 552). Therefore, in his teachings, Eisenstein stressed on four factors of lasting and efficient film making that included over tonal, intellectual, tonal, rhythmic and metric. It is also critical to note that Eisenstein infused various themes and works of literature of authors such as Le Pere Goriot and Honere de Balzac in order to achieve the meaning of art. This strengthened various aspects of European culture especially in the encouragement of the struggle. Alternatively, the integration of the Haitian struggle into the film curricula ensured that the struggles of the world were understood by the European society in depth. Sergei Eisenstein also impacted upon the European history culture by making comparisons with the character of Jean-Jacques Dessalines through movements, actions, and drama among others. In the context, the elements of literary didactics ensured that the dramatic content presented to the audience had significance in reforming their perce ptions. Similarly, through his opportunities of lecturing, Sergei Eisenstein inculcated the technicalities odd editing, photography and directing on his students. This was backed by the encouragement from his students to attain the elements of expressiveness, creativity and individuality in making film presentations (Cunningham & Reich, 551). Furthermore, this meant that there were political and social awareness

FedEx Corporation Essay Example | Topics and Well Written Essays - 3500 words

FedEx Corporation - Essay Example The company realizes the importance of impeccable customer service and has tried to satisfy the needs of its customers in a superior manner. FedEx had, in collaboration with Motorola, developed pocket PC for couriers to enhance customer service (Editors, 2002) FedEx also has a foolproof complaint management system where consumer complaints are speedily handled. Organization Culture FedEx has built a culture wherein every employee is urged to express ideas and strive for excellence (Flaum, 2005). This has ensured that its employees do not become complacent. The company has flourished primarily because of the passion with which FedEx employees serve customers (Smith, 2001). People First Barney & Wright (1998) over that FedEx works on the philosophy of ‘people-first.’ Fred Smith is a staunch believer of the fact that customer satisfaction begins with employee satisfaction. FedEx has embraced technology to ensure that customers can track their orders through multiple platforms. Use of technology has enabled the company to improve its effectiveness and efficiency. A case in point is the bar code system generally used in retail stores. FedEx was a pioneer in using the same bar code technology to track packages. Equipped with state-of-the-art-technology, FedEx launched its Critical Inventory Logistics services to enable customers efficiently manage high-value and time-critical inventory (Business Wire, 2012). The new service was targeted at the telecommunications, semiconductor, and biomedical industry.

Automobile and Toyota Company Essay Example for Free

Automobile and Toyota Company Essay 1. Toyota has built a huge manufacturing company that can produce millions of cars each year for a wide variety of consumers. Why was it able to grow so much bigger than any other auto manufacturer? The Toyota Company grow so much bigger than any other auto manufacture because of the act according to preference of the customer Market segment. Toyota Company produce large range of subcompacts to luxury and sports vehicles to SUVs, trucks, minivans, and buses. They segment their product according to need of customer. They create their market segment. They produce Scion car that is target the teenage and it becomes famous among the teenage. 2. Has Toyota done the right thing by manufacturing a car brand for everyone? Why or why not? I think Toyota Company done the right thing by manufacturing a car brand for everyone. They manufacture a really great range of exciting new cars which will open people’s eyes and minds. They analyze what a customer need and develop the same feature automobile in the comparable price. They divide their market segment. In the market there are different people with different perception. Toyota prove they produce wide variety of the auto that will use by different types of customer. They try to develop the auto according to the customer perception. They want to satisfy each customer. The price range of the Toyota Company is lies very expensive to inexpensive. Toyota automobile are in the reach of middle class to high class such that the user of the Toyota automobile are very much higher than other automobile company. Toyota understands that each country defines perfection differently. 3. Did Toyota grow too quickly as Toyota suggested? What should the company do over thenext year, 5 years, or 10 years? How can growing companies avoid quality problems in the future? Toyota Company grows too quickly as their suggested. Toyota is integrating its assembly plants around the world into a single giant network. They do customize on the car according to the need of the customer. Toyota’s need to keep their product’s selection and quality superior to their competition. Toyota company are become one of the successful manufacturing company due to  their consistent quality. They have to maintain their performance quality. Whether they customized the car or develop new model according to customer need they need to maintain same core quality all around the world. They need to maintain reliability on automobile. The same superior quality and dependable should be maintaining. The design of the automobile should be unique and while developing new model design car they need to maintain core material as same. They need to customize regular according to the customer. They need to maintain extraordinary look for each model. Such that it will look very distinctive than competitor. They need to produce high quality and high specific design automobile. They need to give services after the purchasing the product and more ever they have to delivery every item in the time. They need to create more value of automobile by giving some of the discount or either by various services. They need to provide e-support for their customer and they need to update their information through the media. As we know people perfection are different according to the geographic area. A great product by itself is not enough so the Toyota need to advertise themselves according to customer perfection at that place. They need to make market strategy differently in different country. The Toyota Company is giving Guaranteed Auto Protection to their customer. They need to keep it up.

Rift Deepens as NBA Draws Line on Compensation Essay Example for Free

Rift Deepens as NBA Draws Line on Compensation Essay The N. B. A. is a well established association and is well-known across the globe. Over the past couple months the association has been in contract talks between the players union and the N. B. A. officials. With the basketball season right around the corner, both sides have been able to work out an agreement to get the players back on the court playing the game they love. As Porter’s â€Å"Five Forces† model describes how certain areas of the industry could be affected or affecting the entire game, and people throughout the basketball world. The way that I look at this situation and in regards to the N.  B. A. and the players, because of a strong competitive force in the industry, and according to Porter, these forces can be a threat on the entire involvement in basketball. The lockout brings forward a lot of issues between the union and the officials who are always trying to get more money out of the teams, which is where the talks have heated up in the recent weeks due to a dispute over a 50-50 concept of revenue share. In relation to Porter’s â€Å"Five Forces†, the NBA dispute raises a great deal of negotiation in regards to these â€Å"Five Forces†, and how the economy is affected. With the cancelling of the first two weeks of the basketball season, players and fans are constantly finding ways to either spend their money in other markets, or from a player’s standpoint, find a different league to play in during this lockout. Therefore, according to Porter, the closeness of substitutes is creating conflict within the entire industry. Whether the NBA lockout is settled sooner than later, the game may lose a tremendous amount of fans because they may have settled for an interest in a different area of entertainment. Several players including top stars are seeking interest overseas in leagues in countries such as Italy, France, and Spain, and if negotiations continue we could see a lot more players seeking playing time against strong competition. Even though I wouldn’t consider this a risk but I feel that the NBA should feel a little heat because if disputes continue and an agreement isn’t settled, European leagues could become a substitute, as well as a threat. The third force on the list is the bargaining power of buyers. This concept does relate to the article and the overall scheme of things because the fans are a huge part of the NBA and create a tremendous amount of revenue within the game. Even though it’s difficult for fans to directly change the price of certain products, the NBA may have to look at keeping the customer happy, therefore a change in price of memorabilia, or ticket price could pose as a threat to the NBA, and the longer the lockout, the more power the fans could embark on. Thus, the same being said for Porters force in regards to the Bargaining Power of Suppliers. The league and the organizations themselves provide several inputs to the industry as a way to generate a fan base, create excitement within the city, therefore with a lockout in deep talk, the power of the supplier doesn’t seem to be as big of a threat as the buyer, but could become more and more of a threat as the lockout extends over a longer period of time. There are a lot of people that provide labor and services within the NBA, therefore if a lockout remains, these people involved in such services could be impacted a lot more than what we may see. With negotiations and offers at a standstill, the NBA could be in a lot of trouble in regards to Porter’s â€Å"Five Forces† within the industry of entertainment. Even though the fans don’t really have a say in the whole process, but if talks continue the fans will show their depreciation to the sport creating a loss in profit and overall excitement towards the game. As the talks continue, there are several threats that will remain intact, and create conflict for the NBA as they try to remain calm but seek for a settlement that seems fair. These talks are in millions of dollars, and with both sides not seeming to be willing enough to give up any compensation for their efforts, the lockout could be a long one and the NBA may be in a significant amount of trouble with competitors overseas, the bargaining power of both buyers and suppliers. Since the intensity of the rivalry is so strong between these established firms, some fans will remain loyal to their teams, but others may look for options. Overall, the NBA, in regards to Porters’ â€Å"Five Forces,† could be in trouble if this dispute is not settled and the longer it continues the more threats that could be factored in to the whole process. The players union is trying to remain strong, and the officials are trying to seek more and more money out of the teams. But with smaller market teams this doesn’t seem necessary because how is a smaller market team going to be able to hold on to the fan base, where the revenue is generated, and in return have to give up even more of a financial hit. The whole idea and looking at the â€Å"Five Forces,† Porter should be in talks with the NBA and they should look at the entire picture rather than just worrying about the money involved. This dispute creates a lot of attention, where in a world of financial power, you get the sense that maybe there should be a stronger focus on the â€Å"Game† rather than the financial component. In my opinion and after looking at it from a strategic point of view, I feel that Stern and all his officials are being extremely greedy. There is more to sports than money, when both sides realize the amount of people being affected in the whole process and the threats continuing to impose on the game, then they will understand the stupidity in the lockout and get back to the game the love.