Growth Strategy for VAS SZ Review meeting Bangalore 23-7-11

1. Growth Strategy for VASSZ Review meeting Bangalore 23-7-11

2. What all in the Basket? • VAS Industry focus • Organization for VAS • Targets & Achievement • Revenue from • BSNL Tunes • IVRS based VAS • USSD based VAS • STK based VAS • Mobile TV & BSNL Live • Apps Store

3. Future for VAS Existing focus on Audio/ Text based content will look – like era of only Radio, Newspapers & Pagers • New era of Color TV, Video content • TVs enabled 100 million to watch TV programmes, • Mobiles can enable 700 million users to watch TV • For additional 600 million it will be their first LCD screen • So Focus on Multimedia content through BSNL Live

4. Industry Focus on VAS • Multi Media Rich Content - Video PRBT, Video Tones & Videos. P2P sharing of video data • Application Stores - GPRS based applications • Facebook, Twitter, Orkut, Google etc popular n/w sites on Mobile – Routing of this traffic/ footfall through BSNL Live • Discovery of content to be Pull based . Search engines will be more popular on Mobile than PCs • Advertisements on Mobiles will bring more revenue than Internet • Existing focus • PRBT • SMS – Text based content • GPRS a little • Discovery of VAS is Push based

5. Vision for Next 3 years • Revenue @ of 20% mobile revenue • 2011-12 – Rs. 3200 Crores, • 2012-13 – Rs. 4000 Crores, • 2013-14 – Rs. 5000 Crores • Aggressive push for target market share in the following services • Mobile broadband/ 3G Multi-media services • Mobile Advertisement • Mobile banking • Mobile commerce • M-Governance services • Re-organization of VAS Business

6. VAS Organizational Structure • Structure at Zones as per BCG recommendations : • Interim structure of staff recommended by BCG at Zone level: AGM- 2, SDE/JTO- 25. • South Zone- Recommended SDE/JTO 29. • Currently posted - 15 • To be posted - 14 Structure recommended at Circle level DGM ( VAS & 3G) - 1 AGM (VAS) - 1 SDE/JTO - 2 to 4 These should be implemented on priority for the desired results.

7. Overall VAS Target & Achievement

8. Targets Vs Achievements- South Zone

9. Revenue from BSNL Tunes

10. Revenue from BSNL Tunes

11. Key actions for BSNL Tunes • AP yet to do commercial launch for CDMA • Selling of corporate signature tune. • Penetration of service among post-paid subscribers needs push • Monitoring of service of contents and comparison with other Telco's. • Collection of Pamphlets from VAS provider & Distribution among retailers. • Promotion of service through SMS, OBD, Post-Paid bill insertion, try & buy offer etc. • Integration of PSTN PRBT provisioning system with the CDR billing system and standardization of procedure.

12. PSTN BSNL Tunes - Payments

13. Revenue from IVRS based VAS

14. Revenue from IVRS based VAS

15. Actions for IVRS VAS promotion • Coordination & regular review with IVRS VAS Providers • Get Pamphlets from VAS providers & Distribute through Sales Channels. • Promotion by • SMS blast, • Mob-ad platform, • BSNL Tune on Service connections, • Post call USSD messages, • OBD from call centres, • Display on Circle Websites • Policy related to special plan for PRI to VAS providers for IVR-OBD promotion is under process.

16. Revenue from USSD based VAS

17. Revenue from STK based VAS

18. CIRCLE-WISE 'STK' SERVICE STATUS

19. USSD / STK related suggestions USSD based VAS – Empanel 4 to 5 VAS Providers- Notification available on BSNL website upto 19-8-2011 STK based VAS: Advantage – No need to know short code / keyword. Services available in SIM menu itself. Challenge – Helping customer to locate the STK menu in his handset. Remedy – Can be done easily by the POS/ Sales Channels. STK VAS Provider (M/s Rediff) has been asked to get pamphlets printed for education of customers and supply them to DGM (Sales) in circles for distribution through Franchisee/ Retailers.

23. Revenue Distribution

25. BSNL LiVE / IVVR Issues • BSNL LiVE – 3G Content being uploaded by 3 VAS providers: PK Online, Shemaroo and Times on BSNL LiVE (SDP), since more than 4 months, but content download report is not available from SDP. Hence they are not able to raise invoices and get their payments. • IVVR • Subs are not educated properly. Most of the calls being received on short codes are audio calls in place of Video calls. • No reports are received in corporate from South Zone. • No revenue share is being paid to VAS provider s.

26. BSNL Live Services • Video on Demand • Movies • Full track song download • Multiplayer Games • Apps Store • Comics • BSNL Hello TV • Tones • Wallpapers • Re 1 store

27. BSNL Live Features BSNlLlive is the only wap portal carrying entire Sun Network bouquet Over 200 movies across Tamil, Telugu, Malayalam, Kannada, Hindi, Bengali languages Over 8000 full length tracks across languages and genres Wallpapers, Games, Videos and Ringtones

28. BSNLlive Features Channels at less than Re. 0.50 per day per channel Attractive Subscription Packs Content for less than Rs. 2 per day Event based packs at Re. 1 per day Full length movies as low as Rs. 25 per movie. Event based promo of Rs. 15 per movie

29. Action points to promote BSNLlive Introduce BSNLlive script in Call centre IVR. This is done is all zones except South Introduce BSNLlive as call closing script in Call Centre – When a CC Executive closes a call, he/she can introduce BSNLLive Facilitate Callcentre training in all circles: Bangalore (Kar & Ker)– Completed Chennai & Tamilnadu– Completed AP – Pending Outbound Dialing by BSNL call center introducing features of BSNLlive to premium customers

30. Action points to promote BSNLlive Include BSNLlive Ads in Phone Bills Roll out BSNLlive jingles in RBTs Facilitate BSNLlive awareness training for all FSEs Append BSNLlive promos in Service message for atleast 2 weeks every month Radio Ads of BSNLlive jingles Emailers to BSNL customers

31. Ask CPs to provide IVR script recording for call centre RBT jingles Radio jingles Creatives for Bill Ads, Banners and Posters Executives to conduct training on BSNLlive Content for Emailers

32. BSNL LiVE Issues • Charging of Movies uploaded from Shemaroo login does not take place on BSNL portal – causing lot of discrepancy in the movie streaming reports & download reports. • Movie streaming report shows movies streamed from 8 different Shemaroo vendors, whereas the movie download report shows movie downloaded from only 3 Shemaroo vendors. • Content being uploaded since March, but content download report is still awaited • App store : South zone launch date was 24th June 11 but is still pending on following reasons • IN testing report for the Hyderabad circle. • Tele-Dna SDP team needs to put CDR patch. • Re-testing of the Connection Failed Scenarios. [Ernakulam]

33. Apps Store • Apps Store is a service, which allows user to browse and down load applications • Available for 2G and 3G customers with the help of vendor “Accenture” • A wide variety such as Entertainment, Games, Social networking, Cricket, Utilities etc • Available for both pre-paid and post-paid services • Apps can either be purchased by making a one time payment or subscribed to for a period of 1 day, 7 days or 1 month

34. Mobile Ad. Services – Integrated channels • MCN (Missed Call Notification) • PRBT Ad Tune • Idle Screen • SMS Response Text Ad. • IVR response Audi Ad. (IVR Inbound and Out dial) • WAP response Ad (WAP Push)

35. Mobile Ad. – Pending Integration • WAP Banner • Prepaid Top-Up notification text Ad. • USSD response Text AD/USSD response UMB Ad. • Web SMS (P2P)

36. New TRAI Directive • Comments, if any, on TRAI direction issued on 4th July 11 which mainly states that – • All Service Providers (including BSNL) to ensure within 30 days: • In all cases where VAS is activated through OBD or service provider initiated call or during pre-call ringback announcements (both voice as well as automated) and where a consumer dials a specified telephone number or short code or a telephone number providing interactive session for subscribing to a VAS, the service provider shall obtain confirmation from the consumer through consumer originated SMS or e-mail or FAX or in writing within twenty four hours of activation of the VAS and charge the consumer only if the confirmation is received from him for such VAS and shall discontinue such VAS if no confirmation is received from the consumer;

37. Thank you