Marketing

Management
CA-III ASSIGNMENT BBA-LLB 3

“Product life cycle of home broadband

services”

Submitted to -
Dr. Himanshu Mathur

Submitted by -
Kuldeep Singh Rathore
022301000006004006
Home Broadband Services

A. Introduction of industry

Bharti Airtel Limited is a leading telecommunication company. The telecommunication

industries come under the sector of information and communication technology and is
comprised of internet service provider and telecommunication companies which played the
leading role in the evolution of mobile communication. This industry helped in the
modernization of the society by facilitating communication, commerce, and connectivity
across the globe. Moreover, due to the rapid technological advancements, increasing
consumer demands and the shift of the preference of the customers towards online
platforms, this sector has also evolved rapidly. Being started with the traditional telephone
calls, which is the biggest revenue generator of the industry, it now stretches its arms to 3D
video call, live streaming, high-speed internet, images etc. The introduction of 5G internet
is the recent example of such advancement. This sector is the epicentre for growth and
innovation. The continuous use of these services is embedding in the society and this sector
is being the world’s biggest machine.

In today’s modern world each and every segment of the market is in touch with this
industry. From learning in schools to any business transaction, small shopkeeper to big
business houses and government to private sectors etc. this global system touches nearly
all of us. The introduction of OTT services such as WhatsApp, Instagram, Facebook, has
offered effective alternative communication methods other than the traditional telecom
service which also leads to the evolution of this industry. Due to the technological
advancement and the introduction of newer faster internet technology and Artificial
Intelligence, this sector holds the potential connecting vast number of customers more
effectively and solving their problems in one touch. This increasing use of the advanced
technology ultimately leads to the relines on this industry.

Due to the dynamic and extensive reach of this industry there are certain challenges faced
by it which includes infrastructure investment, cybersecurity risk, data privacy, regulatory
compliance etc. The emerging global trends which include digital transformation and focus
on the sustainable approach to achieve the same. The data shared via this medium can also
significantly impact on the public welfare and national security. Additionally, as the
present-day society is getting more use-to to this sector which requires regulation of
pricing, service quality, competition etc. so that it can used for the benefit of the customer
and development of the country.

As the society progress, so as the digital landscape and this industry plays a pivotal role in
shaping the modern world. The introduction of newer advance technology has significantly
changed the functioning of this industry, which started from the traditional landline system
to the present-day video conferencing and other wireless services and now becoming the
basic requirement in the individual’s life. Therefore, as this industry is beneficial for the
growth and development of the society at the same time it is also necessary for some
regulatory framework to avoid the misuse of the requirement of the individual.

B. Introduction of company

Home broadband services have revolutionized the way households access the internet,
fundamentally transforming daily life and communication. Emerging in the late 1990s and
early 2000s, broadband technology offers users high-speed internet connectivity, allowing
for seamless streaming, gaming, remote work, and online learning. Unlike traditional dial-
up connections, which were slow and often required users to disconnect their phone lines,
broadband provides a constant and reliable internet connection, making it an essential
utility for modern homes.

The primary technologies enabling home broadband services include Digital Subscriber
Line (DSL), cable, fiber-optic, and satellite connections. Each technology has its own
strengths: DSL utilizes existing telephone lines, cable broadband leverages cable TV
infrastructure, fiber-optic connections offer unparalleled speed and reliability, and satellite
broadband provides access in rural and remote areas where other options may be limited.
The evolution of these technologies has led to increased competition among service
providers, resulting in a wider array of plans and pricing options for consumers.
The significance of home broadband services became even more pronounced during the
COVID-19 pandemic, as remote work and online education surged in popularity.
Households needed reliable and fast internet to support multiple users engaging in video
conferencing, streaming classes, and accessing online resources simultaneously. This shift
highlighted the importance of broadband as not just a luxury but a vital service for everyday
life.

Broadband service providers have continually adapted to meet consumer demands for
higher speeds and better service quality. The introduction of fiber-optic technology has
allowed some providers to offer gigabit internet speeds, significantly enhancing user
experience for bandwidth-intensive activities such as 4K streaming and online gaming.
Additionally, many providers have begun to offer bundled services that include internet,
television, and phone services, creating greater value for customers.

Consumer behavior has also evolved, with users increasingly seeking flexible plans that
cater to their specific needs. As a result, many providers now offer a variety of pricing tiers,
data limits, and contract lengths. No-contract plans have become particularly popular,
appealing to those who prefer the freedom to change providers without penalties.

Despite the numerous advantages of home broadband services, challenges remain. Issues
such as the digital divide, where certain populations lack access to reliable internet,
continue to persist. Rural areas, in particular, often struggle with limited service options
and lower speeds compared to urban centers. Service providers and government initiatives
are increasingly focused on addressing these gaps through infrastructure investment and
community programs.

The future of home broadband services looks promising, with advancements in technology
such as 5G and satellite constellations aiming to further enhance connectivity. These
developments have the potential to expand access and improve service quality across
various demographics, driving innovation in how people interact with the digital world.

In conclusion, home broadband services are a cornerstone of modern living, providing

essential connectivity that supports work, education, and entertainment. As technology
continues to evolve and consumer needs change, broadband providers are tasked with
delivering reliable, fast, and accessible internet services, ensuring that everyone can benefit
from the digital age. The ongoing investment in infrastructure and customer-centric
solutions will play a critical role in shaping the future landscape of home broadband
connectivity.

C. Research Methodology

I. Type of Research

This study employs a quantitative research approach, focusing on the analysis of publicly
available data related to home broadband services, including market trends, subscriber
growth rates, and customer satisfaction metrics.

II. Objective of Study

The main objective of this study is-

• To analyze the current trends and growth patterns in the home broadband services
market.
• To assess consumer satisfaction levels and the factors influencing their choices in
selecting broadband service providers.
• To evaluate the impact of technological advancements on consumer expectations
and service offerings.
• To identify potential gaps in service delivery and areas for improvement in the home
broadband sector.

III. Hypothesis of Study

The following hypothesis was framed to conduct the analysis-

H1: Customer satisfaction initiatives in the maturity stage correlate with higher retention
rates.

IV. Tool use

The study employs surveys, interviews, focus group, statistical analysis software, thematic
analysis etc.

V. Limitation of the study

This study has the following limitations as-

• The focus on publicly available data may restrict the depth of insight compared to
primary research.

• Findings may quickly become outdated due to the fast-paced nature of technological
advancements.

• The study may not fully represent the broader population if data sources are limited
to certain demographics or regions.

D. Product Life Cycle

The product life cycle (PLC) is a crucial concept in marketing and business strategy,
depicting the various stages that a product undergoes from its inception to its decline. In
the context of home broadband services, this cycle outlines how providers navigate the
competitive landscape, consumer demands, and technological advancements.
Understanding the PLC of home broadband services allows companies to implement
effective strategies tailored to each stage, ensuring sustained growth and profitability.
I. Introduction Stage

The introduction stage marks the launch of home broadband services into the market, a
period characterized by low consumer awareness and limited adoption. This phase
began in the late 1990s and early 2000s when traditional dial-up internet was the norm.
Providers faced the challenge of educating potential customers about the advantages of
broadband, including faster speeds, improved reliability, and the ability to use the
internet while on the phone.

Marketing Strategies:

• Awareness Campaigns: In the introduction stage of home broadband services,

providers launched extensive awareness campaigns to inform potential
customers about the benefits of broadband technology. These campaigns utilized
various advertising channels, including television, radio, print, and digital
media, to reach a wide audience. The key messages emphasized advantages such
as significantly faster internet speeds compared to traditional dial-up, enhanced
 reliability, and the ability to connect multiple devices simultaneously. By
focusing on education, providers aimed to dispel misconceptions about
broadband and highlight how it could improve everyday internet experiences for
users.

• Promotional Offers: To entice early adopters, companies often implemented

attractive promotional offers. These included **introductory pricing**, where
new customers could sign up for lower rates during the initial months of service,
making the switch to broadband less financially daunting. **Discounts** on
long-term contracts encouraged commitment, while **free installation
services** eliminated an additional barrier to entry. Such incentives were
designed to minimize the perceived risks associated with adopting a new service
and to encourage trial use among hesitant consumers.

Challenges:

• Infrastructure Costs: One of the most significant challenges during the

introduction of home broadband services was the high cost of establishing the
necessary infrastructure. Building a reliable broadband network required
substantial investments in technology, including laying fiber-optic cables and
installing routers and servers. These upfront costs could strain finances,
particularly for smaller providers, and often resulted in low profit margins in the
early stages. Providers had to balance the need for quality infrastructure with the
pressure to attract customers quickly.

• Consumer Skepticism: Another major hurdle was overcoming consumer

skepticism about switching from familiar dial-up services to broadband. Many
potential customers were hesitant to change their established setups, often due
to concerns about costs, complexity, and reliability. Educating consumers about
 the tangible benefits of broadband—such as improved speed, reliability, and the
ability to support multiple devices—was essential. Providers needed to build
trust and demonstrate the value of the new service through testimonials, case
studies, and robust customer support.

Goals:

The primary objective during this stage was to build awareness and encourage trial
use among early adopters. Companies aimed to create a strong brand presence and
establish credibility in the market. By successfully attracting early users and ensuring
they had a positive experience, providers could generate word-of-mouth referrals,
which were critical for driving further adoption. Achieving a solid customer base early
on set the stage for growth in subsequent stages of the product life cycle, positioning
providers for long-term success in a competitive industry.

In summary, the introduction stage of home broadband services was characterized by

significant marketing efforts aimed at building awareness and overcoming challenges
related to infrastructure costs and consumer skepticism. By implementing strategic
awareness campaigns and offering promotional incentives, providers sought to
encourage early adoption and establish a foothold in a competitive market. The success
of this stage was crucial for setting the trajectory for growth and long-term success in
the evolving telecommunications landscape.

II. Growth Stage

As awareness and acceptance of broadband services increased, the market entered the
growth stage. This phase is characterized by rapid subscriber growth as more
 households recognize the value of high-speed internet. The demand for broadband
surged, driven by the increasing reliance on digital services for both work and leisure.

Marketing Strategies:

• Diverse Pricing Plans: During the growth stage, broadband providers recognized
the need to cater to a wider audience by offering various pricing tiers and service
options. This included different speed packages that appealed to various consumer
needs, from basic users to heavy internet consumers. By providing flexibility in
pricing and service levels, companies could attract a broader customer base and
meet diverse demands.

• Bundling Services: To enhance value and convenience for consumers, providers

often bundled broadband services with other offerings such as television and phone
services. This strategy not only provided customers with a comprehensive solution
but also encouraged them to commit to a single provider, leading to increased
customer loyalty and reduced churn.

Competitive Landscape:

As the market for home broadband services expanded, it attracted numerous competitors.
This influx led to a crowded marketplace where differentiation became crucial. Providers
focused on improving service quality, reliability, and customer support to stand out from
rivals, often investing in technology upgrades and better user experiences.

Goals:

The primary objective during the growth stage was to maximize market share and establish
a dominant position in the rapidly expanding market. Providers aimed to convert new
customers, retain existing ones, and solidify their brand presence as leaders in the
broadband industry. By executing effective marketing strategies, companies sought to
capitalize on the growing demand for high-speed internet.

III. Maturity Stage

As the market matured, growth rates began to stabilize, and most households had
adopted broadband services. This maturity stage is marked by slowing sales growth and
increased competition. Providers face the challenge of retaining their customer base
while navigating a saturated market.

Market Dynamics:

• Price Wars: As competition intensified during the maturity stage, broadband

providers engaged in aggressive pricing strategies to attract customers. This led to
price wars, where companies continuously undercut each other’s prices, resulting in
reduced profit margins. To thrive in this crowded market, providers needed to
differentiate themselves beyond just pricing.

• Focus on Retention: With subscriber growth slowing, retaining existing customers

became crucial. Companies implemented customer loyalty programs and enhanced
customer service initiatives to keep subscribers engaged and satisfied. These
strategies aimed to foster long-term relationships and reduce churn.

Marketing Strategies:
 • Innovation in Offerings: To stay competitive, providers introduced value-added
services such as enhanced security features, cloud storage, and other digital
solutions. These innovations not only attracted new customers but also helped retain
existing ones by offering additional benefits beyond basic internet access.

• Targeted Promotions: Special offers and promotions were tailored for existing
customers to encourage contract renewals and minimize churn. By providing
incentives such as discounts or upgraded services, companies aimed to enhance
customer loyalty and satisfaction.

Goals:

The overarching objective during this stage was to sustain profitability and defend market
share amid heightened competition. Providers needed to balance competitive pricing with
service quality, leveraging innovation and customer engagement strategies to maintain
their position in a challenging market landscape.

IV. Decline Stage

The decline stage is characterized by decreasing subscriber numbers and revenue due
to market saturation and the emergence of alternative technologies, such as 5G wireless
services. As consumer preferences shift towards more flexible and faster internet
solutions, traditional broadband services face significant challenges.

Market Factors:

• Technological Disruption: The emergence of 5G technology has posed a

significant challenge to traditional broadband services. Many consumers are
 gravitating towards the speed and flexibility offered by wireless solutions, making
it difficult for providers of wired broadband to maintain their customer base. This
shift threatens to diminish the relevance of traditional broadband in the face of more
advanced alternatives.

• Changing Consumer Preferences: As consumer needs evolve, there is a growing

demand for more adaptable and faster internet solutions. Users are increasingly
looking for internet services that can accommodate multiple devices and support
high-bandwidth activities like streaming, gaming, and remote work. This shift in
preference has forced providers to reassess their offerings and adapt to changing
market expectations.

Marketing Strategies:

• Cost-Cutting Measures: In response to declining revenues, companies may

implement cost-cutting strategies to maintain profitability. This could involve
reducing operational costs and scaling back marketing expenditures to focus
resources on core areas that can drive revenue.

• Exploration of New Markets: Some providers are pivoting to explore new

opportunities, such as business services, Internet of Things (IoT) applications, or
other emerging technologies. By diversifying their service offerings, companies aim
to offset declines in residential broadband and tap into new revenue streams.

Goals:

During this stage, the primary focus is on managing decline effectively. Providers need to
make strategic decisions regarding the future of their broadband services while exploring
new business opportunities. This may involve evaluating whether to continue investing in
traditional broadband or to shift resources towards innovative solutions that align with
current market trends.

E. Conclusion

The product life cycle (PLC) is an essential framework for understanding the journey
of home broadband services from inception to decline. Each stage of the PLC presents
unique opportunities and challenges that providers must navigate to remain competitive
and profitable. In the introduction stage, companies focused heavily on building
consumer awareness, utilizing aggressive marketing strategies like awareness
campaigns and promotional offers to entice early adopters. These efforts were crucial
in establishing a foothold in a market dominated by traditional dial-up services, where
overcoming consumer skepticism and significant infrastructure costs posed major
hurdles.

As the market transitioned into the growth stage, broadband adoption surged due to
increased consumer recognition of the value of high-speed internet. Providers
responded with diverse pricing plans and service bundles that catered to a broader
audience. This period marked the emergence of fierce competition, prompting
companies to invest in service quality and customer support to differentiate themselves.
The goal was to maximize market share and solidify brand presence in an increasingly
crowded marketplace, leveraging the growing demand for reliable internet access.

However, the maturity stage presented new challenges as subscriber growth began to
stabilize and competition intensified. Price wars became common as providers sought
to attract customers through aggressive pricing strategies, often at the expense of profit
margins. To counteract this, companies shifted their focus to customer retention,
implementing loyalty programs and innovative service offerings to maintain
engagement. The emphasis was on sustaining profitability and defending market share
while adapting to the saturated landscape.
In the decline stage, the industry faced significant threats from technological disruption,
particularly the rise of 5G services that offered greater flexibility and speed. As
consumer preferences shifted towards these modern solutions, traditional broadband
providers had to reassess their strategies. This stage required providers to explore new
markets and revenue streams, such as business services and Internet of Things (IoT)
applications, while also implementing cost-cutting measures to maintain financial
stability.

In conclusion, the PLC of home broadband services illustrates the dynamic nature of
the telecommunications market. By understanding and adapting to the unique demands
of each stage—from building initial awareness and encouraging trial use to navigating
intense competition and exploring new opportunities—providers can develop effective
strategies that ensure sustained growth and profitability. This holistic approach is
essential for any provider aiming to thrive in an ever-evolving landscape shaped by
consumer expectations and technological advancements. As the industry continues to
change, embracing innovation and agility will be key to maintaining relevance and
achieving long-term success.
F. References
• https://datareportal.com/reports/digital-2024-global-overview-report
• https://www.attconnects.com/how-broadband-networks-helped-create-21st-
century-technology/
• https://itif.org/publications/2019/09/03/policymakers-guide-broadband-
competition/
• https://www.twi-global.com/technical-knowledge/faqs/what-is-a-product-life-
cycle