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Project report on consumer behaviour of Airtel
 

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    Project report on consumer behaviour of Airtel Project report on consumer behaviour of Airtel Document Transcript

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    • PREFACEIt’s a thing of massive gratification for me to present this Summer TrainingProject Report on the topic “ Consumer Behaviour of AIRTEL ” completed in anunrivaled organisation ‘AIRTEL, at LUCKNOW.The goal of this six weeks training is to analyse the consumer behaviour and thedifferent promotional strategies followed by Airtel .And to increase their loyalposition among the maximum target audience to increase the number of consumeand proper use of SWOT analysis in the present competitive era .I myself havefor a long time deeply interested in studying consumer trends & behaviortowards mobile industry.This project attempts to identify and define areas related to consumer behaviorregarding new connection services. It also attempts to develop at least firstapproach to these areas, to think through policies, principles, and practices toaccomplish the new tasks and to satisfy the customer needs. By this practicaltraining I am able to grasp about the telecommunication market and differentstratigies for their particular consumers. Initially I was just having thebookish knowledge about all Marketing policies, practices and functions, butafter joining this organization, I got most of the practical knowledge. I havecome to know, what actually happens in the organizations. 3
    • ACKNOWLEDGEMENTI acknowledge my grattitude to all Who have gave us the possibility to completethis project. I am very much thankful to Dr .SHAILENDRA KUMARCHATURVEDI Director,Sherwood College of management, Lucknow, Whohas given me this opportunity to be a part of corporate house for two monthsand also to do this summer training project report on AirtelI want to also very much thank to our Internal Faculty Guide Dr.Gaurav Singhfor showing us the path to commence this project in the first instance.I express my deep gratitude toMR. AMIT NEGI (ZSM) UPE and also to Mr.MOHD ADNAN SIDDQUEE (TSM ) whose inspiration and guidance has beenhelpful for me to get best out of me. ASHISH KUMARDUBEY 4
    • DECLARATIONI am ASHISH KUMAR DUBEY student of MBA III Semester fromSHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW hereby declarethat this summer project report title “CONSUMER BEHAVIOUR OFBHARTI AIRTEL”, is result of original data collection and my own effortwith Corporate staff co-operation. ASHISH KUMAR DUBEY MBA 5
    • TABLE OF CONTENTS• CERTIFICATE OF THE COLLEGE 1• CERTIFICATE OF THE ORGANIZATION 2• PREFACE 3• ACKNOWLEDGEMENT 4• DECLARATION 5• EXECUTIVE SUMMARY 8• INTRODUCTION 9• OBJECTIVE OF THE STUDY 10• LIMITATION 11• RESEARCH METHODOLOGY 12• AIRTEL BACKGROUND 19• BOARD OF DIRECTOR 21• PARTNERS 27• COMPETITORS 31 6
    • • MARKETING STRATEGIES 49• ACHIEVEMENT OF THE COMPANY 53• NATIONAL & INTERNATIONAL IMAGE 59• FUTURE PROSPECTS OF THE COMPANY 61• FINDING AND ANALYSIS 81• SWOT ANALYSIS 87• RECOMMENDATION/SUGGETIONS 90• CONCLUSION 92• BIBILIOGRAPHY 93• ANNEXURE 94 7
    • EXECUTIVE SUMMARYAirtel comes to you from Bharti Cellular Limited - a part of the biggest privateintegrated telecom conglomerate, Bharti Enterprises. Bharti provides a range oftelecom services, which include Cellular, Basic, Internet and recently introducedNational Long Distance. Bharti also manufactures and exports telephoneterminals and cordless phones. Apart from being the largest manufacturer oftelephone instruments in India, it is also the first company to export its productsto the USA. Bharti is the leading cellular service provider, with a footprint in 15states covering all four metros and more than 7 million satisfied customers 8
    • Bharti Tele-Ventures believes that the demand for mobile services in India willcontinue to grow rapidly as a result of the following factors: • Lower tariffs and handset prices over time; • Growth in pre-paid customer category; • Greater economic growth and continued development of Indias economy; • Higher quality mobile networks and services; and • Greater variety and usage of value added services INTRODUCTIONWe are one of India’s leading providers of telecommunication services with anationwide presence in all the 23 licensed jurisdictions (also known as TelecomCircles). We served an aggregate of 88,270,194 customers as of December 31,2008; of who 85,650,733 subscribe to our GSM services and 2,619,461 use ourTelemedia Services either for voice and/or broadband access delivered throughDSL. We are the largest wireless service provider in the country, based on thenumber of subscribers as of December 31, 2008. We also offer an integrated 9
    • suite of telecom solutions to our enterprise customers, in addition to providinglong distance connectivity both nationally and internationally. We have recentlyforayed into media by launching our DTH and IPTV Services. All these servicesare rendered under a unified brand “Airtel”. The company also deploys, ownsand manages passive infrastructure pertaining to telecom operations under itssubsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of Indus TowersLimited. Bharti Infratel and Indus Towers are the two top providers of passiveinfrastructure services inIndia.In developing a market plan, your primary functions are to understand theneeds and desires of your customer select or develop a product or service thatwill meet customer needs, develop promotional material that will make thecustomer aware, and ensure product or service delivery. VISION 2011By 2011 Airtel will be the most admired brand in India • Loved by more customers • Targeted by top talent • Benchmarked by more businesses VISION 2020 • To build Indias finest business conglomerate by 2020 • Supporting education of underprivileged children through Bharti Foundation Strategic Intent: – To create a conglomerate of the future by bringing about “Big Transformations through Brave Actions.” OBJECTIVE OF THE STUDYo To study the consumer trends in telecommunication sector.o To study consumer decision-making & preferences.o To study marketing strategies adopted by Airtel.o To study the level of customer satisfaction in Airtel.o To study the market potential. 10
    • o To study customer purchase decision behaviour.o To understand the needs of different consumer segments.o Comparative study of different mobile companies.o To know why some retailers don’t sell new connections of Airtel. LIMITATIONNo project is without limitations and it becomes essential to figureout the various constraints that we underwent during the study. 11
    • The following point in this direction would add to our totaldeliberations—1. During the study on many occasions the respondent groupsgave us a cold shoulder.2. The respondents from whom primary data was gathered anytimes displayed complete ignorance about the complete brandedrange, which was being studied.3. Lack of time is the basic limitation in the project.4. Some retailer/whole sellers refuse to cooperate with thequeries.5. Some retailer/whole sellers gave a biased or incompleteinformation regarding the study.6. Money played a vital factor in the whole project duration.7. Lack of proper information and experience due to short periodof time.8. Some retailers did not answer all the questions or did not havetime to answer.9. At times customers are not ready to listen to the informationgiven to them because they are too angry with the wholeprocessing system. So didnt respond.10. Distribution strategies of Airtel are not up to the mark. 12
    • RESEARCH METHODOLOGY RESEARCH DESIGNA research design is simply a plan or framework for a study thatis used in collecting and analyzing the data. This framework is toensure that relevant information is collected and that toodepending upon the objectives of the study.The research design can be classified into three categories –Exploratory, descriptive, and casual:Exploratory ResearchIt seeks to discover new relationships, emphasis on discovery ofideas. This research is used when very little is known about theproblem being examined. Exploratory research studies are alsotermed as formulative research studies as its main purpose is toformulate a problem. Exploratory research is used here is flexibleand the areas where this type of research used are to know the:Brand preferenceAttitude of the customersMarket potentialBuyers behaviorConsumers awareness.The purpose of this type of research is to gain insight intoproblem. The research design used for the project at hand is ofexploratory in nature. Exploratory research is always based onsmall non-representative samples and data obtained aresubjected to qualitative analysis.Exploratory research helps to gather information about practicalproblems in carrying out the research and to provide insight into,and an understanding of, the problem confronting the researcher. 13
    • Descriptive ResearchIt attempts to determine the frequency with something occurs orthe relationship between two phenomenons. It is a type ofconclusive research that has its major objective of describingsomething like market characteristics or functions. Descriptiveresearch gives a clear statement of the problem, specifieshypothesis, and detailed information needs. It is conducted for thefor the reasons like to describe characteristics of relevant groupare associated and to make specific predictions, to estimate thepercentage of units in a specified population exhibiting a certainbehavior, to determine the perceptions of product characteristics,to determine the degree to which marketing variables. Adescriptive design requires a clear specification of who, what,when, where, why, and way of research.Descriptive research used the following methods:-ObservationQuestionnairesInterviewsExamination of recordsSome of the examples are:Market studiesMarket share studiesSales analysis studiesImage studies.Causal ResearchThese designs often adopted in order to discover and determinethe cause and effect relationship. It is also experimental researchas its major objective is to obtain evidence regarding cause andeffect relationship. It requires a planned and structured design.The main method of experiment research is experimentation andhypotheses are specific. Experimental research is useful in cases 14
    • where variables are manipulated in a relatively controlledenvironment.Source of collecting dataAchieving accuracy in any research requires in depth studyregarding the subject. As the primary object is to study themarket segmentation and strategies secondary objective of theproject is to compare Airtel with the existing competitors in themarket and impact of Airtel on Bharti, the research methodologyadopted is basically based on primary data via which the mostrecent and accurate piece of first hand information could becollected.Primary DataPrimary data was collected using the following techniques.Questionnaire Method, Direct Interview Method andObservation Method.The main tool used was, the questionnaire method. Further directinterview method, where a face to face formal interview was taken.Lastly observation method had been continuously observes thesurrounding environment he works in.Procedure: • Target geographic area was Meerut, Dauralla, Parikshit garh, sakoti & Matoor. • To these geographical area questionnaire was filled by 200 people, the questionnaire was a combination of both open ended and closed ended questions. • The date during which questionnaires were filled was between six week. 15
    • • Some dealers were also interviewed to know their prospective. Interviews with the honour of retailer of airtel were also conducted. Finally the collected data and information was analyzed andcompiled to arrive at the conclusion and recommendations given.Secondary dataSecondary data has been used to support primary data whereverneeded.It is used to obtain information on, Airtel and its competitorhistory, current issues, policies, procedures etc, whereverrequired.Sources of Secondary Data • Internet • Magazines • Newspapers, etc. Research Process Defining the record and research objective. Developing the research plan for collecting information implementing the research plan. 16
    • Collecting and analyzing data. Interpreting and representing the findings.TYPE OF RESEARCHThis is descriptive research as this research includes surveys andfact finding inquires of different kinds. So descriptive researchhelp in knowing about particular item or group of items in otherwords it describes the state as it exist at present. DATA COLLECTIONThe data collected in this research is first hand so it is primarydata. It is collected directly from the respondent throughquestionnaire and through visualization. DATA COLLECTON METHODThe data was collected through research questionnaire methodand through visualization for franchise analysis. A questionnairewas framed then data collected by making it fill by differentrespondent. DATA COLLECTION INSTRUMENT 17
    • It is closed ended and open ended both types of questionnaire. Ifquestionnaire is closed ended then questions are in the form ofYes or No and if questionnaire is open ended then questions arein the form of any numerical form. SAMPLE TECHNIQUESSampling techniques used in judgment sampling. As the selectionof sample was done according to the researchers own discretionand all effort were made to keep the research objective. DATA ANALYSIS TECHNIQUESAnalysis of data is done through quantitative method that isnumerical figures expressed in percentage. DATA ANALYSIS INSTRUMENTInstrument used for data analysis is tabulation of data, bar chart. THREE TYPES OF SALES: • Primary Sales - Organisation to Distribution of Prepaid, Postpaid Cards, Coupons, easy recharge etc. • Secondary Sales - Distributor to Retailers • Tertiary Sales - Retailer to Customer.PROCEDURE OF ACTIVATION OF PREPAID CONNECTION:Dealer (Confirms on 570)FOS (Saw that the form is completed and has Accessory papersDistributor (Activates the card)PROCEDURE OF ACTIVATION OF POSTPAID CONNECTION:Dealer (Collects of Cash and facilitates in Competition)FOS (Collects the Form) 18
    • Distributor (Activates the card) MOBILE FOOTPRINTThe map below depicts the location of, and provides certain information for,Bharti Tele-Ventures xisting mobile circles in India 19
    • INTRODUCTION(Bharti Airtel Ltd.) 20
    • BhartiAirtelLimited was incorporated on July 7, 1995 for promoting investments intelecommunications services. Its subsidiaries operate telecom services acrossIndia. Bharti Airtel is Indias leading private sector provider oftelecommunications services based on a strong customer base consisting of 50million total customers, which constitute, 45.8 million mobile and 5.4 millionfixed line customers, as of March 31, 2008.Airtel comes to us from Bharti AirtelLimited - a part of the biggest private integrated telecom conglomerate, BhartiEnterprises. Bharti provides a range of telecom services, which include Cellular,Basic, Internet and recently introduced National Long Distance. Bharti alsomanufactures and exports telephone terminals and cordless phones. Apart frombeing the largest manufacturer of telephone instruments in India, it is also thefirst company to export its products to the USA. Bharti has also put its footstepsinto Insurance and Retail segment in collaboration with Multi- National giants.Bharti is the leading cellular service provider, with a footprint in 23 statescovering all four metros and more than 50 million satisfied customers.The technology that gives a person the power to communicate anytime anywherehas spawned an entire industry in mobile telecommunication. Mobile telephoneshave become an integral part of the growth, success and efficiency of anybusiness/ economy.The government of India recognizes that the provision of theworld-class telecommunications infrastructure and information is the key torapid economic and social development of the country. It is critical not only for 21
    • the development of the Information technology industry, but also has widespreadramification on the entire economy of the country. It is also anticipated thatgoing forward, a major part of the GDP of the country would be contributed bythis sector. Accordingly, it is of vital importance to the country that there be acomprehensive and forward looking telecommunications policy which creates anenabling framework for development of this industry.In India, thetelecommunications market has undergone a major transformation in the pastcouple of decades. From being a complete monopoly of the public sector, to thebreaking down of these monopolies, the telecom industry has witnessedsignificant policy reforms. These reforms also led to the entry of private playersin all kinds of telecommunications services, such as cellular and wireless in localloop services, in addition to the basic telephony services.Airtel is the fastest growing company in the telecom sector in India. Thecompany understands to deliver their services with full customer satisfaction.We go through both generic and specific, professional that help us remain wellinformed and knowledgeable about the company’s product in the market.Airtelhas collaboration with Research In Motion (RIM) which is a Canadian company.Blackberry is the product of RIM. It’s an instant email service. At Airtel asMarket Researcher I have to find out the market awareness for Blackberry inPune corporate houses, and for that purpose I have to meet to the company’shigh profile executives.Board of DirectorsThe Board of Directors of the Company has an optimum mix of Executive andNon-Executive Directors, which consists of three Executive and fifteen Non-Executive Directors.The Chairman and Managing Director, Mr. Sunil BhartiMittal, is an Executive Director and the number of Independent Directors on theBoard is 50% of the total Board strength. The independence of a Director isdetermined on the basis that such director does not have any material pecuniaryrelationship with the Company, its promoters or its management, which mayaffect the independence of the judgment of a Director.The Board members 22
    • possess requisite skills, experience and expertise required to take decisions,which are in the best interest of the Company.Bharti Airtel Board Of DirectorsDirector Name DesignationSunil Bharti Mittal Chairman & Managing DirectorManoj Kohli Joint Managing Director & CEOHui Weng Cheong Non Executive DirectorTan Yong Choo Non Executive DirectorCraig Edward Ehrlich Non Executive DirectorRakesh Bharti Mittal Non Executive DirectorRajan Bharti Mittal Non Executive DirectorAkhil Gupta Non Executive DirectorChua Sock Koong Non Executive DirectorN Kumar Non Executive DirectorPulak Chandan Prasad Non Executive DirectorAjay Lal Non Executive DirectorH E Salim Ahmed Salim Non-Executive Independent DirectorLord Evan Mervyn Davies Non-Executive Independent DirectorTsun yan Hsieh Non-Executive Independent DirectorNikesh Arora Non-Executive Independent DirectorMukesh Bhavnani Company Secretary 23
    • “MANAGEMENT HIERARCHY AT AIRTEL” "M A N A G E M E N T H IE R A R C H Y " C H IE F S A L E S A N D M A R K E T IN G O F F IC E R V IC E P R E S ID E N T V IC E P R E S ID E N T C H IE F G E N E R A L M A N A G E R M A R K E T IN G S T R A T E G Y S A L E S P L A N N IN G C IR C L E S A L E S & M A R K E T IN G H E A D D IS T R IC T O P E R A T IO N H E A D P R E P A ID H E A D C IR C L E M A R K E T IN G H E A D C H A N N E L O P E R A T IO N M A N A G E R P R E P A ID M A N A G E R M A R K E T IN G S U P P O R T M A N A G E R -A M A R K E T IN G S U P P O R T M A N G E R -BTELECOMMUNICATION MARKET IN INDIAThe Indian telecommunications Network with 250m telephone connections is thefifth largest in the world and is the second largest among the emergingeconomies of Asia. Today it is the fastest growing market in the world andrepresents unique opportunities for UK companies in the stagnant globalscenario. Tele-density, which was languishing at 2% in 1999, has shown animpressive jump to 9.5% in 2006 and 10.5% in 2007 and is set to increase to20% in the next five years beating the Govt. target by three years. Accordingly,India requires incremental investments of USD 20-25 bln for the next five years.Private operators have made mobile telephony the fastest growing (over 164%p.a.) in India. With more than 33 million users (both CDMA and GSM), wirelessis the principal growth engine of the Indian telecom industry. Given the currentgrowth trends, cellular connections in India will surpass fixed line by late2004/early 2005. Intense competition between the four main private groups -Bharti, Vodafone, Tata and Reliance and with the State sector incumbents-BSNL 24
    • and MTNL has brought about a significant drop in tariffs. There has been almost74% in cell phone charges, 70% in ILD calls and 25% drop in NLD charges,resulting in a boom time for the consumers. GSM MARKET IN INDIA Regional Interest Groups - GSM IndiWith a population of around 1.1 billion growing at roughly 1.7 per cent a year,India is potentially one of the most exciting GSM markets in the world. Aftertwo rather difficult years, the past 12 months have seen the regions promisebeginning to come to fruition. Much of this success can be attributed to thestabilization of the licensing and regulatory environment.Indias telecommunications have undergone a steady liberalization since 1994when the Indian government first sought private investment in the sector. Moresignificant liberalization followed in 1996 with the licensing of new local fixedline and mobile service providers. However, it has been the governments NewTelecom Policy (1999) that has had the most radical impact on the developmentof GSM services. The policys mission statement is affordable communicationsfor all, There is a genuine commitment to creating a modern and efficient 25
    • communications infrastructure that takes account of the convergence of telecom,IT and media. In addition, the policy places significant emphasis on greatercompetition for both fixed and mobile services.Competition in the mobile sector has already had a visible impact on prices withcalls currently costing less than 9 cents per minute. This means that service costshave fallen by 60 per cent since the first GSM networks became live in 1995. Italso helps explain why a recent Telecom Asia survey revealed that more than 70per cent of Indian mobile subscribers felt that prices were now at a reasonablelevel.The good news is that subscriber growth is beginning to look healthy. WithIndias low PC penetration and high average Internet usage -at 14-20 hours amonth per user it is comparable to the US -the market for mobile data and m-commerce looks extremely promising. WAP services have already beenlaunched in the subcontinent and the first GPRS networks are in the process ofbeing rolled out. In the year ahead, GSMIndia will work with its members to realize the potential of early packet servicesin anticipation of the award of 3GSM licenses.India fastest growing GSM martIndia is expected to have 145 million GSM (global system for mobilecommunications) customers by 2007-08 compared to 26 million subscribers ason March 2005, according to the Global Mobile Suppliers Association. "ForGSM, India is a success story. It is one of the fastest growing markets with itssubscriber base doubling in 2005. At this pace, the target of 150 millionsubscribers by 2007-2008 is definitely achievable," Alan Hadden, president ofGSA, said at a news conference in New Delhi. Globally, the GSM marketreached 1 billion users in February 2005, he said, adding GSM accounted for 80per cent of the new subscriber growth in 2005."Almost every Latin Americanoperator has chosen GSM. In North America GSM growth is bigger than CDMA(code division multiple access)," he said. Commenting on the raging debate overGSM versus CDMA in mobile services arena, Hadden said: "GSM is the worldsmost successful mobile standard with over 1 billion users, and is an open mobile 26
    • standard. It also supports automatic international roaming, which is a majorcontributor to business plans." Bharti is almost thereBut first, the EDGE! Bharti Cellular is close to commercially launching itsEDGE service in Delhi and Mumbai by end May or early June, sources said. Thecompany was the first to conduct field trials in November with its equipmentsupplier Ericsson. Idea too held EDGE field trials in February this year with itsvendor Nokia. Vodafone and BPL are yet to hold the trials. The two companieswould eventually migrate to EDGE, but perhaps after seeing the response toBharti’s service.EDGE holds the promise of delivering data speeds of around 170-180 kbps (asagainst the theoretical speed of around 380 kbps) which, if achieved, promisesthe launch of many data applications. The scalable cost of migrating from GPRSto EDGE is not too high and mainly comprises software upgrades in case of amodern network such as Bharti and Hutch, claimed chairman of GSA Indiachapter Rakesh Malik.PROFILE AND ORGANISATIONAL STRUCTURE OF THE COMPANY Chief Executive Officer (C.E.O) ↓ Manager → Marketing Manager ↓ Project Manager ↓ Project Deader ↓ Team Leader 27
    • ↓ Team Member ↓ Quality Controller ↓ TESTERTelecom giant Bharti Airtel is the flagship company of Bharti Enterprises. TheBharti Group has a diverse business portfolio and has created global brands inthe telecommunication sector. Bharti has recently forayed into retail business asBharti Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carrybusiness. It has successfully launched an international venture with ELRothschild Group to export fresh agri products exclusively to markets in Europeand USA and has launched Bharti AXA Life Insurance Company Ltd under ajoint venture with AXA, world leader in financial protection and wealthmanagement.Bharti Airtel is one of Indias leading private sector providers oftelecommunications services based on an aggregate of 42,685,530 customers ason May 31, 2008, consisting of 40,743,725 GSM mobile and 1,941,805broadband & telephone customers.The businesses at Bharti Airtel have been structured into three individualstrategic business units (SBU’s) - mobile services, broadband & telephoneservices (B&T) & enterprise services. The mobile services group provides GSMmobile services across India in 23 telecom circles, while the B&T businessgroup provides broadband & telephone services in 94 cities. The enterpriseservices group has two sub-units - carriers (long distance services) and servicesto corporate. All these services are provided under the Airtel brand.Business Divisions 28
    • The Bharti Airtel Group :Offers GSM mobile services in all the 23-telecom circles of India and is thelargest mobile service provider in the country, based on the number ofcustomers.Offers high speed broadband internet with a best in class network..Focuses on delivering telecommunications services as an integrated offeringincluding mobile, broadband & telephone, national and international longdistance and data connectivity services to corporate, small and medium scaleenterprises.The Company compliments its mobile and broadband & telephone services withnational and international long distance services. It has over 35,016 routekilometers of optic fiber on its national long distance network. For internationalconnectivity to east, it has a submarine cable landing station at. For internationalconnectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15other global telecom operators. PartnersThe company has a strategic alliance with SingTel. The investment made bySingTel is one of the largest investments made in the world outside Singapore, inthe company. The company’s mobile network equipment partners includeEricsson and Nokia. In the case of the broadband and telephone services andenterprise services (carriers), equipment suppliers include Siemens, Nortel,Corning, among others. The Company also has an information technologyalliance with IBM for its group-wide information technology requirements andwith Nortel for call center technology requirements. The call center operationsfor the mobile services have been outsourced to IBM Daksh, Hinduja TMT,Teletech & Mphasis.Fact sheetName Bharti Airtel Limited. 29
    • Business Provides mobile, broadband & telephone (fixed line) andDescription enterprise services (carriers & services to corporate)Established July 07, 1995, as a Public Limited Company Rs. 184,202 million (year ended March 31, 2008-Audited)Proportionate Rs. 117,255 million (year ended March 31, 2007-Audited)Revenue As per Indian GAAP Accounts Rs. 74,407 million (year ended March 31, 2008-Audited)Proportionate Rs. 42,250 million (year ended March 31, 2007-Audited)EBITDA As per Indian GAAP AccountsShares in Issue 1,895,934,157 as at March 31, 2008 The Stock Exchange, Mumbai (BSE)Listings The National Stock Exchange of India Limited (NSE)Market Approx. Rs1, 597 billion. Closing BSE share price= Rs.842.50Capitalization 40,743,725 GSM mobile and 1,941,805 broadband & telephoneCustomer Base (fixed line) customers (Status as at month ended May 31, 2008) Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all IndiaOperational presence.Network Provides broadband (DSL) and telephone services (fixed line) in 94 cities in India.Airtel 3G Tariff Plan – Net Setter and Mobile 30
    • Airtel provides the latest technology of 3G and facilitates users by differentprepaid and postpaid tariff plans. The service is a key feature for people whowant to stay in touch with their friends and family all time in a day. There aremany cellular companies provide such a facility, and Airtel is one of them. TheAirtel 3G tariff is very simple and acceptable for users. The rates are very lowand have coverage all over India. The new services of 3G make it easy forpeople to download the latest stuff related to their study and entertainment. Youcan download songs and upload your pictures at the faster speed.The tariff plan for such services is of two types one is postpaid and other isprepaid. In postpaid tariff plans, you have to pay bill of your internet packageaccording to your usage. To get this service you have to submit some security inthe company sales shop first, while in prepaid services you can recharge yourbalance and can entertain service without waiting for anything. Have a look onthe Airtel 3g tariff plan, you will find two types of services one is prepaid. Inprepaid services, there are two kinds of packages available, one is volume basedwhile other is a budget base plan.In Airtel prepaid tariff plan of volume base, you have a different selectionaccording to your use. You can calculate your internet use with the help of acalculator available at Airtel website. You can estimate your internet usage byadding information like emailing per day and some other information likeapproximate buffering and online hours. The calculator will calculate bestpackage for you. You can also consult it with Airtel prepaid tariff plan to know 31
    • its cost. Volume based package can be beneficial if you know you exactly use ofthe internet.Other Airtel 3G tariff plans are price based. You can select the planaccording to your budget plan. These new competitive rates make it easy for userto select and enjoy the services everywhere. These tariff plans are mostlylimited, to some extent, like some may be providing you one day service or someof these will provide one week service. So try to investigate first about thesepackages before selecting one of them. Both Airtel prepaid plans and postpaidplans have attractive offers with different call rates, this offer will make youeasier in selecting these rates.The 3G technology makes faster the internetservice now. You should select an Airtel 3G tariff according to its coverage, ifyou are living in some remote area than its no problem with Airtel internetproviders. You can get better service even in villages and hilly regions also, ifEDGE service is failed to operate you can use GPRS service everywhere in thecountry. The difference is this that EDGE service is faster than GPRS service. Itis better for you to investigate first about internet Provider Company and itsdevices in your area. Airtel is most renowned because it covered larger area ofcountry and people like it due to cheap Airtel 3G tariff plans.Airtel 3g USB ModemsNow choose speed from an exciting range of airtel 3G USBmodemsairtel 3G USB modem 7.2 Mbps – E1731Now choose superfast speed with select features on airtel 3G USB modem 7.2Mbps 32
    • airtel 3G USB modem 3.6 Mbps – E153Now choose speed with select features on airtel 3G USB modem 3.6 Mbps3G Data Card Plans1-Rs. 9 free 10 Mb2-Rs.45 free 30 Mins3-Rs. 37 free 30Mb4-Rs.94 free 150Mb5-Rs.64 free 80Mb6-Rs.198 free 500Mb7-Rs.450 free1200Mb8-Rs.750 free 4GB9-Rs.675free 2.5GB10-Rs.250free 300Mb11-Rs.1245 free 10GB (Airtel 3G DataCard COMPETITORS OF BHARTI AIRTEL 33
    • India has become one of the fastest-growing mobile markets in the world. Themobile services were commercially launched in August 1995 in India. In theinitial 5-6 years the average monthly subscribers additions were around 0.05 to0.1 million only and the total mobile subscribers base in December 2002 stood at10.5 millions. However, after the number of proactive initiatives taken byregulator and licensor, the monthly mobile subscriber additions increased toaround 2 million per month in the year 2003-04 and 2004-05.Although mobile telephones followed the New Telecom Policy 1994, growthwas tardy in the early years because of the high price of hand sets as well as thehigh tariff structure of mobile telephones. The New Telecom Policy in 1999, theindustry heralded several pro consumer initiatives. Mobile subscriber additionsstarted picking up. The number of mobile phones added throughout the countryin 2003 was 16 million, followed by 22 million in 2004, 32 million in 2005 and65 million in 2006. The only country with more mobile phones than India with246 million mobile phones is China – 408 million.India has opted for the use of both the GSM (global system for mobilecommunications) and CDMA (code-division multiple access) technologies in themobile sector. In addition to landline and mobile phones, some of the companiesalso provide the WLL service.The mobile tariffs in India have also become lowest in the world. A new mobileconnection can be activated with a monthly commitment of US$0.15 only. In2005 alone 32 million handsets were sold in India. The data reveals the realpotential for growth of the Indian mobile market.In March 2008 the total GSM and CDMA mobile subscriber base in the countrywas 375 million, which represented a nearly 50% growth when compared withprevious year.In April 2008 the Indian Department of Telecom (DoT) hasdirected all mobile phone service users to disconnect the usage of unbrandedChinese mobile phones that do not have International Mobile Equipment Identity(IMEI) numbers, because they pose a serious security risk to the country. Mobile 34
    • network operators therefore planned to suspend the usage of around 30 millionmobile phones (about 8 % of all mobiles in the country) by April 30.PRESENT SCENARIOIn the fixed line arena, BSNL and MTNL are the incumbents in their respectiveareas of operation and continue to enjoy the dominant service provider status inthe domain of fixed line services. For example BSNL controls 79% of fixed lineshare in the country.On the other hand, in the mobile telephony space, Airtel controls 21.4%subscriber base followed by Reliance with 20.3%, BSNL with 18.6%, Vodafonewith 14.7% subscriber base (as per June 2005 data).Following list shows the GSM subscriber figure till Jan 20101) Bharti Airtel 88382758 33.04%2) Vodafone Essar 63340024 23.68%3) BSNL 42673357 15.95%4) IDEA 40016153 14.96%5) Aircel 16761397 6.27%6) Reliance Telecom 10353841 3.87%7) MTNL 4003807 1.50%8) BPL 2007303 0.75% All India 267538640AIRTELBharti Airtel, formerly known as Bharti Tele-Ventures LTD (BTVL) is Indiaslargest cellular service provider with more than 92 million subscribers as ofFebruary 2009. It also offers fixed line services and broadband services. It offersits TELECOM services under the Airtel brand and is headed by Sunil BhartiMittal. The company also provides telephone services and Internet access over 35
    • DSL in 14 circles. It also acts as a carrier for national and international longdistance communication services. The company has a submarine cable landingstation at Chennai, which connects the submarine cable connecting Chennai andSingapore.The businesses at Bharti Airtel have been structured into three individualstrategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services &Enterprise Services. The mobile business provides mobile & fixed wirelessservices using GSM technology across 23 telecom circles while the AirtelTelemedia Services business offers broadband & telephone services in 95 citiesand has recently launched Indias best Direct-to-Home (DTH) service, Airteldigital TV. The company provides end-to-end data and enterprise services to thecorporate customers through its nationwide fiber optic backbone, last mileconnectivity in fixed-line and mobile circles, VSATs, ISP and internationalbandwidth access through the gateways and landing station.Globally, Bharti Airtel is the 3rd largest in-country mobile operator bysubscriber base, behind China Mobile and China Unicom. In India, the companyhas a 24.6% share of the wireless services market, followed by 17.7% forReliance Communications and 17.4% for Vodafone Essar.In its monthly press release, following statistics have been presented for end ofApril 2007.Bharti Airtel added the highest ever net addition of 5.3 million customers in asingle quarter (Q4-FY0607) and also the highest ever net addition of 18 milliontotal subscribers in 2006-07. The company will invest up to $3.5 billion this fiscal (07-08) in networkexpansion. It has an installed base of 40,000 cellsites and 59% population coverage. After the proposed network expansion, an additional 30,000 towers willresult in the company achieving 70% population coverage. Bharti has over 39 million users as on March 31, 2007. It has set a target of 125 million subscribers by 2010. 36
    • Prepaid customers account for 88.5% of Bharti’s total subscriber base, anincrease from 82.7% a year ago. ARPU has dropped to Rs 406. Non-voice revenues, (SMS, voice mail, call management, hello tunes andAirtel Live) constituted 10% of total revenues during Q4, lower than 10.7% inthe Q4 of the previous year. Blended monthly minutes of usage per customer in Q4 was at 475 minutes. Has completed 100% verification of its subscribers and in the processdisconnected three lakh (300,000) subscribers. Bharti Airtel’s is now connecting India to Europe under its Europe Indiagateway [EIG]project. The company is building 15,000 km 3.84 Terrabit OFCsub-marine cable system connecting Europe [London] to India via the MiddleEast. The project is expected to cost $700 million, which is to be completed byQ2-2010. Alcatel Lucent and Tyco are the telecom vendors for the project.The Airtel subscriber base according to TRAI - Telecom RegulatoryAuthority of India as of February 2009[7] was: Kolkata - 2,456,896 Maharashtra - 5,690,609 Gujarat - 3,981,660 Andhra Pradesh - 8,892,353 Karnataka - 9,820,812 Tamil Nadu - 6,003,040 Kerala - 2,169,633 Punjab - 3,754,405 Haryana - 1,248,906 Uttar Pradesh (West) - 2,256,862 Uttar Pradesh (East) - 5,722,386 Rajasthan - 6,704,274 Madhya Pradesh - 4,470,561 West Bengal & Andaman and Nicobar - 3,501,560 37
    • Himachal Pradesh - 951,121 Bihar - 7,152,245 Orissa - 2,811,453 Assam - 1,448,389 North Eastern States - 890,054 Jammu & Kashmir - 1,590,935The total is 91,114,971 or 24.2% of the total 375,742,592 GSM + CDMA mobileconnections in India till February 2009; and presently the Number 1 operator inIndia. In 2009 Airtel also launched in Sri Lanka. presently the Number 1 operator in India. In 2009 Airtel also launched in SriLanka.VODAFONEVodafone Essar, previously Hutchison Essar is a cellular operator in India thatcovers 23 telecom circles in India. Despite the official name being VodafoneEssar, its products are simply branded Vodafone. It offers both prepaid andpostpaid GSM cellular phone coverage throughout India with good presence inthe metros.Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHzdigital GSM technology, offering voice and data services in 23 of the countrys23 license areas. It is among the top three GSM mobile operators of India.Vodafone Essar is owned by Vodafone 52%, Essar Group 33%, and other Indiannationals, 15%. On February 11, 2007, Vodafone agreed to acquire thecontrolling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar forUS$11.1 billion, piping Reliance Communications, Hinduja Group, and EssarGroup, which is the owner of the remaining 33%. The whole company wasvalued at USD 18.8 billion. [2] . The transaction closed on May 8, 2007.The Vodafone subscriber base according to COAI - Cellular OperatorAssociation of India as of Nov 2008 was:City/Circle Nov2008 Mumbai 4115671 38
    • Delhi 3741037 Kolkata 2481872 Chennai 1472340 Gujarat 7241167 A.P. 3430016 Karnatka 3333207 Punjab 1944733 Haryana 1878339 U.P.(E) 5589567 Rajasthan 4343407 UP (W) 3825035 West Bengal 4000994 Maharashtra 3833719 Tamil Nadu 4509341 Kerala 2704412 Orissa 137445 Assam 454878 MP 30213 Bihar 76349 Himachal Pradesh NewThe total is 5,46,24,809 or 23.38% of the total 233,676,930 GSM mobileconnections in India till Sept 2008.Nov 2008 Vodafone Essar 58764164 or23.57% of total 249349436Mahanagar Telephone Nigam LimitedMTNL is an Indian Government-owned telephone service provider in the citiesof Mumbai, Thane, New Delhi, and Navi Mumbai in India. The company was amonopoly until 2000, when the telecom sector was thrown open to other serviceproviders. 39
    • MTNL provides fixed line telephones, cellular connection of both GSM —Dolphin(Postpaid) and Trump (prepaid) and WLL (CDMA) — Garuda-FW AndGaruda-Mobile and internet services through dialup and DSL — Broadbandinternet TriBand. MTNL has also started Games on demand, video on demandand IPTV services in India through its Broadband Internet service calledTriband. Phone numbers belonging to MTNL start with the prefix 2 infixed linetelephonesand WLL & in GSM Mobile servises its start from9869/9969/9868/9968. MTNL also provides other services such as VPN,InternetTelephony- VOIP and leased lines through BSNL and BSNL.MTNL has been actively providing connections in both Mumbai and New Delhiareas and the efficiency of the company has drastically improved from the dayswhen one had to wait years to get a phone connection to now when one can get aconnection in even hours. Pre-activated Mobile connections are available atmany places across both Metros. MTNL has also unveiled very cost-effectiveBroadband Internet access plans (TriBand) targeted at homes and smallbusinesses. At present MTNL enjoys the largest of the market share of ISPservices in Mumbai and Delhi.Former Indian Communications Minister Thiru Dayanidhi Maran had declaredyear 2007 as "Year of Broadband" in India and MTNL is gearing up to providefive million Broadband connectivity by the end of 2007. MTNL has upgradedexisting TriBand (Broadband) connections for a speed of up to 2 MB/s withoutany extra cost. This 2 MB/s broadband service is being provided by MTNL at acost of just US$5.00 per month.MTNL started 3G services in India under the name of "MTNL 3G Jadoo"Services offered include Video call, Mobile TV and Mobile Broadband withhigh speed data connectivity up to 2 Mbit/s speed from 11th December 2008,getting India 3G map of the world. MTNL plans to offer 3G services acrossIndia by mid-2009. After that MTNL Mobile users would be able to surf theinternet with speeds up to 2 Mbit/s on their smart phones. MTNL will beinstalling 15 lakh 3G lines in the first phase of its 3G roll-out in Mumbai andDelhi (which currently have 40 lakh existing mobile 40
    • lines).IDEA CellularIt is a publicly listed company, having listed on the Bombay Stock Exchange(BSE and the National Stock Exchange (NSE) in March 2007.Idea Cellular is a leading GSM mobile service operator with pan India licenses.With a customer base of over 36 million in 15 service areas, operations are soonexpected to start in Orissa and Tamil Nadu-the first steps in providing pan Indiaservices covering over 90% of Indias telephony potential.A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has thedistinction of offering the most customer friendly and competitive Pre Paidofferings, for the first time in India in an increasingly segmented market.Customer Service and Innovation are the drivers of this Cellular Brand. A brandknown for many firsts, Idea was the first to launch GPRS and EDGE in thecountry. Idea has received international recognition for its path-breakinginnovations when it won the GSM Association Award for "Best Billing andCustomer Care Solution" for 2 consecutive years.IDEA Cellular is part of the Aditya Birla Group, Indias first truly multinationalcorporation. The group operates in 25 countries, and is anchored by over100,000 employees belonging to 25 nationalities. The Group has been adjudgedThe Best Employer in India and among the Top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.Subscriber BaseIdeas subscriber base as of October 2008 according to the [1] is as follows Maharashtra and Goa - 6,260,690 Madhya Pradesh and Chhattisgarh - 4,137,200 Andhra Pradesh - 4,325,204 Kerala - 3,712,887 Gujarat - 3,327,261 Uttar Pradesh (West) & Uttarakhand - 3,372,808 Delhi - 2,216,027 41
    • Haryana - 1,341,146 Uttar Pradesh (East) - 1,457,570 Rajasthan - 1,062,526 Himachal Pradesh - 117,253 Mumbai - 178,378 Bihar & Jharkhand - 73,987Totalling to 31,582,937 or 9.86%(Approx.) of the total 320,330,393[1] mobileconnections in India.Spice TelecomSpice Telecom is the brand name of Spice Communications Limited, a mobilephone service provider in India. Spice Telecom is currently operating in thestates of Punjab (India) and Karnataka i.e., in 2 circles of 23 Telecom Circles ofIndia. Spice Communications Limited was promoted by Dilip Modi of ModiWellvest Private Limited, which owns 40.80% of the company. Mod is promotedby Mr. Dilip Modi and Super Infosys. Telekom Malaysia Berhad owns 39.20%through TMI India Limited, Mauritius. TMI India Limited is a wholly ownedsubsidiary of TMs international investment holding company TM InternationalSdn Bhd (TMI).Spice Telecom is a flagship company of MCorp Global (www.mcorpglobal.com)a cellular mobile telephone services provider in India.Launched over ten years ago, Spice’s cellular services have a customer base ofover 4 million as on December 2008 in Punjab and Karnataka.Recently Aditya Birla Group owned Idea Cellular took over the ownership ofSpice Telecom for over Rs.270 million. They plan to improve the coverage,customer friendliness and good service.The market share of Spice had fallen down in Karnataka, after their competitorsweaned away many of its customers with good service. In spite of lower tariffsSpice could not regain the market share. Now it is hoped that Idea would changeit al 42
    • Now Spice Telecom have a customer base of 4.4 Million subscribers in bothcircles.Bharat Sanchar Nigam LimitedBSNL is a public sector telecommunication company in India. It is Indias largesttelecommunication company with 24% market share as on March 31, 2008. Itsheadquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane,Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputedpublic sector companies in India.BSNL is Indias oldest and largest Communication Service Provider (CSP).Currently has a customer base of 90 million as of June 2008.[1] It has footprintsthroughout India except for the metropolitan cities of Mumbai and New Delhiwhich are managed by MTNL. As on March 31, 2008 BSNL commanded acustomer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21million GSM Mobile subscribers. BSNLs earnings for the Financial Year endingMarch 31, 2007 stood at INR 397.15b (US$ 9.67 b) with net profit of INR78.06b (US$ 1.90 billion). BSNL has an estimated market value of $ 100 Billion.The company is planning an IPO with in 6 months to offload 10% to public inthe Rs 300-400 range valuing the company at over $100 billion.BSNL provides almost every telecom service in India. Following are the maintelecom services provided by BSNL: Universal Telecom Sevices : Fixed wireline services & Wireless in Localloop (WLL) using CDMA Technology called bfone and Tarang respectively. Asof December 31, 2007, BSNL has 81% marketshare of fixed lines. Cellular Mobile Telephone Services : BSNL is major provider of CellularMobile Telephone services using GSM platform under the brand nameCellOne[2]. Prepaid cellular services of BSNL are know as Excel. As of March31, 2007 BSNL has 17% share of mobile telephony in the country. Internet : BSNL provides internet services through dial-up connection(Sancharnet) as Prepaid, (NetOne) as Postpaid and ADSL broadband (DataOne).BSNL has around 50% market share in broadband in India. BSNL has planned 43
    • aggressive rollout in broadband for current financial year. Intelligent Network (IN) : BSNL provides IN services like televoting, tollfree calling, premium calling etc.BPL Mobile (Loop Mobile)BPL Mobile has had the privilege of serving the communications needs of thefinancial capital of India for the last 13 years. Now BPL Mobile is beingrebranded as Loop Mobile in Mumbai.Loop Mobile, represents growth with continuity. While Loop constantly worktowards giving our subscribers a better network, innovative products and asuperior mobile telephony experience, its subscribers can be assured of the samefocus and commitment in providing the best network coverage, billing accuracy,and an unmatched personalized customer service.Loop Mobile has invested over Rs 300 crore to upgrade to NGIP (NextGeneration IP) network. This highly efficient network upgrade enables loop tooffer unmatched voice clarity and extensive coverage along with high-speed dataservices. We are happy to inform you that we are the only GSM network inMumbai that has met all the TRAI benchmarks on network and service qualityparameters again this year. We have also been rated as the best network byVoice & Data, leading Telecom magazine, in their .Loop has gained a significant market share of incremental subscriber addition inMumbai Circle for the last several months. The emphasis on growth is clearlyreflected in our growing subscriber base - it crossed the 2-Million subscribermark in Mumbai Circle in January 2009.Reliance Communications (formerly Reliance Infocomm)Reliance Telecom and Flag Telecom, is part of Reliance CommunicationsVentures (RCoVL). It is an Indian telecommunications company. According toNational Stock Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent 44
    • of the company, which accounts for more than 1.36 billion shares.[3] It is theflagship company of the Reliance-Anil Dhirubhai Ambani Group, comprising ofpower (Reliance Energy), financial services (Reliance Capital) and telecominitiatives of the Reliance ADAG. It uses CDMA2000 1x technology for itsexisting CDMA mobile services, and GSM-900/GSM-1800 technology for itsexisting/newly launched GSM services.RelCom is also into Wireline Business throughout India and has the largestoptical fiber communication (OFC) backbone architecture [roughly 110,000 km]in the country.Reliance Communications has interests in Direct To Home (DTH) TV also,known as "Big TV". It plans to launch its DTH business by July 2008. Oncelaunched, RelCom will have presence across all B2C communications channel inone of the fastest growing markets in the world.On July 2007, the company announced it is buying US-based managed ethernetand application delivery services company Yipes Enterprise Services for a cashamount of Rs. 1200 crore rupees (equivalent of USD 300 million). The deal wasannounced complete in a press release in December 2007.In its first overseas acquisition, the Reliance group has amalgamated the UnitedStates-based Flag Telecom for $ 211 million [roughly Rs 950 crore (Rs 9.50billion).On the 30th December 2008, Reliance Communications became the first telecomoperator in the history of Indian telecommunications to simultaneously launch itsGSM services in 14 circles, namely Andhra Pradesh, Chennai, Delhi,Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Maharashtra,Mumbai, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh(East & West)thereby establishing itself as a pan-India operator.It already operates GSM services in 8 circles namely Assam, Bihar, HimachalPradesh, Kolkata, Madhya Pradesh, North Eastern states, Orissa, WestBengal. TOP 45
    • TATA IndicomTata Teleservices Limited (TTSL) is a part of the Tata Group of companies, anIndian conglomerate. It operates under the brand name Tata Indicom in varioustelecom circles of India. The company forms part of the Tata Groups presence inthe Telecommunication Industry in India, along with Tata Teleservices(Maharashtra) Limited (TTML) and TATA COMMUNICATIONSLTD.In February this year, TTSL announced that it would provide CDMA mobileservices targeted towards the youth, in a joint venture with Virgin, UK,on aFranchisee model basis. Interestingly, Virgin Mobile is a direct competitor ofTTSL in a number of telecom circles across the country.Tata Teleservices is part of the INR Rs. 2,51,543 Crore (US$ 62.5 billion) TataGroup, that has over 87 companies, over 330,000 employees and more than 2.8million shareholders. With a committed investment of INR 36,000 Crore (USD$7.5 billion) in Telecom (FY 2006), the Group has a presence across the telecomvalue chain.Tata Teleservices spearheads the Group’s presence in the telecom sector.Incorporated in 1996, Tata Teleservices was the first to launch CDMA mobileservices in India with the Andhra Pradesh circle.The company acquired Hughes Telecom (India) Limited [now renamed TataTeleservices (Maharashtra) Limited] in December 2002. With a totalInvestment of Rs 19,924 Crore, Tata Teleservices has created a Pan Indiapresence spread across 20 circles that includes Andhra Pradesh, Chennai,Gujarat, J & K, Karnataka, Delhi, Maharashtra, Mumbai, North East,Tamil Nadu, Orissa, Bihar, Rajasthan, Punjab, Haryana, HimachalPradesh, Uttar Pradesh (E), Uttar Pradesh (W), Kerala, Kolkata, MadhyaPradesh and West Bengal.Having pioneered the CDMA 3G1x technology platform in India, TataTeleservices has established 3G ready telecom infrastructure. It partnered withMotorola, Ericsson, Lucent and ECI Telecom for the deployment of itstelecom network. 46
    • The company is the market leader in the fixed wireless telephony market with atotal customer base of over 3.8 million.Tata Teleservices’ bouquet of telephony services includes Mobile services,Wireless Desktop Phones, Public Booth Telephony and Wireline services. Otherservices include value added services like voice portal, roaming, post-paidInternet services, 3-way conferencing, group calling, Wi-Fi Internet, USBModem, data cards, calling card services and enterprise services.Some of the other products launched by the company include prepaid wirelessdesktop phones, public phone booths, new mobile handsets and new voice &data services such as BREW games, Voice Portal, picture messaging, polyphonicring tones, interactive applications like news, cricket, astrology, etc.Tata Indicom "Non Stop Mobile" allows pre-paid cellular customers to receivefree incoming calls.Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limitedhave a subscriber base of 28 million customers in more than 5,000 towns. TataTeleservices has also acquired GSM licenses for specific circles in India.Tata Telelservices is an unlisted entity. Tata Group and group firms own about80 percent of the company, while investor C. Sivasankaran holds 8 percent.Tata Indicom in March 2008, crossed the 24 million subscribers mark in thewireless category with an overall subscriber base of over 25 million.It has a current subscriber base of 24.3 million and a 9.33% cumulative marketshare. Tata Indicom continues to register the highest CAGR at 113% in thewireless segment with a net base of 12.8 million against a starting base of 11.8million.(All figures based on March 2008. Figures Available on AUSPI website)Tata Teleservices is no. 2 slot in terms of Market Share in Delhi NCR regionwith a subscriber base of 3 million.Value Added ServicesTata Teleservices, in October 2007 launched Tata Zone, an infotainment portalon Tata Indicom BREW-enabled mobile phones, in Hindi. This service hasapplications, pricing details, downloads and browsing instructions in Hindi. The 47
    • rationale behind this was simple: - 66% of all Indians speak Hindi, while lessthan 5% understand English.Under its VAS bouquet, TTSL offers services such as News, Games,Faith andPrayers, Ringtones, Fun Shows, Video Zone, Song Download Express, Cricket,Internet Surfing, Astrology, Mobile Office, and Remo Mail among others. Thequality of these services however is nowhere near the data services provided bycellular operators in developed countries.Tata Indicom plans to provide m-commerce, mobile advertising, mobile TVand social networking under its VAS offeringsAIRCELAircel is a mobile phone service provider in India. It offers both prepaid andpostpaid GSM cellular phone coverage throughout Kerala, Tamil Nadu(including Chennai), Andhra Pradesh, Assam, North East India, Orissa, WestBengal (including Kolkata), Jammu and Kashmir, Bihar , Himachal Pradesh &Mumbai. Aircel was founded by NRI businessman C Sivasankaran. [1] Aircel isa joint venture between Maxis Communications Berhad of Malaysia and ApolloHospital Enterprise Ltd of India. It is India’s seventh largest GSM mobileservice provider with a subscriber base of over 17 million. It has a market shareof 6.3% among the GSM operators in the country. As on date, Aircel is presentin 11 telecom circles (Assam, Bihar, Himachal Pradesh, Jammu &Kashmir,Kerala, North East, Orissa, Tamil Nadu, Karnataka, West Bengal,Delhi) and with licences secured for the remaining 10 of the 23 telecom circles,the company plans to become a pan-India operator by 2009. Additionally, Aircelhas also obtained permission from Department of Telecommunications (DoT) toprovide International Long Distance (ILD) and National Long Distance (NLD)telephony services. It is also a category A ISP.Aircel Business Solutions (ABS), part of Aircel, is an ISO 9000 certifiedcompany. ABS is a registered member of WiMAX forum – both in the Indianand International Chapters. ABS’ product range includes enterprise solutionssuch as Multi Protocol Label Switching Virtual Private Networks (MPLS 48
    • VPNs), Voice over Internet Protocol (VoIP) and Managed Video Services onwireless platform including WiMAX.Aircel has won many awards for its services. Aircel got the highest rating foroverall customer satisfaction and network quality in 2006 by Voice and Data.Aircel was rated as the top mid-size utility company in Business World’s ‘List ofBest Mid-Size Companies’ in 2007. Moreover, Aircel has been selected as thebest regional operator in 2008 by Tele.net. Aircel is headed by shahid mustafawho was asked to leave Hutchinson Essar Ltd - Mumbai.Aircel are one of the sponsors of the Indian Premier League Cricket TeamChennai Super Kings captained by Mahendra Singh Dhoni.It is also the sponsorfor Professional Golf Tour of India from 2009 onwards.COMPETITIVE SITUATIONAirtel launched its services before Essar and skimmed the market picking up thebulk of the high usage premium clients. This is a very competitive industry withthe two companies differentiating either on value-added services or price. Airtelis perceived as the high quality provider and has a premium image. Essar, on theother hand, is perceived as the lower end service provider. Airtel positions itselfas the market leader on the basis of the number of subscribers. Essar is trying tocounter this by emphasizing on the reach of its network and the quality of itsservice. However, Essar is somewhat not been very successful largely due to theinconsistency in advertisingTo promote themselves, both the players have been dependent on tacticaladvertising However, they have restrained from using comparative advertisingHoardings have been a very popular medium for carrying the advertisementsAirtel has also been advertising on television using the Bharti Telecom name.SALES DEPARTMENT AND STRATEGYA. Major Accounts (Direct Channel)Handles corporate (named and famed) accountsForecasting of salesMapping the accountsProviding after sales support to the subscribers. 49
    • Maintaining call reports for records.Providing Feedback to the marketing department regarding the requirement ofthe market.B. IDC (indirect Channel)Handling distributionMaintaining records and level check of the channel partnerLiaisoning between the channel partner and the company.Target achievement Training the executives of the channelC. Distribution Support1. LogisticsMonitor handset and SIM card requirements of channel partners and co-ordinatewith storesSettle areas of concerns such as incentive claims of channel partners2. RentalProvide cellular services (SIM cards) on rent.Provide cellular phones on rentUseful for people visiting Delhi for a short interval.3. TelesalesCall customers and generate sales lead.Follow up with the customers, if they need any assistancePass on the sales lead to the channel department.4. AuditConsultant to the AirTel showrooms.Monitor the operations at the AirTel distribution outlets Organize training.5. RetailLocate shops to open retail counters.Monitor the retail counters.MARKET SEGMENTATION 50
    • Segmentation is beneficial because of better predictability of the target consumer group, minimization of risk exposure, better ability to fine-tune a product / service to the requirement of target buyer and the resultant ease in designing a proper designing marketing mix strategy In this case segmentation is on the bade of income. In evaluating different market segments the company looks at two factors The overall attractiveness of the segments and the companys objectives & resources The present market for Cellular phones, pagers and conventional phones is as follows Premium Middle Economy Upper Lower Upper Lower Upper LowerCellular Phones X X X - - -Pager X X X X - -Conventional X X X X X -Phones X Market Segment Targeted Create product Maximize market share Maximize profits whole defending market share awareness and trial MARKETING OBJECTIVES AND STRATEGIES 51
    • Product Offer a basic Offer value added Increase in product/ service. services number of value added services.Price Charge cost- plus Price to penetrate Price to match or market best competitorsDistribution Build selective Build Intensive Build more distribution distribution. intensive distribution.Advertising Build product Build awareness Stress brand awareness among and interest in the differences and early adopters mass market benefits. and dealers.Sales Promotion Use heavy sales Increase to build Increase to promotion to and maintain encourage brand- entice people to relationships with switching. subscribe. customer. 52
    • MARKETING STRATEGIESADOPTED BY BHARTIBharti has spent a considerable amount on advertising its mobile phone service,Airtel. Besides print advertising, the company had put up large no of hoardingsand kiosks in and around Delhi.The objective behind designing a promotion campaign for the ‘Airtel’ services isto promote the brand awareness and to build brand preferences.It is trying to set up a thematic campaign to build stronger brand equity forAirtel. Since the cellular phone category itself is too restricted, also the fact thata Cellular phone is a high involvement product, price doesnt qualify as aneffective differentiator. The image of the service provider counts a great deal.Given the Cell phone category, it is the network efficiency and the quality ofservice that becomes important. What now the buyer is looking at is to get theoptimum price-performance package. This also serves as an effectivedifferentiatorBrand awareness is spread through the campaigns and brand preference throughbrand stature. Airtels campaign in the capital began with a series of teaserhoardings across the city, bearing just the companys name and withoutexplaining what Airtel was. In the next phase the campaign associated Airtelwith Cellular only thereafter was the Bharti Cellular connection brought up.Vans with Airtel logos roamed the city, handing out brochures about thecompany and itsservices to all consumers. About 50,000 direct callers were sent out. When thename was well entrenched in the Delhiites’s mind, the Airtel campaign began tofocus on the utility of Cell phone. In the first four months alone Airteis advertisement spend exceeded Rs. 4crores.As of today the awareness level Is 60% unaided. This implies that ifpotential or knowledgeable consumers are asked to name a Cellular phoneservice provider that is on the top of his/her mind 60% of them would nameAirtel. As for aided it -is 100% (by giving clues and hints etc.). 53
    • Brand strength of a product or the health of a brand is measured by thepercentage score of the brand on the above aided and the unaided tests. Thefigures show that Airtel is a healthy and a thriving brand.Every company has a goal, which might comprise a sales target and a game planwith due regard to Its competitor. Airtels campaign strategy is designed keepingin mind its marketing strategy. The tone, tenor and the stance of the visual adsare designed to convey the image of a market leader in terms of its market share.It tries to portray the image of being a "first mover every time" and that of a"market leader".The status of the product in terms of its life cycle has just reached the maturitystage in India. It is still on the rising part of the product life cycle curve in thematurity stage.The diagram on the left hand side shows the percentage of the users classifiedinto heavy, medium and low categories. The right hand side shows the revenueshare earned from the three types of users.Airtel, keeping in mind the importance of the customer retention, values itsheavy users the most and constantly indulges in service innovation. But, sinceheavy users comprise only 15 - 20% of the population the other segment cannotbe neglected.The population which has just realized the importance of cellular phones has tobe roped in. It is for this reason that the service provider offers a plethora ofincentives and discounts.Concerts like the "Freedom concert" are being organized by Airtel in order topromote sales.The media channel is chosen with economy in mind. The target segment is notvery concrete but, there is an attempt to focus on those who can afford. Theprint advertisements and hoarding are placed in those strategic areas which mostlikely to catch the attention of those who need a cellular phone. The productpromise (which might cost different 1 higher) is an important variable indetermining the target audience.Besides this, other promotional strategies that Airtel has adopted are. 54
    • (i) People who have booked Airtel services have been treated to exclusive premiers of blockbuster movies. Airtel has tied up with Lufthansa to offer customer bonus miles on the German airlines frequent fliers programs.(ii) There have been educational campaigns, image campaigns, pre launch advertisements, launch advertisements, congratulatory advertisements, promotional advertise-ments, attacking advertisements and tacticaladvertisements DISTRIBUTION Company Franchisee Distributor Dealers Dealer Customer CustomerThe-company whose operations are concentrated in and around Delhi. It 27Franchisees and 15 Distributors- They also have 8 instant access cash cardcounters- Each franchises or distributor can have any number of dealers underhim as long as the person is approved by the Airtel authority. Each franchise hasto invest Rupees Ten Lakhs. To obtain a franchise and should employ an officerrecruited by Airtel. This person acts as a liaison between the company and thefranchises. The franchises can it any number of dealers as long as theirterritories do not overlap. But unfortunately Airtel has not been very successfulin controlling territorial overlaps of dealers. 55
    • Promotional strategy. For this the Company contributes 75% of the money andthe franchise contributes 25% of the money. The dealers under the franchiseereceive the same commission. The franchises and the dealer obtain the feedbackfrom the customers and they are sent through the liaison officer on a day-to-daybasis to Airtel. The dealer has to invest Rupees. OneLakh as an initialinvestment. The dealers of Airtel are not allowed to provide any other operatorsservice.Target set for distributors and the dealers is 100 -150 activations per month.Hence the dealers can also go for their own promotions like banners anddiscounts on festivals etc. The dealer provides service promptly. The consumeron providing the bill of purchase for the handset and proof of residence has onlyto wait an hour before getting connected. The staffs of the dealers and thefranchisees are provided training by the Airtel personnelWHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phone that lets him/her bein touch, always, but also gets a host of benefits that let him/her manage his/hertime like never before.An Airtel subscriber is provided with a Subscriber Identity Module Card (SIMcard) - that is the key to operating his/her cellular phone. His card activatesAirtel cellular services and contains a complete micro-computer chip withmemory to enable one to enjoy ones cellular phone thoroughly. Each SIM cardcontains a PIN code (Personal Identity Number) which may be entered by one.Just plug your SIM card into your cellular phone, enter the PIN code and itbecomes your personal phone. PRODUCT LIFE CYCLEThe pattern of cell phone subscriber growth observed elsewhere in the worldreveals that the growth in the market is initially slow followed by a sharpacceleration, but so far that has not happened in India. As far as the Product LifeCycle is concerned. Indians are at the beginning of the maturity stage. 56
    • INTRODUCTION GROWTH MATURITY DECLINE ACHIEVEMENT OF THE COMPANY1-Hall of Fame Award form Airtel March 20082-Mission Impossible Award form Airtel March 20083-Star Associates Award form Airtel 20084-Certificates of Recognisations form Idea5-May 2007 GE Money Examplary Contribution and Exceptional Performance6-Certificate of Excellence 2005.7 Star Associate Award -2005( Airtel) for highest collection in Delhi circle.8- Achievers Club Award - 2003(Bharti Growing Together Award-2005( BhartiAirtel Ltd.).9-Arc Award-2005 (Airtel) retail10-Achievers Club Award - 2004(Bharti Airtel Ltd.) in Switzerland11-Achievers Club Award - 2003(Bha 57
    • 12-Airtel Ltd.) in Australia.13-Achievers Club Award - 2002(Bharti Airtel Ltd.) in South Africa14-Hall of Fame Award -2000 (Airtel) in Dubai.15-Hall of Fame Award -2000 (Airtel) in Dubai.16-Grand Masters Club -2001(Airtel) in Thailand.17-Certificate of Appreciation, Nokia in Thailand.REMARKABLE ACHIEVEMENT BY AIRTELIndias biggest mobile phone firm earns certification to ISO/IEC 27001Indias largest mobile phone firm, Bharti Airtel, has been awarded certification toISO/IEC 27001 Information security mangagement by BSI in India. Certificationcovers 300 locations spread over the entire country.For Bharti Airtel, information is critical. Certification to ISO/IEC 27001 helpsmanage and protect valuable information assets, defining requirements for anInformation Security Management System (ISMS), to help ensure adequate andproportionate security controls are in place.ISO/IEC 27001 can be invaluable for organizations managing information onbehalf of others: it can be used to assure customers that their information is beingprotected.Bharti Airtel has almost 2,500 computer servers handling around 2,500 terabytesof data. This certification will help the company become Indias most trustedbrand by 2010."As we expand beyond traditional voice-based services to areas such as mobilecommerce, ISO/IEC 27001 will play a critical role," says Jai Menon, directorcustomer service and technology of Bharti Airtel. "Apart from securing digitaldata, we are also including physical data security as part of this initiative."The organization began rolling out a comprehensive information security policyin2003 and earned its first certification two years ago."We will need to sustain this initiative through continued compliance," Menonadds. "While it took tremendous involvement from the entire organization to 58
    • achieve this feat, what makes it extra special is the sheer extent of its scope,which encompassed all the strategic business units of Bharti Airtel, comprisingall the circles of mobile services and all the hubs of both, Telemedia Servicesand Enterprise Services."The scope also includes all Data Centres, network zones, landing stations, switchlocations and Airtel Centre.To date, Bharti Airtel has been awarded 29 ISO/IEC 27001:2005 certificates byBSI. Based on the International Register of ISMS Certificates, this represents thelargest number of ISO/IEC 27001:2005 certificates awarded to any singlecompany in India across all sectors. General Achievements & Milestones :- Bharti Airtel is one of Indias leading private sector providers oftelecommunications services based on an aggregate of 102,367,881 GSM mobileand 2,827,881 broadband & telephone (fixed line) customers (Status as at monthended June 30, 2009 ). Globally, Bharti Airtel is the 3rd largest in-countrymobile operator by subscriber base, behind China Mobile and China Unicom.Has completed 100% verification of its subscribers and in the processdisconnected three lakh (300,000) subscribers In addition to telecom services,Airtel also recently acquired a 4-star luxury 124-bedroom hotel in Seychelles,called Le Meridian Barbarons Beach Hotel . In India, the company has a 24.6%share of the wireless services market, followed by 17.7% for RelianceCommunications and 17.4% for Vodafone Essar.Bharti Airtel is now connecting India to Europe under its Europe India gateway[EIG]project. The company is building 15,000 km 3.84 Terabit OFC sub-marinecable system connecting Europe [London] to India via the Middle East. Theproject is expected to cost $700 million, which is to be completed by 2010..Sunil Bharti Mittal, the CMD of Airtel,has been conferred one of the highestcivilian award – Padma Bhushan. 59
    • Bharti Airtel Ltd. Share Market PositionBSE | NSE BHARTIARTL Group (A) BSE data397.25 -0.70 -0.18%08 Nov, 15:50:39Volume 338,958Prev Close 397.95Days H/L (Rs) 402.00 - 394.8552wk H/L (Rs) 444.70 - 304.00Mkt Cap (Rs Cr) 150,855.6904 NovReport cardAttribute Value DatePE ratio 19.58 04/11/11EPS (Rs) 20.32 Mar, 11Sales (Rs crore) 10,164.50 Sep, 11Face Value (Rs) 5Net profit margin (%) 20.21 Mar, 11Last dividend (%) 20 05/05/11Return on average equity 17.6 Mar, 11MFs invested in this companyScheme % of asset sizeGoldman Sachs Infrastructure Exchange Traded Scheme - Growth 16.17Birla Sun Life New Millenium Fund - Growth 13.73Birla Sun Life New Millenium Fund - Dividend 13.73DSP BlackRock Technology.com - Growth 12.29DSP BlackRock Technology.com - Dividend 12.29Announcements04 Nov Quarterly Report for Q204 Nov Results Press Release04 Nov Announces Q2 results04 Oct Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) 60
    • Regulations, 199226 Sep Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 199226 Sep Disclosures under Reg.13(4), 13(4A) of SEBI (Prohibition of Insider Trading) Regulations, 199221 Sep Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 199221 Sep Disclosures under Reg.13(4), 13(4A) of SEBI (Prohibition of Insider Trading) Regulations, 199219 Sep Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 199219 Sep Disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 1992Balance sheet Mar 11 Mar 10 Mar 09 Mar 08 Mar 07Sources of fundsOwners fundEquity share capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93Share application money 278.60 186.09 116.22 57.63 30.00Preference share capital - - - - -Reserves & surplus 41,932.10 34,650.19 25,627.38 18,283.82 9,515.21Loan fundsSecured loans 17.10 39.43 51.73 52.42 266.45Unsecured loans 11,880.40 4,999.49 7,661.92 6,517.92 5,044.36Total 56,007.00 41,773.97 35,355.48 26,809.71 16,751.95Uses of fundsFixed assetsGross block 61,437.50 44,212.53 37,266.70 28,115.65 26,509.93Less : revaluation reserve 2.10 2.13 2.13 2.13 2.13Less : accumulated depreciation 20,736.70 16,187.56 12,253.34 9,085.00 7,204.30Net block 40,698.70 28,022.84 25,011.23 19,028.52 19,303.51Capital work-in-progress 6,497.60 1,594.74 2,566.67 2,751.08 2,375.82Investments 11,813.00 15,773.32 11,777.76 10,952.85 705.82 61
    • Mar 11 Mar 10 Mar 09 Mar 08 Mar 07Net current assetsCurrent assets, loans & advances 13,730.10 9,225.08 10,466.63 8,439.38 5,406.81Less : current liabilities & 16,732.40 12,842.00 14,466.89 14,362.33 11,042.67provisionsTotal net current assets -3,002.30 -3,616.92 -4,000.26 -5,922.95 -5,635.86Miscellaneous expenses not - - 0.09 0.20 2.66writtenTotal 56,007.00 41,773.97 35,355.48 26,809.71 16,751.95Notes:Book value of unquoted 11,708.00 11,619.95 9,898.56 9,379.62 580.43investmentsMarket value of quoted 105.10 4,216.67 1,887.76 1,574.29 125.85investmentsContingent liabilities 49,771.40 3,921.50 4,104.25 7,140.59 7,615.04Number of equity 37975.30 37975.30 18982.40 18979.07 18959.34sharesoutstanding (Lacs)NATIONAL AND INTERNATIONAL IMAGE OF AIRTEL Name Bharti Airtel Limited. Business Description Provides mobile, broadband& telephone (fixed line) and enterprise services (carriers & services to corporate)Established 07, 1995, as a Public Limited Company Proportionate Revenue Rs.369,615 million (year ended March 31, 2009-Audited) Rs. 270,250 million (yearended March 31, 2008-Audited) As per Indian GAAP Accounts ProportionateEBITDA Rs. 151,678 million (year ended March 31, 2009 - Audited) Rs.113,715 million (year ended March 31, 2008 - Audited) As per Indian GAAPAccounts Shares in Issue 1,898,373,280 as at June 30, 2009 Listings StockExchange, Mumbai (BSE) The National Stock Exchange of India Limited (NSE) 62
    • Customer Base 102,367,881 GSM mobile and 2,827,881 Telemedia Customers(status as on June 30, 2009) Operational Network Provides GSM mobile servicesin all the 22 telecom circles in India, and was the first private operator to have anall India presence. Provides broadband (DSL) and telephone services (fixed line)in 95 cities in India. Registered Office Bharti Airtel Limited (A BhartiEnterprise) Qutab Ambience (at Qutab Minar), Mehrauli Road, New Delhi - 110030 Tel. No.: +91 11 4166 6000, +91 11 4166 6011Airtel Bangladesh crosses milestone of 5 million customers1-Be mes the fastest growing mobile services operator in the country co2-Adds 160 new towns in last 6 months as part of network expansion drive,establishing its reach in over 2100 towns pan Bangladesh3-Rolls out 466 BTS sites across the country in 6 months timeframe4-Targets to achieve 72% population coverage by December 20115-To setup 600 Airtel Service Centres in Bangladesh by March 2012Dhaka, June 25, 2011: Bharti Airtel, a leading global telecommunicationscompany with operations in 19 countries across Asia and Africa, todayannounced that it has crossed the 5 million customers mark in Bangladesh -becoming the fastest growing mobile services operator in the country. With this,Airtel Bangladesh will continue to strengthen its network reach in the countryand stay committed towardscontributing to the growth of telecom in Bangladesh through affordable services.In January 2010, Bharti had acquired 70 percent stake in Warid Telecom andsubsequently launched brand Airtel in Bangladesh in December 2010.“Airtel’s remarkable journey to 5 million customers in Bangladesh is a testamentto the vision and commitment of a company that benchmarks itself with the bestin the world. We dedicate this achievement to our customers, partners and otherkey stakeholders for their constant support. This milestone reiterates the stronggrowth being experienced by the telecom sector in Bangladesh and we at Airtelare delighted to be at the forefront of this revolution”, said Atul Bindal,President, Mobile 63
    • Airtel Bangladesh also announced that it has added 160 new towns to its networkspread, which now penetrates to a total of 2100 plus towns across the country.With 2220 BTS sites currently present in Bangladesh, Airtel plans on extendingits coverage to reach 72% of the country’s population by December 2011. With atarget of setting up 600 additional service centres in Bangladesh by March 2012timeframe, Airtel plans to further strengthen the presence of its support servicesfor customersWith our 5 million customer landmark achievement, we are delighted to havemade a positive impact on the lives of people in every part of Bangladesh. Wewill continue to focus our efforts on offering world class services andinnovations at affordable prices for our customers in Bangladesh – therebybringing alive our brand promise of Bhalobashar Tane Pashe Ane”, said ChrisTobit, CEO and Managing Director, Airtel Bangladesh Ltd.With a focus towards offering life enriching services for customers, AirtelBangladesh recently launched ‘Airtel Live’ WAP portal that offers richmultimedia content like games, videos and pictures. In addition to 20,000 plusapplications that are currently available on Airtel App Central for customers inBangladesh, Airtel currently also offers several other exciting VAS offeringsincluding ‘Gaan Bolo, Gaan Pao’, cricket caller tunes and classified servicesBharti Airtel Limited is a leading global telecommunications company withoperations in 19 countries across Asia and Africa. The company offers mobilevoice & data services, fixed line, high speed broadband, IPTV, DTH, turnkeytelecom solutions for enterprises and national & international long distanceservices to carriers.Bharti Airtel has been ranked among the six best performing technologycompanies in the world by BusinessWeek. Bharti Airtel had over 226 millioncustomers across its operations at the end of May 2011.Bharti Airtel launches Airtel World SIM for international travelers at theonset of the travel seasonCosts a fraction of international roaming – customers save upto 85 percent oninternational calls 64
    • Offers a single Mobile Number valid across 190 countries - internationaltravelers spared of the inconvenience of carrying multiple SIMs for differentcountriesAirtel World SIM will be initially available to customers in Delhi, followed bythe rest of the countryNew Delhi, April 25, 2010: Bharti Airtel, one of Asia’s leading integratedtelecom service providers, announced the launch of Airtel World SIM forinternational travelers at the onset of the travel season. Enables outboundtravelers to retain their local number – calls made on Airtel India number areforwarded on the new Airtel World SIM. It costs a fraction of internationalroaming and customers save upto 85 percent on international calls. Airtel WorldSIM also offers a single Mobile Number valid across 190 countries -international travelers spared of the inconvenience of carrying multiple SIMs fordifferent countries. It will be initially available to Airtel customers in Delhi,followed by the rest of the country.Announcing the launch of the service, Mr. Shireesh Joshi, Director-Marketing, Mobile Services, Bharti Airtel said, “The Airtel World SIM hasbeen created following in-depth research and customer feedback. Over 10million Indians travel abroad annually and they are looking for a calling productthat provides them flexibility and convenience at competitive prices. The AirtelWorld SIM allows travellers to retain access to incoming calls on their Indianumber, their local-SIM contacts and seamless connectivity in 190 countries. Allthis at tariffs that are a fraction of international roaming rates, offering savingsupto 85%.”FUTURE PROSPECTS OF AIRTELBharti Airtel Announces Strategic Organisation Changes For Future1- Creates International Business Group for enhanced focus on international expansion beyond India and South Asia 65
    • 2- 2- Manoj Kohli to head the International Business Group and lead Airtel’s global foray as CEO (International) & Joint MD3- Sanjay Kapoor promoted to CEO, Bharti Airtel (India and South Asia) toconsolidate Airtel’s leadership positionNew Delhi, January 13, 2010 : Bharti Airtel Limited, one of Asia’s leadingtelecom services provider, today announced strategic organizational changes with the objective to enhance its focus on expanding operations to internationalmarkets beyond India and South Asia and further consolidate its leadershipposition in India.The company announced the creation of a new, empowered and dedicatedInternational Business Group that will be responsible for expanding thecompany’s operations beyond India and South Asia region. Manoj Kohli, who iscurrently the CEO (India and South Asia) & Joint MD of the company, will headthe International Business Group as CEO (International) & Joint MD and willcontinue to be a member of the Bharti Airtel Board. The International BusinessGroup will comprise a team of seasoned and experienced professionals,including from within the Bharti group, from areas such as BusinessDevelopment, Networks & IT, SCM, Project and Performance Excellence,Brand and Customer Experience.Sanjay Kapoor, currently the Deputy CEO of the company, will be elevated tothe position of CEO (India and South Asia), Bharti Airtel. Sanjay would haveend-to-end responsibility of leading India and South Asia businesses of BhartiAirtel and will drive growth and business synergies in Mobile Services,Telemedia Services, Enterprise Services and DTH. He will lead Bharti Airteltowards strengthening its position as a benchmark in innovative practices, brandleadership, operational efficiency, customer value and leadership depth.Mr. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtelsaid, “The next phase of our journey is set to be another game changer –requiring superior thrust and focused leadership.We continue to win in the Indian telecom market, which is going through aphase of hyper competition. At the same time, we will be developing 66
    • comprehensive plans for our journey to cover emerging markets beyond Indiaand the South Asia.” “Bharti Airtel has one of the finest management teams in the country and astrong leadership pipeline. This new structure will leverage our managementdepth and build a strong platform for fulfilling our global vision. Manoj andSanjay, are amongst the finest professionals in telecom industry not just in Indiabut across the world and have contributed immensely to the success of BhartiAirtel. I wish both of them the very best for their new assignments.” added Mr.Sunil Bharti Mittal.Both Manoj and Sanjay will report to Sunil Bharti Mittal, Chairman & ManagingDirector, Bharti Airtel. The new organization structure is effective 01 April2010.Bharti Airtel international will Invest $100 Million In MalawiBharti Airtel, who became the world’s fifth largest mobile player With recentacquisition of Zain Telecom’s African business is now planning to invest overUS$ 100 Million in the Malawi telecommunication industry in the next threeyears. Company has also revealed that by this investment and business plan ittargets to achieve 100 million subscribers and $5 billion revenue by 2012-13.Bharti Airtel now owns 100 percent of shares in Zain Malawi.“We plan to invest $100 million in Malawi in the next three years to improvecoverage and reach out to Malawi’s rural farmers and help the country’seconomy grow,” said Manoj Kohli, chief executive officer, Bharti Africa in inthe Malawi’s capital Lilongwe Kohli also revealed the company’s wish toimprove local call rates to at least 250 minutes. Malawi currently hovers around 67
    • 40 minutes of talk time for users. In India, he referenced, subscribers utilizebetween 400 and 500 minutes per month. SHAREHOLDING PATTERN/OWNERSHIP1st Quarter: 45.38% of the total shares were held by the “promoter and promotergroup”. 54.62% of the shares were held by the public institutions.2nd Quarter: 60.97% of the total shares were held by the “promoter andpromoter group”. 39.03% of the shares were held by the public institutions. Theshareholders belonging to the “public” category and holding more than 1% ofshares were:Vodafone International Holding BVCitigroup Global Markets Mauritius Private LimitedMorgan Stanley And Co International LimitedLife Insurance Corporation of India under Various SchemesThe Growth Fund of America Inc3rd Quarter: 60.96% of the total shares were held by the “promoter andpromoter group”. 39.04% of the shares were held by the public institutions.4th Quarter: A major portion of the shares are held by the “promoter andpromoter group”. They held 60.95% of the shares, the two promoters beingBharti Telecom Limited and Pastel Limited.The remaining 30.05% shares were held by non-institutions BUSINESS DECISIONSBharti Enterprises announces new Apex Level Strategic Organization StructureBharti announces a Strategic Roadmap for its Retal Venture.Bharti Group has an arrangement to buy 5.6% direct interest of Vodafone inBharti Airtel Limited for US $ 1.6 TARIFF STRUCTURE Prepaid TariffsAirtel Prepaid Ready Cellular Card and Recharge Cards are available, all overthe city 68
    • at over retail outlets including 24-hour outlets. Airtel Prepaid Ready CellularCard and Recharge Cards are available, all over the city at over retail outletsincluding 24-hour outlets. Prepaid RoamingAirtel Prepaid comes reactivated with National Roaming, so you stay connectedno matter wherever you are. You can also send or receive MMS, check youremail and access other GPRS services while roaming in India as you would inyour own city. While traveling abroad you can receive calls & send or receiveSMSAirtel Reduces Roaming Rates – Prepaid Plan in DetailsIndia’s largest GSM mobile service operator Airtel today launched two newprepaid offers, keeping in mind the fact that over 110 million people across Indiause Airtel, making it the largest network in the country. These new plans willoffer customers the ability to make Roaming calls at the following rates i.e.Airtelto all Airtel ( Local+STD) @ 60 paise /min and Airtel to all Others (Local+STD)@ 80 paise/min.The Incoming calls while national Roaming would be charged@ 60 paise/min.Airtel is not in the race with other service provider. Airtel issuch a big company but do not have any affordable plan for roaming, sms, call .Its a big shame for airtel. Your plans are not affordable for students and generalpublic. Please launch some better and cheaper plans . Please look at smallcompanies like Aircel and Idea they have much better plans.Airtel is very costlythan others, you dont have any cheaper plan for roaming calls and sms finaly it is 69
    • the matter of shame for such a big company, we r stil waiting for some goodschemesFollowing the announcement of “Airtel Reduces Roaming Rates ByNearly 60% ” here is a 1st hand look at the two new Prepaid schemes, speciallytailored to give upto 60% savings on National Roaming call chargestailored to give upto 60% savings on National Roaming call charges. Airtel TurboAirtel TurboParticulars Unit 98 99Enrollment Fee Rs. 98 99Pulse 1 min 1 secTalktime 0 0Validity (Main 365 days 365 daysA/c)Free sms 200 local 200 localLocalA-A Rs. 0.50 0.01A-Others Rs. 0.60 0.012STDA-A Rs. 0.50 0.01A-Others Rs. 0.60 0.012SMSLocal Rs. 1.00 1.00National Rs. 1.50 1.50International Rs. 5 5RoamingLocal/STD – A-A Rs. 0.60 0.60Local/STD – A-O Rs. 0.80 0.80Incoming Rs. 0.60 0.60ISD Rs. Standard Standard POSTPAIDAirtel Postpaid allows you to choose from a variety of affordable talk plans,convenient payment options and host of rich features. So get set to enjoy a worldof limitless possibilities! Reference Tariff Packages (RTP)ON TIME CHARGESActivation Charges Rs. 600Membership Fee NA 70
    • Security Deposit Rs. 1000MONTHLY CHARGES (FIXED) Rs. 524Bill plan Charge Rs. 425Monthly Rental Rs. 99Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 99 Airtel GSM / Landline / CDMA (10 WLL Digit)Local Rates Rs. 1.99 Rs 1.99 Rs 1.99STD RATES50 – 200 Km200 – 500 Km500 + KmISDUSA, Canada, Europe (Fixed Line), Rs. 7.20Australia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of the worldCuba, Sao tome & Principle, Guinea Rs. 40.00Bissau, Diego Garcia, Nauru, SolomonIslands, Vanuatu, Cook Island, Tuvalu,Tokelau, Norfolk Island, SakhalinSMSLocal Rs. 1.50National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00Airtel One Standard 150ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 150 71
    • Bill Plan Charge Rs. 51Monthly Rental Rs. 99Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50Bissau, Diego Garcia, Nauru, SolomonIslands, Vanuatu, Cook Islands, Tuvalu,Tokelau, Norfolk Island, SakhalinSMSLocal Rs 1.50National Rs 2.00Intentional Rs. 5.00VAS Rs. 3.00 This Bill Plan is also available under Advance Rental of Rs. 900 for 2 years.Local PackAirtel to other local mobiles (non Airtel) At Rs 1 / min Monthly rental Rs 25 per months/- STD PackAirtel to other mobiles (non Airtel) & fixed lines nos. at Rs 2 / min. Monthly rental Rs 75 per month/- Special offer for Airtel Telephone service customers for availing Airtel Mobile servicesIf you already have Airtel Telephone service, you can buy a new Airtel Mobileconnection under Airtel One Standard 150 Plan.Benefits: Non security deposit. No membership / activation fee Enjoy calls to your Airtel fixed line no. at just 60 P / min. Monthly rent of Rs 25 for reduced call rates to your Airtel fixed line has been waived off for 1 year.For details, call us 516-12345Advance Rental benefits (1year scheme)Pay an advance rent of Rs 999 and enjoy Airtel One Standard 150 plan at Zeromonthly rental for one year. 72
    • Advance rental of Rs 999 gives you a rental discount of Rs 150 every month for the next 2months. All other options and charges are as per the existing Airtel One Standard 150 Plan.Airtel one Standard 249ONE TIME CHARGESActivation Charges Rs 250Membership Fee Rs 250 (Converts into security after 24 months)Security Deposit NAMONTHLY CHARGES (FIXED) Rs. 249Bill Plan Charge Rs. 150Monthly Rental Rs. 99Clip NAMONTHLY CHARGES (OPTIONAL)Clip Rs. 50 Airtel GSM / Landline / CDMA (10 WLL Digit)LOCAL RATES Re. 1.00 Rs. 1.25 Rs. 1.25STD RATES50-200Km Rs. 2.00 Rs. 2.40 Rs. 2.40200 – 500 Km Rs. 2.00 Rs. 2.40 Rs. 2.40500 + Km Rs. 2.00 Rs. 2.40 Rs. 2.40ISDUSA, Canada, Europe (Fixed Line), Rs. 7.20Australia, Singapore, Hong Kong,Thailand, Malaysia, Indonesia, newZealandGulf, Europe (Mobile), SAARC Rs 9.99Countries, Africa & Rest of the worldCuba, Sao tome & Principle, Guinea Rs. 40.00Bissau, Diego Garcia, Nauru, SolomonIslands, Vanuatu, Cook Island, Tuvalu,Tokelau, Norfolk Island, SakhalinSMSLocal Rs. 1.50National Rs. 2.00International Rs. 5.00Value Added Services (Rs.) Rs. 3.00 73
    • You also enjoy 25 FREE local mobile to mobile SMS SERVICES Airtel PrepaidAirtel Prepaid, the Ready Cellular Card from Airtel comes to you from BhartiEnterprises, Indias leading integrated telecom service provider. Going mobilewith Airtel Prepaid is a new way of life. With a host of great features, alsosimple to use, Airtel Prepaid makes everything that you dreamt and believed,possible.Total Cost ControlYou can control your Airtel Prepaid like never before. No more rentals ordeposits – simply recharge as much as you need to from as low as Rs. 10, to ashigh as Rs. 10,000/-.Pre activated STD/ISD without deposits or rentalsYou can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No morepaying deposits or having a minimum balance in your account to make anSTD/ISD call. Hassle-free calls are here to stay!Strong Network CoverageEnjoy complete clarity when calling with Airtel’s world-class technology andunbreakable network coverage that spans over 23 circles across the country. Instant Balance and Validity EnquiryYour account balance is updated on the screen of your handset at the end of eachchargeable call. You can also call 123 from your mobile phone and listen to thevoice announcement or simply dial *123#, press OK or YES button and youraccount balance will be displayed on the screen of your handset. Recharge your Airtel Prepaid 74
    • Recharging is Easy. The calling value on your card keeps reducing as you makecalls or use any other chargeable service. Choose the Airtel Prepaid RechargeCoupon that’s right for you, from a variety of tailor– made recharge couponswith different denominations, which are available at a number of outlets acrossyour city. Simply follow the procedure mentioned below, to recharge yourphone. Prepaid RoamingAirtel Prepaid comes reactivated with National Roaming, so you stay connectedno matter wherever you are. You can also send or receive MMS, check youremail and access other GPRS services while roaming in India as you would inyour own city. While traveling abroad you can receive calls & send or receiveSMS. Other ServicesAirtel brings you, a wide range of Services that will change the way youcommunicate. Try them and discover a whole new world of fun and excitement. Call management ServicesCall waiting, call hold, call divert and Caller Line Identification Presentation –all with your Airtel prepaid connection. Voice MailWhen your handset is switched off, or you’re too busy to answer the phone,Airtel Voicemail will answer your calls and record a message. The best part isthat theres no extra monthly cost for setting up Voicemail - you just pay for thephone call when you use the service. SMS (Short Messaging Service)Send messages quickly and easily using text, if its too noisy to talk or you donthave much time. Its the way to share those interesting one-liners, importantreminders andrib-tickling jokes, with anyone, anytime, anywhere in the world. Subscription Alerts 75
    • Get regular alerts on news, jokes, business, health and films on your Airtelmobile phone with Subscription Services. SMS <SUB NEWS> to 3333 forNews, <SUB JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO>for Sports Alerts & <SUB VAASTU> for Vaastu tips. MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings, with MMSfrom Airtel! To activate MMS on your phone, SMS MMS to 56465 and saveservice settings. Airtel Live!Make your mobile the most happening entertainment destination with AirtelLive! Airtel brings you the latest in entertainment and information services, righton your phone! Airtel Live! WAP Services:Download the latest ring tones, games, wallpapers, videos and much more. Youcan also get news clips, watch live TV and download full songs on you phone.To get Airtel Live! settings on your phone, SMS Live to 56465 and save thesettings that you receive as your preferred connection. Airtel Live! Portal can beaccessed from you GPRS enabled phone, by sending a SMS FUN to 56465. Airtel Live! Voice Services:Just Dial 56465, and name the service. For e.g. say ring tones to download yourfavorite ring tones. You can also choose a variety of content options like LiveCricket Commentary, latest National / International News, Movie Reviews orStock market. Airtel Live! SIM Services:Access loads of fun content and exciting services like cricket, stocks, on yourphone at the touch of a few buttons with Airtel Live! SIM based Services onyour SIM card menu. Airtel Live! SMS Services:You can enjoy a host of services by sending a keyword as an SMS to 56465!Choose Astrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ringtones. In 76
    • case you need assistance SMS, Help to 56465. Buy Music - Airtel Music ShopsBuying your favorite Hello Tune or Ring tone is as simple as recharging yourphone with talk time. Simply walk into your nearest Airtel Shop and walk outwith your favorite song. Choose from Bollywood Hits to Indipop Remixes, HardRock to Gujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping TamilHits from a list of more than 18000 songs. Airtel PostpaidAirtel welcomes you to a vibrant world of unlimited opportunities. Moreexciting, innovative yet simple new ways to communicate, just when you wantto, not just through words but ideas, emotions and feelings. To give you theunlimited freedom to reach out to your special people in your special way. Easy Billing :Enjoy a host of rich features only with Airtel e-bill. Register free on ‘My Airtel’section and view your monthly bill with call details for last three months. Sortyour calls between personal and official or analyze your usage, at the click of abutton. To change your tariff plan call our IVR at 121 and leave a request. Easy Payment Options. Anytime AnywhereYou can choose from a host of convenient payment options only with Airtel.Walk into any Airtel relationship centre and make your payments by cash orcredit card. Drop a cheque at any of the drop boxes for making payments orsimply log on to My Airtel section and pay instantly through your credit card . Standing InstructionsYou can give us standing instructions to debit your credit card account for yourmonthly Airtel bills. All you have to do is fill the Standing Instruction Form andmail, fax it to us or drop it any of our relationship centers. 77
    • Electronic Clearing SystemFill an ECS form and mail, fax it to us or drop it any of our relationship centersto directly debit your bank account for your monthly Airtel bill. Pay while roamingAirtel has introduced Anywhere payment that offers you the convenience ofmaking payments while you roam. Walk in to any Airtel Relationship Centre inthe country, make payments by cash or credit card and enjoy uninterrupted AirtelServices. Credit limitYour pre-set credit limit mentioned on your monthly bill helps you keep yourmobile charges in control, keeps track of your usage and ensures that yourmobile phone is not misused. Should you exceed your credit limit, you will beinformed via a voice or a non-voice message to make an interim payment andreduce youraccount balance below your credit limit. You may also choose to pay us anadditional refundable deposit to enhance your credit limit or opt for ourconvenient payment method of Credit Card Standing instruction .You can alsomake use of ECS facility. Strong Network CoverageEnjoy complete clarity when calling with Airtel .It offers you world classtechnology and unbreakable network coverage that spans over 23 circles acrossthe country. Long Distance Calling FacilityCall long distance calls in India and Overseas with STD / ISD facility on yourAirtel phone. Widest Roaming - National and InternationalAirtels roaming service allows you to stay connected and use your mobile phoneto make or receive calls from almost anywhere in India and also over 160countries, abroad. GPRS - Roaming 78
    • Use Airtel Postpaids GPRS services, while roaming, to access the internet andoffice mails (eg. Blackberry services), from almost anywhere in India andabroad. Say it. In more than just words, with Services from AirtelAirtel brings you a wide range of Services that will change the way youcommunicate. Try them and discover a whole new world of fun and excitement. Call management ServicesCall waiting, call hold, call divert and Caller Line Identification Presentation,help you do more with your Airtel Postpaid connection! Conference callyou can hold a teleconference with 5 people simultaneously with CallConferencing service from Airtel. In fact, you can set up a conference even whenthe other five are using a landline phone. To know more, call customer service at121. Missed call alertA missed call alert is a SMS that you will receive for all the calls that youmissed. The SMS will detail the CLI and the time when the call was made. Toactivate, dial *135*2# then press the call button and wait for the request to becompleted. Voice Mailwhen your handset is switched off, or you’re too busy to answer the phone,Airtel Voicemail will answer your calls and record a message. The best part isthat theres no extra monthly cost for setting up Voicemail - you just pay for thephone call when you use the service. SMS (Short Messaging Service)Send messages quickly and easily, using text, if its too noisy to talk or you donthave much time. Its the way to Share those interesting one-liners, importantreminders and rib-tickling jokes, with anyone, anytime, anywhere in the world. Subscription Alerts 79
    • Get regular alerts on news, jokes, business, health and films on your Airtelmobile phone with Subscription Services. SMS <SUB NEWS> for News, <SUBJOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO> for SportsAlerts & <SUB VAASTU> for Vaastu tips to 3333. MMS (Multi-media Messaging Service):Jazz up your messages with pictures, images and video clippings, with MMSfrom Airtel! To activate MMS on your phone, SMS MMS to 56465 and saveservice settings. Hello TunesTired of that boring old ‘tiring tiring’ on your phone? Well now when a friendcalls,you can make them groove to the hottest new tracks burning up the music chartswith Hello Tunes from Airtel! You get a wide choice of songs in the Popular &New Arrivals categories that are updated regularly. Whats more, you candirectly call the number for your kind of music, e.g. call 678005 for ‘EnglishNew’ and 678001 for ‘Hindi New’. This would directly take you to your favoriteartists Hello Tunes listing. Copy a Hello TunesLike a tune you want, all you have to do is call 55055 and follow the simplevoice instructions to copy your favorite Hello Tunes. Once inside the copyfeature, just key in the 10-digit Airtel mobile number you want to copy the HelloTune from and you get the same Hello Tune assigned to your number. Gift a Hello TunesForget gifting chocolates, flowers and greeting cards. Say it with a song instead!Gift a Hello Tune to that special someone. Just call 55055 and choose the songthat you want to gift. Follow the simple voice instructions and key in the 10-digitAirtel mobile number that you want to gift the Hello Tune to. You will get anSMS notification upon successful receipt of that gift. MARKET SITUATION At the time of launch : 80
    • The first mover in the market was Airtel which launched its services in Delhi inAug 1995 (Informal launch). Essar Cell phone followed by launching itsservices informally in Oct 95. At this point of time, the market was at a nascentstage, awareness level was low and both operators independently tried to spreadawareness and educate the peopleOnce the networks were commercially launched, it became a number game witha multitude of schemes being offered to woo customers Initially the cell phonewas perceived as a status symbol and utility took a back seat The target segmentin Delhi were corporate and the high income group. The average capacityinstalled was for 1.5 lakh subscribers. This coupled with the steep license feepaid to DOT put pressure on the operators to break-even by rapidly expandingtheir markets. In the first two years, this led to a number of schemes beingoffered and prices crashing.COMPETITIVE SITUATIONAirtel launched its services before Essar and skimmed the market picking up thebulk of the high usage premium clients. This is a very competitive industry withthe two companies differentiating either on value-added services or price. Airtelis perceived as the high quality provider and has a premium image. Essar, on theother hand, is perceived as the lower end service provider. Airtel positions itselfas the market leader on the basis of the number of subscribers. Essar is trying tocounter this by emphasizing on the reach of its network and the quality of itsservice. However, Essar is somewhat not been very successful largely due to theinconsistency in advertisingTo promote themselves, both the players have been dependent on tacticaladvertising However, they have restrained from using comparative advertisingHoardings have been a very popular medium for carrying the advertisementsAirtel has also been advertising on television using the Bharti Telecom name SALES DEPARTMENT AND STRATEGYA. Major Accounts (Direct Channel) • Handles corporate (named and famed) accounts 81
    • • Forecasting of sales • Mapping the accounts • Providing after sales support to the subscribers. • Maintaining call reports for records. • Providing Feedback to the marketing department regarding the requirement of the market.B. IDC (indirect Channel) • Handling distribution • Maintaining records and level check of the channel partner • Liaisoning between the channel partner and the company. • Target achievement • Training the executives of the channelC. Distribution Support1. Logistics • Monitor handset and SIM card requirements of channel partners and co- ordinate with stores • Settle areas of concerns such as incentive claims of channel partners2. Rental • Provide cellular services (SIM cards) on rent. • Provide cellular phones on rent • Useful for people visiting Delhi for a short interval.3. Telesales • Call customers and generate sales lead. • Follow up with the customers, if they need any assistance • Pass on the sales lead to the channel department.4. Audit • Consultant to the AirTel showrooms. • Monitor the operations at the AirTel distribution outlets Organize training. 82
    • 5. Retail • Locate shops to open retail counters. • Monitor the retail counters.MARKET SEGMENTATIONSegmentation is beneficial because of better predictability of the target consumergroup, minimization of risk exposure, better ability to fine-tune a product /service to the requirement of target buyer and the resultant ease in designing aproper designing marketing mix strategy In this case segmentation is on the badeof income.In evaluating different market segments the company looks at two factors Theoverall attractiveness of the segments and the companys objectives & resourcesThe present market for Cellular phones, pagers and conventional phones is asfollows Premium Middle Economy Upper Lower Upper Lower Upper LowerCellular Phones X X X - - -Pager X X X X - -Conventional Phones X X X X X -X Market Segment TargetedMARKETING OBJECTIVESCreate product Maximize market share Maximize profits wholeawareness and trial defending market shareStrategiesProduct Offer a basic Offer value added Increase in product/ service. services number of value added services. 83
    • Price Charge cost- plus Price to penetrate Price to match or market best competitorsDistribution Build selective Build Intensive Build more distribution distribution. intensive distribution.Advertising Build product Build Stress brand awareness awareness and differences and among early interest in the benefits. adopters and mass market dealers.Sales Promotion Use heavy Increase to Increase to sales build and encourage promotion to maintain brand- entice people relationships switching. to subscribe. with customers.WHAT DOES AIRTEL OFFER?With Airtel, the subscriber wouldnt just get a personal phone thatlets him/her be in touch, always, but also gets a host of benefitsthat let him/her manage his/her time like never before. 84
    • An Airtel subscriber is provided with a Subscriber Identity ModuleCard (SIM card) - that is the key to operating his/her cellularphone. His card activates Airtel cellular services and contains acomplete micro-computer chip with memory to enable one toenjoy ones cellular phone thoroughly. Each SIM card contains aPIN code (Personal Identity Number) which may be entered byone. Just plug your SIM card into your cellular phone, enter thePIN code and it becomes your personal pho 85
    • FINDINGS AND ANALYSIS1. Do you believe that India is potentially one of the most existing mobileservice providers in the world? Company Yes No Airtel 60 7 Vodafone 40 10 Idea 30 10 BSNL 30 13 No 10 10 13 7 Yes 60 40 30 30 0 20 40 60 80 100 120 140 160 180 AirTel Vodafone Idea BSNLAs according to the above table 160 (80%) out of the total 200interviewed people in all the above four specified Indian mobileservice providers are of belief that India is potentially one of themost exciting mobile service providers in the world, whereas some40 (20%) of them do not agree to this view.2. Do you find that the government’s telecom policy has had the mostradical impact on the development of mobile service providers? Company Yes No Airtel 40 10 Vodafone 30 20 86
    • Idea 30 20 BSNL 50 -- 50 45 40 35 AirTel 30 V 25 Idea 20 BSNL 15 10 5 0 Yes NoAs according to the above table 150(75%) out of the total200interviewed people in all the above four specified Indian mobileservice providers find that the government’s telecom policy hashad the most radical impact on the development of mobile serviceproviders, whereas some 50 (25%) of them deny this.3. Do you believe that one of the challenges facing mobile operators in Indiais the diversity of the coverage regions? Company Yes No Airtel 20 30 Vodafone 30 20 Idea 30 20 BSNL 20 30 87
    • 30 25 AirTel 20 Vodafone 15 Idea BSNL 10 5 0 Yes NoAs according to the above table 100(50%) out of the total 200interviewed people in the mobile service providers are of belief thatone of the challenges facing mobile operations in India is thediversify of the coverage regions, whereas interestingly another100 (50%) of them deny this.4. To what extent, do you find that mobile service providers is a verycomplex standard?Company To some extent To great extentAirtel 30 20Vodafone 20 30Idea 20 30BSNL 30 20 88
    • 30 25 20 AirTel Vodafone 15 Idea BSNL 10 5 0 To some extent To great extentAs according to the above table 100(50%) out of the total 200interviewed people in all the above four major the mobile serviceproviders in Indian Cellular industry find only to some extent thatGSM is a very complex standard, whereas the another 100(50%)respondents find to great extent that mobile service providers is avery complex standard.5. Do you believe that mobile service providers come close to fulfilling therequirements for a personal communication system? Company Yes No Airtel 45 10 Vodafone 40 20 Idea 40 20 BSNL 20 5 89
    • 5 20 No 20 10 BSNL Idea Vodafone 20 AirTel 40 Yes 40 45As the above shows 145 (72.5%) out of total 200 respondents areof the belief that mobile service providers comes close to fulfillingthe requirements for a personal communication system, whereas55 (27.5%) of them are in no way to this belief.6. Do you find that mobile service providers as the most exciting andsatisfying mobile standard? Company Yes No Airtel 40 10 Vodafone 35 15 Idea 30 20 BSNL 30 20 No 10 15 20 20 Yes 40 35 30 30 0 20 40 60 80 100 120 140 160 AirTel Vodafone Idea BSNL 90
    • As the above shows 135 (67.5%) out of total 200 respondents findthat mobile service providers as the most exciting and satisfyingmobile standard, whereas the remaining 65 (32.5%) respondentsdeny this.7. Do you believe that your service provider has a genuine commitment tocreating a modern and efficient communications? Company Yes No Airtel 50 -- Vodafone 40 20 Idea 30 -- BSNL 40 20 20 0 No 20 0 BSNL Idea Vodafone 40 AirTel 30 Yes 40 50As the above shows 160(80%) out of total 200 respondents are ofthe belief that their service providers have a genuine commitmentto creating a modern and efficient communications whereas theremaining 40 (20%) respondents deny this. 91
    • SWOT ANALYSIS OF AIRTEL StrengthsINVESTOR’s FAITH:Investor’s faith in Airtel that causes huge monetary support.STRONG ADMINISTRATION:Under the leadership of Bharti Cellular Ltd Airtel proved themselves as an well-organized & administrative company.BRAND NAME: Airtel as a brand is the synonym of success. It is the largest private limitedorganization of India. WeaknessLack of Co-Ordination between Deptt.Lack of Choice of Good Pre-paid numbers like XXYY numbers like othersproviding.Rural market. OpportunityFavourable TARRIFS: Newly issued tariffs are suitable for Airtel so they caneasily modify their tariff plans according to it and gain customer attraction. ThreatsTough COMPETITION: Airtel has to face a tough competition with existingmarket leaders like Reliance (Reliance is providing Free Outgoing also)Vodafone Idea, BSNL, Aircel, Uninor. FINDINGSAirtel FSOFSO - Full Service OutletBasically for providing customer services in terms of their queries to build goodrelation with customers to reach a point of customer satisfaction. Building goodcustomer relation does not only help in expanding sales but also helps inknowing the customer better and knowing the customer further leads toacknowledgement of tastes & preferences of the customer. 92
    • One of the various ways to reach the customer is through franchisee. It helps thecustomer to be in touch with a particular business. The franchisee should be atmany places to build a strong relation with all segments of customer. It must alsohave many customer executives so that there are enough people to attend allcustomers and time can be saved. It leads to instant help to the consumer to behappy and satisfied and the sole purpose of marketing "Customer Satisfaction isachieved. INTERACTING WITH THE CUSTOMERSAll the customers were treated well, when they enters the franchisee theexecutives greets them. All the executives there listens the customer query verypatiently and try there level best to solve it they send the customer to the floormanager.For eg.:For the new connection - The executives first listening to the customer patiently(his needs and preferences) than tell them post paid and prepaid connection planswhich most suited to the customer and helps them to choose the best for them, onthe basis of their budget, for what purpose they are buying, how often he will useit etc. SERVICES PROVIDED BY Franchisee:New Post paid and prepaid connectionNew SIM issueDuplicate SIM issue.Coupons and Easy recharge (Value)Bill deposit (In cash and cheque)Solving Customer queriesMigration of prepaid connection to postpaid connection and vice versaName and Address change of postpaid connectionActivation of Roaming and STDBill detailsChanging of plans 93
    • Disconnection of planMobile problemsQueries regarding broadband, GPRSQueries regarding Land line phone OBSERVATION:The executives there were not fully aware of all plans. For eg. the executives wasnot aware that Rs. 2,000 prepaid Connection in which the customers get twoyears incoming validity was still going on, he come to know about it when thecustomer said that he got a message from Airtel today about this plan.Customers of new connectionunhappy that there connection will be activated after a weak. Customer’s werenot satisfied with the Airtel services. 1. Customer care number doesnt connects easily, it takes a lot of time to connect some-times a day to speak with executive. Many fraud cases were coming. Most of the people are opting for post-paid connection instead of prepaid connection post-paid and prepaid connection plans which most suited to the customer and helps them to choose the best for them, on the basis of their budget, for what purpose they are buying, how often he will use it etc. Most of the people were opting for Rs. 1399 advance rental plan of 2 years. Many customers were demanding for corporate connection but the executives said that individual connection of corporate is not possible; they should be at least five connections. People were very happy with add-on scheme of post paid and also opting for it. The franchisee sells 7 to 9 post paid and 3 to 5 prepaid connections daily. Many customers were coming for making adjustment in their bill plan or amount. Many customers were coming with the problem that the plan they are assigned was not opted by them. Radio-connectivity of their 94
    • system was getting very slow again and again by which the customers were getting irritated. The customers who need prepaid connection were getting less preference in comparison to the customers who need post- paid connection. The customers were very happy with Airtel scheme in which the customer can make the payment through bank automatically every month by filling ECR RECOMMENDATIONThe company should go ahead with aggressive marketing. They should lightcompetition on • Awareness level. • Pricing strategy.Thus, the recommendations fir these are as follows:1. AWARENESS(a) The company should sponsor local programs.(b) The company should arrange briefing sessions at prominent clubs such as LIONS CLUB and ROTARY CLUBS etc.(c) The company should organize awareness quizzes through Newspapers, Magazines & announce suitable rewards accordingly.(d) The company should distribute leaflets of AIRTELCellular in posh coloniesof Lucknow. 2. PRICING STRATEGY(a) The company should look the strategies of the competitive companies.(b) The company should try its level best to keep the price low as compare to competitors.(c) The schemes should be updated as per the needs and occasions 95
    • 1. SUGGESSTIONS • There should be more customer care numbers and executives so that the problems of the customers can be solved quickly. • They should have more space for payment. • The executives there should be given training time to time about new schemes and plans. • No phone calls should be attended while entertaining the customer. • Every executive should know his responsibility and work. • As the company have captured the western market they should retain the customers • Try to capture the nearest other markets nearby • Occasional offers • Proper billings to the post paid users • Proper response to the customers on the helpline no. Or toll free nos. • Roaming deposits should be reduced FURTHER SUGGESTIONS MATCH COMPETITORS SCHEMES. COMMUNICATE THE SCHEMES TO FOS. AND RETAILERS DAILY. BETTER NUMBERS IN PRE – PAID AS CUSTOMER REQUIRES CHOICE. 96
    •  ENHANCE THE SERVICE IN AREAS WITH WEAK NETWORK. COORDINATION BETWEEN DEPARTMENTS MUST BE IMPROVED. CONCLUSION“Good services is the way to retain the clients” AIRTEL CONNECTIONS ARE SELLING BECAUSE OF BEST NETWORK COVERAGE. GOOD RELATIONSHIP OF FOS. & REATILER IS BEING HELPFUL IN SELLING. LARGE MARKET COVERAGE, EASY AVAILABILITY OF COUPONS. CUSTOMER CARE NUMBER DOES NOT CONNECTS EASILY AND EXECUTIVES THERE WERE ALSO NOT AWARE OF THE SCHEMES. 97
    • BIBLIOGRAPHY• REFRENCES• AIRTEL’s reports• Books & magazine on mobile communication• WEBSITES & SEARCH ENGINE• www.airtelworld.com 98
    • www.bhartiteleventures.com www.researchandmarket.com www.info-shop.com www.smartmobs.com www.yahoosearch.com www.google.comQUESTIONNAIRESURVEY OF AIRTELName:Gender :………………… Age:…………Occupation: ..……………1. WHICH TELECOMMUNICATION PROVIDER GIVES YOU BEST SERVICES. A. Vodafone B. Airtel 99
    • C. Aircel D. Reliance E Others2.Which company provides you best plan. A. Vodafone B. Airtel C. Aircel D. Reliance E Others3.Which companies fos and runners are more supportive. A. Vodafone B. Airtel C. Aircel D. Reliance E. Others4.Are Airtel fos and runners punctual about their time in service providing. A.Yes B.No5.Are you satisfied with dealer helpline service. A.Yes B.No6.Your suggestion please. 100
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