1 INTRODUCTION    1.1 Company Profile    Bharti Airtel was formerly known as Bharti Tele-venture Limited (BTVL) is India‟s...
o            Airtel Africa which operates in 17 African countries:  Burkina Faso, Chad, Democratic Republic of the Congo, ...
Rwanda               Airtel Rwanda                 Airtel launched services in Rwanda on 30 March                         ...
3GOn May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the Indiangovernment 122.95 billion (US$ ...
4GOn 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtelpaid   33.1436 billion ...
1.4 Salient Contributions of the project:If are successful in finding potential customer of our product during our project...
Wireless data –internet MPLS, NLD IPLC, VSAT ,Clod Computing    3G Dongles & Black berry services    Audio video conferenc...
related problem or internet connecting wire from outside i.e. outside customers premises is damage isdetected than Airtel ...
PRI:The Integrated Services Digital Network (ISDN) prescribes two levels of service, the Basic RateInterface (BRI), intend...
2 LITERATURE REVIEWOnline journal for Bharti Airtel performance      July 23, 2009,Bharti Airtels results tell a different...
nullifying the effect of lower access charges (down by 8%). On the positive side, while expenses are upby 19% over last ye...
The market was not sure of how to react to its results. The stock went down from its previous close ofRs 814, to a low of ...
CompetitorCompetition Landscape – Internet                       Rev (Rs.Cr)         Airtel RMS %                         ...
Reliance: Reliance‟s end to end leased line is delivered through its state of the art optical fibre networkwith its unique...
TELECOM INDUSTRY   The telecom sector has been one of the fastest growing sectors in the Indian economy in the past 4years...
At a time when global telecom majors are struggling to cope with their losses and the rollout of 3Gnetworks, which has bee...
large number of manufacturing units been set up in the country. As a result most of the equipment usedin telecom area is b...
a licensee, between two or more service providers, between a service provider and a group ofconsumers, and to hear and dis...
National Long DistanceNational Long Distance opened for private participation. The Government announced on 13.08.2000 theg...
spectrum and possession of wireless telegraphy equipment are payable separately. At present 24 ILDservice providers (22 Pr...
approximately 0.2 million villages which where hitherto deprived of the same. As on 30th June 2010,7183 shared towers have...
grant of licence of Internet services on non-exclusive basis. Any Indian company with a maximumforeign equity of 74% is el...
Departments of Education are very important to carry the advantage of broadband services to the usersparticularly in rural...
FDI up to 74% (49% under automatic route) is also permitted for the following: - Radio Paging Service Internet Service Pro...
100% Foreign Direct Investment (FDI) is allowed through automatic route for manufacturing oftelecom equipments. Payments f...
Further, Mobile Gramin Sanchar Sewak Scheme (GSS) a mobile Public Call Office (PCO) service isprovided at the doorstep of ...
Rising demand for a wide range of telecom equipment, particularly in the area of mobiletelecommunication, has provided exc...
TCOEs Centers     Sr.         Associate                            Work                                    Sponsor    No. ...
Research & DevelopmentIndia has proven its dominance as a technology solution provider. Efforts are being continuously mad...
3G & Broadband Wireless Services (BWA)The government has in a pioneering decision, decided to auction 3G & BWA spectrum. T...
Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.). Forimplementing the service. MNP is...
8. International Bandwidth Facilitating availability of adequate international bandwidth at competitive prices to drive IT...
3 RESEARCH METHODOLOGIES 3.1.1 Research Design:         As we need to find out the scope of Manage ILP (Data Product) for ...
3.1.4 Data Collection Instrument (Questionnaire)     We have prepared questionnaire to find out which plan of internet doe...
ILP,DSL,LL             Manag ILP,3gDongals                      PRI,GSM,Landlinee 3.3 Processing and Analysis of Data 1) D...
Yes                                    No2) Name of the internet service provider for your organizations?(Purpose: This is...
3) In internet do you use broadband DSL or Lease Line or something else?(Purpose: To know target audience belonging of whi...
1 to 20                                        21 to 50                                        greater 505) Are you aware ...
6) Do you yourself manage internet in your organization or have outsource it to someone else?(Purpose: To understand how c...
DSL                                    512kbps                                    1mbps                                   ...
yes                                                               no9) Problems with?(Purpose:To understand pain area of c...
4 RESULTS & INTERPRETATION:The target audience for DSL is larger than form ILP.DSL customers are concerned for commercial ...
Porter’s 5 Force Model. Bargaining power of Buyers:     Lack of differentiation among Service Providers     Low switching ...
5 CONCLUSIONSThus we can conclude from the above data that most organization requiring speed greater than 2mbps(i.e. aroun...
6 LIMITATION OF THE PROJECT1.          Most of cooperate using two service provider for internet one as primary use and ot...
7 RECOMMENDATIONS7.1 Procedure for implementation:First we were given a corporate training for understanding the product f...
APPENDIX 1) Name :__________________ 2) Designation :___________________ 3) Contact of concerne person along with email ad...
BIBLIOGRAPHY Google was a great help in knowing about organization branches and employee strength. Map My India & Google M...
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Airtel

  1. 1. 1 INTRODUCTION 1.1 Company Profile Bharti Airtel was formerly known as Bharti Tele-venture Limited (BTVL) is India‟s largest GSMmobile operator with more than 100 million mobile subscribers as of 1-06 -2012. It also offers fixed lineservices and broadband services. It offers its mobile services under the Airtel brand and is headed bySunil Mittal. It has submarine cable landing station at Chennai, which connects the submarine cableconnecting Chennai and Singapore. It is called I2I.Airtel is the third largest mobile operator in the world in terms of subscriber base and has a commercialpresence in 20 countries and the Channel Island.Industry recognitionsAirtel was ranked the number 1 service brand and number 3 in the overall ranking in the annual brandequity‟s most trusted brands survey 2011.Airtel has been consistently awarded for its world classnetwork infrastructure and services. Airtel‟s achievements- “best carrier India award” ,”best globalwholesale carrier” and “best telecommunication transformation award by telecom world and Asiaawards.Airtel owns globally renowned recognitions for quality, processes and information security managementsystem (isms). Certifications: TL9000, ISO 9001-2000, ISO 27001, ISO20000 ITMSAirtel is the first GOLD CERTIFIED CISCO TELECOM PARTNERS AND ONE OF THE LARGESTMSCP PARTNER.Its area of operations includes:The Indian Subcontinent:o Airtel Bangla, in Bangladesho Airtel, in Indiao Airtel Sri Lanka, in Sri Lanka 1
  2. 2. o Airtel Africa which operates in 17 African countries: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. The British Crown Dependency islands of Jersey and Guernsey, under the brand name Airtel - Vodafone, through an agreement with Vodafone. Airtel operates in the following countries: Country Site Remarks Airtel Airtel Bangladesh had about 5.1 million customers Bangladesh Bangladesh at the end of June 2011 Airtel Burkina Faso is the dominant player with Burkina Airtel Burkina 1,433,000 customers representing 50% market Faso Faso share Airtel Chad is the #1 operator with 69% market Chad Airtel Chad share. Democratic Airtel is the market leader with almost 5 million Airtel DRC Republic of customers at the end of 2010. the Congo Airtel Gabon has 829,000 customers and its market Gabon Airtel Gabon share stood at 61%. Airtel Ghana had about 1.76 million customers at Ghana Airtel Ghana the end of 2010. Airtel is the market leader with almost 152.5 India Airtel million customers at the end of 2010. Airtel Kenya is the second largest operator and has Kenya Airtel Kenya 4 million customers. Airtel holds second place in the mobile telecom Airtel Madagascar market in Madagascar, has a 39% market share and Madagascar over 1.4 million customers. Airtel Malawi is the market leader with a market Malawi Airtel Malawi share of 72%. Airtel Niger is the market leader with a 68% market Niger Airtel Niger share.Rep of Congo Airtel Congo Airtel Congo is the leader with a 55%market share. 2
  3. 3. Rwanda Airtel Rwanda Airtel launched services in Rwanda on 30 March 2012. Airtel is the leading comprehensiveSeychelles telecommunications services providers with over Airtel Seychelles 55% market share of mobile market in Seychelles. Airtel Sri Lanka commenced operations on 12 Sri Airtel Sri Lanka January 2009. It had about 1.8 million mobileLanka customers at the end of 2010. Airtel Airtel Tanzania is the market leader with a 38% Tanzania Tanzania market share. Airtel Uganda stands as the #2 operator with a Uganda Airtel Uganda market share of 38%. Zambia Airtel ZambiaChannelIslands : Airtel operates in the Channel Islands under the AirtelJersey and brand name Airtel–Vodafone through an agreement Vodafone with Vodafone.Guernsey†Jersey and Guernsey are British Crown Dependencies. They are not independent countries. Therefore,Airtel‟s country of operation is considered to be 19.MobileAirtel has nationwide presence, and is the 6th most valued brand according to an annual surveyconducted by Brand Finance and The Economic Times in 2010.On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution in India. Thelaunch is a result of a tie-up between Bharti Tele-Ventures Limited and Research In Motion (RIM).The Apple iPhone 3G was rolled out in India in 2008 by Airtel and Vodafone. However, high prices andcontract bonds discouraged consumers and it was not as successful as the iPhone is in other markets ofthe world. The Apple iPhone 4 was introduced on May 27, 2011 by Airtel and Aircel. 3
  4. 4. 3GOn May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the Indiangovernment 122.95 billion (US$ 2.45 billion) for spectrum in 13 circles, the most amount spent by anoperator in this auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, AndhraPradesh, Karnataka, Tamil Nadu, Uttar Pradesh (east), Rajasthan, West Bengal, Himachal Pradesh,Bihar, Assam, North East, and Jammu & Kashmir Airtel also operates 3G services in Maharashtra, Goa,Kanpur and Kolkata through an agreement with Vodafone and in Gujarat through an agreement withIdea This gives Airtel a 3G presence in 15 out of 22 circles in India.On September 20, 2010, Bharti Airtel said that it has given contracts to Ericsson India, Nokia SiemensNetworks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in thecountry. These vendors will plan, design, deploy and maintain 3G–HSPA (third generation, high speedpacket access) networks in 13 telecom circles where the company has won 3G licences. While BhartiAirtel has awarded network contracts for seven 3G circles to Ericsson India, NSN would managenetworks in three circles. Chinese telecom equipment vendor Huawei Technologies has been introducedas the third partner for three circles.On January 24, 2011, Airtel launched 3G services in Bangalore Karnataka its largest circle by revenue.With this launch, Airtel became the third private operator (fifth overall) to launch its 3G services in thecountry following Reliance Communications and Tata ( Docomo).On January 27, 2011, Airtel launched3G in Chennai and Coimbatore.On July 27, 2011 Airtel launched 3G in three major cities in Kerala (Trivandrum, Cochin and Calicut).Airtel plans to cover 1,500 cities across 13 circles by the end of March 2012. The company, which has3G licences for 13 circles, is also in talks with other service providers to roll out the services in theremaining 10 circles as part of its roaming offerings. 4
  5. 5. 4GOn 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtelpaid 33.1436 billion for spectrum in 4 circles: Maharashtra, Karnataka, Punjab and Kolkata. Thecompany was allocated 20 MHz of BWA spectrum in 2.3 GHz frequency band.Airtels TD-LTE network is built and operated by ZTE in Kolkata, Huawei in Karnataka, Ericsson inPunjab and Nokia Siemens Networks in Maharashtra.On 10 April 2012, Airtel launched 4G services using TD-LTE technology in Kolkata, becoming the firstcompany in India to offer 4G services. Airtel launched 4G in Bangalore on 7 May 2012. It will launchservices next in Pune and Chandigarh.Airtel MoneyAirtel has started a new m-commerce platform called Airtel Money with collaboration with Infosys. It islaunched on April 5th 2012, in Infosys Campus of Bangalore. Now with the help of Airtel money, userscan transfer money, pay bills and other financial transactions using mobile phone.1.2 Definition and purpose of the projectThe purpose of this project is to find out the various B2B target audience for the data products ManageILP (Internet Lease Port) and pitch them a sales call regarding the same which ultimately lead to sellalong with collecting information of their current Internet plan to which they are subscribe to.1.3 Scope and objectives of the project :The company wants to know that by adding value added services to existing services one can improvecustomer satisfaction and customer loyalty. The study also brings out the clear picture of customersperception regarding Manage ILP. The objective of company is to make its products and services visibleto B2B customers and gather information of post-paid services used by company for non-Airtel plan. 5
  6. 6. 1.4 Salient Contributions of the project:If are successful in finding potential customer of our product during our project than it will contributeto company income.1.5 Product line which we were told to cover in project: ILP :( Internet lease Port) ILP is simple, private and dedicated high speed internet connectivity to customer premise, ensuringhigh up times and low latency. Internet bandwidth is delivered to our customer through wired/wirelesslast mile access. Airtel Point of Presence (POP) is connected to the customer‟s premise over Airtelowned and operated wired lease line last mile. In case wired medium is not feasible at a particularlocation the bandwidth can also be delivered through WI-Max) (wireless last mile).The SLAcommitments are on the end link which ensures the desired levels of service availability to thecustomers at all time. Symmetric bandwidth means equal upload and download capacity of the link. Ifthe customers buy 1 Mbps symmetric Internet Bandwidth he gets 1 Mbps Upload and 1Mbps downloadcapacity. In case of asymmetric bandwidth the customer can get cost advantage by changing the 1:1ratio between upload and download capacities.Why Airtel internet? Largest integrated private class a telecom service provider with pan India footprint. Fully integrated player offering end to end solutions Comprehensive service portfolio across voice (fixed line and mobility), data and enterprise solutions. Extensive international optical fibres network, connecting over 50 countries and 5 continents with POP‟s in USA, Europe, India & APAC for full control on IP traffic. 24*7 customer care & support. 6
  7. 7. Wireless data –internet MPLS, NLD IPLC, VSAT ,Clod Computing 3G Dongles & Black berry services Audio video conferencing. Features ILP enables organizations to connect users on their LAN, simultaneously to internet. Symmetric internet access: ILP delivers guaranteed bandwidth 100% uplink and downlink Highly secure internet access medium. Supports application such as e-commerce, web application, ERP and video conferencing solutions. Useful for businesses that use internet servers for commercial and business activities. ILP can also be utilized to transfer large amount of data over the internet. Duly signed service level agreements to ensure high performanceAirtel Advantage: reliability Class A ISP having PAN India presence offers direct connectivity across geographies. Multiple output interface options available, fast Ethernet G.703 and V.35 International connectivity through two different routes: transatlantic and Trans – pacific, for best route provisioning ensures high uptimes and lower latency.Reach More than 120 POPs in strategic business locations Local loop agnostic (lease line/radio/V-sat/ Wi-Max)Manage ILP :( Internet Lease Port) Manage ILP is a pro active network in which we provide customer Cisco routers and which 24/7communicate with Airtel ISP about user experience as per SLA promised if any packet loss, bandwidth 7
  8. 8. related problem or internet connecting wire from outside i.e. outside customers premises is damage isdetected than Airtel comes to know about the problem first before customers facing the problem itself.We have response time of 2 hour.Leased Line: Leased lines (or private lines) are point-to point dedicated circuits, provided on Airtel NationalLong Distance Backbone.In today‟s communication dependents environment, it is not enough to be connected but also to stayconnected. Business continuity is fast becoming a must have for every Enterprise client. A permanenttelephone connection between two points set up by a telecommunications common carrier. Typically,leased lines are used by businesses to connect geographically distant offices. Unlike normal dial-upconnections, a leased line is always active. The fee for the connection is a fixed monthly rate. Theprimary factors affecting the monthly fee are distance between end points and the speed of the circuit.Because the connection doesnt carry anybody elses communications, the carrier can assure a givenlevel of quality.For example, a T-1 channel is a type of leased line that provides a maximum transmission speed of1.544 Mbps. You can divide the connection into different lines for data and voice communication or usethe channel for one high speed data circuit. Dividing the connection is called multiplexing. 8
  9. 9. PRI:The Integrated Services Digital Network (ISDN) prescribes two levels of service, the Basic RateInterface (BRI), intended for the homes and small enterprises, and the Primary Rate Interface (PRI), forlarger applications. Both rates include a number of B-channels and a D-channel. Each B-channel carriesdata, voice, and other services. The D-channel carries control and signaling information. The Basic RateInterface consists of two 64-kbit/s B-channels and one 16-kbit/s D-channel.The Primary Rate Interface (PRI) consists of 23 64-kbit/s B-channels and one 64-kbit/s D-channel usinga T1 line, often referred to as "23B + D", (North American and Japanese standard) or 30 B-channels andone D-channel using an E1 line (Europe/rest of world). A T1 Primary Rate Interface user would haveaccess to a 1.472-Mbit/s data service. An E1 Primary Rate Interface user would have access to a 1.920Mbit/s data service Larger connections are possible using PRI pairing. A dual PRI could have 24+23=47 B-channels and 1 D-channel (often called "47B + D"), but more commonly has 46 B-channels and 2D-channels thus providing a backup signaling channel. The concept applies to E1s as well and both caninclude more than 2 PRIs. Normally, no more than 2 D-channels are provisioned as additional PRIs areadded to the group.Increasingly, leased lines are being used by companies, and even individuals, for Internet access becausethey afford faster data transfer rates and are cost-effective if the Internet is used heavily. 9
  10. 10. 2 LITERATURE REVIEWOnline journal for Bharti Airtel performance July 23, 2009,Bharti Airtels results tell a different story, based on whether you compare it with the previous quarter orJune 2008. Its performance seems to have improved compared to March but has deteriorated whencompared to a year ago. It does appear that Bhartis operating performance in 2009-10 will be lower,compared to the previous year. Bharti Airtels cost of doing business went up sharply, lowering its operating profitability during thequarter. If the telecom major still reported a sharp jump in its net profits, it was primarily due to non-operating income. But its core business of providing mobile services is doing extremely well, with theother businesses like telemedia, enterprise services and others like DTH. HighlightsComparisons has been done with June 2008 quarter, using US GAAP Financials. Wherever previousquarter financials have been used, it is mentioned separately .Bharti Airtel‟s sales during the June 2009 quarter rose by 17.2% to Rs 9,942 crore, with services incomerising by 16%. Overall sales grew by 1.2% over the previous quarter. Net profit increased by 25% to Rs2,565 corer.The telecom companys operating expenditure has undergone change, chiefly due to higher license fees(up 19%), sharply higher network costs (up by 47.4%) and employee costs (up by 17%), thereby 10
  11. 11. nullifying the effect of lower access charges (down by 8%). On the positive side, while expenses are upby 19% over last years level, it is down by 4% compared to the previous quarter. Depreciation has alsoshot up sharply, up by 40%, due to higher capital expenditure. During June 2009, capex was Rs 2,709crore and the balance sheet figure of property and equipment has increased by 22% as of June 2009,over last year.Revenues from mobile services have increased by 19% while segment profit increased by 23%. This isthe biggest segment, contributing to 83% of sales. But revenues from the second biggest segment,enterprise services grew by only 8% but still managed to grow segment profit by 18%. In telemediaservices, revenues grew by 7% but segment profits declined by 10%.But among segments, its new businesses have been running up losses, mainly on the DTH front. Itincurred a segment loss of Rs 278 crore in others, which pulled down margins.On the business front, net additions to mobile subscribers grew by 2% over the March 2009 quarter. Butthe mobile subscriber base has increased by 9% on a sequential basis. In line with past trends, Bhartisaverage revenue per user has been going down. The decline is quite severe in the June 2009 quarter, atRs 278 per user compared to Rs 305 in the previous quarter and Rs 350 a year ago. The composition ofBhartis incremental subscriber base is largely coming from non-census towns, which could explain whythe per user revenue is headed down. The companys non voice revenue in mobile services contributed9.3% to revenues, same as the previous quarter.The company has been pointing towards strong volume growth as an indicator of the strength of itsbusiness. Mobile minutes grew by 34% during the quarter while total minutes billed grew by 31%.Telemedia services saw a decline in volumes.In sum, Bhartis profitability during the quarter has been affected by higher costs and depreciationthough this was visible in the March 2009 quarter too. Its operating profit grew by 17% but depreciationcosts took away nearly 9 percentage points off that growth. Still, a sharp jump in interest income (asdefined by Bharti) due to derivative income and exchange fluctuations, contributed to a 25% increase innet profit. 11
  12. 12. The market was not sure of how to react to its results. The stock went down from its previous close ofRs 814, to a low of Rs 795 and from there settled higher at Rs 823, down 1%. The company hadindicated a capex plan of $2.2bn for 2009-10, and that will keep up the pressure on its depreciationoutgo. If the derivative income and exchange fluctuations are not around, the pressure will reflect in itsnet profits as well 12
  13. 13. CompetitorCompetition Landscape – Internet Rev (Rs.Cr) Airtel RMS % RMS FY 10-11 320 14% 16% 14% 310 313 10% 262 12% Others Sify Tata 300 16% 36% 10% Tulip 6% 290 6% 296 8% 3% 232 BSL/MTNL 6% 14% 280 Airtel 282 143 Reliance 4% 11% 270 14% 2% 260 0% 2009-10 2010-11 2011-12 Total Internet Mkt 232Cr Data Source – Frost & Sullivan research data Airtel RMS Grew by 4% in FY 10-11 Reliance Growth has been stagnant Tata RMS dipped by 3%+ due to large base and price revisions. 13
  14. 14. Reliance: Reliance‟s end to end leased line is delivered through its state of the art optical fibre networkwith its unique self- healing survivable architecture. Unlike Airtel reliance do not use Semewe 4 it usesflag which have its own advantage and dis-advantage. Advantage is that flag is fully owned by relianceand reliance do not have to share with other ISP. Disadvantage is that if flag fails than reliance do nothave any other alternative connection .In case of any problem with Semewe 4 there is a bake up ofSemewe 3.Tata: It is Airtel „s largest competitor and have high market share it has some tie up with BSNL sowhile doing sales pitch they try to convince customer that some of their line is used by BSNL is ofTata. They are aggressive competitor. Tata own and operate its own network of globe-spanning terrestrial and subsea cables. Tata reachthe major business and financial canters worldwide, as well as over 100 locations in India and counting.Customer gets a seamless network from a single global service provider, with the capacity andflexibility to meet customers‟ needs. Tata will work with customer to develop an access package that can grow seamlessly as yourbusiness evolves. Tata partnership capabilities include fast provisioning, end-to-end or customizedSLAs, and an active build plan that increases our coverage every week.MTNL: Mtnl customer are loyal to Mtnl those who are not facing any problem with it. Main advantageof Mtnl is that it‟s locally present of telecom engineer. If any problem associated with Mtnl happensthan they have their contact number of that local engineer, so a sense of trust is developed inorganization using DSL of Mtnl. 14
  15. 15. TELECOM INDUSTRY The telecom sector has been one of the fastest growing sectors in the Indian economy in the past 4years. This has been witnessed due to strong competition that has brought down tariffs as well assimplification of policy environment that has promoted healthy competition among various players. The mobile sector alone has been growing rapidly and has emerged as the fastest growing market inthe whole worlds. Currently of a size nearing 70 million (GSM and CDMA), this sector is expected toreach a size of nearly 200 million subscribers by financial year 2008. The government has eased the rules regarding inter circle and intra circle mergers. This has led to aslew of mergers and acquisitions in the recent past. Also as the sector is moving closer to maturity,further consolidation is a reality and this will lead to the survival of more profitable players in thissegment In order to further promote the use of Internet in the country the government is taking proactivesteps to develop this sector with the help of the various players in this segment. For this purpose, the use of broadband technology is being mooted and this will go a long way inimproving the productivity of the Indian economy as well as turn out to be the next big opportunity fortelecom companies after the mobile communications segment Non-voice services and VAS are the goldmines. The big takeoff is expected with the rollout of 3G services in early 2007, once the spectrumissues are sorted out. Internet users base fast reaching near the English speaking population base. Local language andcontent required for further growth. Infrastructure equipment cost is down to a fraction of whatprevailed just a few years ago. Operators can plan better expansion plan now Increased viability for the operators to expand tosemi-urban and rural markets, hence, accelerate growth further. It‟s not without reason that India istipped to be the world‟s third-largest economy by 2050! No wonder if it happens much earlier. Investorscan look to capture the gains of the Indian telecom boom and diversify their operations outsidedeveloped economies that are marked by saturated telecom markets and lower GDP growth rates. 15
  16. 16. At a time when global telecom majors are struggling to cope with their losses and the rollout of 3Gnetworks, which has been a non-starter for close to a year now; India, with its telecom success story,represents an attractive and lucrative destination for investment.Indian Telecom Sector The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth andmodernization of various sectors of the economy. Indian telecommunication sector has undergone amajor process of transformation through significant policy reforms, particularly beginning with theannouncement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999.Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation inthe last decade. It has achieved a phenomenal growth during the last few years and is poised to take abig leap in the future also.Status of Telecom SectorThe Indian Telecommunications network with 621 million connections (as on March 2010) is the thirdlargest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growthis possible due to various proactive and positive decisions of the Government and contribution of bothby the public and the private sectors. The rapid strides in the telecom sector have been facilitated byliberal policies of the Government that provides easy market access for telecom equipment and a fairregulatory framework for offering telecom services to the Indian consumers at affordable prices.Presently, all the telecom services have been opened for private participation. The Government hastaken following main initiatives for the growth of the Telecom Sector:LiberalizationThe process of liberalization in the country began in the right earnest with the announcement of the NewEconomic Policy in July 1991. Telecom equipment manufacturing was de-licensed in 1991 and valueadded services were declared open to the private sector in 1992, following which radio paging, cellularmobile and other value added services were opened gradually to the private sector. This has resulted in 16
  17. 17. large number of manufacturing units been set up in the country. As a result most of the equipment usedin telecom area is being manufactured within the country. A major breakthrough was the clearenunciation of the government‟s intention of liberalizing the telecom sector in the National TelecomPolicy resolution of 13th May 1994.National Telecom Policy 1994In 1994, the Government announced the National Telecom Policy which defined certain importantobjectives, including availability of telephone on demand, provision of world class services atreasonable prices, improving India‟s competitiveness in global market and promoting exports, attractiveFDI and stimulating domestic investment, ensuring India‟s emergence as major manufacturing / exportbase of telecom equipment and universal availability of basic telecom services to all villages. It alsoannounced a series of specific targets to be achieved by 1997.Telecom Regulatory Authority of India (TRAI)The entry of private service providers brought with it the inevitable need for independent regulation.The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20thFebruary 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, toregulate telecom services, including fixation/revision of tariffs for telecom services which were earliervested in the Central Government.TRAIs mission is to create and nurture conditions for growth of telecommunications in the country inmanner and at a pace, which will enable India to play a leading role in emerging global informationsociety. One of the main objectives of TRAI is to provide a fair and transparent policy environment,which promotes a level playing field and facilitates fair competition. In pursuance of above objectiveTRAI has issued from time to time a large number of regulations, orders and directives to deal withissues coming before it and provided the required direction to the evolution of Indian telecom marketfrom a Government owned monopoly to a multi operator multi service open competitive market. Thedirections, orders and regulations issued cover a wide range of subjects including tariff, interconnectionand quality of service as well as governance of the Authority.The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing aTelecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatoryand disputes functions from TRAI. TDSAT was set up to adjudicate any dispute between a licensor and 17
  18. 18. a licensee, between two or more service providers, between a service provider and a group ofconsumers, and to hear and dispose of appeals against any direction, decision or order of TRAI.New Telecom Policy 1999The most important milestone and instrument of telecom reforms in India is the New Telecom Policy1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, tobecome effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms,contemplating the opening up of all the segments of the telecom sector for private sector participation. Itclearly recognized the need for strengthening the regulatory regime as well as restructuring thedepartmental telecom services to that of a public sector corporation so as to separate the licensing andpolicy functions of the Government from that of being an operator. It also recognized the need forresolving the prevailing problems faced by the operators so as to restore their confidence and improvethe investment climate.Key features of the NTP 99 include: Strengthening of Regulator. National long distance services opened to private operators. International Long Distance Services opened to private sectors. Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of problems of existing operators envisaged. Direct interconnectivity and sharing of network with other telecom operators within the service area was permitted. Department of Telecommunication Services (DTS) corporatized in 2000. Spectrum Management made transparent and more efficient.All the commitments made under NTP 99 have been fulfilled; each one of them, in letter and spirit,some even ahead of schedule, and the reform process is now complete with all the sectors intelecommunications opened for private competition. 18
  19. 19. National Long DistanceNational Long Distance opened for private participation. The Government announced on 13.08.2000 theguidelines for entry of private sector in National Long Distance Services without any restriction on thenumber of operators. The DOT guidelines of license for the National Long Distance operations werealso issued.Highlights - NLD Guidelines Total foreign equity (including equity of NRIs and international funding agencies) must not exceed74%. Promoters must have a combined net worth of Rs.25 million. Private operators will have to enter into an arrangement with fixed-service providers within a circle fortraffic between long-distance and short-distance charging centers. Seven years time frame set for rollout of network, spread over four phases. Any shortfall in networkcoverage would result in encashment and forfeiture of bank guarantee of that phase. Private operators to pay one-time entry fee of Rs.25 million plus a Financial Bank Guarantee (FBG) ofRs.200 million. The revenue sharing agreement would be to the extent of 6%. Private operators allowed to set up landing facilities that access submarine cables and use excessbandwidth available. License period would be for 20 years and extendable by 10 years.International Long DistanceIn the field of international telephony, India had agreed under the GATS to review its opening up in2004. However, open competition in this sector was allowed with effect from April 2002 itself. There isnow no limit on the number of service providers in this sector. The licence for ILD service is issuedinitially for a period of 20 years, with automatic extension of the licence by a period of 5 years. Theapplicant company pays one-time non-refundable entry fee of Rs.25 million plus a bank guarantee ofRs.250 million, which will be released on fulfillment of the roll out obligations. The annual license feeincluding USO contribution is @ 6% of the Adjusted Gross Revenue and the fee/royalty for the use of 19
  20. 20. spectrum and possession of wireless telegraphy equipment are payable separately. At present 24 ILDservice providers (22 Private and 2 Public Sector Undertaking) are there. As per current roll outobligations under ILD license, the licensee undertakes to fulfill the minimum network roll outobligations for installing at least one Gateway Switch having appropriate interconnections with at leastone National Long Distance service licensee. There is no bar in setting up of Point of Presence (PoP) orGateway switches in remaining location of Level I. Preferably, these PoPs should conform to OpenNetwork Architecture (ONA) i.e. should be based on internationally accepted standards to ensureseamless working with other Carriers Network.Universal Service Obligation FundAnother major step was to set up the Universal Service Obligation Fund with effect from April 1, 2002.An administrator was appointed for this purpose. Subsequently, the Indian Telegraph (Amendment) Act,2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by bothHouses of Parliament in December 2003. The Fund is to be utilized exclusively for meeting theUniversal Service Obligation and the balance to the credit of the Fund will not lapse at the end of thefinancial year. Credits to the Fund shall be through Parliamentary approvals. The Rules foradministration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on26.03.2004.The resources for implementation of USO are raised through a Universal Service Levy (USL) which haspresently been fixed at 5% of the Adjusted Gross Revenue (AGR) of all Telecom Service Providersexcept the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. Inaddition, the Central Govt. may also give grants and loans. An Ordinance was promulgated on30.10.2006 as the Indian Telegraph (Amendment) Ordinance 2006 to amend the Indian Telegraph Act,1885 in order to enable support for mobile services, broadband connectivity, general infrastructure andpilot project for new technological developments in rural and remote areas of the country. Subsequently,an Act has been passed on 29.12.2006 as the Indian Telegraph (Amendment) Act 2006 to amend theIndian Telegraph Act, 1885.USFO has initiated action to bring mobile services within the ambit of Universal Service ObligationFund (USOF) activities. Under this initiative, 7387 mobile infrastructure sites are being rolled out, in thefirst phase, across 500 districts and 27 states of India. This scheme will provide mobile services to 20
  21. 21. approximately 0.2 million villages which where hitherto deprived of the same. As on 30th June 2010,7183 shared towers have been set up under the First Phase of the scheme. The USOF of DOT hasproposed to set up about 10,128 additional towers in order to extend the mobile coverage in otheruncovered areas under the Second Phase of the Scheme.Unified Access ServicesUnified access license regime was introduced in November 2003. Unified Access Services operators arefree to provide, within their area of operation, services, which cover collection, carriage, transmissionand delivery of voice and/or non-voice messages over Licensees network by deploying circuit, and/orpacket switched equipment. Further, the Licensee can also provide Voice Mail, AudioNet services,Video Conferencing, Videotext, E-Mail, Closed User Group (CUG) as Value Added Services over itsnetwork to the subscribers falling within its service area on non-discriminatory basis. The country isdivided into 23 Service Areas consisting of 19 Telecom Circle and 4 Metro Service Areas for providingUnified Access Services (UAS). The licence for Unified Access Services is issued on non-exclusivebasis, for a period of 20 years, extendable by 10 years at one time within the territorial jurisdiction of alicensed Service Area. The licence Fee is 10%, 8% & 6% of Adjusted Gross Revenue (AGR) for Metroand Category `A, Category `B and Category `C Service Areas, respectively. Revenue and the fee/royaltyfor the use of spectrum and possession of wireless telegraphy equipment are payable separately. Thefrequencies are assigned by WPC wing of the Department of Telecommunications from the frequencybands earmarked in the applicable National Frequency Allocation Plan and in coordination with varioususers subject to availability of scarce spectrum.Internet Service Providers (ISPs)Internet service was opened for private participation in 1998 with a view to encourage growth ofInternet and increase its penetration. The sector has seen tremendous technological advancement for aperiod of time and has necessitated taking steps to facilitate technological ingenuity and provision ofvarious services. The Government in the public interest in general and consumer interest in particular,and for proper conduct of telegraph and telecom services has decided to issue the new guidelines for 21
  22. 22. grant of licence of Internet services on non-exclusive basis. Any Indian company with a maximumforeign equity of 74% is eligible for grant of licence.Broadband Policy 2004 onwardsRecognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement inquality of life through societal applications including tele-education, tele-medicine, e-governance,entertainment as well as employment generation by way of high-speed access to information and webbased communication; Government has announced Broadband Policy in October 2004. The mainemphasis is on the creation of infrastructure through various technologies that can contribute to thegrowth of broadband services. These technologies include optical fibre, Asymmetric Digital SubscriberLines (ADSL), cable TV network; DTH etc. Broadband connectivity has been defined as Always Onwith the minimum speed of 256 kbps. It is estimated that the number of broadband subscribers would be20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and indoor usageof low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has been de-licensed. The useof low power indoor systems in 5.15-5.35 GHz and 5.725-5.875 GHz bands has also been de-licensed inJanuary 05. The SACFA/WPC clearance has been simplified. The setting up of National InternetExchange of India (NIXI) would enable bringing down the international bandwidth cost substantially,thus making the broadband connectivity more affordable.The prime consideration guiding the Policy includes affordability and reliability of Broadband services,incentives for creation of additional infrastructure, employment opportunities, induction of latesttechnologies, national security and brings in competitive environment so as to reduce regulatoryinterventions.By this new policy, the Government intends to make available transponder capacity for VSAT servicesat competitive rates after taking into consideration the security requirements. The service providerspermitted to enter into franchisee agreement with cable TV network operators. However, the Licenseeshall be responsible for compliance of the terms and conditions of the licence. Further in the case ofDTH services, the service providers permitted to provide Receive-Only-Internet Service. The role ofother facilitators such as electricity authorities, Departments of ITs of various State Governments,Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare, 22
  23. 23. Departments of Education are very important to carry the advantage of broadband services to the usersparticularly in rural areas.Target has been set for 20 million broadband connections by 2010 and providing Broadbandconnectivity to all secondary and higher secondary schools, public health institutions and panchayats by2010.In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be provided fromabout 20,000 existing exchanges in rural areas having optical fiber connectivity. Community ServiceCenters, secondary schools, banks, health centers, Panchayats, police stations etc. can be provided withthis connectivity in the vicinity of above-mentioned 20,000 exchanges in rural areas. DOT will besubsidizing the infrastructure cost of Broadband network through support from USO Fund to ensure thatBroadband services are available to users at affordable tariffs.Tariff ChangesThe Indian Telecom Sector has witnessed major changes in the tariff structure. The TelecommunicationTariff Order (TTO) 1999, issued by regulator (TRAI), had begun the process of tariff balancing with aview to bring them closer to the costs. This supplemented by Calling Party Pay (CPP), reduction inADC and the increased competition, has resulted in a dramatic fall in the tariffs. ADC has beenabolished for all calls from1st October 2008.The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down from US$ 0.67per minute to US$ 0.02 per minute in 2009. The International Long Distance tariff from US$ 1.36 perminute in 2000 to US$ 0.16 per minute in 2009 for USA, Canada & UK. The mobile tariff for local callshas reduced from US$0.36 per minute in 1999 to US$ 0.009 - US$ 0.04 per minute in 2009.TheAverage Revenue per User of mobile is between US$ 5.06 - US$ 7.82 per monthForeign Direct Investment (FDI) In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile PersonalCommunications by Satellite, Composite FDI permitted is 74% (49% under automatic route) subject togrant of license from Department of Telecommunications subject to security and license conditions.(para 5.38.1 to 5.38.4 of consolidate FDI Policy circular 1/2010 of DIPP) 23
  24. 24. FDI up to 74% (49% under automatic route) is also permitted for the following: - Radio Paging Service Internet Service Providers (ISPs) FDI up to 100% permitted in respect of the following telecom services: - Infrastructure Providers providing dark fiber (IP Category I); Electronic Mail; and Voice MailSubject to the conditions that such companies would divest 26% of their equity in favor of Indian publicin 5 years, if these companies were listed in other parts of the world. In telecom manufacturing sector100% FDI is permitted under automatic route. The Government has modified method of calculation of Direct and Indirect Foreign Investment insector with caps(p 4.1 of consolidate FDI Policy circular 1/2010 of DIPP) and have also issuedguidelines on downstream investment by Indian Companies. (4.6 of consolidate FDI Policy circular1/2010 of DIPP) Guidelines for transfer of ownership or control of Indian companies in sectors with caps fromresident Indian citizens to non-resident entities have been issued (4.2.3 of consolidate FDI Policycircular 1/2010 of DIPP)Investment Opportunities and IncentivesAn attractive trade and investment policy and lucrative incentives for foreign collaborations have madeIndia one of the world‟s most attractive markets for the telecom equipment suppliers and serviceproviders. No industrial license required for setting up manufacturing units for telecom equipment. 24
  25. 25. 100% Foreign Direct Investment (FDI) is allowed through automatic route for manufacturing oftelecom equipments. Payments for royalty, lump sum fee for transfer of technology and payments for use oftrademark/brand name on the automatic route. Foreign equity of 74% (49 % under automatic route) permitted for telecom services - basic, cellularmobile, paging, value added services, NLD, ILD, ISPs - and global mobile personal communications bysatellite. Full reparability of dividend income and capital invested in the telecom sector.Network ExpansionThe telecom sector has shown robust growth during the past few years. It has also undergone asubstantial change in terms of mobile versus fixed phones and public versus private participation. Thefollowing table shows the growth trend of telecom sector from last five years:The number of telephones has increased from 54.63 million as on 31.03.2003 to 621.28 million as on31.03.2010. Wireless subscribers increased from 13.3 million as on 31.03.2003 to 584.32 million as on31.03.2010. Whereas, the fixed line subscribers decreased from 41.33 million in 31.03.2003 to 36.95million in 31.03.2010. The broadband subscribers grew from a meagre 0.18 million to 8.76 million ason 31.03.2010.Trend in Tele-densityTele-density in the country increased from 5.11% in 2003 to 52.74 % in March 2010. In the rural areaTele-density increased from 1.49% in Mar 2003 to 24.31% in March 2010 and in the urban areas it isincreased from 14.32% in Mar 2003 to119.45% in March 2010.This indicates a rising trend of Indiantelecom subscribers.Rural TelephonyApart from the 200.77million fixed and WLL on March 2010 provided in the rural areas, 570000uncovered VPTs have been provided as on March 2010. Thus, 96% of the villages in India have beencovered by the VPTs. More than 3 lakh PCOs are also providing community access in the rural areas. 25
  26. 26. Further, Mobile Gramin Sanchar Sewak Scheme (GSS) a mobile Public Call Office (PCO) service isprovided at the doorstep of villagers. At present, 2772 GSSs are covering 12043 villages. Also, toprovide Internet service, Sanchar Dhabas (Internet Kiosks) have been provided in more than 3500 BlockHeadquarters out of the total 6337 Blocks in the country. The target of 80 million rural connections by2010 have already met during year 2008 itself. USOF subsidy support scheme is also being utilized forsharing wireless infrastructure in rural areas with about 19,000 towers by 2010.Performance of telecom equipment manufacturing sectorAs a result of Government policy, progress has been achieved in the manufacturing of telecomequipment in the country. There is a significant telecom equipment-manufacturing base in the countryand there has been steady growth of the manufacturing sector during the past few years. The figures forproduction and export of telecom equipment are shown in table given below: (Rs. in crore) Year Production Export 2002- 03 14400 402 2003- 14000 04 250 2004- 05 16090 400 2005- 06 17833 1500 2006- 07 23656 1898 2007- 41270 8131 08 2009- 48800 11000 10 60000 19500 20012- 13 (projected (projected) 26
  27. 27. Rising demand for a wide range of telecom equipment, particularly in the area of mobiletelecommunication, has provided excellent opportunities to domestic and foreign investors in themanufacturing sector. The last two years saw many renowned telecom companies setting up theirmanufacturing base in India. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur.Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens Networks haveset up their manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobilephones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ inChennai. Other major companies like Foxcom, Aspcom, and Solectron etc have decided to set up theirmanufacturing bases in India.The Government has already set up Telecom Equipment and Services Export Promotion Council andTelecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel,Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India isexpected to be a manufacturing hub for the telecom equipment.OpportunitiesIndia offers an unprecedented opportunity for telecom service operators, infrastructure vendors,manufacturers and associated services companies. A host of factors are contributing to enlargedopportunities for growth and investment in telecom sector: An expanding Indian economy with increased focus on the services sector Population mix moving favorably towards a younger age profile Urbanization with increasing incomesInvestors can look to capture the gains of the Indian telecom boom and diversify their operations outsidedeveloped economies that are marked by saturated telecom markets and lower GDP growth rates. Inflowof FDI into India‟s telecom sector during April 2000 to Feb. 2010 was about Rs 405,460 million. Also,more than 8 per cent of the approved FDI in the country is related to the telecom sector. 27
  28. 28. TCOEs Centers Sr. Associate Work Sponsor No. Institute Assigned Next Generation Vodafone Essar IIT Network 1 & Texas Kharagpur (NGN) & Instruments Network Technology Telecom 2 IIT Delhi Bharti Airtel Technology & Management Information IISC Security & (Indian Aircel & Texas Disaster 3 Institute of instrument Management Science), of Bangalore Infrastructure Technology Integration, BSNL & 4 IIT Kanpur Multimedia & Alphion Computational Mathematics Telecom IIT Reliance 5 Infrastructure Chennai Communication & Energy IIT Tata Rural 6 Mumbai Teleservices Applications Policy, IIM 7 Idea Cellular Regulation, Ahmedabad Governance, 28
  29. 29. Research & DevelopmentIndia has proven its dominance as a technology solution provider. Efforts are being continuously madeto develop affordable technology for masses, as also comprehensive security infrastructure for telecomnetwork. Research is on for the preparation of tested infrastructure for enabling interoperability in NextGeneration Network. It is expected that the telecom equipment R & D shall be doubled by 2010 frompresent level of 15%. Modern technologies inductions are being promoted. Pilot projects on the existingand emerging technologies have been undertaken including WiMax, 3G etc. Emphasis is being given totechnologies having potential to improve rural connectivity. Also to beef up R&D infrastructure in thetelecom sector and bridge the digital divide, cellular operators, top academic institutes and theGovernment of India together set up the Telecom Centers of Excellence (COEs). The main objectives ofthe COEs are as follows: Achieve Telecom Vision 2010 that stipulates a definite growth model and take it beyond. Secure Information Infrastructure that is vital for countries security Capacity Building through Knowledge for a sustained growth. Support Planned Predictive Growth for stability. Reduce Rural Urban Digital Divide to reach out to masses. Utilize available talent pool and create environment for innovation. Management of National Information Infrastructure (NII) during Disaster Cater the requirement of South East Asia as Regional Telecom Leader To achieve these objectives seven Centre of Excellences in various field of Telecom have been setup with the support of Government and the participation of private/public telecom operators assponsors, at the selected academic institutions of India. The details of COEs are enumeratedbelow: - 29
  30. 30. 3G & Broadband Wireless Services (BWA)The government has in a pioneering decision, decided to auction 3G & BWA spectrum. The broadpolicy guidelines for 3G & BWA have already been issued on 1stAugust 2008 and allotment of spectrumhas been planned through simultaneously ascending e-auction process by a specialized agency. Newplayers would also be able to bid thus leading to technology innovation, more competition, faster rollout and ultimately greater choice for customers at competitive tariffs.The 3G will allow telecom companies to offer additional value added services such as high resolutionvideo and multi media services in addition to voice, fax and conventional data services with high datarate transmission capabilities. BWA will become a predominant platform for broadband roll outservices. It is also an effective tool for undertaking social initiatives of the Government such as e-education, telemedicine, e-health and e-Governance. Providing affordable broadband, especially to thesuburban and rural communities is the next focus area of the Department.BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuring early roll outof 3G & WiMax services in the country. They will pay the same price for the spectrum as discoveredthrough the auction. While, honourable Prime Minister launched the MTNLs 3G mobile services on theinaugural function of India Telecom 2008 held on 11 th December 2008, BSNL launched its countrywide3G services from Chennai, in the southern Tamil Nadu state on 22nd February 2009.Mobile Number Portability (MNP)Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number whenthey switch from one access service provider to another irrespective of mobile technology or from onetechnology to another of the same or any other access service provider. The Government has announcedthe guidelines for Mobile Number Portability (MNP) Service Licence in the country on 1 st August 2008and has issued a separate Licence for MNP service on 20.03.2009. The Department ofTelecommunication (DoT) has already issued licences to two global companies (M/s Syniverse 30
  31. 31. Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.). Forimplementing the service. MNP is to be implemented in whole country in one go by 31.10.2010New Targets Set By the Government1. Network expansion 900 million connections by the year 20202. Rural telephony 200 million rural subscribers by 2020 Reduce urban-rural digital divide from present 25:1 to 5:1 by 2015.3. Broadband20 million Broadband connections by 2020. Broadband with minimum speed of 1 mbps. Broadband coverage for all secondary & higher secondary schools and public health care centres by the end of year 2020. Broadband coverage for all Grampanchayats by the year 2020. Broadband on demand is every village by 2020.4. Manufacturing Making India a hub for telecom manufacturing by facilitating more and more telecom specific SEZs. Quadrupling production in 2020. Achieving exports of 10 billion during 11th Five year plan.5. Research & Development Pre-eminence of India as a technology solution provider. Comprehensive security infrastructure for telecom network. 31
  32. 32. 8. International Bandwidth Facilitating availability of adequate international bandwidth at competitive prices to drive ITES sectorat faster growth.Nature of Field Work(Interviews face to face, including sample size for now is area are allocated by Airtel to each user.)Target datesThere is no target date we have to send daily report of our field work to our project guide via email anda weekly meeting with project mentor. 32
  33. 33. 3 RESEARCH METHODOLOGIES 3.1.1 Research Design: As we need to find out the scope of Manage ILP (Data Product) for SME target audience inMumbai town and Suburbs so the research design is exploratory in nature. The data collected isqualitative and descriptive in nature by using survey .The study is done by following steps given below.1.To make understand the new product of Airtel called as managed ILP to potential customers‟ was our primary objective. 2 Find out other requirement of customer such as 3G Dongles, MPLS, PRI, DSL, point to point line, simple ILP, postpaid.DTH etc. 3 Finding out current operator from which they are taking service & detail information related to same. 4 Differentiating the market segments i.e. by Corporate, SME to potential user of Manage ILP/ILP, DSL, for data products.3.1.2 Data Collection Sources: All data collected was primary data that is by on field data. 3.1.3 Data Collection Methods: Through questionnaire and personal interview with IT Manager & Directors or proprietor of different organization. 33
  34. 34. 3.1.4 Data Collection Instrument (Questionnaire) We have prepared questionnaire to find out which plan of internet does the organisation uses,Lease internet port or Digital subscriber links along with any issue faced by them. We also gatheredname of internet service provider, and try to understand there internet setup.3.1.5 Sampling Plan: Nodes of building which have Airtel connection feasibility was given to us by Airtel and we weretold to cover all commercial building within one kilometre radius to that of the node & for any doubtoccurred before taking samples we were given telephone number of channel partner.3.1.6 Sampling: We need to fill the questionnaire from the person who deals with internet connection of hisorganization that is from a person like IT Manager. or from Admin person in absents of IT Manager. Sosampling here is Judgmental Sampling Techniques. Sample size was about 15 or more a day.3.2. Classification of Data: Classification of data mainly done on basis of DSL/ILP user, SME Corporate, Airtel & Non Airtelusers. 34
  35. 35. ILP,DSL,LL Manag ILP,3gDongals PRI,GSM,Landlinee 3.3 Processing and Analysis of Data 1) Do you use internet?(Purpose: This is basic question to know about company internet use) Internet use N.o of Org % Yes 180 90 No 20 10 Total 200 100 35
  36. 36. Yes No2) Name of the internet service provider for your organizations?(Purpose: This is a question to know about competitor market present as well as to know Airtelstand in market) N.o of Internet service provider Org % Airtel 45 25 Tata 38 21.1 Reliance 30 16.6 Tulip 2 1.1 Mtnl 55 30.5 other cable 10 5.5 Total 180 100 Airtel Tata Reliance Tulip Mtnl other cable 36
  37. 37. 3) In internet do you use broadband DSL or Lease Line or something else?(Purpose: To know target audience belonging of which segment DSL or ILP or other) N.o of %Internet used OrgDSL 146 81.3ILP 31 17.5Other 3 1.8Total 180 100 DSL ILP Other4) Number of PC are you using?(Purpose: This helps us to know about the background of the company like about its employeestrength) N.o ofNumber of PC Org %1 to 20 120 66.721 to 50 50 27.8greater 50 10 5.6Total 180 100 37
  38. 38. 1 to 20 21 to 50 greater 505) Are you aware of a new product in internet lease line port called Manage internet lease port?(Purpose: To know how much customers are aware about Airtels new product?) N.o % of Awareness of Manage Internet lease port Org Yes 22 12.2 No 158 87.8 Total 180 100 Yes No 38
  39. 39. 6) Do you yourself manage internet in your organization or have outsource it to someone else?(Purpose: To understand how company deals with internet related management) No . Of % Management of internet Org 17 94. Not outsource 0 5 Outsouce 10 5.5 18 100 Total 0 Not outsource Outsouce7) What is the speed of your connection?(Purpose: This is technical information that helps to know what is requirement of the companylike which speed have most demand for internet) Interne DS t Lease DSL ILP Speed of your connection L Port % % 512kbps 0 0 0 0 4.1 29. 1mbps 6 9 1 2mbp 90 7 61.1 23 34.8 48. greater tham 2mbps 50 15 1 14 100 100 Total 6 31 39
  40. 40. DSL 512kbps 1mbps 2mbp greater tham 2mbpsInternet Lease Line 512kbps 1mbps 2mbp greater tham 2mbps8) Any problem you are facing with your current service provider? No. of % Problem facing with current service provider Org Yes 15 8.3 No 165 91.7 total 180 100 40
  41. 41. yes no9) Problems with?(Purpose:To understand pain area of coustomer using internet) No. of % Problems Org payment and billing 3 20 connection 9 60 after sales service 3 20 Total 15 100 payment and billing connection after sales service 41
  42. 42. 4 RESULTS & INTERPRETATION:The target audience for DSL is larger than form ILP.DSL customers are concerned for commercial pricing than for the quality serviceprovided like in ILP so it is difficult to convert them into user of Manage ILP.Mostly customers in DSL are preferring 2mbps plan which is mostly Mtnl users.The organization depending upon third party for maintenance of its connection can bemajor client for manage ILP. 42
  43. 43. Porter’s 5 Force Model. Bargaining power of Buyers: Lack of differentiation among Service Providers Low switching costs for post-paid with availability of mobile number portability. Bargaining power of Suppliers: Network maintenance: Alcatel lucent, Information Technology: IBM Call Center: Telecaller are outsourced Threat of New Entrants Rapid change in Technology, High Infrastructure Setup cost Spectrum Availability issues Huge License Fees paid to government. Threats from substitution: Landline, for post-paid mobile phone, but Land line dominated by MTNL. DSL taking market for ILP, Using two service ILP provider instead of Manage ILP Social Networking site and messenger for post & prepaid. Rivalry among competitors Cut throat Competition. There is high fix cost for Manage ILP which needs to be recover 43
  44. 44. 5 CONCLUSIONSThus we can conclude from the above data that most organization requiring speed greater than 2mbps(i.e. around 35% from above) uses DSL as a substitute for ILP which may be due to the cost of ILP. Forexample suppose an organization wants speed of 1mbps they opt for DSL 4mbps so that they can getspeed around 1mbps, which is more cost saving than going for 1mbps ILP.5.1 Salient conclusions from the work.Product awareness was created by us for Airtel. with that we find out what more value added servicedoes Airtel need which the customers‟ demanded.We have contributed in generating leads to Airtel business along with our research project and never theless we also generated contact detail of IT Manager of the organizations we visited for Airtel data base. 44
  45. 45. 6 LIMITATION OF THE PROJECT1. Most of cooperate using two service provider for internet one as primary use and other assecondary use in which our product fail them to convince about management of non Airtel serviceprovider.2. Corporate giving 3rd party contract in annual maintenance of internet connection are notinterested in product.3. Corporate using IP address for years are not willing to change their IP address due to lackingin IP address portability.4. In organization where there is no IT Manager only Admin person is likely to give biasinformation.5. Time constraint as in most case IT manager was available with prior appointment which use totake time thus reducing our contact covered. 45
  46. 46. 7 RECOMMENDATIONS7.1 Procedure for implementation:First we were given a corporate training for understanding the product from technical team. Then wewere given training from sales team for how to make a cold call, and make a pitch for manage ILP. Butfor first few day Airtel should have send us with their sales team to get practical experience so that ourefficiency would have increase future in less time period.7.2 Industry Recommendation:Airtel have pan India reach but, areas which are not falling under Airtel feasibility, Airtel providewireless support to such remote area. We came across clients who use Airtel DSL Pan India but wherethere is no feasibility of Airtel there they use some other operator for the same instead of going forwireless. So these client faces problem of one point billing, one point compliant registration newproduct called as Manage DSL. This Manage DSL can be useful to those cooperates which have panIndia need for DSL. Airtel can provide wire connection to those areas where Airtel has no feasibility byhaving bilateral relation with local operator of that area and charging extra to client for this new valueadded service. More research have to be done to find out the number of such target audience, than onlywe can decided to launch this new product.7.3 Expected outcome from the recommendations:While conducting same projects next time our recommendation send to them areexpected to be implemented. 46
  47. 47. APPENDIX 1) Name :__________________ 2) Designation :___________________ 3) Contact of concerne person along with email address :_______________4) Do you use internet? 5) Name of the internet service provider for your organizations? 6) In internet do you use broadband DSL or Lease Line or something else? 7) Number of PC‟s are you using? 8) Are you aware of a new product in internet lease line port called Manage internet lease port? 9) Do you yourself manage internet in your organization or have outsource it to someone else?10) What is the speed of your connection?11) Any problem you are facing with your current service provider? 47
  48. 48. BIBLIOGRAPHY Google was a great help in knowing about organization branches and employee strength. Map My India & Google Map Channel Partner: was great help in locating building Airtel site is the site where I come to know about the basic of the company and know more about the company. Philip Kotler The Principal of Marketing was the book helped me clearing my basics about the marketing and make this report more value added. 48

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