This document provides a summary of an internship report submitted by Anupam Kumar for his Master of Business Administration degree. The 6-week internship was completed at Bharti Airtel Ltd. in Noida, India from May 27th to July 6th, 2013. The report includes insights gathered on data marketing and Airtel Money in Uttar Pradesh - West Circle. It covers company profile, industry analysis, financial analysis and details of research projects conducted during the internship related to customer insights.

1. Jaypee Business School
A constituent of Jaypee Institute of Information Technology
(Declared Deemed to be University u/s 3 of UGC Act)
A-10, Sector 62, Noida (UP) India 201 307
www.jbs.ac.in
Insights for
Data Marketing & Airtel Money
(Uttar Pradesh - West Circle)
Corporate Internship Report
Internship Report submitted as a partial requirement for the award of the two year
Master of Business Administration
MBA 2012-14
Name: Anupam Kumar
[Enrollment No. : 9502903]
(Bharti Airtel Ltd, Noida)
CorporateInternship Supervisor Name: Somil Agrawal
JBS-Faculty Supervisor: Dr. Sujata Kapoor
Start Date for Internship: 27th
May 2013
End Date for Internship: 6th
July 2013
ReportDate: 8th
July 2013

2. iii
Self-Certificate
I, Anupam Kumar, hereby certify that I have successfully completed my
Corporate Internship of 6 weeks at “Bharti Airtel Ltd. - Noida, India” during the
period 27th
May 2013 to 5th
July 2013. This submission titled “Insights for Data
Marketing & Airtel Money” is my original work and that to the best of my
knowledge and belief contains no unfair means for the completion. Due
acknowledgement have been made in case of previous published or written work
being used.
Anupam Kumar
Signature: __________________________
Date: ______________________________
Email id: anupam.jaiswal@hotmail.com
Mobile No. : +91-7838927617

3. ii
Certificate from Organization

4. ii
Acknowledgement
I would like to add some heartfelt words for all the people who guided me,
supported me and encouraged me during my internship period in numerous ways. I
deeply thank Mr. Bhupesh Jaiswal and Ms. Preety Singh for providing me the
opportunity to work with Bharti Airtel as an intern and thereby helped me to
understand the telecom sector especially the importance of customers, retailers and
competitors insight in decision making process.
I would like to extend my profound gratitude to my internship mentor, Mr. Somil
Agrawal, for putting trust and confidence in me and giving me an opportunity to
work on the project “Insights for Data Marketing & Airtel Money”. His guidance
and cooperation during my internship period is invaluable.
I am also obliged to Mr. Varun Sharma and Mr. Ankush Agarwal from Data
Marketing Team, Mr. Nasir, Mr. Mudit Gupta and Ms. Prerna Parija from Airtel
Money Team for guiding and mentoring me through the internship and facilitating
my learning of Market research.
Special thanks to my faculty supervisor, Dr. Sujata Kapoor, for her invaluable
guidance and cooperation. A special thanks to the faculty of Jaypee Business
School, Noida and my friends and family for their unending support.

5. 1
Table of Contents
Self – Certificate i
Certificate from Organization ii
Acknowledgements iii
List of Figures 3
List of Tables 4
Executive Summary 5
Introduction 6
Objective 7
Chapter 1. Company Profile 8
1.1 About Airtel 9
1.2 Airtel‟s Vision & Promise 9
1.3 History 10
1.4 Company Logo 11
1.5 Fact Sheet 12
1.6 Bharti Airtel Ltd. – Organization Structure 13
1.6.1 Board of Directors 13
Chapter 2. Industry Analysis 14
2.1 Brief Overview of the Telecommunication Sector 15
2.2 Industry Size and Airtel‟s Market Share 17
2.3 Comparison with Competitors 18
2.4 Revenue of the Telecom Sector 19
2.5 Importance of Telecommunication Sector 20
2.6 Trends in Telecommunication Sector 21
2.6.1 Tariffs 21
2.6.2 Internet Users 22
2.6.3 Wireline Subscriptions 23
2.6.4 Wireless/Cellular/Mobile Phone Subscriptions 24
2.6.5 Teledensity 25
2.7 Why Wireless 26
2.8 Internet 27
Chapter 3. Financial Analysis 29
Strong Growth Trajectory Since IPO 30
3.1 Liquidity Ratios 34
3.1.1 Current Ratio 34
3.1.2 Quick Ratio 35

6. 2
3.1.3 Cash Ratio 37
3.2 Profitability Ratios 38
3.2.1 Operating Profit Margin 38
3.2.2 Earnings Per Share 39
3.2.3 Net Profit Margin 40
3.2.4 Return on Capital Employed 41
3.3 Activity Ratios 43
3.3.1 Inventory Turnover Ratio 43
3.3.2 Asset Turnover Ratio 44
3.3.3 Debtor Turnover Ratio 46
3.4 Leverage Ratios 47
3.4.1 Debt Ratio 47
3.4.2 Debt-Equity Ratio 48
3.4.3 Times Earned Interest 49
Chapter 4. Research Projects, Conclusions and Recommendations 51
4.1 Projects/Studies Description 52
Case 1: Customer insights of airtel users having GPRS compatible
handsets but not using the internet
52
Case 2: Why the customers using Rs. 5 to Rs. 25 net packs never
migrated to higher value vouchers?
54
Case 3: Customers Insight of airtel users, earlier using net packs but
now migrated to VBC
56
Case 4: Find a trend and insight of highly engaged mobile internet
users
58
Case 5: Market Visit to Modinagar- Muradnagar area for insights
on
60
a) Airtel Money 61
b) Airtel Mobile Internet 64
Case 6: Study of Dongles and Internet Devices Market 66
4.2 Recommendations 69
Key Learning‟s 71
Annexures 72
References 79

7. 3
List of Figures
Figure
No.
Description
1. Important Insights
2. Customer Insight
3. Logo of Bharti Airtel Ltd.
4. Logo of the Bharti Enterprises
5. Organization Structure
6. Share of Telecommunications as per cent of GDP, 2000–01 to 2009–10
7. Share of Service Provider in Wireless Subscriptions, February 2012 (%)
8.
Share of Service Provider in Wireless Subscriptions based on GSM,
December 2011 (%)
9. Airtel and Competitor‟s Market Shares
10. Telecom SectorRevenue
11. India‟s Position in Mobile Cellular Prepaid Tariffs
12. Internet Users in India and in the World, 2010
13. Total number of Wireline Subscribers & Growth Rate in India
14. Total Number of Wireless Subscribers & Growth in India, 1996-2011
15. Teledensity, March 2000 - February 2012
16. Mobile Phone Prices in India
17.
Wireless Subscribers Capable of Accessing Internet, March 2007-
December 2011
18. Airtel‟s Growth Trajectory, FY2002 to FY2013
19. Bharti Airtel‟s Revenue from diversified segments.

8. 4
List of Tables
Table No. Description
1. Snapshot of Telecommunications Sector
2. Airtel‟s Net Profit comparison with competitors
3. Current Ratio
4. Quick Ratio
5. Cash Ratio
6. Operating Profit Margin
7. Earnings Per Share
8. Net Profit Margin
9. Return on Capital Employed
10. Inventory Turnover Ratio
11. Asset Turnover Ratio
12. Debtor Turnover Ratio
13. Debt Ratio
14. Debt-Equity Ratio
15. Times Interest Earned
16. Consolidated Balance Sheet Bharti Airtel & Reliance
Communications
17. Consolidated Profit & Loss Account, Bharti Airtel & Reliance
Communications
18. Cash Flow Statement, Bharti Airtel & Reliance Communications

9. 5
Executive Summary
Market research is used by a plethora of organizations for a wide range of
applications. All research activities, whether it is marketing research, market or
social research is based on the principle that research is first and foremost a tool to
assist sound organizational decision making, help organization in making informed
decisions.
This project is an attempt to understand how customers and retailers insights &
competitors strategies affect the decision making in marketing a product and the
details of the sector wherein what is the industry worth who are the major players
in the industry. There are four major sections in the report which are mentioned
below –
1. Company profile: An in depth analysis of Bharti Airtel‟s as a company, its
structure, its areas of work, organizations structure, research milestones,
company‟s vision, its history and its strengths are presented in this section.
2. Industrial analysis: In this section, overview and importance of telecom sector,
industry size, market shares of major players, trends in the industry related to
tariffs, wireline and wireless subscriptions, internet uses are presented.
3. Financial Analysis: In this section, financial analysis of Bharti Airtel Ltd. and
Reliance Communications for the last 3 years has been calculated and analyzed.
4. A Research Project: The project “Insights for Data Marketing & Airtel
Money” was my internship project. In this section, there is summary of this project
as well as about other projects in which I helped upon associates and managers of
data marketing team.

10. 6
Introduction
Our world is changing at a very fast pace, with a new technological development
everyday making our lives more and more easier and comfortable and so our
lifestyles are also changing with the same pace and today the customer is the focus
of every brand and organization.
Everything is changing around us and to stay competitive and profitable we have to
make the best decisions in developing a product, marketing the product and
making it a market-winner. To take any decision we need inputs, data to support
our decision and where will this input or the insight will come from? The answer to
this question can be extracted from the insights of three domains; they are
Customers, Market and Competitors (both current and emerging competitors).
Figure 1: Important Insights, Source: http://www.a-fresh-perspective.com
Today we all know and feel that it‟s not just a good product/service that makes us
pay for it, rather it‟s the whole good experience that we demand and in this
experience economy the customer is the most important thing. Thus, before
making any business decision we need to have customer insight.
Customer Insight is the intersection between the interests of the consumer and
features of the brand. Its main purposeis to understand why the consumer cares for

11. 7
the brand as well as their underlying mindsets, moods, motivation, desires,
aspirations, and motivates that trigger their attitude and actions. [2]
Figure 2: Customer Insight, Source: http://www.a-fresh-perspective.com
Customer insights answers to many questions including the important one i.e.:
 What is most important to them?
 How do they make decisions?
 How do they evaluate brands, products and services?
 What are their needs, wants and interests?
 What are the best ways to communicate with them?
 What are key differences among customer segments?
Objective
The main objective of the internship was to interact with as many as possible
customers and retailers and get their insights on mobile internet, internet access
through dongles or devices and airtel money.
The interaction was mainly through tele-calling, visiting to retailers and shops in
person in different areas and taking in-depth interviews through a detailed
questionnaire and recording their answers and feedbacks (secondary research was
also done wherever a data was required). After collection, the data was analyzed
and findings/conclusions are noted and discussed with the supervisor and the
managers along with the recommendations.

12. 8
Chapter1
Company Profile

13. 9
1.1 About Airtel
Bharti Airtel Limited is a leading global telecommunications company with
operations in 20 countries across Asia and Africa. Headquartered in New Delhi,
India, the company ranks amongst the top 4 mobile service providers globally in
terms of subscribers. In India, the company's product offerings include 2G, 3G and
4G wireless services, mobile commerce, fixed line services, high speed DSL
broadband, IPTV, DTH, enterprise services including national & international long
distance services to carriers. In the rest of the geographies, it offers 2G, 3G
wireless services and mobile commerce. Bharti Airtel had over 269 million
customers across its operations at the end of March 2013. [1]
The company was founded by its chairman and Marketing director Sunil Bharti
Mittal. Bharti Enterprises is the major shareholder in the company with 52.7%
shares and other important shareholders of this public company are Singtel with
15.57% and Vodafone with 4.4% shares. [2]
1.2 Airtel’s Vision & Promise
“By 2015 airtel will be the most loved brand, enriching the lives of millions”. [1]
“Enriching lives means putting the customer at the heart of everything we do. We
will meet their needs based on our deep understanding of their ambitions,
wherever they are. By having this focus we will enrich our own lives and those of
our other key stakeholders. Only then will we be thoughtof as exciting, innovation,
on their side and a truly world class company."

14. 10
1.3 History
Sunil Mittal founded the Bharti Group. In 1983, Mittal was in an agreement with
Germany's Siemens to manufacture push-button telephone models for the Indian
market. In 1986, Mittal incorporated Bharti Telecom Limited (BTL), and his
company became the first in India to offer push-button telephones, establishing the
basis of Bharti Enterprises.
By the early 1990s, Sunil Mittal had also launched the country's first fax machines
and its first cordless telephones. In 1992, Mittal won a bid to build a cellular phone
network in Delhi. In 1995, Mittal incorporated the cellular operations as Bharti
Tele-Ventures and launched service in Delhi. In 1996, cellular service was
extended to Himachal Pradesh. In 1999, Bharti Enterprises acquired control of JT
Holdings, and extended cellular operations to Karnataka and Andhra Pradesh. In
2000, Bharti acquired control of Skycell Communications, in Chennai and in 2001,
Spice Cell in Calcutta.
Bharti Enterprises went public in 2002, and the company was listed on Bombay
Stock Exchange and National Stock Exchange of India. In 2003, the cellular phone
operations were rebranded under the single Airtel brand. In 2004, Bharti acquired
control of Hexagon and entered Rajasthan. In 2005, Bharti extended its network to
Andaman and Nicobar. This expansion allowed it to offer voice services all across
India. In 2009, Airtel launched its first international mobile network in Sri Lanka.
In 2010, Airtel acquired the African operations of the Kuwait based Zain Telecom.
In March 2012, Airtel launched a mobile operation in Rwanda.
On 26 February 2013, Airtel announced that it had deployed Ericsson‟s Mobile
Broadband Charging (MBC) solution which allowed prepaid customers to
customize their data plans across mobility, fixed line and broadband by cross

15. 11
bundling across multiple domains (2G, 3G, 4G/LTE & Wi-Fi). It will also offer
flexible multi service charging in geographical redundant mode, making Airtel the
first operator to implement geographical redundancy at such a large scale. [2]
1.4 Company Logo
Airtel‟s unique symbol is an interpretation of the „a‟ in airtel. The meaning of the
logo in company‟s own words is as follows [1]:
“The curved shape & the gentle highlights on the red color make it warm &
inviting, almost as if it were a living object. It represents a dynamic force of
unparalleled energy that brings us and our customers closer.
Our specially designed logo type is modern, vibrant & friendly. It signals our
resolve to be accessible, while the use of all lowercase is our recognition for the
need for humanity.
Red is part of our heritage. It is the color of energy & passion that expresses the
dynamism that has made airtel the success it is today, in India, and now on the
global stage.”
(Figure 3: Logo of Bharti Airtel Ltd.)
(Figure 4: Logo of the Bharti Enterprises)

16. 12
1.5 Fact Sheet
Name: Bharti Airtel Limited
Established: July 07, 1995, as a Public Limited Company
ISIN INE397D01024
(International Securities Identification Number)
Proportionate revenue: Rs. 204,484 million (ended March 31, 2013-Audited)
Rs. 187,294 million (ended March 31, 2012-Audited)
(As per IFRS Accounts)
Proportionate
EBITDA:
Rs. 64,870 million (ended March 31, 2013 – Audited)
Rs. 62,329 million (ended March 31, 2012- Audited)
(As per IFRS Accounts)
Shares in issue: 3,797,530,096 as at March 31, 2013
Listings: Bombay Stock Exchange Limited (BSE)
National Stock Exchange of India Limited (NSE)
Stock exchange
symbol:
NSE – BHARTIARTL
BSE – 532454
Customer base: India & South Asia:
196,126,000 GSM mobile;
3,283,000–Tele media customers
and 8,100,000- Digital TV
Services
Africa: 63,718,000 GSM mobile customers.
(Status as on March 31, 2013)
(Source: [1] http://www.airtel.in)

17. 13
1.6 Bharti Airtel Ltd – Organization Structure
(Figure 5: Organization Structure, Source: http://www.airtel.in)
1.6.1 Board of Directors:
The board of directors of the company has an optimum mix of executive and non-
executive directors, which consists of two executive and eleven non-executive
directors. The chairman and managing director, Mr. Sunil Bharti Mittal, is an
executive director and the number of independent directors on the board is more
than 50% of the total board strength. The independence of a director is determined
on the basis that such director does not have any material pecuniary relationship
with the company, its promoters or its management, which may affect the
independence of the judgment of a director. The board members possess requisite
skills, experience and expertise required to take decisions, which are in the best
interest of the company.

18. 14
Chapter 2
Industry Analysis

19. 15
2.1 Brief Overview of the Telecommunications Sector
The subscriber base for telecom services in India is large but skewed in favour of
urban areas. Urban tele-density is 4.4 times that of rural density (Table 1). Further,
wireless phones dominate the market in India and wire-line phone segment
constitutes merely 3.4 per cent of the total subscriberbase. The numbers of Internet
and broadband subscribers are a very small fraction of the population. However,
the number of people capable of accessing the net through mobile phones is
substantially higher, if wireless data subscription through mobile is an indication.
The share of revenue from telecom services is higher than
manufacturing/production of telecom equipment. About a quarter of the domestic
telecom production is exported and the needs of telecom equipment in India are
largely met by imports. Most of the Foreign Direct Investment (FDI) has gone to
the cellular mobile segment. The pace of growth of the telecom sector, particularly
the telecom services has increased its significance to the overall economy in the
past two decades. The share of telecommunication services (excluding postal and
miscellaneous services), as percent of the total GDP, has increased from 0.96 in
2000–01 to 3.78 in 2009–10 (Figure 6 ). [4]

20. 16
Table 1: Snapshot of Telecommunications Sector
(Source: Publication on 'Telecom Sector in India: A Decadal Profile'
http://www.trai.gov.in/Content/Publication_Category.aspx)

21. 17
2.2 Industry Size and Airtel’s Market Share
GSM continues to be the dominant technology for wireless phones with 87.9 per
cent share. Bharti is the dominant player in GSM segment accounting for 22.35
percent of the market in terms of market subscriptions followed by Vodafone
(18.80 per cent), Idea (13.53 per cent) and Reliance (12.05 per cent) (Figure 7).
There are as many as 14 operators using GSM technology compared to just six
using CDMA. Reliance is the leading player in the CDMA market with 51.32 per
cent share (Figure 8). Tata is the next big player in this market. [4]

22. 18
Figure 9: Airtel and Competitor‟s Market Shares, Source: www.airtel.in
2.3 Comparison with Competitors
Airtel is the market leader in the telecommunication industry with 181.3 million
mobile customers as on March 31st
2012 [1], which makes it the largest wireless
operator in India both in terms of customer base and revenue. As per the latest data
[Table 2] Bharti airtel has the highest sales turnover, market cap. & is the most
profitable telecom operator in India.

23. 19
Ranking Name
Market
Cap.
Sales
Net Profit Total Assets
(Rs. cr.) Turnover
1. Bharti Airtel 114,685.41 45,350.90 5,096.30 63,559.00
2. Idea Cellular 47,484.83 22,086.87 818.26 23,072.72
3. Reliance Comm 27,451.56 11,267.00 624 73,068.00
4. Tata Comm 4,923.38 4,416.12 475.24 8,087.80
5. TataTeleservice 1,309.07 2,634.54 -658.77 4,237.96
6. MTNL 1,149.75 3,428.66 -5,321.12 12,184.20
7. Tulip Telecom 115.28 945.03 -735 4,115.30
8. Goldstone Infra 38.07 70.07 2.01 109.63
9. Nu Tek India 8.5 119.21 3.94 582.96
(Table 2: Airtel‟s Net Profit comparison with competitors
Source: http://www.moneycontrol.com)
2.4 Revenue of the Telecom Sector
The total revenue trend for the last six years is depicted in Figure 10. The total
revenue (including other income) of the telecom service sector stood at Rs
1,63,067 crore in 2010–11 as against Rs 87,794 crore in 2005–06 showing an
increase of 89 per cent over the last six years. However, revenue from telecom
services is Rs 1,56,657 crore in 2010–11 as against Rs 82,687 crore in 2005–06.
The total revenue of the public sector companies for 2010–11 is Rs 33,971 crore as
against Rs 46,268 crore in 2005–06, showing major decline of 27 per cent over the
last six years. The total revenue contribution from the private sector for 2010–11
was Rs 1,29,096 crore as against Rs 41,526 crore in 2005–06 showing a
tremendous growth of 211 per cent over the period. The share of the public sector
has decreased from 53 per cent to 21 per cent between 2005–06 and 2010–11.
Share of the private sector increased from 47 per cent to 79 per cent during the
same period. [4]

24. 20
Figure 10: Telecom Sector Revenue
2.5 Importance of Telecommunication Sector
The importance of telecommunications sector for the Indian economy can be
judged by its contribution to GDP, tax revenue, and jobs. Studies have suggested
that mobile phones have a positive impact on GDP. The potential impact of
wireless broadband is also estimated to be highly positive. Further, the industry
generates tax revenues for the government. The 3G spectrum auction combined
with the bid values for broadband wireless access licenses yielded more than Rs
100,000 crore in 2010 to the Government of India, amounting to approximately 1
per cent of the GDP.
Employment data shows that the share of employment in the transport, storage and
communication sectors went up from 3.7 per cent in 1999–2000 to 3.8 per cent in
2004–05. The employment in BPO (Business Process Outsourcing) shows high

25. 21
rates of growth throughout the 2000s. The mobile telephone industry generated 3.6
million jobs both directly and indirectly. In 2008–09 2.2 million people were
directly employed in the IT–BPO industry with 1.9 million in Tier 1 cities and 0.17
million in Tier 2/3 cities. During the same period the IT–BPO industry employed
7.3 million people indirectly in Tier 1 cities. [4]
The telecommunications sector plays an increasingly important role in the Indian
economy. It contributes to economic growth and the GDP and generates revenue
for the government and generates jobs. In short, telecom sector has a multiplier
impact on the economy.
2.6 Trends in Telecommunications Sector
2.6.1 Tariffs
Mobile cellular prepaid tariffs ranged between US$ 1.3 and 37 per month across
countries in 2008 (Figure 2.2). Average mobile cellular prepaid tariff in the world
is US$ 10.1 per month. Mobile tariffs are the lowest in countries such as
Bangladesh, India, Pakistan, Sri Lanka, Nepal, Bhutan, and so on. Mobile tariffs in
India are the second lowest (US$1.6 per month) in the world after Bangladesh.
Countries with the highest mobile tariffs in the world include Austria, Venezuela,
Greece, Portugal, Australia, Japan, Spain, Switzerland, France, and Brazil. This
particularly low tariff in South Asia was an innovation (driven by intense
competition, low purchasing power and strict regulatory environments) from this
region called the “budget telecom network model”.

26. 22
Figure 11: India‟s Position in Mobile Cellular Prepaid Tariffs
This model first emerged in South Asian markets of India, Pakistan and
Bangladesh to cater to “customers who only use a few calling minutes per month.
This innovation rests on the reduction of transaction costs of generating and
transmitting a monthly bill for prepaid customers. Low-value recharge cards,
especially electronic reload; give the greatest payment flexibility making this
model work” (OECD, 2009). This model is advantageous for people with low,
irregular incomes, no permanent address and no credit history. Also, these
contracts allow exact monitoring of use. [4]
2.6.2 Internet Users
India is ranked fourth amongst Internet users in the world, accounting for 4.56 per
cent of the world‟s total Internet users in 2010 as shown in Figure 12. Internet
users in India expanded at a significantly high CAGR of 32.27 per cent during the
period 2000–10 while those in the world expanded at an average rate of 17.46 per
cent. However, India ranks low in terms of Internet users per 100 people in the

27. 23
world (143 out of 186) with only 7.5 per 100 people using Internet, compared to
the world average of 30.48. The growth numbers in terms of users are dazzling but
as the next section will show, India is still far behind in Internet subscriptions.
Out of the 91.8 million people using Internet in India, there were only 18.7 million
fixed Internet subscribers in 2010 as shown in Figure 13. India was ranked the
seventh highest (out of 214 countries) in this category in 2010. The country
accounted for 3.54 per cent of the world‟s total fixed Internet subscribers in 2010.
The number of fixed internet subscribers per 100 inhabitants in 2010 was 1.53 as
compared to the world figure of 7.73. [4]
Figure 12: Internet Users in India and in the World, 2010
2.6.3 Wireline Subscriptions
Wireline subscriptions increased from 2.3 million in 1981 to 32.44 million in 2000
to reach its peak at 50.18 million in 2006. Thereafter, it started registering negative

28. 24
growth. By the end of February 2012, wireline subscriptions came down to 32.33
million. India has followed the worldwide trend where the mobile phone is a
substitute to fixed line phone, through competition has forced the landline services
to become more efficient in terms of quality of services. The landline network
quality has improved and landline connections are now usually available on
demand. [4]
Figure 13: Total number of Wireline Subscribers & Growth Rate in India
2.6.4 Wireless/Cellular/Mobile Phone Subscriptions
Cellular or mobile segment has been the key contributor to record growth in
telephone subscriptions with its wide range of offers of services. It has led the
growth wave of telecom sector in the country. After triple digit growth rate in the
first two years, growth rate reduced to 35.6 per cent in 1998. The annual growth
rate of wireless phones increased again till 2003 and peaked at 159.2 per cent.
Since then the growth rate has tapered down and has averaged around 51.8 per cent
during 2004–11. In 2011, growth rate significantly came down to 18.8 per cent

29. 25
(Figure 14). Mobile phones accounts for nearly 96.6 per cent of the total telecom
subscriptions as of February 2012.
Figure 14: Total Number of Wireless Subscribers & Growth in India, 1996-2011
More than 95 per cent of wireless connections are prepaid. In India GSM mobile
system is pre-dominant. There is a clear distinction between the Global System for
Mobile Communications (GSM) and Code Division Multiple Access (CDMA)
technologies. At the end of December 2011, GSM accounted for 87.9 per cent of
the wireless subscriptions and was growing at a faster rate. [4]
2.6.5 Teledensity
With the increase in the number of telecom subscriptions, the total teledensity has
increased from 2.81 in 2000 to 78.10 on February 2012, a CAGR of 31.9 per cent.
This is mainly driven by the increase in wireless density (Figure 15). Wireline
density was higher than wireless till 2004 and then declined after peaking in 2005.
During the period March 2000–February 2012, wireline density increased at the

30. 26
CAGR of 0.19 per cent. Wireless density increased at the CAGR of 64.65 per cent
during the period March 2000 to February 2012. [4]
Figure 15: Teledensity, March 2000 - February 2012
2.7 Why Wireless?
The popularity of mobile phones is due to their personal, portable, and digital
nature enabling people to be always “connected”. Further, the budget telecom
network model mentioned earlier and the ultra-low cost of handsets (Figure 16) has
made mobiles ubiquitous. More than a quarter of all handsets sold in India are
second-hand i.e. re-sold and recycled within India. These factors lower the barrier
to entry. On the supply side, it is relatively cheaper to extend mobile connections
than fixed line telephony.

31. 27
Figure 16: Mobile Phone Prices in India
2.8 Internet
The number of Internet subscribers increased from 0.95 million in March 2000 to
22.39 million in December 2011, grown at a CAGR of 33.3 per cent. As of
December 2011 this comprises of 13.35 million broadband (>=256 kbps)
connections and 9.08 million narrowband (<256 kbps) connections. Latest statistics
available till February 2012 indicate that broadband subscribers have increased to
13.42 million. Despite such impressive growth, the share of Internet users remains
a negligible fraction of India‟s total population. Lack of accessibility, lack of
information, lack of literacy, inconsistent power supply, and high maintenance cost
of personal computers (PCs) are some of the major reasons for this phenomenon.

32. 28
This implies that mobile Internet access may have a substantial impact on Internet
users in the country.
Mobile broadband is getting increasingly popular in India similar to China,
especially accessing broadband over the mobile phone. There were 431.37 million
wireless subscribers in India who had subscribed to data services as of December
2011. This implies that 48.26 per cent of total wireless subscribers were capable of
accessing data services/Internet at the end of December 2011.
The number of wireless subscribers who have subscribed to data services has
increased at the CAGR of 93.1 percent between March 2007 and December 2011
(Figure 17). This growth rate is much higher than the growth in traditional Internet
subscribers.
Figure 17: Wireless Subscribers Capable of Accessing Internet, March 2007-December 2011

33. 29
Chapter 3
Financial Analysis

34. 30
Figure 18: Airtel‟s Growth Trajectory, FY2002 to FY2013, Source: www.airtel.in
Bharti airtel has shown a tremendous growth in terms of customer base, revenue
which was 310 million USD (in 2002) to 14.7 billion USD (in 2013), EBITDA,
market Cap. And the cash profit which was 64million USD (in 2002) increased to
3.8 billion USD. These all figures and the data in table shows that Bharti airtel is
not only the leading telecom operator but also financially very healthy company.
Figure 19: Bharti Airtel‟s Revenue from diversified segments, Source: www.airtel.in

35. 31
3.1 Liquidity Ratios
A class of financial metrics that is used to determine a company's ability to pay off
its short-terms debts obligations. Generally, the higher the value of the ratio, the
larger the margin of safety that the company possesses to cover short-term debts.
Common liquidity ratios include:
i. Current ratio
ii. Quick ratio and
iii. Cash Ratio
3.1.1 Current Ratio:
The ratio is mainly used to give an idea of the company's ability to pay back its
short-term liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). The higher the current ratio, the more capable the company is of
paying its obligations. A ratio under 1 suggests that the company would be unable
to pay off its obligations if they came due at that point. While this shows the
company is not in good financial health, it does not necessarily mean that it will go
bankrupt - as there are many ways to access financing - but it is definitely not a
good sign.
It‟s also known as “liquidity ratio”, “cash asset ratio”.
Table 6 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
CurrentAssets 11,462.74 17,009.70 21,663.90 12,912.62 16,464.76 15,126.00
CurrentLiabilities 16,887.21 38,233.20 34,657.60 19,589.51 14,327.65 19,924.00
Current Ratio 0.68 0.44 0.63 0.65 1.14 0.75

36. 32
The current ratio has been lesser than 1 for Bharti Airtel from past 3 years which
shows that the company would not be able to pay its short term liabilities with its
short term assets. On the other side its competitor Reliance comm. is healthier in
terms of its ability to pay its short term liabilities. In the year 2011 Airtel had the
lowest current ratio in three years i.e. 0.4, while Reliance was at its best with 1.14
which means the company was able to meet its creditors demand easily. But on
comparison with Industry average over past 3 years, which is 0.46 for telecom
industry [CMIE database] both the companies are doing better than overall
industry in terms of current ratio.
3.1.2 Quick Ratio:
The quick ratio is calculated as:
Also known as the "acid-test ratio" or "quick asset ratio".
0.68
0.44
0.630.65
1.14
0.75
0
0.2
0.4
0.6
0.8
1
1.2
Mar-10 Mar-11 Mar-12
Current Ratio
Bharti Airtel Reliance Communications

37. 33
The quick ratio is more conservative than the current ratio, a more well-known
liquidity measure, because it excludes inventory from current assets. Inventory is
excluded because some companies have difficulty turning their inventory into cash.
In the event that short-term obligations need to be paid off immediately, there are
situations in which the current ratio would overestimate a company's short-term
financial strength.
Table 7 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
CurrentAsset 11,462.74 17,009.70 21,663.90 12,912.62 16,464.76 15,126.00
CurrentLiabilities 16,887.21 38,233.20 34,657.60 19,589.51 14,327.65 19,924.00
Inventory 48.39 213.9 130.8 544.63 517.16 566
Quick Ratio 0.67 0.32 0.47 0.59 1.06 0.73
Average quick ratio for the telecom sector over the past 3 years is 0.41, so it can be
easily stated that Bharti airtel is just doing similar to the rest of telecom industry in
paying its short term obligations but on the other side reliance comm. is much
more healthier, with quick ratio of 1.06 in 2011 and during past 3 years its
financial position is much better than industry average in meeting short term
obligations of creditors.
0.67
0.32
0.47
0.59
1.06
0.73
0
0.2
0.4
0.6
0.8
1
1.2
Mar-10 Mar-11 Mar-12
Quick Ratio
Bharti Airtel Reliance Communications

38. 34
3.1.3 CashRatio
This indicates liquidity by measuring the amount of cash, cash equivalents, and
invested funds that are available to meet current short-term liabilities. It is
calculated by using the following formula:
Cash ratio = (Cash + Cash equivalents + Invested funds) ÷ Current liabilities
The cash ratio is a more conservative measure of liquidity than the current ratio,
because it only looks at assets that are already liquid, ignoring assets such as
receivables or inventory.
Table 8 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
CurrentLiabilities 16887.21 38233.20 34657.60 19589.51 14327.65 19924.00
Cash andEquivalent 2095.65 600.80 803.70 818.54 4866.34 550.00
Cash Ratio 0.12 0.02 0.02 0.04 0.34 0.03
Cash ratio for airtel has been lesser than 1 in past 3 years and almost negligible,
which states that the company has not been holding completely liquid assets and
had its capital mainly invested in form of inventories and non-liquid assets and has
low cash balances i.e. airtel won‟t be able to pay its short term liabilities at all with
its cash reserves, cash equivalents and investments. While reliance also shows the
similar trend but in year 2011 its cash ratio was 0.34 which means that the
company had higher volume of cash or liquid assets in all three years but still it
would not have been able to meet its creditors demands completely.
0.12
0.02 0.020.04
0.34
0.03
0.00
0.20
0.40
Mar-10 Mar-11 Mar-12
Cash Ratio
Bharti Airtel Reliance Communications

39. 35
3.2 Profitability Ratios:
A class of financial metrics that are used to assess a business's ability to generate
earnings as compared to its expenses and other relevant costs incurred during a
specific period of time. For most of these ratios, having a higher value relative to a
competitor's ratio or the same ratio from a previous period is indicative that the
company is doing well.
3.2.1 Operating Profit Margin
A ratio used to measure a company's pricing strategy and operating efficiency.
Calculated as:
Operating margin is a measurement of what proportion of a company's revenue is
left over after paying for variable costs of production such as wages, raw materials,
etc. A healthy operating margin is required for a company to be able to pay for its
fixed costs, such as interest on debt. Also known as "operating profit margin" or
"net profit margin".
Table 9 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
OperatingProfit 16,996.50 19,971.40 23,704.90 9,791.78 8,404.29 5,785.00
NetSales 41,829.46 59,467.20 71,505.80 23,902.15 22,430.35 19,677.00
OperatingMargin 40.63% 33.58% 33.15% 40.97% 37.47% 29.40%
Operating margin for both the companies has decreased in last 3 years which is not
a good sign and both the companies are having similar operating profit margins.
Airtel has an average of 35.78 % operating margin in last 3 years, which means
that company makes Rs. 0.36 (before interest & taxes) for every rupee of sales.
Reliance has an average of 35.94% operating margin i.e. it makes Rs. 0.36 (before
interest & taxes) for every rupee of sale. The decreasing trend in operating margin
is due to the increase in competition and entry of new players in telecom sector.

40. 36
3.2.2 Earnings Per Share
The earning per share is a useful measure of profitability, and when compared with
EPS of other similar companies, it gives a view of the comparative earning power
of the companies. EPS when calculated over a number of years indicates whether
the earning power of the company has improved or deteriorated. Investors usually
look for companies with steadily increasing earnings per share.
Earnings per share = (Net Profit after Taxes – Preference Dividends) /
Number of Equity Shares
Table 10 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Reported Net Profit 9,366.35 7,173.00 2,217.10 4,777.44 1,505.82 988
Shares in issue (lakhs) 37,975.30 37,975.30 37,975.30 20,640.27 20,640.27 20,640.27
Earnings Per Share
(Rs) 24.66 18.89 5.84 23.15 7.30 4.79
Earnings per share has tremendously decreased for both Bharti airtel (4 times) and
reliance communications (5 times) in last 3 years, the reason behind this could be
the new rules and regulations from TRAI which led to increased intensive
40.63%
33.58% 33.15%
40.97%
37.47%
29.40%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Mar-10 Mar-11 Mar-12
Operating Profit Margin
Bharti Airtel Reliance comm

41. 37
24.66
18.89
5.84
23.15
7.30
4.79
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Mar-10 Mar-11 Mar-12
Earnings Per Share (Rs)
Bharti Airtel Reliance comm
competition in telecom industry and entry of many new players in the telecom
sector. The profits have decreased in these 3 years for both companies and we all
know the demand and the customer base for wireless uses has increased a lot
which indicates increased expenses in telecom sector (also visible from P & L
account Table-4). As per 2012 EPS figures airtel is more attractive to invest.
3.2.3 Net Profit Margin
A ratio of profitability calculated as net income or net profits divided by sales. It
measures how much out of every dollar of sales a company actually keeps in
earnings. A higher profit margin indicates a more profitable company that has
better control over its costs compared to its competitors. Profit margin is displayed
as a percentage. This is also known as Net Profit Margin.
Net Profit Margin = Net Income / Sales Turnover
Table 11 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Reported Net Profit 9,366.35 7,173.00 2,217.10 4,777.44 1,505.82 988
Sales Turnover 41,829.46 59,467.20 71,505.80 23,902.15 22,430.35 19,677.00
Netprofit margin 22.39% 12.06% 3.10% 19.99% 6.71% 5.02%

42. 38
Net Profit margin has decreased 7 times for airtel and 4 times for reliance comm.
(comparing figures of Mar-10 and Mar-12) which is not a good sign, as earlier in
2010 airtel was keeping Rs. 0.22 for every rupee of sale and now it‟s just making
Rs. 0.03. Compared to reliance comm. airtel‟s earning has is lesser in the year
2012. The profitability has decreased for both the companies in last 3 years, the
reason for which is same as stated earlier i.e. increased competition and changes in
policies, rules and regulations for telecom operators. The profitability is also
affected as the companies had to pay higher prices due to re-auctioning of 2G
spectrum.
3.2.4 Return on Capital Employed
ROCE is used to prove the value the business gains from its assets and liabilities.
A business which owns lots of land will have a smaller ROCE compared to a
business which owns little land but makes the same profit. It basically can be used
to show how much a business is gaining for its assets, or how much it is losing for
its liabilities.
22.39%
12.06%
3.10%
19.99%
6.71%
5.02%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Mar-10 Mar-11 Mar-12
Net Profit Margin
Bharti Airtel Reliance comm

43. 39
Table 12 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Net Worth 39,878.92 48,766.80 50,611.30 43,360.64 40,499.18 36,296.00
Total Debt 10,288.14 56,650.10 69,023.20 29,715.42 39,071.38 35,185.00
Capital Employed 50,167.06 105,416.90 119,634.50 73,076.06 79,570.56 71,481.00
Revenue 42,956.64 61,189.30 69,729.10 27,432.81 23,119.73 20,382.00
COGS 24,785.08 39,495.80 47,800.90 14,110.37 14,026.06 13,892.00
Depreciation 6,199.41 8,698.00 13,368.10 3,746.51 8,511.58 3,978.00
EBIT 11,972.15 12,995.50 8,560.10 9,575.93 582.09 2,512.00
ROCE 23.86% 12.33% 7.16% 13.10% 0.73% 3.51%
The capital employed has increased about two-folds in last 3 years and reliance
comm. has kept its capital employed more or less the same. From the Table-12 we
can also see that Earnings before interest and taxes (EBIT) and ROCE has a
decreasing trend for airtel while reliance‟s EBIT and ROCE decreased to from
13.10% to 0.73% and then shown an improvement to 3.51%. It can be said that
although airtel increased its capital investment but also it managed to maintain a
high EBIT but the efficiency of returns from capital employed has decreased.
23.86%
12.33%
7.16%
13.10%
0.73%
3.51%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Mar-10 Mar-11 Mar-12
ROCE
Bharti Airtel Reliance comm

44. 40
3.3 Activity Ratios:
Accounting ratios that measure a firm's ability to convert different accounts within
its balance sheets into cash or sales. Activity ratios are used to measure the relative
efficiency of a firm based on its use of its assets, leverage or other such balance
sheet items. These ratios are important in determining whether a company's
management is doing a good enough job of generating revenues, cash, etc. from its
resources.
Companies will typically try to turn their production into cash or sales as fast as
possible because this will generally lead to higher revenues. Such ratios are
frequently used when performing fundamental analysis on different companies.
The total assets turnover ratio and inventory turnover ratio are two popular
examples of activity ratios used widely across most industries.
3.3.1 Inventory Turnover Ratio
A ratio showing how many times a company's inventory is sold and replaced over
a period. The days in the period can then be divided by the inventory turnover
formula to calculate the days it takes to sell the inventory on hand or "inventory
turnover days."
Table 13 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Sales Turnover 41829.46 59467.20 71505.80 23902.15 22430.35 19677.00
Inventories 48.39 213.90 130.80 544.63 517.16 566.00
InventoryTurnover Ratio 864.42 278.01 546.68 43.89 43.37 34.77

45. 41
Airtel has a great inventory turnover ratio, although it decreased from 864.42 to
546.68, then also this performance is way ahead of its competitor reliance comm.
which has a very low inventory turnover ratio of < 50. This high turnover implies
that airtel has strong sales which are evident as Bharti airtel is the leading telecom
operator in India, both in terms of customer base and revenue.
3.3.2 AssetTurnover Ratio
Asset turnover is a financial ratio that measures the efficiency of a company's use
of its assets in generating sales revenue or sales income to the company.
Companies with low profit margins tend to have high asset turnover, while those
with high profit margins have low asset turnover. Companies in the retail industry
tend to have a very high turnover ratio due mainly to cutthroat and competitive
pricing.
864.42
278.01
546.68
43.89 43.37 34.77
0.00
200.00
400.00
600.00
800.00
1000.00
Mar-10 Mar-11 Mar-12
Inventory Turnover Ratio
Bharti Airtel Reliance Communications

46. 42
Table 14 Bharti Airtel Reliance Communications
Mar-09 Mar-10 Mar-11 Mar-12 Mar-09 Mar-10 Mar-11 Mar-12
Total Assets 43872.70 53022.60 108273.20 122404.00 82097.49 73734.45 80395.03 72341.00
Average Total Asset - 48447.65 80647.90 115338.60 - 77915.97 77064.74 76368.02
Sales Turnover - 41,829.46 59,467.20 71,505.80 - 23,902.15 22,430.35 19,677.00
Total Asset Turnover
Ratio
- 0.86 0.74 0.62 - 0.31 0.29 0.26
The asset turnover ratio shows a declining trend over the past 3 years but still its
lowest 0.62 in year 2012 is about 3 times to its competitor reliance
communications which means that Airtel has been managing its assets more
efficiently than its competitor for generating sales. There has not been a large
change in total assets of reliance and the sales turnover have also been almost
similar from last 3 years, so the asset turnover ratio has also remained quite same.
But if we see for airtel, total assets have increased about three times and sales
turnover has also doubled and still Airtel‟s asset turnover ratio has been quite high
as the industry average for past 3 years is 0.33, so airtel has been more efficient in
generating sales and high values also indicates that Airtel has low profit margins.
0.86
0.74
0.62
0.31 0.29
0.26
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Mar-10 Mar-11 Mar-12
Total Asset Rurnover Ratio
Bharti Airtel Reliance Communications

47. 43
3.3.3 Debtor Turnover Ratio
An accounting measure used to quantify a firm's effectiveness in extending credit
as well as collecting debts. The receivables turnover ratio is an activity ratio,
measuring how efficiently a firm uses its assets.
Table 15 Bharti Airtel Reliance Communications
Mar-09 Mar-10 Mar-11 Mar-12 Mar-09 Mar-10 Mar-11 Mar-12
Sales Turnover 37,352.08 41,829.46 59,467.20 71,505.80 3,961.77 23,902.15 22,430.35 19,677.00
Sundry Debtors 2,899.78 3,182.48 5,492.90 6,373.50 3,961.77 3,311.67 3,984.00 3,584.00
Avg.Receivables - 3,041.13 4,337.69 5,933.20 - 3,636.72 3,647.84 3,784.00
Debtor Turnover Ratio - 13.75 13.71 12.05 - 6.57 6.15 5.20
The industry average Debtor turnover ratio for past 3 years is 4.83 [CMIE databse],
thus it‟s clear that airtel has been very efficient in extension of credit and collection
of account receivables. Reliance comm. has been better debtor turnover ratio than
industry average but lags miles behind airtel. Although this ratio has decreased a
little bit for airtel in last 3 years but still its high values implies that airtel manages
its debtors more efficiently.
13.75 13.71
12.05
6.57 6.15
5.20
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Mar-10 Mar-11 Mar-12
Debtor Turnover Ratio
Bharti Airtel Reliance Communications

48. 44
3.4 Leverage Ratios
Any ratio used to calculate the financial leverage of a company to get an idea of
the company's methods of financing or to measure its ability to meet financial
obligations. There are several different ratios, but the main factors looked at
include debt, equity, assets and interest expenses.
3.4.1 Debt Ratio
A ratio which indicates the proportion of debt a company has relative to its assets.
The measure gives an idea to the leverage of the company along with the potential
risks the company faces in terms of its debt-load.
Debt Ratio = Total Debt/Total Assets
Table 16 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Total Debt 10,288.14 56,650.10 69,023.20 29,715.42 39,071.38 35,185.00
Total Assets 53,022.60 108,273.20 122,404.00 73,734.45 80,395.03 72,341.00
Debt Ratio 0.19 0.52 0.56 0.40 0.49 0.49
The Debt ratio has shown increasing trend for airtel, this means that company has
been using more debt financing, but still it‟s lesser than 1 which implies that
company has more assets than debts. On comparison with reliance comm. whose
debt ratio doesn‟t fluctuate much in last three years, Reliance has lesser debts and
more assets compared to airtel. For both the companies half of their total assets are
debt financed.

49. 45
3.4.2 Debt-Equity Ratio
Debt-Equity Ratio= Total Debt / Shareholders Equity
Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal
financial statements as well as corporate ones. A high debt/equity ratio generally
means that a company has been aggressive in financing its growth with debt. This
can result in volatile earnings as a result of the additional interest expense.
Table 17 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Total Debt 10,288.14 56,650.10 69,023.20 29,715.42 39,071.38 35,185.00
Net Worth 39,878.92 48,766.80 50,611.30 43,360.64 40,499.18 36,296.00
Debt Equity
Ratio 0.26 1.16 1.36 0.69 0.96 0.97
The Debt Equity ratio has shown an increasing trend for both the companies in last
three years which means both companies have been aggressively using debt
financing. Airtel has higher value 1.36 in Mar-12 which indicates that company
has been using more debt financing than shareholders equity which have helped it
to generate more earnings and the debt cost (interest) has been lesser than earnings
0.19
0.52
0.56
0.40
0.49 0.49
0.00
0.10
0.20
0.30
0.40
0.50
0.60
Mar-10 Mar-11 Mar-12
Debt Ratio
Bharti Airtel Reliance Communications

50. 46
that‟s why Airtel has managed to increase its earnings. Reliance comm. also shows
the similar trend in debt equity ratio i.e. increased debt financing leading to more
earnings and increased earnings leads to happy shareholders as their wealth is
being maximized.
3.4.3 Times Earned Interest
Times Interest Earned or Interest Coverage is a great tool when measuring a
company's ability to meet its debt obligations. When the interest coverage ratio is
smaller than 1, the company is not generating enough cash from its operations
EBIT to meet its interest obligations. The Company would then have to either use
cash on hand to make up the difference or borrow funds. Typically, it is a warning
sign when interest coverage falls below 2.5.
0.26
1.16
1.36
0.69
0.96 0.97
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Mar-10 Mar-11 Mar-12
Debt Equity Ratio
Bharti Airtel Reliance Communications

51. 47
Table 18 Bharti Airtel Reliance Communications
Mar-10 Mar-11 Mar-12 Mar-10 Mar-11 Mar-12
Revenue 42,956.64 61,189.30 69,729.10 27,432.81 23,119.73 20,382.00
COGS 24,785.08 39,495.80 47,800.90 14,110.37 14,026.06 13,892.00
Depreciation 6,199.41 8,698.00 13,368.10 3,746.51 8,511.58 3,978.00
EBIT 11,972.15 12,995.50 8,560.10 9,575.93 582.09 2,512.00
Interest 769.7 2,534.90 4,082.80 1,946.87 1,072.23 1,630.00
TimesInterest
Earned 15.55 5.13 2.10 4.92 0.54 1.54
Interest cover has shown a decreasing trend for Bharti Airtel in past 3 years which
is due to the fact that EBIT has decreased in last three years and the interests have
increased many-folds, thus it can be said that Airtel‟s ability to meet its interest
obligations have decreased and now have reached the warning level after which the
company will be burdened with debt expenses. Similar trend is being shown by
Reliance communications also which has even poor performance than Bharti Airtel
in last three years, the company has not been able to generate enough revenue to
meet its interest obligations in year 2011, the performance improved in year 2012
but still it‟s quite low and it should take decisions to generate more revenue.
15.55
5.13
2.10
4.92
0.54
1.54
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Mar-10 Mar-11 Mar-12
Times Interest Earned
Bharti Airtel Reliance Communications

52. 48
Chapter 4
Research Projects,
Conclusions,
Recommendations
&
Key Learning’s

53. 49
4.1 Projects/Studies Description:
After learning about the various businesses of Airtel, its products and about the
telecommunication industry, major players, various products, services and the
packages offered by airtel and its competitors in the Uttar Pradesh-West Circle, the
main project work started. Throughout the project I had to interact with customers,
retailers, distributors, TSM (Territory Sales Manager), ZSM (Zonal Sales
Manager) and get their insights. After recording insights I used to analyze it and
extract the important information that would help the data marketing team and
managers in decision making.
Case 1: “Customer insights of the airtel users having GPRS compatible
handsets but not using the Internet”.
I had to collect the mobile numbers of such customers who were having the GPRS
handsets but were not using internet from their phones, from the Analyst of Data
Marketing Team and do the Tele-calling, to collect their feedbacks/ suggestions
and find the reasons for not using the internet from their mobile phones. Before
calling the customers I had to think and chalk-out a questionnaire (Questions that I
would ask the customers, Annexure I) so that I can record the customer feedbacks
and analyze them scientifically.
Finally, after selecting 100 random customers from the base of 60 lakh total Airtel
customers from Uttar Pradesh- West Circle and Tele-calling for recording their
insights, I had to prepare a One-Page Report with all the statistics, major reasons
and findings after analyzing the data collected from Tele-calling, I had to mail that
report to the manager and discuss the finding and outcomes.

54. 50
Case 1:Customer with GPRS EnabledHandsets, but not using Internet on
their handsets?
Customers Responses:
Actual Response
Count
of
Mobile
nos.
Percentage
Use office internetornetfromothersources. 10 20%
Use otherairtel numberforinternet. 10 20%
Don't needinternet 10 20%
Don't knowhowto use internet 9 18%
Use othernetworkforinternet 8 16%
Airtel packagesare expensive 2 4%
Don't knowaboutfeaturesof hisphone 1 2%
Successful calls 51%
AnalyzedResponse Count Percentage
Got Anothernumberforinternetuses 23 45%
Use Dongle forinternet 12 24%
Got Leasedline/Broadband 7 14%
Customersusingsame handsetasearlier(50Customersreplied) 12 24%
Summarized Conclusions:
 22% of the numbers were corporate/CUG/Company‟s numbers, so owners
don‟t use internet on that, just for SMS and calling purpose.
 In total 56% customers used internet from other number or other sources,
24% users have got internet dongle (From Airtel, Reliance and Idea) for
internet uses and 14% use leased line or broadband.
 45% customers had another number/connection for internet uses and 18%
customers want to use internet but don‟t know how to use internet.

55. 51
 4% customers replied, Airtel internet packs are not as attractive as
competitors and are expensive.
 57% of customers changed their handsets, All of them used Chinese
handsets (Like: Lava, Karbonn, Micromax etc.) and 24% didn‟t knew which
handset they are using.
Case 2:“Why the Customers using Rs. 5 to Rs. 25 net packs nevermigrated to
higher value vouchers?”
I had to sort out the customers using net packs only in the range of Rs. 5
to Rs. 25 from past 2 months or from past 5-6 recharges and I randomly
selected 110 customers from such base and thought from the perspective
of such customers and noted down the basic reasons for not using larger
packs and finding few most popular use of internet by such customers and
based on that I prepared a format in Excel sheet to record the answers.
Then I started Tele-calling those customers and recording their insights
(based on Annexure II), limitations and reasons for not using higher value
net packs.
At the end of the week I Prepared a one-page report and discussed with
the manager and there were some points which were noted by him for
making few changes to the products based on the study conducted.

56. 52
Case 2: Why do the Customers use Rs 5/25 internet Packs?
Customer Responses:
AnalyzedResponse Count of Mobile No.
Percentage
Non-regularuser 25 50%
Can't affordlargerpacks. 5 10%
Will getlargerpacks now 3 6%
Regularuser,gotsmallerpackdue to urgency 3 6%
Smallerpacksservespurpose 3 6%
use smallerpackbecause of lesservalue 2 4%
Networkproblem 2 4%
Uses otherInternetservice provider(Like:Idea,BSNLetc.) 2 4%
Successful calls 46%
Other Reasons:
1. Unaware of larger recharge voucher benefits.
2. Uses small packs because more affordable.
3. New user, don’t get Proper airtel signals. So will switch to Vodafone 3G.
4. Temporarily using this number. Sometimes gets problems in getting internet settings.
CustomerResponse Count Percentage
Trusted mode to getinformationabout
net packs
Count Percentage
Songs 42 84% AskRetailers 30 81%
Games/Software’s 33 66% Has beenusingsame packfrom longtime. 4 11%
Videos 37 74% Promotional SMS/callsfromairtel 2 5%
Use Data Card 12 24%
Printmedialike:posters,banners,
newspapers
2 5%
Facebook 25 50% TV ads 1 3%
Emails 23 46% CustomersReplied 37 50%
Surfinginternet 36 72%
Wallpapers 28 56%
Whatsapp /IM’s 8 16%
Broadband/Others 1 2%

57. 53
Summarized Conclusions:
 50% Non-regular users of internet or don‟t require internet always.
 75% customers (on an average) used internet sometimes only to download
songs/games/ software‟s.
 10% customers replied they can‟t afford larger value net packs, 6%
customers will now get larger packs.
 81% customers trust asking retailers about net packs and new recharges.
*(Most of them were Students, workers-not very educated.)
Case 3: Customers Insight of airtel users, earlier using net packs but now
migrated to VBC (Very Basic User).
The aim of this study was to find the answer to the question “Why the
customers earlier using net packs, now migrated to VBC i.e. using internet
without net packs?”
I had to get the numbers of customers who were earlier using net packs
from last 2 or 3 months (February, March and April) but were using
internet of more than Rs. 20 per month in the month of June. And after
charting out the plan to interact with such customers I tele-called them and
recorded their feedbacks and prepared a report and discussed with the
manager.

58. 54
Case 3: Why Customers using Packs migrated to VBC?
Customers Responses:
Actual Responses
Count of Mobile
No.
Percentage
Unaware of balance deduction 14
12.5%
Don't require regularinternetanymore. 16
14%
Others 11
10%
Was unaware that hisphone automaticallyusedinternet.Didn't
require internetsononetpack.
4
4%
Percentage of Successful calls 52%
AnalyzedResponses
Count of Mobile
No.
Percentage
Unaware of data limit/packexpired 16 14%
Don’trequire all-timeinternetanymore 16 14%
Unaware of internetuses 13 12%
Don’tmindgettingcharged,as don’tuse often 7 6%
Roaming 2 2%
Networkproblem 1 1%
Summarized Conclusions:
 14% customers replied they don‟t need all-time internet anymore.
 6% customers didn‟t mind getting charged more for using internet without
any net packs and were not bothered for being charged more.
 12% customers were unaware of internet uses from their numbers and 12.5%
were unaware of balance deductions for internet uses.
 14% customers were unaware that their data limit/net pack has expired and
kept of using internet and were charged.
They requested that there must be some kind of notification regarding data
limit and validity be given before the moment it‟s about to end or expire.

59. 55
Case 4: Find a trend and insight of highly engaged mobile internet users.
Second half of the 4th
Week was dedicated to the study of highly engaged
mobile internet users and finding a trend in their uses.
For this study I selected a sample of 110 customers randomly who were
getting the recharge packs of Rs. 199 (i.e. 2GB data 30 days validity)
regularly from last 3 months. At the end of the week after analyzing the
data collected, I prepared the report and mailed to the manager and
discussed its findings and the steps that could be taken to bring back such
customers to use net packs.
Internet uses of highly engaged customers
Feedbacks Count Percentage
FullySatisfied 5 20%
Slowspeedevenbefore 2GB(Earlierwasgettingbetterspeed) 5 20%
Satisfied 5 20%
Neutral 4 16%
ConcernedwithSlowspeedafter2Gb 2 8%
Slowspeed,wants3G 1 4%
Slowspeed,want3G unlimitedplan 2 8%
Airtel packagesare little costly. 1 4%
Successful Calls 40%
Count Percentage
Mostly Yes Rarely No Mostly Yes Rarely No
Facebook/ twitter etc. 17 2 3 3 68% 8% 12% 12%
E-mails 11 7 3 4 44% 28% 12% 16%
Youtube 1 4 12 8 4% 14% 48% 32%
Whatsapp / Wechat/ other apps 20 1 0 4 80% 4% 0% 16%
Download Games/Apps 9 7 3 6 36% 28% 12% 24%
Wallpapers/Pictures 1 5 5 14 4% 20% 20% 56%
Songs/ videosDownload 12 5 5 3 48% 20% 20% 12%
News,Blogs 1 13 0 11 4% 52% 0% 44%
Dongle/ data card 0 2 0 23 0% 8% 0% 92%

60. 56
Summarized Conclusions:
(Random Customers using RC 199 (2 GB unlimited 30 days validity) from last 2-3
months regularly were called and queried for their internet uses.)
 96% of the customers used branded smartphones, mainly from brands like:
Nokia, Samsung, HTC and Blackberry, while 4% customers used Chinese
handsets.
 80% of customers use internet for apps like Whatsapp, Wechat etc. from
their phones.
 77% customers (on an average, including „mostly‟ and „yes‟ category)
mainly get internet to use Facebook, check mails, and use apps on their
smartphones.
 92% of customers used their number only on their smartphones, while 8%
used on both dongles and smartphones.
 Ranking internet uses based on the statistics of uses:
1. Whatsapp, Wechat etc. android/Windows/Symbian applications. (84%)
2. Social networking sites like: Facebook, twitter. (76%)
3. Checking mails. (72%)
4. Downloading songs and videos. (68%)
5. Downloading games and apps. (64%)
6. Reading news, blogs, match scores. (56%)
7. Downloading wallpapers/ Pictures. (24%)
8. Streaming videos from sites like: YouTube. (18%)
 All the 100% customers, apart from above mentioned uses, used their
devices for searching and surfing also.

61. 57
Case 5: Market Visit to Modinagar- Muradnagar Area of UP-West Circle
For this study I had to visit to the retailers and the customers of Airtel in
the Modinagar- Muradnagar area, which comes under the Meerut zone of
UP-West circle. I had to interact with the retailers and the customers and
get their insights on two airtel products:
a) Airtel Money
b) Airtel Mobile Internet
I prepared a questionnaire for interacting with the retailers and the
customers to get their insights and views on the both airtel products.
During the week I also observed how the products (Sim cards, coupons,
vouchers, promotional banners/posters etc.) reach to the end distributors
and retailers. During the visit I also had to study the products of
competitors (Vodafone, Idea, Docomo, Reliance) their offers and
promotional schemes in the Modinagar and Muradnagar area which has a
large number of colleges and so youth customers. In this study the insights
are mainly from the youths and college students.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
mostly
no
rarely
yes

62. 58
Airtel Money
Retailers Insights and feedbacks from Modinagar:
1. Awareness
 Almost all the retailers have heard about the Airtel Money, but very few
actually knew all the use-cases and used them.
 All the stores with the facility for Airtel money had posters/banners for
Airtel money.
 Almost all the stores with Airtel Money option had a FOS with all the
awareness about Airtel money, but mostly other employees or even shop
owners didn‟t knew all the use-cases.
 Summarizing all, it was clearly observed that Retailers didn‟t show much
interest in Airtel money.
2. Is it available at your store?
 25% of retailers had the Airtel Money available on their stores.
3. What all use-cases do you know and pitch to customer?
 Mostly the retailers were aware of all the use-cases i.e. Recharges, Postpaid
Bill Payments, Transactions, DTH Bill Payments. Booking tickets option of
Airtel money is the least popular and least used.
 Whenever a customer queried about Airtel Money, the retailer/FOS
communicated about:
 More than Full Talktime for phone recharges i.e. TT 50 in Rs.50, TT
110 in Rs. 100, 1.25 GB (2G Data) in Rs. 125 (These were the most

63. 59
popular), other recharges used were TT 550 in Rs. 500 and TT 1100 in
Rs. 1000.
 DTH, Postpaid bill payments (Other than Reliance).
 P2P and P2B money Transfer.
4. How do you perceive IRCTC Ticket Booking through Airtel Money?
 Only a few Retailers were aware about IRCTC ticket booking from 1st
July
and those who knew showed cold response and replied will see when its
available and a very few were excited and were eager to use.
5. Other Feedbacks and suggestion____________
 1% charge for money transactions is more, as banks don‟t charge anything.
 While using airtel money USSD, if the user gets a call he/she has to start all
over again.
 Not able to Recharge Reliance DTH.
 For phone recharges through airtel money 0.5% payout is very less.
 While transferring money customers hesitate at first and are more
comfortable in using banks.
 Very few customers ask themselves about airtel money.
Customers Insights and feedbacks from Modinagar:
1. Awareness
 There was a mixed awareness about Airtel Money among youths, as mostly
the customers have heard about it, but didn‟t use.
 There were few customers who knew all the use-cases and used them
comfortably and without any hesitation.

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2. Use-cases popular among college students?
 The Most Popular use-cases of Airtel money based on their uses are:
 Recharging phones, because of more than full talk time.
 Postpaid bill payments.
 No-one was aware about IRCTC ticket booking through Airtel Money.
3. How do you perceive IRCTC, Bookmyshow ticket bookings on Airtel
Money?
 There was not much interest in booking movie tickets through Bookmyshow
(only a few used).
 Booking Railway tickets through Airtel money made most of the customers
very excited and they were very eager to use and queried a lot about it.
 How much will airtel charge per ticket for booking railway ticket‟s
through airtel money? *
 After ticket booking, in how much time and how will I get by ticket?
(To which I said SMS and instantly after booking tickets you will get
confirmation)
 Will I be able to access previous history of booked tickets, how?
 Can I check my PNR status through airtel money? *
 Will I be able to book “Tatkal tickets” faster? *
 How will airtel money behave while booking Tatkal tickets? *
(* Questions marked with * were very common and asked by many customers)
(One girls PG College opens on 1st
July and other six GBTU colleges opening on
22nd
July 2013.)

65. 61
4. Suggestions to make Airtel Money more popular among youths_____
 More Promotions about how to use Airtel Money.
 1% charge for transactions is quite more, if I have to transfer Rs. 5000, then
I will have to pay Rs 50 to airtel, it‟s better to go to a bank and deposit it for
free.
 If I use airtel money, I will have to keep balance in my airtel money account
which I can‟t use everywhere, I have to keep cash for other uses and so it‟s
like blocking my money just for recharge, which I can get anywhere easily.
 While using airtel money USSD if I get a call, I will have to start all over
again, is there any way that after the call I just start from where I left?
Observations about net packs in Modinagar:
 Aggressive Campaigning and exciting offers from competitors:
 Most selling internet pack in the region is from Docomo:
o Rs 250 recharge offering: 1GB (unlimited) 3G +220 TT.
o Rs 104 recharge offering: 1GB data (2G) + 1GB music from
saavn.com.
 Most selling internet pack with 7 day validity was from Vodafone:
o Rs 25 and Rs 24 net packs offering 500MB (2G), whereas Airtel offers
only 150MB in that amount.
 Other exciting offer was from Idea, on purchase of 6 Coupons of Rs. 15 get
1 coupon for free.
 Other popular net pack from Idea was RC 249 offering 1GB 3G with 30
days validity because of very good speed.

66. 62
 Most selling Airtel Net Packs:
 RC98 and RC125
 Customers were unhappy as now they had to pay Rs. 125 for same benefits
which they were earlier getting in Rs. 98.
 Network Problem:
 Many Retailers and Customers complained that Airtel Internet is very slow.
 Customers get full network and are able to use internet more comfortably
when outside the room (or on terrace), but not from inside their homes,
rooms or shops.
 In campus of “DJ college of Engineering” Airtel‟s 3G is not working at all,
very poor performance.
 Retailers Feedback:
 The most popular FRC‟s among customers are: FRC 175 (1GB Data), FRC
202 (1GB + 25 TT) and FRC 275 (1GB + 100TT).
 Airtel‟s 2G PRC-25 is not being sold at all and distributors have forcefully
made the retailers to have them and sell even though no demand.
 Retailers are dis-satisfied by the dis-continuance of ATM, like earlier they
were getting Rs. 50 on FRC 175 and Rs. 88 on FRC‟s 202,275,345 and 495.
 Handmade 2G and 3G offers were displayed on almost every shop.

67. 63
Case 6: Study of Dongles and Internet Devices Market
The last week of the internship was fully devoted to the study of Dongles/
Internet devices market. I had to visit to the Retailers and stores of various
cellular operators like: Vodafone, Idea, Aircel, Reliance, Airtel in the area
of Indirapuram (Ghaziabad) and Sector 18 Noida and prepare a report on
the various types of dongles/ internet devices offered in the market
(Locked/ Unlocked, CDMA, GSM etc.) their price range.
Later half of the week was spent in getting detailed information about the
marketing operations of dongles from major cellular service providers. The
important information about Device billing prices from distributors to
retailers, FRC‟s (First Recharge), Activation margins, benefits offered to
customer etc. was collected from all four zones of UP-West i.e. Agra,
Dehradun, Bareilly and Meerut by talking to Retailers, TSM‟s (Territory
Sales Manager), ZSM‟s (Zonal Sales Manager) and a comparative analysis
is done on the sale of Dongles and devices market.
Major Dongle Selling Operators in NCR
Company
Normal
Internet
Speed
Quality of
Network
Tariff Plans
Customer
Support
Approx. Price
GSM
Airtel 3-5 Mbps Excellent3G Affordable Good Rs. 1200 Onwards
Vodafone 3-5 Mbps Excellent3G Affordable Good Rs. 1500 Onwards
BSNL 3-3.5 Mbps Good 3G Cheaper Fine Rs. 1600
Aircel 3-5 Mbps
Good 3G, Poor
inroaming Cheaper Average Rs. 1650
Idea 3-5 Mbps Excellent3G Affordable Average Rs. 1300
CDMA
Tata Photon 4-5 Mbps Good Affordable Good Rs. 1250
Reliance NetConnect 3-4 Mbps Good Cheaper Average Rs. 1300 Onwards
MTS M-Blaze 2-4 Mbps Average Cheaper Average Rs. 1500

68. 64
Dongles Market Survey
 Most popular brands offering unlocked data cards/internet dongles are:
o Huawei
o Micromax
o I-Ball
o D-Link
o Beetel
o Alcatel
The devices offered by these companies are in the price range of Rs. 1300 to
1600.
 The main features which are sought by customers while purchasing device are:
o Network Type
 GSM/ CDMA
 2G: GPRS, EDGE
 3G: UMTS, HSDPA
o Memory card support capacity i.e. 4GB, 8GB, 16GB and 32GB.
o Other Features:
 SMS/MMS
 Voice and Video call support
 Phonebook
o Maximum speed of the device (Like: 3.6 Mbps, 5.76 Mbps, 7.2 Mbps,
14.4 Mbps, 21 Mbps and 21.6 Mbps).
 Retailers make profits of around Rs. 250-600 on the sale of unlocked
dongles.

69. 65
Zone: Agra (Figures In Rs.)
Company
D to R
billing
price
FRC Benefits ATM/OTF Activation Margin
Net
Landing
(SellingPrice)
MOP
Airtel 1635 495 3 GB 30 days 88 - 2042 2050
Idea 1100 175 1GB 30 days 60 75 1140 1600
Docomo 1535 298 3GB 30 days 125 - 1708 1850
Reliance 850 included 10GB 30 days included included 850 999
Photon 1250 350 10 GB 30 days 275
150 points per FRC, on
7500 Points an LCD TV
1300
On sale
of (Per
Dongle)
2 photons 125 1200
4 photons 150 1175
Zone: Bareilly
(FiguresIn Rs.)
Company
D to R
billing
price
FRC Benefits ATM/OTF Activation Margin
Net
Landing
(Selling
Price)
MOP
Airtel 1545 495 3 GB 30 days 88 on 6 dongle Rs.350 scheme 1,602 1800
Idea 1450 450 3 GB 30 days included 450 FRCincluded 1450 1800
Docomo 1000 - - - - - 1600
Reliance - - - - - - -
Photon 1250 350 10 GB + 4 GB 275 175 1150 1300
Zone Meerut (FiguresIn Rs.)
Company
D to R
billing
price
FRC Benefits ATM/OTF
Activation
Margin
NetLanding
(SellingPrice)
MOP
Airtel 1350 495
3GB 30
days
88 - 1757 1800
Idea 1250 450
unlocked
dongle
80
sell onlydevice,
FRC on demand
1250 1350
Docomo 1200 250
1GB +
225TT
88
sell onlydevice,
FRC on demand
1200 1500
Reliance 850 included
14GB 30
days
included included 850 1200
Photon 1200 300
14GB 30
days
100 included 1200 1550

70. 66
Zone Dehradun
(FiguresIn Rs.)
Company
D to R
billing
price
FRC Benefits ATM/OTF Activation Margin
Net
Landing
(Selling
Price)
MOP
Airtel 1635 202 3 GB 30 days 88 - 1749 1850
Idea 1150 175 1GB 30 days 58 included 1150 1600
Docomo 1250 250 88 19 1,393 1600
399 105 19 1,525 1750
499 175 19 1,555 1850
Reliance 1000 included
14 GB 30
days included included 1000 1200
Photon 1250 350
14 GB 30
days 301 19 1299 1800
Zone
Most SellingUnlocked
Dongles
Billing
Selling Price
(FiguresIn Rs.)
Agra Ideaunlocked 1300 1700
Airtel unlocked 1250 1600
Bareilly idea 1100 1300
micromax 900 1300
Meerut intex 950 1100
micromax 1350 1500
idea 1200 1500
Dehradun Micromax 1100 1400
Feedbacks and Suggestions:
 Airtel Dongles are most expensive as compared to devices from Idea,
Docomo, Reliance and Tata photon.
 Idea dongles are cheap and good performance and are the most sold ones.
 Airtel‟s FRC 495 is the most popular among customers.
 Retailers usually get unlocked dongles in the price range of Rs. 900-1300
and sell them in price range of Rs. 1300-1700.
 Idea is the closest competitor of Airtel in Uttar Pradesh- West circle with
comparatively cheaper dongle prices and similar Data plans.

71. 67
4.2 Recommendations:
 Many customers didn‟t know how to use internet on their phones, a little
promotion (Like: posters, ads, interactive SMS i.e. guiding customer through
SMS etc.) for accessing internet from handsets can help in attracting those
customers who want to use internet from their phones but don‟tknow how to do
the same.
 Half of the customers using net packs between Rs. 5 and Rs. 25 are non-regular
internet users i.e. whenever they need internet; they get a small net pack
recharge. To attract this customer segment to higher value net packs a
promotional strategy can be done with the help of retailers as these customers
trust asking a retailer about any net pack more than any other means and 3/4th
of
these customers used internet to download songs, games, videos and software‟s.
Airtel can have posters at retailer‟s shops listing websites from where the
customers can download free songs, games, software‟s etc. by accessing
internet from their mobiles.
 Regular customers of larger value net packs have requested to get notified
before their net pack validity or data is about to expire, so that they can prevent
themselves from being charged and unaware balance deductions. The
notification can be through a SMS or Tele-call or any other means which
ensures customer gets notified even when he/she is using internet.

72. 68
 Customers using RC 199 net packs have informed that now they get very slow
speed after 2GB as compared to earlier i.e. earlier customers were getting better
speed after 2GB as compared to the speed they were getting now.
 Charges for money transactions through airtel money should be decreased
which is currently 1 % and customers find it expensive as banks do the money
transactions for free.
 Currently if a customer uses Airtel Money on his phone and he gets a call he
has to start all over again. Changes must be done in USSD so that customer can
start from the same point in airtel money where he left for picking the call and
doesn‟t have to start all over again.
 More promotions must be done to make Airtel money popular among customers
and promotions/ads must be made in such a way that they teach even
uneducated customers to access and use airtel money on their phone.
 In the UP-West circle the competitors have much more attractive net packs
available in the market compared to airtel (Discussed in Case 5) and also airtel
offers lesser data in its net packs. To attract more customers for using Airtel‟s
mobile internet, company must offer more data (at least comparable to
competitors, like: Vodafone offers 500 MB in Rs. 25 and Airtel Offers 150
MB).
 Airtel dongle prices are very high and they the most expensive in few circles.
So to increase dongles sales, Airtel must decrease its dongles prices. Idea is the
best player in dongles market in UP-W circle because of cheaper dongle prices.

73. 69
Key Learning’s
The last ten years has changed the landscape of the Indian telecommunications
world. Wireless teledensity dominates the Indian scene. Wireless Broadband shows
a lot of potential for India. The “prepaid” model has brought in more customers.
However, the spread of phones and Internet has been especially slow in the rural
areas.
Bharti Airtel is the leading wireless telecom operator in India both in terms of
customer base (181.3 million) and revenue followed by Vodafone and Idea cellular
and the main reason behind this great success is the Airtel‟s vision i.e. “To become
the most loved brand by 2015”.
Airtel offers its customers access to quality network and services all across India
and the offers from airtel are not just demand driven, but are more motivated to
fulfill the customer needs. Today the customers are willing to pay more if they get
what they want i.e. better services and Airtel is offering them the same.
The most important learning from this project is that, in today‟s competitive world
if one has to survive and excel, he/she must make customer its focus to provide
them more than their expectations. But how do we know what a customer wants?
The answer to that question is the market research and customer insights which
provide us the data for taking informed decisions.
The internship also helped me to learn the working the Airtel and especially the
working of its marketing department. I have understood how to present a report
and presentation to the manager. I have learnt the value of time and deadlines in
the company. Handling such a huge and sensitive data always demand high sense
of responsibility and concentration as many things are at stake depending on the
decisions made by a manager. I also learned to extract important information from
a large chuck of data available and use it.
At the end I can say that it has been a great experience for me and this internship
helped me realize my potential and realize that I can go to any extend to
accomplish my work if I enjoy it.

74. 70
Annexure I
Questionnaire for getting the (Case 1) Customer insights of the airtel users having GPRS
compatible handsets but not using the Internet.
Q.1. Sir/Mam you have got GPRS compatible handset (i.e. you can use internet on your mobile
phone) but you don‟t use internet on your phone, why?
a. Don‟t need internet.
b. Don‟t know how to use internet.
c. Use office internet or other source.
e. Any other Reason
Q.2. Do you use the same handset when first time used this airtel number or changed your
handset?
a. Use same handset b. Changed Handset
Now, if the customer uses internet from any other source or connection then asking these
questions for further details.
Q.3. Do you have leased line or broadband for internet access or use internet from mobile but
some other service provider? (If the customer uses internet from other source)
a. Yes, have got broadband/ leased line.
b. No, Use internet from mobile or data card.
Q.4. Do you have any other number for internet uses?
a. Other airtel connection b. Use other service provider SIM for net use
Q.5. Do you use dongles or data card for internet uses?
a. Yes b. No
Q.6. Any Other Feedback or Suggestion ____________________________________________.

75. 71
Annexure II
Questionnaire for Case 2 study i.e. Why the Customers using Rs. 5 to Rs. 25 net packs
never migrated to higher value vouchers?
Q.1. Sir/Mam why do you always use smaller net packs i.e. of Rs. 5 to Rs. 25, but never higher
value net packs which come with month long validity and more benefits?
Q.2. Do you use internet from any other source also, like: Data Card or broadband/Leased line?
a. Yes b. No
Q.3.What are the most popular uses of internet for you (Multiple options allowed)?
a. Facebook
b. Check mails
c. Surfing internet
d. Watch/ download Videos
e. Listen/ download Songs
f. Download Games/ Software‟s
g. Watch/ download wallpapers
h. Use apps like Whatsapp, wechat etc.
Q.4. What is the most trust way for getting information about net packs available in the market
(as per you):
a. Ask Retailers/ view promotional displays on retailer‟s shops.
b. Print media like: newspapers, banners, posters.
c. TV or radio advertisements
d. Promotional SMS/ Calls from the company
e. Any other way
Q.5. Any other feedback or suggestion _____________________________________________.

76. 72
Annexure III
Questionnaire for (Case 3) Customer Insight of airtel uses earlier using net packs but now
migrated to VBC (Very Basic User).
Q.1. Sir/Mam, you were earlier using internet by getting net pack recharges in last few months
but now you have started using internet without net packs, what is the reason for that? Is
there any problem that you are facing?
a. Don‟t require regular internet anymore
b. Switched service provider for internet uses
c. Was in roaming and required to use internet, so charged
d. Forgot to get recharge and was charged
e. Any other reason
Q.2. Were you aware that you have been charged for using internet?
a. Yes b. No
Q.3 Was charged because while using internet Data limit or the net pack expired or validity
ended?
a. Yes b. No
Q.4. Is there any kind of network problem that you are facing or problem with internet speed that
you get?
a. Yes b. No
Q.5. Don‟t mind getting charged more and using internet without any net packs
a. Yes b. No
Q.6. Any other feedback or suggestion _____________________________________________.

77. 73
Annexure IV
Questions asked for finding insight and trend in internet uses of highly engaged mobile
internet users (Case 4).
Q.1. Do you use this airtel number for internet uses on only mobile or also on data card/dongle?
a. Only on mobile
b. Also in data card
Q.2. Which handset do you use? Is that a smartphone?
Q.3. Do you use internet to visit social networking sites like facebook, twitter etc.?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.4. Do you use internet to sending/ receiving and checking e-mails?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.5. Do you use internet to stream/ watch videos from sites like youtube.com?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.6. Use internet for applications like Whatsapp, wechat and other apps in the smartphone
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never

78. 74
Q.7. Do you use internet for downloading games and applications?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.8. Do you use internet for viewing/ downloading pictures or wallpapers?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.8. Do you use internet for Downloading Songs and videos?
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.9. Surfing internet, reading news, blogs and other internet uses____
a. Mostly, more than once in a day
b. Yes, once in a day
c. Rarely, 1 or 2 times in a week
d. No, Never
Q.10. Any other feedback or suggestion (like: network problem, net packs, internet settings etc.)
_______________________________________________________________________.

79. 75
Annexure V
Questions asked to the retailers on the site visit in Modinagar and Muradnagar area of
Meerut zone of UP-West circle (Case 5).
Q.1. Do you know about airtel money? What all use-cases do you know? How much are you
aware about Airtel money?
Q.2. Is Airtel money available at your store?
Q.3. What all use-cases do know and use? What all use-cases do you usually pitch to the
customers?
Q.4. From 1st
July Airtel Money will have the option to book the Railway tickets, how do you
perceive it?
Q.5. Any other feedback or suggestion related to airtel money ___________________________.
Questions asked to customers on the site visit in Modinagar and Muradnagar area of
Meerut zone of UP-West circle (Case 5) (Questions limited to youths only).
Q.1. How much are you aware about Airtel Money? Which use cases do you find most useful
and attractive?
Q.2. Which use-case is most used by you and which use-case do you find most attractive? Q.3.
How do you perceive the option of booking movie tickets or making railway reservations
through airtel money?
Q.4. From 1st
July Airtel Money will have the option to book the Railway tickets, how do you
perceive it? Will you use it? Will that be useful to you?
Q.5. Give some suggestions to make Airtel Money more popular among youths and college
students?

80. 76
Questions asked to the retailers and customers on the site visit in Modinagar and
Muradnagar area of Meerut zone of UP-West circle (Case 5).
Q.1. Which service provider is the most popular for using internet in your market (Modinagar
and muradnagar area)?
Q.2. Why is other service provider more popular? What are the various popular net packs from
competitors like: Idea, Vodafone, Reliance etc.?
Q.3. Which is the most selling net pack of Airtel and also the most selling net pack of other
service provider?
Q.4. Do you have any complaints with Airtel internet services or network problem, internet
speed, net packs available etc.?
Q.5. Any other feedback or suggestion _____________________________________________.
Annexure VI
Questions asked to TSM’s and retailers for studying of dongles/ internet devices market in
UP-West (Case 6).
Q.1. What is the distributor billing for each dongle to you (retailer)?
Q.2. Which FRC do you usually perform on the sale of a new dongle?
Q.3 What are the benefits that the customer gets from the FRC or on purchase of new dongle?
Q.4. Do you get any activation margin from the company? If Yes, What?
Q.5. At what price do you finally sell the dongle to the customer?
Q.6. Do you also sell unlocked dongles? If yes, which dongles do you sell the most?
Q.7. What is the price at which you get the unlocked dongles and what is the selling price of the
unlocked dongles?
Q.8 Any other feedback or suggestions _____________________________________________.

81. 77
Annexure VII: Table 16-Consolidated Balance Sheet
Bharti Airtel Reliance Communications
In Rs. Crore Mar '12 Mar '11 Mar '10 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
Sources OfFunds
Total Share Capital 1,898.80 1,898.80 1,898.77 1,032.00 1,032.01 1,032.01
Equity Share Capital 1,898.80 1,898.80 1,898.77 1,032.00 1,032.01 1,032.01
Employee Stock Option 0 0 261.96 0 0 0
Reserves 48,712.50 46,868.00 37,716.06 35,264.00 39,467.17 42,328.63
Revaluation Reserves 0 0 2.13 0 0 0
Net worth 50,611.30 48,766.80 39,878.92 36,296.00 40,499.18 43,360.64
Secured Loans 12,089.30 7,670.50 4,958.43 32,846.00 21,692.84 3,000.00
Unsecured Loans 56,933.90 48,979.60 5,329.71 2,339.00 17,378.54 26,715.42
Total Debt 69,023.20 56,650.10 10,288.14 35,185.00 39,071.38 29,715.42
Minority Interest 2,769.50 2,856.30 2,855.53 860 824.47 658.39
Total Liabilities 122,404.00 108,273.20 53,022.59 72,341.00 80,395.03 73,734.45
Application of Funds
Gross Block 133,582.10 128,874.30 72,116.34 96,742.00 86,837.52 83,662.90
Less: Accum.
Depreciation
0 0 21,267.28 25,281.00 27,340.57 19,067.10
Net Block 133,582.10 128,874.30 50,849.06 71,461.00 59,496.95 64,595.80
Capital Work in Progress 0 0 2,435.94 5,026.00 18,191.22 11,655.65
Investments 1,815.60 622.4 5,162.07 652 569.75 4,159.89
Inventories 130.8 213.9 48.39 566 517.16 544.63
Sundry Debtors 6,373.50 5,492.90 3,182.48 3,584.00 3,984.00 3,311.67
Cash and Bank Balance 2,030.00 883.9 1,010.74 550 4,866.34 558.03
Total Current Assets 8,534.30 6,590.70 4,241.61 4,700.00 9,367.50 4,414.33
Loans and Advances 13,129.60 10,345.40 5,653.23 10,426.00 7,097.26 8,237.78
Fixed Deposits 0 73.6 1,567.90 0 0 260.51
Total CA,Loans &
Advances
21,663.90 17,009.70 11,462.74 15,126.00 16,464.76 12,912.62
Current Liabilities 33,804.60 38,115.20 15,573.92 16,434.00 10,968.57 15,562.84
Provisions 853 118 1,313.29 3,490.00 3,359.08 4,026.67
Total CL & Provisions 34,657.60 38,233.20 16,887.21 19,924.00 14,327.65 19,589.51
Net Current Assets -12,993.70 -21,223.50 -5,424.47 -4,798.00 2,137.11 -6,676.89
Total Assets 122,404.00 108,273.20 53,022.60 72,341.00 80,395.03 73,734.45
Contingent Liabilities 21,526.60 16,509.40 4,863.86 1,067.00 2,244.12 3,125.74
Book Value (Rs) 133.27 128.42 104.32 175.85 196.21 210.08

82. 78
Annexure VIII: Table 17-Consolidated Profit & Loss
account
In Rs. Crores Bharti Airtel Reliance Communications
Mar '12 Mar '11 Mar '10 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 71,505.80 59,467.20 41,829.46 19,677.00 22,430.35 23,902.15
Net Sales 71,505.80 59,467.20 41,829.46 19,677.00 22,430.35 23,902.15
Other Income -1,776.70 1,722.10 1,175.06 705 689.38 3,530.66
Stock Adjustments 0 0 -47.88 0 0 0
Total Income 69,729.10 61,189.30 42,956.64 20,382.00 23,119.73 27,432.81
Expenditure
Raw Materials 0 816.9 38.01 93 132.28 122.73
Power & Fuel Cost 0 0 3,597.38 1,662.00 1,579.26 1,509.43
Employee Cost 3,515.90 3,278.40 1,702.55 1,283.00 1,475.71 1,500.67
Other Manufacturing
Expenses
25,495.90 20,188.10 6,903.49 7,897.00 7,564.81 5,960.63
Selling and Admin Expenses 7.4 5,550.50 10,792.60 0 0 4,752.38
Miscellaneous Expenses 18,781.70 9,661.90 1,751.05 2,957.00 3,274.00 264.53
Total Expenses 47,800.90 39,495.80 24,785.08 13,892.00 14,026.06 14,110.37
Operating Profit 23,704.90 19,971.40 16,996.50 5,785.00 8,404.29 9,791.78
PBDIT 21,928.20 21,693.50 18,171.56 6,490.00 9,093.67 13,322.44
Interest 4,082.80 2,534.90 769.7 1,630.00 1,072.23 1,946.87
PBDT 17,845.40 19,158.60 17,401.86 4,860.00 8,021.44 11,375.57
Depreciation 13,368.10 8,698.00 6,199.41 3,978.00 8,511.58 3,746.51
Other Written Off 0 1,508.60 355 0 0 0
Profit Before Tax 4,477.30 8,952.00 10,847.45 882 -490.14 7,629.06
Extra-ordinary items 282.6 38.5 52.81 0 122.29 -28.24
PBT (Post Extra-ord Items) 4,759.90 8,990.50 10,900.26 882 -367.85 7,600.82
Tax 2,542.80 1,817.50 1,533.92 -106 11.79 2,823.38
Reported Net Profit 2,217.10 7,173.00 9,366.35 988 1,505.82 4,777.44
Minority Interest 0 0 198.39 61 150.27 119.25
Share Of P/L Of Associates 0 5.7 4.83 -1 9.9 3.19
Net P/L After Minority
Interest & Share Of
Associates
1,934.50 7,128.80 9,110.32 928 -674.2 4,720.71
Total Value Addition 47,800.90 38,678.90 24,747.07 13,799.00 13,893.78 13,987.64
Equity Dividend 379.8 379.8 379.79 52 103.2 175.44
Corporate Dividend Tax 61.6 61.6 64.55 8 17.14 29.14
Per share data (annualised)
Shares in issue (lakhs) 37,975.30 37,975.30 37,975.30 20,640.27 20,640.27 20,640.27
Earning Per Share (Rs) 5.84 18.89 24.66 4.79 7.3 23.15
Book Value (Rs) 133.27 128.42 104.32 175.85 196.21 210.08

83. 79
Annexure IX: Table 18-Cash Flow Statement
Bharti Airtel Reliance Communications
In Rs. Crores
Mar
'12
Mar
'11
Mar '10
Mar
'12
Mar
'11
Mar
'10
12 mths 12 mths 12 mths 12 mths 12 mths 12 mths
NetProfit Before Tax 6956.2 8725.8 10699.3 155 -859.51 619.47
Net Cash From Operating Activities 11437.8 13215.4 12692.63 3338 725.56 1043.88
Net Cash (used in)/from
-
12611.8
-19075 -10601.7 -2115
-
2800.94
4339.32
Investing Activities
Net Cash (used in)/from Financing
Activities
1400.8 5646.5 -2539.32 -4859 5807.12
-
5868.66
Net (decrease)/increase In Cash and
Cash Equivalents
226.8 -213.1 -448.35 -3636 3731.74 -485.46
Opening Cash & Cash Equivalents 128 341.5 789.88 3814 81.47 567.64
Closing Cash & Cash Equivalents 354.8 128.4 341.53 178 3813.21 82.18

84. 80
References:
1. http://www.airtel.in
2. http://en.wikipedia.org/
3. http://www.a-fresh-perspective.com/customer.html
4. http://www.trai.gov.in/Content/Publication_Category.aspx
5. http://www.moneycontrol.com/financials/
6. http://www.investopedia.com/
7. http://www.qfinance.com/cash-flow-management-calculations/liquidity-ratio-
analysis
8. http://financial-dictionary.thefreedictionary.com/Long-Term+Debt-to-
Equity+Ratio
9. http://www.readyratios.com/reference/accounting/earnings_per_share_eps.html
10.CMIE database