Chapter - 1

[1]

INTRODUCTION OF TELECOM INDUSTRY

In the early 1990s, the Indian government adopted a new economic policy aimed at improving

India's competitiveness in the global markets and the rapid growth of exports. Key to achieving

these goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai

and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are

further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C"

being the least attractive. The regulatory body at that time — the Department of

Telecommunications (DOT) — allocated two cellular licenses for each metro and circle. Thirty-

four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular

service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was

stipulated that no firm can win in more than one metro, three circles or both. The circles of

[2]

Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam

had only one bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok

Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The

government decided to set up TRAI to separate regulatory functions from policy formulation,

licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole

responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial burden on

the operators, diverting funds away from network development and enhancements. As a result,

by 1999 many operators failed to pay their license fees and were in danger of having their

licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy

[NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a

revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the

government.

[3]

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR

RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was be set by

several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of

these roadblocks / current position is tabulated below:

ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment

of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at over 60% per annum, while

businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5

major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all

operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making

roles vested in different bodies.

Issues relating to unfavorable interconnect terms for private operators, pass through income, intra

circle long distance, spectrum availability and allocation and the like remained unresolved for

long periods.

Interconnect terms since rationalized, risks on pass through income to DOT / BHARTI

(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in

methodology / revenue sharing, intra circle long distance allowed, spectrum availability cleared

with vacation of frequencies for usage by GSM operators.

[4]

Problems in Financial closures due to:

• Licensing tenure of 10 years

• Large up front cash requirements from promoters due to heavy license fee burden in

initial stages of deployment Asset based financing approach by Indian Financial

Institutions.

• Licensing tenure increased from 10 to 20 years

• Large up front cash requirements for license fee payments mitigated with migration to

revenue sharing mode allowing promoters to deploy more capital for capital expenditure;

project financing being considered by most financial institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of routine

allowing ease of entry / exit - paves the way for full control of businesses by foreign companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective

measures taken, market / subscriber base expected to zoom

[5]

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-line operators is still biased

against the former.

Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration

rate is still very low at 0.8 percent in a nation of over one billion people.

In recent years, many foreign companies had pulled out from their cellular joint ventures in India

due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out

from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of

Thailand and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in

Usha Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June

2001, British Telecom exited from Bharti Cellular. Bell South International has also indicated its

intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking

to sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued

commitment to Escotel is uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping

across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via

Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December

1999), Usha Martin Telecom (mid-2000) and Fascel (September 2000). Through a partnership

with local company, Kotak Mahindra Finance, Hutchison Whampoa practically controls Fascel

and Usha Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in

Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison

Max Telecom. Not to be outdone, Bharti Enterprises — another major cellular player —

acquired control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and

Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the

Punjab license of Essar and started operations, giving competition to the lone operator there,

Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into

one entity.

Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in

four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed

[6]

by Escotel with four, Hutchison with three, and Reliance and Idea cellular with one each. Bharti

and Hutchison have already commenced operations in all the circles while Idea is set to launch in

Delhi. Escotel and Reliance have not made any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started services in March 2001.

BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in

January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was

scheduled for 2 October 2002. However, this has been postponed until after mid October. Once

BSNL rolls out its service, most telecom circles will have four cellular operators. There will be

tremendous competitive pressure, which will result in lower tariffs. Future rate cuts are expected,

which will drive demand, together with falling handset prices and the introduction of prepaid

services.

In the midst of declining interest in technology stocks, Bharti came out with its long-awaited

initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service,

the company got a very good response from the primary market. The total size of the IPO was

185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times,

netting Rs8.3 billion. This will be used to fuel its investment in long-distance, basic and cellular

services.

As of October 2002, only BPL Mobile has launched commercial general packet radio service

(GPRS) in Mumbai. However, large-scale uptake remains elusive. While both Bharti and Idea

have GPRS-enabled networks, there is caution on their part to launch the service. With hardly

any applications, the success of GPRS remains a question.

Building visibility and awareness[7]

Deviating from competing on the price platform, cellular operators are actively promoting their

brand and service portfolio through high-visibility advertising and promotional campaigns.

Cellular operators like Bharti, Orange and BPL Mobile have been advertising aggressively on

hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry

the message of mobility.

Customer-focused activities are gaining traction among cellular operators with the establishment

of longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and

"Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare,

food and beverages, among others. Others offer special privileges in retail outlets, cinemas and

music shops.

Enterprise mobile applications — promising revenue stream

All along, customer acquisition and the top line have been the focus. Few operators have

concentrated on offering differentiated services for businesses. However, as operators realize that

offering basic voice and Short Message Service (SMS) will get them the numbers but not the

margins, some are now seriously looking at the enterprise segment for provisioning superior

services.

Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and

instant alerts are being offered.

A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the

process of introducing a facility to fleet management companies so that they can improve the

efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route

planning. Premium automakers are also installing a global system for mobile communications

inside a vehicle to help trace lost vehicles and track down stolen cars.

Corporations can choose enhanced services like user-defined call routing to prevent misuse.

Calls can be barred, limiting access to select numbers and diverting calls to one single number.

Broadcasting services are also quite popular, especially among fast food centers that have a

central number. Group SMS is quite popular, especially among enterprises both in the service as

well as the fast-moving consumer goods (FMCG) segment that have a large field force and need

to provide regular updates on inventory status, discount schemes and movement of goods from

[8]

warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward

transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly focus on differentiations to

maintain their lead.

• The implementation of enhanced networks like 2.5G will enable operators to offer data

services. This is an opportunity to customize and differentiate better.

• The entry of state-run operators like BSNL and BHARTI means that prices will no longer

be controlled, thus there is less chance of a cartel being formed.

• Network coverage in terms of geographic spread and quality of coverage is crucial

especially for the business subscriber.

• The bigger the service provider's national presence, the better it is for businesses. On the

roaming front, signing up with a national operator is advantageous.

• Limited mobility wireless in local-loop services (by fixed network service providers) will

be a disadvantage for cellular operators in the short term. Consequently, operators need to

streamline their customer relation activities and adopt aggressive subscriber acquisition

and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian Telegraph Act of 1885. A

document buried in the sands of time. The next major policy document, which was produced,

was the National Telecom Policy of 1994, a consequence of the on going process of

liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

[9]

1985 DoT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized

1994 Licenses for paging

1994 Telecom policy announced

September 1994 Guidelines for private sector participation in basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart from 4 metros

January 1995 Tenders for 2nd operator in basic services apart from DoT

on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather

than a series of action points. Like other policies, it sought to achieve the impossible in finite

time like improve quality of service and its availability, wide coverage (a phone in every

village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn

additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also

allowed private operators in value added services. To facilitate licensing, the nation was divided

into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in

Maharashtra circle and Delhi in itself a circle.

[10]

The basic premise on which competition has been introduced is that every circle will have one

private operator apart from DoT/ BHARTI for basic and two operators for cellular. DoT/

BHARTI have the option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic theme, which was broadening

the reach of telephony in India, has not been met. Even liberalization policies were not

implemented properly. The regulator TRAI was set up after delays and confusion and even after

its creation, DoT continued to fight with it in courts. It was also affected by the resource crunch,

and financing options like BOT, BOOT and BOLT was not used at all. The major policy

direction it showed was to allow private sector entry in both basic and value added services. The

intention, though noble failed to achieve its goals because of improper implementation, the

economic costs are still borne by the end user.

The telecom sector has witnessed some fundamental structural and institutional reforms in the

past decade. telecom equipment manufacturing was completely deregulated in 1991. Value-

added services (including cellular services) were thrown open to private sector participation in

1992. Basic services were opened to private participation in 1994 by dividing the country into 21

telecom Circles and allowing one private operator per Circle to compete with DoT. An

independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet

Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers

to enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT, separating

policymaking function and service provision and corporatization of DoT's operational network

are two major institutional reforms, which need to be implemented

[11]

CHAPTER -2

[12]

COMPANY PROFILE

Bharti Airtel Limited, commonly known as Airtel, is anIndian

multinational telecommunications services company headquartered in New Delhi, India. It

operates in 20 countries across South Asia, Africa, and the Channel Islands. Airtel has a GSM

network in all countries in which it operates, providing 2G, 3G and 4G services depending upon

the country of operation. Airtel is the world's second largest mobile telecommunications

company by subscribers, with over 275 million subscribers across 20 countries as of July 2013. It

is the largest cellular service provider in India, with 192.22 million subscribers as of August

2013. Airtel is the Second largest in-country mobile operator by subscriber base, behind China

Mobile.

[13]

Airtel is the largest provider of mobile telephony and second largest provider of fixed

telephony in India, and is also a provider of broadband and subscription televisionservices. It

offers its telecom services under the "airtel" brand, and is headed by Sunil Bharti Mittal. Bharti

Airtel is the first Indian telecom service provider to achieve CiscoGold Certification. It also acts

as a carrier for national and international long distance communication services. The company

has a submarine cable landing station at Chennai, which connects the submarine cable

connecting Chennai and Singapore.

Airtel is credited with pioneering the business strategy of outsourcing all of its business

operations except marketing, sales and finance and building the 'minutes factory' model of low

cost and high volumes. The strategy has since been copied by several operators. Its network—

base stations, microwave links, etc.—is maintained byEricsson and Nokia Siemens

Network [9]  whereas IT support is provided by IBM,[10] and transmission towers are maintained by

another company (Bharti Infratel Ltd. in India).[11] Ericsson agreed for the first time to be paid by

the minute for installation and maintenance of their equipment rather than being paid up front,

which allowed Airtel to provide low call rates of  1/minute (US$0.02/minute).[12] During the

last financial year (2009–10), Bharti negotiated for its strategic partner Alcatel-Lucent to manage

the network infrastructure for the tele-media business. On 31 May 2012, Bharti Airtel awarded

the three-year contract to Alcatel-Lucent for setting up an Internet Protocol access network

(mobile backhaul) across the country. This would help consumers access internet at faster speed

and high quality internet browsing on mobile handsets.[13]

History

[14]

Sunil Bharti 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. In 2001, the company

acquired control of 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 Hexacom 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. [14]

[15]

Airtel launched "Hello Tunes", a Caller ring back tone service (CRBT), in July 2004 becoming

to the first operator in India to do so. The Airtel theme song, composed by A.R. Rahman, was the

most popular tune on that year.[15]

On 26 February 2013, Airtel announced that it had deployed Ericsson's Mobile Broadband

Charging (MBC) solution and completely modernised its prepaid services for its subscribers in

India. As a part of the deal, Ericsson's multi service MBC suite allows prepaid customers to have

personalised profile based data charging plans. Prepaid customers will be able to customise their

data plans across mobility, fixed line and broadband by cross 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.[16] In May 2013, Bharti Infotel paid Rs 50,000 as compensation to a customer "for

unfair trade practices". The customer alleged that the company continued to aggressively demand

payment despite customer requests for disconnection of service.[17]

[16]

Vision

"As we spread wings to expand our capabilities and explore new horizons, the fundamental focus

remains unchanged: seek out the best technology in the world and put it at the service of our

ultimate user: our customer."

Bharti Vision

• By 2014 Airtel will be the most admired brand in India:

• Loved by more customers

• Targeted by top talent

• Benchmarked by more businesses

Bharti Enterprises (Airtel)Type Public, Listed on BSE

Founded 1985

Headquarters New Delhi, India

Key people Sunil Mittal

Industry Telecom

Products Mobile and Fixed-Line Telecommunication operator

Revenue USD 33.66 billion

Slogan Express Yourself

Website Bharti Group Airtel

Name Bharti Airtel Limited.

Business Description Provides mobile, broadband & telephone (fixed line) and enterprise

services (carriers & services to corporates)

Established July 07, 1995, as a Public Limited Company

Proportionate

Revenue

Rs. 184,202 million (year ended March 31, 2007-Audited)

Rs. 117,255 million (year ended March 31, 2006-Audited)

[17]

As per Indian GAAP Accounts

Proportionate

EBITDA

Rs. 74,407 million (year ended March 31, 2007-Audited)

Rs. 42,250 million (year ended March 31, 2006-Audited)

As per Indian GAAP Accounts

Shares in Issue 1,897,148,464 as at June 30, 2007

Listings The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)

Market

Capitalisation

Customer Base 50,908,636 GSM mobile and 2,106,122 broadband & telephone

(fixed line) customers (Status as at month ended October 31, 2013)

Operational

Network

Provides GSM mobile services in all the 23 telecom circles in

India, and was the first private operator to have an all India

presence.

Provides broadband (DSL) and telephone services (fixed line) in 94

cities in India.

Registered Office Bharti Airtel Limited

(A Bharti Enterprise)

Qutab Ambience (at Qutab Minar), Mehrauli Road,

New Delhi - 110 030

Tel. No.: +91 11 4166 6000

Fax No.: +91 11 4166 6011/12

These are the premise on which Bharti Enterprises has based its entire plan of action.

Bharti Enterprises has been at the forefront of technology and has revolutionized

telecommunications with its world-class products and services. 

Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts

and innovations to its credit, ranging from being the first mobile service in Delhi, first private

basic telephone service provider in the country, first Indian company to provide comprehensive

[18]

telecom services outside India in Seychelles and first private sector service provider to launch

National Long Distance Services in India. Bharti had approximately 3.21 million total customers

– nearly 2.88 million mobile and 334,000 fixed line customers. 

Its services sector businesses include mobile operations in Andhra Pradesh, Bihar, Chennai,

Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Kolkata, Madhya Pradesh circle,

Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it

also has a fixed-line operations in the states of Madhya Pradesh and Chattisgarh, Haryana, Delhi,

Karnataka and Tamil Nadu and nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by offering data transmission

services and voice transmission services for calls originating and terminating on most of India's

mobile networks.

The Company is also implementing a submarine cable project connecting Chennai-Singapore for

providing international bandwidth.

Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart

from being the largest manufacturer of telephone instruments, it is also the first telecom

company to export its products to the USA.

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti Group, has

a diverse business portfolio and has created global brands in the telecommunication sector.

Bharti has recently forayed into retail business as Bharti Retail Pvt. Ltd. under a MoU with Wal-

Mart for the cash & carry business. It has successfully launched an international venture with EL

Rothschild Group to export fresh agri products exclusively to markets in Europe and USA and

has launched Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world

leader in financial protection and wealth management.

Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first private

telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its

inception has been at the forefront of technology and has steered the course of the telecom sector

in the country with its world class products and services. The businesses at Bharti Airtel have

been structured into three individual strategic business units (SBU’s) - mobile services,

broadband & telephone services (B&T) & enterprise services. The mobile business provides

[19]

mobile & fixed wireless services using GSM technology across 23 telecom circles while the

B&T business offers broadband & telephone services in 94 cities. The Enterprise services

provide end-to-end telecom solutions to corporate customers and national & international long

distance services to carriers. All these services are provided under the Airtel brand.

Airtel was born free, a force unleashed into the market with a relentless and unwavering

determination to succeed. A spirit charged with energy, creativity and a team driven “to seize the

day” with an ambition to become the most globally admired telecom service. Airtel, after just ten

years, has risen to the pinnacle of achievement.

As India's leading telecommunications company Airtel brand has played the role as a major

catalyst in India's reforms, contributing to its economic resurgence.

Today it touch peoples lives with our Mobile services, Broadband services, to connecting India's

leading 1000+ corporates. It also connect Indians living in USA with its call home service

[20]

Chapter - 3

[21]

Organization Structure

As an outcome of a restructuring exercise conducted within the company; a new integrated

organizational structure has emerged; with realigned roles, responsibilities and reporting

relationships of Bharti’s key team players. With effect from March 01, 2013, this unified

management structure of 'One Airtel' will enable continued improvement in the delivery of the

Group’s strategic vision.

[22]

 Management Profiles

Key peoples

• Sunil Bharti Mittal

• Manoj Kohli

• Akhil Gupta

• Atul Bindal

• Carol Borghesi

• David Nishball

• Dr. Jai Menon

• Krishnamurthy Shankar

• Narender Gupta

• Norman Donald Price IV

• S. Asokan

• Sanjay Kapoor

[23]

Bharti Airtel - Organization Structure

[24]

Chapter - 4

[25]

OBJECTIVE OF THE STUDY

• To identify the difference in market performance of Airtel industry.

• To study the market of Airtel Industry in big scale sector.

• To compare various parameters of manufacturing process, technology, production

policy, advertising, collaboration, export scenario, future prospect and government

policies.

[26]

PRODUCTS /SERVICES

Businesses

Bharti Tele-Ventures current businesses include -

• Mobile services

• Fixed-line 

• National and international long distance services

• VSAT, Internet services and network solutions 

SevicesMobile Office Solutions

Post Paid Connections Airtel Data Card

Office Services

Voice Email on the go

[27]

Fixed Wireless Phone Blackberry Enterprise Solutions

Airtel Landline Connections Windows Mobile

Data & Internet e- Business Services

Broadband Web Hosting

ISDN Connectivity Co-location Services

VPN Services Business Continuity & Recovery Services

MPLS Networking

ATM Connectivity Satellite Services

IPLC VSAT Connectivity

Leased Line Connectivity BIT - Internet

Metro Ethernet Satellite based-IPLC

Vpn services

Mobile ServicesAirtel operates in all telecom circles of India. Its network is present in 5,121 census towns and 457,053 non-census towns and villages, covering approximately 86.6% of the country's population as of September 2012. Airtel is the largest operator in rural India with 83.82 million subscribers as of April 2013.

Airtel is the 6th most valued brand according to an annual survey conducted by Brand Finance and The Economic Times in 2010.

3GOn 18 May 2010, the 3G spectrum auction was completed and Airtel paid the Indian government  122.95 billion (US$2.1 billion) for spectrum in 13 circles, the most amount spent by an operator in that auction. Airtel won 3G licences in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East, and Jammu & Kashmir.[30] Airtel also operates 3G services in Maharastra & Goa and Kolkata circles through an agreement with Vodafone and in Gujarat through an agreement with Idea. This gives Airtel a 3G presence in 15 out of 22 circles in India. Airtel is fined by DoT 3.50 billion for not stopping offering 3G Services through Roaming Pacts outside its Licensed Zones in Seven Circles.

[28]

On 20 September 2010, Bharti Airtel said that it had given contracts to Ericsson India, Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for providing 3G services in the country. These vendors would plan, design, deploy and maintain 3G–HSPA (third generation, high speed packet access) networks in 13 telecom circles where the company had won 3G licences. While Airtel awarded network contracts for seven 3G circles to Ericsson India, NSN would manage networks in three circles. Chinese telecom equipment vendor Huawei Technologies was introduced as the third partner for three circles.[31]

On 24 January 2011, Airtel launched 3G services in Bangalore, Karnataka – its largest circle by revenue. With this launch, Airtel became the third private operator (fifth overall) to launch its 3G services in the country following Tata Docomo and Reliance Communications.[32] On 27 January 2011, Airtel launched 3G in Chennai and Coimbatore in Tamil Nadu. On 27 July 2011, 3G services were launched in Kerala's 3 largest cities –Kochi, Kozhikode and Thiruvananthapuram.[33]

Airtel 3G services are available in 200 cities through its network and in 500 cities through intra-circle roaming arrangements with other operators. Airtel had about 5.4 million 3G customers of which 4 million are 3G data customers as of September 2012.[26]

4GOn 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtel paid  33.1436 billion (US$550 million) for spectrum in 4 circles: Maharashtra and Goa, Karnataka, Punjab andKolkata.[34] The company was allocated 20 MHz of BWA spectrum in 2.3 GHz frequency band. Airtel's TD-LTE network is built and operated by ZTE in Kolkata and Punjab, Huawei in Karnataka, and Nokia Siemens Networks in Maharashtra and Goa.[35] On 10 April 2012, Airtel launched 4G services through dongles and modems using TD-LTE technology in Kolkata, becoming the first company in India to offer 4G services. The Kolkata launch was followed by launches in Bangalore (7 May 2012),  Pune (18 October 2012)  and Chandigarh, Mohali and Panchkula (25 March 2013)  Airtel obtained 4G licences and spectrum in the telecom circles of Delhi, Haryana, Kerala and Mumbai after acquiring Wireless Business Services Private Limited, a joint venture founded by Qualcomm, which had won BWA spectrum in those circles in the 4G spectrum auction

Airtel launched 4G services on mobile from February 2014. The first city to get the service was Bangalore.[40][41] Airtel provides voice services for its TD-LTE subscribers through its existing GSM network, which made it the first operator in India to combine voice with TD-LTE services through GSM network. Airtel selected Nokia Siemens Networks to deploy its Circuit Switched FallBack (CSFB) voice solution in Airtel's TD-LTE network in Pune. With CSFB, the network can transfer customers to GSM platform to make and receive voice calls while retaining the TD-LTE network for data services.[42]

Airtel had 100,000 4G subscribers as of January 2014.[43]

[29]

WiFiAirtel has plans to launch WiFi services in India. It intends to start offering WiFi services in Delhi NCR, Mumbai and Bangalore in initial phase. All plans will be on secure wireless broadband internet with unlimited usage and will be session or time based. Users can use the service by finding a hotspot, selecting 'airtel WiFi Zone', activating the voucher and then login to start browsing.

Airtel intends to partner with establishments to set up hotspots which will be termed WiFi Hangout for an establishment owner and WiFi Partner for the café and restaurant owners. Airtel WiFi Partners can offer services at zero investments and can earn commission on every WiFi session sold.[44]

Chapter - 5[30]

RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the subject. As the prime

objective of the project is to compare Airtel with the existing competitors in the market and the

impact of WLL on Airtel, the research methodology adopted is basically based on primary data

via which the most recent and accurate piece of first hand information could be collected.

Secondary data has been used to support primary data wherever needed.

Secondary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview method, where a

face-to-face formal interview was taken. Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the surrounding environment he works in.

Procedure of research methodology

# To conduct this research the target population was the mobile users, Who are using GSM

technology.

# Target geographic area. Sample size of 100 was taken.

# To these 100 people a questionnaire was given, the questionnaire was a combination of both

open ended and closed ended questions.

# The date during which questionnaires were filled.

# Some dealers were also interviewed to know their prospective. Interviews with the managers of

GSM service providers were also conducted.

[31]

# Finally the collected data and information was analyzed and compiled to arrive at the

conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Bharti’s history, current issues, policies, procedures etc, wherever

required.

# Internet

# Magazines

# Newspapers

# Journals

# Bharti Circular

# Bharti News Letters

.

 

Chapter - 6[32]

Analysis

The Company has developed the following strategies to achieve its strategic objective:

• Focus on maximizing revenues and margins;

• Capture maximum telecommunications revenue potential with minimum geographical

coverage;

• Offer multiple telecommunications services to provide customers with a "one-stop shop"

solution;

• Position itself to tap data transmission opportunities and offer advanced mobile data

services;

• Focus on satisfying and retaining customers by ensuring high level of customer

satisfaction;

• Leverage strengths of its strategic and financial partners; and

• Emphasize on human resource development to achieve operational efficiencies

Other points

• First time ever in India - any pre-paid card brand gives such freedom to recharge any value

• A combination of the film genre exposed through the TV medium designed to connect with

the masses of India

• Youth based - romance driven strategy platform makes the value proposition of AirTel

Magic - ‘AISI AZAADI AUR KAHAN?” come alive

• Sharukh Khan makes ‘everything in life possible’ AirTel today unveiled its strategy for

market expansion with the launch of it’s new AirTel Magic pre-paid card brand campaign –

‘MAGIC HAI TO MUMKIN HAI’. . The value proposition is centered

around a person’s desire to make all his / her dreams, ambitions & aspirations instantly

possible. The new campaign for AirTel Magic is all about empowering millions of Indians to

be on top of their lives.

[33]

[34]

Chapter - 7

[35]

ANALYSIS & INTERPERTATION

Age Group Graph

S.R No. Age Response in %

1. 15-21 15

2. 21-58 65

3. 28-35 20

As we can see from the above graph, the people who are in the age group of 21-28 years are the

ones who are the maximum users of mobile phones. This segment is the one which gives

[36]

15-2115%

21-2865%

28-3520%

AGE GROUP

maximum business to the mobile operators. This segment constitutes the young executives and

other office going people. They are 65% of the total people who were interviewed. The next age

group are the people who are 28-35 years old. They are 20% of the total. They are those who are

at home or have small business units etc. And the next age group is the youngest generation who

are 15-21 years old. They are school and college going students and carry mobile phones to

flaunt. They are 15% of the total interviewed people.

[37]

Occupation Graph

S R. N o. Occupation Response in %

1. Student 10

2. Executive 55

3. House hold 20

4. Others 10

As the above graph shows that 55% of the total people interviewed are working. So, these people

are the ones who are the maximum users of mobile phones. They are the young executives,

managers, Tele - callers etc. who require mobile for their official purposes. The next category is

the households, who are either housewives, small units which operate from their homes etc. They

are 20% of the whole . The next segment is the students. They are 15% of the whole. And 10%

of the whole is a category who are the professionals.

[38]

15%

55%

20% 10%

OCCUPATION

STUDENTS EXECUTIVES HOUSEHOLDS OTHERS

Service Provider Graph

S.R No. Service provider Response in %

1. Vodafone 30

2. Idea 15

3 Airtel 50

4. Others 5

[39]

The above graph shows a slice of 50%. These are the total no. of people who are using Airtel. It

seems that people are more aware of Airtel than any other brand. The next popular brand is

vodafone. 305 of the people interviewed had vodafone connections. The next popular brand was

Idea. 15% people had Idea connections. As it came very late in the market when Airtel had

established it self very well. So, that could be one of the reasons of such a low percentage. The

remaining 5% had trump connections.

[40]

Customer Service At Airtel Graph

S.R No. Customer Satisfaction Response in %

1. Fully 20

2. Partially 10

3. Dissatisfied 60

4. Fully Dissatisfied 10

[41]

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people

are dissatisfied with the customer services provided by Airtel. They are the ones who have the

maximum share in the market but they are lagging behind in the customer services. 10% of the

people were fully dissatisfied with the customer services of Airtel. This could leave an impact on

the mind of the consumer. He can even switch over his brand. 20% of the people seemed

partially satisfied with the customer services and only 10% seem to be fully satisfied with

Airtel’s customer services, which is a very small amount.

[42]

20%

10%

60%

10%

CUSTOMER SATISFACTION LEVEL

FULLY PARTIALLY DISSATISFIED FULLY DISSATISFIED

Type Of Card Graph

S.R. No. Types of cards Response in %

1. Sim card 15

2. Cash card 85

[43]

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users

were having cash card connections. This means that the cash cards should be easily and readily

available in the local markets. Airtel should make sure that Magic is available in each and every

nook and corner of the market. 15% of the people were having sim connections which is the

regular bill.

[44]

CASH CARD85%

SIM CARD15%

TYPES OF CARDS

Monthly expense graph

S.R No. Monthly Expense Response in %

1. Rs. 600 20

2. Rs. 450 64

3. Rs. 200 24

[45]

12%

64%

24%

Monthly Expense

Rs 600Rs 450Rs 200

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend

this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the

remaining 12% had an expense more than RS 1000, they could the ones having sim connections

or having cash cards and having a lot of business calls on their mobiles.

Awareness About WLL Graph

[46]

YES55%

NO45%

AWARENESS ABOUT WLL

S.R No. option Awareness in %

1. Yes 55

2. No 45

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware

of such a technology. So, in order to get the answer for this question they were first explained the

concept. Only, 55% people knew what WLL is all about.

Awareness of WLL Players Graph

S.R No. Product Response in %

1. Tata Indicom 15

2. Reliance 85

[47]

TATA INDICOM

15%

RELIANCE85%

AWARENESS OF WLL PLAYERS

Monthly Expense

Reliance was the brand which was popular amongst the interviewed people. As Reliance had

done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be

one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly,

because of less promotions done by them as compared to Reliance.

On the basis of analysis of the questionnaire I have found that the maximum no. of people who

use mobile phones are in the age group of 20 to 28. who are the young executives and other

office goers.

They spend a maximum of RS. 500 as their mobile expense.

There are more no. of prepared cards than post paid cards. The mobile users want to spend

money side by side than to spend money at the end of the month on a big bill.

Now when I compared Airtel with its competitor from the point of view of the consumer I

found that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par

or ahead of its competitor but in the case of customer care and availability they lag behind there

competitors. As, Airtel has a hold in the market because it has the maximum no. of connections,

so it must improve upon it customer services. As far as WLL is concerned people are aware

about it but not many people are aware about Tata. They only Know more about Reliance.

People at this point of time are not interested to switch over from GSM to WLL.

[48]

Chapter - 8

[49]

SUGGESTIONS

Following are the few suggestions to AIRTEL for improving the market share and image of the

products concerned.

1. PRODUCT

*Modification must be brought about in AIRTEL, in terms of quality. Its demand should

be increased.

2. PLACE

* The brands must be made available easily in, PCO & general stores.

3. PROMOTION

*Company must undertake extensive promotional activities like advertisements must be

released in different Medias to create brand awareness.

*Free samples should be distributed among the prospects. Sales promotion tools like

gifts, contests and coupons must be given to retailers as well as customers and prospects.

* Catalogues should be distributed among customers.

[50]

Chapter - 9

[51]

SWOT ANALYSIS

Strengths

• Being one of the largest companies in India the company has achieved a degree of

focus in its core business of its products.

• It has a strong brand name, superior quality products and an enviable distribution

network.

• It has a clear and well-defined organization structure and limits of financial

authority.

• Increase in advertisement spends affect the company’s margins.

• The company‘s bottom line falls victim to the bloated and highly paid workforce,

which affects its margins.

Weakness:

• Little efforts over the Advertising of products.

• Distribution channel is not accurately categorized.

• Premium priced products, hence can’t compete in low price segment.

• No separate strategy for rural market.

Opportunities:

• The company's financial performance can receive a major boost from its cost

reduction efforts.

• There is a lot of scope of product and market diversification.

• Exports of products will also have huge chances in the coming years.

• Airtel’s business has ample scope for gaining market share from the unorganized

sector. Rural penetration too holds vast potential to bring about growth.

[52]

Threats

• The slowdown in the economy has restricted topline growth of most FMCG majors

and for Airtel also it will be difficult to maintain historical growth rates in such a

depressed scenario.

• Company’s major raw materials are influenced by government policies / controls

as well as vagaries of the monsoons. Fluctuations in the prices of raw materials

would have significant impact on costs and margins of the company.

Moreover, inordinate hike in Broad Band Internet products would also increases

company’s production and distribution cost.

[53]

Chapter - 10

[54]

RECOMMENDATION

I have made following recommendation to the company after doing the summer training there:

• The company should modify its credit policy as they only target the cash paying

customers who are not easy to trace.

• The company should emphasis more on the quality of Pharmaceuticals Products it was

mostly claimed by the exporters that their receipts from company doesn’t matches with

the sample’s quality shown before giving orders.

• The company should makes its marketing strategy flexible enough in order to face

competition.

• The company should keep an eye on the proper delivery of the goods to exporter on time,

as it has been recommended by exporters to make the delivery on time.

• The company rate policy must be flexible enough to catch new customers because if

company offers lower price to a new customer then he may continue buy the goods and

can be a permanent customer for the company.

• The company should offers such rate in the market so that it may able to catch a biger

market share and it should be able to compete with the local traders and commission

agents while having a brand name.

The company should take the opinion of exporters from time to time to know what problems

they are facing from the company’s side? And if any change they require in present supplying

condition?

[55]

Chapter - 11

[56]

LIMITATIONS

No project is without limitations and it becomes essential to figure out the various constraints

that we underwent during the study. The following points in this direction would add to our total

deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/wholesellers refuses to cooperate with the queries.

5. Some retailers/wholesellers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience also because hurdle for me.

8. Some retailers did not answer all the questions or do not have time to answer.

[57]

Chapter - 12

[58]

CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged behind its

competitors as far as customer service and availability is concerned. The maximum no. of people

who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of

mobile connections, as they are consumer friendly and recharging the connection is not a

problem.

Maximum no. of people spend RS 500 on their connections. As Airtel is the only company

having the maximum no of mobile connections so it must seriously look into the loop holes of

the existing customer service department.

As we know that now airtel has already launched its product with logo “’ Aisi azaadi aur

kahan”’ has already became popular in market. So we can say that inspite of so many

competitor in the market Airtel is having a good position just because every time, it tries its best

to understand the need of its important customer.

[59]

Chapter - 13

[60]

BIBLIOGRAPHY

In this project report, while finalizing and for analyzing quality problem in details the following

Books, Magazines/Journals and Web Sites have been referred. All the material detailed below

provides effective help and a guiding layout while designing this text report.

Websites:

www.airtelworld.com

www.google.com

www.india.com

www.moneycontrol.com

www.wikipedia.org

Magazines:

Airtel ( July to march 2014)

Airtel India page of HT paper (Thursday 1December 2013)

Cowards India ( December to Jan. 2013)

Business today, Business economy

News papers

Times of India

Economic Times

[61]

Chapter – 14

QUESTIONNAIRE

Q.1 For how long you have been using Airtel Product?

• 0-2 Years

[62]

• 2-5 Years

• 5-10 Years

• More than 10 years

Q.2 Are you using other product instead of Airtel?

• Yes

• No

Q.3 Among them, which Brand you, prefer most?

• Idea

• Hutch

• Airtel

Q. 4 How would you rate the experience with Brand?

Excellent Good Average Below Average

• Idea

• Hutch

• Airtel

Q. 5. What are the features you look for in a product before making purchase decision?

Give preferences (1-Highest, 6- least)

[63]

• Brand credibility

• Price and Discount

• After sales services and parts, network

• Value for money

• Vehicle performance

• Add on features or ergonomics of design

Q.6. Which of these marketing / sales schemes attracts you while purchasing any connection?

• Good Network

• Discount scheme

• Service package

• Any other

Q.7 If you have to purchase a new connection or product in near future, which Brand will you

go for and why?

___________________________________________________

___________________________________________________

___________________________________________________

___________________________________________________

[64]

Q. 8 Are you aware of various promotional activities being run by Airtel, if yes then

how? Are you satisfied with these promotional activities?

Very

Satisfie

d

Satisfied Somewhat

Satisfied

Not

satisfied

• Customer Care

• By Ad Films

• By Camp

• 24 hrs call center services

________________

[65]

[66]