Varun kumar- Airtel

8/6/2019 Varun kumar- Airtel

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A

REPORT

ON

ORGANIZATION STUDY AT AIRTEL

&

A CONSUMER SURVEY ON AIRTEL ROAMING

Submitted in partial fulfillment of the requirements of

The M.B.A Degree Course of Bangalore University

Submitted

By

M.VARUN KUMAR

O7XQCM6040

Under the Guidance and Supervision

Of

B.SRINIVASAN

PROFESSOR

MPBIM

M.P BIRLA INSTITUTE OF MANAGEMENT

Associate Bharatiya Vidya Bhavan

# 43, Race Course Road, Bangalore-560001



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DECLARATION

I M.VARUN KUMAR, student of Master of Business Administration (MBA),

M.P.Birla Institute of Management , Bangalore hereby declare that this report

‘Organization Study in AIRTEL, Bangalore is a record of independent

work carried out by me, towards partial fulfillment of requirement for Master

Of Business Administration (MBA) Course of Bangalore University at

M.P.Birla Institute of Management.

This has not been submitted in part of full towards any degree or diploma.

M.Varun Kumar

Reg No: 07XQCM6040



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ACKNOWLEDGEMENT

Gratitude takes three forms: “A feeling from heart, an expression in words,

and a giving in turn”. We take this opportunity to express our heartfelt feelings.

This project is thus dedicated to each and every one who has in some way or the other

helped me in the successful completion of this report.

I extend my sincere thanks to my guide Prof B.SRINIVASAN for his expert guidance,

valuable suggestions and everlasting encouragement.

I also take this opportunity to extend my heartfelt thanks to our beloved principal Prof.

N.MALLAVALI for his valuable support.

Finally I am grateful to all the respondents without whose help this project would not

have been possible.

M. Varun Kumar

MBA 3RD

sem



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SL. NO. CONTENTS PAGE

NOS.

1 EXECUTIVE SUMMARY 1

2 PART A- ORGANIZATIONAL STUDY 2

CHAPTER 1: INDIAN CELLULAR INDUSTRY 3

CHAPTER 2: THE BHARTI GROUP 10

CHAPTER 3: AIRTEL 17

CHAPTER 4: ROAMING 28

CHAPTER 5: SWOT ANALYSIS 34

3 PART B- RESEARCH STUDY 38

CHAPTER 1: RESEARCH EXTRATS 39

CHAPTER 2: PROJECT DESIGN AND STUDY 41

CHAPTER 3: ANALYSIS AND INTERPRETATIONS 44

CHAPTER 4: FINDINGS 70

CHAPTER 5: CONCLUSIONS 73

CHAPTER 6: SUGGESTIONS & RECOMMENDATIONS 76

4 BIBLIOGRAPHY 79

5 ANNEXURE 81





6

PART A

ORGANIZATIONAL STUDY



7

CHAPTER-1

INDIAN CELLULAR INDUSTRY

History of cellular telephony.

Cellular industry in India.

Cellular operators in India.



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History of Cellular Telephony

The technology that gives a person the power to communicate anytime, anywhere -

has spawned an entire industry in mobile telecommunication. Mobile telephones have

become an integral part of the growth, success and efficiency of any business /

economy.

The most prevalent wireless standard in the world today, is GSM. The GSM

Association (Global System for Mobile Communications) was instituted in 1987 to

promote and expedite the adoption, development and deployment and evolution of the

GSM standard for digital wireless communications.

The GSM Association was formed as a result of a European Community agreement

on the need to adopt common standards suitable for cross border European mobile

communications. Starting off primarily as a European standard, the Group Special

Mobile as it was then called, soon came to represent the Global System for Mobile

Communications as it achieved the status of a world-wide standard. GSM is today, the

world's leading digital standard accounting for 68.5% of the global digital wireless

market.

The Indian Government when considering the introduction of cellular services into

the country, made a landmark decision to introduce the GSM standard, leapfrogging

obsolescent technologies / standards.

Cellular Industry in India

The Government of India recognizes that the provision of a world-class

telecommunications infrastructure and information is the key to rapid economic and

social development of the country. It is critical not only for the development of the

Information Technology industry, but also has widespread ramifications on the entire



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economy of the country. It is also anticipated that going forward, a major part of the

GDP of the country would be contributed by this sector. Accordingly, it is of vital

importance to the country that there be a comprehensive and forward looking

telecommunications policy which creates an enabling framework for development of

this industry.

Telecommunications is now universally recognized as one of the prime movers of the

modern economy; hence it's vital importance for a developing country like India. The

availability of adequate infrastructure facilities is critical for acceleration of the

economic development of any country. In fact international studies have established

that for every 1% increase in Tele-density, there is a 3% increase in the growth of

GDP.

Accordingly, the Government of India has accorded the highest priority to investment

and development of the telecommunications sector. Telecom requires very heavy

investment and it was not possible for the Indian Government to organize public

funding of this sector on such a massive scale. In fact the national telecom Policy

1994, estimated a resource gap of Rs. 23,000 crs to meet the telecom targets of the

eighth five-year plan of the Government of India (1992-97).

It was for this reason to bridge the resource gap between government funding and the

total projected funds requirement and to provide the additional resources to achieve

the nation's telecom targets that the telecommunications sector was liberalized in 1992

and the Government invited private sector participation in telecommunications.

Cellular mobile services were one of the first areas to be opened up to private

competition. The whole country was divided into the 4 metropolitan cities of and 19

telecom circles, which were roughly analogous with the States of India. Cellular

Licenses were awarded to the private sector - first in the metropolitan cities of Delhi,

Mumbai, Kolkata and Chennai in 1994 and then in the 19-telecom circles in 1995.

The first metro cellular network started operating in August 1995 in Calcutta. When

cellular mobile services were first introduced in 1994 it was as a duopoly (that is a

maximum of two cellular mobile operators could be licensed in each telecom circle),

under a fixed license fee regime and for a license period of 10 years. The initialresponse of the private sector was very encouraging.



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The attractiveness of the Indian market - the low Tele-density, the high latent demand

and a burgeoning middle class - brought in some of the largest global telecom players,

foreign institutional investors and the major Indian industrial houses to invest in

telecom, especially the Indian cellular industry. Telecom proved to be a powerful

attractor of foreign investment. The cumulative FDI inflow into telecom since 1993

has exceeded Rs. 43,000 Million. Annual foreign investment in telecom increased

steadily from an insignificant Rs. 20.6 Million in 1993 to Rs. 17,756.4 Million in

1998.

However, the attractiveness of the Indian market did not last for very long, as by

1997-98, the private cellular operators were confronted with a series of problems that

threatened their very viability and survival. As a result of this, FDI inflow into

telecom dropped sharply, declining by almost 90% to Rs. 2126.7 Million in 1999.

This dropped further in Year 2000 - as until June 2000, only Rs. 918 Million had

flown into the country.

One of the key factors responsible for the critical state of the telecom sector &

consequently also the cellular industry was that liberalization / deregulation was

undertaken in an inverted manner vis-à-vis international practices and generally

accepted norms. Usually, deregulation is preceded by tariff rebalancing, institution of

a strong and independent regulator and only then is private sector participation

invited.

Another important factor was the basic approach of the Government towards

liberalization. Consumer benefit was given the go-by and the telecom sector was

viewed as a revenue generator / cash cow for the Government exchequer. Licenses

were granted through an auction process and the enthusiastic private sector deluded

by the seemingly huge potential of the Indian market were lured into bidding

exorbitant sums of money for cellular licenses. The huge license fees paid by the

private operators resulted in a high cost structure leading to un-affordable tariffs and

lower growth of the market.

By end-1998, the cellular industry was on the verge of bankruptcy and at that time it

appeared that the liberalization dream was over & the nightmare had begun. It was

under the above circumstances that the Government undertook a review of telecom



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policy & the role of the regulatory authority. The result was NTP 99, which was

announced in March 1999 & the amendment of the TRAI Act in January 2000.

Cellular tariffs have dropped by over 90% since May 1999 - a feat unparalleled by

any other sector or industry in India. The average airtime tariff in Year 2001 wasprevailing around Rs. 2 per minute as against the peak ceiling tariff of Rs. 16.80 per

minute when NTP 99 was announced.

As a result of improved affordability, there an increased take-up of the service and the

cellular operators were able to venture into more and more cities & towns of the

country. In fact cellular services are now available in almost 1400 cities & towns of

India. With the lower tariffs and increased coverage, there was also a resultant

increase in the number of cellular subscribers. The point of inflexion for subscriber

take-off is clearly post NTP-99. From 1.2 million subscribers in April 1999, to almost

2 million by April 2000, the number of cellular subscriber has grown to almost 6.5

million by the end of March 2002.

By March 2001, the industry had invested nearly Rs. 16,000 crores in cellular

infrastructure and it is estimated that these investments will grow to Rs. 20,000 crores

in the next 4-5 years. As of March 2002, the Indian cellular mobile industry had 42networks on air, serving over 1400 towns and cities and covering thousands of

villages and serving almost 6.5 million subscribers across the country.

The quality of the service is widely accepted to be of international standards and till

date there has been no waiting period involved in availing of this service. The cellular

industry has been growing at an average rate of 85% per annum and it is hoped that

the industry will be able to sustain this growth in the coming years.

The Working Group on the Telecom Sector set up by the Government of India for the

tenth five-year plan, has estimated that over the next five years, around 31.55 million

cellular subscribers would be added all over India. To achieve this growth, the

Working Group has also estimated that resources to the tune of about Rs. 25,240

crores will be required over the next five years.

Most of India's population cannot yet afford a cellular phone. However, there is a

growing middle class who is able and willing to buy cellular phones and services.



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With fewer than 25 million subscribers today, India stands at the beginning of its

cellular growth. The Indian operators anticipate from 150 million to 250 million

subscribers by year-end 2007, a range consistent with our own expectations.

The Indian cellular market is one of extremes - demonstrated by disparities in income

but also by how network operators view the market - from providing low-cost voice

services to data services. It is clear from a recent trip to India that innovation and

differentiation among the operators’ rules. This innovation is helping to drive the

market and can provide lessons for operators elsewhere. Operators aren't focused on

technology for technology's sake, but for the services which it provides.



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THE CELLULAR SERVICE OPERATORS IN INDIA

Aircel Limited

Aircel Digilink India

BSNL

Bharti Cellular

Bharti Mobile

Bharti Mobinet Ltd

Bharti Mobitel Ltd

Bharti TelenetBPL Cellular

BPL Mobile

Escotel Mobile

Fascel

Hexacom India

Hutchison Essar South

Hutchison Essar Telecom

Hutchison Max Telcom

Hutchison Telecom East

Idea Cellular

MTNL

Reliance Telecom

RPG Cellular

Spice Communications

TATA Indicom



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CHAPTER- 2

THE BHARTI GROUP

Introduction

Business strategy

Board of Directors



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INTRODUCTION

Building Telecom... Building Relationships

Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting

investments in telecommunications services. Its subsidiaries operate telecom services

across India. Bharti Tele-Ventures is India's leading private sector provider of

telecommunications services based on a strong customer base consisting of nearly

eight million total customers.

“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." says Sunil Bharti Mittal

(Chairman and Group Managing Director)

Bharti Tele-Ventures vision for its mobile business is “To make mobile

communications a way of life and be the customers first choice”. The Company’s

strategic objective is to consolidate its leadership position amongst the mobile service

providers in India.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM servicesin all the twenty-two telecom circles in India. It proposes to consolidate all its

subsidiaries providing mobile services under Bharti Cellular Limited.

As of June 30, 2004, approximately 92% of India's total mobile subscriber market

resided in the Company's sixteen mobile circles, which collectively covered only 56%

of India's land mass. Bharti is largest private sector integrated telecommunications

services group in India in terms of the number of customers. It has largest Mobile

footprint in India, covering 16 of the 22 licensed areas. Bharti was the first and largest

private telecommunications services company offering fixed-line services in India.

Bharti was first off the block to launch fixed-line services in all the four circles of

Delhi, Haryana,Karnataka & Tamil Nadu.



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BUSINESS STRATEGY

Bharti Tele-Ventures' strategic objective is

“to capitalize on the growth opportunities that the Company believes are available in

the Indian telecommunications market and consolidate its position to be the leading

integrated telecommunications services provider in key markets in India, with a focus

on providing mobile services”.

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.

Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom);

Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius;

International Finance Corporation, USA and New York Life International, USA.

Bharti provides a range of telecom services, which include Cellular, Basic, Internet

and recently introduced National Long Distance. Bharti also manufactures and

exports telephone terminals and cordless phones. Apart from being the largest



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manufacturer of telephone instruments in India, it is also the first company to export

its products to the USA.

Bharti is the leading cellular service provider, with a footprint in 15 states covering all

four metros. Mobile services constitute the largest portion of Bharti’s business both in

terms of total revenues and total customers. The company also engaged in fixed-line,

long distance, group data and enterprise services including VSAT and Internet

services.

Bharti Tele-Ventures,its subsidiaries and management have received several awards

and recognitions, including:

• Bharti was recognized as one of the "Leading Lights of Telecom" in Asia in

November 2001 in the Asian edition of the "tele.com" magazine with

analytical inputs from research consultants Frost & Sullivan.

• The leading telecommunications service provider in India in a survey of

Indian companies conducted by Business World in association with Indian

Marketing Research Bureau in September 2001

• The “Techies” award from Information Communications World, an

international business magazine, for four consecutive years (1997 to 2000) for

brand excellence, network quality, customer service and value added service

in our Delhi mobile circle.

• Golden Peacock National Training Award – 1999 to Bharti Cellular for our

Delhi mobile operations from the Institute of Directors, a non-profit

association in India committed to improving the competitiveness of Indian

business by focusing on development of business leaders, for the best human

resources and training practices.

• Ascent – Times of India and Sodexho Pass award in 1999 from the Asia

Pacific HRD conclave to Bharti Cellular for corporate excellence in

the category of most innovative human resource practices.



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BOARD OF DIRECTORS

MR. SUNIL BHARTI MITTAL

MR. RAKESH BHARTI MITTAL

MR. RAJAN BHARTI MITTAL

MR. AKHIL GUPTA

MR. LUNG CHIEN PING

MR. LIM TOON

MS. CHUA SOCK KOONG

MR. DALIP PATHAK

MR. BASHIR ABDULLA CURRIMJEE

MR. DONALD CAMERON

MR. N. KUMAR

MR. PULAK PRASAD

MR. PAUL O'SULLIVAN

PROF. V.S RAJU

MR. KURT HELLSTROM



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The group has been structured to create functional and operational specialization with

a linear vision of business lines and functional areas.

The Company is headed by Chairman and Group Managing Director- Sunil Bharti

Mittal who is assisted by two Joint Managing Directors- Akhil Gupta and Rajan

Bharti Mittal. The Company also has two Presidents- President Mobile Services and

President Infotel Services, this responsibility includes Fixed-line, Long Distance and

Broadband Services. The Presidents report to the Group Chairman and Managing

Director. The head of units and SBUs report to the respective business's President.

An apex team of Corporate Directors has been constituted. The corporate directors

have supervisory and strategic responsibilities for functional areas across business

lines. The directors oversee functional areas including Business Development, Human

Resources, Marketing, Corporate Communication, IT & Technology, Finance, Legal,

Corporate Affairs, Corporate Strategy & Planning and Supervisory Director cum

Chief Mentor - mobility.



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THE ORGANIZATION STRUCTURE:

The organization structure is designed to ensure that identical businesses are run along

similar lines and best resources in any functional field, be tapped to serve the best

interests of the entire group.

The structure also defines the role of the Head of the units who are totally empowered

to manage their respective companies and are fully responsible for business

operations to build world-class organizations with a high degree of customer focus.



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CHAPTER-3

AIRTEL

About Airtel

Airtel Karnataka

Products and services

Areas of operation



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AIRTEL’s VISION

"To make mobile communications a way of life and be the customers'

first choice”

AIRTEL’s MISSION

The company will meet the mobile communication needs of its

customers through:

• Error- free service delivery

• Innovative products and services

• Unified messaging Solution

• Cost efficiency

Airtel & Visual Identity

For a brand to be successful, it must build enduring relationships with its different

audiences. Integral to this relationship is the visual image of the brand the consumer

carries in his/her mind. The Airtel brand image is created through the consistent

application of a carefully developed visual identity, which helps Airtel distinguish

itself in a cluttered market. Airtel's visual identity helps create instant brand recall and

strengthens the relationships that its audiences have with it.

Airtel is the flagship that comes from Bharti Cellular Limited - a part of the biggestprivate integrated telecom conglomerate, Bharti Enterprises.

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

telecommunications with its world class products and services. Established in 1976,

Bharti has been a pioneering force in the telecom sector with many firsts and

innovations to its credit.

Airtel strives hard to make the quality of your life better to its esteem customers. For

them customers are unique, and so are their needs. And because of its customers

individuality they have a set of services pertinent to its them !



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Airtel welcomes its customer to a vibrant world of unlimited opportunities. For them

customers are important and the company endeavor to provide to its customers with

the service that exactly fits their needs.

Experience total cost control, low rentals and easy billing with Airtel postpaid andprepaid services. Explore the world with Airtel roaming services and get absolutely

cool offers and mobile downloads on your Airtel MTV Card!

Airtel’s customer service is number one in the country.

Airtel is all around. Avail of all our services anytime, anywhere.

Right from easily accessible cheque drop boxes and locations of the

shops to means whereby you can be part of the Airtel fraternity.

So come and experience complete freedom. Come experience Airtel!

Airtel Karnataka

Bharti Tele-Ventures through its subsidiary, Bharti Mobile Limited, holds the right to

establish, maintain and operate a cellular mobile telephony system in the Karnataka

circle through a licence that is valid for 20 years from February 15, 1996 under the

brand named Airtel. Bharti Mobile Limited - Karnataka is a part of the mobile

services arm of Bharti Tele-Ventures (BTVL), India’s leading private sector provider

of integrated telecommunications services with an aggregate of 7.0 million mobile

customers across the country & over 9 lakhs customers in Karnataka. AirTel today

provides seamless roaming spanning across 337 networks in 137 countries, 1024

cities across India and covers 151 towns in Karnataka.

Located in southern India, Karnataka is a major business center and several

information technology companies are based in and around its capital, Bangalore. The

Company currently competes with Spice Telecom, Hutchison and BSNL in the

Karnataka circle. As of June 30, 2004 the Company had approximately

890,000 customers in Karnataka, resulting in a market share of approximately 45%.

The Company offers its post-paid and pre-paid mobile services under the AirTel and

AirTel Magic brand names, respectively. In a survey conducted by TRAI in March



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2003 for service quality – AirTel Karnataka has been Ranked BEST Cellular Service

Provider in the country & is also the first operator to be bestowed the ISO

certification for quality standards.

As a socially responsible corporate citizen of Karnataka and the Category leader,AirTel shall always be at the forefront to support social initiatives.

i.e.,

- AirTel confidence plan for the acoustically challenged - a value proposition for the

hearing impaired

- 5 lakhs celebration run in aid of Shakti Foundation

- Installation of road safety products

Bharti Mobile Limited has the largest network in Karnataka covering 76 cities and

towns and a customer base of over 9 lakhs making it the most preferred cellular

service provider in the state. AirTel has consistently led the cellular market through its

innovative packages, value-added services and world class customer service.

AirTel has become the first mobile service provider in the State to introduce bills in

Kannada.



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AIRTEL’S ORGANIZATION STRUCTURE:

Airtel products and services

PRE- PAID

Aisi azadi aur kahaan?

Airtel Prepaid, the Ready Cellular Card from Airtel comes to you from Bharti

Enterprises, India's leading integrated telecom service provider.

FREEDOM OF SPEECH REDEFINED... Going mobile with Airtel Prepaid is a new

way of life.

COMPLETE CONTROL...

with a host of great features, also simple to use, Airtel Prepaid

makes everything that you dreamt and believed, possible.



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Some of the many advantages that you enjoy with Airtel Pre-Paid...

Total Cost Control

Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much as

you feel the need to! Now that's what we call complete freedom!

No Rentals/Deposits

Buy an Airtel prepaid card without having to pay any rentals and deposits!

STD/ISD facility till the last rupee

Now experience complete freedom like never before with Airtel! The STD/ISD

facility allows you to make long distance calls in India and Overseas from yourcellular phone!

Instant Balance Inquiry

Check your talk-time instantly by calling our toll-free number! 123

60 second pulse

Airtel provides you with a 60-second pulse rate! Freedom for you to experience like

never before!

24-hour recharge facility

With our round-the-clock recharge facility, recharge you Airtel prepaid card anytime,

anywhere!

Caller Line Identification

Call Line Identification gives you the power to know the phone number of the calling

party even before you answer the call, thus giving you the choice to either reject or

take the call. It provides the added advantage of saving the incoming number directly

in the Handset Phone Book. So that the next time you want to call the same person,

you don't need to retype his number, simply use your phone book.

Call Divert, Call Hold and Call Wait Avail of special services like call waiting, call hold and call divert – all with your





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Caller Identification

Call Identification gives you the power to know the phone number of the calling party

even before you answer the call, thus giving you the choice to either reject or take the

call.

Voice Mail

Voice Mail lets you receive messages even when your handset is switched off or

when you are outside the coverage area. You can listen to your messages whenever

you feel like, from anywhere in the world.

STD/ISD Facility

Now experience complete freedom like never before with Airtel! STD/ISD facility

allows you to make long distance calls in India and Overseas from your cellular

phone!

Roaming (National and International)

Airtel's Roaming service allows you to use your mobile phone to make or receive

calls from almost anywhere in India and abroad! Enjoy roaming within the country as

well as across international destinations!

Airtel MTV card

Catch the best offers and the coolest of bargains on the hippest stuff on the

market.

Groove to the hippest tunes from the hottest new tracks

Get the latest wallpapers, ringtones, picture messages and screensavers for ur

phone!

All this and loads more! Only with the MTV Airtel SIM!



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VALUE ADDED SERVICES

E a s y C h a r g e

Recharge as you like!

New Airtel Prepaid brings to the nation a never before 'Azadi'. Giving every Indian

the right to be unconditionally, completely free! Free to never run out of words,

explore every opportunity, reach out to anyone, anywhere and express them. Come

discover the world of New Airtel Prepaid. Discover freedom like never before!

Product Details

AZADI TO RECHARGE FOR ANY VALUE

Introducing Airtel Easy Charge - India's first flexi-value anytime, anywhere recharge.

Now recharge only as much as you need. Starting only Rs.50.

AZADI TO RECHARGE ANYTIME

Now recharge anytime. So no matter what time of day or night, no matter if the shops

are closed, you never run out of talktime.

AZADI TO RECHARGE FOR ANYWHERE

Now recharge while roaming anywhere across the country with India's only National

Recharge Coupon. Available in different denominations.

AZADI TO STAY MOBILE WITH Rs.50

Break free from the shackles of recharge coupons of higher denominations. Now for

the first time, stay mobile for as low as Rs.50!

24 hoursCustomer Support & Feedback

If you need any assistance or want to share your Airtel experience just call the

toll free 24 hours customer care number from your mobile and the customer care



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representatives are there to assist you. You can also forward your queries by filling

the customer feedback form available on Airtel site. At Airtel, customers are theirs

top priority and customer satisfaction means the world to them. They care about what

their subscribers have to say about their products and services.

Airtel Live!

Get the coolest ringtones, wallpapers, games, movie clips and loads more of the latest

blockbusters to hit the silver screen! Only with Airtel Live! The cricket mania

continues on Airtel Live! Check out some of the cool services that Airtel Live! Has in

store for you! Get into the groove with the hippest tones from the hottest tracks!

Check out the hit list and download the coolest new ringtones to hit the scene! You

name it and Airtel have it! Hold on to your seats as Airtel Live! Brings the coolestmobile games to hit the scene! Race dirt roads or fight diabolical villains– Airtel Live!

Games has all that and loads more

Airtel outlets and Shop

Where you can get Airtel connection and recharge cards.

Cheque Drop Boxes & Bill Payment

you can drop your cheque at your nearest drop box for convenient payments!



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Areas of operation



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CHAPTER-4

ROAMING

What is roaming

Airtel roaming

Roaming tariffs



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What is Roaming

Using a wireless phone outside of your service provider's local coverage area or

home calling area is referred to as roaming. Roaming arrangements between service

providers expand the potential area for phone use. Roaming within your home

network, this means that your mobile phone automatically sets up communication

procedures with different radio base stations when on the move. International

roaming means that one can use networks other than theirs own when traveling

abroad.

In connection with mobile telephones, “to roam” means to use the telephone both

nationally and internationally on another mobile operator's network. This is why

roaming agreements are made between the mobile network operators.

Roaming is a service offered by mobile communications a network operator which

allows a subscriber to use his/her mobile phone while in the service area of another

carrier. Roaming requires an agreement between operators of technologically

compatible systems in individual markets to permit customers of either operator to

access the other's systems.

Roaming can also be defined as the ability for cellular phone users to make or receive

calls on other service providers' networks when outside the coverage area of their

own cellular network service provider.

Moving seamlessly from one coverage area to another with no loss in connectivity isa standard feature of the roaming. All you have to do is to keep your number, and all

your services follow you.

Roaming must be requested from your network or airtime provider. The ability of a

wireless node to keep continuous connectivity to the network while moving from one

physical location to another, served by a different Access Point.



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Roaming is technically supported by mobility management, authentication and billing

procedures. Establishing roaming between network operators is based on - and the

commercial terms are contained in - Roaming Agreements.

GSM Roaming, which involves roaming between GSM networks, offers theconvenience of a single number, a single bill and a single phone with worldwide

access to over 205 countries. The convenience of GSM Roaming has been a key

driver behind the global success of the GSM Platform.

AIRTEL ROAMING.

Airtel roaming involves roaming between GSM networks, offers the convenience of a

single number, a single bill and a single phone with worldwide access to over 100

countries. The convenience of GSM Roaming has been a key driver behind the

success of the Airtel on GSM Platform. AirTel's roaming service allows you to use

your mobile phone to make or receive calls from almost anywhere in India and abroad

(over 137 countries).

AirTel Roaming gives you two great options:

AirTel Roaming National (46 partner networks)

AirTel Roaming International roaming - 337 networks and 137 countries.

Airtel became India’s first mobile service to extend roaming service in Pakistan by

signing a first ever bilateral roaming agreement with Mobilink, cellular service

provider of Pakistan on March14, 2004. With this agreement in place, AirTel will be

able to extend roaming facility to all its customers traveling to Pakistan with

immediate effect.

Airtel, encourage its customers to explore the world. With Airtel Roaming Services

and the world as your canvas, you never have to really have to be as far away from

home as the miles define. After all, home is just a phone call away...



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Different types of roaming

Roaming [National]

Airtel’s Roaming service allows you to use your mobile phone to make or receive

calls from almost anywhere in India.

Roaming [International]

Airtel's Roaming service gives you the complete freedom to you to use your mobile

phone anywhere in India and abroad.

Roaming [Regional]

Now enjoy regional roaming with Airtel! Have the freedom to roam within your

specific location!

Prepaid Roaming

You have the freedom to enjoy the luxury of Airtel’s roaming facility now even with

your prepaid connection!

Inroaming [National]

Now roam nationally with the coolest incoming charges!

Inroaming [International]

Roaming internationally was never this easy with Airtel!



36

SERVICES AVAILABLE WHILE ROAMING

Services offered depend on the visited Network:

For Out Roamers

• All the services subscribed by them in AirTel will be available while roaming

if supported by the partner network

• Voice mail service is also available

• AirTel information Services (600 series of services) are not available while

roaming

For In Roamers

• Fax and Data Service

• CLIP and CLIR

• Call Hold and Call Wait

• Call Forwarding (Unconditional)

• AirTel information Services (Dial a Service)

Conditional divert options (divert on busy, unanswered, unreachable) are also

available.

Benefits of Smart Roam

• Ever Widening Coverage

• Single number throughout the world

• Easy Accessibility

• Convenient Billing

• Payment in Indian Rupees



37

ROAMING CHARGES

SERVICE NAME PREPAID POSTPAID Monthly Rents

National Roaming - -

International Roaming 25 149

National Roaming Call Tariffs

Outgoing Calls while National RoamingLocal Calls

Mobile to ANY(within visiting state) 1 1

Mobile to ANY(outside visiting state) 1.5 1.5

Incoming calls

From anywhere 1 1

International Calls while National Roaming

America,Europe,Asia,Oceania&

SAARC20.44 19.44

Gulf countries and Africa 23.44 22.44

Remaining Countries 43.45 43.45

International Roaming Tariffs

Incoming calls in visiting network Rs.50 As per foreign operator

Incoming/outgoing calls in Karnataka

region

Rs.75 Rs.75



38

CHAPTER 5

SWOT ANALYSIS



39

STRENGTHS

• Airtel has more than 65 million customers (as on July 2008). It is the largest

cellular provider in India.

• It provides broadband and telephone services along with telecommunication

services- both domestic and abroad.

• The stakeholders of Airtel include Sony-Ericsson, Nokia and Sing Tel, with

whom they hold a strategic alliance. This means that the business has access to

knowledge and technology from other parts of the telecommunications world.

• The company has covered the entire Indian nation with its network. This has

underpinned its large and rising customer base.

WEAKNESS

• The company has out-sourced the best of experts in this field.

• Until recently, Airtel did not own its own towers, which was a particular

strength of some of its competitors such as Hutchison Essar. Towers are

important if the company wishes to provide wide coverage nationally.

• The fact that the Airtel has not pulled off a deal with South Africa's MTN

could signal the lack of any real emerging market investment opportunity for

the business once the Indian market has become mature.



40

OPPORTUNITIES

• The company possesses a customized version of the Google search engine

which will enhance broadband services to customers. The tie-up with Google

can only enhance the Airtel brand, and also provides advertising opportunities

in Indian for Google.

• Global telecommunications and new technology brands see Airtel as a key

strategic player in the Indian market. The new iPhone will be launched in

India via an Airtel distributorship. Another strategic partnership is held with

BlackBerry Wireless Solutions.

• The company is investing in its operation in 120,000 to 160,000 small villages

every year. It sees that less well-off consumers may only be able to afford a

few tens of Rupees per call

• Bharti Airtel is embarking on another joint venture with Vodafone Essar and

Idea Cellular to create a new independent tower company called Indus

Towers. This new business will control more than 60% of India's network

towers. IPTV is another potential new service that



41

THREATS

• Airtel and Vodafone seem to be having an on/off relationship. Vodafone

which owned a 5.6% stake in the Airtel business sold it back to Airtel, and

instead invested in its rival Hutchison Essar. Knowledge and technology

previously available to Airtel now moves into the hands of one of its competitors.

• The quickly changing pace of the global telecommunications industry could

tempt Airtel to go along the acquisition trail which may make it vulnerable if the

world goes into recession. Perhaps this was an impact upon the decision not to

proceed with talks about the potential purchase of South Africa's MTN in May

2008. This opened the door for talks between Reliance Communication's Anil

Ambani and MTN, allowing a competing Indian industrialist to invest in the new

emerging African telecommunications market.

• Airtel could also be the target for the takeover vision of other global

telecommunications players that wish to move into the Indian market.



42

PART B

RESEARCH STUDY

“CONSUMER SURVEY ON AIRTEL ROAMING”



43

CHAPTER -1

Research Extracts



44

This report entitled “A CONSUMER SURVEY ON AIRTEL ROAMING” has been

prepared towards the partial fulfillment of the Master in Business Administration degree,

and is submitted to Bangalore University.

The main objective of the study was to know about the Airtel customers who use roaming

service while they are out of state.

The primary data required for the study was obtained by directly contacting the Airtel

customers with the help of telephonic interview. The tool used here was structured

questionnaire with the help of which the Airtel customers (both pre-paid and post-paid)

were randomly interviewed. Only those respondents who have used the roaming service

for at least once in the past six months (between Jan-June 2008) were considered for the

purpose of the study. A total of 100 roaming respondents were selected.

The data’s obtained from the respondents were recorded and are displayed with the help

of tables and graphs in the analysis and interpretation part of this report. The findings

were drawn from the interpretations.

The report also covers the following aspects:

• History of cellular telephony in India.

• Profiles of the Bharti Televenture Ltd, Airtel and its overall prospects.

• Products/ services offered by Airtel.

• Roaming and its types

During the study it was inferred that there is need for the Airtel mobile company toimprove the standard of roaming service and to lower the deposit/rental charges and the

per minute call charges. It was also inferred that most of the respondents are ready to use

the roaming service more often if they are able to receive free incoming calls.

The study was concluded with the help of conclusion and suggestions/ recommendation at

the end of the report.



45

CHAPTER-2

PROJECT DESIGN AND STUDY

Objective of study

Research Methodology

Limitation of study



46

OBJECTIVE OF STUDY

The prime objective of the study was to know about the Airtel customers who use the

roaming service while they are out of the state.

The other objectives of the study are as follows:

• To know the reasons and purpose of using the roaming service.

• To know whether the customers are aware of the roaming tariffs/charges

• To know the factors that will motivate the customers to start using roaming

service.

• To know about the operators that the respondents thinks are cheaper to use while

on roaming.

RESEARCH METHODOLOGY

Research Methodology is the way to systematically solve the research problem. It may be

understood as a science of studying how the research is done. It includes overall research

design-the sample procedure, the data collection method and analysis procedure.

Sample Design:

When doing a research it is not always feasible to conduct a census survey and interview

everyone in the target market. Therefore samples were designed, which represent the

segment of the population that we wish to survey. Sample denotes the representative

items of the population. Since it was difficult to make the study of all the Airtel roaming

customers, samples were drawn from the population randomly and study was conducted.



47

Sample size:

A total of 100 roaming Airtel customers who were on to roaming at least once in the past

six months i.e. between Jan2008- June2008 were selected from the given sample.

Data sources and method of collection:

The report has been prepared as per the information from two sources of data i.e. primary

and secondary sources of data.

Primary data includes data collected by directly contacting the Airtel customers through

telephone and interviewing them with the help of structured questionnaire which was

prepared based on the objective of study.Secondary data includes the data collected from Newspaper, magazines and from the

Internet.

Interview method:

The telephonic interview method for data collection seemed to be much appropriate for

the study, as the study was more sensitive in nature. The respondents were interviewed

with the help of a structured questionnaire and their responses were recorded in the

questionnaire.

LIMITATION OF STUDY

Time was the major limiting factor of the study. The other factor was that the study was

restricted only to the Airtel roaming users who were on to roaming at least once in the

past six months. Finally the study was confined only to the Airtel mobile phone users of

Karnataka state.



48

CHAPTER-3

ANALYSIS

AND

INTERPRETATIONS



49

Table showing the places /destination travelled by the Airtel roaming

users in the past six month.

Places/Destination traveled Percentage of respondents

South Indian region 72

Other region in India (MH, Goa, Delhi,

Gujarat, WB, Punjab etc...)12

To neighboring countries like Nepal,

Bangladesh, Pakistan, and Sri Lanka

etc…

05

To South Asian countries like

Singapore, Thailand, Malaysia,

Indonesia etc….

03

To Middle-East countries like UAE,

Saudi Arabia, Kuwait etc…04

To European countries like UK,

France, Germany, Italy etc…02

To US/ Canada and other countries 02



50

From the above table it is clear that most of the Airtel roaming users have use the

roaming service in the south Indian region i.e. 72 out of the 100 respondent has used

this regional roaming service. The south Indian or the regional roaming region

includes the state like Kerala, Tamil Nadu, Andhra Pradesh and Pondicherry. In

addition to this, 12 of the 100 respondents had been on to national roaming travelling

across the country. National roaming region covers other states of the country. When

it comes to international roaming on a handful of respondents had been on to

international roaming. When it comes to international roaming only a handful of

customer has availed this facility.

Chart showing the places/destination travelled by respondents in the

past six month.



51

Table showing frequency of visit in the above mentioned places.

Frequency of visit No: of respondents

Once a week or more often 10

Once in two weeks 13

Once a month 32

Once in 2-3 months 28

Once in 6 months 11

Less often then once a year 06

Total 100

The data of the above table states that out of the 100 respondents, around 32 of them

goes on roaming once in a month and 28 of the respondents goes on roaming once in

2-3 months. 10 of them are on roaming once a week or more often and 13 of them are

on roaming once in two weeks. 11 of the respondents uses roaming once in six

months and the remaining six of them are on to roaming less often then once a year.



52

Graph showing the frequency of visit made by respondents to the

above mentioned palces.



53

Table showing the reason of travel to the earlier mentioned places

The above data indicates that out of the 100 respondents, 40 of them travel outside the

state for personal reasons and another 24 of them travels out of karnataka on an

official visit. The rest 36 of the respondents leaves the state for both personal and

official reasons

Chart showing the reason for travel by the respondents.

Reason for Travelling No: of respondents

Personal 40

Official 24

Both Personal & official 36

Total 100



54

Table showing the telecom services that are used by the respondent

to make call while on roaming

Telecom services used while on roaming No: of respondents

Own cell phone 55

Cell connection of the local operator in the city in

which traveling04

Landline 10

STD/ISD, Net to phone card 28

Others 03

Total 100

From the above data it can be grasped that out of the 100 respondents, 55 of

them use their own cell phone to make outgoing call while on roaming. 28%

and 10% of the respondents uses STD/ISD and landline service respectively.





56

Table showing the important reasons because of which the

respondents decided to use the roaming services

Reasons Percentage of respondents

Very convenient 24

Travel a lot 40

Family should reach while traveling 10

Office/client/business should be able

to reach while on travelling10

Its cheaper than using hotel

phone/Std phone 8

Others 8

From the data obtained from the above table it is clear that 40% of the

respondents access to the roaming service because they travel very

frequently out of the state. Another 10% and 10% log on to roaming service to

stay connected with their family/friends and business/client respectively. 8%

of them have the opinion that use of roaming service is cheaper than the use

of STD/ hotel phone. 24% uses this service as it is very convenient.



57

Chart showing the reasons for using roaming service



58

Table showing the facilities used by the respondents when they are on

roaming

Facilities used Percentage of respondent

Receive call 25

Make call 10

Receive sms 45

Send sms 9

To download tones/location service 1

Others 10

The figures of the above table indicate the facilities that are used by the

customer while on roaming. 25% of the respondents receive the incoming

calls while they are on roaming and 10% of the make outgoing call from their

mobile. About 45% of them use the roaming service for receiving the Sms

while 9% send messages while on roaming. 1% of the respondents uses

roaming facility for identification of the location and downloads ringtones while

on roaming.



59

Chart showing the facilities used by the respondents while on

roaming.



60

Table showing the facilities that are widely used while on roaming

Mostly used facility No: of respondents

Receive call 32

Make call 22

Receive sms 46

Total 100

From the study it was reveled that there where three most important facilites

that were used by the respondents while on roaming. These facilities were

receiving incoming call, making outgoing call and receiving sms. Among these

three the most widely used facility was receiving of sms(46%) followed by

receiving call(32%) and making of outgoing call(22%).



61

Chart showing the facilities that are widely used by respondents



62

Table showing the number of respondents that are aware about the

deposit/ rental charges.

Awareness about deposits/ rentalNo: of respondents

Yes 15

No 23

Not sure 62

Total 100

Above table shows that only 15% of the respondents are aware of the deposit

charged that one has to pay for activating the roaming service and the rent

they have to pay for that particular roaming month. Nearly 23% doesn’t know

about the deposit /rental charges. Most of the respondents i.e. around 62%

are not sure about how much they to pay as a rent for using roaming service.



63

Chart showing the number of respondents that are aware about the

deposit/rental charges that one has to pay for using roaming service





65

Chart showing number of respondents that are aware of the per

minute call charges



66

Table showing the average spent per month on roaming services

used.

Amount No: of respondents

0-50 40

51-100 35

101-150 13

151-200 08

>200 04

Total 100

This table shows the average spending made by the respondents per month

while they are on roaming. Nearly 40% of the respondents use to spent up to

Rs 50 per month while on roaming. Another 35% likes to spend somewherebetween Rs 51-100. Only 4% of the respondents spend more than Rs 200 or

above while on roaming.



67

Chart showing average spending per month on roaming service



68

Table showing the steps taken by Airtel, that would make to use the

roaming service more often.

Steps taken by Airtel Percentage of respondents

Lower call charges 20

No monthly charges to be paid 20

Receive incoming call free when on

roaming50

Others 10

From the above table almost 50% of the roaming users want Airtel to make

incoming free while they are on roaming so that it will motivate them to use

roaming service more often. About 20% wants Airtel to lower the call charges

lower and 20% feels that they will use roaming service more often if no

monthly charges are to be paid.



69

Chart showing the steps taken by Airtel which would make the

respondents to use roaming service more often



70

Table showing the type of connection cheaper to use roaming service

Type of connection No: of respondents

Pre-paid 32

Postpaid 18

Same on both 30

Don’t know 20

Total 100

From the above figures, about 32% of the respondents feels that pre-paid

connection is cheaper to use while on roaming. Only 18% feels that it is

cheaper to use post-paid connection for roaming. 30% thinks that its same on

both the connection and 20% respondents have no idea about which is the

cheaper connection while on roaming.



71

Chart showing the type of connection that the respondents thinks is

cheaper to use for roaming







74

CHAPTER-4

FINDINGS



75

Based on the feedback obtained from the respondents the findings were as

follows:

Most of the respondents use roaming service either for regional roaming or for

national roaming. Only a negligible amount of respondents use international

roaming service.

The purpose for using the roaming service are either personal or for official

reasons. But is widely used for personal reason.

It was inferred that around 55% of the respondents use their own cell phone for

making outgoing call while on roaming.

Most of the respondents use the roaming service because they travel out of state

frequently. Some uses this service as they find this service very convenient and

want to stay connected with their family and clients while on roaming.

The facilities that are widely use by the respondents while on roaming are

receiving call, making outgoing call and to receive Sms.

The study reveled that around 62% of the respondents are not sure about the

deposit/rental charges that one has to pay for availing the roaming service and

23% doesn’t know about this.

Only 26% of the respondents are aware of the per minute call charges charged by

Airtel while they are on roaming.

The study also reveled that about 75% of the customers spends up to Rs100 per

month in an average for the roaming service used and only 4% more than Rs 200.

When asked about what steps taken by Airtel would make them to use roaming

service more often it was found that nearly 50% of the respondents wants the

incoming calls to be made free, 20% wants reduction in call charges.



76

When asked about which connection is cheaper to use roaming service, 32% felt

that Pre-paid connection is cheaper while 30% are with the opinion that it’s the

same on Pre-paid and Post-paid connections.

When asked regarding which mobile operator is charging the lowest fares for the

roaming service, around 26% are with the view that all the cellular operators are

charging the same fares. 18% fells that Airtel is cheaper and 20% feels that

Reliance is cheaper to use while on roaming.



77

CHAPTER-5

CONCLUSION



78

AirTel comes from Bharti Cellular Limited - a part of the biggest private integrated

telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service

provider, with a footprint in 15 states covering all four metros. It has over eight

million satisfied customers.

Bharti, 28-percent-owned by Singapore Telecommunications Ltd., is India's market

leader for services using the GSM (Global System of Mobile Communications)

standard.

Its India’s leading private sector provider of integrated telecommunications services

with an aggregate of 8.0 million mobile customers across the country & over 10 lakhs

customers in Karnataka. It is also the leading cellular service provider in Karnataka

leaving behind all the other operators.

Today, AirTel offers its customers choice and superior value for money with a range

of innovative value-added services backed by excellent customer service. The

customers can either opt for Pre-paid scheme or the Post-paid scheme.

As a socially responsible corporate citizen of Karnataka and the Category leader,AirTel shall always be at the forefront to support social initiavites.

In a survey conducted by TRAI in March 2003 for service quality – AirTel Karnataka

has been Ranked BEST Cellular Service Provider in the country & is also the first

operator to be bestowed the ISO certification for quality standards

The subscribers base for GSM-based operator Bharti Tele-Ventures Ltd, rose 4.3% to

8 million in July from 7.67 million the previous month.

Consecutively for four years 1997,1998, 1999 and 2000, AirTel has been voted as the

Best Cellular Service in the country and won the coveted Techies award

Roaming is defined as the ability for a cellular customer to automatically make &

receive voice calls, send & receive data, or access other services when travelling

outside the geographical coverage area of the home network, by means of using a

visited network.





80

CHAPTER-6

SUGGESTIONS

ANDRECOMMENDATIONS



81

Airtel should continuously improve the standards and competitiveness of the Cellular

service and should try to attain the status of world class infrastructure and deliver the

benefits of affordable mobile telephony services to the people of India.

It should maintain and upgrade the quality of services in terms of speech transmission,

ability to access services, coverage, security etc., to facilitate the expansion of cellular

services.

Airtel should take more aggressive stand to safeguard its position as number one

cellular operator in Karnataka and also should attempt to strengthen its position in the

entire country.

Airtel should undertake continuous efforts to ensure customer satisfaction.

Airtel should strengthen - strong marketing, huge nationwide reach and financial

stability - to edge out its rivals in the western belt in the coming months.

They should come within the scenario of attractive packages, what will actually

benefit the customer.

Airtel should start its operations in North-eastern states and in the state of Jammu &

Kashmir as this region are backward in Tele-communication.

They should spread its network to the entire parts of rural Karnataka and should

install few more towers in the urban regions to improve its connectivity.

The company should come up attractive offers and schemes in order to maintain its

existing customer and to attract its rival’s customers.

AirTel should add more countries under its belt to provide seamless international

roaming.

Airtel should lower the call charges to its roaming customers.

The roaming tariff should be clearly communicated to the customers.



82

The rental and deposit charges that one has to pay for activating the roaming or using

the roaming services should be lowered and stated clearly to its customers.

Airtel should make incoming free to its customers while on roaming as this will

induce more and more customers to use roaming service.

Airtel should keep the roaming tariff lower than that of its competitors.

Airtel per minute call charges charged for roaming customer are not uniform. This is

creating great confusion. So Airtel must take necessary measure to bring uniformity in

the per minute call charges.

The international roaming tariff should be revisited.

The customers should be informed through sms regarding the network that they have

to select while they are on to roaming.

The customers should be able to get access to the Airtel customer care of Karnataka

while they are on roaming for getting their queries solved.

The state of Maharashtra and Goa should be included under the zonal roaming area.

The company should come with attractive roaming package, what will actually benefit

its roaming customers, and would make more customers to use the roaming service.



83

BIBLIOGRAPHY



84

News paper:

The times of India

Websites:

www.airtelworld.com

www.google.com

Reference book:

Research methodology by C R Kothari



85

ANNEXURE



86

QUESTIONARE

1.NAME__________________

2. Destination traveled?

Southern India

Other region

Neighboring countries

South eastern Asia

Middle east Europe

Canada/ US

3. Frequency of visit?

Once a week

Once in two week

Once a month Once in 2-3 months

Once in 6 months

Once a year

4. Reason of travel?

Personal

Official Both



87

5. What telecom services do you use to make call while on

roaming?

Own cell phone

Connection of local operator

Landline

STD/ISD

Others

6. What are the reasons of using roaming service?

Convenient

Travel a lot Family should reach while traveling

Office/client should reach while traveling

Cheaper than hotel phones

Others

7. What facility do you use while on roaming?

Receive calls

Make calls

Receive SMS

Send SMS

Download tones/location service

Others

8. Which facility do you widely use?

Receive calls

Make calls

Receive SMS



88

9. Are you aware of deposits and rental charges?

Yes

No Not sure

10. Are you aware of per minute charges?

Yes

No

Not sure

11. On an average how much do you spend on roaming?

0-50

51-100

101-150

151-200

more than 200

12. What service of AIRTEL makes you use more roaming service?

Low call charges

No monthly charges

Receive incoming call free

Others

13. What type of connection do you have?

Pre-paid

Post-paid

Same on both

Don’t know



14. Which service operator is cheaper on roaming?

AIRTEL RELIANCE

HUTCH/SPICE/BSNL

ALL ARE SAME

DON’T KNOW

Documents

Varun kumar- Airtel