Professional Documents
Culture Documents
INTRODUCTION TO 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
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. 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licenses withdrawn.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.
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1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR
RESOLUTION
Indian Cellular market immediately after the first round of licensing in 1994-96 was beset 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:
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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.
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.
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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.
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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 Vodafoneison
Whampoa, via Vodafoneison 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, Vodafoneison Whampoa
practically controls Fascel and Usha Martin Telecom, thus circumventing the 49 percent limit
on foreign ownership in Indian cellular operators. Vodafoneison Whampoa is also the
controlling shareholder of Vodafoneison 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 by Escotel with four, Vodafoneison with three, and Reliance and Idea cellular with one
each. Bharti and Vodafoneison 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.
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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
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.
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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
warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward
transactional alerts to their customers.
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• 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.
Year Event
1851 First telephones in India
1943 Nationalization of telephone companies
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
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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. 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. 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.
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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. 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.
Bharti is the leading cellular service provider, with a footprint in covering all four metros. It has
over eight million satisfied customers.
JOINT VENTURES
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 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 telecommunication services based
on a strong customer base consisting of approximately 8.37 million total customers which
constitute, approximately 17.67 million mobile and approximately 2704,000 fixed line
customers, as of June 30, 2004Bharti Tele-Ventures current businesses include -
• Mobile services
• Fixed-line
• National and international long distance services
• VSAT, Internet services and network solutions
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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 Strategic Business Units (SBU) report to the respective
business's President.
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PROFILE OF THE COMPANY
Sunil Bharti Mittal is the Chairman & Managing Director of Bharti Airtel Ltd. Head quartered at
New Delhi, India.
Bharti Airtel, India’s leading private integrated telecom company has been at the forefront of
the Telecom revolution and has transformed the telecom sector with its world-class services
built on leading edge technologies. Bharti has been a pioneering force in the telecom sector
and today enjoys a strong nationwide presence.
Sunil started his career at a young age of 18 after graduating from Punjab University in
India and founded Bharti, with a modest capital, in the year 1976. Today, at 50 he heads a
successful enterprise, amongst the top 5 in India, with a market capitalization of over US$ 40
billion and employing over 30,000 people.
Bharti has grown successfully in partnership with various leading companies of the world -
Singapore Telecom, Vodafone, Warburg Pincus, British Telecom to name a few. The other
businesses in the group are consumer electronics (Bee tel), life insurance with AXA of France
(Bharti AXA), and a joint venture with the Rothschild group to develop Indian horticulture and
export fruits and vegetables to the world (Field Fresh) Bharti has recently entered into a JV
with Wal-Mart for setting up supply chain, logistics and cash and carry to support the
burgeoning retail market in India.
Sunil is an alumnus of Harvard Business School, MA, USA.
Sunil has been conferred one of the highest civilian award – Padma Bhushan.
Sunil has been conferred the degree of Doctor of Science (Honoris Causes) by the G B Pant
University of Agriculture & Technology.
Bharti Enterprises, India's leading telecom conglomerate, 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. Bharti has many joint ventures with telecom leaders
like SingTel, Singapore; British Telecom, UK; E.M.Warburg Pincus, USA; Talia, Sweden and
New York Life International, USA.
Bharti Airtel was founded in 1995, to the name of BTVL (Bharti Tele Venture Limited).Its head
quarter is in New Delhi. It is Public listed company on BSE. The named changed to Bharti
Airtel in early 2006.
Bharti Tele-Ventures Limited (BTVL) is India's largest Telecom Business operator with more
than 64.4 million subscribers as of April 2009. It also offers fixed line services and broadband
services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal.
The company also provides telephone services and Internet access over DSL in 14 circles.
The company complements its mobile, broadband & telephone services with national and
international long distance services. The company also has a submarine cable landing station
at Chennai, which connects the submarine cable connecting Chennai and Singapore. The
company provides end-to-end data and enterprise services to the corporate customers through
its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing station.
Airtel is a brand of telecommunication services in India operated by Bharti Airtel.
Airtel is the largest cellular service provider in India in terms of number of subscribers.
Bharti Airtel owns the Airtel brand and provides the following services under the brand name
Airtel: Mobile Services (using GSM Technology), Broadband & Telephone Services (Fixed line,
Internet Connectivity(DSL) and Leased Line), Long Distance Services and Enterprise Services
(Telecommunications Consulting for corporate). It has presence in all 23 circles of the country
and has the covers 71% of the current population till FY07.
Leading international telecommunication companies such as Vodafone and SingTel held
partial stakes in Bharti Airtel.
In April 2006 Bharti Global Limited was awarded a telecommunications license in Jersey
in the Channel Islands by the local telecommunications regulator the JCRA. In September
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2006 the Office of Utility Regulation in Guernsey awarded Guernsey Airtel with a mobile
telecommunications license. In May 2007 Jersey Airtel and Guernsey Airtel announced the
launch of a relationship with Vodafone for island mobile subscribers. In July 2007, Bharti Airtel
signed a MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed
network. In August 2007, the company announced it will be launching a customized version of
Google search engine that will provide an 'array of services' to its broadband customers.
In March 2008, Bharti Airtel will roll out third generation services in Sri Lanka in
association with SingTel. This is because Singapore-based Asian telecom major SingTel,
which owns a little over 30% in Bharti Airtel, is a major player in the 3G space as it has already
third generation networks in several markets across Asia.
BHARTI’S MISSION
Meet the mobile communication needs of the customer through
1) Error free service
2) Innovative products and services and
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3) Cost efficiency.
4) Unified messaging solutions
Airtel from Bharti Cellular Limited is a part of the biggest private integrated telecom
conglomerate, Bharti Enterprises.
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Ethical Practices
• Will uphold the highest ethical standards in all internal and external relationship and
will not allow misuse or mis-representation of any facts.
• 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.
Emphasis is laid heavily on human resource development to achieve operational efficiencies.
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2.6 MOBILE STRATEGY
• Capture maximum telecommunications revenue potential with minimum geographical
coverage to maximize its revenues and margins.
• Build high quality mobile networks by deploying state-of-the-art technology to offer
superior services.
• Provide affordable tariff plans to suit each segment of the market with a view to
expand the reach, thereby increasing the mobile customer base rapidly.
• Attract and retain high revenue generating customers by providing competitive tariffs,
offering high quality customer services.
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2.8 MOBILE DIVISION
The Indian mobile market, according to the (COAI), has increased from approximately 1.2
million subscribers as of March 31, 1999 to approximately 37.38 million subscribers as of
December 31, 2004.
Despite this rapid growth, the mobile penetration rate in India, at approximately 3.6% as of
December 31, 2004, is significantly lower than the average mobile penetration rate in other
Asian and international markets.
The number of mobile subscribers in India is expected to show rapid growth over the next four
years, 2006 projected it at 50 million by COAI and 44 million by Gartner.
Bharti Tele-Ventures believes that the demand for mobile services in India will continue to
grow rapidly as a result of the following factors:
• Lower tariffs and handset prices over time;
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2.9 NETWORK
The map below depicts the location of, and provides certain information for, Bharti Tele-
Ventures' existing mobile circles in India:
The key demographics of Bharti Tele-Ventures' mobile circles are set forth below.
All India Bharti Circles Bharti as % of All India
Number of circles
22 16 73%
Area of the circles (in '000 sq. km)(1)
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3,278 1,848 56%
2.10 ACHIEVEMENTS
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• Existing foreign shareholders have acquired direct and indirect equity interests in the
Company for a total consideration exceeding US$1 billion.
FIRST AMONGST
FIRST operator to revolutionize the concept of retailing with the inaugurations of connects
(exclusive showrooms) in 1995.
FIRST mobile communication service provider in India to be certified for ISO9001: 2000.
FIRST in world certified by British Standards Institution for mobile Communication.
FIRST to expand its network with the installation of second mobile switching centers in
1997.
FIRST TO introduce the intelligent network platform first to provide retail subscribers by
forming an association called World 1 Network.
FIRST to provide roaming facility in USA.
FIRST to introduce a wide array of value added services like Smart mail, fax facility, call
waiting, Web-messages, information services etc. to enhance the convenience of its
subscribers.
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• 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.
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• 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.
• Mr. Sunil Bharti Mittal (Chairman and Group Managing Director) was honored as " One
of the Top Entrepreneurs Worldwide" for the year 2000 and "Stars of Asia" for the year 2001
by international business magazine, Business Week.
• Mr. Sunil Bharti Mittal was selected as the "Businessman of the year 2002" by Business
India.
• Mr. Sunil Bharti Mittal was awarded the “Dataquest IT man of the year 2002”.
• Mr. Sunil Bharti Mittal was selected the "CEO of the year 2002" by World HRD
congress.
• Mr. Akhil Gupta (Joint Managing Director) was adjudged as the Chief Financial Officer
for year 2001 for Mergers & Acquisitions activities by EIU.
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Introduction of Indian Telecom sector
The industry is considered as having the highest potential for investment in India. The
growth in demand for telecom services in India is not limited to basic telephone services. India
has witnessed rapid growth in cellular, radio paging, value added services. This is expected to
soar in the next five years.
Recognizing that the telecom sector is one of the prime movers of the economy, the
Government’s regulatory and policy invites have also been directed towards establishing world
class telecommunications infrastructure in India. The telecom sector in India therefore offers
an ideal environment for investment.
The telecommunications initiative in the country is lead by Minister of Communications
through the Department of Telecommunication $ Department of Telecom services and its
undertaking for provision of basic telephone services, national and international long distance
communications, manufacture of complete range of Telecom equipment, research and
development, and consultancy services. The telecom Commission performs the Executive and
policy making functions. The Telecom regulatory authority of India performs the functions of an
independent regulatory body.
About GSM:-
The most prevalent wireless standard in the world today, is GSM. The GSM association
(Global system for Mobile communications) was introduced in 1987 to Promote and expedite
the adoption, development, deployment and evolution of the GSM standard for digital wireless
communications.
The GSM association was formed as a result of European community agreement on the
need to adopt common standards suitable for cross border European Mobile
communications.
Starting of 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 world-wide standards. GSM is today, the world’s leading digital standard accounting for 70%
of the global digital wireless market.
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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.
Although cellular license were made technology neutral in September 1999, all the private
operators are presently offering only GSM based mobile services. The new licenses for the 4th
cellular licenses that were awarded in July 2001 too, have adopted for GSM technologies to
offer their mobile services.
The GSM standard for digital cell phones was established in Europe in the mid-1980s--long
before digital cellular phones became common place in American culture.
It is now possible to locate a person using a cellular phone down to a range of a few meters,
anywhere on the Globe.
About Airtel
Airtel cellular’s antecedents date back to 1995 that time it is known to the named by “BTVL”
(Bharti tele venture limited) and named changed in early 2006 to Bharti Airtel. It is established
by “Sunil Mittal Bharti”.
Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest
Telecom Business operator with more than 64.4 million subscribers as of April 2009. It also
offers fixed line services and broadband services. It offers its TELECOM services under the
Airtel brand and is headed by Sunil Mittal. The company also provides telephone services and
Internet access over DSL in 14 circles. The company complements its mobile, broadband &
telephone services with national and international long distance services. The company also
has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company provides end-to-end data and enterprise
services to the corporate customers through its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circle. Bharti enterprises are public listed company, and its
revenue is $6 billion. In July 2007 the company announced to the collaboration with Nokia-
Siemens for a $900 million expansion of its mobile and fixed network. Vision of the company is
125 million customers on 2010.President of Bharti Airtel is Manoj Kohli, and Joint Managing
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Director is Rajan B. Mittal. Airtel has three BSU unit respectively Mobile, Broadband and
telephone enterprises.
The total customer of Airtel as on 31st May 2009 is “66825935”.The company will invest
up to $3.5 billion this Fiscal 2007-08 in network expansion. In Mar 2009 Bharti Airtel will rollout
3G service in Sri Lanka In associated with SingTel, which stake is 30% in Airtel
Airtel(GSM) 66825935
BSNL(GSM) 36997418
IDEA(GSM) 26140643
Aircel(GSM) 11491986
Spice(GSM) 4497675
BPL(GSM) 1331261
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The market share in percentage of the various GSM service providers in the corporate sector
of India is as follows:-
Airtel: - 24.50% Tata Indicom: - 9.34%
Others:-7.73%
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3. TELECOM IN RAJASTHAN & RELATED ASPECTS
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• GPRS – a new data network which offers an "always on" connection to the Internet, and
increases the speed at which data is transferred over mobile phones. A GPRS device,
such as a desktop/laptop/palm top computer, can be permanently connected to the
network through an internal card or external box, with an aerial for Internet and other
services. Starting bandwidth is up to 28 or 56kbps depending on strength of signal, with
plans to increase this to 128kbps. At the higher bandwidth the service could be a viable,
always-on alternative to ISDN.
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• Third generation (3G) mobile or UMTS (Universal Mobile Telephone Service) will
provide fast Internet access, which will in practice enable data transfer and network
applications to be used from laptop, notebook and handheld computers.
• Satellite phones are bulky and expensive but can be used most anywhere in the world.
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The digital system would offer improved spectrum efficiency, better quality
transmission and new services with enhanced features including security. It would also
permit the use of Very Large Scale Integration (VLSI) technology, which would lead to
smaller, and cheaper mobiles, including hand held terminals. Finally, a digital approach
would complement the development of the Integrated Services Digital Network (ISDN)
with which GSM would have to interface.
GSM initially stood for Group Special Mobile, the CEPT (Conference of European
Posts & Telegraphs) formed the group to develop a Pan-European cellular system to
replace the many systems already in place in Europe that were all incompatible.
The main features of GSM were to be International Roaming ability, good sound
quality, small cheap handsets and ability to handle high volumes of users. GSM was
taken over in 1989 by the ETSI (European Telecommunications Standards Institute)
and they finalized the GSM standard in 1990. GSM service started in 1991. It was also
renamed this year to Global System for Mobile communications (GSM). Today there
are approx. 105 countries with GSM networks or planned networks and many more
are planned with around 32 million subscribers worldwide on the 139 networks. The
MoU "Memorandum of Understanding" has over 210 members from 105 countries; this
organization meets ever three to four months to look at new or better implementations
to the GSM system.
Home Location Register (HLR)
A Home Location Register (HLR) is a database that contains semi-permanent mobile
subscriber information for wireless carriers' entire subscriber base. HLR subscriber
information includes the International Mobile Subscriber Identity (IMSI), service
subscription information, location information (the identity of the currently serving
Visitor Location Register (VLR) to enable the routing of mobile-terminated calls),
service restrictions and supplementary services information.
The HLR handles transactions with both Mobile Switching Centers (MSCs) and VLR
nodes, which either request information from the HLR or update the information
contained within the HLR. The HLR also initiates transactions with VLRs to complete
incoming calls and to update subscriber data.
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Traditional wireless network design is based on the utilization of a single Home
Location Register (HLR) for each wireless network, but growth considerations are
prompting carriers to consider multiple HLR topologies.
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Mobile Station Equipment (MSE) Subscription Services
GSM carriers typically order Mobile Station Equipment (MSE) (or GSM phones) from
their suppliers (Nokia, Motorola, Sony, etc.) in large quantities (e.g. 1000 Units). After
receiving an order, the equipment supplier will program the ordered MSE SIMs with a
range of IMSI numbers.
Once the range of IMSI numbers has been determined, the HLR can be populated
with the new IMSI records that will be configured and activated at a future date by
authorized sales or service subscription representatives. The fact that the HLR can be
populated with ranges or blocks of IMSI numbers creates efficiencies in the storage
and retrieval of routing information.
The wireless carrier distributes the Mobile Station Equipment to Sales Outlets that sell
GSM subscription services. When a new subscriber orders a GSM phone at one of the
outlets, the service representative will create a Service Order (SO) to enter the new
subscriber's service subscription information, including the MSISDN number.
The key to the Service Order is the IMSI that is programmed in the SIM. The SO is
sent to the HLR, where the IMSI record is created. It can either be set to an active
state immediately, allowing the new subscriber to send and receive telephone calls or
it can be activated at a future date.
35
Mobile Subscriber ISDN Number (MSISDN) Call Routing
When a user dials a GSM mobile subscriber's MSISDN, the PSTN routes the call to
the Home MSC based on the dialed telephone number. The MSC must then query the
HLR based on the MSISDN, to attain routing information required routing the call to
the subscribers' current location.
The MSC stores global title translation tables that are used to determine the HLR
associated with the MSISDN. When only one HLR exists, the translation tables are
trivial. When more than one HLR is used however, the translations become extremely
challenging with one translation record per subscriber (see the example below).
Having determined the appropriate HLR address, the MSC sends a Routing
Information Request to it.
When the HLR receives the Routing Information Request, it maps the MSISDN to the
IMSI, and ascertains the subscribers' profile including the current VLR at which the
subscriber is registered. The HLR then queries the VLR for a Mobile Station Roaming
Number (MSRN). The MSRN is essentially an ISDN telephone number at which the
mobile subscriber can currently be reached. The MSRN is a temporary number that is
valid only for the duration of a single call. The HLR generates a response message,
which includes the MSRN, and sends it back across the SS7 network to the MSC.
Finally, the MSC attempts to complete the call using the MSRN provided.
Adding a Second HLR to the GSM Network
As a GSM wireless carrier's subscriber base grows, it will eventually become
necessary to add a second HLR to their network. A service subscription record storage
capacity issue, or perhaps an SS7 message processing performance issue might
prompt this requirement. It might possibly be prompted by a need to increase the
overall network reliability.
Typically, when new subscribers are brought into service, the second HLR will be
populated with blocks of IMSI numbers that are allocated when new MSE equipment is
ordered.
36
Much more complicated SS7 message routing Global Title Translations are required
for Routing Information Request transactions between the MSCs distributed over the
entire wireless carrier serving area and the two or more HLRs. MSC Routing
Information Requests are routed to the appropriate HLR based on the dialed MSISDN
and not the IMSI.
Unlike the IMSI numbers, the MSISDN numbers can not easily be arranged in groups
to reside within a single HLR and therefore, the MSC must contain an MSISDN to HLR
address association record for every mobile subscriber homed on each of the MSCs.
As the example illustrates, the MSC routing tables quickly grow much more extensive
than the STP tables. The network administration becomes increasingly complex and
prone to error.
37
→Caller Line Identification
Call Line Identification provides facility 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 if the same person calls, he is identified.
→60-second pulse
Airtel provides you with a 60-second pulse rate!
Freedoms for you to experience like never before!
→Instant Balance Inquiry
talk-time limit could be checked instantly by calling toll-free number!
→Instant Recharge
Re-charge could be made on prepaid card with just a few simple steps!
→24-hour recharge facility
Round-the-clock recharge facility enables to recharge prepaid card anytime,
anywhere!
→Call Divert, Call Hold and Call Wait
special services like call waiting, call hold and call divert are available with prepaid
card!
→Short Messaging Service (SMS)
Short Messaging Service (SMS) facilitates sending messages
→SMS based Information Services
SMS based information services provides upto-the-minute cricket scores, order
flowers as well as send couriers or check daily horoscope!
→Roaming (National and International)
Airtel's Roaming service enables usage of mobile phone to make or receive calls from
almost anywhere in India and abroad!
38
→Roaming - GPRS - BlackBerry [International]
Airtel's GPRS Roaming service provides GPRS services to access the Internet and
office mails from almost anywhere in India and abroad.
→Prepaid Roaming
Freedom to enjoy the luxury of Airtel’s roaming facility with prepaid connection.
→Itemized Bill
Keep track of billing procedure with Airtel’s itemized billing viz. message as well as call
charges with the easy-to-decipher itemized billing sheet that is billed every month.
→Conversion from Post-Paid to Prepaid
39
4. RESEARCH METHODOLOGY
40
4.1 TITLE OF THE STUDY: -
Market Analysis of Telecom Sector in Pre-Paid Cash Card Retailing
4.2 DURATION OF THE STUDY: -
The duration of the project training was 45 days undertaken to accomplish the title and
objective.
41
Questionnaire Method: For the purpose of the study survey was conducted across different
areas of Jaipur city. The Questionnaire (a sample copy is attached) was prepared according to
the objectives of the project and was administered accordingly. The data gathered through this
exercise became the primary data.
SAMPLING ERRORS
While interpreting the results I kept in mind the potential errors. Two sources of errors are
random sampling error, which arises due to the fact that the sample may not be a true
representative of the population, and non-sampling error which comes up because of faulty
coding, untruthful responses, respondent fatigue etc.
42
Shops Dealing in Cash Cards : 33
43
4.7 LIMITATIONS OF THE STUDY
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/wholesalers refuse to cooperate with the queries.
5. Some retailers/wholesalers 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.
All research papers have its own limitations in terms of methodology and the resources
available for its conduct. This study is no exception to it and has been carried under following
limitation:
Some of the respondents were not forthcoming with information as they thought it
to be a waste of time.
A number of respondents were biased towards a particular brand, which was
giving them better returns.
Some of the respondents were not available so, contacted person was not able
to present a fair view.
Respondent’s lack of time to give information and their casual attitude was a big
hindrance in the study.
44
5. FACTS & FINDINGS
45
INFERENCE:
MARKET LEADER: VODAFONE
The retailers prefer vodafone because
∗ Numerous schemes
∗ Better service
∗ Customer preference
(i) STD/ISD/PCO 20 1
(ii)Departmental stores 17 -
(iii)Telecom Outlet 9 9
(v)Others 752 12
Total 810 24
46
2. Brand holding in the retail outlets
∗ Outlet sells BSNL Recharge coupon along with OASIS cash card
“OTHERS” Outlet details
∗ The “OTHERS” have an upper hand in terms of sale than the electronics, STD/PCO,
Departmental etc.
47
5.2 IN RESPECT TO M I ROAD
About the market:
Market with a rich history, It’s frequented with bookstores, Telecom outlet, Banks (CANARA,
STANDARD CHATERED), showrooms of apparel, footwear houses, and theater & flower
shop. This market surrounds the city.
Total number of Shops : Above 450
Shops dealing in cash cards : 15
Details of the retail outlets
(i) STD/ISD/PCO 32 9
(ii)Departmental Stores 1 -
(iii)Telecom Outlet 5 4
Electronic Gadgets 18 -
(v) Others 2
Total 15
2. Brand holding in the retail outlets
INFERENCE:
MARKET LEADER: VODAFONE
∗STD/PCO outlets have a major holding over here followed closely by the telecom outlets.
∗The customers of this area are mostly of working class followed by students and
∗Vodafone with its better coverage & corporate image satisfies there needs.
OBSERVATIONS :
Specifications of the retail outlets
49
Total 463 5
INFERENCE:
MARKET LEADER: Neck-to-Neck between Vodafone and Oasis
∗It’s not a commercial area the sales of the cash card is low.
OBSERVATION:
1. Details of the retail outlets
51
2. Brands holding in the retail outlets
INFERENCE:
MARKET LEADER: OASIS
The Recharge coupon of BSNL sales is high. More prominence in this area is given to Oasis
with majority of shops selling more Oasis cards. The reasons are:
∗Village connectivity is less in case of Vodafone.
∗Good service to customers & more profit to retailers. For some it’s
Affiliation & sense of duty.
52
About the market:
Covers a stretch of 2-3 kilometer It’s the most prominent area of the city playing host to hotels,
main bus depot (sandhog camp bus station) and Janana Maternity Hospital, Travel Agencies.
Total number of Shops : 376
Shops dealing in cash cards :8
OBSERVATIONS:
Specifications of the retail outlets
INFERENCE:
MARKET LEADER: VODAFONE
∗With its large number of telephone booths and medical shops the market is a major attraction.
∗Still the coverage here is dramatically poor, only 8 shop deals in cash card retailing.
54
OBSERVATIONS
Specifications of the retail outlets
INFERENCE:
MARKET LEADER: VODAFONE Vs BSNL
∗ Irrespective of the fact that oasis has more outlets it’s BSNL
Recharge coupon that seems to have a hold in this area.
55
About the market: Surrounded by K.v.no.1 School & SBI bank this area consists of
Bookshops, stationers, departmental stores and STD/PCO outlets along with a couple of
telecom outlets.
Total number of Shops : 275
Shops dealing in cash cards : 34
OBSERVATIONS:
Details of the retail outlets
56
3. Exclusiveness and combination of brands selling along with OASIS
INFERENCE:
MARKET LEADER: OASIS
∗Due to its location (it’s one of the favorable trade routes) & prominent location the sales in this
area is high with Oasis having a clear gain over Vodafone.
∗People relate to Oasis as a pride of Rajasthan.
57
Adjacent to the university, Canoria College, Commerce College & podar institute. The market
consists of agglomeration of Xerox shops, PCO booths &departmental stores.
Total number of shops : 128
Shops dealing in cash cards :9
OBSERVATIONS:
Details of the retail outlets
58
3. Exclusiveness and combination of brands selling along with OASIS
INFERENCE:
MARKET LEADER: Neck-to-Neck between Vodafone and Oasis
∗ Place is frequented by students & hence here they are the prominent
Customers
∗ Sales low.
59
OBSERVATIONS:
Details of the retail outlets
INFERENCE:
MARKET LEADER: VODAFONE
∗ This is an residential area near the university campus thus it has a
P.G. houses & covers the govt. Quarters of indira nagar.
60
5.10 IN RESPECT TO MALVIYA NAGAR
About the market:
It is a residential area, covering two to three main markets. The most prominent locale is the
Gaurav Towers, which is turning out to be the hub of life for teenagers plus it’s a prime location
area.
Total no of shops : 179
Shops dealing in cash cards : 14
OBSERVATIONS:
1. Details of the retail outlets
61
2. Brand holding in the retail outlets
INFERENCE:
MARKET LEADER: VODAFONE
∗Compared to the vast area, the numbers of shops dealing with the cash cards are less; this
discrimination is due to the fact that Malviya Nagar is a residential area with three main
markets and each being at the center of 3-4 sectors. Thus limiting the growth of other shops
and the shops has their own faithful customers.
∗Gaurav towers provide the maximum sales in compared to this main market
62
5.11 IN RESPECT TO HAWA MAHAL
About the market
This market deals with the shops selling the traditional dresses of Rajasthan; it’s also a major
tourist attraction center. The market mainly comprises of clothes shops, departmental stores
and spare automobiles shop.
Total no of shops : 479
Shops dealing in cash cards :6
OBSERVATIONS :
1. Details of the retail outlets
63
3. Exclusiveness and combination of brands selling along with OASIS
INFERENCE:
MARKET LEADER: VODAFONE Vs OASIS
∗It’s a run down market in respect to the cash cards. This place
doesn’t seem to be gaining the customer’s confidence.
64
2. Brands holding in the retail outlets
INFERENCE:
MARKET LEADER: OASIS
∗Since most of the stores deal with jewelry shops and clothes apparel they don’t want to
diversify into the retail outlets for the cash cards
∗This is the reason as to why the market though having comparatively larger amount of
departmental stores but only Two shops has gone in for sale of cash cards.
∗Vodafone is doing better in terms of market penetration as it is having 2 exclusive retail
outlets.
66
OTHERS Outlet details
INFERENCE:
MARKET LEADER: OASIS Vs VODAFONE
∗One remarkable thing to be noted over here is that out of 10 to12
Watch shops, 3 shops are going in for the sale of cash cards.
∗And here Vodafone sells exclusively in 2 outlets (no exclusive outlet of
Oasis) Moreover here the stock level is comparatively less than that o
of Johri Bazaar but the % of sales is high.
∗Here the STD/ISD/PCO shops that do sell cash cards are in fact the
Subsidiary of the main shops Their details are:
STD + Plastic center + Telecom outlet STD + General Stores
STD + Stationery (only recharge coupon)
OBSERVATIONS:
Details of the retail outlets
INFERENCE:
MARKET LEADER: Stiff competition between Oasis and Vodafone.
∗Due to its location i.e. being adjacent to the main market it faces a lot of competition.
∗The market primitively deals in apparels and thus there are only few shops which have
ventured for the retailing of the Cash card
OBSERVATIONS:
Details of the retail outlets
70
NATURE OF RETAIL NO OF RETAIL OUTLETS SELLING
OUTLETS OUTLET CASH CARDS
(i) STD/ISD/PCO 3 -
(ii)Departmental Stores 3 -
(iii)Telecom Outlet - -
Electronic Gadgets 7 -
(v) Others 185 -
Total 192 -
INFERENCE:
∗This market is all about women starting from Apparels to Footwear
Thus the soul of the market is care of woman’s need.
∗There isn’t even a single outlet that deals with cash card, this could be due to the fact that
Sarogi Mansion is situated facing the main road.
71
BRAND NO. OF OUTLET
AIRTEL 4
VODAFONE 4
BSNL -
RELIANCE -
INFERENCE:
MARKET LEADER: VODAFONE Vs OASIS
∗Has high inventory stock and so is the sales.
72
OUTLETS OUTLET CASH CARDS
(i) STD/ISD/PCO 5 -
(ii)Departmental Stores 8 -
(iii)Telecom Outlet 6 2
Electronic Gadgets 18 4
(v) Others 491 8
Total 528 14
INFERENCE:
MARKET LEADER: VODAFONE
∗The location of this area is a bit subdued in comparison to others. Let’s say Raizar Plaza has
more than 100 outlets dealing with cash cards & Jayanti Bazaar is known for its reliability &
has a reputation to live up to.
∗Retailers give prominence to Vodafone as they feel that a national brand sells & that its
connectivity is increasing steadily by leaps & bounds. But the decision is mostly centered on
the customer preference and service than the commission to the retailer.
73
5.19 IN RESPECT TO JAYANTI BAZAAR
About the market:
Jayanti Bazaar is located as an extension of M.I. road. This market is specific for Electronic
goods shops(includes T.V, washing machines, refrigerators, V.C.D etc.).Moreover shops
dealing with telecom products like handsets, service centers are there. Some shops are
combination of both electronics and telecom outlets. This market is divided into two parts :one
as main Jayanti Bazaar (with 55 shops) and second as Jayanti Bazaar Extension (with 48
shops).
Total number of Shops : 103
Shops dealing in cash card : 15
OBSERVATIONS:
Details of the retail outlets
74
3. Exclusiveness and combination of brands selling along with OASIS
INFERENCE:
MARKET LEADER: OASIS
The stock level is high that ranges from Rs.15, 000 - Rs.1, 50,000. Inspite of tough competition
from Vodafone, Oasis seems to have an edge & people are going in for Oasis because of:
∗It’s Image of being first in Rajasthan.
∗Better services.
∗Customer preference
But shops, which have newly started, prefer Vodafone assuming that it would be more
profitable to them.
75
Electronic Gadgets 2 1
(v) Others 362 6
Total 382 8
76
Total number of Shops : 45
Shops dealing in cash card :3
OBSERVATIONS:
Details of the retail outlets
INFERENCE:
MARKET LEADER: Competition between Oasis & Vodafone.
∗Though this area has a good amount of shops but only 3 are dealing in cash cards. Here the
stocking among the shopkeepers is high as there are only 3 shops dealing in Prepaid and
more numbers of customers.
77
FRAGMENTATION of “TOTAL SHOPS”
MARKET POSITION
300
250
200
150
100
50
0
std dept telecom electronics
78
AGE GROUP
28-35 15-21
20% 15%
21-28
65%
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
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.
OCCUPATION GRAPH
OCCUPATION
10% 15%
20% STUDENTS
EXECUTIVES
HOUSEHOLDS
55% OTHERS
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 housewife, 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 is the professionals.
79
Service Provider Graph
SERVICE PROVIDER
5%15%
30%
50%
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.
Customer Service At Airtel Graph
FULLY PARTIALLY
DISSATISFIED FULLY DISSATISFIED
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
80
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.
1. EDUCATION OR OCCUPATION
STUDENT HOUSEWIVES PRO. SERVICE BUSINESS
BSNL 15 4 10 9 21
AIRTEL 13 8 16 7 25
RELIANCE 15 5 8 15 21
25
20
15 BSNL
10 AIRTEL
RELIANCE
5
0
STUDENT H.WIVES PRO. SERVICE BUSINESS
2. MALE OR FEMALE
MALE FEMALE
BSNL 52 8
AIRTEL 48 12
RELIANCE 57 3
81
100%
80%
60% FEMALE
40% MALE
20%
0%
BSNL AIRTEL RELIANCE
80
60 RELIANCE
AIRTEL
40
BSNL
20
0
LG SONY SAM. PAN. MOTO NOKIA
BSNL 22 38
AIRTEL 29 31
RELIANCE 30 60
82
100%
80%
60% POSTPAID
40% PREPAID
20%
0%
BSNL AIRTEL RELIANCE
35
30
25
20
15
10
5
0
CHEAPEST NON RELATIVE NO COMMENTGOOD NETWORKGOOD SERVICE
AVAILABILITY SUGGEST
83
80
70
60
50 RELIANCE
40 AIRTEL
30 BSNL
20
10
0
E.M. P.M. DEALERS REL ANY
100%
80%
60% NO
40% YES
20%
0%
BSNL AIRTEL RELIANCE
84
40
35
30
25 BSNL
20
AIRTEL
15
10 RELIANCE
5
0
EXCE. GOOD POOR
120
100
80 RELIANCE
60 AIRTEL
40 BSNL
20
0
EXCE. GOOD POOR
85
45
40
35
30
25 BSNL
20 AIRTEL
15 RELIANCE
10
5
0
EXCE. GOOD POOR
86
EXCE. GOOD POOR
BSNL 4 30 26
AIRTEL 12 40 8
RELIANCE 6 49 5
EXCE.
GOOD
POOR
87
35
30
25
20 BSNL
15 AIRTEL
10 RELIANCE
5
0
EXCE. GOOD POOR
POOR BSNL
AIRTEL
GOOD RELIANCE
EXCE.
9.8 OTHER VALUE ADDED SERVICES (CALLER ID, CALL WATING, CALL
FOR WARDONS ETC.
88
EXCE. GOOD POOR
BSNL 17 33 10
AIRTEL 9 35 16
RELIANCE 25 27 8
10. WHEN YOU HAD ANY COMPLAINT IN HOW MANY DAYS IT HAS
SOLVED ?
DAYS 0-2 2-4 4-6 6-8 8-10 MORE NO
BSNL 20 - - - 15 20 5
AIRTEL 37 3 - - - 50 15
RELIANCE 19 11 - - - 24 6
0 to 2
2 to 4
4 to 6
6 to 8
8 to 10
more
no
89
60
50
40
30 YES
NO
20
10
0
BSNL AIRTEL RELIANCE
40
30 YES
NO
20
10
0
BSNL AIRTEL RELIANCE
1. EDUCATION OR OCCUPATION
STUDENT HOUSEWIVES PRO. SERVICE BUSINESS
BSNL 15 4 10 9 21
AIRTEL 13 8 16 7 25
RELIANCE 15 5 8 15 21
90
According to the data taken from customer, researcher come to know that there are maximum
customers of BSNL, AIRTEL and RELIANCE are business man, besides this students also
occupied second rank in this context. On the other hand house wives are those who
categorized in the last position as customer.
2. MALE OR FEMALE
MALE FEMALE
BSNL 52 8
AIRTEL 48 12
RELIANCE 57 3
The respondents were maximum males. By this mean the maximum customer who are using
services are male. And there was 57 customer of Reliance who was male, which were
maximum and in female category maximum number was in Airtel connection.
When this was asked to the customers that which instrument they use, it is found that BSNL
customer have nokia and least was Sony instrument.
In AIRTEL connection maximum 39 has got nokia instrument and less was Panasonic.
And in Reliance LG instrument was maximum and nokia was laest.
BSNL 22 38
AIRTEL 29 31
RELIANCE 23 37
The most of respondent of BSNL, AIRTEL and Reliance had post-paid card
in comparative prepaid. In Reliance the connection of prepaid is not
available so customers have to take post paid connection.
When this question was asked to the respondent BSNL holder reply that this card is cheapest
and 18 go for no comment. Maximum number of customer replied non-availability of other card
when they take connection. The Reliance respondent gives the reason for opting this card the
cheapest value and minimum opt for good networking.
19 respondent of BSNL replied that he has come to know about the company from print media
and minimum from electronic media. The respondent of Airtel is 25 comes fro relatives and
least number comes to know from dealers. And in Reliance maximum comes to know fro
electronic media and least opt on advice of relatives.
92
8. ARE YOU AWARE ABOUT ALL THE SERVICES PROVIDED BY THIS
COMPANY?
YES NO
BSNL 40 20
AIRTEL 54 6
RELIANCE 48 12
Maximum customer of BSNL, Airtel and Reliance know about the services provided by these
company. According to fact and finding it is founded that 66.67%, 90% and 80% customer of
BSNL, Airtel and Reliance respectively know about the facility provided by these company.
There was 63.33% and 51.67% customer of BSNL and Airtel respectively who has
prepaid card services hence they have no need of billing sustem. Out of remaining 33.67% of
BSNL customer 45.45% says that this system is excellent, 22.72% said that is good and rest
said it is poor. In case of Airtel out of remaining 48.33% customer, 79.31% said that it is
excellent and rest said it is good. Billing system is especially important in reliance because this
company has no prepaid card facility. Out of its customers 30% said it is excellent, 61.67%
said it is good and rest said it is poor.
93
25% BSNL customer said that this is excellent, 66.67% said it is good and rest said it is
poor. According to 53.33% customer of Airtel this services is excellent 45% said that is good
remaning takes it is poor. Reliance customer’s said on an average this service is good.
Airtel customers are more satisfied regarding messaging service, 25 said it is excellent and 30
customer said it poor. In Reliance 42 customer said it is good and 10 said it is excellent
remaning said it poor. The main reason was that customer can’t send message to other
cardholder and in BSNL maximum 25 customer was dissatisfied and said we.
Regarding roaming services, BSNL customers 35 said it is good and 15 excellent and
remaining told it poor. And in Airtel customers were least satisfied because non-availability of
network in other city. And in Reliance 45 said it good and the customers were also least
satisfied with this service.
When this question was asked 50% of BSNL customer said good service and 6.67% opt for
excellent and 43.3% remaining told this service as poor. In Airtel 66.67% told its service is
94
good and 20% excellent and remaining 13.33% said it poor. In Reliance 81.67% said good and
10% for excellent and 8.33% for poor.
It was found that BSNL customer were more satisfied. Airtel customer also rank these service
in good find of service. Reliance customer supposes that this service has good find of services.
Reliance customer suppose that this service has good performance. According to 33.33%
customer of reliance it is the excellent service.
In BSNL 66.67
% said it is good service 16.67% said it is excellent and remaining said it is poor. In Airtel
53.33% said it good 28.33% said it excellent and remaining said it poor.and in Reliance 65%
said it good 25% said it excellent and remaining said it poor.
9.8 OTHER VALUE ADDED SERVICES (CALLER ID, CALL WATING, CALL
FOR WARDONS ETC.
95
EXCE. GOOD POOR
BSNL 17 33 10
AIRTEL 9 35 16
RELIANCE 25 27 8
Regarding this service in BSNL 55% said it is good 28.33% excellent and remaining poor. In
Airtel 58.33% said it good, 15% said it excellent and remaining said it poor. And in Reliance
45% said it good 41.46% as excellent and remaining as poor.
10. WHEN YOU HAD ANY COMPLAINT IN HOW MANY DAYS IT HAS
SOLVED?
DAYS 0-2 2-4 4-6 6-8 8-10 MORE NO
BSNL 20 - - - 15 20 5
AIRTEL 37 3 - - - 50 15
RELIANCE 19 11 - - - 24 6
According to the facts, it was found that BSNL 20 get solution within 2 days and 20 more than
10 days and 5 customers never had any problem. In Airtel 37 get solved it within 2 days and
15 never had any problem. In Reliance 19 got solution within 2 days and 24 in more than 10
days and 6 never had any problem.
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RELIANCE 7 53
When this question was asked than maximum number of Reliance customer, which was
53, said no and maximum number 37 of Airtel said yes. And in BSNL 43 said not to switch off.
When this question was asked then most 53 customer of Reliance said yes and 51 in
Airtel, 43 of BSNL The fact was showing that the entire respondent is aware about the new
comings companies
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7. 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.
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.
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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.
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8. CONCLUSION
It is seen that in the normal course of business as presented Knowledge of market is essential
for the development of the product. Thus apparently there is an increasing need for the
development of product in-syncro not only with customer needs but also try to provide more
than customer basic needs. With the customer now becoming tech-savvy and prevalence of
other service provider’s viz. Vodafone, Reliance, and BSNL etc. has resulted in a paradigm
shift regarding consumer behavior and preferences and thus incorporation of changes
effectively is the key word to success. Hence the effect of globalization is perceptible.
This dynamic change has revolutionized marketing. “CONSUMER IS THE KING” is the new
value proposition that is being called upon .In addition, there are many competitors providing
more or less the same services and fighting for a greater share of pie. It is not surprising that
new marketing ideas keep surfacing so as to meet the new market place tests. The problem is
further compounded with anti-regional brand drive i.e. OASIS the voice of Rajasthan was also
the pride of Rajasthan and Airtel’s takeover has resulted in some friction. This may lead to a
tendency towards a general compromise / shifting of brands by the consumer in the market.
One way to deal with the problem is to ensure that some sort of solidarity is worked upon and
transgression of oasis into Airtel is smooth. The survey has identified major areas like Raisar
plaza, M.I. Road and other prominent areas where emphasis has to be laid, so that appropriate
targeting and distribution of cash cards for the different segments brings in results, moreover
absence of exclusive showrooms or tie up with cellphone showrooms would be beneficial. Few
giant players in the telecom sector have lead to cutthroat competition and many organizations
in the market are offering same/similar type of product/s with Vodafone ruling the roost
(Jaipur). In the current market scenario, retailers play important role to create the image of the
company and the product plus incentives are to be better packaged so that the network acts as
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a forum to advocate, pursue and promote the brand Airtel .The companies have to convince
the customer and therefore advertising plays an important role in promoting the company’s
products and with the acquisition of oasis by Airtel the onus has doubled.
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.
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RECOMMENDATIONS
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 make 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?
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10. APPENDIX (QUESTIONNAIRES)
Q.1 For how long you have been using Airtel Product?
0-2 Years
2-5 Years
5-10 Years
No
Vodafone
Airtel
Vodafone
Airtel
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Q.5 If yes, which sources are used?
Magazines
Dealers
Sales Executives
Operators reference
Any other
Q.6 What are the features you look for in a product before making purchase decision? Give
preferences (1-Highest, 6- least)
Brand credibility
Vehicle performance
Q.7. Which of these marketing / sales schemes attracts you while purchasing any
connection?
Good Network
Discount scheme
Service package
Any other
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Q.8 If you have to purchase a new connection or product in near future, which Brand will
you go for and why?
___________________________________________________________
___________________________________________________________
Q.9 Are you aware of various promotional activities being run by Airtel, if yes then how? Are
you satisfied with these promotional activities?
Customer Care
By Ad Films
By Camp
Q.10 How would you rate Airtel performance as your expectation on 5 points scale (5 Highest )
1 2 3 4 5
After Sale service
Maintenance
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11. BIBLIOGRAPHY
Books:
1. Chunawala S.A., Consumer Behavior, Sales and Distribution Management,
Himalaya Publishing House, Second Edition 2008.
2. Kotler Philip, Keller Kelvin Lane, Marketing Management, New Delhi, Published
by Dorling Kindersley (India) Pvt. Ltd, Second Edition 2006.
7. Rao Vithala and Steckel Joel (1998), Analysis for Strategic Marketing, Prentice
Hall, Second Edition 2005.
Websites:
1. http://www.knowthis.com/principles-of-marketing-tutorials/marketing-planning-and-
strategy/
2. http://www.airtelworld.com/aboutairtel
3. http://www.slideshare.net/nusantara99/marketing-mnagement
4. http://en.wikipedia.org/wiki/Bharti_Airtel
5. http://www.financialexpress.com/news/airtel_brand_promotion_in_india
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