Summer Project Report on Airtel

A PROJECT REPORT ON “MARKET POTENTIAL OF DATA PRODUCTS” FOR BHARTI AIRTEL LTD. NOIDA SUBMITTED IN PARTIAL FULFILLMENT OF POST GRADUATE PROGRAM SUBMITTED BY Avinash Kumar Singh

INDIRA SCHOOL OF CAREER DEVELOPMENT PGP 2008-2010 ROLL NO. - SH0810G10-10 SECTION- “G”

Aspire Today Inspire Tomorrow…

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CERTIFICTION

This is to certify that Mr. Avinash Kumar Singh has successfully completed his project titled “Market potential of data products for SME segment” given by Bharti Airtel Ltd. During the academic year 2008-10 in the particular fulfillment of the course PGP (Dual) of Indira School of Career Development, Pune

Prof. Shridhar Aiyer

Prof. M. K. Gandhi

Director ISCD, Shivajinagar Pune

Internal Project Guide


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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Avinash Chodhary- Sales Manager, Bharti Airtel Ltd., for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Data for SME, for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Prof. M. K. Gandhi of Indira School of Career Development, for his/her continued guidance and invaluable encouragement.

Avinash Kumar Singh (Management Trainee)


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Student Declaration

I have completed the project and all other assignments as part of Summer Project, assigned to me at the Company on 3nd July 2009 and have handed over all reports, material, files and books to the satisfaction of my project guide, departmental head of HR. I have also discussed and submitted my final summer project to the company.

Avinash Kumar Singh


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Page of Content Chapters

Pages

A. Executive Summary B. Introduction Of The Project

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1. Introduction 2. Research Methodology (a) Research objective (b) Research design (c) Sample design (d) Scope of study (e) Tools and technique (f) Limitations

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C. Literature Review 1. 2. 3. 4. 5. 6. 7. 8. 9.

10. 11.

12. 13.

D. E. F. G. H. I.

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The Background About Bharti Airtel About Sunil Bharti Mittal Bharti Airtel Structure Board of Directors Partners of Bharti Airtel Corporate Governance Product Line Data Products (a) ILL (b) ILP (c) LL Major Competitors Company Analysis (a) SWOT Analysis (b) BCG Matrix (c) Ansoff Matrix (d) Porter Structure Achievements Government Policy

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Survey Analysis Some Findings Conclusion Suggestion and recommendation Bibliography Appendix


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A. Executive Summary The project assigned was “Market potential of data products for SME segment” in which I have to make a survey and find out the market potential for the data products which include ILL and LL(Internet Leased Line and Lease Line) within SME companies. In this process I prepared a questionnaire to have some sensitive and technical information of the companies. Through this information we analyzed the market potential of the product. We took help of some seniors and my colleagues for these data. On the basis of this analysis we have prepared a report and used pie chart, bar diagrams and tables for better explanation.

Through the survey we visited 60 companfies and had the information regarding the project. While the process, we knew different requirements of different companies like IT Company generally looks for good latency rate (3000 mile/sec.), call centers looks for a high rate of speed (2 Mbps) and many more which was new for me.


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B. Introduction to the Project

1. Introduction Topic- Market potential of data products for SME segment In this project we have to analyze the market potential of the data product in SME segment. We have to collect information from the companies regarding their usage of internet and forecast f the future prospects. For which we have to do the following in respect or the project:• Collection of basic information • Target market segmentation • Questionnaire preparation • Survey • Collection of data • Analyzing the data • Preparing the report

2. Research Methodology a) RESEARCH OBJECTIVE The Indian communications scenario has transformed into a multiplayer, multi product market with varied market size and segments. Within the basic phone service the value chain has split into domestic/local calls, long distance players, and international long distance players. Apart from having to cope with the change in structure and culture (government to corporate), Airtel has had to gear itself to meet competition in various segments – basic services, long distance(LD), International


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Long Distance (ILD), and Internet Service Provision (ISP).It has forayed into mobile service provision as well. Objective of study are: •

Primary Objective:

1) To find out the market potential of Data Products i.e.; Lease Line, Internet Lease Line/Port for SME segment and non corporate. 2) To find out the factors influencing the buying decision of Data Products.

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Secondary Objective:

1) To find out the need of Internet Lease Line 2) To find out the usage of Radio Frequency.

b) RESEARCH DESIGN This research design is exploratory as we need to find out the scope of Data Products for SME segment in Noida & Ghaziabad. The method of data collection is qualitative and descriptive in nature i.e. survey and observation based research. The study is done in steps stated below. 1. Understanding the Data Products. 2. Understanding the difference between DSL (Broadband) and Data Products i.e. Lease Line, Internet Lease Line/Port. 3. Finding different route through which Airtel provides Internet Lease Line/Port. 4. Differentiating the Market segment i.e. Corporate, SME and Commercial 5. Collection of data: •

Primary data- through questionnaire and personal interview of different companies in Noida and Ghaziabad region


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Secondary data- through internal system & software, internet, magazines and newspaper etc.

6. To analyze the data 7. Finally the conclusion and giving recommendation on the basis of research. c) SAMPLE DESIGN The sample was drawn by using Judgmental Sampling Techniques, as we need to do fill the questionnaire from someone who deals in internet connection of his organization. Apart from that, Judgmental Sampling Techniques are more economical than any other. Target Population: Target population includes, Software companies, Exporters, Colleges, Call Centre, Manufacturers, and other companies. Sample size A sample size of 60 was taken. The samples were randomly selected from the population to gather their feedbacks.

d) SCOPE OF STUDY The report in brief presents the following: •

The company wanted to know what other value added services does their clients expect from other than existing ones in order to improve customer satisfaction and customer loyalty.

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The study also brings out the clear picture of Earth moving equipment industries export/import trade and also their futuristic viability.

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The study also identifies the major countries to which exports are carried out whereby the WSL can improve their services to those countries.


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The modulus operands of logistics for Earth moving equipment industries.

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Improved reliability andproductivity of products and services. a. Increased value to customers and the shareholder.

e) TOOLS AND TECHNIQUES OF ANALYSIS 1. With the help of Google and other search engine I listed down the names and address of different companies in Noida and Ghaziabad. 2. Then differentiated those companies in between Corporate and SME. 3. The data was collected from different SME companies and was compiled in an excel sheet. 4. The whole data was transferred into SPSS. 5. Then I used SPSS software for in-depth analysis of the survey. 6. With the help of Descriptive Statistics tools of Analysis in SPSS analyzed the whole data. 7. SNAP SHOT OF SPSS:


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f) LIMITATION 1. The Data collected from the Primary Sources i.e. questions asked from employees and they can be biased. 2. If the interviewer or the interviewee misunderstood the question, it may lead to the failure of the research. 3. Budget constraint. 4. As we are only targeting the SME segment, so any data of a corporate industry may adversely affect the survey.


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Literature Review 1. Back Ground The Indian telecom sector continued its robust growth with the wireless market growing at 9.91 percent and churning revenues worth Rs.371 billion (Rs.37, 196 cr.) for the second quarter ending September, an official agency said Tuesday. A total of 28.44 million subscribers were added in this quarter, the Telecom Regulatory Authority of India (TRAI) said in a statement. The adjusted gross revenue (AGR) for the quarter is placed at Rs.273 billion (Rs.27, 357 cr.) as against Rs.26, 990 cr. (Rs.269 billion) for the previous quarter, thereby showing an increase of 1.36 percent. “The total subscriber base of the wire line and wireless services reached 353.66 million for the quarter ending September as against 325.79 million for the quarter ending June, thus registering an increase of 8.55 percent during the quarter,” it said. The tele-density too reached 30.64 in the September quarter as compared to 28.33 for the previous quarter, TRAI said. Though the wireless subscribers increased from 286.87 million to 315.31 million, the wire line subscriber base decreased for the quarter to 38.35 million from 38.92 million in quarter ending June. However, the average revenue per user (ARPU) for GSM subscribers, all India segment, decreased 7.53 percent from Rs.239 in June to Rs.221 in September. ARPU for postpaid service showed a decline of 2.8 percent from Rs.600 to Rs.584 during the quarter. Prepaid service also showed a 7.5 percent decline in ARPU from Rs.204 in June to Rs.189, TRAI said. As regards the CDMA segment, all India blended ARPU (per month) for the second quarter is Rs.122 as compared to Rs.139 for the previous quarter.


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The internet wire line subscribers witnessed a growth of 12.24 million for the quarter against 11.66 million during the previous quarter registering a growth of 4.97 percent. State-run telecom operator Bharat Sanchar Nigam Ltd. (BSNL) retained its top position and reported a subscriber base of nearly 6.38 million internet subscribers against 5.94 million at the end of last quarter, TRAI said. The second quarter also witnessed a spurt in number of free-to-air (FTA) and pay channels being carried by the cable networks for television. Currently, there are 161 FTA channels and 129 pay channels as reported by 19 broadcasters/their distributors at the quarter ending September. Though the telecom industry saw various ups and downs, the sector witnessed international investor community betting on the Indian market. Telecom Journey


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2. About Bharti Airtel Bharti Airtel was formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest GSM mobile operator with more than 100 million mobile subscribers as of May 15 2009. It also offers fixed line services and broadband services. It offers its mobile 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. It also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Airtel also have services for their corporate customer like end-to-end data and enterprise services to the customers through its nationwide fiber optic backbone, last mile connectivity in fixedline and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. The Company compliments its mobile and broadband & telephone services with national and international long distance services. It has over 35,016 route kilometers of optic fiber on its national long distance network. For international connectivity to east, it has a submarine cable landing station for international connectivity to the west, the Company is a member of the South East Asia-Middle East-Western Europe – 4 (SEA-ME-WE-4) consortiums along with 15 other global telecom operators. 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). Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic


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business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers and all these services are provided under the Airtel brand.

3. About Mr. Sunil Bharti Mittal Sunil Bharti Mittal, founder, Chairman and Managing Director of Bharti Group can be labeled as the most ambitious telecom entrepreneur in India. Sunil a former student of Harvard Business School graduated from Punjab University. The son of a parliamentarian, Sunil did not want to follow his father's footsteps. He had shown an interest in business even from his teenage days. So after graduation, Sunil got together with his friend and formed a small bicycle business with borrowed capital in the1970s. But by 1979, he realized that this business would remain small. So he moved out of Ludhiana, spent a few years in Mumbai and in 1981, was running an import and distribution operation out of New Delhi and Mumbai. By 1982, Mittal had started a full-fledged business selling portable generators imported from Japan and that gave him the chance to involve himself in activities like marketing and advertising. Things went smoothly until the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators 00locally. Sunil Mittal got interested in push button phones while on a trip to Taiwan, and in 1982, introduced the phones to India, replacing the old fashioned, bulky rotary phones that were


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in use in the country then. Bharti Telecom Limited (BTL) was incorporated and entered into a technical tie up with Siemens AG of Germany for manufacture of electronic push button phones. By the early 1990s, Mittal was making fax machines, cordless phones and other telecom gear. The turning point came in 1992 when the Indian government was awarding licenses for mobile phone services for the first time. One of the conditions for the Delhi cellular license was that the bidders have some experience as a telecom operator. Mittal clinched a deal with the French telecom group Vivendi. Two years later, Sunil secured rights to serve New Delhi. In 1995, Bharti Cellular Limited (BCL) was formed to offer cellular services under the brand name Airtel. Within a few years Bharti became the first telecom company to cross the 2-million mobile subscriber mark. The company is also instrumental in bringing down the high STD/ISD, cellular rates in the country by rolling the countries first private national as well as international long-distance service under the brand name India One. In 2001, the company entered into a joint venture with Singapore Telecom International for a $650-million submarine cable project, the countries first ever undersea cable link connecting Chennai in India and Singapore. In spite of his deep involvement in work, Mittal the man is calm, seldom ruffled and very down to earth. He says he achieves a sense of detachment and peace with regular practice of yoga. He is thankful for a supportive family including a daughter and twin sons, with whom understandably he doesn't get much time to, spend. His brothers Rakesh and Rajan are also with him in the business.


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4. Bharti Airtel Structure

5. Board of Directors Sunil Bharti Mittal is the Founder Chairman and Group CEO of Bharti Enterprises headquartered at New Delhi , India . Bharti Enterprises is one of India 's leading business groups with interests in telecom, financial services, retail, manufacturing, and agri business.

Mr. Rajan Bharti Mittal is the Managing Director of Bharti Enterprises and Group Lead Director of Bharti Wholesale and Retail Business. He is actively involved in overseeing the activities of the Group at the corporate level and has rich experience in the field of marketing and brand management.

Mr. Akhil is the Deputy Group CEO and Managing Director of Bharti Enterprises and a Director of Bharti Airtel Limited. He has been closely associated with a range of strategic, financial, mergers and acquisitions and business performance issues of the group.


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Mr. Rakesh Bharti Mittal is the Vice-Chairman of Bharti Enterprises and the Vice Chairman and Managing Director of Bharti TeleTech. He is also the Vice-Chairman of Bharti Enterprises and the Vice Chairman and Managing Director of Bharti TeleTech.

Chua Sock Koong joined Singtel in June 1989 as Treasurer. She was appointed Chief Financial Officer in 1999, with responsibility for the Group's financial functions, including treasury and risk management.

Mr. N Kumarhas is been an independent director and member of the Audit Committee since 2001. He was elected Chairman of the Audit Committee in August 2003. N Kumar is the Vice-Chairman of The Sanmar Group, a well known Industrial Group in India that has interest in Chemicals, Engineering and Shipping.

Mr. Craig Ehrlich has served for many years as the Chairman of the GSMA, GSH global telecom association. He joined Hutchison Whampoa in 2003 as a board member of Hutchison Telecommunication Group and advises the group 3G and 2G businesses worldwide.

Mr. Mauro Sentinelli (61 years) is a doctorate in electronic engineering from the University of Rome. He holds a Masters degree in Telephony from Turin University and MBA’s from Insead and Kellog.

Mr. Paul O’Sullivan is a nominee of Singtel and has been a non-executive director of Bharti Airtel since April 2004. He is also a member of the Board HR and ESOP Compensation Committees.


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Mr. Pulak Chandan Prasad is an independent director and member of the Board Audit Committee. He initially joined the Board as a nominee of Warburg Pincus in November 2001

Mr. Bashir Abdulla Currimjee has been an independent director since February 2001. He is also the lead director among the independent directors and a member of the Board HR Committee and Board ESOP Compensation Committee.

Mr. Ajay Lal is a Director of Bharti Airtel Limited. He is a Senior Partner and Managing Director of AIF Capital. He has over 20 years experience in private equity, project finance and corporate banking. Prior to joining AIF Capital in 1997

Mr. Arun Bharat Ram has been an independent director of Bharti Airtel and a member of the Board Audit Committee since March 2006. He belongs to a leading family of industrialists, known for their philanthropy and promotion of art and culture and commenced his career with DCM Limited

Mr. Manoj is the CEO & Joint Managing Director of Bharti Airtel Limited. He heads the integrated telecom operations of entire Bharti Airtel including Mobile Services, Telemedia Services, Enterprise Services and International Operations. Prior to appointment as CEO & JMD, Manoj was the President & CEO of Bharti Airtel.

Mr. Kung Yang is presently the Vice President (Business Management), International Group in SingTel, overseeing new investment opportunities as well as existing investments in the region including Indonesia, India, Thailand, Philippines, Bangladesh, Taiwan, China and Sri Lanka


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Mr. Nikesh is an independent non-executive director and a member of the HR committee and ESOP Compensation Committee of Bharti Airtel. Nikesh is President, EMEA Operations & Senior Vice President, Google. Nikesh oversees all revenue and customer operations, as well as marketing and partnerships.

6. Partners Of Bharti Airtel

NETWORK EQUIPMENT

MOBILE SERVICES

NOKIA, ERICSSON

BROADBAND & TELEPHONE SERVICES

SIEMENS, CORNING, NORTEL

INFORMATION TECHNOLOGY

IBM

CALL CENTER

IBM DAKSH, HINDUJA TMT

EQUITY PARTNER ( STRATEGIC) SINGTEL ALCATEL-LUCENT

Strategic Equity Partners – Bharti Airtel have a strategic alliance with SingTel, which has enabled to further enhance and expand telecommunications networks in India to provide quality service to customers. The investment made by SingTel in Bharti is one of their largest investments made in the world outside Singapore.


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Equipment & Technology Partners – Bharti Airtel believe in deploying the finest technology and operating state-of-the-art networks. Equipment suppliers for mobile networks include•

Ericsson

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Nokia & Huawei

In case of the telephone services and long distance networks, equipment suppliers Include•

Siemens,

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Nortel

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Corning

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CISCO and

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WIPRO among others.

Bharti Airtel has an information technology alliance with IBM for group - wide information technology y7 requir7ements. And also have a technology alliance with Nortel for call center technology requirements.

Alcatel-Lucent JV was important venture in Telemedia industry. It is a global telecommunications

corporation,

headquartered

in

Paris,

France.

It

provides

telecommunications solutions to service providers, enterprises and governments around the world, enabling these customers to deliver voice, data and video services. The company focuses on fixed, mobile, and networking hardware, IP technologies, software, and services. It leverages the technical and scientific expertise of Bell Labs, one of the largest innovation and R&D houses in the communications industry. Alcatel-Lucent has operations in more than 130 countries.


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7. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner, which will ensure sustainable, capitalefficient and long-term growth thereby maximizing value for its shareholders, customers, employees and society at large. Company’s policies are in line with Corporate Governance guidelines prescribed under Listing Agreement/s with Stock Exchanges and the Company ensures that various disclosures requirements are complied in ‘letter and spirit’ for effective Corporate Governance. On April 20, 2006 CRISIL re-affirmed that “During the financial year 2003-04, Bharti Airtel was assigned highest Governance and Value Creation (GVC) rating viz. ‘Level 1’ rating by CRISIL, which indicates that the company’s capability with respect to creating wealth for all its stakeholders is the highest, while adopting sound Corporate Governance practices. To achieve the principle of Corporate Governance which will help in ensuring sustainable and long term growth, Company needs to maximize value for its shareholders, customers, employees and society at large. Following things should kept in accordance with the effective planning•

Human Resource Development.

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Memorandum of Association.

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Articles of Association.

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Audit Committee

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Remuneration Committee

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Board of Directors

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Investor Grievance Committee

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Corporate Social Responsibility


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8. Product Line (a) Mobile Experience total cost control, no rentals and easy billing with our postpaid and prepaid services. Explore the world with our roaming services and get absolutely cool offers with Airtel Live. •

Prepaid Enter the world of limitless possibilities with Airtel Prepaid. The service that helps you gives words to every feeling, an expression to every emotion.

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Postpaid Life becomes much simpler with your Airtel Postpaid. It gives you the unlimited freedom to reach out to people in your special way.

(b) Home Phones Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel •

Fixed Line Airtel welcomes you to its world of telephony services, which offers you world class services with its cutting edge technology.

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Fixed Wireless Phone Avail of the convenience of a mobile phone on a fixed line, without any cables disturbing the ambience of your living room!

(c) Broadband and Internet Experience a world class service and cutting edge technology with Airtel landline and our feature rich Wireless fixed line. What’s more, calling is made more fun and convenient with services and entertainment on Airtel. •

Wi-Fi Aspire Today Inspire Tomorrow…

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One Airtel Offer

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Power of 16 Mbps

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IPTV

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Airtel Net PC

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Airtel PC Security

(d) BlackBerry on Airtel BlackBerry from Airtel is an 'always connected' wireless solution providing easy and secure access to your email and data .It can be constantly accessible on mail, talk on phone and surf the internet at the same time, schedule and coordinate appointments in the middle of meetings, raise approval request, log in orders, update business databases and stay connected to your colleagues, customers, friends and family – from anywhere, anytime.

(e) Email on the go Want to access information on your mobile? Airtel brings you Email on the go. You can choose from BlackBerry and Windows Mobile 5.0 depending upon the usage patterns, requirement and suitability. •

Windows Mobile 5.0

Windows Mobile extends the familiar Windows and Office experience to mobile devices, helps to maximize the users time and stay in touch with 'what' and 'who' matters to them. •

Airtel Easy Mail

Airtel Easy Mail is an email solution which works on true PUSH technology enabling both the corporate as well as the individual customers to get their emails as it gets delivered to their mail boxes. (f) Wireless Internet


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With Airtel Wireless Internet, you’ve the freedom to access the Internet anytime, anywhere across India. It enables Internet, Email & Office applications with real-time secure VPN access to corporate applications whilst on the move. •

Data Card

This is a superior PC Data Card solution, which delivers wireless internet by EDGE and GPRS technologies. •

USB Modem

Now get an instant access to internet and your corporate applications with our USB Modem.

(g) Digital TV Discover the magical experience of digital entertainment with Airtel. From DVD quality picture and sound, the best and widest variety of channels and programs to the best ondemand content on Airtel Live, your TV viewing experience change forever with digital TV from Airtel

(h) Digital TV Interactive Change the way you watch television with the most advanced technology in the world, digital TV interactive from Airtel. 'digital TV interactive' is the next-generation internetprotocol based TV Service with digital quality audio and video, a wide range of TV programming, video on demand services and a host of other amazing interactive features. Now demand what you want to watch, when you want to watch it.

9. Data Products Aspire Today Inspire Tomorrow…

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(a) Internet Leased Line •

A Leased Line is a point-to-point connection between two places, implemented by different transmission media (here through Airtel own network), which creates one link between its nodes.

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A dedicated connectivity is established by creating a logical E1 circuit between Ethernet port of the RSU, Ethernet port of BG-40/BG-20 at our MSU (224, Okhla Phase III, Delhi). The Port at RSU is extended to customer location through LAN extenders (Schemed Make). The Output Interface is Ethernet which would go in the Layer 3 Equipment (Router/ L3 Switch) of the customer

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An E1 standard Leased Line provides transmission speed of 2,048 kbps.

Technical Detail We at Airtel will dedicate an Internet port of at our end. This would enable Client Organization to have Unrestricted Access to the Internet. For Internet connectivity, the hardware required by Client Organization is as mentioned below: •

Leased line Router/Layer 3 Switch at Client Organization office premises. This is to be provided by the customer. The Router would be responsible for forwarding and routing the traffic towards the end locations and to the remote server. The recommended brand is Cisco, but the customer is free to choose the make for himself.

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Normally in the Internet leased line, pairs of digital Modem with G.703 and V.35 Interfaces for a bandwidth of 64 kbps and an Interface Converter for bandwidth greater than 64 kbps is required but in Airtel network we will provide an Ethernet output, no such modems are required.

KEY DELIVERABLES:

Scalability: A Leased Line Internet link is established between customer’s premises and Airtel hub. A pre configured dedicated port is made available for Uninterrupted Internet Access for the Network, 24 hours a day and 365 days a year. The bandwidth options available are 64 Kbps onwards.


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Security: Protection from intruders has become a major concern for most of the organizations. Keeping the network security of Client Organization in mind, Airtel provides security at various levels at our end. Since it is a public domain offering every customer has to arrange its own security by means of firewall etc. at customer end.

Support: Airtel provide around the clock technical support for network monitoring and fault rectification from implementation of the solution to after sales support.

High-throughput: Airtel shall provide you the throughput as per the commitment.

Network: Bharti Airtel has their own end-end network, hence no dependency on any other network.

Manageability: Since the only equipments used for the setup is Router/Switch, it becomes very easy to manage the setup at the customers end. Network i2i Overview Network i2i is a completely owned circuit of Bharti, connecting Chennai to Singapore. It transports voice and data traffic under Bharti ILD License and represents the first private submarine network ushering the era of open global connectivity regime. The submarine cable terminates in the respective Landing Stations in Chennai and Singapore. The Landing Station is Chennai is owned and managed by Bharti and the Landing Station in Singapore is owned and managed by SingTel. Bharti and SingTel jointly provide data Service on i2i. For customers in India Bharti would provide single window account management to customers and service providers.


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In India, i2i is currently interfaced with the Bharti NLD backbone. Thus, seamless connectivity can be provided from more than 200 cities in India. Further by virtue of fixed line services being offered by Bharti, strong synergy of FSP-NLD-ILD present a unique end-to-end value proposition to the end customers as well as International Carriers partnering with Bharti. The value proposition is further extended to other cities through interconnect and partnership with fixed line operators.

In Singapore, i2i is further interconnected with other submarine cable systems (C2C, APCN, JUCN, CUCN etc.) for the onward journey. This is affected by establishing bilateral relationship between Bharti and leading Global Carriers wherein the Global Carrier provides connectivity from Singapore to various destination countries.

SEA-ME-WE 4 The South East Asia-Middle East-West Europe 4 (SEA-ME-WE 4) project is the fourth project in the SEA-ME-WE series. SEA-ME-WE 4 is built by a consortium of over 16 global telecom majors. Bharti is one of the largest stake-holders in the SEA-ME-WE 4.The consortium is headed by France Telecom, with an estimated total cost of $500-600 million, while Algeria Telecom, Bangladesh Telegraph and Telephone Board, Communications Authority of Thailand, ETISALAT (UAE), France Telecom, MCI (USA), Pakistan Telecommunications Company and Singapore Telecom are the other companies involved in the project. The cable links 14 countries such as UAE, Egypt, Algeria, Singapore, Malaysia, Thailand, Bangladesh, and India among others on its route from Europe to Asia. This submarine cable Aspire Today Inspire Tomorrow…

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system linking South East Asia to Europe via the Indian Sub-Continent and Middle East with Terminal Stations in Singapore, Malaysia, Thailand, Bangladesh, India, Sri Lanka, Pakistan, United Arab Emirates, Saudi Arabia, Egypt, Italy, Tunisia, Algeria and France. The equipment providers for the system are Alcatel Submarine Networks, France and Fujitsu Ltd., Japan.

(b) Internet Leased Port ILP stands for Internet Leased Port. It is a high speed, dedicated premium bandwidth designed to specifically meet the corporate user’s requirement. ILP bandwidth is delivered to our customers with assured SLA parameters and service commitment on critical network performance metrics like latency, packet drop, and network availability etc. ILP services are designed to ensure allow our corporate users to run their web based mission critical applications on Internet with reliable network performance at all times.

Internet bandwidth is delivered to our customers through wired/wireless last mile access. Airtel Point of Presence (PoP) is connected to the customer’s premise over Airtel owned and operated wired leased line last mile. In case wired medium is not feasible at a particular location the bandwidth can also be delivered through WiMAX (wireless last mile). The SLA commitments are on the end to end link which ensures the desired levels of service availability to the customer at all times. Symmetric bandwidth means equal upload and download capacity of the link. If the customer buys 1 Mbps symmetric Internet Bandwidth he gets 1 Mbps Upload and 1 Mbps download capacity. In case of asymmetric bandwidth the customer can get cost advantage by changing the 1:1 ratio between upload and download capacities.

Salient Features –

• • • • •

Unparallel Service Level Guarantee Premium Service dedicated to an individual customer 24 x 7 Dedicated Internet access Easy scalability 24 x 7 Network Monitoring Service and Technical Helpdesk Aspire Today Inspire Tomorrow…

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(c) Leased Line Leased lines (or private lines) are point-to-point dedicated circuits, provided on Airtel National Long Distance Backbone. In today’s communication dependent environment, it is not enough to be connected but also to stay connected. Business continuity is fast becoming a “must have” for every Enterprise client. The unpredictability of network uptimes worldwide, has led to the necessity for clients to address needs for route diversity, media redundancy, and most importantly real-time data re-routing. Customers are fast looking at outsourcing the management of their network to the Carriers.

Airtel Leased Lines are dedicated, secure point-to-point Layer 1 circuits that are carried over the SDH network and have no connection to the PSTN. Leased lines are available in several bandwidth options from 64K to STM speeds. They provide a private and secure connection between two or more locations in a customer’s network, making them an ideal solution for connections that are time and/or content sensitive. Whether a customer needs to transmit voice, data or video, leased lines provide a guaranteed bandwidth option for higher throughput and lower latency over a Carrier network. Leased lines are dedicated circuits to connect equipment at the ends of the line. They provide connectivity and data transfer between the customer’s locations without any packet loss or jitter for error-free transmissions. Customers can also use leased lines to send multiple types of traffic over the same circuit.

10. Competitors (a) Aircel Aircel Business Solutions (ABS), one of India's pioneers of WiMAX based services is constantly changing the connectivity landscape to take India to another digital crescendo from where growth, productivity and improved quality are only inevitable. WiMAX, an acronym for (Worldwide Interoperability for Microwave Access) is touted to be the next generation wireless communication platform Aspire Today Inspire Tomorrow…

32

(b) Spectrum Spectrum Communications Services Ltd. is a Nigerian based Company, with a strong reputation in the Oil Companies, Financial Institutions, embassies and World Bank sponsored programmes. The company is run by a team of highly qualified engineers and administrators. This team has a combined experience of over 150 man-years in electronics and communications Planning, Installation, Testing, Commissioning, Consultancy and Management.

(c) Tulip With a rapidly changing business landscape in communication services, it is necessary for Telecom service providers to establish their brand as best in the market and at the same time transform their processes to support and launch new services continuously across multiple channels of communication. Our industry knowledge, decades of experience, technology insight and business acumen enable our customers to achieve their strategic goals.

(d) Reliance The most efficient and cost-effective way to connect two offices is a leased line; it provides a clear and continuous channel between two end points. Little wonder that most large enterprises use leased lines for connectivity. Reliance's 'end-to-end leased line' is delivered through its state-of-the-art optic fiber network with its unique self-healing survivable architecture. With its 'fiber-to-building' approach, Reliance has reduced the last mile to just a few meters of in-building copper cabling. Being mostly optic fiber-based, our network can offer reliable and scalable services with a high degree of availability to our customers.

(e) CJ Online CJ Online is offering its services on a digital platform. The advantages of which are manifold. It is commonly known that a major part of the cost of surfing the Internet is telephone usage. On a digital connection, the same things take much less time to be done by way of faster downloads of images, sound, animations & video, thereby reducing your online time & telephonic usage. Digital links are also less susceptible to disturbances and noise thereby ensuring longer connections without unwanted dropping of lines.


33

11. Company Analysis (a) SWOT Analysis Bharti Airtel

Strengths •

Bharti Airtel has more than 100 million customers (14 May 2009). It is the largest cellular provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers.

•

Other stakeholders in Bharti 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.

Weaknesses •

An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a


34

cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. •

Until recently Airtel did not own its own towers, which was a are important if your company wishes to provide wide coverage nationally. particular strength of some of its competitors such as Hutchison Essar. Towers

•

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.

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

•

Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns

•

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, and also so that the business benefits are scalable - using its 'Matchbox' strategy

•

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 could underpin the company's long-term strategy. Aspire Today Inspire Tomorrow…

35

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 Inidan industrialist to invest in the new emerging African telecommunications market.

•

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.

(b) Airtel BCG Matrix

High

Market Growth

Low High

Market Share


Low

36

(c) Airtel Ansoff Matrix

To portray alternative corporate growth strategies, Igor Ansoff conceptualized a matrix that focused on the firm’s present and potential products and markets / customers. He called the four product-market strategic alternatives •

Market penetration [existing market + existing product],

•

Market development [existing product + new market],

•

Product development [existing market + new product], and

•

Diversification [New product + New market].

The company should follow all four strategies depending on the demand and product as indicated in the matrix. The company perhaps needs to focus more on the comparatively neglected area of diversification.


37

(d) Airtel Porter Structure

The earlier pattern used to be that the national telecom company used to own every segment of the value chain till the international gateway. With liberalization there was competition in virtually every segment. There are companies that provide local connectivity, those that function as long distance carriers, and those that provide only gateway links. Some integrated players operate in all segments. The intensity of competitive pressures across the chain is reflected in the downward spiral being witnessed in tariffs and prices to customer.


38

Customer Bargaining Power •

Lack of differentiation among Service Providers

•

Cut throat Competition

•

Low Switching Costs

•

Number Portability will have –Ve Impact

•

Businesses & Consumers

Suppliers Bargaining Power


39

Threat of New Entrants •

Huge License Fees to be paid upfront & High gestation period

•

Entry of MVNOs & WiMAX operators

•

Spectrum Availability & Regulatory Issues

•

Infrastructure Setup Cost - High

•

Rapidly changing technology

Threats from Subtitles •

Landline

•

CDMA

•

Video Conferencing Broadband

•

VOIP - Skype, Gtalk, Yahoo Messenger

•

e-Mail & Social Networking Websites


Service

40

12.Achievements (a) Graph

(b) Airtel Diary 2001 Airtel Date 03 Jan 2001 08 Mar 2001 11 Apr 2001 01 Oct 2001 07 Nov 2001 29 Nov 2001 17 Dec 2001 10 Sep 2001

Events Sunil Bharti Mittal Adjudged Among Top Entrepreneurs in Businessweek Worldwide Poll Bharti and SingTel establish Network i2i Limited Launches India's first private submarine cable company Bharti records top line growth of 67 per cent Bharti crosses 1 Million customer mark in mobile services Bharti unveils new brand 'TOUCHTEL’ Bharti Signs First NLDO Licence in India Bharti launches India's first private sector National Long Distance service Bharti announces plans to bring a world class mobile service to Punjab Aspire Today Inspire Tomorrow…

41

2002 Airtel 20 Dec 2002 03 Feb 2002 08 Feb 2002 17 Feb 2002 18 Feb 2002 27 Feb 2002 14 Mar 2002 10 Dec 2002

Sunil Bharti Mittal awarded the “Dataquest IT Man of the Year 2002” Bharti Tele-Ventures public offer receives excellent response Bharti launches Airtel in Punjab Bharti to list on BSE, NSE and DSE Bharti Tele-Ventures gets listed Norman Price joins Bharit Tele-Ventures as group Chief Technology OfficerMobility Leaders Bharti gets international long distance service licence Thursday Sunil Mittal is 'Businessman of the Year 2002'

2003 Airtel 02 Jan 2003 21 Jan 2003 27 Mar 2003 08 Apr 2003 29 Aug 2003 28 May 2003 22 May 2003 23 Feb 2004 29 Mar 2004 23 Apr 2004 20 May 2004 28 May 2004 20 Oct 2004 12 Oct 2004 04 Oct 2004 20 Sep 2004 10 Aug 2004 01 Jul 2004 20 May 2004 02 Nov 2004

GSM operators present its millions of customers a grand new year gift Mobile-to-mobile (M2M) incoming free on GSM cellular Airtel becomes India’s first mobile service to cross the three million customer mark Airtel felicitates 3,00,000th customer in Punjab, breaks all performance records Bharti makes it to the Hewitt top 25 Best Employers Bharti moves ahead in the creation of a single power brand Wednesday AirTel Magic launches pre-paid international roaming for all its customers AirTel Crosses The 6 Million Customer Mark Nationally Bharti Tele-Ventures joins the SEA-ME-WE-4 Submarine Cable Consortium Bharti Tele-Ventures crosses Rs. 5,000 crores revenues for the year - Earns net profit of over Rs. 600 crores for the year Airtel introduces in the country the first ever Talktime Transfer service for its Pre-paid customers in Delhi Sunil Bharti Mittal gets “the Frost & Sullivan CEO of the year” award Airtel adds another first becomes the first private sector mobile service to launch operations in J&K Airtel wins the “World Communications Best Brand Award” Airtel launches WI-FI service in Mumbai “Bharti Entrepreneur of the year” Award 2004 Announced Touchtel launches voice portal & music messaging service Bharti & Siemens join hands to build & manage AirTel networks in three circles Airtel’s brand ambassador Shah Rukh Khan lends confidence to those who are hearing impaired Sunil Bharti Mittal, Chairman & Managing Director, Bharti Enterprises, is the Ernst & Young Entrepreneur of the Year 2004. Paul J Ostling & NR Narayan Murthy award him the accolade.


42

2005 Airtel 18 Jan 2005 17 Jan 2005 07 Jul 2005 27 Jun 2005 05 Apr 2005 26 Apr 2005 18 Oct 2005

23 Sep 2005

Sunil Bharti Mittal Inducted To The Global GSM Association Board Airtel Becomes The First GSM Operator In The Country To Cross The 10 Million-Customer Milestone Nominations invited for the ‘Bharti Entrepreneur of the Year Award 2005’ Sachin & Shahrukh enthrall India – Airtel showdown culminates amidst unprecedented revelry & entertainment Airtel Launches India's First Stock & Portfolio Tracker On The Mobile Bharti Celebrates Its 23 Circle All India Footprint By Reducing Roaming Rates To RS.1.99 Bharti Donates Rs. 50 lakh to Prime Minister’s NATIONAL RELIEF FUND for the RELIEF & REHABILIATION of the Quake affected in Jammu & Kashmir Airtel launches the World’s First Audition on a Mobile phone for Indian Idol

2006 Airtel 22 Mar 2006 22 Mar 2006 17 Mar 2006 10 Feb 2006 30 Nov 2006 13 Nov 2006 31 Oct 2006 02 Oct 2006 29 Sep 2006 25 Apr 2006

Airtel Presents Indian Classical Music on your mobile Results of Postal Ballot for change of company name from Bharti TeleVentures Limited to Bharti Airtel Limited Airtel and Research In Motion launch the BlackBerry 8700g - the first EDGEenabled BlackBerry device in India Airtel Enterprise Services to Network the Income Tax Department Airtel partners with Google to offer search services on Airtel Mobile Bharti Airtel and Microsoft enter into a strategic partnership to offer Software and Services for Small and Medium Business (SMB) Market in India Bharti Airtel inks USD 400 million network expansion contract with Nokia Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE Bharti Airtel appoints Atul Bindal as Joint President of its Broadband & Telephone Airtel & Disney join hands to deliver a new entertainment experience


43

2007 Airtel 21 Mar 2007 15 Mar 2007 12 Feb 2007 12 Feb 2007 30 Jan 2007 03 Nov 2007 31 Oct 2007 01 Oct 2007 18 Sep 2007 09 Jun 2007

Airtel brings the Highly-Anticipated BlackBerry 8800 Smartphone to India Bharti Airtel to Observe Silent period from March 30, 2007 Global money transfer pilot project launched in India by Bharti and GSMA Bharti Airtel welcomes Vodafone’s acquisition of Hutch Essar Sunil B. Mittal chosen for this year’s Padma Bhushan Awards Airtel Presents Another Industry First – Introduces the ‘Super Lifetime Prepaid’ Bharti Airtel Limited Q2FY08 Airtel accelerates coverage crosses 2,90,000 towns and villages Bharti Airtel crosses the 50 million customer mark Bharti Airtel Signs USD 150 million Managed Network deal with Huawei Airtel revolutionizes Chatting on the Mobile, Launches Airtel Messenger.

2008 Airtel 26 Feb 2008 21 Feb 2008 13 Feb 2008 13 Feb 2008 07 Dec 2008 15 Oct 2008 13 Oct 2008 24 Sep 2008 06 Aug 2008 10 Jun 2008 22 May 2008 14 Apr 2008

Bharti Airtel participates in a consortium with international companies to build Unity Cable System linking Asia and US Sunil Bharti Mittal Conferred JRD Tata Corporate Leadership Award Sunil Bharti Mittal Awarded Global Telecom Sector’s Highest Honour Bharti Airtel crosses the 60 million customer mark Bharti Airtel wins ‘Best Content Service’ and ‘Best Project Management’ at the World Communication Awards 2008 Airtel launches next-gen interactivity on its DTH service Airtel adds to the joy of festive season – launches digital TV Airtel Partners with SingTel to Offer Free Incoming Calls while on International Roaming in Singapore Bharti Airtel to Bring iPhone 3G to India on August 22 Bharti Airtel and Apple to Bring iPhone 3G to India Airtel Introduces HTC Touch Diamond Sunil Bharti Mittal Inducted into the prestigious ITU Telecom Board

2009 Airtel 31 Mar 2009 15 Feb 2009 19 Jan 2009 15 May 2009 08 May 2009 06 Apr 2009

Bharti Airtel and Australia Japan Cable collaborate to create a new connectivity solution to Australia from Singapore and the US Bharti Airtel launches world’s first Windows-based Online Desktop on Airtel broadband– powered by Microsoft and Nivio Bharti Airtel launches Triple Play with Airtel digital TV interactive –Telephone, Broadband and now TV on a single line Bharti Airtel crosses 100 million customers mark Bharti Airtel joins hands with Manchester United for a five year exclusive agreement Airtel pioneers 16 Mbps Broadband in India Aspire Today Inspire Tomorrow…

44

13.Government Policies The Government of India (Government) recognizes that provision of 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 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.

Access Providers Cellular Mobile Service Providers It is proposed to review the spectrum utilization from time to time keeping in view the emerging scenario of spectrum availability, optimal use of spectrum, requirements of market, competition and other interest of public. The entry of more operators in a service area shall be based on the recommendation of the TRAI who will review this as required as and no later than every two years.

Fixed Service Providers The FSP licencees would be required to pay a onetime entry fee. All FSP licencees shall pay licence fee in the form of a revenue share. It is proposed that the appropriate level of entry fee and percentage of revenue share and basis for selection of new operators for different service areas of operation would be recommended by TRAI in a time-bound manner, keeping in view the objectives of the New Telecom Policy.

Internet Telephony Internet telephony shall not be permitted at this stage. However, Government will continue to monitor the technological innovations and their impact on national development and review this issue at an appropriate time. Aspire Today Inspire Tomorrow…

45

Other Service Providers For applications like tele-banking, tele-medicine, tele-education, tele-trading, e-commerce, other service providers will be allowed to operate by using infrastructure provided by various access providers. No licence fee will be charged but registration for specific services being offered will be required. These service providers will not infringe on the jurisdiction of other access providers and they will not provide switched telephony.

Global Mobile Personal Communication Services The Government has opened up the GMPCS market in India and has issued a provisional licence. The terms of the final licence would need to be finalised in consultation with TRAI by June 30, 1999. All the calls originating or terminating in India shall pass through VSNL gateway or in case of bypass, it should be possible to monitor these calls in the Indian gateways. VSNL is also to be compensated in case gateway is bypassed.


46

Survey Analysis DATA ANALYSIS

Q1a. Are you using Radio Frequency? (Purpose: This is a basic question to know the base of the company about the internet use) Statistics N

Valid

60

Missing

0

Cumulative Frequency Percent Valid Percent Percent Valid Yes

47

78.3

78.3

78.3

No

13

21.7

21.7

100.0

Total

60

100.0

100.0

(Finding: Although I had to visit to the big company and large percent of them said that they use the radio frequency because it make their work easy and faster)


47

Q1b. If yes then of which company? (Purpose: This is just to go little deeper from the first question and to know about the experienced brand) N

Valid Missing

60 0

Frequency Valid

Percent

Valid Percent

Cumulative Percent

A-Link

1

1.7

1.7

1.7

Aditya Tek

1

1.7

1.7

3.3

Aircel

2

3.3

3.3

6.7

Airtel

8

13.3

13.3

20.0

BSNL

6

10.0

10.0

30.0

Car Net

1

1.7

1.7

31.7

CJ Online

8

13.3

13.3

45.0

Max Set

1

1.7

1.7

46.7

13

21.7

21.7

68.3

Nano Station

1

1.7

1.7

70.0

Om Sai Ganesh

1

1.7

1.7

71.7

Primics

1

1.7

1.7

73.3

Relaince

1

1.7

1.7

75.0

Reliance

5

8.3

8.3

83.3

Sify

1

1.7

1.7

85.0

Spectranet

2

3.3

3.3

88.3

Tata

2

3.3

3.3

91.7

Tata Indicom

1

1.7

1.7

93.3

Tomer Computers

1

1.7

1.7

95.0

Tulip

2

3.3

3.3

98.3

World Fone

1

1.7

1.7

100.0

60

100.0

100.0

NA

Total


48

(Finding: There are 21 brands in Noida for internet based services and still Airtel is a market leader and its nearest competitors are BSNL, CJ Online and Reliance. Still small company believes in DSL they are not awear about the LL)


49

Q2. Number of P.C. you are using? (Purpose: Information about the No. of PC is also important it helps to know about the background of the company)

Statistics N

Valid Missing

60 0

Frequency Percent Valid 1-20

Valid Percent

Cumulative Percent

6

10.0

10.0

10.0

21-40

9

15.0

15.0

25.0

41-60

8

13.3

13.3

38.3

More then 60

37

61.7

61.7

100.0

Total

60

100.0

100.0

(Finding: This information has been collected by the IT department or Internet concerned person in the company and we found that large percentage of the company agreed that the know about ILL) Aspire Today Inspire Tomorrow…

50

Q3. Are you aware of Internet Lease Line? (Purpose: This question let us know that is there any awareness about the ILL in the market)

N

Valid

60

Missing

0

Frequency Valid

Percent

Valid Percent

Cumulative Percent

Yes

44

73.3

73.3

73.3

No

16

26.7

26.7

100.0

Total

60

100.0

100.0

(Finding: This information has been collected by the IT department or Internet concerned person in the company and we found that large percentage of the company agreed that the know about ILL)


51

Q4. Name of the internet service provider for your organization? (Purpose: We asked this question to know in case of internet service companies believe)

Statistics N

Valid Missing

60 0

Frequency Percent Valid Airtel

Valid Percent

Cumulative Percent

13

21.7

21.7

21.7

2

3.3

3.3

25.0

Reliance

10

16.7

16.7

41.7

Any Other

32

53.3

53.3

95.0

3

5.0

5.0

100.0

60

100.0

100.0

Tata Indicom

More Then 1 Total

(Finding: In case of Internet also we come to know that hear also Airtel has good control over market. Other brands are also having their part in the market)


52

Q5. How long you are using Internet service?

&

Q6. Which type of connection you are using for internet? (Purpose: It is also important to know technical knowledge about the company for this the question was needed) Case Processing Summary Cases Valid N How long you are using Internet service? * Which type of connection you are using for internet?

Missing

Percent

60

N

100.0%

Total

Percent

0

N

.0%

Percent

60

100.0%

How long you are using Internet service? * Which type of connection you are using for internet? Cross tabulation Which type of connection you are using for internet? Internet Lease Line Any Other

DSL How long 0 To 6 Months you are using Internet 6 Months to 1 service? Year

Count % of Total Count % of Total

1 Year to 2 Years Count % of Total More than 2 Years Total

Count % of Total Count

More then one connection

Total

1

2

0

0

3

1.7%

3.3%

.0%

.0%

5.0%

9

11

1

0

21

15.0%

18.3%

1.7%

2

6

0

3.3%

10.0%

.0%

9

11

4

15.0%

18.3%

6.7%

21

30

5


.0% 35.0% 1

9

1.7% 15.0% 3

27

5.0% 45.0% 4

53

60

How long you are using Internet service? * Which type of connection you are using for internet? Cross tabulation Which type of connection you are using for internet? Internet Lease Line Any Other

DSL How long 0 To 6 Months you are using Internet 6 Months to 1 service? Year


1 Year to 2 Years Count % of Total More than 2 Years Total


More then one connection

Total

1

2

0

0

3

1.7%

3.3%

.0%

.0%

5.0%

9

11

1

0

21

15.0%

18.3%

1.7%

2

6

0

3.3%

10.0%

.0%

9

11

4

15.0%

18.3%

6.7%

21

30

5

35.0%

50.0%

8.3%


.0% 35.0% 1

9

1.7% 15.0% 3

27

5.0% 45.0% 4

60

6.7% 100.0%

54

(Finding: We found that ILL is more in demand and also in use in comparison to DSL and maximum companies are using these services for more than 2 years. Although Airtel entered very late in the product but due to its client value and brand name they have a good market share)


55

Q7. What is the speed of your connection? (Purpose: This is a technical information that helps to know what is the requirement of the company for their business) Statistics N

Valid

60

Missing

0

Frequency Valid

Percent

Valid Percent

Cumulative Percent

10 Mbps

2

3.3

3.3

3.3

128 Kbps

2

3.3

3.3

6.7

1Mbps

14

23.3

23.3

30.0

2 Mbps

17

28.3

28.3

58.3

256 Kbps

1

1.7

1.7

60.0

3 Mbps

2

3.3

3.3

63.3

4 Mbps

5

8.3

8.3

71.7

5 Mbps

2

3.3

3.3

75.0

14

23.3

23.3

98.3

1

1.7

1.7

100.0

60

100.0

100.0

512 Kbps 6 Mbps Total


56

Q8. Rate the following option for your Internet connection? (Purpose: On different parameters we wanted to know the experience of the companies with their brand) A)

Reliability: Statistics

Reliability of Internet. N

Valid Missing

60 0

Frequency Percent Valid Excellent

Valid Percent

Cumulative Percent

8

13.3

13.3

13.3

Very Good

27

45.0

45.0

58.3

Good

16

26.7

26.7

85.0

Fair

9

15.0

15.0

100.0

Total

60

100.0

100.0


57

B) Speed Statistics N

Valid Missing

60 0

Frequency Percent Valid Excellent

Valid Percent

Cumulative Percent

12

20.0

20.0

20.0

Very Good

14

23.3

23.3

43.3

Good

23

38.3

38.3

81.7

Fair

11

18.3

18.3

100.0

Total

60

100.0

100.0


58

Q9. Define your bandwidth usage? (Purpose: This is also a technical question through this we wanted to know that with internet what they do most) Statistics N

Valid Missing

60 0

Frequency Percent Valid More of Downloading More of Uploading Both Any other Purpose Total

Valid Percent

Cumulative Percent

8

13.3

13.3

13.3

3

5.0

5.0

18.3

41

68.3

68.3

86.7

8

13.3

13.3

100.0

60

100.0

100.0


59

Q10. A) Number of Static IP you required? & Q10.B) How much do you pay for Static I.P.? (Purpose: We wanted to know about their static IP and there requirement and the competitors offered price) Case Processing Summary Cases Valid N Number of Static IP you Required? * How much do you pay for Static I.P.?

Missing

Percent

60

N

100.0%

Total

Percent

0

N

.0%

Percent

60

100.0%

Number of Static IP you Required? * How much do you pay for Static I.P.? Crosstabulation How much do you pay for Static I.P.? Free

Rs. 1200 Rs. 250

Rs. 2500

Rs. 400

Total

Number of Static IP you 0 To 2 Required? 3 To 5

16

2

1

1

0

20

16

0

0

2

0

18

6 To 8

9

0

0

0

1

10

12

0

0

0

0

12

53

2

1

3

1

60

More Then 8 Total


60

Q11. What is the monthly expenditure on Internet? (Purpose: Through this question we wanted to know what ore the offering of the competitor for the same services) Statistics Valid N

Missing

60 0 What is the monthly expenditure on Internet? Frequency

Valid

Percent

Valid Percent

Cumulative Percent

Rs. 11000

1

1.7

1.7

1.7

Rs. 11250

1

1.7

1.7

3.3

Rs. 11500

1

1.7

1.7

5.0

Rs. 1300

1

1.7

1.7

6.7

Rs. 17000

1

1.7

1.7

8.3

Rs. 18000

1

1.7

1.7

10.0

Rs. 2000

1

1.7

1.7

11.7

Rs. 20000

3

5.0

5.0

16.7

Rs. 21000

1

1.7

1.7

18.3

Rs. 3000

2

3.3

3.3

21.7

Rs. 34000

1

1.7

1.7

23.3

Rs. 35000

3

5.0

5.0

28.3

Rs. 36000

2

3.3

3.3

31.7

Rs. 4000

1

1.7

1.7

33.3

Rs. 40000

1

1.7

1.7

35.0

Rs. 41700

1

1.7

1.7

36.7

Rs. 42000

2

3.3

3.3

40.0

Rs. 44000

2

3.3

3.3

43.3

Rs. 4500

1

1.7

1.7

45.0

Rs. 50000

4

6.7

6.7

51.7


61

Rs. 5500

1

1.7

1.7

53.3

Rs. 59000

1

1.7

1.7

55.0

Rs. 6000

3

5.0

5.0

60.0

Rs. 60000

1

1.7

1.7

61.7

Rs. 750

2

3.3

3.3

65.0

Rs. 85000

3

5.0

5.0

70.0

Rs.10000

2

3.3

3.3

73.3

Rs.12500

1

1.7

1.7

75.0

Rs.125000

2

3.3

3.3

78.3

Rs.5000

1

1.7

1.7

80.0

Rs.7000

2

3.3

3.3

83.3

Rs.8000

10

16.7

16.7

100.0

Total

60

100.0

100.0


62

Q12. Do you need stable Internet connectivity, low latency and high speed? (Purpose: This question is to know the expectation of the companies about the latency and the speed)

Statistics N

Valid

60

Missing

0

Frequency Percent Valid Yes No Total

Valid Percent

Cumulative Percent

59

98.3

98.3

98.3

1

1.7

1.7

100.0

60

100.0

100.0


63

Q13. Do you wish to go for Internet Lease Line? (Purpose: We wanted to know about the future prospects about the ILL in the market)

Statistics N

Valid

60

Missing

0

Frequency Percent Valid Yes

Valid Percent

Cumulative Percent

39

65.0

65.0

65.0

No

21

35.0

35.0

100.0

Total

60

100.0

100.0

(Findings: High percentage of the companies are looking for ILL in the future this gives a big market scope in the future in the market)


64

Q14. Do you need more information on Lease Line Product? (Purpose: We wanted to making aware ILL provided by Airtel for which the permission question was required ) Statistics N

Valid

60

Missing

0

Frequency Percent Valid Yes

Valid Percent

Cumulative Percent

40

66.7

66.7

66.7

No

20

33.3

33.3

100.0

Total

60

100.0

100.0

(Finding: On the basis of this we found that a large percent of people are expecting to know about the Leased Line, which shows that still the market is not aware about this type of product. They are struggling with the DSL plans at high cost)


65

Q15. Rate the factor influencing your buying decision of an Internet Connection? (Purpose: We asked the customers about their preference while going for the ILL or Internet services) A) Price Statistics Price of Internet connection? N

Valid Missing

60 0 Price of Internet connection? Frequency Percent

Valid Minimum

Valid Percent

Cumulative Percent

3

5.0

5.0

5.0

Above Min.

12

20.0

20.0

25.0

Average

25

41.7

41.7

66.7

Less Then Max.

10

16.7

16.7

83.3

Maximum

10

16.7

16.7

100.0

Total

60

100.0

100.0


66

B) Speed of Internet connection? Statistics N

Valid

60

Missing

0

Range

4

Frequency Percent Valid Minimum

Valid Percent

Cumulative Percent

5

8.3

8.3

8.3

Above Min.

5

8.3

8.3

16.7

Average

6

10.0

10.0

26.7

Less Then Max.

21

35.0

35.0

61.7

Maximum

23

38.3

38.3

100.0

Total

60

100.0

100.0


67

C) Connectivity of Internet connection? Statistics N

Valid Missing

60 0


Valid Percent

Cumulative Percent

7

11.7

11.7

11.7

Above Min.

11

18.3

18.3

30.0

Average

12

20.0

20.0

50.0

Less Then Max.

14

23.3

23.3

73.3

Maximum

16

26.7

26.7

100.0

Total

60

100.0

100.0


68

D) Service Provider of Internet connection? Statistics N

Valid Missing

60 0 Frequency Percent

Valid Minimum

Valid Percent

Cumulative Percent

17

28.3

28.3

28.3

Above Min.

11

18.3

18.3

46.7

Average

11

18.3

18.3

65.0

Less Then Max.

14

23.3

23.3

88.3

Maximum

7

11.7

11.7

100.0

60

100.0

100.0

Total


69

E) After sales service of Internet connection? Statistics N

Valid Missing

60 0


Valid Percent

Cumulative Percent

15

25.0

25.0

25.0

12

20.0

20.0

45.0

3

5.0

5.0

50.0

Less Then Max.

10

16.7

16.7

66.7

Maximum

20

33.3

33.3

100.0

Total

60

100.0

100.0

Above Min. Average


70

Findings •

There is a large market in Greater Noida, Noida and Gaziyabad where the radio frequency is used so Airtel have a good market scope.

•

In Greater Noida, Noida and Gaziyabad there are twenty Leased Line Service provider in which Reliance, C J Online and BSNL have good market control but still Airtel is a market leader.

•

Large percentage of the market is aware about the Leased Line but there approximately 30% of the market is still not aware about the service.

•

Among the 20 service provider Airtel has good market hold among their nearest competitor Like Tata Indicom, Reliance, BSNL etc.

•

In the SME segment of Airtel majority of company uses the service for more than two years in which most of them use the Leased Line service but still large number of the market is using the DSL plan.

•

Big Companies in SME segment of the Airtel generally prefer 1 Mbps and 2 Mbps in the same way small companies in that segment prefer 512 Kbps in majority.

•

The survey showed that the satisfaction level of the company which are using the Leased Line for their business purpose on different parameter like Reliability on their current service. Most of them are satisfied with their service and rated as very good and for speed its good.

•

In the Internet Service the important thing is Uploading and downloading of the data and the analysis shows that both the uploading and downloading is used by the most of the company in the market.

•

In the SME segment of the Airtel the majority of market use to spend more then 8000 per month for their internet requirement and for Leased Line according to Airtel plan if your expenses is going above 8000 then Leased Line is best.

•

Still the companies are looking for better service provider and eager to know about the Airtel offering for the Leased Line.


71

Some other Findings (Analysis) •

There are many local players for the product like C J Online and other who believes in setting with the management members which also include bride.

•

There are some small service providers who take the connection from Airtel and gives it to their customer through cable wire. Through this the Airtel customer is also a its competitor.

•

In the company corporate department and SME department interference were disturbing elements for the both regarding the client.

•

Price of the product was to be quoted very high and after that the use to negotiate on that that harms the image and value of the company.

•

Clients use to take the price quotation and on the basis of that they talk or negotiate with other service provider’s price.

•

Other service provider come to know that the client already have the Airtel proposalcum-quotation automatically the reduce the price of their product.

•

Some of the area’s Airtel do not have their wiring (out of rang) like Greater Noida phase II & III where there is a huge market scope.

•

If the area is not wired the company use to provide service through radio frequency waves but this costs both company and client.

•

The SME Department tries to get the client from different sources like PRI clients, high bills payer in DSL, those clients who are facing problems in their broadband connection and having bills payers (more than 10,000 Rs. Per Month) etc.

•

Proposal is made for the client on the basis of certain criteria of requirement like, nature of business or use, billing of last service sage or substitute service, if the client is fresher than his capability and requirement.

•

The department has full right to do their work in their own way and there is no interference of top level management except to meet the target.


72

Suggestion and Recommendation From Survey •

Approximately 80% of the market is using the radio frequency that means the market for Leased line is wider and company should present the product to all type of SME companies which are internet based company.

•

CJ Online and Spectranet are destroying the market of Airtel through giving better price in a specific area like CJ online in Greater Noida, Spectranet in Noida etc. Company should try to close the deal in the first one or two calls.

•

The majority of company is using large number of computers so they might require a high speed process. So company should also present the suggested speed with the required speed of the client.

•

Still 30% of the SME clients don’t know about the Leased Line, at this place company has better option to show all the positive aspect of the service at their less expense.

•

Most preferable speed among the SME clients are 2 Mbps, 1Mbps and 512Kbps so there is more prospect for the company to provide them better speed against what they are using.

•

60% of the SME clients are seems to be satisfied with their current service but still Airtel has chance between the 40% of them can be converted towards the companies service by improving reliability and speed (fluctuation).

•

All the SME clients where the prospects is for the company like those who are not aware about the Leased Line, those who are not satisfied with their current service provider, those who are spending big amount on the DSL internet or those who are interested to know about the Airtel Leased line etc. a proposal is to be send by the company containing information about the product and initial price coated. Aspire Today Inspire Tomorrow…

73

For Product •

There should be a standard and unnegotiable price for the products so sales executive can take decision on the sail of the product.

•

Within Noida many area is unwired, because of that interested customer are not able to access Airtel services. (GNIT)*

•

The installation process should be taken seriously after the payment and other formalities. It put wrong impression on the customers against their interest. (B4X)*

•

There should be some easy process for the demonstration of the product this will help the customer to know there actual requirement. (JPC)*

•

The management should think about the OTC as per the proposal because other company has the better OTC option in comparison to us.

•

The technical support should be supportive with these executive for any quarry regarding the products, this will help them to clear the doubt of their Clients.

(*These were the causes of the given company where the problem has been seen) For Executive •

There should be a proper discussion in the group before going to the call. This will help them to collect more information about the client.

Conclusion According to the above analysis Airtel has a good control over the market for its data product in SME segment. If we divide the markets there are few area in Noida that have a great market scope in future like Knowledge Park, Sector 63, Gaziabad etc. Noida is an Industrial area and the product that Airtel is providing is very useful for the company. From our survey there can be many prospects for sail purpose. Majority of market is aware of the leased line but still they were interested to know about the Airtel product.


74

Bibliography I have successfully completed the project assigned to me and also prepared the report on the the basis of the completed. These people helped in the preparation of the report My Seniors Mr. Avinash Chodhary Sales Manager Bharti Airtel Ltd, Noida Mr. Ahmed M Ansari Executive Bharti Airtel Ltd., Noida

Mr. Vivek Raj Senior Officer Bharti Airtel, Ltd. Mr. Umesh Pandey Senior Officer Bharti Airtel Ltd., Noida Airtel site was a place from where I come to know the basic of the company and this site also helped me to know and express about the company in effective manner. Google was a great support for me to know about the competitors profile, their products and their strategy to stay in the market. SPSS Software Helped me to organize the data collected and analyzed. This software made the data to communicate very impressively in the form of tables and charts. M S Excel This program helped me to collect all the data in a particular manner and record in the performed manner it also helped within the operation of SPSS analysis. Phlip Kotler The Principal of Marketing was the book to clear my basics about the marketing and to give this report more value. The concepts cleared my point of view towards the companies marketing process. SPIN Selling The book by Neal Rechaim for large account sale which tells me how to deal with the high revenue clients to have information from them for the research. Aspire Today Inspire Tomorrow…

75

Appendix Sample of Questionnaire Name: ……………………………………………………………………………………... Designation: ………………………………………………………………………………. Mob. ………………………….. E-mail I.D. …………………………………………… Address: ……………………………………………………………………………………

Name of the Organization: ………………………………………………………………. Address: …………………………………………………………………………………… Ph: …………………………………………….

Q1. (I) Are you using Radio Frequency?

a) Yes. b) No. (II) If yes, then of which company? ………………………………………………

Q2. Number of P.C. you are using?

a) b) c) d)

1-20 21-40 41-60 More then 60

Q3. Are you aware of Internet Lease Line (ILL)? a) Yes. b) No


76

Q4. Name of the internet service provider for your organization? a) b) c) d)

Airtel. Tata Indicom. Reliance. Any other: ……………………………….

Q5. How long you are using Internet service? a) b) c) d)

0 to 6 months. 6 months to 1 year. 1 year to 2 year. More then 2 years.

Q6. Which Type of connection you are using for Internet? a) DSL b) Internet Lease Line c) Any other ……………………………….. Q7. What is the speed of your connection? …………………………………………… Q8. Rate the following option for your internet connection? Excellent

Very Good

Good

Fair

Poor

Reliability Speed Busy Signals Disconnects

Q9. Define your bandwidth usage? a) b) c) d)

More of downloading. More of uploading. Both Any other purpose


77

Q10. (I) Number of Static IP you required? a) 0-2 b) 3-5 c) 6-8 d) More then 8.

(II) How much do you pay for Static IP? ………………………………………………………………………… Q11. What is the monthly expenditure on internet? …………………………………………………………………………….. Q12. Do you need stable Internet connectivity, low latency and high speed? a) Yes. b) No.

Q13. Do you wish to go for Internet Lease Line? a) Yes. b) No. Q14. Do you need more information on Lease Line Products? a) Yes. b) No.

Q15. Rate the factors influencing your buying decision of an Internet Lease Line? 1

2

3

4

5

Price Speed Connectivity Service Provider After Sales Service


78

Summer Project Report on Airtel

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