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    A Project ReportA Project Report



    In Partial Fulfillment Of the degree of Bachelor of Business Administration


    Sumitted to Sumitted to Submitted By Submitted By Mrs. Munija Mrs. Munija Opin Kumar Bhati Opin Kumar Bhati Faculty Guide (BBA)Faculty Guide (BBA) Roll No.Roll No.GIIT, Greater NoidaGIIT, Greater Noida Batch (2006-2009) Batch (2006-2009)

    B.B.A IV Semester B.B.A IV Semester

    Global Institute Of Information TechnologyGlobal Institute Of Information TechnologyGreater NoidaGreater Noida


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    I wish to express my deep gratitude to all those whose help whose

    help and cooperation has enabled me to complete this project.

    I am Highly grateful to Mrs. MUNIJA who has continuously guided

    me on such a challenging Project of Impact of Competitors and

    New technologies on Airtel . I am also grateful to Mr. RohitSingh Callaso ,Asst Manager Airtel, who has given his precious

    time for me and helped me in my work by providing me with

    various information about cellular Industry.

    With profound respect, I express my sincere thanks to Mrs. Malini

    (BBA course coordinator) and Mr. Vinod Kumar (Director) of

    Global Instiute of Information Technology, Greater Noida for theirconstant encouragement.



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    Executive Summary

    In this project Airtel studied relative to its competitors. It has also

    been found that what are the relative strengths and weaknesses of

    Airtel vis--vis its competitors. Demographics of the cellular user is

    also found.

    In the second part of the project, WLL Technology is studied. And

    also consumer willingness to shift to WLL Technology from GSM Technology is found. Advantages & disadvantages of GSM with

    respect to WLL is also found in the Project.

    After completion of this project I found that in spite of the fact

    Airtel the market leader in the GSM Technology but still it lagged

    behind Idea and Hutch as far as customer service and availability

    is concerned. Maximum number of mobile users are in the age

    group of 20-28. Which are mostly students and young executives.

    Maximum number of people are using prepaid cards.

    WLL is a new technology so people are curious about it. But as far

    as switching from GSM to WLL is concerned they are adopting the

    policy of wait and watch. People are aware more about reliance

    than Tata.

    After WLL services would actually become popular then a further

    study can be conducted for customer service satisfaction of WLL

    users and then a comparative study of GSM and WLL could be



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    Chapter 1 : Introduction1.1 Indian Cellular Market1.2 Development in the Cellular Industry1.3 Future Trends and Development1.4 Regulatory Issues

    Chapter 2: Objective and Research Methodology

    2.1 Objective2.2 Research Methodology2.3 Limitations of the Project

    Chapter 3: Company Profile3.1 Bhartis vision3.2 Business3.3 Competitive Trends3.4 Brand Architecture

    Chapter 4: Finding and AnalysisDiagrammatic Representation of Findings

    Chapter 5: Analysis of Competitors5.1 Hutchison group5.2 Idea5.3 BPL

    Chapter 6: Threat of WLL to Airtels Business6.1 Concept of WLL6.2 WLL Market Overview6.3 Current Scenario in India

    Chapter 7: Conclusion and Recommendation




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    Chapter 1



    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 achievingthese 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. Thecircles 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


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    formulation, licensing and telecom operations. Prior to the creation

    of TRAI, these functions were the sole responsibility of the DOT.

    High license fees and excessive bids for the cellular licenses put

    tremendous financial burden on the operators, diverting funds

    away from network development and enhancements. As a result,

    by 1999 many operators failed to pay their license fees and were

    in danger of having their licenses withdrawn. In March 1999, a new

    telecom policy was put in place (New Telecom Policy [NTP] 1999).Under this new policy, the old fixed-licensing regime was to be

    replaced by a revenue-sharing scheme whereby between 8-12

    percent of cellular revenue were to be paid to the government.



    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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    High license fees

    Migration to revenue sharing mode in 1999 mitigates high initial

    fund requirements for payment of license fees.

    Inadequately funded businesses / weak and fragmented promoters

    Businesses that have since been adequately funded growing at

    over 60% per annum, while businesses with weak promoters

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

    major groups emerging in the last one/two years.

    Regulatory authority not in place

    Telecom Regulatory Authority of India (TRAI) firmly in place, and its

    role being accepted by all operators; Deptt of Telecommunications

    (DOT) restructured, with operations and policy making roles vested

    in different bodies.

    Issues relating to unfavorable interconnect terms for private

    operators, pass through income, intra circle long distance,spectrum availability and allocation and the like remained

    unresolved for long periods.

    Interconnect terms since rationalized, risks on pass through

    income to DOT / MTNL (Mahanagar Telecom Nigam Ltd.) resolved

    to the satisfaction of all parties with changes in methodology /

    revenue sharing, intra circle long distance allowed, spectrum


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    availability cleared with vacation of frequencies for usage by GSM


    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 FinancialInstitutions.

    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


    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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    The interconnection regime between cellular operators and fixed-

    line operators is still biased against the former.

    Despite the recent gains of the cellular industry, not everything is

    rosy. The cellular penetration rate is still very low at 0.8 percent in

    a nation of over one billion people.

    In recent years, many foreign companies had pulled out from theircellular joint ventures in India due to the difficult operating

    environment and bureaucracy. In 1999 alone, Swisscom pulled out

    from Sterling Cellular, Telstra from Modi Telstra and both the

    Telecom Organization of Thailand and Jasmine International from JT

    Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin

    Telecom, and both Shinawatra of Thailand and Bezeq exited from

    Fascel. In June 2001, British Telecom exited from Bharti Cellular.

    Bell South International has also indicated its intention to pull out

    from Skycell Communications, and Hong Kong-based Distacom is

    seeking to sell its stake in Spice Communications. First Pacific's

    (based in Hong Kong) continued commitment to Escotel is

    uncertain, and the former is reviewing various options.

    The string of sell-outs notwithstanding, there has been a merger

    and acquisition wave sweeping across the Indian cellular industry

    in recent years. Hong Kong-based Hutchison Whampoa, via

    Hutchison Telecommunications (HK), acquired major stakes in

    Sterling Cellular (December 1999), Usha Martin Telecom (mid-

    2000) and Fascel (September 2000). Through a partnership with

    local company, Kotak Mahindra Finance, Hutchison Whampoa


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    practically controls Fascel and Usha Martin Telecom, thus

    circumventing the 49 percent limit on foreign ownership in Indian

    cellular operators. Hutchison Whampoa is also the controlling

    shareholder of Hutchison Max Telecom. Not to be outdone, Bharti

    Enterprises another major cellular player acquired control of

    JT Telecom, which was later renamed Bharti Mobile (December

    1999), and Skycell Communications renamed Bharti Mobinet

    (August 2000). Bharti also acquired the Punjab license of Essar and

    started operations, giving competition to the lone operator there,

    Spice Communications. Going forward, Bharti is likely to merge all

    its cellular companies into one entity.

    Five companies together bid Rs16.3 billion to bag the licenses for

    the fourth operator slots in four metros and 13 circles. Bharti

    emerged as the No. 1 bidder with eight new licenses, followed by

    Escotel with four, Hutchison with three, and Reliance and Idea

    cellular with one each. Bharti and Hutchison have already

    commenced operations in all the circles while Idea is set to launch

    in Delhi. Escotel and Reliance have not made any headway.

    MTNL, the third cellular operator for Delhi and Mumbai, started

    services in March 2001. BSNL, as the third nationwide cellularoperator, launched services in Kolkatta and Bihar in January 2002.

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

    was scheduled for 2 October 2002. However, this has been

    postponed until after mid October. Once BSNL rolls out its service,

    most telecom circles will have four cellular operators. There will be

    tremendous competitive pressure, which will result in lower tariffs.


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    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, nettingRs8.3 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 throughhigh-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.


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    Customer-focused activities are gaining traction among cellular

    operators with the establishment of longstanding consumer benefit

    programs. Orange in Mumbai offers "Orange Holidays" and

    "Orange Monsoon Offers" at very attractive rates and added

    benefits like discounts on airfare, food and beverages, among

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

    music shops.

    Enterprise mobile applications promising revenue stream

    All along, customer acquisition and the top line have been the

    focus. Few operators have concentrated on offering differentiated

    services for businesses. However, as operators realize that offering

    basic voice and Short Message Service (SMS) will get them the

    numbers but not the margins, some are now seriously looking at

    the enterprise segment for provisioning superior services.

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

    like unified messaging and instant alerts are being offered.

    A variety of mobile applications are finding takers among the

    enterprise segment. Bharti is in the process of introducing a facility

    to fleet management companies so that they can improve theefficiency 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


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    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.


    There will be more competition, forcing operators to constantly

    focus on differentiations to maintain their lead.

    The implementation of enhanced networks like 2.5G will

    enable operators to offer data services. This is an

    opportunity to customize and differentiate better.

    The entry of state-run operators like BSNL and MTNL means

    that prices will no longer be controlled, thus there is less

    chance of a cartel being formed.

    Network coverage in terms of geographic spread and quality

    of coverage is crucial especially for the business subscriber.

    The bigger the service provider's national presence, the

    better it is for businesses. On the roaming front, signing up

    with a national operator is advantageous.


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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.


    The operations of this sector are determined as under the Indian

    Telegraph Act of 1885. A document buried in the sands of time.

    The next major policy document, which was produced, was the

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

    process of liberalization.

    Year Event

    1851 First telephones in India

    1943 Nationalization of telephone companies

    1985 DoT was created

    1986 Creation of MTNL and VSNL

    1991 Telecom equipment liberalized

    1994 Licenses for paging

    1994 Telecom policy announced

    September 1994 Guidelines for private sector participation inbasic services

    November 1994 Cellular licenses issued for metros

    December 1994 Tenders for cellular licenses in 19 cities apart

    from 4 metros


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    January 1995 Tenders for 2nd operator in basic services apartfrom DoT on circle basis.

    August 1995 VSNL launches Internet services

    January 1996 TRAI formed

    November 1998 Internet policy announced

    The National Telecom Policy of 1994 document, which laid out

    broad policy guidelines rather than a series of action points. Like

    other policies, it sought to achieve the impossible in finite time like

    improve quality of service and its availability, wide coverage (a

    phone in every village), at reasonable rates, etc. The targets in

    quantifiable terms were installation of 9.5mn additional lines,

    telephone on demand by 1997, and a PCO pop of 500. The Eighth

    Plan had also allowed private operators in value added services. To

    facilitate licensing, the nation was divided into 20 circles (akin to astate) 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/

    MTNL for basic and two operators for cellular. DoT/ MTNL 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


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    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-addedservices (including cellular services) were thrown open to private

    sector participation in 1992. Basic services were opened to private

    participation in 1994 by dividing the country into 21 telecom

    Circles and allowing one private operator per Circle to compete

    with DoT. An independent telecom regulatory Authority of India

    was set up in 1997. A new Policy for Internet Service Policy

    Providers (ISPs) was announced in 1998 allowing independent

    service providers to enter the sector ending the earlier monopoly

    of VSNL. Reorganization of DoT, separating policy making function

    and service provision and corporatization of DoT's operational

    network are two major institutional reforms, which need to be



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    Chapter 2


    2.1 Objectives

    (i) To compare Airtel with already existing players in GSM in

    particular IDEA AND HUTCH

    (ii) To study the Demographics of cellular subscriber.

    (iii) To find the awareness of CDMA/ WLL Technology in Delhi &

    NCR Region

    (iv) To find the willingness of GSM users to swtich to WLL

    (v) To study the threat of WLL in particular to Airtels business.

    2.2 Research Methodology

    Achieving accuracy in any research requires in depth study

    regarding the subject. As the prime objective of the project is to

    compare Airtel with the existing competitors in the market and

    the impact of WLL on Airtel, the research methodology adopted

    is basically based on primary data via which the most recent

    and accurate piece of first hand information could be collected.

    Secondary data has been used to support primary data

    wherever needed.


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    Primary data was collected using the following techniques

    Questionnaire Method

    Direct Interview Method and

    Observation Method

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

    interview method, where a face to face formal interview was taken.

    Lastly observation method has been continuous with the

    questionnaire method, as one continuously observes the

    surrounding environment he works in.

    Procedure of research methodology

    # To conduct this research the target population was the mobile

    users, Who are using GSM technology.

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

    # To these 100 people a questionnaire was given, the

    questionnaire was a combination of both open ended and closed

    ended questions.

    # The date during which questionnaires were filled was between

    10th Feb. 2003 to 20th Feb. 2003.

    # Some dealers were also interviewed to know their prospective.

    Interviews with the managers of GSM service providers were also



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    # Finally the collected data and information was analysed and

    compiled to arrive at the conclusion and recommendations given.

    Sources of secondary data

    Used to obtain information on, Bhartis history, current issues,

    policies, procedures etc, wherever required.

    # Internet

    # Magazines

    # Newspapers

    # Journals

    # Bharti Circulars

    # Bharti News Letters


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    2.3 Limitations of the project

    While compiling the project no such problem can be stated as

    limitation, as constant help was provided by the faculty members

    in the effort to bring the project in the shape it is. However a few

    difficulties cropped up in handling the consumers while conducting

    the survey, which are the limitations in the project

    i) The study is restricted to Delhi region only.

    ii) The sample size is only 100 so nothing conclusive can be

    derived from this sample size.

    iii) There can be errors in sampling.

    iv) Time constraints were there.

    v) People might give their biased opinion.


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    Chapter 3


    3.1 Vision

    "As we spread wings to expand our capabilities and explore new

    horizons, the fundamental focus remains unchanged: seek out the

    best technology in the world and put it at the service of our

    ultimate user: our customer."

    These are the premise on which Bharti Enterprises has based its

    entire plan of action.

    Bharti Enterprises has been at the forefront of technology and has

    revolutionized telecommunications with its world-class products

    and services.

    Established in 1985, Bharti has been a pioneering force in the

    telecom sector. With many firsts and innovations to its credit,

    ranging from being the first mobile service in Delhi, first private

    basic telephone service provider in the country, first Indian

    company to provide comprehensive telecom services outside India

    in Seychelles and first private sector service provider to launch

    National Long Distance Services in India. As of January 31, 2003,

    Bharti had approximately 3.21 million total customers nearly 2.88

    million mobile and 334,000 fixed line customers.

    Its services sector businesses include mobile operations in AndhraPradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,


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    Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra

    circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West)

    circle. In addition, it also has a fixed-line operations in the states of

    Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and

    Tamil Nadu and nationwide broadband and long distance networks.

    Bharti has recently launched national long distance services by

    offering data transmission services and voice transmission services

    for calls originating and terminating on most of India's mobilenetworks.

    The Company is also implementing a submarine cable project

    connecting Chennai-Singapore for providing international


    Bharti Enterprises also manufactures and exports telephone

    terminals and cordless phones. Apart from being the largest

    manufacturer of telephone instruments, it is also the first telecom

    company to export its products to the USA.

    Bharti Tele-Ventures' strategic objective is

    to capitalise on the growth opportunities that the Company

    believes are available in the Indian telecommunications market

    and consolidate its position to be the leading integrated

    telecommunications services provider in key markets in India, with

    a focus on providing mobile services.

    The Company has developed the following strategies to achieve its

    strategic objective:


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    Focus on maximizing revenues and margins;

    Capture maximum telecommunications revenue potential

    with minimum geographical coverage;

    Offer multiple telecommunications services to provide

    customers with a "one-stop shop" solution;

    Position itself to tap data transmission opportunities and

    offer advanced mobile data services;

    Focus on satisfying and retaining customers by ensuring high

    level of customer satisfaction;

    Leverage strengths of its strategic and financial partners;


    Emphasize on human resource development to achieve

    operational efficiencies.

    3.2 Businesses

    Bharti Tele-Ventures current businesses include -

    Mobile services


    National and international long distance services

    VSAT, Internet services and network solutions

    3.3 Competitive Strengths


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    Bharti Tele-Ventures believes that the following elements will

    contribute to the Company's success as an integrated

    telecommunication services provider in India and will provide the

    Company with a solid foundation to execute its business strategy:

    Nationwide Footprint - As of January 31, 2003, approximately

    92% of India's total mobile subscribers resided in the

    Company's fifteen mobile circles. These 15 circles

    collectively accounted for approximately 56% of India's landmass;

    Focus on telecommunications to enable the Company to

    better anticipate industry trends and capitalise on new

    telecommunications-related business opportunities;

    The strong brand name recognition and a reputation for

    offering high quality service to its customers;

    Quality management team with vision and proven execution

    skills; and

    The Company's strong relationships with international

    strategic and financial investors such as SingTel, Warburg

    Pincus, International Finance Corporation, Asian

    Infrastructure Fund Group and New York Life Insurance.

    3.4 Brand Architecture:

    Bharti is working on a complex three-layered branding

    architecture to:

    Create specific brands for each service,


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    Build sub-brands within each of these services and

    Use Bharti as the mother brand providing the group its

    corporate identity as well as defining its goal to become a

    national builder of telecoms infrastructure.



    TOUCHTEL(Basic ServiceOperations)

    INDIA ONE(National Long



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    AirTel - The flagship brand for cellular operations all across

    the country.

    Touchtel - The brand earmarked for basic service


    India One - The brand for national long distance (NLD)


    Though the costs of creating new brands are heavy but thegroup wants to create distinct independent brands to

    address different customers and profiles.

    Brand Strategy:

    To understand the brand strategy, lets first look at the brand

    building exercise associated with AirTel a brand that had to be

    repositioned recently to address new needs in the market.

    When the brand was launched seven years ago, cellular telephony

    wasnt a mass market by any means. For the average consumer,

    owning a cellular phone was expensive as tariff rates (at Rs 8 a

    minute) as well as instrument prices were steep sometimes as

    much as buying a second-hand car.

    Bharti could have addressed the customer by rationally explaining

    to him the economic advantage of using a mobile phone. But

    Sachdev says that such a strategy would not have worked for the

    simple reason that the value from using the phone at the time was

    not commensurate with the cost.


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    Instead of the value-proposition model, we decided to address the

    sensory benefit it gave to the customer as the main selling tack.

    The idea was to become a badge value brand, he explains.

    So the AirTel leadership series campaign was launched showing

    successful men with their laptops and in their deluxe cars using the

    mobile phone. In simple terms, it meant AirTel was positioned as

    an aspirational brand that was meant for leaders, for customers

    who stood out in a crowd.

    Did it work? Repeated surveys following the launch showed that

    there were three core benefits that were clearly associated with

    the brand leadership, dynamism and performance.

    These were valuable qualities, but they only took AirTel far enough

    to establish its presence in the market. As tariffs started dropping,

    it became necessary for AirTel to appeal to a wider audience. And

    the various brand-tracking exercises showed that despite all these

    good things, there was no emotional dimension to the brand it

    was perceived as cold, distant and efficient.

    By 2000, Sachdev and his team realized that in a business in which

    customer relationships were the core this could be a majorweakness. The reason? With tariffs identical to competitor Essar

    and roughly the same level of service and schemes, it had now

    become important for Bharti to humanize AirTel and use that

    relationship as a major differentiation.

    The brand had become something like Lufthansa cold and

    efficient. What they needed was to become Singapore Airlines,


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    efficient but also human. A change in tack was important because

    this was a time when the cellular market was changing.

    The leadership series was okay when you were wooing the crme

    de la crme of society. Once you reached them you had to expand

    the market so there was need to address to new customers.

    By that time, Bharti was already the leading cellular subscriber in

    Delhi with a base of 3.77 lakh (it now has 1.2 million customers).

    And with tariffs becoming more affordable as cell companies

    started cutting prices it was time to expand the market.

    How could Bharti leverage this leadership position down the value

    chain? Surveys showed that the concept of leadership in the

    customers minds was also changing. Leadership did not mean

    directing subordinates to execute orders but to work along with a

    team to achieve common objectives it was, again, a relationship

    game that needed to be reflected in the AirTel brand.

    Also, a survey showed that 50 per cent of the new customers

    choose a mobile phone brand mostly through word-of-mouth

    endorsements from friends, family or colleagues. Thus, existing

    customers were an important tool for market expansion and Bhartinow focused on building closer relationships with them.

    That is precisely what the brand tried to achieve through its new

    positioning under the AirTel Touch Tomorrow brand campaign.

    This set of campaigns portrayed mobile users surrounded by caring

    family members. Says Sachdev: The new campaign and


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    positioning was designed to highlight the relationship angle and

    make the brand softer and more sensitive.

    As it looks to expand its cellular services nationwide to eight new

    circles apart from the seven in which it already operates Bharti

    is now realizing that there are new compulsions to rework the

    AirTel brand, and a new exercise is being launched to this effect.

    Right now, the company is unwilling to discuss the new positioning

    in detail. But broadly, the focus is on positioning AirTel as a powerbrand with numerous regional sub-brands reflecting customer

    needs in various parts of the country.

    If AirTel is becoming more humane and more sensitive as a brand,

    Bharti has also understood that one common brand for all cellular

    operations might not always work in urban markets that are now

    getting increasingly saturated.

    To bring in new customers, the company decided that it needed to

    segment the market. One such experiment, launched last year, is

    Youtopia, a brand aimed at the youth in the 14 to 19 age bracket

    and for those who are young at heart. With its earlier positioning,

    AirTel was perceived as a brand for the well-heeled older customer;

    there was nothing for younger people. With Youtopia, AirTel hoped

    to reverse that.

    In order to deliver the concept, AirTel offered rock bottom tariff

    rates (25 paise for 30 seconds) at night to Youtopia customers a

    time when they make the maximum number of calls. It also set up

    merchandising exercises around the scheme like a special portal

    for young people to buy things or bid for goods.


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    The company is now looking at offering other services at affordable

    prices to this segment which include music downloads on the

    mobile and bundling SMS rates with normal calls to make it

    cheaper for young people to use.

    The other experiment that Bharti has worked on is to go in for

    product segmentation through the Tango brand name. The brand

    was created to offer mobile users Internet-interface services or

    what is known as WAP (Wireless Application Protocol).

    The idea was to bring Internet and mobile in perfect harmony. The

    name was chosen from the popular movie title It Takes Two To

    Tango : basically, you need the two services to tango to offer

    customers a new choice, says Sachdev.

    The success of Tango was modest: the number of subscribers

    around 2,000.(mid- 2002) This, however, had less to do with the

    branding exercise as with inefficiency of service (accusingly slow

    download speeds) and the limited utility of WAP services.

    Subsequently, the ads were withdrawn, but the company re-

    iterated that the branding exercise could be revived because

    Tango will be the brand to offer GPRS services or permanentInternet connectivity on the mobile phone which AirTel is

    expected to launch soon.

    3.5 The Magic:

    Perhaps the more ambitious experiment has been with Magic

    the pre-paid card. The idea was to make the brand affordable,


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    accessible and, most importantly, feasible as a means of expanding

    the market even faster.


    Magic was aimed at bringing in infrequent users of a mobile phone

    into the market and assure him that he would have to pay only if

    he made a call. Such a customer used the phone sparingly

    mostly for emergencies and was not willing to pick up a normal

    mobile connection with its relatively high rentals (pre-paid cards do

    not include rental charges).


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    To achieve its objectives Bharti did three things.

    One, the product was made available at prices ranging from Rs

    300 to Rs 3,000 with no strings attached and was simple to


    Two, the product was made accessible and distributed through

    small stores, telephone booths and even kirana shops so that

    the offering was well within arms reach.

    Third, to make the product more approachable to the

    customer, the company came with vernacular ad campaigns like

    Magic Daalo Se Hello which appealed to local sensibilities.

    This apart, the company roped in Karisma Kapoor and Shah Rukh

    Khan for a major ad campaign all across Delhi, a ruse that saw the

    number of subscribers go up from 5.47 lakh to 12 lakh today,

    overtaking Essars branded pre-paid card Speed , which was

    launched much ahead of Magic. The company is now re-working its

    Magic strategy even further.

    Earlier, the branding strategy was aimed at roping in only

    interested customers that is, customers who were alreadyinclined to opt for mobile services. But now, with basic service

    providers having been allowed limited mobility at far cheaper

    rates, mobile service providers could find themselves under threat


    That is why the new exercise is aimed at co-opting non-adopters.

    While the exact strategy is under wraps, insiders say the new


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    branding strategy would be aimed at offering them value which

    they had not perceived would be available from using a pre-paid


    PHASE II -

    Bharti used AirTel Magic to build a strong value proposition and

    accelerate market expansion through Indias first national pre-paid

    card TV brand campaign

    First time ever in India - any pre-paid card brand goes on TV

    A combination of the film genre exposed through the TV

    medium designed to connect with the masses of India

    Youth based - romance driven strategy platform makes the

    value proposition of AirTel Magic - Mumkin Hai come alive

    All elements - user imagery, context, tone & language created

    to connect the category to the lives of the SEC B & SEC C

    segment the middle class non-mobile user.

    AirTel Magic positions itself on the platform of being excellent

    for emergency situations - increasing productivity as a part of

    everyday life.

    Sharukh Khan makes everything in life possible while

    romancing pretty Kareena Kapoor with AirTel Magic, Indias

    leading pre-paid mobile card.

    AirTel today unveiled its strategy for market expansion with the

    launch of its new AirTel Magic pre-paid card brand campaign


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    Magic hai to Mumkin hai. The strategy is targeted at the non-user

    segment defined as young adults, 15-30 years of age; in the Sec B

    & C segment is aimed at accelerating market expansion. The

    value proposition is centered around a persons desire to make all

    his / her dreams, ambitions & aspirations instantly possible. The

    new campaign for AirTel Magic is all about empowering millions of

    Indians to be on top of their lives.

    The brand is positioned to be relevant to the mass-market whowant to make all their dreams, hopes & desires come alive

    instantly. (At just Rs.300/- per month AirTel Magic is so easy to

    buy.) Improving productivity, letting you befriend the world and

    opening up new horizons. It gives you the freedom to control your

    life in a way never possible before. Indeed, anything that you think

    is possible is possible with AirTel Magic. The new brand slogan

    Magic hai to Mumkin hai has been specially created to capture

    this effectively.

    This strategy is designed to help us talk to this segment directly in

    the tone, manner & language of the masses. The Mumkin hai

    value proposition will help us expand the market and gain a higher

    percentage of market share in the process.

    The brand ambassadors Sharukh Khan and Kareena Kapoor

    embody this can do or Mumkin Hai spirit (infact that is the

    reason they were selected as brand ambassadors). Sharukh rose

    from a TV actor to become Indias top film star and national

    heartthrob. Kareenas success is due to her attitude, talent, hard

    work and the sheer ability to make a mark in such a short time.


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    Both these stars have said Mumkin hai and made it happen for


    The genre of this new strategy & campaign is Hindi cinema led.

    This genre connects millions across India. The spirit of romance,

    dancing the Indian cinema, well known to most as Bollywood,

    holds millions of Indians together as one.

    The new TV campaign of AirTel Magic crafted in the Hindi film

    idiom, magnifies the empowering optimism of Mumkin Hai, in the

    endearing situation of a boy-girl romance. Where Sharukh Khan,

    sets his eyes on Kareena Kapoor and wins her love with the help of

    AirTel Magic. (Poignantly conveying that special feeling we all get

    when a dream is made possible and a victory of the heart is won).

    The strategy & new brand campaign is targeted at the large

    untapped base of intending mobile customers from Sec A, B & C.

    The estimated addressable market of such customers in the next

    two years is around 25 million in AirTels 16 states. The new

    strategy aims at correcting the perception that the mobile

    category is useful mainly for business or work related scenarios.

    The new strategy, brand positioning & brand slogan is an outcomeof an extensive nationwide research and is an integral part of

    AirTel Magics new multi-media campaign. The campaign has been

    created by Percept Advertising.


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    The Airtel Re design:-

    Old Logo New Logo

    The new logo for Airtel service was designed after an extensive

    brand audit across different cities. This smart, contemporary form

    was in response to the overall brand strategy of creating a

    younger, more friendly brand persona.

    The groups marketing effort has been reinforced with the relaunch

    of the Airtel brand logo, with a new slicker, international and

    younger look. Under the new brand strategy, Airtel will now

    become the power brand and sub brands like Tango (for WAP

    services), Youtopia (for the youth) will be withdrawn. Even theMagic pre-paid brand will be repositioned as Airtel Magic.

    The idea was to rework the brand so that it is relevant to a larger

    segment of the population as we are now expanding into the

    smaller cities and towns. Our studies show that 70 per cent of the

    new customers in the pre-paid category are youth so their needs


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    had to be addressed. The new brand look will be supported by an

    over Rs 100 crore advertising budget.

    The high growth markets are between 15 years and 19 years old,

    salaries of Rs 6,000 to Rs 10,000 a month and the SEC B and C

    categories, which include shopkeepers, daily wagers and plumbers,

    amongst others which the company wants to target efficiently.

    Other Brand Building Initiatives:-

    The main idea is to stay ahead of competition for at least six

    months. Working on the above game plan Bharti is constantly

    coming up with newer product offerings for the customers.


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    The focus, of course, is to offer better quality of service.

    To make the service simpler for customers using roaming

    facilities, Airtel has devised common numbers for subscribers

    across the country for services like customer care, food

    services and cinema amongst others.

    It will also launch a unified billing system across circles so,

    customers moving from one place to another do not have to

    close and then again open new accounts at another place.

    To assist customer care personnel to deal with subscriber

    queries, a storehouse of 40,000 frequently asked questions

    and their answers have been stored on the computers.

    Bharti expects that most of its new customers (one estimate

    is that it would be 60 to 70 per cent of the total newsubscriber base) would come from the pre-paid card

    segment. So, they must be given value-added products and

    services which competitors dont provide.

    Bharti, for the first time for a cellular operator, has decided to

    offer roaming services even to its pre-paid customers, but

    the facility would be limited to the region in which they buythe card. To ensure that customers dont migrate to other

    competing services (which is known as churn and ranges

    from 10 to 15 per cent of the customer base every month),

    the company is also working on a loyalty program. This will

    offer subscribers tangible cash benefits depending upon their

    usage of the phone.


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    The loyalty program will not be only for a badge value, it will

    provide real benefits to customers. The idea is to create an

    Airtel community.

    Another key area which Bharti is concentrating its attention

    upon is a new roaming service launched in Delhi under which

    calls of a roaming subscriber who is visiting the city will be

    routed directly to his mobile instead of traveling via his home


    The company also offers multi-media messaging systems

    under which customers having a specialized phone with a in-

    built camera can take pictures and e-mail it to friends or

    store it in the phone. The cost per picture is between Rs 5 to

    Rs 7.

    Bharti is also aware that it has to make owning a ready-to-

    use cellular service much easier than it is today. A key area is

    to increase the number of activation centers. Earlier Bharti

    had 250 Airtel Connect stores which were exclusive outlets

    (for its services) and about 250 Airtel Points which were

    kiosks in larger shops. Now activation can be done by all of

    them, and not only by Connect outlets, all within 15 to 20

    minutes. In comparison, the competition takes two to four


    Pre- paid cards are really catching up with the mobile phone

    users and it is actually helping the market to increase. First,

    they are easier to obtain and convenient to use. Unlike post-

    paid, one need not pay security deposits for picking up a pre-

    paid card. It is often available even with paanwalas. As befits


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    a fast-moving consumer service, the game is now moving

    beyond price to expanding distribution reach and servicing a

    well-spread-out clientele with technology and strategic

    alliances. Bharti is focusing on two factors to make pre-paid

    cards more attractive. Keeping the entry cost low for

    consumers and making recharging more convenience.

    Bharti is in the process of launching a new system in alliance

    with Mumbai-based company Venture Infotech which will

    enable a pre-paid card user to renew his subscription by just

    swiping a card. The system will not only save users the

    hassle of going out and buying a card every time it expires

    but also enable mobile companies to reduce the cost of

    printing and distributing cards.

    Bharti Televentures has tied up with 'Waiter on wheels,' a

    company delivering food at home, to reach its Magic pre-paid

    cards to subscribers' doorsteps. The company is also joining

    hands with local grocery shops which will enable users to

    recharge their cards by just making a phone call to the shop.

    Apart from improving the convenience of recharging, mobile

    operators are beefing up their distribution channels. The

    company is constantly innovating to enhance the valueproposition for its pre-paid service. They are leveraging

    technology to expand their distribution network and deliver

    round-the-clock recharge options to its MOTS (Mobile On the

    Spot) subscribers.

    Bharti Cellular has also launched a special service,

    CareTouch, for high-value, corporate customers, providingthem with instant, single-point access for any assistance they


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    require. Customers can dial 777 and enjoy a slew of services,

    which includes easier payment of bills, service on priority

    basis, and value-added services without any additional paper

    work. Bharti Cellular is offering a range of services without

    going through an interactive voice recorder ensuring that

    they save time. Dedicated CareTouch executives are

    expected to assist customers with any service on priority

    basis. Besides the regular proactive reminder calls for bill

    payment, customers can also call CareTouch for billpayments at free of cost.

    AirTel presented MTV Inbox; the first on-air SMS based

    interactive music dedication show exclusively for AirTel and

    AirTel Magic customers. Highly interactive VJ based show

    with real-time feedback mechanism. Both brands joined

    hands to target the high growth youth segment.

    Bhartis View on its Branding strategy:-

    First, brand building efforts in todays context have to be seen in a

    more holistic manner. Delivering value on a sustained basis is

    perhaps the most potent key to build a brand that lasts.

    Unflinching orientation to customer needs is the second key

    success factor. Customers (be it for industrial products or

    consumer goods and services) across the world are more informed

    and, at the same time, becoming more individualistic in their needs

    and far more demanding with the passage of time.

    Pro-active tracking of shifts in consumer behavior, anticipating

    redefined or emerging customer needs, and then reacting in real-


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    time are essential to attract and retain customer loyalty a key

    element of creating brand equity in the present situation.

    Customizing the product (and communication of its benefit) to

    meet the specific needs of various consumer/customer sub-

    segments is the third element in creating brand appreciation.

    As far as allocation of time and financial resources are concerned,

    too many companies mistakenly allocate a disproportionate

    amount on mere advertising and promotion. This is not to say that

    advertising and promotion are less relevant. On the contrary, with

    more choices and higher media clutter, businesses need to budget

    for an increasingly higher spend on their brand promotion but this

    has to be undertaken in tandem with enterprise-wide

    reengineering of the business philosophy and core design,

    production, and delivery operations for the product itself.

    The positive spin to this argument is that by first addressing the

    fundamentals, the enterprise itself becomes more competitive. This

    can be the beginning of a virtuous cycle wherein brand equity

    continues to increase as the enterprise sustains delivery of an

    appropriate product or service at an ever increasing value.

    It is, however, crucial to note that in the years to come, not only

    will the cost of building a regional or a national (or an international)

    brand will continue to rise but also the time taken to do so will be

    longer and will need sustained and focused efforts.


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    Chapter 4


    Age Group Graph

    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









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    mobile phones to flaunt. They are 15% of the total interviewed


    Occupation Graph

    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. Thenext category is the households, who are either housewives, small

    units which operate from their homes etc. They are 20% of the

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

    whole. And 10% of the whole is a category who are the









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    Service Provider Graph

    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 Hutch.

    305 of the people interviewed had Hutch 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.








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    Customer Service At Airtel Graph

    As the above graph clearly shows that customer services at Airtel

    seems poor. 60% of the people are dissatisfied with the customer

    services provided by Airtel. They are the ones who have the

    maximum share in the market but they are lagging behind in the

    customer services. 10% of the people were fully dissatisfied with

    the customer services of Airtel. This could leave an impact on the

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

    the people seemed partially satisfied with the customer services

    and only 10% seem to be fully satisfied with Airtels customer

    services, which is a very small amount.









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    Type Of Card Graph

    Cash cards seemed quite popular among the people interviewed.

    85% of the total mobile users were having cash card connections.

    This means that the cash cards should be easily and readily

    available in the local markets. Airtel should make sure that Magic

    is available in each and every nook and corner of the market. 15%

    of the people were having sim connections which is the regular bill.









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    Monthly expense graph

    People on an average spend RS 500 per month as their mobile

    phone expense. 64% people spend this amount. 24% people spend

    RS 300 per month as their monthly mobile expense. And the

    remaining 12% had an expense more than RS 1000, they could theones having sim connections or having cash cards and having a lot

    of business calls on their mobiles.


    Monthly Expense




    Rs 600Rs 450Rs 200

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    Awareness About WLL Graph

    WLL seemed to be a new word for many of the people. 45% of the

    people were not at all aware of such a technology. So, in order to

    get the answer for this question they were first explained the

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







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    Awareness of WLL Players Graph

    Reliance was the brand which was popular amongst the

    interviewed people. As Reliance had done so much advertising and

    has it banners and hoarding spread all over Delhi. So, this could be

    one the reasons of its popularity. Tata was hardly a known brand in

    this new field. Possibly, because of less promotions done by themas compared to Reliance.








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    On the basis of analysis of the questionnaire I have found that the

    maximum no. of people who use mobile phones are in the agegroup of 20 to 28. who are the young executives and other office


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

    There are more no. of prepared cards than post paid cards. The

    mobile users want to spend money side by side than to spend

    money at the end of the month on a big bill.

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

    view of the consumer I found that on the basis of Tariff plan, value

    added services and billing accuracy Airtel is at par or ahead of its

    competitor but in the case of customer care and availability they

    lag behind there competitors. As, Airtel has a hold in the marketbecause it has the maximum no. of connections, so it must

    improve upon it customer services. As far as WLL is concerned

    people are aware about it but not many people are aware about

    Tata. They only Know more about Reliance. People at this point of

    time are not interested to switch over from GSM to WLL.


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    Chapter 5



    Hutchison Group (Hutchison Max Telecom, Hutchison Essar

    Telecom, Hutchison Essar South, Fascel and Usha Martin Telekom)


    It has existing operations in three of the four metros (New Delhi,

    Mumbai and Kolkatta) and has recently started service in Chennai.

    Hutchison Whampoa, which is controlled by Hong Kong billionaire

    Li Ka-shing, is cash rich and will be able to finance any capital

    investments easily.

    It has a strong brand image (Orange) in Mumbai, and the brand

    could be leveraged in the other circles. It is also perceived as an

    innovative service provider.


    The 49 percent limit on foreign ownership could pose a problem in

    Hutchison's plan to expand to other circles.

    It will face increased competition in New Delhi and Mumbai. MTNL

    has commenced its cellular offerings there, and Idea and Bharti

    have also acquired licenses to operate in New Delhi and Mumbai,respectively.


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    5 .2 Idea (Birla-AT&T-Tata and RPG Cellcom)


    Idea has service licenses in two of the metros (Mumbai and

    New Delhi), with extensive retail outlets in Mumbai (over

    1,500). It has also managed to secure licenses for a large,

    contiguous service area covering Southern and Central India.

    It currently has the largest market share and is able toleverage on economies of scale in its operations.

    It is backed by large and reputed Indian business house

    Birla and Tata.

    It has an experienced foreign partner in AT&T.


    Idea does not have cellular licenses in any Southern states of

    India except for Andhra Pradesh. With the BPL merger not

    taking off, it has deprived Idea of a presence in South India.

    It will face intense competition in its service area from the

    Bharti Group and Hutchison.

    It will have to manage cultural differences very carefully.

    There is little clarity as to who is providing strategic direction

    to the group Birla, Tata or AT&T.


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    Idea has not been able to launch services in Delhi due to

    technical issues related to spectrum allocation. The delay

    puts it at a disadvantage.

    5.3 GROUP BPL


    BPL services some of the most lucrative circles Mumbai,

    Maharashtra, Tamil Nadu and Kerala.

    The company has extensive retail outlets in Mumbai (over

    1,500). It has also managed to secure licenses for a large,

    contiguous service area covering Southern and Central India.

    BPL Mobile has a good understanding of technology and was

    one of the first to launch GPRS services in the country.

    The first MMS service was launched in Mumbai by BPL Mobile onOctober 2002.

    It also has a good brand name and has a strong consumer


    It has an experienced foreign partner in France Telecom.


    BPL will be limited by its lack of coverage.

    It will face intense competition in its service area from the Bharti

    Group and Hutchison in Mumbai.

    With interest in varied areas of consumer electronics, BPL may

    be strapped for cash to invest in its telecom venture.


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    Chapter 6


    6.1 Wll Explained?

    Since the advent of the telephone system, copper wire has

    traditionally provided the link in the local loop between the

    telephone subscriber and the local exchange. But copper's heydayin the local loop is coming to an end. Economic imperatives and

    emerging technologies are opening the door for WLL solutions and

    WLL uses wireless technology coupled with line interfaces and

    other circuitry to complete the last mile between the customer

    premise and the exchange equipment.


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    Bill Frezza, president of Wireless Computing Associates, calls WLL

    "the hot telecom growth industry of the next decade." According to

    the research firm MTA-EMCI, the worldwide WLL market will reach


    million subscribers by the year 2005. Herschel Shosteck Associates

    estimates there will be a demand for WLL service for 172 million to

    307 million subscribers but that actual service will be provided for

    50 million to 60 million subscribers by the year 2000. The growingdemand for high-bandwidth transmission capable of supporting

    rich-data types places additional requirements on a WLL system.

    Operators must evaluate the various technologies based on their

    ability to support data rates up to integrated services digital

    network (ISDN) speeds.

    How WLL Is Shaking The Market?

    The WLL revolution is underway. WLL suppliers and operators are

    flocking to emerging markets, using whatever available wireless

    and line interface technologies are at hand to achieve fast time to

    market. Because there are no definitive WLL standards. Ultimately

    the appropriate protocol technology will depend on an array of

    applications considerations, such as size and population density of

    the geographic area (rural versus urban) and the service needs of

    the subscriber base . In fact, there are many good reasons why

    different wireless technologies will serve some applications better

    than others. The challenge for WLL vendors is to identify the

    optimal wireless protocol for their unique application needs, then


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    reduce cost per subscriber through silicon and deliver integrated

    solutions to the marketplace.

    6.2 WLL Market Overview.

    According to the International Telecommunications Union (ITU),

    worldwide local-loop demand is expected to result in 800 million

    new lines by the year 2000. Of these, 685 million will be in

    emerging countries, and 115 million will be in developed countries.

    Worldwide Local-Loop DemandWorldwide Local-Loop Demand

    which has been sourced from ITU/AMD, is based on ITU historical

    data from 1992 to 1994. It assumes the growth rate for each

    country remains the same as from 1992 to 1994. It also assumes

    that unserved demand, which represents people on official waiting

    lists as of 1994 (43 million), will remain a constant percentage of

    installed lines.


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    The WLL market is just entering its infancy. Because of this,

    projections have been extended out to the year 2002 to show the

    true potential of this market. By the end of 2002, forecasts indicate

    that there will be 339 million WLL lines installed throughout the

    world. The vast majority of these lines will be in emerging

    countries, with a small percentage in developed countries. The

    underlying assumption of this forecast is that demand for POTS in

    emerging countries will outstrip the post telephone & telegraph

    administration (PTT's) abilities to install copper wire. Also, the costs

    of WLL will continue to decline, while the cost of copper wire

    installation will stay flat. The lower cost of WLL (especially in low-

    density population areas) and the ability to install WLL more

    rapidly than copper wire will motivate the PTTs of the emerging

    countries to serve excess demand with WLL. Some projections

    assume that although WLL serves only 5 percent of the current

    excess POTS demand in emerging countries, it will grow to serve

    70 percent of the excess demand by the year 2002. Similarly, it is

    estimated that WLL will be used for a growing percentage of new

    lines even in locations where copper-wire service is already

    available. This forecast assumes that WLL's share of these lines in

    emerging countries will grow from 5 percent in current years to 35percent by 2002.

    The penetration of WLL into developed countries is assumed to be

    much lower than in emerging countries. The PTTs are able to keep

    up with the demand for new POTS lines so unserved demand is not

    an issue. The requirement for WLL in developed countries will

    come from companies that want to bypass the established local


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    phone companies or customers who want the additional services

    that WLL can provide. This is a small subset of the total population

    so it can be assumed that WLL will gain only 5 percent .

    Worldwide Number of Potential WLL Lines (in millions)


    81999 2000 2001 2002

    emerging countries 16 34 64 111 183 296


    countries7 13 21 31 37 43

    Total 23 47 85 142 220 339

    WLL Market Segments

    The two basic market segments for WLL are for basic phone

    service in emerging economies and for wireless bypass in

    developed economies. The requirements for each of these

    segments in urban/suburban and rural area.

    Developed (Bypass) Emerging (POTS)



    High-speed data

    enhanced services

    limited mobilityhigh traffic/subscriber


    POTS (voice quality)

    modem data

    no (limited) mobilityhigh traffic/subscriber



    High-speed data

    enhanced services

    limited mobility

    low subscriber densities

    wide coverage

    POTS (voice quality)

    modem data

    no (limited) mobility

    low subscriber densities


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    6.3 Current Scenario In India

    Currently there are two major players in India who are providing

    WLL Services. TATA Indicom was launched in Jan, 2003 and

    Relaince has just been launched. Initially it was expected that they

    would pose a major threat to GSM service provider when they were

    supposedly giving both SMS and Roaming facilities but now as TRAI

    has refused to allow WLL to give roaming facilities and status of

    SMS is still not cleared so currently they should not be giving as

    much of threat to Airtel.

    Advantages of WLL

    1. Less running cost.

    2. Better pulse rate.

    3. Cheaper STD rate with the same service provider

    Disadvantages of WLL

    1. Roaming facility is not available.

    2. SMS is not available.

    3. Instrument cost is high.

    4. Activation takes time.

    5. Once you pay for set for Relaince you are bound to it for three

    years even after that are not the owner of the set.


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    6. It is a new technology in India and people are a bit

    apprehensive about it.

    Now considering above advantages and disadvantages of WLL, I

    think that WLL service provider should not be posing a great threat

    to Airtel provided if Airtel keep its customer satisfied and keep

    coming out with innovative and attractive tariff plans.


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    Chapter 7


    After analyzing the findings of the research, I can conclude that

    Airtel lagged behind its competitors as far as customer service and

    availability is concerned. The maximum no. of people who use the

    mobile are in the age group of 20 to 28. Cash cards are the most

    popular type of mobile connections, as they are consumer friendly

    and recharging the connection is not a problem.

    Maximum no. of people spend RS 500 on their connections. As

    Airtel is the only company having the maximum no of mobile

    connections so it must seriously look into the loop holes of the

    existing customer service department.

    Although people are aware about the tariff plans offered by WLL

    service providers, but right now they are not in hurry to adopt it.

    The public wants to wait and watch their respective performances.


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    i) Airtel should look into the short comings of its customer

    care service.

    ii) Airtel should make sure, that their prepared card should

    always be readily available with the retailers.

    iii) Airtel should keep on coming with attractive tariff plans.

    iv) As maximum no. of users are between 20 to 28 they

    should specially come out with some plans which are

    attractive for this segment.

    v) Main advantage of WLL is its tariff plan. So GSM service

    providers should try to reduce their tariff plans if possible,

    at least initially.


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    SEX: M/F


    1. What mode of communication are you using presently?

    TelephoneCell phone E-Mail Any other ..

    2. Are you using a GSM mobile? Yes No

    3. Present GSM service provider: Airtel

    Idea Hutch other

    4. Are you satisfied with the customer service provided by Airtel? Fully Partial Dissatisfied Fully dissatisfied

    5. Does your service provider offers schemes time and again? Yes Sometimes Rarely Not at all

    6. Good telecom services to you is

    Very important Some what important

    Not very important Not at all important


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    7. Do you feel that existing service provider listens to yourproblem?

    Everytime Sometime Rarely Not at all

    8. Do you have: A cash card A sim connection

    9. Do you easily get a cash card from the local market?

    Always Occasionally Not at all

    9. Do you understand the concept of WILL ? Yes No

    10. Which of the following have you heard about? Tata Infocom Reliance

    11. What do you think should be the rent on the usage of cellphones per month?

    600 Rs. 450 Rs 200 Rs.

    12. Are you waiting and watching the results of reliance? Yes No Doesnt matter


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    High Medium Low High Medium Low High Medium Low

    DependabilityOf Connection

    Ease of gettingconnection

    Clarity of sound

    Reach Roaming

    facility Caller

    identification Promotional

    schemes Price of sim