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A Project ReportA Project Report

OnOn

IMPACT OF COMPETITORS AND NEWIMPACT OF COMPETITORS AND NEW TECHNOLOGIES OF AIRTELTECHNOLOGIES OF AIRTEL

In Partial Fulfillment Of the degree of Bachelor of Business Administration

2006-2009

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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Acknowledgements

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

done.

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CONTENTS

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

Bibliography

Annexures

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Chapter 1

INTRODUCTION

INDUSTRY PROFILE

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.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND

THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing

in 1994-96 was beset by several problems for 3 - 4 years till the

New Telecom Policy of 1999 was announced. Some of these

roadblocks / current position is tabulated below:

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ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial

fund requirements for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at

over 60% per annum, while businesses with weak promoters

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

major groups emerging in the last one/two years.

Regulatory authority not in place

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

role being accepted by all operators; Deptt of Telecommunications

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

in different bodies.

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

operators.

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

institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed

as a matter of routine allowing ease of entry / exit - paves the way

for full control of businesses by foreign companies.

Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber

growth, but with corrective measures taken, market / subscriber

base expected to zoom

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1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-

line operators is still biased against the former.

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

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

a nation of over one billion people.

In recent years, many foreign companies had pulled out from 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.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly

focus on differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G will

enable operators to offer data services. This is an

opportunity to customize and differentiate better.

The entry of state-run operators like BSNL and 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.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian

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

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

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

process of liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

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

implemented.

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Chapter 2

OBJECTIVES AND RESEARCHMETHODOLOGY

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

conducted.

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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

COMPANY PROFILE

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

bandwidth.

Bharti Enterprises also manufactures and exports telephone

terminals and cordless phones. Apart from being the largest

manufacturer of telephone instruments, it is also the first telecom

company to export its products to the USA.

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;

and

Emphasize on human resource development to achieve

operational efficiencies.

3.2 Businesses

Bharti Tele-Ventures current businesses include -

Mobile services

Fixed-line

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.

BHARTI

AIRTEL(CellularOperations)

TOUCHTEL(Basic ServiceOperations)

INDIA ONE(National Long

Distance)

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AirTel - The flagship brand for cellular operations all across

the country.

Touchtel - The brand earmarked for basic service

operations.

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

telephony

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.

PHASE I

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

operate.

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

again.

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

card.

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

themselves.

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

36
http://popup%28%27images/airtellogo_big.gif')http://popup%28%27images/airtelmagic_big.gif')


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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

network.

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

hours.

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

FINDINGS AND ANALYSIS

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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AGE GROUP

15-21

15%

21-28

65%

28-35

20%


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

people.

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

professionals.

44

OCCUPATION

15%

55%

20%

10%

STUDENTS EXECUTIVES HOUSEHOLDS OTHERS


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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.

45

SERVICE PROVIDER

15%

30%

5%

50%

IDEA AIRTEL HUTCH OTHERS


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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.

46

CUSTOMER SATISFACTION LEVEL

20%

10%

60%

10%

FULLY PARTIALLY

DISSATISFIED FULLY DISSATISFIED


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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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TYPES OF CARDS

CASH

CARD

85%

SIM

CARD

15%


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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.

48

Monthly Expense

12%

64%

24%

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.

49

AWARENESS ABOUT WLL

YES

55%

NO

45%


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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.

50

AWARENESS OF WLL PLAYERS

RELIANCE

85%

TATA

INDICOM

15%


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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

goers.

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

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

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

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

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

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

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

competitor but in the case of customer care and availability they

lag behind there competitors. As, Airtel has a hold in the 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

STRENGTHS AND LIMITATIONS OF MAJORCOMPETITORS

5.1 HUTCHISON GROUP

Hutchison Group (Hutchison Max Telecom, Hutchison Essar

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

Strengths

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.

Limitations

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)

Strengths

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.

Limitations

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

Strengths

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

franchise.

It has an experienced foreign partner in France Telecom.

Limitations

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

THREAT OF WLL TO AIRTELS BUSINESS

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

202

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)

1997199

81999 2000 2001 2002

emerging countries 16 34 64 111 183 296

developed

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)

Urban/subur

ban

High-speed data

enhanced services

limited mobilityhigh traffic/subscriber

densities

POTS (voice quality)

modem data

no (limited) mobilityhigh traffic/subscriber

densities

Rural

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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COMPARISON OF WLL SYSTEMS

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

CONCLUSION & RECOMMENDATIONS

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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RECOMMENDATIONS

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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BIBLIOGRAPHY

BOOKS

KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY

PRENTICE HALL OF INDIA PVT.LTD., Ed. 10, 2003.

HAWKINS & TULL, MARKETING RESEARCH, PUBLISHED BY

PRENTICE HALL OF INDIA PVT.LTD. Ed. 8, 2003.

AAKER KUMAR DAY, MARKETING RESEARCH

MAGAZINES

BUSINESS INDIA

BUSINESS WORLD

WEBSITES:

HTTP:// WWW.COAI.COM

HTTP://WWW.TRAI.COM

HTTP://ECONOMICSTIME.COM

HTTP://KHOJ.COM

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http://www.coai.com/http://www.trai.com/http://www.coai.com/http://www.trai.com/


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ANNEXURE

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QUESTIONNAIRE

NAME:

AGE:

SEX: M/F

OCCUPATION:

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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HUTCH AIRTEL IDEA

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

card

Airtel New1

Documents

Transcript of Airtel New1