Airtel Teerm Paper

8/2/2019 Airtel Teerm Paper

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AIRTEL

INTRODUCTION (Company overview)Bharti Airtel Ltd was incorporated on the 7th of July, 1995 as a Public Limited

Company & one of the first companies to enter the Telecom Services business inIndia. As on date, Airtel provides mobile services in all the 22 telecom circles in

India, Sri Lanka and Bangladesh. It was the first private operator to have an all

India presence. Airtel provides Telemedia services (fixed line and broadband

services through DSL) in 89 cities in India, DTH and IPTV services also.

Sunil Bharti Mittal, the founder-chairman of Airtel, began his journey

manufacturing spare parts for bicycles in the late 1970s. His strong

entrepreneurial instincts gave him a unique flair for sensing new business

opportunities. In the early years, Bharti Airtel Ltd established itself as a supplier of

basic telecom equipment. Mr. Sunil Mittal jumped at the opportunity provided

when the government opened up the sector and allowed private players to

provide telecom services. Bharti Airtel Ltd accepted every opportunity provided

by this new policy to evolve into India's largest telecommunications company and

one of India's most respected brands. Airtel was launched in 1995 in Delhi and is

today present in all of India’s 22 telecom circles. Airtel had gross revenues of Rs.

396,150 million1 (for year ended March 31, 2010-Audited) & a customer base of

131 Millon2 customers as of 31st March 2010.

OUR BRAND

Airtel was born free, a force unleashed into the market with a relentless and

unwavering determination to succeed. A spirit charged with energy, creativity and

a team driven “to seize the day” with an ambition to become the most admiredtelecom service provider globally. Airtel, in just ten years of operations, rose to the

pinnacle of achievement and continues to lead.

As India's leading telecommunications company, Airtel brand has played the role

of a major catalyst in India's reforms, contributing to its economic resurgence.

Today we touch people's lives with our Mobile services, Telemedia services, to

connecting India's leading 1000+ corporates. We also connect Indians living in

USA, UK and Canada with our callhome service.



VISION AND PROMISE

By 2015 Airtel will be the most loved brand, enriching the lives of millions.

" Enriching lives means putting the customer at the heart of everything we do. We

will meet their needs based on our deep understanding of their ambitions,wherever they are. By having this focus we will enrich our own lives and those of

our other key stakeholders. Only then will we be thought of as exciting,

innovation, on their side and a truly world class company."

Airtel is a fully integrated telecom player offering end to end solutions:

• Wireless Services o 2G/3G

o Rural Market

o Sri Lanka

o Bangladesh

• Telemedia Services o Fixed Line

o Broadband

o IPTV

• DTH (Direct-To-Home) Media

• Enterprise Services o Carriers

o Corporate

• Passive Infrastructure Services

MARKETING STRATERGY ASSESMENT

Network expansion

BAL focused on expanding its network coverage all over the country before other

players could expand on a big scale. In February 2008, it announced an annual

investment plan of US $ 2 billion to expand its network over the next 3 years. This

was substantially higher than its average annual investment plans of US$ 1.5

billion. BAL planned to add an additional 30,000 base stations to its existing

40,000 base stations for the fiscal year 2007 and thereby cover 70% of the

country. Nearly 50 to 60% of the future expansion was to be in the rural areas.

BAL also planned to cover 97% of the country by 2010.



In July 2007, BAL entered into a memorandum of understanding (MOU) with

leading telecommunications solutions company Nokia Siemens Networks (NSN)

for an end-to-end network expansion across all of BAL’s mobile, fixed, and

intelligent network platforms. As part of the MOU, which was worth US$ 900

million, NSN was to expand BAL’s GSM network in 8 circles under a two-yearproject. It was one of the largest GSM expansion deals in India. BAL’s main aim of

expanding its GSM network under the MOU with NSN was to increase its footprint

in rural areas and increase its overall network capacity to face competition from

the new players. Commenting on this ma jor expansion deal, Kohli said, “The

expansion and integration exercise across mobile and fixed networks will help us

in augmenting our service delivery capacity.” As part of the deal, NSN was to also

deploy 1.8 million ‘next generation network’ ports across BAL’s national long

distance and international long distance networks.

Targeting All Segments On the value added services (VAS) front, BAL planned tolaunch new cutting edge VAS such as Mobile Payment Services and Mobile Money

Transfer Services. BAL also planned to roll out complete mobile commerce (m-

commerce) services which would facilitate services like online purchases with

handsets. BAL entered into a tie-up with Nokia in 2007 to offer entry-level

handsets to its customers. BAL was to offer Nokia handsets bundled with its

connections at subsidized prices. This tie-up was aimed at countering the self-

branded handsets offered by Bharti Airtel such as Vodafone and Tata and also to

facilitate its expansion in the rural areas. As part of the tie-up, the two companies

were also to combine their advertising and marketing initiatives to tap the lowersegments of the market.

BAL also did away with the practice of using a single marketing strategy to target

all the customers. It categorized the customers based on ARPU and adaptability to

new VAS and technologies. High-end customers were segmented into a separate

category called ‘funsters.’ Industry experts said that as the mobile telecom market

matured in India, the days of using a single marketing strategy for the whole

mobile market were over and proper segmentation of the market would be the

key for better targeting. BAL planned to focus its marketing efforts on these tech

savvy heavy VAS users who were generally in the age group of 18-35 years.To improve its revenues and deal with the steadily falling ARPUs, BAL decided to

get into tie-ups with leading manufacturers of high-end hand-held devices such as

High Tech Computer 12



Corporation (HTC) and Research in Motion Ltd (RIM). Through these tie-ups, it

off ered products like the ‘HTC Touch’ and the ‘BlackBerry’, which provided

features such as push email, document support, and touch screen interface.

These products were aimed at high-end corporate users whose ARPUs were high.

BAL hoped to increase its falling ARPUs through a slew of such high-end offers.BAL also reduced its overall tariffs to woo its low-end users. On January 15, 2008,

BAL reduced its tariffs to Re. 1 (around 2 cents) for its lifetime prepaid users -- a

reduction of 50% when compared to the previous rate of Rs. 2 per minute. It even

reduced the fixed charges for lifetime validity for prepaid subscribers to Rs. 495

from Rs. 999. BAL also introduced a number of postpaid plans like the ‘Airtel

Supersaver-399’ which provided users with free talk time equal to the value of

monthly rental paid by them. This brought the effective recurring monthly rental

charges to zero. BAL aimed at removing the entry barriers and reducing the

recurring maintenance charges for consumers so as to create a whole newcustomer base to feed its growth. The reduction in the tariffs and the lowering of

the fixed and recurring charges were intended to increase the user base by

further expanding the market. Analysts said that reduction in the entry as well as

monthly recurring charges was the key to expanding in the rural markets. BAL also

started new advertising campaigns to reposition the ‘Airtel’ brand.

Wooing the Rural Masses Analysts felt that increasing rural penetration was a

very challenging task. Not only did the telecom companies have to contend with

low ARPUs as most of the people living in rural areas had low incomes, but they

also had to face other challenges like getting power connections and supply andhaving to build more and higher towers as population density in rural areas was

low. This only added to the costs. India being a diverse country, there were

various languages and dialects with some even not having alphabets and this

made targeting the groups speaking these languages or dialects and providing

mobile services to them that much tougher.

In what analysts saw as another innovative approach to rural markets, BAL started

to tie up with shop owners in remote areas of India and bundled information on

issues important to the rural population (such as weather, crop yield, fertilizers,

etc.) with the mobile phone. It also began providing economical plans (withhandset bundling) to rural people to increase uptake. “Our next 50 million will

largely come from rural India as our plan is to reach 5,200 census towns and over

five lakh (500,000) villages, covering 96 per cent of the Indian population, “said

Kohli.



In 2008, BAL launched a joint venture company, IFFCO Kisan Sanchar Limited

(IKSL) with Indian Farmers Fertilizer Cooperative Ltd (IFFCO) to provide VAS and

voice services to farmers throughout India. In addition to the low tariff of Rs.0.50

per minute between IFFCO members, it planned to offer economical handsets

bundled with the mobile connection. The VAS platform was to broadcast 5 freevoice messages daily on mandi prices, farming techniques, weather forecasts,

diary farming, animal husbandry, rural health initiatives, fertilizers, etc. The

farmers would also have access to a dedicated helpline manned by experts in

various fields to answer 13



their queries. BAL said that the initiative would help in the development of the

community as well as the rural economy.

Differentiation strategy

BAL had focused on differentiating itself in the Indian telecom market by ensuring

customer delight and a cost-effective business model – a business model of beingprofitable despite having the lowest tariff in the world. Building a Strong Brand

Right from its early days, the company focused on building a strong brand through

innovation in sales, marketing, and customer service. BAL adopted some

innovative promotional strategies for its products. It enrolled celebrities as its

brand ambassadors to take mobile services to the masses.

It initially used Indian cricket star Sachin Tendulkar to promote its services. It also

made Hindi film actors Shahrukh Khan and Kareena Kapoor its brand ambassadors

to promote its products and services. The promotion of BAL’s services by

Shahrukh Khan proved very successful, especially for its erstwhile prepaid mobileservices brand ‘Magic.’ BAL later used Shahrukh Khan in its ads for the launch of

many of its other services. It also got noted Indian music director AR Rahman to

compose special ring tones for its ‘Airtel’ brand. Campaigns such as ‘Express

Yourself’ launched in 2003 went a long way in making Airtel a big brand in India.

By the mid-2000s, the company had gone on to become one of the biggest

advertisers in India, with total expenditure on marketing, distribution, and

advertising of Rs. 12.55 billion (Rs.4.02 billion on advertising alone) in 2006-07.

Business model innovation

BAL also focused on remaining a lean organization. It was one of the first telecomcompanies to outsource its network deployment (to Ericsson and Nokia), IT

services (to IBM), and customer contact centers (to IBM Daksh / HTMT). It utilized

different payment models from revenue per share to cost per all, depending on

what worked for the parties involved. According to analysts, this helped the

company save on capital expenditures and lower its operational expenses.

According to management consulting firm Oliver Wyman, BAL’s operating

expenses as a share of revenue had declined 8% annually since 2003.28 Analysts

felt that this had helped BAL in offering customers its services at low cost and also

to focus on its core business while handling any changes in consumer demand in aflexible way. With the price of calls per minute becoming lower by the day, it

became important for the company to control costs if it wanted to invest in

building a sustainable business. “We were seeing people laugh at us, saying ‘how

can you give away your lifeline to vendors?’… We were very clear that the

technology was not something we need to focus on.



Technology is something we buy to sell to the customers. Ericsson, Nokia, and

IBM do technology for a living, so let’s give it to them because they know best . It

has made the business model of Bharti very, very sustainable, “said Mittal. In

addition to this, analysts felt that the company had negotiated the challenges

posed by new entrants into the mobile phone market rather deftly. Competingwith BSNL in the early 2000s was particularly tough. After entering the mobile

phone market, BSNL introduced free incoming calls for its mobile phone users.

This was a first in the Indian telecom market. BSNL also made use of its then

strong fixed line user base -- 14



incoming calls made to its mobile phone users from its fixed line users were free.

Private players like BAL, on the other hand, could not afford to provide free

incoming calls to customers as they had to pay interconnection charges. But BAL

later lobbied heavily through the COAI to get the GoI to reduce the

interconnection charges and made the incoming calls free across all Bharti Airteland the services offered.

New advertising strategy

Since branding played an important role in telecom, BAL also started a new

advertising campaign to reposition the Airtel brand. From early 2007, it began to

roll out some new promotional campaigns, one of the important ones being the

‘Kuch Bandhan atoot hote hain…’ *Some bonds are unbreakable+ campaign

launched in March 2007. The campaign stressed the wide coverage that the

nationwide mobile network of BAL provided. The advertisement featured a

divided family reuniting after a gap of 22 years. The ad depicted a young man,who comes to his ancestral village to meet his grandparents for the first time. His

father had left the village 22 years ago apparently due to some differences with

his father, never to return. The grandfather refuses to talk to the boy first but

relents later after speaking to his son on the mobile phone with BAL’s network.

Not being purely emotional like its earlier ‘Express Yourself’ campaign, the new

advertisement campaign highlighted the capabilities of BAL’s mobile telecom

network.

BAL launched another major advertising campaign in December 2007 called

‘Barriers break when people talk.’ The theme of the new advertisement was thatcommunication dissolved boundaries and barriers broke down when people

started communicating. The advertisement was shot in Morocco and the

characters in it spoke a French dialect. The ad was based upon the story of two

boys separated by border fencing. When one of the boys starts playing with a

football it falls on the other side of the fence. Hearing the sound, the boy on the

other side of the fence comes out of his house. The first boy persuades him to

kick the ball over the border fence. Eventually, the two boys crawl under the

fence and start playing football with each other. No celebrities were used in the

film and the two protagonists in the advertisement were picked up from thestreets of Morocco.

This new advertising campaign from BAL was considered one of the most creative

advertising campaigns in the Indian telecom sector. Marketing experts said that

the main aim of this new advertisement campaign was to bring iconic status to its

Airtel brand. As BAL was expanding into foreign telecom markets, the ad



campaign also aimed at projecting Airtel as a global brand. The campaign aimed

to achieve this by making the advertisement in a foreign land. The need to project

Airtel as a global brand was felt more urgently as it had to face competition from

global brands such as Vodafone, they said.

BAL’s various initiatives helped it attain a dominant position in the market (Refer

to Table below for the top mobile telecom Bharti Airtel in India as on 31st Jan

2008). According to a report published by management consulting firm Oliver

Wyman, BAL had been the best performing communications, media, and

technology (CMT) company for five years (2001-2005), in terms of Shareholder

Performance Index. In 2007, a leading business magazine Business Week ranked

BAL third in their ranking of infotech companies in terms of shareholder return.

Top Mobile Telecom Bharti Airtel in India from M Rajendran, “The Great War,”

www.businessworld.com, February 15, 2008.In addition to fuelling high growth, Airtel’s marketing strategy and its business

model attracted the admiration of many industry experts. In 2007, it was

recognized as the ‘Best Indian Emerging Market Carrier’ in the prestigious

Telecom Asia Awards 2007. In 2005 and 2006 too, it received awards such as the

‘Best Indian Carrier’ at the Telecom Asia Awards 2006 and the ‘2005 Indian

Mobile Operator of the Year’ by Asian MobileNews. In 2006, in the Frost and

Sullivan Asia Pacific ICT 2006 awards, BAL bagged the awards for ‘Wireless Service

Provider’ and the ‘Competitive Service Provider of the Year’, while its CMD,

Mittal, won the ‘CEO of the Year’ award.Its business model too attracted the attention of industry experts and

competitors. In 2005 and 2006, this model received three awards from Asia’s

leading IT management magazine MIS Asia - ‘MIS Asia IT Excellence Award for

Best Change Management’ in 2005; the ‘MIS Asia IT Excellence Award for Best

Bottom Line IT’ in 2006; and the ‘MIS Asia IT Excellence Award for Best Knowledge

Management’ in 2006. In 2006, it also received the Nasscom IT Innovation Award

for the Business Model Innovation. Besides, BAL had been ranked among the top

innovative infotech companies by BusinessWeek magazine since 2004. For

instance, in 2006 and 2007, it was ranked 10th and 14th respectively in the list of top 100 infotech companies, ahead of many illustrious infotech firms. 16

For his contribution to the development of the Indian telecom sector, Mittal was

awarded the GSM Association Chairman’s Award 2008, the highest honor in the

global telecom sector. Analysts felt that he had built up BAL from scratch with a

business model that had become the benchmark for emerging markets. They felt



that the BAL business model had generated a lot of interest among competitors

and MNCs venturing into the emerging markets had a lot to learn from it. Some of

its competitors, particularly the Indian ones, had even started imitating this

model.

PEST ANALYSIS- EXTERNAL ANALYSIS

Political

RegulationsPolitical Opposition to participation by the

private playersGovt support to promote FDI in Telecom sectorBanning of Phone Use in Certain Circumstances

Technology

Equipped with New Technology Rapid Industrial growth rate induced

by emerging technologies. Strong Fibre Optic Network Utiilization of E- Commerce facilities Efficient Customer Care Services

Socio-Cultural

High End Phones becoming statussymbol

Due to Intimate family bonding inIndian Culture, there is need to remainconnected

Tech Savvy Generation

EconomicCost of calls Being Driven DownWorldwide Recession- Both Boon & BaneMiddle class consumer base growing due toaccelerated economic growthUntapped markets in emerging Economies -New Opportunity

AIRTEL Strength & Weakness

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

I N T E R N A L

E X T E R N A

L

Tele-Density – 30.6% Low among Developing Countries

Low Broadband Penetration

Untapped Rural Market

Bharti Infratel – Cutting Down cost i n Rural area

Growing Globally

First Indian Sponsor to signed Manchester United

• Falling ARPU

• Intense Competition From Nearest Competitor

• Shortage of Bandwidth

• New Players Entering Indian telecom sector

• Uncertain Economic Condition

• Valuable Business Partners – Techno & Financial

•Strong Brand Image

• First Mover Advantage

• Single Private Leading Indian Telecom Company

• Enthusiastic & Innovative Business Development team

•Marketing Driven Low Cos t Model

• Blessed with Directional Visionary - S.N. Mittal

• Massive Economies of scale from large subscriber base

• Outsourcing of Core Systems

• Lagging behind in Exploring market Investmentopportunity



Competitor Analysis

0.00%

5.00%10.00%15.00%20.00%25.00%30.00%35.00%

40.00%

Bharti Rcom IDEA MTNL

Competitor Analysis

OP Margin Net Margin

Company Sep-07 Sep-08 Sep-072 Sep-083

Bharti 43.00% 38.00% 26.40% 19.30%

Rcom 37.90% 31.60% 23.90% 13.20%

IDEA 32.80% 26.60% 14.10% 6.50%

MTNL 23.70% 22.90% 7.00% 6.80%

Best OP Margins &Net Profit Margins

among Peers

Source: CMIE November 2008



Competitor Market Share – Threat HIGH

LATEST MOVES

FORAY INTO NEW TECHNOLOGY

The next generation 3G services were another area on which BAL decided to focus

so as to retain its dominant position in the Indian mobile telecom services market.

It also planned to start the next generation 3G mobile services as and when GoI

declared its policy and allotted the spectrum. Analysts said that 3G could help BALto increase its revenues in view of its steadily falling ARPU and that 3G could also

be a new growth engine in saturated circles like the big metros. Mittal said,

“Bharti wants to be an early player in 3G and as and when the auction for

spectrum is announced, Bharti will participate in the process.”

Bharti Airtel participated in the 3G spectrum action announced by the GoI in May

2010 and won the highest no. of circles won by any single operator – thirteen. The

cost was however a stupendous Rs. 12,290 crores. The thirteen 3G licenses

bagged by Bharti Airtel cover 59% of India's cellular subscribers and 61% of

revenues — this is the maximum 3G coverage any telecom operator hasmanaged. Data released by sector regulator TRAI reveal that regions where Bharti

has bagged 3G spectrum contributes about 70% of its revenues. Put simply, Bharti

Airtel has protected a big chunk of its 2G footprint. Here’s another way to look at

how well Bharti has defended its fortress — in the nine circles where Bharti has

lost the license, its average revenue per user (ARPU) is 15-20% lower than the

national ARPU. In other words, Bharti has defended its most lucrative markets.



But there’s one glitch — in these nine circles (where Bharti has lost the license),

Bharti is still among the top three. That position may now erode as customers

may switch to rivals who have won 3G spectrum in these circles. Industry

watchers say its 3G bid is equivalent to six months of its revenues in these 13

zones — the lowest in the industry. Moreover, its total bid amount is only 12% of its current market cap, easily the least amongst all listed telecom companies who

were successful in the auctions. “In metro markets, about 10% subscribers

account for about 35-40% of revenues. A large number of them would already

have 3Genabled handsets that will enable incumbents such as Bharti to quickly

transition these subscribers to its 3G network. This will allow for a quick build-up

of traffic on its 3G network and allow Bharti to extract the cost efficiencies of a 3G

network,” research analysts Srinivas Rao and Amyn Pirami at Deutsche Bank said

in a note on Wednesday. Bharti executives point out that large parts of its

networks are already 3G-ready as the telco had begun upgrading its networksover the last 24-months — a step that will enable it to deploy 3G speedily and

with minimum capex.

What strategy can Bharti Airtel take to break-even on 3G?

Bharti Airtel needs to be very careful in the selection of its strategy options as the

stakes are very high now. BAL needs to work with the other ecosystem players to

ensure that the total cost of ownership is as low as possible and that the relevant

content is available to attract users 19



to 3G. Here are some of the actions that can be taken by Bharti Airtel to break-

even faster than what most of the analysts think:

1. Replicate Minute Factory Model: The Bharti Airtel have been innovative in

bringing the costs down in 2G by changing the measurement metrics from ARPU

to margins per minute. They have considered their business as a “Minute Factory”where minutes are sold at a certain price and there is a cost to the minutes. As

long as the realized rate per minute is higher than cost per minute by 30-35%,

they are okay. Their entire effort has been to bring down the cost of minutes and

have looked at network outsourcing, lower tariffs among host of other things.

Even in 3G, Indian Bharti Airtel would need to follow the same “Minute Factory

Model” in their efforts to attract higher number of 3G users. However, this action

is likely to result in lower ARPU which would in turn mean higher 3G users

required to break-even.

2. Indirect bundling of handsets/ Upgrade schemes with handset vendors:Handset bundling in India is not very strong as the ARPU levels are low which

means that the handsets costs cannot be recovered even in two years time. Also,

BAL has focused on keeping the costs low and hence has not indulged in any kind

of handset subsidy. However, this should not prevent them from looking at

innovative ways of indirect handset bundling. They should be willing to offer

network minutes for free in return for tie-ups with handsets companies. BAL

should tie up with handset vendors to upgrade the handsets of its subscribers

who are on the verge of replacing their handsets by proactively targeting

subscribers with over 18 month’s old handsets. Studies have shown that afterupgrading their handsets, the users tend to experiment more with mobile services

resulting in higher ARPU. Handset vendors should also work with BAL to keep the

aspiration levels high as well as keep the 3G handset prices low. Bharti Airtel

should now decide to focus on music & videos and other VAS and the handset

capability needs to be changed accordingly.

3. Focus on Non Voice Devices: Bharti Airtel should aggressively focus on non

voice devices like data cards, net books and other devices needing connectivity.

This would ensure higher revenues and faster break-even. In the coming years,

the popularity of net-books, eBook readers and handheld tablets is bound toincrease and hence the need for connectivity.

4. Ensure fair Revenue share: For the success of 3G, it is important to have the

right content and Value Added Services (VAS) / applications for the users. The

ecosystem would be more vibrant if all the players get a fair revenue share. Fair

revenue share would ensure higher developer interest in developing new



applications. Unlike the other markets, the revenue share in India is heavily

skewed in favor of telcos, which needs to change for quality content to be

developed and mobilized.

Once the users begin to shift to 3G, the 2G network would get decongested and

Bharti Airtel would be able to offer GPRS/EDGE plans on 2G network to theirsubscribers, which is difficult to offer now due to network clogging. Subscribers

should first experience internet and then would demand better speeds. Hence,

GPRS can be a good stepping stone to complete 3G transition. It is therefore

important for the Bharti Airtel to continue to focus on increasing GPRS

penetration. 20

PRESENT OUTLOOK On 9th June, rating agency Standard & Poor's lowered Bharti Airtel's credit rating,

in view of its concerns regarding Zain deal, 3G spectrum and BWA spectrum

funding. S&P lowered Bharti's long-term corporate credit rating to 'BB+' from'BBB-' but said the outlook is stable. ICRA has also assigned a negative outlook to

the long term ratings on 24th June. However, both the rating agencies maintain a

stable outlook on the company from market position perspective.

What has got both the rating agencies worried? One look at the debt burden on

the company and the reason for the concern is clear. The debt funding for Zain is

around $9 billion or Rs 42,000 crores at current exchange rates. Add to that,

funding required for 3G auction is Rs 12,290 crores & for Broadband Wireless

Access (BWA) Spectrum auction is Rs. 3,314 crores; additionally the debt on the

books of BAL ending March is over Rs 1,200 crore. While the acquisition wouldenable Bharti Airtel to benefit by way of diversification into under-penetrated

African markets which present scope for future growth, the company`s ability to

successfully implement its low cost business model in these markets would be

critical for its future profitability. ICRA is also concerned with the heightened

competitive environment in the domestic telecom business at a time when

company`s funding requirements for acquiring third generation (3G) and

broadband wireless access (BWA) spectrum and related capital expenditure are

expected to remain high. The company has acquired 3G licenses in 13 circles for

Rs 122.95 billion and BWA licenses in 4 circles for Rs 33.14 billion. Though in thelong run, 3G and BWA licenses would aid to enhance the data revenues of the

company and provide it with a differentiating tool for retaining and acquiring high

average revenue per user (ARPU) customers however in the short to medium

term it would further impact the financial profile of the company. Bharti Airtel is

committed to deleverage its balance sheet and is planning to raise around Rs 90



billion in its infrastructure subsidiary - Indus Towers - in the next two quarters.

ICRA would closely monitor this development. The other rating sensitivity factors

are ability of the management to integrate Zain`s operations with the Indian

entity, steps taken by the management to augment Zain`s profitability and

rationalize its capital expenditure; initiatives to build up significant 3G subscriberbase in Indian entity and augment its data and value added services revenues.

Notwithstanding the business challenges and increased leverage, the ratings

derive comfort from Bharti Airtel`s integrated telecommunications operations,

pan-India network presence, market leadership position in the domestic mobile

services market, its strong free cash flow from operations and Singapore

Telecommunication’s 30.5% effective ownership in the company, all of which

speak highly about the company.

BHARTI AIRTEL’S INTERNATIONAL BUSINESS EXPANSION STRATERGY

Bharti Airtel's Strategy – Africa

Bharti Airtel announces strategic partnership to drive world classcustomer service across Africa

THE East African region is set to benefit from a major partnershipaimed at driving world class customer service across the Africancontinent.

Bharti Airtel, the owners and current operators of Zain mobilephone services announced her strategic partners in Lagos, Nigeriaon Monday.

Through the African Business Process Outsourcing (BPO) sectorwhich promises to deliver economic growth to many countriesacross the continent, Bharti Airtel selected IBM (NYSE:IBM); TechMahindra and Spanco as partners to drive world class customer

service across 16 African countries. An agreement is expected tobe finalized soon.

Under the agreement; Bharti Airtel, will outsource core customerservice functions like call centres and back office as it preparesfor significant growth in the region. The mobiletelecommunications operator currently has over 40 million



customers across its African operations and is targeting toachieve 100 million by 2013.

The selection of world class partners like IBM, Tech Mahindra andSpanco will enable Bharti Airtel’s mobile customers to enjoy world

class customer service with the partners introducing quality bestpractices based on their experiences of working with internationalorganisations in the telecommunications, banking, finance,insurance and retail sectors.

The widespread adoption of the BPO model by Bharti Airtel acrossits operations will also have tangible benefits for development of the sector in each country, create additional job opportunities anddevelop local talent. The partners will provide services in eachmarket which will sustain and build skills, capabilities andresources

The outsourcing of customer service operations will play a keyrole in making Bharti Airtel competitive in Africa as it focuses onmaking mobile communications affordable and available toeveryone across its 16 markets of operation.

“Our partnership with IBM, Tech Mahindra and Spanco is aimed at

redefining and providing a world class and seamless customerexperience in all 16 countries,” Manoj Kohli, CEO (International)

and Joint Managing Director, Bharti Airtel, said during theceremony.

He said further that, the BPO model has significant benefits forBharti Airtel’s customers in the countries of operation and theireconomies.

“Partnering with world class organisations on such a massivescale therefore, will galvanise the BPO sector in Africa and be acatalyst for growth in the sector,”

“These partnerships will offer career enhancement opportunitiesto our team in this specialist field as they will now get exposureto global best practices and the latest technologies,” he added.

This is the second major partnership announcement from BhartiAirtel on the African subcontinent. In September this year, Bharti



selected IBM to build and manage IT systems to power themobile communications network across 16 African countries.

"IBM's strategic relationship with Bharti Airtel illustrates its focuson emerging markets like Africa," said John Lutz, general

manager, IBM Managed Business Process Services. "IBM'sbusiness process outsourcing unit helps clients manage functionslike customer care so that they are able to channel criticalresources to essential growth activities such as product designand marketing."

According to a Deloitte report for the GSMA, the mobilecommunications industry association, less than 40 percent of Africans has access to a mobile phone. However, demand isgrowing at an average rate of 25 percent annually, and a 10percent rise in mobile penetration could increase gross domesticproduct by 1.2 percent in developing markets.

Vineet Nayyar, Vice Chairman, Tech Mahindra, said: “Practically,there are three major benefits to Bharti Airtel from outsourcingits customer service functions. It can scale quickly to manage itsexpected growth, customers will receive first class service toglobal standards, and each market will benefit from talenttraining and development.

“By seeding the African BPO market with these three world classpartnerships, Bharti Airtel is effectively kick-starting the onshorebusiness process outsourcing sector across Africa.” The threepartners collectively employ over 90,000 people for providingBPO services in more than 100 countries.

Kapil Puri, Chairman & Managing Director, Spanco, said: “BhartiAirtel was the pioneer of adopting the BPO model across all itsareas of operations in India. The experience and success that it

achieved created a whole new sector in the country that is nowregarded as the global centre of excellence for outsourcing.

“Bharti’ s vision is to replicate that success in Africa, not only forthe benefit of its customers, but also to create an entire industryin Africa as a centre of BPO excellence. With its advantages of time zone location, multi-lingual fluency especially in English and



French, operational cost and robust network infrastructure, Africacan grow as a world class off-shoring destination for globalorganisations.”

Currently over 4,000 people are employed in Africa supporting

Bharti Airtel’s customer service operations. Going forward thenumber of people employed in managing Bharti Airtel’s customerservice functions will increase as Bharti Airtel expands its networkand customer base.

Bharti Airtel has operations in Burkina Faso, Chad, CongoBrazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya,Madagascar, Malawi, Niger, Nigeria, Seychelles, Sierra Leone,Tanzania, Uganda and Zambia.

Bharti Airtel Limited is a leading global telecommunicationscompany with operations in 19 countries across Asia and Africa.The company offers mobile voice & data services, fixed line, highspeed broadband, IPTV, DTH, turnkey telecom solutions forenterprises and national & international long distance services tocarriers. Bharti Airtel has been ranked among the six bestperforming technology companies in the world by BusinessWeek .Bharti Airtel had over 188million customers across its operationsat the end of August 2010.

Tech Mahindra is part of the US $7.1 billion Mahindra Group, inpartnership with British Telecommunications plc (BT), the world’sleading communications service provider. Focused primarily onthe telecommunications industry, Tech Mahindra is a leadingglobal systems integrator and business transformation consultingorganization. The company recently expanded its IT portfolio byacquiring the leading global business and information technologyservices company, Mahindra Satyam.

Spanco is in the business of creating technology infrastructure tohelp drive governance efficiency across key sectors likegovernment, power, transport and telecom. Spanco has aformidable presence in the BPO space spread over four continentscatering to India, US/Europe, Middle East and African Markets.Spanco Ltd. is a public listed company and certified to ISO9001:2008 and CMMI level 3.



IBM is the world's largest information technology company. It is aleader in developing computer servers, software, storage devicesand microchips. It also fields a large business consulting division.

The company has operations in more than 60 countries. It has a

major presence in New York with headquarters in Armonk,research facility in Yorktown Heights, and a massive chip-makingfacility in Fishkill. IBM is a world leader in research anddevelopment and number of corporate patents received annually.

In 2009, IBM reported revenues of $95.8 billion, down from$103.6 billion the previous year, and record net income of $13.4billion.

Ogilvy Africa BV creates ‘Team Airtel’ to provide integrated

marketing solutions for Airtel across Africa

Bharti Airtel Limited (“Airtel”) today announced that it has appointed Ogilvy Africa BV (“Ogilvy Africa”) as its marketing services partner for Africa. Thisfollows the completion of Airtel’s acquisition of Zain Group’s mobileoperations in 15 countries across Africa on 8th June 2010.

Ogilvy Africa, part of WPP, the world leader in marketing communicationsservices, has set up a specialist Pan-African business unit, Team Airtel,

which will be exclusively dedicated to Airtel across the continent with itsexisting network of offices, delivering integrated marketing services – advertising, media buying, market research and public relations. TeamAirtel will also include The Brand Union who will be responsible for brandmigration, Millward Brown for market research, Hill & Knowlton & Ogilvy PRfor all public relations across all markets. The appointment continues andextends Ogilvy Africa’s existing relationship with the network, which haspreviously been responsible for planning and media buying for Zain acrossAfrica.

Ogilvy Africa will partner with Airtel to guide its long-term brand buildingacross the continent and will provide overall creative direction and mediaplanning and buying for Airtel’s African businesses and executingcampaigns in each of its markets on the continent.

Mr. Manoj Kholi, CEO of Bharti Airtel International, said “We are delighted



to be partnering Ogilvy Africa in our endeavour to take the Airtel branddeep into the heart of every market we operate in. Given their breadth anddepth to support Airtel right across the African continent, we believe wehave the right partner to successfully take forward our brand strategy.”

Miles Young, global CEO, Ogilvy Group, said, “It is a huge honour for us tosupport Airtel with its ambitious growth plans for Africa. Through theacquisition of Zain’s assets in Africa, Airtel has a very strong platform onwhich to build. Team Airtel’s role will be to bring the Airtel brand to life inevery one of its African markets, and we have brought together a verystrong integrated marketing team which is dedicated to this task. This dealrepresents a further significant step forward for Ogilvy and Scangroup in

Africa.”

Simon Bolton, global CEO, The Brand Union said, "The Brand Union, usingits network across Africa, India and London are proud to have played asignificant role in 'Team Airtel' and now look forward to the opportunity towork with Airtel to create what will undoubtedly become one of the World'sleading brands in the industry."

Tech Mahindra partners Airtel in seven African countries

Tech Mahindra, a leading Indian IToutsourcing company with globalfootprints, has started customer careservices in seven African countries asa partner of telecom giant Bharti Airtel.

"We see Africa as a growingdeveloping continent and opportunitiesreally do exist in Africa," Rahul Sabharwal, Tech Mahindra's vicepresident for Africa said in Accra.

"The continent has become of strategic importance to us because of thegrowth that we see and Tech Mahindra wants to be part of the continent'sdevelopment process," he said.

Sabharwal added that the decision to expand operations in Africa wastaken after the company had partnered leading telecom operatorsincluding MTN and Multilinks in Nigeria over a two-year period.



The countries in which Tech Mahindra will provide customer care servicesfor Bharti Airtel, the telecom giant with operations in 16 African countries,includes the Republic of Congo, Democratic Republic of Congo, Gabon,Ghana, Malawi and Nigeria.

Since February, the company had been operating a contact centre and aback office for Airtel in Ghana.

"Tech Mahindra's entry into the country is likely to put a lot of focus onGhana and this would lead to generating more employment for thepeople," Pushkar Gokhale, Tech Mahindra's country head, told IANS.

"We started with 100 people when we opened, but after six months we

have increased the number to 300," he added.

Earlier this year, in a statement to mark the company's two years ofoperations in Nigeria, Sujit Baksi, president for corporate affairs andbusiness service group, said that Tech Mahindra has recruited over 1,000local employees in Nigeria. "It is our strategy to nurture local talent foreffectively executing our BPO operations," he said.

He said the company had also put into operation a programme to reduceits expatriate headcount over a period of two years in Nigeria in order todevelop the workforce locally to run the operations.

"With its telecom domain expertise and global experience over twodecades, Tech Mahindra is committed to offering the best in the industryservices to telecom operators leading to enhanced experience for the endconsumers in Nigeria and the Africa continent as whole," said KrishnaGopal, vice president, sales and global alliances.

Airtel operates in the following countries:

Country Site Remarks



Bangladesh bd.airtel.com

Airtel Bangladesh

had about

5.1 million

customers at the

end of June 2011.[8]

Burkina Faso africa.airtel.com/burkina

Airtel Burkina Faso

is the dominant

player with

1,433,000

customers

representing 50%

market share.[9]

Chad africa.airtel.com/chad

Airtel Chad is the

no. 1 operator with

69% market

share.[9]

Democratic Republic of the Congo

africa.airtel.com/drc

Airtel is the market

leader with almost5 million customers

at the end of 2010.

Gabon africa.airtel.com/gabon

Airtel Gabon has

829,000 customers

and its market share

stood at 61%.[10]

Ghana africa.airtel.com/ghana

Airtel Ghana had

about 1.76 million

customers at the

end of 2010.[11]

http://www.bd.airtel.com/

http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-7



http://africa.airtel.com/burkina


http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-Zain.com-8



http://africa.airtel.com/chad




http://africa.airtel.com/drc

http://africa.airtel.com/gabon





http://africa.airtel.com/ghana





http://africa.airtel.com/ghana



http://africa.airtel.com/drc


http://africa.airtel.com/chad




http://www.bd.airtel.com/



India airtel.in

Airtel is the market

leader with almost

152.5 million

customers at the

end of 2010.[12]

Kenya africa.airtel.com/kenya

Airtel Kenya is the

second largest

operator and has 4

million

customers.[13]

Madagascar africa.airtel.com/madagascar

Airtel holds second

place in the mobile

telecom market in

Madagascar, has a

39% market share

and over

1.4 million

customers.[9]

Malawi africa.airtel.com/malawi

Airtel Malawi is the

market leader with

a market share of

72%.[9]

Niger africa.airtel.com/niger

Airtel Niger is the

market leader with

a 68% market

share.[9]

Nigeria ng.airtel.com


http://www.airtel.in/





http://africa.airtel.com/kenya





http://africa.airtel.com/madagascar




http://africa.airtel.com/malawi





http://africa.airtel.com/niger





http://www.ng.airtel.com/

http://www.ng.airtel.com/






http://africa.airtel.com/madagascar







Republic of the Congo africa.airtel.com/congob

Airtel Congo is the

market leader with

a 55% market

share.[9]

Rwanda

On 8 September

2011, Airtel

announced that it

had been awarded a

licence by the

Rwanda Utilities

Regulatory Agency

to operate 2G and3G GSM mobile

services in

Rwanda.[14]

Seychelles africa.airtel.com/seychelles

Airtel is the leading

comprehensive

telecommunications

services providers

with over 55%market share of

mobile market in

Seychelles.[15]

Sierra Leone africa.airtel.com/sierra

Sri Lanka airtel.lk

Airtel Lanka

commencedoperations on 12

January 2009. It

had about

1.8 million mobile

customers at the

http://africa.airtel.com/congob








http://africa.airtel.com/seychelles





http://africa.airtel.com/sierra


http://www.airtel.lk/











end of 2010.[16]

Tanzania africa.airtel.com/tanzania

Airtel Tanzania is

the market leader

with a 38% market

share.[9]

Uganda africa.airtel.com/uganda

Airtel Uganda

stands as the no. 2

operator with a

market share of

38%.[9]

Zambia africa.airtel.com/zambia

Channel Islands : Jersey

and Guernsey†

airtel-vodafone.je

Airtel operates in

the Channel Islands

under the brand

name Airtel-

Vodafone through

an agreement withVodafone.

ECONOMICS ANALYSIS

ACQUISITION AND MERGERS

MTN

In May 2008, it emerged that Bharti Airtel was exploring the possibility of

buying the MTN GROUP, a South Africa-based telecommunicationscompany with coverage in 21 countries in Africa and the Middle East. The

FINANCIAL TIMES reported that Bharti was considering offering

US$45 billion for a 100% stake in MTN, which would be the largest

overseas acquisition ever by an Indian firm. However, both sides

emphasize the tentative nature of the talks, while THE ECONOMIST




http://africa.airtel.com/tanzania




http://africa.airtel.com/uganda




http://africa.airtel.com/zambia

http://en.wikipedia.org/wiki/Channel_Islands


http://www.airtel-vodafone.je/

http://www.airtel-vodafone.je/


http://africa.airtel.com/zambia


http://africa.airtel.com/uganda


http://africa.airtel.com/tanzania




magazine noted, "If anything, Bharti would be marrying ," as MTN has more

subscribers, higher revenues and broader geographic coverage. However,

the talks fell apart as MTN group tried to reverse the negotiations by

making Bharti almost a subsidiary of the new company.

In May 2009, Bharti Airtel again confirmed that it is in Talks with MTN and

companies have now agreed discuss the potential transaction exclusively

by 31 July 2009. Bharti Airtel said in a statement "Bharti Airtel Ltd is

pleased to announce that it has renewed its effort for a significant

partnership with MTN Group".

Talks eventually ended without agreement, due to the South African

government opposition.

Zain

In March 2010, Bharti struck a deal to buy the Kuwait firm's mobile

operations in 15 African countries, in India's second biggest overseas

acquisition after Tata Steel's $13 billion buy of Corus in 2007. Bharti Airtel

completed its $9 billion acquisition of African operations from Kuwait's Zain,

making the firm the world's No. 5 wireless carrier by subscribers.Airtel has

reported that its revenues for the fourth quarter of 2010 grew by 53% to

US$3.2 billion compared to the previous year, newly acquired Zain Africa

division contributed US$911 million to the total.However, net profits

dropped by 41% from US$470 million last year to US$291 million this yeardue to a US$188 million increase in radio spectrum charges in India and an

increase of US$106 million in debt interest.

Telecom Seychelles

On August 11, 2010, Bharti Airtel announced that it would acquire 100%

stake in Telecom Seychelles for US$62 million taking its global presence to

19 countries. Telecom Seychelles began operations in 1998 and operates

3G, Fixed Line, ship to shore services satellite telephony, among value

added services like VSAT and Gateways for International Traffic across theSeychelles under the Airtel brand. The company has over 57% share of the

mobile market of Seychelles. Airtel announced plans to invest US$10

million in its fixed and mobile telecoms network in the Seychelles over three

years , whilst also participating in the Seychelles East Africa submarine

cable (SEAS) project. The US$34 million SEAS project is aimed at

http://en.wikipedia.org/w/index.php?title=Telecom_Seychelles&action=edit&redlink=1

http://en.wikipedia.org/wiki/Seychelles




http://en.wikipedia.org/w/index.php?title=Telecom_Seychelles&action=edit&redlink=1



improving the Seychelles’ global connectivity by building a 2,000 km

undersea high speed link to Dar es Salaam in Tanzania.

BSNL Added 3.0 Million Users & has a Total of 78.1 Million Users

Vodafone Added 3.12 Million Users & has a Total of 121.16 Million Users

IDEA Added 2.8 Million Users & has a Total of 78.8 Million Users

Aircel has Added 1.2 Million Users & has a Total of 48.7 Million Users

Loop Added 19,250 & has a Total of 3.0 Million Users

MTNL Added 37,110 & has a Total of 5.09 Million Users

S Tel Added 2,01,396 & has a Total of 2.06 Million Users

Uninor Added 2.44 Million Users Total of 16.19 Million Users

Videocon Added 1.12 Million Users & has a Total of 6.74 Million Users

78.1

121.1678.8

48.7

3

5.09 2.06

16.19

6.74

Sales

BSNL

vodafone

Idea

AIRCEL

loop

Mtnl

S Tel

Unisor

Videocon



OVERALL RANKING FOR AIRTEL ?

RANK Retailers

1 2

2 12

3 16

4 6

5 4

Interpretation- This data shows that the overall performance of AIRCEL in

retailers is good with 40% respondent

overall ranking of Aircel

1 5%

2

0%

3 40%

4 15%

5 10%

1

2

3

4

5



COMPETITION OVERVIEW

Major Players

There are three types of players in telecom services:

• State owned companies (BSNL and MTNL)

• Private Indian owned companies (Reliance Infocomm, Tata Teleservices,)

• Foreign invested companies (Hutchison-Essar, Bharti Tele-Ventures, Escotel,

Idea

Cellular, BPL Mobile, Spice Communications)

MERGERS & ACQUISITIONS



CHALLENGES AND OPPORTUNITIES

4.1 Opportunities

The telecom sector has been one of the fastest growing sectors in the Indian

economy in past 4 years. This has been witnessed due to strong competition

that has brought down tariffs as well as simplification of policy environment

that has promoted healthy competition among various players..

The mobile sector alone has been growing rapidly and has emerged as the

fastest growing market in the whole worlds. Currently of a size nearing 70

million (GSM and CDMA), this sector is expected to reach a size of nearly 200

million subscribers by financial year 2008.

The government has eased the rules regarding inter circle and intra circle

mergers. This has led to a slew of mergers and acquisitions in the recent past.

Also as the sector is moving closer to maturity, further consolidation is a reality

and this will lead to the survival of more profitable players in this segment

In order to further promote the use of Internet in the country the government is

taking proactive steps to develop this sector with the help of the various players

in this segment.

For this purpose, the use of broadband technology is being mooted and this will

go a long way in improving the productivity of the Indian economy as well as

turn out to be the next big opportunity for telecom companies after the mobile

communications segment Non-voice services and VAS are the gold mines. The

big takeoff is expected with the rollout of 3G services in early 2007, once the

spectrum issues are sorted out.

Internet users base fast reaching near the English speaking population base.

Local language and content required for further growth

Infrastructure equipment cost is down to a fraction of what prevailed just a few

years ago. Operators can plan better expansion plan now Increased viability for

the operators to expand to semi-urban and rural markets, hence, accelerate

growth further



It’s not without reason that India is tipped to be the world’s third -larges

economy by 2050!

No wonder if it happens much earlier Investors can look to capture the gains of

the Indian telecom boom and diversify their operations outside developedeconomies that are marked by saturated telecom markets and lower GDP

growth rates.

At a time when global telecom majors are struggling to cope with their losses

and the rollout of 3G networks, which has been a non-starter for close to a year

now; India, with its telecom success story, represents an attractive and lucrative

destinations for investment.

QAM

Aircel, the GSM mobile operator’s subscriber base has now crossed 50 million subscribers

Aircel added 1.2 million subscribers in November 2010 and its Total subscriber base at the end

of November 2010 was 48.7 Millio

Research objective-:

To analyze the AIRCEL market in gzd & collecting retailers feedback on AIRCEL.

Research design-:

The method of data collection is doing survey from telecom retailers of Noida by a

questionnaire

It is a statistical study required for quick results. The research environment was the field setting

as the method of study was analyzing the data collected by conducting a survey

Sampling process-:

Target market-: The target population was the telecom retailers of Noida region which is

choose sectorwise . Type of the sample is the Random sample is taken for the collection of the

primary data .

http://www.mobileteleco.com/2010/12/gsm-mobile-november-2010-subscriber.html




Sampling procedure-:

Sample size- 40

Instrumental used- :

Collection of database-:

Primary data-: Data is collected through survey of retail stores of telecom by filling a

questionnaire.

Secondry data-:

Through Net

Through magazines

Through news paper, we are looking at a portfolio of over 60,000 within the next two years. No

player with less than 60,000 will be able to survive in the market.” He added, “You need such

numbers to cover about 70% of the country's geographical area.”

Cellular service provider aircel is betting big on its information technology, as the company

treads into new telecom circles and plans to double its subscriber base to 30 million by end of this year.

Ashwani Mishra

Chennai-based mobile services provider Aircel is eagerly awaiting the start of the second

season of the Indian Premier League (IPL) which begins this April. Not only because it is

the lead sponsor for the Chennai Super Kings but also because it would be the time when

the telecom provider would start opera

Questionaire

1) How would you rate following operator in network?

a) Aircel 1______2 ______3______4______5______



b) Airtel 1______2_______3______4______5______

c) Vodafone 1______2_______3______4______5______

d) Reliance 1______2_______3______4______5_______

d) Idea 1______2______3_______4______5______

2) How would you rate following operator in trade communication (dealer scheme

etc)?

a) Aircel 1______2 ______3______4______5______

b) Airtel 1______2_______3______4______5______

c) Vodafone 1______2_______3______4______5______

d) Reliance 1______2_______3______4______5_______

d) Idea 1______2______3_______4______5______

3) How many customer queries you get on daily basis for Aircel?a) 1-5 b) 5-10 c) 10-15 d) 15-20 e) more than 20

4) How would you rate following operator in claim settlement?



a) Aircel 1______2 ______3______4______5______

b) Airtel 1______2_______3______4______5______

c) Vodafone 1______2_______3______4______5______

d) Reliance 1______2_______3______4______5_______

d) Idea 1______2______3_______4______5______

5) How would you rate Aircel in distribution service (FOS visit etc)

a) 1 b) 2 c) 3 d) 4 e) 5

6) How would you rate following operator for customers/dealers problem resolution?

a) Aircel 1______2 ______3______4______5______

b) Airtel 1______2_______3______4______5______

c) Vodafone 1______2_______3______4______5______

d) Reliance 1______2_______3______4______5______

d) Idea 1______2______3_______4______5_____



7) No. of sim connection sold last one month?

a) Aircel __________

b) Vodafone __________

c) Airtel __________

d) Reliance __________

e) Idea __________

8) What is the average activation time taken by distributor to activate a new

customer?a. Aircel __________

b. Vodafone __________

c. Airtel __________

d. Reliance __________

e. Idea __________

9) Any suggestion you would like to give for Aircel?

______________________________________________________________________________

__________________________________________________________________

10) Give overall ranking for Aircel?

a)- 1 b)- 2 c)- 3 d)- 4 e)- 5



IN RANKING_ _ _ _ _ _

1 For ______ Poor

2 For ______ Average

3 For ______ Good

4 For______ Very good

5 For ______ Excellent

NETWORK

Sample size -: 40 retailers

Interpretation-: This data shows that Airtel is having first rank in network as it has

rating of 4.93 on the rating scale of 5, and Aircel has got the 4 position with a rating of

3.79 on the rating scale of 5.



As it’s a new company so network has been a big problem but still the company is tryingits best to solve the problem. The tower are been installed at a rapid speed.

As compared to its competitors aircel stand’s 4th in the network (airtel, voda, idea,

reliance gsm).

Its not going to take long when the network of aircel limited will be giving the

competition to the No. 1 network in Delhi & NCR i.e. airtel. The reason being that itsabout to install 1200 tower in Delhi & NCR within 3 months.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

AIRCEL VODA AIRTEL REL IDEA

3.79

4.714.93

3.16

3.81



How would you rate following operator in trade

communication (dealer scheme etc)?

TRADE COMMUNICATION

Sample size -: 40 retailers

Interpretation-: This data shows that Reliance GSM is having first rank in tradecommunication as it has rating of 3.98 on the rating scale of 5, and Aircel has got the 5

position with a rating of 3.61 on the rating scale of 5.

4

AIRCEL VODA AIRTEL REL IDEA

3.61

3.8

3.72

3.98

3.67



Retailers schemes are not lucrative from new brand prospective

Retailers want some more claim schemes like Reliance GSM,Airtel

If some good scheme provided to them they can give good business

No. of sim connection sold last one month?

AIRCEL 314

VODAFONE 439

AIRTEL 586

RELIANCE 502

IDEA 251

Sim sold in last month

aircel

15%

vodafone

21%

airtel

28%

reliance

24%

idea

12%

aircel

vodafone

airtel

reliance

idea



RECOMMENDATIONS

1. There lies a good opportunity to work with retailers or a mediator between Aircel

& retailers and find the retailers thinking about these operator

2. Airtel is the market leader in telecom sector and Aircel is having 4th position in

these operator..

3. Respondents feel that the areas where Aircel should improve are Network and

claim settlement.

4. Aircel should improve its network as network coverage has emerged as the prime

problem after data analysis .

5. Sign board of Aircel should be distributed to each retailers

6. FOS visit should be on daily basis

7. Salesmen should be trained regarding offers & scheme

8. Margin to dealer should be increased in comparison to other telecom operator

9. SIM activation time should be reduced

10. E-TOP UP no . should be provided to those retailers who are interesting to

selling Aircel sim.

11. As per the data analysis the glow sign board are not properly distributed. It’s very

important for any company to do its branding properly because it might just make

the retailers totally not interested in selling the product.

Company should also order the distributors to keep a check that the posters are properly

distributed in the market because it is seen that pop are not distributed properly even though the

company is providing distributors with enough pop.

Aircel, the GSM mobile operator’s subscriber base has now crossed 50 million subscribers



Aircel added 1.2 million subscribers in November 2010 and its Total subscriber base at the end

of November 2010 was 48.7 Millio



Airtel Teerm Paper

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