A

FINAL PROJECT REPORT

ON

“VALUE ADDED SERVICES PENETRATION”

A report submitted to Punjab Technical University, JalandharAs a part fulfillment of

MBA (Master of Business Administration).

Submitted to: - Submitted by:- Director Academics Abhishek Kumar Delhi business school Roll. No. : 910849001 New Delhi Batch : Winter (09-11)

Semester : 4th Univ : Punjab Technical University

Internal guide: - Ms. Kiran Malhotra

Delhi business school New Delhi

B-II/M.C.I.E.,Mathura Road, New DelhiWebsite: - www.dbs.edu.in

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PREFACE

The aim of management course is not to produce readymade managers but

rather to develop a habit of thinking rationally based upon the scientific

principles of management. The post contents and theory of management

endeavors to the scientific in nature while its application and presentation

in the real business would remain a target to be developed by the

individual.

The purpose of introducing the student of management to the business

world is to help the student to correlate and integrate the theory practice.

The practical training too is essential part of the management course.

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STUDENT DECLARATION

I hereby declare that the project report entitled

“VALUE ADDED SERVICES PENETRATION” At “Dishnet

Wireless Limited ” Patna Submitted in partial fulfillment of the

requirements for the degree of “MBA” to Punjab Technical University,

Jalandhar , India, is my original work and not submitted for the award of

any other degree, diploma ,fellowship, or any other similar little or prizes.

Place: New Delhi [Abhishek Kumar]

Date: Roll. NO:910849001

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ACKNOWLEDGEMT

It is with real pleasure that, I record my indebtedness to my

academic Guide, Ms. Kiran Malhotra for her counsel and

guidance during the preparation of this project.

I would also like to extend a special thanks to the Customers

who gave me their valuable time and suggestions, and

Employees of AIRCEL who gave their time out from their busy

schedule and shared their valuable thoughts with me and also

provide all necessary information which are required in this

project.

I wish to record my sincere and special thanks to my

Office members and my Friends how helped me, support me and

cooperated with me during the project.

Place: New Delhi Name: Abhishek Kumar

Date: 27th Dec 2010 ROll No.910849001

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TABLE OF CONTENTS

1. INTRODUCTION

Introduction

Executive Summary

The Role of VAS

The future of VAS in India

About telecom sector in India.

Basic structure of Indian telecom.

2. Research Methodology2.1 Methodology2.2 Research design2.3 Source of data2.4 Sampling2.5 Data collection tolls2.6 Limitation of the Study

3. Overview of the Indian Telecommunication industry 4. Organization Profile

4.1 Company Profile

4.2 Our Presence

4.3 Telecom Circles

4.4 Our Branch Offices

4.5 Aircel Product

4.6 Value added services

4.7 Awards & achievements

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4.8 Future Ahead

5. Data analysis

6. Findings

7. Recommendation

INTRODUCTION

Mobile phones today have moved beyond their fundamental role of

communications and have graduated to become an extension of the

persona of the user. We are witnessing an era when users buy mobile

phones not just to be in touch, but to expert, Thus, there exists a vast world

beyond voice that needs to be explored and tapped and the entire cellular

industry is heading towards it to provide innovative options to their

customers. Spoilt by choice, the mobile phone subscribers are beginning to

choose their operators on the basis of the value added services they offer.

ess themselves, their attitude, feelings & interests.

Customers continuously want more from their phone. They use their

cellular phones to play games, read news headlines, surf the Internet, keep

a tab on astrology, and listen to music, make others listen to their music, or

check their bank balance. The increased importance of VAS has also made

content developers burn the midnight oil to come up with better and newer

concepts and services.

To understand that where this industry is at present and where it is headed,

IAMAI and IMRB International have jointly prepared the Mobile VAS

Report to focus back stage and uncover the trends in the cellular industry,

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current market status, value chain, competition, market dynamics &

expected roadblocks.

This is the first publicly available study on Mobile VAS in India and the

insights provided herein can be used by both the mobile operators and the

content providers to better address the needs of their customers. A timely

and strategic action would help nurture the mobile VAS market in India.

EXECUTIVE SUMMARY

Need for the study

The mobile subscriber base is growing at a scorching pace in India, India is

now the 5th country in the world to have crossed the 100 million mark in

subscriber base and has in the last two months become the fastest growing

mobile market in the world.

As average revenue per user decrease from voice drops, and voice becomes

commoditized, Telecoms are increasingly looking at data as an additional

revenue stream. The end users have also embraced VAS and it contributes

between 5-10% of the revenues of different Telecoms. Thus Mobile VAS

has become an important element in the growth of mobile telephony in

India. Yet it is also equally true that there is little clarity on business issues

and growth seems to be driven by more by inherent market momentum

than a concentrated effort on the part of the stakeholders; differences exist

even on basic issues like definition for Mobile VAS.

Thus an understanding into the VAS space is needed to help stakeholders

give a direction to this wave of growth

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The Road Ahead

We believe that while the mobile VAS space is all set to grow rapidly, all

the stakeholders will have to work together and create a self-sustaining

ecosystem for this growth to sustain.

Similarly it would take a joint effort of all concerned to address the

significant roadblocks and thus unlock the true potential of Mobile VAS in

India.

The key addressable barriers would be to ensure greater rationality in

revenue sharing between Telcos & content developers; ensure copyright

protection, develop higher quality content which goes beyond Bollywood

and cricket and also to have a focused WAP strategy.

We also believe that while pure entertainment service would continue to

appeal to the younger consumers, the overall focus for Mobile VAS would

shift to utility based services like location information & mobile

transactions; as security concerns are addressed mobile transactions will

also have a good potential in India.

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THE ROLE OF VAS

This is where the role of VAS (Value Added Services) comes into focus.

Operators are facing cutthroat competition and with the call rates in India

being one of the cheapest in the world, the margins are very low. Therefore

they are looking at VAS as the next wave for growth. It has become the

flywheel of telecom growth and a large chunk of revenue for operators is

likely to come from VAS services in the years to come. But it is not only

effort from operators which is driving the growth of VAS, there are other

factors contributing to it.

The growth of VAS in India has been helped both by macro level

environmental factors and specific market initiatives to develop this

category.

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THE FUTURE OF VAS IN INDIA

In India, VAS will see a lot of structural changes, consolidation and

emergence of cutting edge services:

Mobile operators will lose prominence in the value chain as the

market for Content Aggregators will consolidate and with their better

bargaining power, this will ensure a revenue shift from Operators to

Aggregators in the value chain. The VAS market will reflect revenue

sharing arrangement in markets like China more closely.

In VAS content, we will see revenue from entertainment VAS come

down from the levels. End users want control and interactivity and

therefore the applications to look out for in future will be user generated

content and mCommerce. However mobile gaming will continue to grow

and will contribute a higher share to the VAS pie.

Regional content is giving a significant boost to the content market

especially in the entertainment category. Regional content is getting

popular both in voice and non- voice services. Players have anticipated the

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trend and this is leading to regional content development. With increasing

mobility penetration into the heartland of India, significant VAS revenues

will be driven by regional content from B & C class towns.

Internet on mobile will become a more feasible option as leading

players in the internet content space especially configure their sites for

access through mobiles; this would be further strengthened by the new

trend of mobile domain being set up. Thus GPRS usage should pick up

significantly

THE PRESENT STUDY

Market for the Project

The activity has been carried out under AIRCEL. I carried out my project

within PATNA of BIHAR state where target segments are working people

and new generation boys and girls.

Significance/Needs of the Project

This project was undertaken as a part of organization learning for MBA

students to understand assigned in order to analyze the, market scenario of

AIRCEL with special reference to PATNA city. This project also helps

Aircel in taking their corporate decision. This project would also help

AIRCEL to recognize the main strength and weaknesses and would also

help to increase its customer’s base by adopting a better marketing

strategy.

The findings and recommendation of the project would prove to be very

vital from the point of AIRCEL and would help them to increase their sales

and better role in their services.

Scope of the Project

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Through the project work AIRCEL can take a better knowledge about the

market scenario regarding people perception and preference towards

communication sector as compared to other brands.

OBJECTIVE OF THE PROJECT

1. To Study The Value Added Service of Aircel.

2. To Find Out the Better VAS Services Of Aircel’s Customer.

3. To find out the customer Satisfaction Of Aircel About the VAS.

4. To Know the Customer Demand Of VAS services

5. To Enhance Our Market exposure.

6. To find out the Brand Value of AIRCEL

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METHODOLOGY

“Marketing research is the systematic and objective identification,

collection analysis, dissemination and use of information for the purpose of

improving decision making related to the identification and solution of

problem”.

During the course of conducting the study the information were

gathered mainly through the primary source.

Conducting field survey by taking to the retailer who is using mobile

phone on the methodology used in the survey was personal observation

and interview with retailer with the help of questionnaire.

RESEARCH DESIGN

Research design is a framework of blueprint for conducting the marketing

research project. It deals the procedure necessary for obtaining the

information needed to structure and / or solve the marketing research

problem.

The two types of research are:-

1. Exploratory

2. Conclusive

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The objective of exploratory research is to provide insight, into and

understanding of the problem conforming the researcher.

The objective of conclusive research is to test specific hypothesis and

examine specific relationship.

Source of data:-Data requires for the research work can be making available from different

sources, they could be classified in two groups:-

a) Primary source:- includes living person, in my survey primary

sources constituted of the retailer who are selling telecom product

and FMCG retail outlet.

b) Secondary data: - Includes already collected data whether

published or unpublished, such as officially data base, magazines

and journals.

SAMPLINGWhen a small group is taken as the reprehensive of the whole, the study is

called a sampling study. Sampling allows us to concentrate our attention

upon a relatively smaller number of items and hence to devote more

energy ensure that the information collected from them is accurate. When

the whole area or Population person is contacted the method is known as

Census method. In my survey it was census method because I was assigned

a job to do survey in East Patna Zone and take to feedback of all those

retails who are selling RCV’s, EASY RECHARGE, SIM etc.

DATA COLLECTION TOOLS

The collection of data is through a

(A). Questionnaire

(B). Observation

Questionnaire:-

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o It is a piece of paper with a set of questions related to the

purpose Research, which is presented to the respondent. The

questionnaire used in my survey had close-end question.

O bservation Methods:-

o When we look at the phenomenon with some objective it is

called Observation. It is the important technique for data

collection. This Method was also accompanying survey, to

know the exact position or Responses of the respondents.

LIMITATION OF THE STUDY

The scope of the study has been kept restricted due to time and

money Constraints.

Some question regarding the other company depends on the mood of

the respondent and at the time during which they were interviewed

The biased view of the respondents.

Some of the respondents were not aware about the facts.

Though every possible attempt was made to ensure correct results

but there may be changed of sampling error.

There is a chance of human error.

This report is based on small area of Patna and is true for Patna

region only, so this report cannot be generalized.

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The result is true for the given time period and it may vary with

time.

INDIAN TELECOMMUNICATION INDUSTRY

TELECOMMUNICATION

The word telecommunication was adapted from the French word

telecommunication. It is a compound of the Greek prefix tale- meaning

'far off', and the Latin communicate, meaning 'to share'.

Telecommunication is the transmission of signals over a distance for the

purpose of communication. In modern times, this process almost always

involves the sending of electromagnetic waves by electronic transmitters

but in earlier years it may have involved the use of smoke signals, drums

or semaphore. Today, telecommunication is widespread and devices that

assist the process, such as the television, radio and telephone, are common

in many parts of the world. There is also a vast array of networks that

connect these devices, including computer networks, public telephone

networks, radio networks and television networks. Computer

communication across the Internet, such as e-mail and instant messaging,

is just one of many examples of telecommunication.

The basic elements of a telecommunication system are:

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a transmitter that takes information and converts it to a signal for

transmission

a transmission medium over which the signal is transmitted

a receiver that receives and converts the signal back into usable

information

Often telecommunication systems are two-way and devices act as both a

transmitter and receiver or transceiver. For example, a mobile phone is a

transceiver. Telecommunication over a phone line is called point-to-point

communication because it is between one transmitter and one receiver,

telecommunication through radio broadcasts is called broadcast

communication because it is between one powerful transmitter and

numerous receivers.

A collection of transmitters, receivers or transceivers that communicate

with each other is known as a network. Digital networks may consist of

one or more routers that route data to the correct user. An analogue

network may consist of one or more switches that establish a connection

between two or more users. For both types of network, a repeater may be

necessary to amplify or recreate the signal when it is being transmitted

over long distances. This is to combat attenuation that can render the signal

indistinguishable from noise.

The shaping of a signal to convey information is known as modulation.

Modulation is a key concept in telecommunications and is frequently used

to impose the information of one signal on another. Modulation is used to

represent a digital message as an analogue waveform. This is known as

keying and several keying techniques exist — these include phase-shift

keying, frequency-shift keying, amplitude-shift keying and minimum-shift

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keying. Bluetooth, for example, uses phase-shift keying for exchanges

between devices.

HISTORY OF GSM

The Group Special Mobile (GSM) was created in 1982 by European

Conference of postal and Telecommunications Administrations (CEPT)

with the objective of developing a standard for a mobile telephone system

that could be used across Europe. In 1989, GSM responsibility was

transferred to the European Telecommunications Standards Institute

(ETSI).The phase I of the GSM specifications were published in 1990. The

first GSM network was launched in 1991 by Radiolinja in Finland. By the

end of 1993, over a million subscribers were using GSM phone networks

The growth of cellular telephone systems started in the early 1980s,

particularly in being operated by 70 carriers across 48 countries.

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The Global System for Mobile communications (GSM: originally from

Group Special Mobile) is the most popular standard for mobile phones in

the world. GSM service is used by over 2 billion people across more than

212 countries and territories. The ubiquity of the GSM standard makes

international roaming very common between mobile phone operators,

enabling subscribers to use their phones in many parts of the world.

From the point of view of the consumers, the key advantage of GSM

systems has been higher digital voice quality and low cost alternatives to

making calls such as the Short Message Service (SMS).

The advantage for network operators has been the ability to deploy

equipment from different vendors because the open standard allows easy

inter-operability. Like other cellular standards GSM allows network

operators to offer roaming services which mean subscribers can use their

phones all over the world.

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GSM is a cellular network, which means that mobile phones connect to it

by searching for cells in the immediate vicinity. GSM networks operate in

four different frequency ranges. Most GSM networks operate in the 900

MHz or 1800 MHz bands. Some countries in the Americas (including the

United States and Canada) use the 850 MHz and 1900 MHz bands because

the 900 and 1800 MHz frequency bands were already allocated.

The GSM logo is used to identify compatible handsets

and equipment.

There are four different cell sizes in a GSM network

macro

Micro

Pico

Umbrella cells.

The coverage area of each cell varies according to the implementation

environment. Macro cells can be regarded as cells where the base station

antenna is installed on a mast or a building above average roof top level.

Micro cells are cells whose antenna height is under average roof top level;

they are typically used in urban areas. Pico cells are small cells whose

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diameter is a few dozen meters; they are mainly used indoors. Umbrella

cells are used to cover shadowed regions of smaller cells and fill in gaps in

coverage between those cells.

The network behind the GSM system seen by the customer is large and

complicated in order to provide all of the services which are required. It is

divided into a number of sections and these are each covered in separate

articles.

The Base Station Subsystem (the base stations and their controllers).

The Network and Switching Subsystem (the part of the network

most similar to a fixed network). This is sometimes also just called

the core network.

The GPRS Core Network (the optional part which allows packet

based Internet connections).

All of the elements in the system combine to produce many GSM services

such as voice calls and SMS

SUBSCRIBER IDENTITY MODULE (SIM)

One of the key features of GSM is the Subscriber Identity Module (SIM),

commonly known as a SIM card. The SIM is a detachable smart card

containing the user's subscription information and phonebook. This allows

the user to retain his or her information after switching handsets.

Alternatively, the user can also change operators while retaining the

handset simply by changing the SIM. Some operators will block this by

allowing the phone to use only a single SIM, or only a SIM issued by

them; this practice is known as SIM locking, and is illegal in some

countries.

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In the United States, Canada, Europe and Australia, many operators lock

the mobiles they sell. This is done because the price of the mobile phone is

typically subsidized with revenue from subscriptions and operators want to

try to avoid subsidizing competitor's mobiles. A subscriber can usually

contact the provider to remove the lock for a fee, utilize private services to

remove the lock, or make use of ample software and websites available on

the Internet to unlock the handset themselves

Some providers will unlock the phone for free if the customer has held an

account for a certain period. Third party unlocking services exist that are

often quicker and lower cost than that of the operator. In most countries

removing the lock is legal. In countries like India, Pakistan, Indonesia,

Belgium, etc., all phones are sold unlocked. However, in Belgium, it is

unlawful for operators there to offer any form of subsidy on the phone's

price. This was also the case in Finland until April 1, 2006, when selling

subsidized combinations of handsets and accounts became legal though

operators have to unlock phone free of charge after a certain period (at

most 24 months).

CHANGES WITH THE CHANGING TECHNOLOGY

Technological changes in telecommunications and computers have

radically changed the business scenario. In turn, the new demands of

business have spurred many telecom-based technological innovations. In

order to exploit these innovations for competing in global markets, the

business community the world over has been putting pressure on

governments to revise the policy, regulation, and structure of the telecom

sector. Several

Countries across the world have responded by restructuring the state-

controlled telecom service provider, increasing private participation, and

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deregulating service provision. The emergent organizations have attempted

to be more responsive to the business needs and have evolved mechanisms

to remain competitive even under tremendous pressures.

Over the past several years, developing countries have also recognized the

important role a responsive, business-oriented, and technologically

advanced telecom sector plays in the growth of the economy. Many

developing countries now see the constraints of estate monopoly in

telecom as standing in the way of a response to the twin challenges of

spurring internal growth and competing in an increasingly global economy.

Past experience of reform across many countries suggests that the

fundamental issue that must be addressed in telecom reform is effective

separation of the basic functions of policy making, operational

management, and regulation (ITU Report 1989). The

Second level of consideration is access to capital and human resources.

The third level of concern is the introduction of competition for efficiency.

Competitions perhaps more important than right ownership, if ever there

was anything like it, in bringing about efficiency.

The Indian telecom sector was wholly under government ownership until

1984, and was characterized by underinvestment, outdated equipment, and

growth well below the potential of the market. In the mid-1980s, telecom

was included by the government as a part of the so-called .Technology

Missions a set of dedicated, welfare-oriented, and well focused

programmes then implemented at national level.

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The DOT and the Precursor to Reform

In one of the earliest steps towards reforms and boosting indigenization

efforts, the government set up the Centre for Development of Telematics

(C-DOT) in 1984 with the objective of initiating and managing research in

the switching and transmission segments. Subsequently, the government

separated the Department of Post and Telegraph in 1985 by setting up the

Department of Post and the Department of Telecommunications.

In 1986 two new public sector corporations. The Mahanagar Telephone

Nigam Limited (MTNL) and the Bharat Sanchar Nigam

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Limited (BSNL).were set up under the Department of Telecommunications

(Dot).

The MTNL, which was carved out of the Dot, took over the operation,

maintenance, and development of telecom services in Bombay and New

Delhi. The BSNL was set up to plan, operate, develop, and accelerate

international telecom services in India. The government created the

corporate organizations in order to allows decision making autonomy and

flexibility and facilitates public borrowings that would not have been

possible under a government framework. However, policy formulation,

regulation, and several key decision areas remained with the DoT.

A new organization, the Telecom Commission, was created in 1989 with a

wide range of executive, administrative, and financial powers to formulate

and regulate policy and prepare the budget for the DoT. The Telecom

Commission had four full-time members’ managing technology,

production, services, and finance and four part-time members representing

the Planning Commission, Department of Finance, Department of Industry,

and Department of Electronics. The creation of the MTNL, its subsequent

operations, and the relationship of the personnel employed in the MTNL to

their counterparts in the Dot raised questions about the organizational

structure most suited for this sector. Therefore, in 1991, upon government

initiative, the high-powered Athreya Committee submitted a report on the

appropriate organizational structures for this sector.

The report recommended:

Placing both policy and regulatory mechanisms under the Telecom

Commission.

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Breaking up of the DoT into zonal corporations under the

government.

Setting up of a corporation, initially in the public sector, to handle

the long-distance network.

Allowing value-added services (VASs) to be provided by the private

sector.

Indicating general liberalization in production of equipment

giving autonomy to R&D and training institutions.

Subsequently, other studies for reforms had been commissioned, but

in the absence of public debate, and employee and union concerns

regarding the consequences of implementation.

The government did not formally adopted any report.. Since 1997,

there were several statements in the media by key decision makers

and the Communications Minister calling for corporatization of the

DoT. However, there was very little public information or debate

regarding the sequence of decisions leading to corporatization or the

form of corporate structure.

Since 1995, there was increasing pressure from international

organizations such as the WTO to review the monopoly status of the

BSNL and the Dot’s monopoly in international long-distance

communication respectively. The government had undertaken to

Review the monopoly status of the BSNL in 2004 and the possibility

of opening of long distance in 1999.

The BSNL continued to have a monopoly over international telecom

and broadcast transmission. It had planned to enter the long-distance

market but the DoT hampered its plans. In 1999, the government

created the Department of Telecom Services (DTS), who’s Secretary

was appointed from the Indian Telecom Services (ITS) cadre, and

the DoT from the erstwhile the DoT, who’s Secretary was appointed

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from the Indian Administrative Services (IAS). This was done

ostensibly to separate the service provision component (DTS) from

that of policy making (DoT). In reality this was to accommodate the

conflict caused by the government’s decision to appoint a Secretary

to the department from the IAS, as DoT employees wanted the

Secretary to be from the ITS. When the DTS Secretary retired, the

government appointed an IAS officer in his place, which again led to

agitation and further bifurcation of the DTS into the Department of

Telecom Operations (DTO) and DTS. The DTS was to be headed by

an IAS officer responsible for the MTNL, BSNL,

Telecommunications Corporation of India Limited (TCIL), Indian

Telephone Industries Ltd. (ITI), and Hindustan Teleprinters Limited

(HTL) as well as for formulating the strategy for corporatization.

The DTO was responsible for managing the telecom network.

The government’s view has been that a person from outside the ITS

cadre would be better able to oversee the corporatization of

the DoT since in the past senior management of the erstwhile DoT,

mostly from the ITS, had resisted any kind of change

Although an outsider Secretary was ostensibly to facilitate

corporatization, it is not clear how, without the requisite mandate

from the employees and especially the senior managers, he/she

would be able to lead such a major task. This is not to say that the

ITS cadre was better equipped to handle this task. What was missing

was an overall strategy and an indication of the direction of change

to inform the administrative changes. The government seemed to

view corporatization as an administrative decision rather than a

process.

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The Athreya Committee report as well as subsequent reports on

restructuring may be viewed as the initiation of a process of

Examining organizational options. The reports, however, did not

accord due attention to the need for autonomy in financial and

Operational decision making. Management incentives that would

have allowed these organizations to increase profitability and raise

capital from markets had been only very sketchily outlined Thus

access to capital would have been a problem.

Besides the limitations, the suggested changes were superficial since

most .restructured. Organizations showed too much of a

Control and rule orientation and continued to work in much the same

manner as before.

Inability of top management and political executives to address the

need to make the DoT more competitive could be cited as a failure.

Given the large base of employees who had been entrenched in a

typical bureaucratic mode of functioning providing

Customer orientation and a commercial approach were, and continue

to be, the most difficult tasks. The DoT had no specific training

policy in this regard. Though there were several training centers,

these were not equipped to provide management training. The

restructuring was far more concerned with form than content.

Areas like identifying the mechanisms for acquiring new core

Capabilities, developing appropriate incentives, and nurturing a

climate in which change could take place were lacking.

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Telecommunications Regulatory Authority of

India (TRAI)

The Telecommunications Regulatory Authority of India or TRAI

(established in 1997) is the independent regulator established by the

Government of India to regulate the telecommunications business in India.

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Notwithstanding anything contained in the Indian Telegraph Act, 1885, the

functions of the Authority shall be to-

(a) Make recommendations, on a request from the licensor, on the

following matters, namely:

(i) Need and timing for introduction of new service provider;

(ii) Terms and conditions of license to a service provider;

(iii) Revocation of license for non-compliance of terms and conditions

of license:

(iv) Measures to facilitate competition and promote efficiency in the

operation of telecommunication services so as to facilitate growth in

such services.

(v) Technological improvements in the services provided by the service

providers.

(vi) Type of equipment to be used by the service providers after

inspection of equipment used in the network.

(vii)Measures for the development of telecommunication technology

and any other matter relatable to telecommunication industry in general;

(b) Discharge the following functions, namely:-

(i) Ensure compliance of terms and conditions of license;

(ii) Notwithstanding anything contained in the terms and conditions of

the license granted before the commencement of the Telecom

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Regulatory Authority (Amendment) Ordinance,2000, fix the terms and

conditions of inter-connectivity between the service providers;

(iii) Ensure technical compatibility and effective inter-connection

between different service providers.

(iv) Regulate arrangement amongst service providers of sharing their

revenue derived from providing telecommunication services;

(v) lay down the standards of quality of service to be provided by the

service providers and ensure the quality of service and conduct the

periodical survey of such service provided by the service providers so

as to protect interest of the consumers of telecommunication services;

(vi) Lay down and ensure the time period for providing local and long

distance circuits of telecommunication between different service

providers;

(vii) Maintain register of interconnect agreements and of all such other

matters as may be provided in the regulations;

(viii) keep register maintained under clause (viii) open for inspection to

any member of public on payment of such fee and compliance of such

other requirement as may be provided in the regulations;

(ix) Ensure effective compliance of universal service obligations:

(c) Levy fees and other charges at such rates and in respect of such services

as may be determined by regulations.

(d) Perform such other functions including such administrative and

financial functions as may be entrusted to it by the Central Government or

as may be necessary to carry out the provisions of this act.

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Provided that the recommendations of the Authority specified in the clause

(a) of this sub-section shall not be binding upon the Central Government:

Provided further that the Central Government shall seek the

recommendations of the Authority in respect of matters specified in sub-

clauses (i) and (ii) of clause (a) of this sub-section in respect of new license

to be issued to a service provider and the Authority shall forward its

recommendations within a period of sixty days from the date on which that

Government sought the recommendations:

Provided also that the Authority may request the Central Government to

furnish such information or documents as may be necessary for the

purpose of making recommendations under sub-clauses (i) and (ii) of

clause (a) of this sub-section and that Government shall supply such

information within a period of seven days from receipt of such request:

Provided also that the Central Government may issue a license to a service

provider if no recommendations are received from the Authority within the

period of specified in the second provision or within such period as may be

mutually agreed upon between the Central Government and the Authority.

Provided also that if the Central Government has considered that

recommendation of the Authority comes to a prima facie conclusion that

such recommendation cannot be accepted or needs modifications, it shall,

refer the recommendations back to the Authority for its reconsideration.

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Milestones in Telecom Reforms

1984 Manufacturing of subscriber terminal equipment opened to

private sector.

1985 Telecom was constituted into a separate department with a

separate board.

1986 MTNL and VSNL created as corporations.

1988 Government introduces in-dialling scheme. PABX services

only within a building, or in adjoining buildings.

1989 Telecom Commission formed.

33

1991 Telecom equipment manufacturing opened to private sector.

Major international players like Alcatel, AT&T,

Ericsson, Fujitsu, and Siemens entered equipment manufacturing

market.

1992 VAS sector opened for private competition.

1993 Private networks allowed in industrial areas.

1994 Licenses for radio paging (27 cities) issued.

May 1994 New Telecom Policy announced.

September 1994 Broad guidelines for private operator entry into

basic services announced.

November 1994 Licenses for cellular mobiles for four metros issued.

December 1994 Tenders floated for bids in cellular mobile services

in 19 circles, excluding the four metros, on a duopoly basis.

January 1995 Tenders floated for second operator in basic services

on a circle basis.

July 1995 Cellular tender bid opened.

August 1995 Basic service tender bid opened; the bids caused lot of

controversy. A majority of bids were considered low.

December 1995 LOIs issued to some operators for cellular mobile

operations in circles.

January 1996 Rebidding takes place for basic services in thirteen

circles. Poor response.

The Telecom Regulatory Authority of India (TRAI) formed by

ordinance.

October 1996 LOIs being issued for basic services.

March 1997 The TRAI Act passed in Parliament.

June 1998 Several VASs available through private operators. The

first private basic service becomes operational.

March 1999 Announcement of National Telecom Policy.

34

January 2000 Amendment to the TRAI Act.

August 2000 Announcement of Domestic Long Distance

Competition Policy.

October 2000 Planned Corporatization of DoT.

BASIC STRUCTURE OF INDIAN TELECOM

35

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

Ministry of Communication & Information Technology

Regulator

Licensor

Judiciary

Telecom Regulatory Authority of India

Telecom Dispute Settlement Appellate Tribunal

Dept of Telecom Unified License Operators

Fixed Line Operators

GSM

900 & 1800

Wireless Operators

National Long Distance Operators

International Long Distance OperatorsCDMA

1800Mhz

EVOLUTION OF THE INDIAN TELECOM MARKET

1. Penetration and growth

The Indian cell phone market essentially started in 1992 with the sale of

licenses, which enabled the private sector to participate in the industry

(COAI, 2006). In 1994, cellular service licenses were granted for the major

36

metropolitan areas. This then expanded to 15 circles in the following year.

Services were rolled out in 1995 – with Kolkata becoming the first city to

get a cellular network in August 1995. However, in December 2000 – 5

years after launch of cellular licenses – penetration was still quite low. In

fact, there were only about 3.2 million subscribers, primarily in the major

cities and large towns.

The major driver for change was the Telecom Regulatory Authority of

India (TRAI).TRAI was instituted in 1997, and soon started building

policies and regulations to push prices downward and spur competition.

By December 2004, there were about 93mn phones in the country, of

which 48mn subscribers were cellular (TRAI, Dec. 2005). The number of

cellular phone users increased to about 76mn in December 2005 and about

89mn phones in March 2006 (Financial Express, Apr 2006)

This trend indicates a CAGR of over 30%. Jorma Ollila, Chairman and

CEO of Nokia, recently commented that “India is amongst the top 5

telecom markets in the world”

(Light reading 2006) when he visited the country to reiterate his firm’s

commitment to the market. Indeed, no other country in the world has

added 4-5mn mobile phones per month. Exhibit 1 shows the growth of the

postpaid and prepaid market in India, including prediction for 2010.

2. Player

The Indian wireless market has both CDMA and GSM network operators.

CDMA operators entered the picture and grew rapidly – Reliance, which

owns about 70% of the CDMA market currently with ~ 20.44 mn

subscriptions, grew at over 114% year-on year in 2002-03 – one of the

37

most explosive phone launches ever ( TRAI Jun 2003, Financial Express,

Apr 2006). The overall CDMA subscriber base, though, is still about

22.2% of the market – with Tata Teleservices taking up most of the

remaining CDMA share.

The GSM players account for the remaining ~78% - with a market that is

less dominated by one player. Bharti, state-owned BSNL, and Hutch

control the largest parts of this market and have been adding subscribers at

an impressive pace. As of April 2006, Bharti was the largest player by far,

with 30.37 mn subscribers. BSNL had a subscriber base of 20.44mn,

followed closely by Hutch with 22% of the GSM market and an overall

share of 15.02%.

The Telecom Regulatory Authority of India overseas the evolution of this

market. Since its establishment in 1997, this agency has made many key

judgments – including statements on tariffs, quality of service, next

generation networks, etc. TRAI also releases quarterly reports on the state

of the telecom industry – with special emphasis on tariffs, interoperability

between networks, and usage (TRAI).

Since Indian regulation makes it difficult for network operators to also sell

phones (due to revenue share agreements), there is a completely parallel

market for users to buy phones. In the GSM space, users go to handset

providers to buy phones and then to network operators to get network

services. Most global handset manufacturers are present in India – with

Nokia leading the pack by far. In 2005, more than 31mn handsets were

sold. Of this, Nokia captured about 60% share – over 18mn phones in one

year. Motorola, which has a smaller share, is seeing growth with the

introduction of more advanced phones including its Razr platform.

Samsung, LG and Sony Ericcson all have reasonable market share as well

38

– with LG catering almost exclusively to the CDMA space through a tie-

up with Reliance.

THE INDIAN MARKET – BASIC DEMAND

TRENDS

Demand for cellular services is interesting for a variety of reasons. Before

catering to this market, service providers must consider unmet needs, price

sensitivity, diversity in consumer profiles, and the skew in urban-rural

markets.

1. Unmet needs

Current Indian teledensity is 11.43 (i.e. only 11.43 phones both

cellular and fixed line exist per 100 people) While that points to a

staggering ~ 125mn phones already in the market, it also points to a

large unmet demand. Specifically, peer countries have much higher

teledensity. China has a mobile teledensity of 28.3 while in

Malaysia, that number is 77. If India is to attain China’s teledensity

in 5 years – up from its current penetration of ~ 7%, this implies an

almost 4x increase in the number of phones. This would lead to

demand for about 210mn additional phones in that time.

2. Young, growing, consuming market

More than 95% of India’s population is under the age of 65.70% of

the country’s citizens are below the age of 36, and half of those are

under 18. (Bharadwaj etal, 2005; Wikipedia; Census Maps;

Answers.com). Further, the standard of living has been increasing:

39

only 26% of the population is below the poverty line now, compared

to over 50% in the mid-70s. (Sinha, Jayant, 2005) Thus, the young,

mobile segment of the population is quite large and more connected

than any previous generation. In addition, it earns more and is more

willing to spend on convenience products than previous generations.

In fact, in some instances, consumer products like cell phones now

have are a symbol of status. Young consumers are willing to buy

new phones and are constantly looking for good deals and the

opportunity to “trade up” to better products.

3. Value sensitivity

The Indian consumer is also very price sensitive. Product managers

have found that consumers in India will not buy products unless

there is a clear value proposition – at the lowest possible price. For

instance, Nokia successfully introduced a customized version of

their 1100 phone with features uniquely tailored to India – dust-

resistant body and a built-in flashlight – making it very popular

among truck drivers (Bharadwaj et al, 2006). The phone itself retails

for about $40. Indians also expect a high quality of services at the

lowest possible tariff rate. Thus, tariffs in India for voice services

are among the lowest in the world. While average American carrier

charges about 30-40 cents per minute, the corresponding rate for an

Indian carrier is only about 2 cents per minute. (Cingular, T-

Mobile, TRAI Dec 2006).

4) Pre-paid rules

Indian consumers choose plans and tariff structures that minimize

monthly expenditure. Further, they also choose tariff plans that let

40

them switch easily – especially since they shop on price. Thus pre-

paid SIM cards are the dominant method of revenue generation.

With this scheme, consumers buy a SIM card to use in their phones

with a set amount of money on it (say ~$10).

In addition, since receiving calls in India is free, very often

consumers will only receive calls on their phones. And almost every

cellular company has also introduced free incoming plans for 1-

2years & lifetime free incoming plans. Thus, revenues per user are

low, with pre-paid users contributing ~$5.6 per month. While the

average post-paid user spends much more – contributing ~$19 per

month – this is a small segment of the market in India. In 2006, for

example, over 95% of new phone additions were pre-paid plans.

(TRAI Dec 2006) (See Exhibit 1 for potential growth of pre-paid

vs. post-paid in India).

5) Rural vs. Urban Market

While growth in India is significant, there is a large difference

between urban and rural markets. Teledensity varies wildly. For

example, cities like Mumbai, Delhi, Chennai, and Kolkata have a

teledensity around 49% while Circles B and C (which include far-

less urban states) see a penetration of 2.6% (See Exhibit 7 for

market penetration in India varied by geographical areas). Aslo,

service providers pay Access Deficit charges to subsidize the

(mainly government run) players that serve the unprofitable rural

41

markets. However, as network operators run into an increasingly

saturated market in cities, they are slowly turning to rural areas to

grow. To enter these markets, carriers will have to make large

capital investments, create low introductory pricing, and only offer a

basic level of services. Although growth in rural markets will be

slower and require a larger investment per customer, with no

guarantee of the same amount of revenue, the thirst for

communication and poor landline infrastructure makes rural India a

unique opportunity for growth.

Consequently, operators are dropping prices to ensure they get their

hands on the expanding customer pie and the large untapped market

means that revenues from the voice market will drive the growth for

the next few years.

6. Demographics

The expected growth in the Indian GDP, 6-7 percent annually from

2005 to 2007, is a good indicator of the increased purchasing power

of the population (Asian Development Bank – 2005). A greater

percentage of the Indian population has higher levels of disposable

income with which to purchase products and services. Along with

lower connectivity costs and cheaper handsets, the mobile market in

India is seeing a huge influx of subscribers who can now afford

basic coverage. India is also experiencing changing demographics

that have contributed to the explosion in the mobile market.

Approximately 70 percent of India’s 1.1 billion populations are

between the ages of 15 and 40 (U.S Census Bureau-International

Database, 2003). As a result, telecom players are looking at a young

population with increased pay scales and more job opportunities.

42

Furthermore, a high percentage of these Indians are still living at

home and saving their salaries. Thus, this generation is able to spend

a large percentage of their income on the purchase of entertainment

and consumer electronics, including cell phones.

7. Role of Government

The Indian government has played a significant role in setting the

stage for growth in mobile telecommunications. Through the

oversight of the Telecom Regulatory Authority of India (TRAI), the

government has made many changes to regulations and policies to

remove hurdles and spark growth. First, the Indian government

introduced the Unified Licensing Regime in 2003. This regime

allows operators to offer any service through the technology of their

choice, in any area in which they currently operate. Thus, all

telecom services (including voice, data, cable TV, and radio

broadcasting) can now be delivered through a single medium and

are covered by a single license. Unified licensing shifted operator

behavior and caused operators to start focusing on converged

services and networks for cost efficiency – which, in turn, allows

them to offer pricing conducive to rapid growth. In addition, the

Indian government has raised the maximum foreign direct

investment (FDI) limit from 49 percent to 74 percent in Telecom

Sector. The government also enacted the Access Deficit Charge

(ADC) policy, which requires that a share of call revenue be paid to

the government to assist in funding network expansion into rural

areas.

As of early 2005, several regulations were imminent. First, the

launch of an “All India” license would give operators the right to

43

provide all forms of service throughout India with one license. This

structure would initiate the next phase of market consolidation, with

the result likely being five to six main players. The players would

have greater scale which would lead to higher cost efficiency and,

ultimately, more flexibility, and allow even fixed line users to

switch to mobile services seamlessly – possibly increasing

competition in the market. Finally, the government needed to decide

how to increase spectrum capacity, since 2G networks are nearing

full capacity (“2G” stands for second generation cellular

technologies, which are circuit-based, voice technologies deployed

in the 1990s. This standard is being replaced around the world with

“3G” networks that are faster .

GROWTH OF TELECOM NETWORK (2010)

44

With a strong population of over 1.1 Billion, India has become one of the

most dynamic and promising Telecom markets of the world. In recent

times, the country has emerged as one of the fastest growing telecom

markets in the world. It has third largest telecom network and the second

largest wireless network in the world.

NETWORK EXPANSION

● The total number of telephones has reached 653.92 million telephone

(landlines and mobile) May 2010 .

45

● The Indian Mobile subscriber base has increased in size by a factor of

more than one-hundred since 2001 when the number of subscribers in the

country was approximately 5 million to 617.53 million in May 2010.

● The tele density, as given in the following graph, has shown a sustained

increase during last few years.

It increased from 26.22% in March 2009 to 36.98% in March 2010

Tele density graph

Cellular Service Providers

As on Apr 2007 India has 167 million mobile phone subscribers. Out of

this 125 million are GSM users and 41 million CDMA users.

46

BSNL, Bharti Airtel, Hutch, Idea, Aircel, Spice and MTL are the main

GSM providers in India. Reliance Communications and Tata Indicom are

the main CDMA providers in India.

Bharti Airtel

Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai,

Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and

Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa,

Punjab, Rajasthan, Tamil Nadu, UP and West Bengal. Airtel is the No.1

cellular service provider in India using GSM technology. Airtel has 23%

market share in India with a total subscriber base of 38 million.

Reliance Communications

Reliance has both CDMA and GSM networks and total subscriber base of

29 million or 17% market share. It has GSM network in Assam, Bihar,

Himachal Pradesh, Kolkata, North East, Madhya Pradesh, Orissa and West

Bengal. Reliance has CDMA networks in other states and cities.

Bharat Sanchar Nigam Limited (BSNL)

BSNL is a state owned telecom company which has GSM presence in

almost every cities and towns. BSNL has 27 million subscribers with a

market share of 16%.

Tata Indicom

Tata Indicom is a main CDMA provider in India with 16 million

subscribers all over India. Tata Indicom has presence in almost every states

and cities in India

47

Airtel has more than 100 million subscribers and BSNL has half as much.

But, BSNL’s revenues was more than Airtel’s until now. For the first time

Airtel has surpassed BSNL to become country’s number one telecom

operator in terms of subscribers and revenues.

There is a drop of 0.4% in BSNL’s revenues when compared with the

previous fiscal year. Airtel has increased its revenues by 39.8%  - a very

impressive growth.

BSNL did not face the heat until now as the revenues weren’t dipping.

That doesn’t hold good any more and it has to buck up or revamp before it

turns into an Air India. BSNL doesn’t have the same kind of excuses of Air

India as it operates in a lucrative telecom market.

The other operator which has seen a drop in revenues is MTNL. This is in

spite of all the 3G spectrum and the leg-up both BSNL and MTNL got

from the government. Giving subsidies and special treatment doesn’t work

after all.

Reliance saw a decent growth of 23.1% and its revenues are 22341 crores.

It is 3rd in line. The best growth in revenues was by IDEA Cellular at

50.7%.

Airtel and Reliance are the 2 India based operators to feature in the top 20

telecom operators by subscribers.

Top 10 telecom service providers by revenues :

RankOperator Revenues

2006-07Revenues 2007-08

Revenues 2008-09

Growth %

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1 Bharti Airtel 17888 26436 36962 39.8

2 BSNL 40135 35296 35167 -0.4

3 Reliance 14468 18638 22341 23.1

4 Vodafone 10565 15477 22224 43.6

5 IDEA Cellular 4413 6720 10125 50.7

6 Tata Comm 8857 8263 9963 20.6

7 TTSL 5178 5993 6739 12.4

8 MTNL 4923 4729 4487 -5.1

9 Aircel 1507 2528 3425 35.5

10 TTML 1422 1730 1323 7.8

MARKET STRUCTURE OF TELECOM INDIA

49

50

COMPANY PROFILE

51

Type Private

Founded 1999

Headquarters Chennai, India

Key people Gurdeep Singh, CEO

Industry Telecom

Parent Maxis communications (74%)

Apollo Hospital (26%)

Products Mobile Telecommunication operator

Website http://www.aircel.com

52

AIRCEL LOGO

MAXIS LOGO

53

COMPANY PROFILE

The Aircel Group is a joint venture between Maxis

Communications Berhad of Malaysia and Apollo Hospital Enterprise

Ltd of India, with Maxis Communications holding a majority stake of

74%.

Aircel commenced operations in 1999 and became the leading

mobile operator in Tamil Nadu within 18 months. In December 2003, it

launched commercially in Chennai and quickly established itself as a

market leader – a position it has held since.

Aircel began its outward expansion in 2005 and met with

unprecedented success in the Eastern frontier circles. It emerged a market

leader in Assam and in the North Eastern provinces within 18 months of

operations. During this period, the company gained a foothold in 9 circles

including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu

& Kashmir, Himachal Pradesh and West Bengal.

The Company has currently gained a momentum in the space of

telecom in India post the allocation of additional spectrum by the

Department of Telecom, Govt. of India for 13 new circles across India.

These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat,

Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa,

Rajasthan, Punjab, UP (West) and UP (East).

Aircel has won many awards and recognitions. Voice and Data gave

Aircel the highest rating for overall customer satisfaction and network

quality in 2006. Aircel emerged as the top mid-size utility company in

Business world’s ‘List of Best Mid-Size Companies’ in 2007.

54

Additionally, Tele.net recognized Aircel as the best regional operator in

2008.

Aircel was the largest mobile phone service provider in Tamil Nadu,

India, however, it has been recently been overtaken by Airtel and Hutch

with better service and in terms of Number of Connections provided. It

offers both prepaid and postpaid GSM cellular phone coverage throughout

Tamil Nadu, Assam, NE States, Orissa, West Bengal, J&K, and Bihar &

HP. It offers only the Basic phone service, and doesn’t offer any Data

services.

Aircel, now part of Maxis Communications Berhad, Malaysia, is

India’s seventh largest GSM mobile service provider with a subscriber

base of over 6.2 million (over 4 million in Chennai & Tamil Nadu alone)

and the fastest growing mobile operator in the country. As on date, Aircel

is present in 9 telecom circles (Assam, Bihar, Chennai, Himachal Pradesh,

Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal) and

with licenses secured for the remaining 14 of the 23 telecom circles, the

company is on track to become a pan-India operator. Additionally, Aircel

has also obtained the nod from Department of Telecommunications (Dot)

to provide International Long Distance (ILD) and National Long Distance

(NLD) telephony services. For more information, please log on to

www.aircel.com

Aircel Business Solutions (ABS), part of Aircel, is headquartered in

Chennai and is an ISO 9000 certified company. ABS is a registered

member of WINMAX forum – both in the Indian and International

Chapters. ABS’ product range includes a host of cutting-edge enterprise

solutions such as Multi Protocol Label Switching Virtual Private Networks

55

(MPLS VPNs), Voice over Internet Protocol (VoIP) and Managed Video

Services on wireless platform including WiMAX.

56

AIRCEL PRESENCE

57

TELECOM CIRCLES

Telecom Circles & Metro districts are responsible for providing service

to the customers. There are 24 Telecom Circles and 2 Metro districts.

1. Andaman & Nicobar Telecom Circle

2. Andhra Pradesh Telecom Circle

3. Assam Telecom Circle

4. Bihar Telecom Circle

5. Chhattisgarh Telecom Circle

6. Gujarat Telecom Circle

7. Haryana Telecom Circle

8. Himachal Pradesh Telecom Circle

9. Jammu & Kashmir Telecom Circle

10. Jharkhand Telecom Circle

11. Karnataka Telecom Circle

12. Kerala Telecom Circle

13. Madhya Pradesh Telecom Circle

14. Maharashtra Telecom Circle

15. North East-I Telecom Circle for Meghalaya, Mizoram and

Tripura

16. North East-II Telecom Circle for Arunachal Pradesh, Manipur

and Nagaland.

17. Orissa Telecom Circle

18. Punjab Telecom Circle

19. Rajasthan Telecom Circle

20. Tamil Nadu Telecom Circle

21. Uttar Pradesh (East) Telecom Circle

22. Uttar Pradesh (West) Telecom Circle

58

23. Uttaranchal Telecom Circle

24. West Bengal Telecom Circle

Metro Districts

1. Kolkata Telecom District

2. Chennai Telecom District

59

BRANCH OFFICES

Circle Name Postal Address

Chennai

Aircel Cellular Limited, Aircel Towers, 301, Poonamalee

Road, Kilpauk, Chennai 600 010

RoTN

Aircel Limited, no 5, T B Road (Hosur Road) Codissia

Towers, Coimbatore 642028

Assam

Dishnet Wireless Ltd. Triveni Commercial Complex, 3rd

Floor, G. S. Road, Ulubari, Guwahati-781007

North East

Dishnet Wireless Ltd., Eldorado Building, 3rd Floor, Jail

Road, Shillong 793001, Meghalaya

Jammu & Kashmir

Dishnet Wireless Ltd. Hall No 105-112 B1, North Block

Bahu Plaza Complex, Jammu-180012

Dishnet Wireless Ltd. Near Gurdwara Shaheed Bunga,

Baghat Barzulla, Srinagar-190005

HP

Dishnet Wireless Ltd. 2nd and 3rd Floor, Keonthal

Complex, Main Bazar, Khalini, Shimla – 171002

Orissa

Dishnet Wireless Ltd. 7th Floor, Block B, Fortune

Towers, Chandrasekharpur, Bhubaneshwar-751023

Bihar & Jharkhand

Dishnet Wireless Ltd. 4th Floor, Office No.415, Maharaja

Kameshwar Complex, Fraser Road(Mazharul Haque

Path), Patna – 800001

West Bengal

Dishnet Wireless Ltd. A-201 to 205, A-304, A Block, City

Centre, Durgapur-713216

60

Kolkata

Dishnet Wireless Ltd. Globsyn Crystal Building, 3rd

floor, Block EP, Plot No.11 & 12, Sec - 5, Salt Lake

Electronics Complex, Salt Lake City, Kolkata-700091

Delhi

Aircel Ltd., B-1, Plot No.1&2, Local Shopping Centre,

Vasant Kunj, New Delhi – 110070

Uttar Pradesh

(West)

Dishnet Wireless Ltd., A-4 & A-29, NCPL Web Tower,

Sector 9, Noida, District Gautambudh Nagar, Uttar

Pradesh – 201 301  

Uttar Pradesh

(East)

Dishnet Wireless Limited, Ratan Square, 3rd Floor, 20 A,

Vidhan Sabha Marg, Lucknow, Uttar Pradesh – 226 001

Andhra Pradesh

Aircel Ltd., 5th floor, CACHE Properties, Gumidelli

Commercial Complex, 1-10-39 to 44, Old Airport Road,

Begumpet, Hyderabad – 560016

Karnataka

Aircel Ltd., Municipal No.66-5-25, HM Vibha Towers,

Luskar Hosur Road, Adugodi, Bangalore – 560029

Kerala

Dishnet Wireless Ltd(Aircel), NO.9419/33/2365B,

B1,B2,B3 R R Arcade, NH 47 Bypass, Thammana (PO),

Cochin-682032

Mumbai

Aircel Ltd., Opus Centre, 47, Central Road, Opp: Hotel

Tunga Paradise, M.I.D.C., Andheri (East), Mumbai –

400093

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MISSION STATEMENT

We are conditionally committed to exceeding our customer’s

expectations. we will provide network and services that are

innovative and reliable, allowing our customers any time anywhere

communications. we will attract, develop and retain an exceptional

team of people. We are committed to enhancing the quality of real

life in the community in which we operate. We will meet the

financial expectation of our shareholders.

OUR GOALS AND VALUES

CUSTOMER : Our customers are our most valued assets. We will

strive to exceed their expectations at all time by providing them with

superior services that embody value, innovation, quality and care.

PEOPLE : Our people are our greatest resources. we will attract,

train and retain the best. We will challenge them to develop their full

potential in the context of our company goals.

62

INTEGRITY : We will maintain and strive for the highest levels of

personal and professional integrity and honesty in all ours dealings.

We will keep our promises.

RESPECT : We will treat with respect & dignity all people we deal

with.

EXCELLENCE : We are committed to excellence in all what we do.

There will be no place for mediocrity.

WORK : We will promote a work environment that embraces

creativity, promotes empowerment, and encourages team work,

innovation, prudent risk taking, honest and open communication and

respectful iconoclasm

QUALITY : The hallmark of our internal and external outputs and

processes will be quality. This will pervade every aspect of our

functioning.

63

Value Added Services Pocket Internet:-

Non-stop downloads of your favorite stars' Wallpaper, latest

Polyphonic Ringtones, MP3 tones, True tones, Music Videos, Movie

videos, Themes, Movie Themes and Mobile games only on Aircel

pocket internet

Caller ring back tone:-

64

Aircel introduces Dialer Tunes! Get rid of boring Tring Tring and make

your callers listen to latest tunes. Dial 53000, Registration Rs.30, call

Rs.3/min. Song Download Charges : Free

What is Caller Ring Back Tone?

Caller Ring Back Tone (CRBT) is a special feature through which the

calling party can hear a song or music instead of the default "tring tring"

tone.

Aircel 55500 Service

Aircel introduces 55500 Voice Portal! Dial 55500 to download latest

ringtones, listen to latest news, and dedicate songs and your daily

horoscopes. Call charges 10 paisa per sec.

Total services on portal as follows:

Music Station

Astrology

Jokes

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Bollywood

News

Music on call:-

Now listen to music of your choice from the list of hit numbers without

any interruption with Aircel's new "Music on Call".

No breaks, no unnecessary chatter, just good Music. So stay tuned by just

subscribing to the service.

Voice Portals:-

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Aircel 55500 service offers you a host of never before services - from

music on your mobile to tit-bits about celebrities. All you need to do is call

55500 from your Aircel mobile and follow the simple instructions to enter

a world of information and entertainment. The service recognizes your

voice and gives information based on the command given by you.

Music Messaging and Ringtones:-Browse through the rich

selection of music across the various categories and languages and

listen to your favorites while on the go, also you can dedicate songs

with a personal message to any Aircel number. You can download

ringtones of these songs.

We have wide collection of music based on occasions like birthdays,

valentines, Rakhi, Diwali, Holi, New Year and song collections on

Latest hits, Classic, Romantic Hits.

Multimedia Messaging Service:-

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Multimedia Messaging Service (MMS) is a store and forward

messaging service that allows mobile subscriber to exchange

multimedia messages with other mobile subscriber. With this facility

now start sending picture (images), audio & video clips with MMS.

What's more you want just get it registered...

Subscription Services:-

Live astrology:-

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Astrology service on short code 55315 is a voice based LIVE

SERVICE, where AIRCEL customers can call at Rs. 9/min and talk

to formally trained & experienced ASTROLOGERS.

Job Alerts:-

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Aircel now Launches "Job Alert Service on Mobile". Tell us what

you are looking for & sit back and relax!

We will get your dream jobs to come looking for you.

Get Jobs from the best sources like naukri.com, monsterindia.com,

clickjobs.com, sulekha.com, timesjobs.com and lot more!

Devotional Voice:-

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The Devotional Subscription service allows you to listen to full length of

all the devotional songs from the Portal. All you need to do is just dial

55508 and subscribe to enjoy the unlimited devotional songs.

Mobile TV:-

Mobile phone over the period of time has evolved from a basic

communication device into a Multi-utility and entertainment device.

This evolution of the mobile phone has created varied entertainment

needs among consumers. In order to cater to such needs of

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consumers, we have launched Aircel Mobile TV service wherein

subscribers would be able to watch popular TV channels on their

mobile phones while on move.

GPRS:-

Now subscribers are empowered with web connectivity on their mobile

phone and can enjoy the magic of internet. Subscribers will be able to

browse, check emails on the move, view and update blogs, download

entertainment & infotainment contents from all world wide websites from

their GPRS compatible mobile phones.

Aircel Reminder:-

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With this new reminder service, you can store important occasions/ events.

The events will be reminded to you through SMS.

COLOUR SMS

Music Stations:

Astrology

Jokes

Bollywood

News

Tips

AIRCEL HEALTH SERVICES

PLAY SCRABBLE

Search your favorites Ring tone

Bengali Ring tones

Voice Mail Service

Save Your Contacts

Healthy Living Tips

SIM browser services

Dictionary

Funny Logos and Pictures

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SUBSCRIPTION CHARGES

ServiceSubscriptio

n Keyword

Send

ToCharges Alerts Time

News Headline +

Breaking NewsSUB NEWS

5800

0Rs 7/week

Twice a

day

10:30

&

16:40

Cricket NEWS &

SCORESSUB CRI

5800

0Rs 7/week

Ball by

Ball

update

9:00

Jokes Alert SUB JOKES5800

0Rs 7/week

Once a

Day13:30

Astro Pack

SUB

ASTRO

<SUNSIGN

>

5800

0Rs 7/week

Once a

Day13:00

Stock Alert SUB

STOCK

5800

0

Rs 7/week Thrice a

Day

10:15

&

13:00

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&

17:00

Though of the

Day AlertsSUB THO

5800

0Rs 7/week

Once a

Day9:30

Mehfil-E-

Timepass/

Shayari

SUB

SHAYARI

5800

0Rs 7/week

Twice A

day

13:00

&

14:55

Love Express SUB LOVE5800

0Rs 7/week

Once a

Day

11:15

&

14:00

Beauty Tips

AlertsSUB BTIP

5800

0Rs 7/week

Once a

Day13:45

Health Tips

AlertsSUB HTIP

5800

0Rs 7/week

Once a

Day17:30

Receipe Tips

AlertsSUB RTIP

5800

0Rs 7/week

Once a

Day15:20

Fun Unlimited

AlertsSUB FUN

5800

0Rs 7/week

Once a

Day

10:00

&

14:45

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Regional News

Alerts

SUB

RNEWS

5800

0Rs 7/week

Once a

Day14:50

Ayurvedic Tips

AlertsSUB ATIP

5800

0Rs 7/week

Once a

Day7:30

Amazing Facts

AlertsSUB AF

5800

0Rs 7/week

Once a

Day12:30

Numerlogy

Alerts

SUM NUM1

TO NUM9

5800

0Rs 7/week

Once a

Day13:45

Guru Granth

Sahib AlertsSUB GURU

5800

0Rs 7/week

Once a

Day7:00

Geeta Shloakas SUB Geeta5800

0Rs 7/week

Once a

Day6:40

Holy Bible

AlertsSUB BIBLE

5800

0Rs 7/week

Once a

Day6:40

Quran Alerts SUB QUR5800

0Rs 7/week

Once a

Day8:45

Ram Charit

Manas AlertsSUB RAM

5800

0Rs 7/week

Once a

Day8:45

Friendship

Messages Alerts

SUB

FRIENDS

5800

0Rs 7/week

Once a

Day14:00

Career Guru SUB CG 5800 Rs 7/week Twice a 10:00

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Pack 0 day&

14:00

Fundoo Pack SUB FNP5800

0

Rs.30/

month

Twice a

day

11:00

&

16:00

Super Sports

PackSUB SSP

5800

0

Rs.30/

month

Twice a

day

10:00

&

15:00

Word-a-Day SUB WORD5800

0Rs 7/week

Once a

Day9:35

Bihar NewsSUB

NEWSBH

5800

0Rs 7/week

Once a

Day11:40

News - BengalSUB

NEWSBN

5800

0Rs 7/week

Once a

Day11:40

News - KerelaSUB

NEWSKER

5800

0Rs 7/week

Once a

Day11:40

News –

Kernataka

SUB

NEWSKK

5800

0Rs 7/week

Once a

Day11:40

News -

Maharashtra

SUB

NEWSMAH

5800

0Rs 7/week

Once a

Day11:40

News - NCR SUB 5800 Rs 7/week Once a 11:40

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NEWSNCR 0 Day

News - North

East

SUB

NEWSNE

5800

0Rs 7/week

Once a

Day11:40

News - PunjabSUB

NEWSPUN

5800

0Rs 7/week

Once a

Day11:40

News - RajasthanSUB

NEWSRAJ

5800

0Rs 7/week

Once a

Day11:40

News - TNSUB

NEWSTN

5800

0Rs 7/week

Once a

Day11:40

News - UPSUB

NEWSUP

5800

0Rs 7/week

Once a

Day11:40

News - GujratSUB

NEWSGJ

5800

0Rs 7/week

Once a

Day11:40

News - APSUB

NEWSAP

5800

0Rs 7/week

Once a

Day11:40

News - J&KSUB

NEWSJK

5800

0Rs 7/week

Once a

Day12:40

Aduilt Jokes SUB AJ5800

0Rs 7/week

Once a

Day10:00

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PRODUCT DETAILS

Local Rate Cutters

1. Rs. 19- Aircel to Aircel call charges in night (11pm to 6 am) is Rs.

0.10/min.

2. Rs. 29- All local calls charges is Rs. 0.50/min.

3. Rs. 49- All local calls charges is Rs. 0.50/min and Aircel to Aircel

call charges in night(11pm to 6 am) is Rs. 0.10/min. Aircel to Aircel

call charges in day is Rs. 0.25/min.

STD Rate Cutters

1. Rs.15- STD call rates to Bihar, Punjab and Delhi are Rs. 1/min.

2. Rs. 18- STD call rates to Maharashtra, Goa and Mumbai are Rs.

1/min.

3. Rs. 30- All STD call rates are Rs. 1/min.

ISD Rate Cutters

Rs.70- ISD call rates are as follow-

Malaysia & Singapore: 3.00

Saudi Arabia, Bahrain & Qatar: 7.00

Oman-8.20, Sri Lanka: 5.50

China & South Korea: 4.00

US/CAN (except Alaska, Hawaii & Guam): 2.00

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US (Others): 5.00

UK (Fixed): 3.75

SMS Pack

1. Rs. 27- 300 Local and National SMS free.

2. Rs 60- 2000 Local SMS free.

Minute Packs

1. Rs.11- 25 Local Aircel to Aircel minutes free.

2. Rs.31- 100 Local Aircel to Aircel minutes free.

3. Rs.45- 200 Local Aircel to Aircel minutes free.

4. Rs.55- 100 local minutes free for all network.

5. Rs.65- 65 STD minutes free.

6. Rs.79- 100 Local Aircel to Aircel minutes and 100 local minutes for

all networks.

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DATA ANALYSIS

1.Which Mobile service you use?

Company Name In Number Percentage

Aircel 14 7%

Airtel 58 29%

Idea 42 21% 21%

BSNL 33 16.5%

Vodafone 27 13.5%

Reliance Gsm 26 13%

Total 200 100%

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1. Are you aware of our Pocket Internet?

A). Yes B). No

2. Are you using our Pocket Internet?

A). Yes B). No

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3. Are you satisfied with the speed of our Pocket Internet?

A). Yes B). No

4. Are you getting information about schemes/offers given by

company?

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A). Mostly B).Sometimes C). Never

5. What is your opinion about call charge of Aircel?

A).Satisfied B).Highly satisfied C).Dissatisfied

6. How do you feel about the schemes offered in Aircel?

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A).Satisfied B).Highly satisfied C).Dissatisfied

7. Do you find mode of recharge easily available?

A).Yes B).No

8. Which features of your service provider you use most?

A). Voice calls B).Text Messages C).GPRS D).Others

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9. Are you satisfied with the amount of information provided by your

service provider?

A).Satisfied B).Highly satisfied C).Dissatisfied

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10.How is the customer service of call center in terms of response time

and hold time?

Excellent Good Average Poor

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SELF ANALYSIS

1. I promoted the Value Added Services of Aircel by visiting

retailers shop with Distributor Sales Manager (DSM) at different

places of Patna.

2. Tried to understand and analyze the problems of Retailers and

Customers related to Value Added Services.

3. Educated the Retailers and Customers about Value Added

Services.

4. Sold new connections and promote the Value Added Services

like Pocket Internet, Rate Cutters and SMS packs through

Canopy.

5. Tackled the customer’s problems related to the Pocket Internet

during canopy activity.

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6. Started new outlets of aircel at different locations of Patna hence

generating revenues for the company.

7. Participated in telecalling to customers and convinced them to

use our value added services.

8. Took feedback by filling questionnaire and feedback form by

customers in Aircel stores.

OBSERVATIONS

1. The service provided by the AIRCEL related to internet which is

available in Recharge of Rs. 98 is very acceptable by customers.

2. Most of the GPRS users use this plan to use internet in their mobile.

3. Customers query related to Pocket Internet were that they have

problem in GPRS settings installation in their handsets.

4. Most of the customers are not able to use Internet service with their

PC or Laptop. It creates dissatisfaction to customers.

5. The disconnection of the call between callings creates a negative

impact on the customers mind; most of customers are facing this

problem.

6. Many times it happens when customer calls to Customer Care for

solving their problems the phone is not received by any executive.

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7. Aircel provides STD Rate Cutter at Rs. 30 which reduces the STD

calls at Rs 1/min. But our competitor like Idea provides the STD

Rate Cutter at Rs. 54 in which reduces the STD call rate to Rs.

0.75/min.

SUGGESTIONS

1. We should cover the rural areas through better network coverage

because it has more future customers.

2. We should promote the Rs. 29 of Rate Cutter because other service

providers give local rate cutter is more than Rs.29 and call rates are

Rs.60/min.

3. We give free local Aircel to Aircel calling and SMS in Rs.225 but our

competitor gives this service in just Rs. 199, so we should give some

extra talk time with this pack.

4. Aircel is mind only Pocket Internet but we also promote other Value

Added Services like our local rate cutters.

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5. Complaint should be directly registered by sending SMS to a toll free

number provided by the company.

SWOT ANALYSIS

Strength

• Aircel provides Low call rates like Re.1 for first minute, 60p. for

next another minute and 40p. for rest of the call duration in a

continue call.

• Low rate of Rate Cutters vouchers like Rs.29 and Rs. 49.

• All the rate cutters vouchers works in BIHAR.

• 300 local and national SMS at just Rs.27 only where other

competitors provides only local SMS at this price. Moreover 2000

local SMS at just Rs. 60 only.

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• Minimum Rate of Internet GPRS service at only Rs.98 (POCKET

INTERNET) for 30 days.

• Aircel provides voucher of Rs.14 of internet voucher for the validity

of 3 days in which the customers can access the internet in their

handsets and PC and check the service of Aircel.

• Unlimited surfing and Downloading are free with PC.

• Aircel provide unlimited calling and sms on the same network with

the recharge of Rs 225 only and also the customer’s get local calls at

50 paisa only and STD in just 1 Rupee only.

• Aircel give 100 local minutes only at Rs. 55 and can use to all

network but our other competitors give these minutes to only own

network.

• Aircel provides 65 minutes in just 65 Rs. Only.

Weakness

• Network problem in main Patna City.

• There is no network coverage in rural areas.

• Problem in internet speed on computer.

• Service problem like some customers complained that they already

recharged with Rs 98 and received GPRS settings but they are not

able to access internet.

Opportunity

• Indian market is too vast that we can grab this opportunity and we

can spread our services to maximum customers.

• Can cover the rural area to mature potential from that area.

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• There are so many opportunities in value added services.

• If Aircel provide a proper service and speed of GPRS internet for

our customers then it will be very beneficial for our good sales.

• There are so many opportunities in value added services like 98 and

14.

• At this time limited numbers of people are using internet services

and we are providing this service at a very low cost in order to

increase our customer base we need to improve the quality of the

service.

Threats

• Customers are facing many problems with the network and

unsatisfied with services which could lead to drawbacks of

connections.

• STD rates are high. We have to reduce STD rates or reduce the rate

of STD rate cutter because other competitors like idea are providing

STD rate cutter in just Rs 54 and the STD rates is 75 paisa/min.

• Customers are facing low speed of internet service of our pocket

internet.

• Some customers are access the pocket internet with mobile but they

are unable to connect it with PC.

• Aircel is providing our services at very low cost which could be a

threat for us if any competitor took advantage and start giving these

services at same or low cost then we can loose our present and future

customers.

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ANNEXURE

1. Which Mobile service you use?

A).Aircel B).Airtel C).Idea

D).Vodafone E).BSNL F).Reliance GSM

2. Are you aware of our Pocket Internet?

A). Yes B). No

3. Are you using our Pocket Internet?

A).Yes B). No

4. Are you satisfied with the speed of our Pocket Internet?

A).Yes B). No

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5. Are you getting information about schemes/offers given by

company?

A).Mostly B). Sometimes C). Never

6. What is your opinion about call charge of Aircel?

A).Satisfied B).highly satisfied C).Dissatisfied

7. How do you feel about the schemes offered in Aircel?

A).Satisfied B).Highly satisfied C). Dissatisfied

8. How do you feel about the schemes offered in Aircel?

A).Satisfied B)Highly satisfied C).Dissatisfied

9. Which features of your service provider you use most?

A). Voice calls B).Text Messages

C).GPRS D).Others

10.Are you updated with latest offers & schemes by your service

provider?

A).Yes B).No

11.Are you satisfied with the amount of information provided by

your service provider?

A).Satisfied B).Highly satisfied C).Dissatisfied

12.How is the customer service of call centre in terms of response

time and hold time?

A).Excellent B) Good C). Average D).Poor

13.Any improvement suggestions regarding Aircel.

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BIBLIOGRAPHY

www.aircel.in

www.wikipedia.com

www.mobileindia.info

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www.mobigyaan.com

www.telecomtalk.info

Thank You97

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