A Project Study Report

ON

MBA

AIRTEL

MARKETING STRATEGIES

OFAIRTEL

ARYA INSITUTE OF ENGG. & TECHNOLOGY JAIPUR

SUBMITTED BY :- SUBMITTED TO :- SAMEER AGARWAL M/S YAMINI SARASWAT MBA II sem Lecturer MBA Deptt.

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on “MARKETING

STRATEGIES OF AIRTEL”. The work would not have been possible to

come to the present shape without the able guidance, supervision and help to me

by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance

received by my organizational guide M/S Yamini Saraswat convey my heartful

affection to all those people who helped and supported me during the course, for

completion of my Project Report.

SAMEER AGARWAL

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TABLE OF CONTENTS

1. OBJECTIVE OF THE STUDY 4

2. INTRODUCTION 5

3. TRENDS IN MOBILE COMMUNICATIONS 22

4. EXECUTIVE SUMMARY 30

5. COMPANY BACKGROUND 35

6. MARKETING & BUSINESS TOOLS ADOPTED BY AIRTEL 55

7. DATA ANALYSIS 57

8. FINDINGS 70

9. CONCLUSION 71

10.BIBLIOGRAPHY 72

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OBJECTIVE OF THE STUDY

To study the consumer trends in telecommunication

sector.

To study consumer decision-making & preferences.

To study marketing strategies adopted by Airtel.

To study the market potential.

To study the market potential.

To understand the needs of different consumer segments.

Comparative study of different mobile companies.

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TELECOM HISTORY SINCE 1842 TILL NOW………..”

With the dramatic changes in interpersonal

communication over the past decade, Internet messaging has

emerged as the primary medium for transferring information

quickly, inexpensively, and reliably. However, the growing

popularity of wireless telephones has added another dimension

to the communications equation—mobility. As more Indians rely

on cellular communication, this market is expected to see

explosive growth over the forecast period.

Let’s have a review of telecommunication History:-

Telecom history

1842: Wireless by conduction

1843: Early electromagnetic research, wireless by induction

1865: Induction and Dr. Loomis

Early radio discoveries

1879: D.E. Hughes and the first radio-telephone reception

1880: The photo phone and the first voice radio-telephone call

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1880 to 1900: Radio development begins in earnest

1910: The first car-telephone

1924: The first car-mounted radio-telephone

1937: Early conventional radio-telephone development

The modern era begins

1946: The first commercial American radio-telephone service

1947: Cellular systems first discussed

1948: The first automatic radio telephone service

1969: The first cellular radio system

1973: The Father of the cell phone

1978: First generation analog cellular systems begin

1980: Growth of Japanese cellular development

1981: NMT -- the first multinational cellular system

1982: The rise of GSM

1990: North America goes digital: IS-54

Prehistory (Birth to Bell Labs, 1924)

While puzzling over the mysteries of radio, many

inventors worked concurrently on power generation,

telegraphs, lighting, and later, telephone. The thorough

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understanding of electricity required to produce a reliable,

practical radio system took a long time and happened in

different phases.

In 1820, Danish physicist Christian Ousted discovered

electromagnetism, the science that could help generate

electrical power and, if fully understood and applied, usher in

the era of telecommunication.

Michael Faraday - 1791 to 1867

In 1821 Michael Faraday reversed Oberstar’s experiment

and in so doing discovered induction. This helped him build the

world's first electricity generator. He worked on different

electrical problems in the next ten years, eventually publishing

his results on induction in 1831.

Joseph Henry - 1797 to 1878

In 1830 the great American scientist Professor Joseph

Henry transmitted the first practical electrical signal; showing

that electromagnetism could do more than just create current

or pick up heavy weights -- it could communicate. In a stunning

demonstration in his Albany Academy classroom, Henry created

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the forerunner of the telegraph. While Henry did not pursue

electrical signaling, he did help someone who did. And that

man was Samuel Finley Breese Morse.

Samuel Morse - 1791 to 1872

In 1837 Samuel Morse invented the first practical

telegraph, applied for its patent in 1838 and was finally granted

it in 1848. Joseph Henry helped Morse build a telegraph relay or

repeater that allowed long distance operation. The telegraph

brought the country closer and eventually the world. Morse also

experimented with wireless, not by passing signals though the

atmosphere but through the earth and water. Without a cable.

Wireless by conduction

On October 18, 1842, Morse laid wires between

Governor's Island and Castle Garden, New York, a distance of

about a mile. Part of that circuit was under water. But before he

could complete this demonstration a passing ship pulled up his

cable, ending it seemed, his experiment. Undaunted, Morse

proceeded without the cable, passing his telegraph signals

through the water itself. This is wireless by conduction.

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Over the next thirty years most inventors and

developers concentrated on wire line telegraphy, that is,

conventional telegraphy carried over wires suspended on poles.

Few tinkered exclusively with wireless since a basic radio

theory had not yet been worked out. Telegraphy, however, did

produce a good understanding of wireless by induction since

wires ran parallel to each other and often induced rogue

currents into other lines.

Early electromagnetic research

In 1843 Faraday began intensive research into

whether space could conduct electricity.

In 1864 Maxwell released his paper "Dynamical

Theory of the Electromagnetic Field" which concluded that

light, electricity and magnetism were all related and that all

electromagnetic phenomena travelled in waves.

Induction and Dr. Loomis

In 1865, a dentist Dr. Mahlon Loomis of Virginia

may have been the first person to communicate through

wireless via the atmosphere. Between 1866 and 1873 he

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transmitted telegraphic messages at a distance of 18 miles. At

one location he even flew a metal-framed kite on a metal wire,

perhaps taking inspiration from Benjamin Franklin. At another

location a similar kite picked up these signals and noted them

with a galvanometer.

Early radio discoveries

Maxwell's 1864 conclusions were distributed around

the world and created a sensation. But it was not until 1888

that Professor Heinrich Hertz of Bonn, Germany, could produce

and detect radio waves consistently and reliably.

On November 22, 1875, while working on acoustical

telegraphy, a science close to telephony, Thomas Alva Edison

noticed unusual looking electro-magnetic sparks.

D.E. Hughes and the first radio-telephone reception

From 1879 to 1886, London-born David Hughes

discovered radio waves but was told incorrectly that he had

discovered no such thing. Discouraged, he pursued radio no

further.

Hughes noticed a clicking noise in his home built

telephone each time he worked using his induction balance, a

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device now often used as a metal detector. He transmitted

signals from one room to another in his house in London. But

since the greatest range there was about 60 feet, Hughes took

to the streets with his telephone, intently listening for the

clicking produced by his clockwork transmitter, gradually

diminishing until it no longer could be heard.

Alexander Graham Bell was the man who invented the

telephone and made the first call on a wired telephone to

Thomas Watson. Bell was also first with radio.

1888 onwards: Radio development begins in earnest

In 1888 the German, Heinrich Hertz, conclusively

proved Maxwell's prediction that electricity could travel in

waves through the atmosphere. Unlike Hughes, the extensive

and systematic experiments into radio waves that Hertz

conducted were recognised and validated by inventors around

the world.

Jagadish Chandra Bose demonstrated electromagnetic waves in

1895 "by using them to ring a bell remotely and to explode

some gunpowder".

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Marconi established the first successful radio system.

In 1901, his radio-telegraph system sent signals across the

Atlantic Ocean. Ships were the first wireless mobile platforms.

In 1901 Marconi placed a radio aboard a Thorny croft steam-

powered truck, thus producing the first land-based wireless

mobile transmitting data, not voice.

In December 24, 1906, Reginald Fessenden

accomplished the first radio bandwave communication of

human speech over a distance of 11 miles, from Brant Rock,

Massachusetts, to ships in the Atlantic Ocean. Radio was no

longer limited to telegraph codes, no longer just a wireless

telegraph, but a means of verbal communication.

The first car-telephone

From 1910 onwards, Lars Magnus Ericsson, the man

who founded Ericsson in 1876, and his wife Hilda, regularly

worked the first car telephone. Access was not by radio, instead

there were two long sticks, like fishing rods, handled by Hilda.

She would hook them over a pair of telephone wires, seeking a

pair that was free. When they were found, Lars Magnus would

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crank the dynamo handle of the telephone, which produced a

signal to an operator in the nearest exchange.

Around the same time, the triode tube was developed,

allowing far greater signal strength to be developed both for

wireline and wireless telephony. No longer passive like a crystal

set, a triode was powered by an external source, which

provided much better reception and volume.

Later, with Armstrong's regenerative circuit, tubes were

developed that could either transmit or receive signals, were

stable and powerful enough to carry the human voice and

sensitive enough to detect those signals in the radio spectrum.

In 1919, three firms came together to develop a wireless

company that one day would have a reach across the globe.

Heavy equipment maker ASEA, boiler and gas equipment

maker AGA and telephone manufacturer LM Ericsson, formed

SRA Radio, the forerunner of Ericsson's radio division.

The first car-mounted radio-telephone

Bell Laboratories claims to have invented the first

version of a mobile in 1924. It was a two-way, voice-based

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radio-telephone and the adjoining photograph from their site

certainly seems to confirm it.

History of cellular mobile telephony: 1982 to

2001

1980 - First cellular phones began to appear

1982 - Nordic Mobile Telephony (NMT) standard

1983 - American Mobile Phone System (AMPS) standard

1986 - Nordic Mobile Telephony (NMT) 900 MHz

1991 - Commercial launch of the GSM service

1993 - Coverage of main roads GSM services start outside

Europe

1994 - Japanese Digital Cellular (JDC)

1996 - USA Personal Communications Systems (PCS)

1982 - The beginning

During the early 1980s, analog cellular telephone

systems experienced rapid growth in Europe, particularly in

Scandinavia and the United Kingdom, but also in France and

Germany. Each country developed its own system, which was

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incompatible with those of others, in equipment and operation.

This was an undesirable situation, because not only was the

mobile equipment limited to operation within national

boundaries, but also limited to the market for each type of

equipment. This scenario in a unified Europe was undesirable.

The Europeans realized this early on, and in 1982, the

Conference of European Posts and Telegraphs (CEPT) form a

study group called the Group Special Mobile (GSM) to study and

develop a pan-European public land mobile system. The

proposed system had to meet certain criteria, which included:

1. Good subjective speech quality.

2. Low terminal and service cost.

3. Support for international roaming.

4. Ability to support handheld terminals.

5. Support for a range of new services and facilities.

6. Spectral efficiency

7. ISDN compatibility.

Nordic Telecom and Netherlands PTT proposed to

the CEPT the development of a new digital cellular standard

that would cope with the ever-burgeoning demands on

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European mobile networks. The European Commission (EC)

issued a directive which required member states to reserve

frequencies in the 900 MHz band for GSM to allow for roaming.

1986 - Main GSM radio transmission techniques were chosen.

1987 - September - 13 operators and administrators from 12

areas in the CEPT GSM advisory group signed the charter GSM

(Groupe Spéciale Mobile) MoU "Club" agreement, with a launch

date of 1 July 1991.

The original French name Groupe Spéciale Mobile was changed

to Global System for Mobile communications; but the original

GSM acronym remains.

GSM specifications were drafted.

1989 – 1998

In 1989, GSM responsibility was transferred to the

European Telecommunication Standards Institute (ETSI), and

phase I of the GSM specifications was published in 1990.

Commercial services started in mid 1991, and by 1993 there

were 36 GSM networks in 22 countries, with 25 additional

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countries like South Africa, Australia and many Middle and Far

East countries opting for GSM. By the beginning of 1994, there

were 1.3 million subscribers worldwide.

The developers of GSM chose an unproven (at that

time) digital system, as opposed to the then standard analog

cellular systems like AMPS in the United States and TACS in the

United Kingdom. They had faith in the advancements in

compression algorithms and digital signal processors to allow

the fulfillment of the original criteria and the continual

improvement of the system in terms of quality and cost.

The European Telecommunications Standards Institute

(ETSI) defined GSM as the internationally accepted digital

cellular telephony standard.

1990

Phase 1 GSM 900 specifications were frozen

DCS adaptation started.

Validation systems implemented.

First GSM World congress at Rome had 650 participants.

1991

First GSM specification was demonstrated.

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DCS specifications were frozen.

GSM World Congress at Nice had 690 participants.

1992

January - The first GSM network operator was Oy Radiolinja Ab

in Finland.

December 1992 - 13 networks were on air in 7 areas.

GSM World Congress at Berlin had 630 participants.

1993

GSM was demonstrated for the first time in Africa at Telkom '93

in Cape Town.

Roaming agreements between several operators were

established.

By December 1993, 32 networks were on air in 18 areas.

GSM World Congress at Lisbon progressed with 760

participants.

Telkom '93 was held in Cape Town. First GSM systems were

shown.

1994

First GSM networks in Africa were launched in South Africa.

Phase 2 data /fax bearer services were launched.

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Vodacom became the first GSM network in the world to

implement data/fax.

GSM World Congress at Athens drew 780 participants.

December 1994 -- 69 networks were on air in 43 areas.

1995

GSM MOU was formally registered as an association registered

in Switzerland with 156 members from 86 areas.

GSM World Congress at Madrid attracted 1400 participants.

December 1995 - 117 networks were on air in 69 areas.

Fax, Data and SMS roaming started.

GSM phase 2 standardisation was completed, including

adaptation for PCS 1900.

First PCS 1900 network was shown live 'on air' in the USA.

Telecom '95, Geneva -- Nokia shows 33.6 kbps multimedia data

via GSM.

Namibia goes on-line.

Ericsson 337 wins GSM ‘phone of the year’.

US FCC auctioned off PCS licenses.

1996

December 1996 - 120 networks were on air in 84 areas.

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GSM World Congress was held in Cannes.

GSM MOU Plenary was held in Atlanta GA, USA.

8K SIM was launched.

Pre-paid GSM SIM cards were launched.

Bundled billing was introduced in South Africa.

Libya goes on-line.

Option International launches the world's first GSM/Fixed-line

modem.

2001

Feb -- GSM Conference held in Cannes.

By May 2001 there were 500m GSM 900/1800/1900 users

worldwide.

16 billion SMS messages were sent in April 2001.

By April, 500 million people are GSM users.

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“Trends in Mobile

Communications”

The growth and penetration of sophisticated digital

communication systems, infrastructures, and services, has

been increasing constantly over the last decade. Examples of

these services are the Internet, electronic mail, multimedia,

pagers, PDA's, and mobile telephony. From marginal

penetration 15 years ago, these systems and services are

becoming a commodity in both professional and consumer

markets worldwide. The developments in these fields are still

going strong. In particular, rapid advances - both in technology

and services - can currently be observed in wireless and mobile

systems that support the communication of different media,

such as data, speech, audio, video and control.

Current wireless network and mobile phone services roll-

out is centered around four available technologies, namely

WAP, UMTS, Bluetooth, and mobile positioning systems. The

wireless application protocol (WAP), initially carried by second

generation GSM and in the future by third generation UMTS

wireless networks, will turn the mobile phone into a networked

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smart-phone capable of low to medium data rate Internet

functionalities. Bluetooth will allow for short-range data

communication between consumer appliances in a domestic

environment. Positioning systems will become integral part of

mobile phones such that services can be made dependent on

the location of the user in the network.

When projecting the progress in mobile networks and

services into the future, three developments are of importance.

In the first place, we can observe that more and more mobile

phone-like devices start to include accessories such as a small

keyboard, a display, and a speech interface. Such

communication and information-oriented systems are emerging

as hybrids between the mobile phone and the wireless laptop

personal computer. With higher bit rates supporting more

advanced services, the integration of the personal computer

and personal communication devices will be pushed even

further.

In the second place, we observe that computing resources

are becoming ubiquitously - that is everywhere and at all time -

available. We will soon live in an environment that supports us

by providing ubiquitous Computing for a wide variety of tasks

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and services. Daily life consumables, durable products and

services already contain an ever-increasing number of sensors,

actuators, processing units, and (embedded) software. The

personal computer has entered daily life as a necessary

commodity, and the development of sophisticated

communication systems in today's society relies heavily on the

availability of computation resources.

Finally, we observe that communication and computing is

becoming increasingly personal. The device (and therefore the

user) is always on-line, the user is identifiable, the device can

be personalized, and the system knows about the user’s

position.

“Cellular Mobile Pricing Structures and

Trends”

Successful growth and diffusion of mobile communication

services is focusing greater attention on how mobile relates to

fixed networks. Accordingly, it is necessary for regulatory

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authorities to review current frameworks in those instances

where regulation might impede the offering of certain pricing

structures, such as calling party pays. This issue is critical in

putting fixed and mobile networks on an equal footing, so the

potential for competition between networks can be exploited.

Testing the demand for new pricing structures can be left to the

market. Successful growth and diffusion of mobile

communication services is focusing greater attention on how

mobile communication relates to the Internet and electronic

commerce. This report reviews and benchmarks the pricing of

emerging services such as short message services. These

services are the harbingers of? third generation? information

services over mobile networks, and policy makers need to

review current regulatory frameworks to enhance pricing

innovation and competition in the provision of these services.

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Individual customization

An important trend in our society is agility or mass

individualization. Consumer behavior is much more volatile,

much less predictable and increasingly concerned with instant

gratification. The expectation is that in due course this trend

towards individualization will become a more important factor

in the emerging markets too, particularly in the urban areas. As

well as setting quality standards for products, this attitude also

demands delivery at the right time and in the right place. At

any moment, wherever the consumer may be, it has to be

possible to satisfy his or her requirements; it is a question of

the consumer as a "moving target" and how we can increase

our chances of "scoring a hit".

In modern thinking about categories of consumers, every

consumer has something of this instant consumer in his or her

make-up, alongside other possible descriptions, such as

"rational", "social" and "responsible". What's more, this can

vary according to the product category. One moment,

moreover, this instant consumer will be demanding products on

the basis of flavor, convenience or cheapness, and in the next

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breath will be voicing concerns about the environment, animal

welfare or his or her own health. The likelihood is that in the

long term health, the environment and animal welfare will be

significant factors in the concept of quality, as safety already is.

Changes in consumption patterns are an important factor

in this development. While the retail trade is evolving from

supermarket to household service provider in response to mass

individualization, consumers are increasingly also obtaining

their food through other outlets: company canteens, take-away

meals, snack bars, old people's homes etc. "Young couples" in

Europe are rapidly moving towards the situation that already

exists in the United States, where 50% of the food consumed is

prepared outside the home. This places different demands on

products in terms of keeping qualities (shelf life), convenience

and presentation.

Consumer-driven technology development

These trends in the market and among consumers

generate a demand for a more differentiated and more rapidly

changing product range and also call for a different approach to

technology development (dedicated production systems). In the

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future there will have to be product development that takes the

dynamic of the market and the divergent wishes of the

consumers as its starting point and uses the technologies of the

future: biotechnology, separations technology, sensor

technology and modern information technology (IT). To achieve

this, product development will have to be tackled in a more

structured way, and knowledge deriving from different areas of

research will have to be integrated more effectively. The

development of sensor technology in the agro sector, for

instance, requires the integration of materials technology,

biotechnology and process technology. New scientific

developments also provide interfaces through which the sector

may respond to wishes relating to health: both the information

about genetic aspects and the new insights into bioactive

components - substances that, in low concentrations, affect

human health - offer interesting prospects of made-to-measure

food!

In the future, "made-to-measure food" will also mean

"food produced in a way that the public finds socially

acceptable". Such aspects as the environment, animal welfare

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etc. will play a major role. This will have to be specifically taken

into account in the development of technology.

From chains to flexible networks

As well as imposing requirements in terms of technology

development, trends such as mass individualization call for a

responsive answer to a sharply fluctuating market demand.

This places considerable demands on the organization of

agricultural production chains. The full vertical integration of

links in a chain can mean a loss of flexibility. It would appear to

be more efficient to opt for a continuation of the development

of the chain concept; leading to responsive networks that

combine the advantage of co-ordination with the flexibility of

more loosely linked organizations. These independent

organizations work closely together in the flow of goods along

the chain in order to achieve the desired "customer value" at

the lowest possible cost.

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“EXECUTIVE SUMMARY”

Profile of: Mr. Sunil Mittal, Executive Director and Chief

Executive Officer Airtel Mobile Communications Ltd.

Mr Rajan Swaroop is a qualified professional with over 21 years

of working experience in Automotive, Telecom and IT

industries.

Mr. Swaroop is a graduate of Mechanical Engineering from IIT

Delhi and Post Graduate in Management from Indian Institute of

Management, Ahmedabad.

In the last 9 years in Escorts, he has handled various roles

including Head of Strategic Planning and Investment at

Corporate Office. He was the Director & CEO of Telecom

Equipment manufacturing company, Escorts Communications

Limited and currently as CEO of a set of Internet Services

Companies - Airtel Limited.

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Whilst in the strategy role, Mr Swaroop was involved in

setting up of Airtel; in Escorts Communication, he was involved

in a turn around; whilst in Airtel, four new businesses were set

up.

Prior to Escorts, Mr Swaroop spent six years in

operating roles with automotive and light engineering company

like MICO (subsidiary of Robert-Bosch) and Metal Box. Another

six years was spent in the IT Industry with Computer Point,

where he was responsible for business development, marketing

and subsequently, as a profit center head.

During these years, he has also been associated with

education exchange programs with international business

schools such as Kellogg's Business School, North Western

University and Georgetown University, New York.

He is interested in reading, gardening, listening to

music etc. His wife, Poonam has been in advertising and

marketing field for 15 years with leading advertising companies

and currently involved in supporting some social service

organisations.

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Profile of: Mr. Rajan Dutta, Chief of HR & TQM

Mr. Rajan Dutta is an Economics Honours Graduate and an

MBA. He has also done Post Graduate Diploma in HRD from

Ahmedabad and in Training & Development from ISTD, Delhi. A

specialist Trainer, Job Evaluator & Total Quality Management

facilitator, Mr. Dutta has successfully introduced and

implemented some of the HR & TQM interventions in

organizations and professional bodies that he has been

associated with.

He has held senior level positions during his last 20 years

of work in companies like Vam Organics, Modi Xerox and RPG

Group where he was the Group Vice-President-HR

He is currently the Chief of HR & TQM in Airtel Mobile

Communications Ltd. Mr. Dutta is the Chairman of National

Centre for Quality Management (NCQM) Delhi, Executive

Committee Member of Delhi Management Association. He was

the past President of National HRD Network-Delhi and currently

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the Board Member of HRD Network, National Chapter. He is

also a member and speaker to various HRD Committees like CII,

FICCI, ASSOCHAM, AIMA and several other professional and

educational institutions in India and abroad.

He has authored and contributed to various newspapers,

magazines and books in

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COMPANY BACKGROUND

Airtel comes to you from Bharti Cellular Limited - a part

of the biggest private integrated telecom conglomerate,

Bharti Enterprises.

Bharti provides a range of telecom services, which

include Cellular, Basic, Internet and recently introduced

National Long Distance. Bharti also manufactures and exports

telephone terminals and cordless phones. Apart from being the

largest manufacturer of telephone instruments in India, it is

also the first company to export its products to the USA. Bharti

is the leading cellular service provider, with a footprint in 15

states covering all four metros and more than 7 million satisfied

customers.

VISION:

To make mobile communications a way of life and be the

customers' first choice.

MISSION:

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We will meet the mobile communication needs of our

customers through:

• Error- free service delivery

• Innovative products and services

• Cost efficiency

• Unified Messaging Solutions

CORE VALUE:

We will delight our customer with our simplicity, speed &

innovation.

We will honours our commitment.

We will follow the highest standard of professional

integrity & behaviour.

We will respect individual, build winning teams and lead

by example.

We will create a fun filled and friendly workplace.

Airtel Mobile Communications Limited

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Bharti Tele-Ventures Limited was incorporated on July 7,

1995 for promoting investments in telecommunications

services. Its subsidiaries operate telecom services across India.

Bharti Tele-Ventures is India's leading private sector provider of

telecommunications services based on a strong customer base

consisting of 7.42 million total customers, which constitute,

6.76 million mobile and 657,000 fixed line customers, as of

April 30, 2004.

Bharti Tele-Ventures vision for its mobile business is “To

make mobile communications a way of life and be the

customers first choice”.

The mission is to meet the mobile communication needs of the

customer through 1) error free service 2) Innovative products

and services and 3) cost efficiency. The Company’s strategic

objective is to consolidate its leadership position amongst the

mobile service providers in India.

The Indian mobile market, according to the COAI, has increased

from approximately 1.2 million subscribers as of March 31,

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1999 to approximately 29.21 million subscribers as of June 30,

2004.

Despite this rapid growth, the mobile penetration rate in India,

at approximately 2.8% as of June 30, 2004, is significantly

lower than the average mobile penetration rate in other Asian

and international markets.

The number of mobile subscribers in India is expected to show

rapid growth over the next four years. By 2006 it is projected at

50 million by COAI and 44 million by Gartner.

Bharti Tele-Ventures believes that the demand for mobile

services in India will continue to grow rapidly as a result of the

following factors:

         lower tariffs and handset prices over time;

         growth in pre-paid customer category;

         greater economic growth and continued development

of India's economy;

         higher quality mobile networks and services; and

         greater variety and usage of value added services.

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Bharti Tele-Ventures, through its subsidiary has the licenses to

provide GSM services in all the twenty-two telecom circles in

India. It proposes to consolidate all its subsidiaries providing

mobile services under Bharti Cellular Limited.  

As of June 30, 2004, approximately 92% of India's total mobile

subscriber market resided in the Company's sixteen mobile

circles, which collectively covered only 56% of India's land

mass.

MOBILE FOOTPRINT

The map below depicts the location of, and provides certain

information for, Bharti Tele-Ventures' existing mobile circles in

India:

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SOURCE:

(1) Population estimates are as per National Census, 2001 and

are as of March 1, 2001. The population for Uttar Pradesh

(West) circle is approximately 37% of the total population for

the state of Uttar Pradesh. 

(2) Mobile subscriber statistics are as of June 30, 2004 and are

based on data released by COAI. Mobile market size comprises

the total number of mobile subscribers of all the service

providers in a circle.

(3) Demographics of Maharashtra and Tamil Nadu do not

include demographics of state capitals (metros) Mumbai and

Chennai respectively.

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(4) Demographics of Haryana does not include Faridabad &

Gurgaon as they are included in Delhi & NCR. Similarly

demographics of Uttar Pradesh (West) & Uttaranchal does not

include Noida & Ghaziabad as they are included in Delhi NCR.

The significant growth in the Company's mobile business has

been through a combination of organic growth and acquisitions

of additional licenses and has been summarized below. The

information given below is for the total market and is not

representative of our market share or network coverage. 

1) Comprises the circles of Delhi and Himachal Pradesh.

2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka

and Andhra Pradesh.

3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka,

Andhra Pradesh and Chennai.

4) Comprises the sixteen operational circles of Bharti Tele-

Ventures.

5) Based on data released by the COAI on the total number of

persons subscribing to mobile services in our licensed areas. 

MOBILE STRATEGY

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 Capture maximum telecommunications revenue potential with

minimum geographical coverage to maximise its revenues and

margins.

 

Build high quality mobile networks by deploying state-of-

the-art technology to offer superior services.

 

Use the experience it has gained from operating its

existing mobile networks to develop and operate other

mobile networks in India and to share the expertise across

all of its existing and new circles.

 

Attract and retain high revenue generating customers by

providing competitive tariffs, offering high quality

customer support, proactive retention programs and

roaming packages across all of its mobile circles. 

 

Provide affordable tariff plans to suit each segment of the

market with a view to expand the reach, thereby

increasing the mobile customer base rapidly.

43

KEY HIGHLIGHTS OF JAN-04 ARE AS FOLLOWS:

Industry additions were up from the last month's 12.71

Lacks to 13.69 Lacs this month. In percentage terms, this

translates to a increase of 8 % in net adds over last month.

The number of subscribers moved up from 21.99 Mn at the

end of Dec-03 to 23.36 Mn at the end of Jan-04, a growth of

6.22 %.

All India monthly growth in subscriber numbers was 6.13 %.

The growth elsewhere was :

· Metros – 5.28 %

· A circles – 6.22 %

· B circles – 7.75 %

· C circles – 3.43 %

· All Circles Total – 6.67 %

· Airtel – 6.39 %

B Circle category has shown the highest growth in

subscriber base on an individual basis this month.

At Airtel, we have always sought to enhance value for you as

a customer by providing you the most relevant and easy to use

44

services through innovation and by harnessing the latest

developments in technology. In line with this strategy, we have

constantly introduced innovative products and services to suit

your unique needs and wants.

Our services range from CLI to Music Messaging to Lost Call

Alerts – all to serve you better.

Some services which we are providing :-

SMS

Astrology

Music Messaging

Ring tones

Dial-a-Ring tone

Logos

Blinking SMS

Flash SMS

Jokes

Love Logos

Caller Line

Identification

Voice Mail

Itemised Billing

Inquiry Services

Picture Messages

Yahoo Dating

Yahoo! Mail

Yahoo Messenger

Group Messaging

Mobile Banking

News Updates

45

“COMPANY’S PLANS”

PREPAID PLANS

Are you wary of committing yourself to a date for making

your bill payments? Is it too much of a bother for you to

remember dates for bill payments? Do you often end up paying

late fees against your monthly utility services bills? Do you end

up spending too much if you have the option to pay the bill

later?

Think over for if one of these represents you, we have a

solution for you. Start thinking prepaid is our advise!

So what exactly is this prepaid! It is simply a way of going

cellular by paying for the talk time in advance. For e.g. if you

feel that you need Rs. 300 worth of talktime for a month, you

can buy a recharge coupon which gives you that much talktime

on your cellphone. Once that money gets exhausted you can

buy another recharge coupon for the same or different

denomination depending on your future need.

46

Prepaid allows you to be in control of your cellular

expenses even while you are spending. You will be surprised

that today In India, Prepaid connections account for almost 60

to 70 percent of the total new entrants into cellular telephony.

That’s because almost every one of us wants to be in control of

our cellular expense.

ADVANTAGES OF PREPAID

Some of the many advantages that you enjoy with Airtel

Pre-Paid...

Total Cost Control

Enjoy the liberty of total cost control with your Airtel Pre-

paid! Re-charge as much as you feel the need to! Now that's

what we call complete freedom!

No Rentals

Buy an Airtel prepaid card without having to pay any rentals!

No deposits

Your Airtel prepaid card comes without you having to pay

47

heafty deposits!

STD/ISD facility till the last rupee

Now experience complete freedom like never before with

Airtel! Our STD/ISD facility allows you to make long distance

calls in India and Overseas from your cellular phone!

Instant Balance Inquiry

Check your talk-time instantly by calling our toll-free

number!

60 second pulse

Airtel provides you with a 60-second pulse rate! Freedom for

you to experience like never before!

Instant Recharge

Avail of instant recharge on your Airtel prepaid card with just

a few simple steps!

24-hour recharge facility

48

With our round-the-clock recharge facility, recharge you

Airtel prepaid card anytime, anywhere!

Caller Line Identification

Call Line Identification gives you the power to know the

phone number of the calling party even before you answer

the call, thus giving you the choice to either reject or take

the call. It provides the added advantage of saving the

incoming number directly in the Handset Phone Book. So

that the next time you want to call the same person, you

don't need to retype his number, simply use your phone

book.

Call Divert, Call Hold and Call Wait

Avail of special services like call waiting, call hold and call

divert – all with your Airtel prepaid card!

Short Messaging Service (SMS)

With Airtel’s Short Messaging Service (SMS), send messages

49

and jokes to your friends and colleagues, anytime anywhere!

SMS based Information Services

With Airtel's SMS based information services; you can get up

to-the-minute cricket scores, order flowers as well as send

couriers or check your daily horoscope!

Voice Mail service

Voice Mail lets you receive messages even when your

handset is switched off or when you are outside the coverage

area. You can listen to your messages whenever you feel

like, from anywhere in the world. Voice Mail can store up to

75 messages, with each message of two-minute duration.

POST PAID PLANS

Airtel welcomes you to a vibrant world of unlimited

opportunities. More exciting, innovative yet simple new ways to

communicate, just when you want to, not just through words

but ideas, emotions and feelings. To give you the unlimited

50

freedom to reach out to your special people in your special

way.

CUSTOMER CARE

Do you need any clarifications on your bills? Do you

have any feedback or query on our Products & services? You

can call us, send us an E-mail or meet us in person. We shall be

glad to help you out in every possible way.

CONTACT US BY PHONE

If you are on Airtel, just call us on 121 your Airtel Prepaid

phone.

If you are on Airtel postpaid, just call us on 9897012345 or

toll free 121 from your Airtel Postpaid phone.

These toll free numbers however, cannot be dialed when

you are roaming.

Airtel launches “Music Messaging” service

Customers can dedicate songs along with their voice messages;

51

Dec. 22, 2003, Merrut : Airtel, one of the leading cellular

operators in Haryana, UP(West) & Uttranchal and Kerala today

announced the launch of a new innovative service called “Music

Messaging”. The service will allow music lovers to listen to the

various songs and then dedicate the same to any other Airtel

mobile subscriber along with a personalized voice message.

For using the service, the customer simply needs to dial

646 from his mobile and follow the voice prompts. This will lead

him to the options Hindi and English songs. There are 10 songs

under each option and the customer can either go on to listen

to the song clippings of 90 seconds each or move on to the

next or previous song. While listening to the song, the

subscriber may choose to dedicate the song to some other

Airtel Subscriber after recording a 10 second long personalized

voice message. The music message will then be received by

the person to whom it has been dedicated as a Voice Message

with the CLI of the sender. Once delivered, the message begins

with the sender’s voice message followed by a 30 second clip

52

of the song that has been dedicated. The charge for the service

is just Rs 7/minute for a 60 second pulse.

Announcing the launch of the service, Mr. N.F.Aibara, COO,

Airtel-Haryana said “The mobile phone today is no longer just a

communication device. Rather it is a driver of self-identity and

creative pursuits especially for the youth segment which

constitutes about 70 % of the new customers that we enrol

every month. We have always sought to provide our customers

with new and exciting services that have been made possible

through innovation and use of latest technology. The launch of

this new service is another step in the same direction as it

enables customers to add a musical edge to their messages-

nothing can be more powerful than a message in one’s own

voice along with a song to suit the situation. I am sure this

service will be liked by all our customers and more specially the

youth”

53

BHARTI CELLULAR FOOTPRINT

Bharti is to first achieve critical mass, then drill deep instead of

spreading thin. Thereafter, it is ready for controlled expansion.

In keeping with this, the company has been providing excellent

service to its subscribers in various states. It controls a portfolio

54

of India's most attractive and contiguous telecom geographies,

including the states of Maharashtra (excluding Mumbai), Goa,

Gujarat, Andhra Pradesh, Madhya Pradesh, Chattisgarh and

Delhi (inclusive of NCR). With a footprint dominating the map of

India, Airtel Cellular accesses over 45% of India's total

telephony potential. With the objective of critical mass

achieved, Airtel Cellular turned to drilling deep.

55

Some Marketing And Business Tools Adopted By

AIRTEL As To Promote Its Activities:

Seminars: seminars are conducted at different places by

the expert time by time to make people aware.

Publicity: publicity is done through various media.

Stalls at famous places: they conduct their stall after a

particular period of time on the famous and public place to

attract them towards themselves.

DSA (Direct Sales Agency)

Print media

Hoarding

56

Banners

Advertisem

Leaflets

Follow ups

57

58

STOCK OF KARAMPURA

Outlet nameAirtel

market %

Competitor's

market%

Airtel

market%

Competitor's

Market%

Airtel Lapu

%

Competitor's

Lapu %

Dashant comm. 40% 60% 45% 55% 41% 59%

Ashish Airlink 67% 33% 45% 55% 45% 55%

New photo comm. 36% 64% 42% 58% 43% 57%

Ringing tone 45% 55% 43% 57% 40% 60%

Harjas comm. 38% 63% 43% 57% 38% 63%

Jasleen comm. 45% 55% 57% 43% 29% 71%

Arun electronics 38% 62% 38% 63% 38% 62%

Aman comm. 42% 58% 40% 60% 38% 62%

Rose comm. 43% 57% 29% 71% 29% 71%

 

TOTAL 45% 55% 43% 57% 37% 63%

59

60

STOCK OF JANAKPURI

Outlet nameAirtel

market %

Competitor's

market%

Airtel

market%

Competitor's

market%

Airtel

Lapu %

Competitor's

Lapu %

Gee communication 43% 57% 40% 60% 33% 67%

B.K.Marketing 64% 36% 50% 50% 40% 60%

Anand mart 61% 39% 9% 91% 41% 59%

Mobile villa 68% 32% 27% 73% 44% 56%

S.k.Agg.TV.cen 80% 20% 40% 60% 44% 56%

Matrix telecom 37% 63% 50% 50% 30% 70%

Gupta properties 58% 42% 38% 62% 45% 55%

M.D.H enterprises 74% 26% 42% 58% 53% 47%

Mobile city 44% 56% 33% 67% 45% 55%

Vishnu electronics 58% 42% 38% 62% 43% 57%

TOTAL 61% 39% 24% 76% 43% 57%

61

62

STOCK OF DELHI CANTT.

Outlet nameAirtel

market %

Competitor's

market%

Airtel

market%

Competitor's

market%

Airtel

Lapu %

Competitor's

Lapu %

Shri Jain&sons 75.00% 25% 53% 47% 60% 40%

Bhatia telecom 75.00% 25% 45% 55% 45% 55%

Praveen jain &sons 70.97% 29% 56% 44% 56% 44%

Mangal general

store64.52% 35% 57% 43% 48% 52%

Jaiswal comm. 72.73% 27% 55% 45% 48% 52%

Nayyar comm. 75.00% 25% 45% 55% 44% 56%

Ankit comm. 62.50% 38% 52% 48% 56% 44%

Jai singh electronics 76.47% 24% 48% 52% 60% 40%

Jain telecom &

watch66.67% 33% 50% 50% 43% 57%

Total 72.27% 28% 49% 51% 54% 46%

63

64

STOCK OF RAMESH NAGAR

Outlet nameAirtel

market %

Competitor's

market%

Airtel

market%

Competitor's

market%

Airtel

Lapu %

Competitor's

Lapu %

Mohan connection 55% 45% 45% 55% 33% 67%

Gogia art gallery 50% 50% 44% 56% 43% 57%

Aman comm. 63% 38% 42% 58% 42% 58%

Sunny telecomm. 44% 56% 33% 67% 31% 69%

Sunny business 26% 74% 47% 53% 40% 60%

Umang telecomm. 43% 57% 36% 64% 67% 33%

Navneet electronics 54% 46% 54% 46% 43% 57%

Kamal telecomm. 56% 44% 42% 58% 43% 57%

Global shopee 56% 44% 56% 44% 29% 71%

Tailex star 45% 55% 40% 60% 38% 62%

TOTAL 50% 50% 43% 57% 40% 60%

65

66

STOCK OF PUNJABI BAGH

Outlet nameAirtel

markt %

competitor's

market%

Airtel

markt%

competitor's

market%

Airtel

Lapu %

competitor's

Lapu %

Magic gallery 46% 54% 40% 60% 31% 69%

Photo world 40% 60% 40% 60% 35% 65%

Baba hommade 42% 58% 63% 37% 36% 64%

Gift avenue 48% 52% 5% 95% 37% 63%

Airfone 36% 64% 45% 55% 29% 71%

Sheetal electronics 43% 57% 35% 65% 36% 64%

Malhotra properties 38% 63% 38% 62% 36% 64%

Star comm. 43% 57% 30% 70% 36% 64%

Malik comm. 43% 57% 37% 63% 39% 61%

Highway international 44% 56% 29% 71% 38% 62%

TOTAL 43% 57% 38% 62% 35% 65%

67

68

STOCK OF PALAM/MAHAVEER ENCLAVE

Outlet nameSingh

enterprises

shri

radha

krishna

tel.

Bharat

stores

Bagga

comm.

Saurabh

comm.

Bhawna

comm.

Naya

ujala

comm.

Kumar

comm.

Laxmi

general

store

Airtel prepaid

connection stock67% 58% 63% 71% 75% 73% 56% 50% 56%

Competitor's stock 33% 42% 38% 29% 25% 27% 44% 50% 44%

Airtel coupon value 42% 40% 33% 33% 42% 40% 60% 40% 50%

Competitor's coupon

value58% 60% 60% 67% 58% 60% 40% 60% 50%

Airtel Lapu value 45% 40% 50% 56% 48% 47% 42% 40% 38%

Competitor's Lapu

value55% 60% 50% 44% 52% 53% 58% 60% 63%

69

70

FINDINGS

MATCH COMPETITORS SCHEMES.

COMMUNICATE THE SCHEMES TO RETAILERS DAILY.

BETTER NUMBERS IN PRE – PAID AS CUSTOMER REQUIRES

CHOICE.

ENHANCE THE SERVICE IN AREAS WITH WEAK NETWORK.

COORDINATION BETWEEN DEPARTMENTS MUST BE

IMPROVED.

THE ZBM & ZSM MUST VISIT THE ‘A’ CLASS RETAILERS

FREQUENTLY.

71

“CONCLUSION”

AIRTEL CONNECTIONS ARE SELLING BECAUSE OF BEST

NETWORK COVERAGE.

GOOD RELATIONSHIP OF FOS. & REATILER IS BEING HELPFUL

IN SELLING.

LARGE MARKET COVERAGE, EASY AVAILABILITY OF

COUPONS.

CUSTOMER CARE NUMBER DOES NOT CONNECTS EASILY

AND EXECUTIVES THERE WERE ALSO NOT AWARE OF THE

SCHEMES.

Websites & Search Engine:

www.airtelworld.com

www.bhartiteleventures.com

72

www.researchandmarket.com

www.info-shop.com

www.smartmobs.com

www.yahoosearch.com

AIRTEL’s reports

Books & magazine on mobile communication

Marketing Management by Philip Kotler

Research Methodology by C.R. Kothari

73

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