Sunshine Education

Plot No: 28/1, Knowledge Park – III

Greater Noida – 201306

Special thank to our respected

teacher-

Prof. Rajesh kumar

Submitted by -
1
 Raveesh kumar
kushwaha

Project Report On Airtel

To Increase The Market Share Of Airtel
In The Assign Territory In Terms of Sales And Visibility

PGDM
Session - 2009 – 2011
Raveesh kumar kushwaha

Under The Guidance Of

Mr. Akhilesh Gupta

Assistance sales manager

Sunshine Education
Plot No: 28/1, Knowledge Park – III

Greater Noida – 201306

2
 ACKN0WLEDGEMENT
I am grateful to AIRTEL & all the staff of my sip company
who help me in my full training process program which I
had done over there giving me there valuable guidance and
advices of this project work.

I also express my sincere gratefulness to my sip center and

my entire College faculty who really helped me to take this
opportunity and given their guidance for my summer
training programme.

Lastly, I am also thankful to god for his blessings, my

parent for providing me support and everything, and my
Friends who always stand at a time of need. And also those
people who helped me directly or indirectly for this project.

Yours Sincerely-

Raveesh kumar
kushwaha

3
 PREFACE

I highly thankful to this enormous technology driven Bharti Group

which provided me a amiable ambiance and motivational senior under
whose tutelage I learnt a lot while I make this project which really going
to be most cherish able event of my life. Seniors motivated me in each
and every step and the work culture helps me to know the corporate
world very closely.

This project report was not a perfunctory one but alive one where
not only to ask to survey the market as a toothless cow but did like
Manager embellished with power and influence here. I suggested certain
plans which are duly implemented .I was free to take decisions up to
certain extent and also did consoling session with distributors, dealers
and FOS & collectors which proved to be beneficial for the company . So
that this project will give you all those activities what are happening in
the market. To make this project rich, true and practical I’ve given a very
much close comparative analysis report that will make awareness to its
reader (managers) of current state of market. I have tried my best to
make this report original not an artificial one. Trust me as you start your
journey with it will enrich your thinking and give knowledge of some
dark and untouched theams of market. Its an effort done by me to
represent the Mirror of market

4
 I gave importance to each and every minor detail
and focused to nuclei details so that the real preface can be presented
before the Bharti Group .In this project there detailed analysis of
distribution of choice and connections likes , dislikes and market
shares that most important aspect of this project is what each and every
individual needs to reach the pinnacle of success that is the motivation.
In this project I dealt with how the dealers can be motivated to sale
Airtel not only existing one but also the new one. It’s my utmost capacity
to make the project enjoyable as well as clear. Several statistics devices
like bar graph, pie charts have been drawn to visualize the situation
hopping the project would give you of immense pleasure and would
help you to understand the market penetration in a proper way.

5
 TABLE OF CONTENTS

1. Introduction (4 - 5)
2. Company profile (8 - 11)
3. Key players in telecom market in india (12)
4. Competitor information (13 - 16)
5. Services offered (16 - 26)
6. Vision and mission (27)
7. Award and Recognition (27 - 28)
8. Milestone (29 - 48)
9. Advantage of prepaid (49 - 52)
10. Shareholding (53 - 54)
11. Major developments (55 - 56)
12. Earnings summary (57 - 59)
13. Research methodology
 Objective of study (60)
 Source of data (60 - 61)
 Technique used for data collection (62 - 63)
 Environmental analysis (63 - 64)
14. SWOT analysis (65 - 69)
15. BCG matrix (70)
16.ANSOFF matrix (71 - 73)
17. Limitation of study (74)
18.Conclusions (75)
19.Problem identification and Recommendations (75 - 80)
20. Bibliography

6
 21. Annexure

Questionnaires

TELECOMMUNICATION

Telecommunication is one of the fastest growing service industries

in the world. While the accent of growth is one the value added
service, such as e-mail, cellular phones etc in the developed
countries. This sector a crucial role in spurring growth, especially
industrial and service, in any economy.

Multinational companies are investing in developing countries

because of huge latest demand. Telephone penetration has reached
saturation levels in the developed world. Telecommunication
historically has been a state initiated and controlled sector in all
countries. The last two decades has witnessed a restricting of the
entire sector across the globe, in terms of privatization and
competition. Opening up of economics and privatization in the
developing countries has triggered influx of foreign capital and
technology.

7
 Bharti Airtel

Type Public
BSE: 532454

Industry Telecommunications

Founded July 07, 1995

Founder(s) Sunil Bharti Mittal

Headquarters New Delhi, India

Key people Sunil Mittal

(Chairman) & (MD)
Sanjay Kapoor
(CEO)

Products Wireless
Telephone
Internet
Satellite television

Revenue   US$ 7.254 billion (2009)

Operating  US$ 2.043 billion (2009)

income

Net income   US$ 1.662 billion (2009)

8
 Total assets   US$ 11.853 billion (2009)

Owner(s) Bharti Enterprises (64.76%)

SingTel (30.5%)
Vodafone (4.4%)

Employees 25,543 (2009)

Website Bharti.com
Airtel.in

COMPANY PROFILE
Bharti Airtel Limited

Bharti Airtel (BSE: 532454) formerly known as Bharti Tele-

Ventures LTD (BTVL) is the largest cellular service provider in India,
with more than 124 million subscribers as of February 2010.With this,
Bharti is now the world's third-largest, single-country mobile operator
and sixth-largest integrated telecom operator. It also offers fixed line
services and broadband services. It offers its TELECOM services under
the Airtel brand and is headed by Sunil Bharti Mittal. The company also
provides telephone services and broadband Internet access (DSL) in top
95 cities in India. It also acts as a carrier for national and international
long distance communication services. The company has a submarine
cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore.

The businesses at Bharti Airtel have always been structured into three
individual strategic business units (SBU's) - Mobile Services, Airtel
Telemedia Services & Enterprise Services. The mobile business provides
mobile & fixed wireless services using GSM technology across 23

9
telecom circles while the Airtel Telemedia Services business offers
broadband & telephone services in 95 cities and has recently launched a
Direct-to-Home (DTH) service, Airtel Digital TV. Shahrukh Khan is the
brand embassador of the mobile company and Kareena Kapoor and Saif
Ali Khan are the brand embassadors of the DTH company. The company
provides end-to-end data and enterprise services to the corporate
customers through its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing
station.

Globally, Bharti Airtel is the 3rd largest in-country mobile operator by

subscriber base, behind China Mobile and China Unicom. In India, the
company has a 24.6% share of the wireless services market, followed by
17.7% for Reliance Communications and 17.4% for Vodafone Essar.In
January 2010, company anonced that Manoj Kohli, Joint Managing
Director and current Chief Executive Officer of Indian and South Asian
operations, will become the Chief Executive Officer of the International
Business Group from 1st April 2010. He will be overseeing Bharti's
overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj
Kohli and will be the CEO with effective from 1st April, 2010.

The total subscrbers is 131,714,243 or 32.86% of the total 404,349,733

GSM mobile connections in India till December 2009; and presently the
Number 1 operator in India.
The company is a part of Bharti Enterprises, and is India's leading
provider of telecommunications services. The businesses at Bharti Airtel
have been structured into three individual strategic business units
(SBU’s) - mobile services, broadband & telephone services (B&T) &
enterprise services. The mobile services group provides GSM mobile

10
services across India in 23 telecom circles, while the B&T business
group provides broadband & telephone services in 90 cities. The
Enterprise services group has two sub-units - carriers (long distance
services) and services to corporate. All these services are provided
under the Airtel brand.

Bharti Airtel Limited, a part of Bharti Enterprises, is India's leading

provider of telecommunications services. The businesses at Bharti Airtel
Limited have been structured into two main strategic business groups -
the Mobility Leaders business group and the Infotel Leaders business
group. The Mobility business group provides GSM mobile services
across India in twenty three telecom circles, while the Infotel business
group provides broadband & telephone services, long distance services
and enterprise services. All these services are provided under the Airtel
brand.

Overview

Creating value for our customers, employees, investors, partners,

vendors and the society at large lies at the root of our fundamental
business strategy. Our core principles of trust and transparency have
come a long way in helping us develop and nurture long-term
relationships with our key stakeholders. Our performance exudes from
our belief in and commitment to the telecom sector; and translates into
creating innovative exciting opportunities for one and all.

THE KEY PLAYERS IN THE TELECOM MARKET IN INDIA

11
 Cellular Service provider:

 Airtel

 Vodafone

 BSNL

 Spice/Idea

 Reliance

 Tata indicom

 Aircel

 MTNL

COMPETITOR INFORMATION

12
Type Limited

Industry Mobile telecommunications

Founded 1994 as Hutchison Essar

Headquarters Mumbai, Maharashtra, India

Products Mobile networks,

Telecom services, Etc.

Owner(s) Vodafone Group (67%)

Essar Group (33%)

Employees 10,000 – March 31, 2009[1]

Website Vodafone India

13
 Type
Subsidiary

Founded
1995

Headquarters
Indore, Delhi, Pune, India

Key people
Chairman: Kumar Mangalam Birla ; MD: Sanjeev Aga
Industry Telecom

Products Mobile operator

http://www.moneycontrol.com/india/news/business/ide
Revenue
a-cellulars-revenue479-/394751

Slogan
An !dea can change your life.
Website www.ideacellular.com

14
 Reliance Communications Limited

Type Public (BSE: RCOM)

Industry Telecommunications

Founded 2004

Headquarters Navi Mumbai, Maharashtra,India

Key people Anil Ambani

(Chairman) & (MD) [1]
(Vice-Chairman Reliance-ADA Group)

Products Wireless
Telephone
Internet
Television

Revenue US$ 4.26 billion (2008)[2]

Net income US$ 1.35 billion (2008)

Total assets US$ 19.31 billion (2008)

Employees 33,000

Website Rcom.co.in

15
 SERVICES OFFERED

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 advice!

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 talk time 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.

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.

Worldwide presence
Airtel is the 5th largest mobile operator in the world in terms of
subscriber base and has a commercial presence in 18 countries.

16
Its area of operations include:

 3 countries in the Indian Subcontinent:

Bangladesh, India and Sri Lanka

 15 countries in Africa:

Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the

Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra
Leone, Tanzania, Uganda and Zambia.

Airtel owns 70 % of Warid Telecom in Bangladesh through a joint

venture. Bharti Airtel Limited will take management control of the
company and its board, and will relaunch the company's services under
its own Airtel brand. The Bangladesh Telecommunication Regulatory
Commi

List of Countries

Airtel operates in the following countries. It should be noted that Airtel

is interimly known as Zain in its newly acquired Africa operations and
will assume the Airtel brand name only in the coming months.

Country Site Remarks

 Bangladesh http://www.waridtel.com.b Warid Telecom
d International LLC, an Abu
Dhabi based consortium,
sold a majority 70% stake
in the company to India's

17
 Bharti Airtel Limited for
US$300 million.[1] Bharti
Airtel Limited will take
management control of the
company and its board, and
will relaunch the
company's services under
its own Airtel brand. The
Bangladesh
Telecommunication
Regulatory Commission
approved the deal on Jan 4,
2010. As of December,
2009 Warid has secured
2.99 million subscribers
and is ranked fourth among
the six operators of
Bangladesh.
Airtel in Burkina Faso is the
dominant player with
 Burkina
http://www.bf.zain.com 1,433,000 customers
Faso
representing 50% market
share.
A pioneer in the Chadian
telecom industry, Airtel in
 Chad http://www.td.zain.com
Chad is the no. 1 operator
with 69% market share.
 Democratic http://www.cd.zain.com
Republic of

18
the Congo
The rapidly growing
mobile sector in Gabon
grew by 16.5 percent from
2007 to 2008 according to
 Gabon http://www.ga.zain.com statistics from the Bank of
Central African States.
Airtel in Gabon has
829,000 customers and its
market share stood at 61%
Airtel in Ghana has over 1
 Ghana http://www.gh.zain.com
million customers.
 India http://www.airtel.in
Airtel Kenya customers
 Kenya http://www.ke.zain.com stand at 2,418,000 million
with 17% market share.
Airtel holds second place in
the mobile telecom market
 Madagasca
http://www.mg.zain.com in Madagascar, has a 39%
r
market share and over 1.4
million customers.
Airtel in Malawi is the
 Malawi http://www.mw.zain.com market leader with a
market share of 72%.
Airtel in Niger is the
 Niger http://www.ne.zain.com market leader with a 68%
market share.
 Nigeria http://www.ng.zain.com
Airtel in Congo is the
 Republic of
http://www.cg.zain.com market leader with a 55%
the Congo
market share.

19
  Sierra
http://www.sl.zain.com
Leone
 Sri Lanka http://www.airtel.lk
Airtel in Tanzania is the
 Tanzania http://www.tz.zain.com market leader with a 38%
market share.
Airtel in Uganda stands as
 Uganda http://www.ug.zain.com the no. 2 operator with a
market share of 38%
 Zambia http://www.zm.zain.com

Services
Mobile Services
Airtel is the name of the company's mobile services brand. It operates in 18
countries providing. It is the 5th largest mobile operator in the world in terms
of subscriber base. Airtel's network consists of 3G and 2G services
depending on the country of opeartion.

Airtel
In India, the company's mobile service is branded as Airtel. It has
nationwide presence covers 71% of the current population (as of
Financial Year 2007).

On 19 October 2004, Airtel announced the launch of a BlackBerry

Wireless Solution in India. The launch is a result of a tie-up between
Bharti Tele-Ventures Limited and Research In Motion (RIM).

The Apple iPhone 3G was rolled out in India on 22 August 2008 via
Airtel & Vodafone. Both the cellular service providers rolled out their

20
Apple iPhone 3GS in the first quarter of 2010. However, high price and
contract boundation again made it nearly impossible for both the
service providers to make it a success as much as the iPhone is
successful in other markets of the world.

As of May 18, 2010, 3G spectrum auction has ended and Airtel will pay
the Indian government Rs. 12,295 crores for spectrum in 13 circles, the
most amount spent by an operator in this auction. Airtel won 3G
licences in 13 telecom circles of India: Delhi, Mumbai, Andhra Pradesh,
Karnataka, Tamil Nadu, Uttar Pradesh (West), Rajasthan, West Bengal,
Himachal Pradesh, Bihar, Assam, North East, Jammu & Kashmir. It plans
to launch 3G services in the October 2010.

Subscriber Base in India

The Airtel subscriber base according to COAI - Cellular Operators

Association of India as of January 2010 was:

 Chennai - 4,656,675
 Delhi - 1,822,208
 Mumbai - 3,003,201
 Kolkata - 2,746,100
 Madhya Pradesh - 6,212,992
 Gujarat - 5,112,601
 Andhra Pradesh - 12,425,791
 Karnataka - 12,153,094
 Tamil Nadu - 8,033,771
 Kerala - 3,076,728
 Punjab - 4,581,187

21
  Maharashtra - 6,518,134
 Uttar Pradesh - 3,653,016
 Uttar Pradesh East - 8,462,726
 Rajasthan - 9,925,141
 West Bengal & Andaman and Nicobar Islands - 5,070,213
 Himachal Pradesh - 1,273,922
 Bihar - 10,338,828
 Orissa - 3,836,091
 Assam - 2,194,310
 North East. States - 1,357,383
 Jammu and Kashmir - 1,804,047

The total is 131,714,243 or 32.86% of the total 404,349,733 GSM mobile

connections in India till December 2009; and presently the Number 1
operator in India.

Airtel Lanka
In December 2008, Bharti Airtel rolled out 3.5G services in Sri Lanka in
association with Singapore Telecommunications. Airtel's operation in
Sri Lanka, known as Airtel Lanka, commenced operations on the 12th of
January 2009.

Airtel in Bangladesh
In January 2010, it was announced that the Bangladesh
Telecommuncations Regulatory Commission (BTRC) had given Bharti
Airtel the go ahead to acquire a 70% stake in the Bangladesh business of

22
Abu Dhabi based Warid Telcom. The latter had till date invested a total
of $600 million, with plans to bring their Bangladesh investments to the
$1 billion mark. Airtel's 70% stake in the company is said to be at a cost
of an initial $300 million. The service is being operated under the brand
name Warid Telecom.

Airtel Africa
On 14, February 2010 a statement issued exclusively to the Ghana News
Agency by Zain Ghana, said "the Board of Directors of Kuwait's Zain
Group, after its meeting on February 14, 2010, issued a resolution to
accept a proposal received from Bharti Airtel Limited (Bharti) to enter
into exclusive discussions until 25 March 2010, regarding the sale of its
African unit, Zain Africa BV." The offer was for $10.7 billion.

"This potential transaction does not include Zain's operations in

Morocco and Sudan and remains subject to due diligence, customary
regulatory approvals and signing of final transaction documentation,"
Bharti said. The deal would provide Bharti access to 15 more countries
in the region, adding around 40.1 million subscribers to its already 125
million-plus user base. With Bharti already having presence in five
overseas markets,after the deal, it would increase its global presence
across 20 regions. The combined revenue of the two entities would be
around $12 billion.

The deal ran into hurdles after the government of the central African
nation of Gabon had come out against the deal, but later approved the
sale. The government of Congo Republic had also said Bharti-Zain deal
broke law. There was also a dispute about minority ownership of Zain's
operations in Nigeria, the biggest market in the deal. Minority

23
shareholder Econet was seeking to overturn a 2006 deal by Zain - then
called Celtel - in which it bought a majority stake in Nigerian mobile
operator Vee Networks Ltd, now Zain Nigeria. On 8, June 2010, Bharti
said the Nigeria ownership dispute had been settled.

On 8, June 2010, Bharti Airtel, in the largest ever telecom takeover by an

Indian firm, completed a deal to buy Kuwait-based Zain Telecom's
businesses in 15 African countries for $10.7 billion. Sunil Mittal,
Chairman of Bharti Enterprises, said, "We are delighted at the closure of
this transformational deal for India and Bharti Airtel. The transaction is
the largest ever cross-border deal in an emerging market and will result
in combined revenues of about $13 billion."

Telemedia
The Telemedia business provides services in 89 Indian cities and
consists of two brands.

Airtel Broadband provides broadband and IPTV services. Airtel provides

both capped as well as unlimited download plans. The maximum speed
available for home users is 16Mbps.

Airtel Fixed Line which provides fixed line services. Until September 18,
2004, Bharti provided fixed-line telephony and broadband services
under the Touchtel brand. Bharti now provides all telecom services
including fixed-line services under a common brand "Airtel".

Digital TV

Main article: Airtel Digital TV

24
The Digital TV business provides Direct-to-Home (DTH) TV services
across India under the brand name Airtel Digital TV. It started services
on 9 October 2008.

Enterprise
The Enterprise business provides end-to-end telecom solutions to
corporate customers and national and international long distance
services to telcos through its nationwide fiber optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and
international bandwidth access through the gateways and landing
stations.

Merger talks
In May 2008, it emerged that Bharti Airtel was exploring the possibility
of buying the MTN Group, a South Africa-based telecommunications
company with coverage in 21 countries in Africa and the Middle East.
The Financial Times reported that Bharti was considering offering US$45
billion for a 100% stake in MTN, which would be the largest overseas
acquisition ever by an Indian firm. However, both sides emphasize the
tentative nature of the talks, while The Economist magazine noted, "If
anything, Bharti would be marrying up," as MTN has more subscribers,
higher revenues and broader geographic coverage. However, the talks
fell apart as MTN group tried to reverse the negotiations by making
Bharti almost a subsidiary of the new company.

In May 2009, Bharti Airtel again confirmed that it is in Talks with MTN
and companies have now agreed discuss the potential transaction
exclusively by July 31, 2009. Bharti Airtel said in a statement "Bharti

25
Airtel Ltd is pleased to announce that it has renewed its effort for a
significant partnership with MTN Group".]

Talks eventually ended without agreement, due to the South African

government opposition.

Sponsorship
On the 9th of May, 2009 Airtel signed a major deal with Manchester
United Football Club. As a result of the deal, Airtel gets the rights to
broadcast the matches played by the team to its customers.

Bharti Airtel signed a five-year deal with ESPN Star Sports to become
the title sponsor of the Champions League Twenty20 cricket
tournament. The tournament itself is named "Airtel Champions League
Twenty20."

VISION

By 2010 Airtel will be the most admired brand in India:

 Loved by more customers

 Targeted by top talent
 Benchmarked by more business

MISSION
 We will meet the mobile communication needs of our customers
through:
 • Error- free service delivery
• Innovative products and services
• Cost efficiency
• Unified Messaging Solutions

26
 Awards and Recognition

 Wireless service provider of the year 2005 at the Frost

and Sulivan Asia-
 Competitive service provider of the year 2005 at the
Frost and Sulivan Asia-Pacific ICT awards
 Bharti Airtel added the highest ever net addition of 5.3
million customers in a single quarter (Q4-FY0607) and
also the highest ever net addition of 18 million total
subscribers in 2006-07
 The company has invest up to $3.5 billion this fiscal
(07-08) in network expansion.
 Bharti Airtel added the highest ever net addition of 5.3
million customers in a single quarter (Q4-FY0607) and
also the highest ever net addition of 18 million total
subscribers in 2006-07.

CORE VALUE
 We will delight our customer with our simplicity, speed &
innovation.
 We will honor our commitment.
 We will follow the highest standard of professional integrity &
behavior.
 We will respect individual, build winning teams and lead by
example.

27
We will create a fun filled and friendly workplace.

Milestones

1976-79

 Bharti Enterprises founded by Sunil Bharti Mittal.

 Starts as a small scale manufacturing unit for bicycle components.
Diversifies into production of yarn, stainless steel sheets for surgical
utensils.

1980-84

28
  Bharti Overseas Trading Corporation set up. Bharti imports and
markets stainless steel products, brass and plastic products, and
zip fastners etc.
 Bharti ties up with Suzuki, Japan to import and distribute portable
gensets. By 1984 Bharti is the largest importer of portable gensets
in India.

1985-88

 Bharti makes it entry into the telecom sector with Bharti Telecom.
Enters into a technical tie-up with Siemens AG of Germany and

29
 becomes the first company in India to manufacture electronic
push button telephones in Gurgaon.
 Bharti Telecom's Ludhiana factory commences operations for
manufacturing push button phones
 Bharti also makes an entry into India's pharma sector with Bharti
Healthcare, which manufactures empty hard gelatin capsules.

1989

 Bharti ties-up with Takacom Corporation, Japan to become the

first company in India to manufacture telephone answering
machines.

1990

30
  Bharti ties-up with Lucky Gold Star, South Korea to become the
first company in India to manufacture cordless telephones

1991

 Bharti Telecom's products reach international markets. Company

signs OEM contract with Sprint, USA for manufacture and export
of telephone sets.

1992

31
  Bharti Cellular Ltd. is born. Bharti forms a consortium with SFR-
France, Emtel-Mauritius and MSI-UK, to bid for mobile service
provider licenses in Indian metros.

1993

 Bharti Telecom's Gurgaon factory becomes the first manufacturer

of push button phones to be awarded ISO 9002 accreditation.
 Bharti provides technical assistance to Uganda for manufacture of
push button pones.

1994

 Bharti wins GSM mobile service provider licence for Delhi NCR.

32
  Bharti Telecom's Ludhiana factory gets ISO 9002 accreditation

1995

 Bharti launches Delhi's first GSM mobile services under the Airtel
brand
 Forms consortium with Telecom Italia to bid for cellular and fixed-
line services under Bharti Telenet
 Bharti joins forces with Siemens to market telephone terminals
under SIEMENS and BEETEL brand names.
 Bharti Tele-Ventures is incorporated

1996

33
  Airtel launched mobile services in the state of Himachal Pradesh,
the first by any private telco.
 Telecom Italia acquires 20% equity interest in Bharti Tele-
Ventures
 Bharti Telenet bids for fixed line licence in the state of Madhya
Pradesh

Bharti forays into manufacture of HDPE Silicore ducts. Forms a

joint venture with Dura-Line Corp, USA

1997

34
  British Telecom acquires equity interest in Bharti Cellular
 Airtel becomes the first mobile service provider in the country to
cross the 100,000 customers mark
 Bharti gets licence to provide comprehensive telecom services in
Seychelles.
 Bharti wins fixed-line service provider licence for Madhya
Pradesh. Becomes the first private company in India to win a
fixed-line licence.
 Bharti Telecom and British Telecom form joint venture - Bharti BT
Ltd. - for offering VSAT services
 Bharti-Duraline commences operations. Becomes the first
company in India to manufacture HDPE Silicore Ducts.
 Bharti Telecom emerges as the largest manufacturer of telephones
in India with a capacity of 200,000 units.

1998

35
  Bharti becomes the first Indian company to offer telecom services
in international markets. Launches mobile services in Seychelles.
 Bharti launches India's first private fixed line service in Indore,
Madhya Pradesh
 British Telecom consolidates its equity interest in Bharti Cellular
to 44%
 Bharti BT Internet, a joint venture of Bharti Telecom and British
Telecom, formed for providing ISP services.
 Bharti commissions India's first private sector transmission
network between Bhopal and Indore

1999

36
  Warburg Pincus, a leading international private equity investor,
picks up stake in Bharti Tele-Ventures.
 Bharti acquires a controlling stake in JT Mobiles, established
footprint in the states of Andhra Pradesh and Karnataka
 Bharti BT Internet launches ISP services in Delhi, Mumbai and
Bangalore under the `Mantra online' brand.
 Airtel launches fixed line services in Raipur and Jabalpur in the
state of Madhya Pradesh.

2000

37
  Bharti and Singtel, Asia's leading telco, form strategic partnership.
Singtel invests $ 400 million in Bharti.
 New York Life International acquires a 3% equity interest in
Bharti Cellular
 Bharti acquires majority stake in SkyCell, establishes presence in
the Chennai circle
 Bharti and Singtel announce a $650 million partnership for
undersea optic fibre cable between India and Singapore
 Bharti and Singtel form Bharti Telesonic to operate and manage
National Long Distance operations.
 Mantra Online launches India's first International Satellite
Gateway.

2001

 Bharti wins mobile service provider licences in 8 circles and fixed-

line service provider licences in 4 circles. Bharti's mobile service
provider licence in Punjab is restored.
 Bharti acquires Spice Cell and enters the Kolkata circle.

38
  Bharti Telesonic launches National Long Distance services under
the `IndiaOne' brand.
 Bharti launched "Touch Tel" its fixed line service brand, launches
fixed line services in Haryana
 Forms joint venture with SingTel for a submarine cable landing
station between India and Singapore
 SingTel, Warburg Pincus, AIF, IFC, NYLIF and Seejay Cellular make
equity investments of approximately US$ 481.30 million in Bharti
Tele-Ventures and through Bharti Telecom.
 Bharti acquires British Telecom's equity interests in Bharti
Cellular, Bharti BT and Bharti BT Internet.
 Bharti acquires three additional ISP licenses

2002

 Bharti goes public, completes India's first 100% book building

issue and gets listed on the National stock Exchange, Bombay

39
 Stock Exchange and the Delhi Stock Exchange on February 18,
2002.
 Bharti launches mobile services in Gujarat, Haryana, Kerala,
Madhya Pradesh circle, Maharashtra, Mumbai, Punjab, Tamil
Nadu, Uttar Pradesh (West).
 Bharti enters into a license agreement with the DoT to provide
International Long Distance services in India. Becomes India's first
private telecommunications services provider to launch
International Long Distance services.
 Bharti launched fixed-line services in the Delhi, Haryana,
Karnataka and Tamil Nadu.

2003

 Bharti enters the business outsourcing segment. Forms TeleTech

Services Ltd in partnership with TeleTech Holdings (USA).

Airtel becomes India's largest GPRS network

40
2004

 Bharti, a first in the telecom industry, signs a 10 year

comprehensive IT outsourcing deal with IBM.
 Bharti heralds a new paradigm in telecom, outsources mobile
network to Ericsson and Nokia in mutli-million dollar managed
networks deals.
 Bharti clocks revenues in excess of a billion dollars annually.
Registers profits in excess of $150 million.
 Bharti & Rothschild form a 50:50 JV - FieldFresh- for linking
India's farms to the world.
 Bharti launches mobile services in Uttar Pradesh (East), West
Bengal, Jammu & Kashmir and Orissa.
 Airtel exclusively brings globally acclaimed Blackberry to India

41
2005

 Bharti becomes India's first mobile service provider to complete a

national footprint in all 23 telecom circles.
 Vodafone picks up 10% equity interest in Bharti for $1.5 billion,
making it the single largest foreign investment in the country.
 Bharti continues to build on its successful business model based
on outsourcing. Enters into agreement with four global BPOs -
Hinduja TMT, IBM-Daksh, Mphasis & TeleTech Services - and
Nortel to provide world-class customer care services
 Bharti marks its foray into financial services. Forms joint venture
with Axa of France to offer life insurance products.
 Bharti and IBM announce a Joint Go to Market program to offer
managed services in India.
 WestBridge Capital Partners, Sequoia Capital and Cisco Systems
pick up 10% stake in Bharti Telesoft

42
2006

 Bharti and Wal-Mart sign Memorandum of Understanding to

jointly explore Retail opportunities in India
 Bharti becomes the first Indian telecom operator to launch 3G
services, starts 3G operations in Seychelles
 Bharti wins mobile service provider licence in Jersey and
Guernsey, Channel Islands, Europe.
 Bharti Axa Life Insurance launches national operations.
 Bharti and its Associates commit a corpus of Rs 200 crores to
Bharti Foundation to provide education to underprivileged
children in villages across India.
 Bharti Televentures rechristened as Bharti Airtel

43
2007

 Bharti becomes the fastest private telecom company in the world

to cross the 50 million mark. Enters the league of top 5 mobile
companies in the world.
 Bharti launches Mobile Money Transfer pilot project in India in
partnership with GSMA
 Bharti outlines strategic roadmap for its Retail venture. Commits
investment of up to US $ 2 to 2.5 billion by 2015.
 Bharti and Wal-Mart Stores, Inc. form a joint venture Bharti Wal-
Mart Private Limited, for wholesale cash-and-carry and back-end
supply chain management operations in India.
 Bharti brings in Del Monte as a strategic partner in FieldFresh to
enhance focus in the processed food segment.
 Bharti makes its European debut. Launches mobile services in
Jersey, Channel Islands.
 Bharti Teletech manufactures its 20 millionth telephone.

44
  Bharti receives licence to offer Direct to Home (DTH) Satellite TV
services in India
 Jersey Airtel Launches Services, Brings A Range Of Innovative
Products And Services To Customers In Jersey Under Airtel-
Vodafone Brand
 Sunil Bharti Mittal chosen for Padma Bhushan, one of India's
highest civilian honours.
 Bharti and Axa form joint ventures to launch General Insurance
and Asset Management services in India.
 Bharti wins licence to offer mobile services in Sri Lanka.
 Bharti Telesoft acquires Jatayu Software.

2008

 Bharti launches its first set of retail stores in Ludhiana under the
`easy day' brand.
 Bharti crosses 60 million telecom customers landmark.
 Bharti launches services in Guernsey, Channel Islands.

45
  Bharti joins hands with Idea and Vodafone to form Indus Towers -
an independent passive mobile infrastructure company.
 Eight leading international leading PE funds pick up stake worth
$1.25 billion in Bharti Infratel - Bharti's passive mobile
infrastructure company.

2009

 Bharti Airtel launches its services in Sri Lanka (2G/3G network)

 Bharti Foundation sets up Bharti Centre for Communication in
partnership with Indian Institute of Technology, Mumbai
 Bharti Airtel and Alcatel-Lucent form JV to manage Bharti Airtel's
pan-India Broadband and Telephone services
 Bharti Walmart launches first Cash & Carry Store under Best Price
Modern Wholesale brand
 Bharti Telesoft renamed `Comviva'
 Bharti Airtel launches iPTV service; Digital TV interactive
 Bharti Airtel crosses the 100 million telecom customers mark

46
2010

 Bharti Airtel acquires 70% stake in Warid Telecom, Bangladesh

 Bharti Airtel enters into a legally binding definitive agreement
with Zain Group to acquire Zain Africa
 Bharti Airtel acquires the mobile operations of Zain in 15 African
countries. Becomes the fifth largest mobile operator in the world.

Our work culture and values

Bharti has traversed a long way from its humble beginnings of being a
bicycle component manufacturer in 1976 to a truly global business
conglomerate with interests in telecom, retail, financial services, sales &
distribution of communication equipments, telecom software services,
processed foods, real estate and training & development. This
transformational journey has been made possible through the dynamic

47
leadership of our entrepreneurial leaders and the professional expertise
of our people. We call this combination the ‘P-E Balance’ or the
‘Professional-Entrepreneurial Balance’.
At the foundation of all that we do is a very strong values framework
that acts as a set of guiding principles for the organization. Our values
encompass:

 Entrepreneurship
A core tenet for a first-generation entrepreneurial company. We
believe in providing people opportunities to do all that they can
and be what they want to be.

 Respect for all

Being respectful towards all whom we meet during our day-to-day
professional interactions.

 Passion for performance

Our journey would not have been possible without an enduring,

bordering on fanatical focus on performance. This is what we also
seek in our employees – a keen focus on outcomes through
performance excellence.

 Teamwork
We value “the power of many” and look to harness collective
synergies through collaboration and teamwork.

 Building collaborative partnerships

Forging strategic partnerships with eminent brands and
companies from across the world - be it Singtel, Wal-Mart, AXA,

48
 Del Monte - is part of our DNA. We are passionate about building
strong, long-lasting relationships with our employees, customers
and partners.

At Bharti, we believe in the power of informal communication. Much of

our work gets done by picking up the phone or popping into a team
member’s cabin. This culture of informality, a hallmark of a ‘small’
company, is what we have tried to retain throughout our growth
journey.

 Nurturing small businesses

Bharti Walmart has helped several small businesses grow by upgrading

them to global standards. Alka and Deepak Puri from Ramnagar,
Nainital, started Delicia Foods in 2003. It was a food processing unit
aimed at providing value addition to their family horticultural business.
In 2008, Bharti Walmart began a relationship that went beyond the
normal supplier relationship – as they worked together to improve
production processes and standards.

“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 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.

49
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.

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 heafty
deposits!

STD/ISD facility till the last rupee

Now experience complete freedom like never before with Airtel! Our

50
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

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!

51
 Short Messaging Service (SMS)
With Airtel’s Short Messaging Service (SMS), send messages 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.

Key Data (INR)

Shareholding %

Shareholding %
Promoters 65.9
MFs/ FIs/ Insurance 4.3
Foreign Inst Investors 25.3
Public 4.5
Total 100.00

52
Rs Mn FY08 FY07 %Chg.
Net sales 69501 49141 41
Operating profit 29052 19804 47
PAT 14285 10333 38
EPS (RS) 7.53 5.45 -
OPM (%) 41.8 40.3 -
NPM (%) 20.6 21.0 -

Bharti Airtel Limited has maintained its growth momentum in its

operational and financial results. The consolidated total revenues for the
quarter ended December 31, 2007 is at Rs. 69501 mn grew by 41% on a
year-on-year basis. The net profit during the quarter was Rs. 14285 mn,
a growth of 38% from the corresponding quarter of last year. For the 9-
month ended December 2007, the revenues grew by 46.6% whereas the
net profit was up by 63.9%. Bharti has over 57.3mn customers, as on
December 31,2007, an increase in the total customer base of 70.1%,
over the corresponding period last year and maintained its leadership
position through an improved market share of all India mobile
subscribers at 23.6% as on December 31, 2007.

Key highlights
 Mobile services have been the major contributory with 81% share
in the total revenues during the quarter. This growth is attributed

53
 to the addition in the subscriber base of more than 6 mn taking
the total mobile subscriber base to 55.1 mn as on December 2007.
 The enterprise business remains under pressure with margins
narrowing, due to a combination of lower tariffs and increased
competition.
 Telemedia (broadband/fixed-line) segment has registered
significant growth with the revenue increasing by 22% and the
operating profit grew by 97%. The margin for this segment during
the quarter has increased from 27% as on Q3FY07 to 43.4% as on
Q3FY08.
 Bharti’s mobile-network expansion remains on track with
population coverage increasing from 54% in Q3FY07 to 68% in
Q3FY08. The total network sites have increased to 60,299
network sites, up from 34,307 in 3QFY07 (Y-o-Y increase of
75.8%).
 Mobile ARPUs declined just 2% Q-o-Q to Rs358, while Minutes of
Use rose 1% Q-o-Q to 474 minutes.
 In lines with our expectation there has been a reduction in the
operating cost mainly in the access and interconnection charges,
which have reduced from 16.8% in Q3FY07 to 15% in Q3FY08.As
a result the operating margins have increased from 40.3% in
Q3FY07 to 41.8% in Q3FY08.
 The depreciation and interest cost were more than our
expectation during the quarter as well as for the nine months
ended 2007. Consequently there has been a minor reduction in
the net profit margins for FY09E to 24.8% (against our
expectation of 24.9%) and for FY10E to 26.1% (against our
expectation of 26.3%).

54
  For the nine months ended December 2007, the revenues
increased by 46.6% to Rs.191485.9 mn. The operating profit was
up by 57% at Rs.79617.6 mn. The OPM has improved from 38.8%
in 9mFY07 to 41.6% in 9mFY08. The NPM has improved from
21.0% in 9mFY07 to 23.5% in 9mFY08.
 On the basis of the subscriber growth in the third quarter we have
revised our subscriber projections upwards not only for the
Industry but also for the Bharti Airtel. This has in turn resulted in
revision in the revenues from the mobile segment. However we
have moderated the growth in revenues for the enterprisecarrier
segment on the back of lower tariffs and increased competition in
this segment.
 We have revised the subscriber growth projections upwards for
Bharti on the back of strong growth witnessed by the company in
the last three quarters. Despite increasing competition and the
regulatory policies we believe that with strong fundamentals and
financial performance Bharti will continue to be the market leader
with 22.8% market share by the end of FY 2008. Accordingly, we
maintain a “BUY” recommendation on “Bharti Airtel Ltd” with a
price target of Rs.1175.

Major Developments
 In a major boost to its expansion plans, the company has also been
allotted additional 2G spectrum in five telecom circles, Gujarat,
Uttar Pradesh (West), Assam, West Bengal and Haryana.
Importantly, the company is also slated to receive additional radio
frequencies in five other circles, Rajasthan, Andhra Pradesh, Bihar,
Tamil Nadu and Chennai, within the next couple of days.

55
 Although the company has been allotted spectrum as a means of
the interim measure, Bharti is also looking for alternative
technology solutions for overcoming spectrum scarcity. At the
same time the company is confident about the growth being
witnessed in the subscriber base which would make them eligible
for additional spectrum on the basis of the revised TRAI norms.
 Eight leading international investors comprising of Temasek, The
Investment Corporation of Dubai (ICD), Goldman Sachs,
Macquarie, AIF Capital, and Citigroup & India Equity Partners
(IEP) have agreed to invest $1Bn in Bharti Infratel Limited. The
enterprise valuation has been agreed to be in the range of USD 10
to 12.5 Billion, and the final valuation will be determined on the
basis of Bharti Infratel Limited’s actual operating performance in
FY 2008-09.
 During the quarter ended December 31, 2007 the company has
allotted 1,28,367 new equity shares comprising of 42,967 shares
upon conversion of convertible bonds (FCCBs) and 85,400 shares
to the employees of the company upon exercise of stock options as
per ESOP Scheme 2005. As a result the paid up equity share
capital of the company stands increased to Rs. 18978.4 mn on
December 31, 2007.

56
Interim results for Q3FY08 and 9MFY08 Rs.Mn
Q3FYO8 Q3FY07 YoYCh% 9Mfy08 9Mfy07 YoYCh%
Net Sales 69501.4 49140.9 41.4 191485.9 130588.5 46.6
Total Expenditure 40448.91 29337.2 37.9 111868.3 79891.5 40.0
Operating Profits 29052.49 19803.7 46.7 79617.6 50697.0 57.0
Other Income 678.1 140.9 381.3 2133.1 744.7 186.4
EBDIT 29730.59 19944.6 49.1 81750.7 51441.7 58.9
Depreciation 9862.0 7154.8 37.8 26563.9 17494.1 51.8
EBIT 19868.6 12789.8 55.3 55186.8 33947.6 62.6
Interest 4960.7 589.9 740.9 2233.8 2065.9 8.1
PBT 14907.9 12199.9 22.2 52953.0 31881.7 66.1
Taxes 414.5 1748.9 -76.3 7400.4 4160.3 77.9
Profit before
Minority Interest 14493.4 10451.0 38.7 45552.6 27721.4 64.3
Minority Interest 208.5 118.3 76.2 588.0 286.2 105.5
Net Profit 14284.9 10332.7 38.2 44964.6 27435.2 63.9
Equity Share Capital 18978.4 18957.4 18978.4 18957.4
EPS 7.53 5.45 23.69 14.47
CEPS 12.72 9.22 37.69 23.70
Profitability Ratios
Operating Profit
Margin (%) 41.8 40.3 41.6 38.8
EBIDT Margin (%) 42.8 40.6 42.7 39.4
EBIT Margin (%) 28.6 26.0 28.8 26.0
PAT Margin (%) 20.6 21.0 23.5 21.0

Earnings summary Rs.(Mn)

Particulars 2007 2008E 2009E 2010E
Net Sales 185320.9 260445.9 327980.5 374550.2
Total Expenditure 109858.2 149594.9 183406.7 204935.1
Operating Profits 75462.8 110851.0 144573.8 169615.1
EBDIT 75462.8 110851.0 144573.8 169615.1
Depreciation 24486.6 35741.8 42572.0 48259.0
Amortization 1703.8 2344.0 3279.8 3745.5
EBIT 49272.4 72765.1 98722.0 117610.6
Interest 2488.5 2749.8 1543.0 542.9
PBT 46783.9 70015.3 97179.1 117067.6
Taxes 5680.5 10082.2 14771.2 18005.0
Profit before
Minority Interest 41103.4 59933.1 82407.8 99062.6
Less: Minority
Interest 482.2 779.1 1071.3 1287.8
Net Profits 40621.2 59154.0 81336.5 97774.8
Growth in sales (%) 58.0% 40.5% 25.9% 14.2%

57
Operating Profits
Growth (%) 79.2% 46.9% 30.4% 17.3%
PAT Growth (%) 100.3% 45.6% 37.5% 20.2%
Operating Profit
Margin (%) 40.7% 42.6% 44.1% 45.3%
Net Profit Margin (%) 21.9% 22.7% 24.8% 26.1%
Source: Company Annual report and ACMIIL estimates

Particulars 2007 2008E 2009E 201

KEY RATIO
Particulars 2007 2008E 2009E 2010E
Profitability Ratios
Operating Profit Margin (%) 40.7% 42.6% 44.1% 45.3%
EBIT Margin (%) 26.6% 27.9% 30.1% 31.4%
PAT Margin (%) 22.2% 23.0% 25.1% 26.4%
RONW (%) 43.1% 40.9% 37.9% 32.1%
ROCE (%) 20.9% 22.5% 23.6% 22.8%
Per Share Ratios
Earnings (Rs.) 21.4 31.2 42.9 51.5
Cash Earnings (Rs.) 42.8 63.7 84.0 98.9
Book Value (Rs.) 60.4 91.5 134.4 185.9
Valuation Ratios
P/E (x) 40.3 27.7 20.2 16.8
Cash P/E (x) 20.2 13.6 10.3 8.7
P/BV (x) 14.3 9.4 6.4 4.6
Capital Structure Ratios
Debt/Equity 0.46 0.29 0.12 0.03
Current Ratio 0.4 0.5 0.7 0.9
Quick Ratio 0.2 0.3 0.4 0.7
Cash Ratio 0.08 0.16 0.32 0.55
Turnover Ratios
Debtors Turnover (x) 14.8 16.1 16.0 15.5
Fixed Asset Turnover (x) 0.9 1.0

58
Annexure: Bharti Airtel Limited (Revised Subscriber Projections) s
Year Adjust Total Adjusted Bharti Market share
Population Wireless Teledensity Subscriber of Bharti
Figure in (mm) Subscriber For wireless

2004 526.1 35.0 6.7 6.5 18.6

2005 534.2 55.0 10.3 11.0 20.0
2006 567.2 99.0 17.5 19.6 19.8
2007 575.5 166.0 28.8 37.1 22.4
2008P 583.8 255.0 43.7 58.1 22.8
2009P 592.0 332.0 56.1 74.7 22.5
2010P 600.1 390.0 65.0 86.2 22.1
2011P 634.7 428.0 67.4 93.9 21.9
2012P 643.3 455.0 70.7 98.7 21.7

Source: Census India Report, Cris Infac & ACMIIL Research

*Adjusted for population that can afford mobile services# Wireless
Subscribers include GSM, CDMA and WLL-F subscriber.

59
 RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY

To study the retailer trends in telecommunication sector.

To study dealers/distributors decision-making & preferences.
To study marketing strategies adopted by Airtel.
To represent a SWOT analysis of the Airtel.
To study the level of customer satisfaction in Airtel.
To study the market potential.
To study customer purchase decision behavior.
To present actual figure of market.
Problem identification and find its recommendation.

Sources of Data

Research Data

Data is the key activity of marketing research. The design of

the data collecting method is backbone of research design. Data can be
obtained from two important sources, namely:

1. Primary Data
2. Secondary Data

60
Primary Data:

Primary data are gathered for the specific purpose or for a

specific research project, consist of original information for the
fulfilment of project objective.

When the data are required for the particular study can be found neither
in the internal record of the enterprises nor in published sources. In
some cases it may become necessary to collect original data.

Primary data can be collected in four ways:-

1. Observation
2. Focus
3. Survey
4. Experiment

Secondary data:

Secondary data are the data, which already exists

somewhere. Secondary data provide starting point for research and
after that the advantage of low cost and ready availability. Secondary
data can be divided into two types:

1. Internal data
2. External data
3. Internet
4. Newspaper
5. Magazines

61
 When researcher uses the data that has already been
collected by other data are called secondary data. Secondary data can be
obtained from journals i.e. internal sources report, government
publication and books, professional bodies etc.

Internal data are reports and memos generated within

an organisation to facilitate its operations. External data are those
specially produce for outside consumption.

Sources from which I have taken the secondary data are as

under:

1. Direct observation
2. Airtel website
3. Books for marketing management
4. Surveys and customer data & report
5. KNOPs

Techniques used for data collection

Guesstimate questionnaire — Where people (often clients) are

asked to guess the results of the survey in the questionnaire. This is then
compared to the actual results of the survey to assess how closely
perceptions match reality.

Probability sampling (random sampling) — this type of

sampling results in every sampling unit in a finite population having a
calculable and non-zero probability of being selected in the sample. This

62
means that the chance of a unit being included in a sample can be
calculated.

Purposive sampling — As its name would suggest, purposive

sampling is about selecting a particular sample on purpose. Often used
in qualitative research. The dimensions or factors according to which
the sample is drawn up are analytically and theoretically linked to the
research question(s) being addressed.

Quota sampling (Non-probability sampling) — with quota

sampling, individual units in the population do not have a known chance
of selection. It is a type of stratified sampling in which selection of
sampling units within strata e.g. age, sex is done by interviewers on a
non-random basis, controlled to some extent by quotas allocated to
different strata. Each interviewer is given an assignment of interviews,
specifying how many of them are to be with men and how many with
women, how many with people in various age groups and so forth.
These quotas are calculated from available data (e.g. Census) to arrange
that, for the sampling unit (ED or town or Constituency), the sexes, age
groups and social class are represented in the sample in the right
proportions.

ENVIRONMENTAL ANALYSIS
It is a systematic examination of all 3 levels of the environment with at
least three
purposes:
 Detecting important economic, social, cultural, environmental,
health,
technological, and political trends, situations, and events

63
  Identifying the potential opportunities and threats for the
institution
implied by these trends, situations, and events
 Gaining an accurate understanding of your organization’s
strengths and limitations STEEP refers to changes in the social,
technological, economic, environmental, and political sectors
that affect organizations directly and indirectly.
A STEEP analysis of the macro environment indicates that economic
(a phone call being a cheaper way to stay in touch than outstation travel
for example) and social factors (working outside the home town) have
forced the pace of utilization of technology (Public Call Offices, mobile
phones, networked companies).

Increasing customer awareness has raised expectations and vocal

demands are being articulated for consumer rights; such political factors
have in turn impacted the competitive environment by way of entry of
private players, independent regulation, and a policy framework tilted
towards a ‘level playing field’ for new entrants. A near environment
analysis indicates that the competitors are becoming active resource
rivals (political and financial) apart from applying pressures as customer
rivals. The customer has, needless to say, benefited from increased
choice from within the communications services basket itself.

CORE COMPETENCE
Airtel core competencies are sales & promotions and as of now Airtel is
leading brand in mobile services in India. Airte have three big
personality Viz. Sachin Tendulkar , Shahrukh Khan and music maestro A.
R. Rahman for endorsing there product and services currently Airtel is

64
outsourcing there no competence function and try to fully concentrate
on his core competency that is sales promotion.

SWOT ANALYSIS

Strength Weakness

1-Very focused on telecom. 1- Price Competition from

2-Leadership in fast growing BSNL and MTNL

cellular segment.
3-Pan-India footprint. 2- Untapped Rural market
4- The only Indian operator,
other than VSNL, that has
an international submarine
cable.

Opportunities Threats

1-The fast-expanding IPLC 1- Competition from other

market. cellular and mobile
2- Latest technology and low operators.
cost advantage. 2- Saturation point in Basic
3- Huge market. telephony service

65
 STRENGTH

VERY FOCUSED ON TELECOM

Bharti Airtel is largely focused on the telecom, around 93% of the total
revenue comes from telecom(Totaltelecom revenue Rs 3,326).

LEADERSHIP IN FAST GROWING CELLULAR SEGMENT

Airtel is holding leadership position in cellular market.. Bharti Airtel is one
of India's leading private sector providers of telecommunications services
based on an aggregate of 27,239,757 customers as on August 31, 2006,
consisting of 25,648,686 GSM mobile and 1,591,071 broadband &
telephone customers.

PAN INDIA FOOTPRINT

Airtel offers the most expansive roaming network. Letting you roam
anywhere in India with its Pan-India presence, and trot across the globe
with International Roaming spread in over 240 networks. The mobile
services group provides GSM mobile services across India in 23 telecom
circles, while the B&T business group provides broadband & telephone
services in 92 cities.
THE ONLY OPERATOR IN INDIA OTHER THAN VSNL
HAVINGINTERNATIONAL SUBMARINE CABLES.
Airtel, the monopoly breaker shattered the Telecom monopoly in the
International Long Distance space with the launch of International
Submarine cable Network i2i jointly with Singapore Telecommunications
Ltd. in the year 2002. This has brought a huge value to the IPLC customers,
delivering them an option besides the incumbent carrier, to connect to the
outside world.

66
 WEAKNESS

Price Competition from BSNL and MTNL.

Airtel is tough competition from the operators like BSNL nd MTNL as these
two operators are offering services at a low rate.

Untapped Rural market.

Although Airtel have strong Presence throughout the country but still they
are far away from the Indian rural part and generally this part is covered
by BSNL so indirectly Airtel is loosing revenue from the rural sector.

OPPORTUNITIES

THE FAST EXTENDING IPLC MARKET

An IPLC (international private leased circuit) is a point-to-point private line
used by an organization to communicate between offices that are
geographically dispersedthroughout the world. An IPLC can be used for
Internet access, business data exchange, video conferencing, and any other
form of telecommunication. Airtel Enterprise Services and SingTel jointly
provide IPLCs on the Network i2i. The Landing Station in Singapore is
managed by SingTel and by Airtel in Chennai (India). Each Landing Station
has Power Feeding Equipment, Submarine Line Terminating Equipment
and SDH system to power the cable, add wavelengths and convert the STM-
64 output to STM-1 data streams respectively.

67
LATEST TECHNOLOGY AND LOW COST ADVANTAGE
The costs of introducing cellular services for Airtel are marginal in nature,
as it needs only to augment its cellular switch/equipment capacity and
increase the number of base stations. The number of cities, towns and
villages it has covered already works to its advantage as putting more base
stations for cellular coverage in these areas comes with negligible marginal
cost. Besides such cost advantages, it has also other cost advantages for the
latest cellular technology. As a late entrant into the cellular market, it has
dual advantage of latest technology with modern features, unlike other
private cellular operators who started their service more than 4-5 years
back and low capital cost due to advantages of large scale buying of cellular
switch/equipment.
HUGE MARKET
The cellular telephony market is presently expanding at a phenomenal /
whopping __ rate every year and there is still vast scope for Airtel to
enter /expand in this market. Besides there is a vast rural segment where
the cellular services have not made much headway and many customers
are looking towards Airtel for providing the service to them. With its wide
and extensive presence even in the remotest areas, Airtel poised to gain a
big market share in this segment when it expands cellular services into the
rural areas.

THREATS

COMPETITION FROM OTHER CELLULAR

It is time for BSNL to improve/expand its cellular services. Fierce and cut-
throat competition is already in place with the markets ever abuzz with

68
several tariff reductions and announcement of attractive packages, trying
to grab most of the ‘mind share’ of the ‘king’ - ‘the consumer’, whose
benefits are increasing with passing of everyday. If BSNL is not innovative
and agile, its cellular service will be a flop. It needs to be proactive with
attractive packaging, pricing and marketing policies lest its presence in the
market be treated with disdain by the private cellular companies. The
launch of WLL services by Reliance Infocomm has aggravated the situation.

MARKET MATURITY IN BASIC TELEPHONY SEGMENT

Although Airtel entered in the basic telephony market it’s a biggest there
for the company as the basic telephony market has reached

69
 BCG Matrix

BCG Matrix is used to find out the relative growth prospects of the product
line. Within the Airtel product line leased, private, circuit are among star.
Airtel is going to have a submarine cable between Singapore and Chennai
with the collaboration of singtel. This wills airtel to maintain its position in
IPLC market. Right in India only VSNL have such cables.

70
 ANSOFF MATRIX

MARKET MARKET
PENETRATION DEVOLOPEMENT

Entered in Looking for

Broadband and Overseas market
Fixed line market

PRODUCT DIVERSIFICATION
DEVELOPMENT

Iplc products Outsourcing

To portray alternative corporate growth strategies, Igor Ansoff

conceptualized a matrix that focused on the firm’s present and potential
products and markets / customers. He called the four product-market
strategic alternatives
_ market penetration [existing market + existing product],
_ market development [existing product + new market],
_ product development [existing market + new product], and
_ Diversification [new product + new market].
The company should follow all four strategies depending on the demand
and product as indicated in the matrix. The company perhaps needs to
focus more on the comparatively neglected area of diversification.

71
MARKET PENETRATION:
Airtel entered in broadband and fixed phone line market.

PRODUCT DEVELOPMENT:
IPLC products

MARKET DEVELOPMENT:
Airtel is now looking for overseas market.
Company has already make his presence in Nigeria and Seychelles

DIVERSIFICATION :
Airtel has now outsourcing sum of its services like customer services with
IBM.

INDUSTRY STRUCTURE PORTER’S MODEL

72
The industry structure has become relatively unfavorable compared to
earlier monopolistic times

BAuuaa
ANSOFF MAT

The earlier pattern used to be that the national telecom company used to
own every segment of the value chain till the international gateway. With
liberalization there was competition in virtually every segment. There are

73
companies that provide local connectivity, those that function as long
distance carriers, and those that provide only gateway links. Some
integrated players operate in all segments. The intensity of competitive
pressures across the chain is reflected in the downward spiral being
witnessed in tariffs and prices to customer. The value chain for cellular
mobile service and Internet Service Providers (other than cable based net
connections) are similar in as much as the calls reach the destination
through similar local loop, long distance and international gateway.R

IX
LIMITATIONS OF THE STUDY

 The research will be conducted in a limited area.

 The internet information can be irrelevant.
 Time will be a major constraint.
 Smaller sample may not always give better results. Sample may not be true
representative of the whole population.
 The possibility of biased responses can’t be ruled out.
 Due to language problem it is possible that the respondents are not be able to
understand the questionnaire and can cause misleading results.

CONCLUSIONS

 Airtel connection are selling because of best network coverage.

 Good relationship of fos. And retailer is being helpful in selling.

74
 Large market coverage , easy availability of coupons.

 Good speed of internet.

 Better service offered than other mobaile companies like- Vodafone,

idea etc.

 Large number of customer care centre.

PROBLEM IDENTIFICATION AND RECOMANDATIONS

And now I would like to light the candle to the management that where is
the need of improvement as I’ve no much knowledge but whatever studied
and experienced surely advantageous for the company. So now I would like
to invite all level of managers, salesmen and distributors in this journey of
search and sell.

When we expect good work from our FOS and collectors there should be a
good training and development program for them. It’s really a big problem
that company has not any training scope because of this they hesitate to
cross the retailers as they don’t have a proper knowledge of schemes and
lack of skills which are needed to be a remainders and potential salesman.
They are not very confidante when they go to convince the retailers to keep
and sell airtel cards. As we know that to motivate the retailers in this throat
cut competition by giving the answer of their difficult question. As I’ve
experienced in the market a big part of retailers are not selling “Airtel” (or
other particular company) new connections they don’t have a proper
knowledge of schemes and slab they have only a rough idea about that.
Where company can say that I send massages to all retailers. Yes it is right
but a big part or 90% retailers are not able to understand these massages
as it was send in English only. That’ why there should be good training
75
program for its line workers which are FOS and collectors. There is an
example which will make it clear that how an untrained salesmen works.

When new outlet expansion program was in process, I said to a FOS that go
and convince retailers to be a dealer of Airtel. You cannot believe but he has
started in such a way “ye bhai 5000 invest karoge Airtel ka dealer bana
denge.”

It is a small example which shows the quality and skills of the salesmen. I
motivated many key retailers of other companies to sell Airtel by not giving
anything extra, only by explaining the existing schemes in a impressive
way. For example many key retailers of idea are doing 360 activations for
the payout of Rs. 45000. And Airtel provides Rs. 60000 for 300 activations.
The region is only those retailers who are working for idea or other
companies has not convinced successfully and not given knowledge of
schemes in a proper way.

And as we know that training is the process of increasing the knowledge

and skills for doing a particular job. The purpose of training is basically to
bridge up the gap b/w job requirements and present competence of an
employee. It can increase the aptitude, skills and abilities of the sales boys.
No doubt it will increase the level of performance better by using improved
method of work. Which will ultimately lead to best quality of work and well
trained salesmen tend to be self reliant and motivated which needs less
guidance and control. That’s why supervisory burden will be reduced. It
will also develop a positive attitude among boys.

Another issue is activation complaints. We should be practical and accept

it graciously that when a retailer suppressed by activation complaints he
decides not to sell that particular company’s cards or connections as no one

76
wants to take extra botheration especially when there is no scare of
opportunities as other rival companies are ready to hug them.

And I am not hesitated to say that small retailers are avoided by all
levels. So many times I’ve interacted with other company’s sales boy and
FOS and I observed by their activities and statements that they are getting
activation from the market only by keeping a fact in their mind always that
“we are working in a smaller company in respect of Airtel.” That’s why they
are more serious and polite about their work. A related corporate example
is written here. Where Pepsi had given a punch line, “we know we are
second so we work harder.” There lack of uniformity of prices of SIM in
different area. Price of SIM varies from region to region. It’s just puppets in
the hands of distributors who find the prices as they wish. This should be
strictly avoided because it may lead dissatisfaction among the retailers
and hence fall in shares. prices has operated as the major determinant of
buyer’s choice esp. Indians are very price sensitive this should be checked
strictly as it might lead to dissatisfaction to the price sensitive Indian
customer that’s why there should be uniformity of price and hence prevent
the distributors from dancing on their own tunes. One retailer may want
daily delivery (to keep stock lower) while another may accept twice a week
delivery in order to get lower price.

And now I would t o invite my readers for a very sensitive and interesting
issue which is “claim disbursement” Whether company wants to increases
its sells, activations or new outlets. Claim distribution plays a very vital role
in all these fields. As it is the biggest factor of motivation to do activation of
a particular company. Because all the retailers are working for making
more profit and get it as soon as possible in liquid form not to multiply
their stock of SIM cards.

77
 There should be a very effective way for distribution of claims
that can assured it the company that claim has been received by the
genuine owners or retailers. It is fact that connection selling is very much
depends upon retailers as I’ve seen in the market that what they have
suggested to customers, customers purchased as there are not too much
difference b/w policy and schemes of different companies.

A good way in my mind is that there should be an optional offer for the
retailers to distribute claims and it may done directly by using by using
‘easy load’ transfer to the retailers on the behalf of distributors and I can
assure to the company implemented it not only beneficial for the company
will help in fetching adventures and huge change. It will eliminate the
corruption of claim distribution completely from the market.

We have still such retailers who don’t knowledge about the claim.
Somewhere when I was representing the company before some
dealers/retailers they were surprised to know it that company provides
claims against its activation. Let me make it clear how it affects the
activation. When they don’t have knowledge of claim they offered a little
high price of cards to users and resultant user refused to buy it. So rally
management should think about its procedure of claim distribution.

Whenever a distributor shifted from one area to another area what

generally happened is that the distributor gets shifted without paying any
attention to he claim of the retailer which should be checked properly and
step should be taken so that the retailers get their claim in time.

Now time has come to discuss about communication and informal

relation a part of formal relation between dealers/retailers and
management. As I’ve experienced, there is a need to enhance more and
more with key retailers as well as small retailers too. Some of the retailers
78
have not meat yet, any authorized signatory of the company. It’s my belief
although the managers should pretend to be emotional yet, in real the truth
will be poles apart i.e. they should be pragmatic less emotional and strict.

Lack of communication gap the smooth functioning of the company.

They should in a proper interaction between the retailers and senior level
manager which would make them feel as it they are member of Bharti
family. For example some retailers were not working whole
heartedly as none of the any authorized member had meat them yet. And
my polite conversation booted them zeal and motivated them to work
whole heartedly.

I think a live example will make it more. It’s a event when I was
motivating the retailers to do Airtel activation so many retailers who were
working for other companies said “Sir X company ka Banda itna badhia hai
ki oosh se alag hi nahi ho pa rahe hain. Ab kya hai ki apni ek understanding
ban gaee hai.”

Yes the above statement shows how strongly an informal relation

affects the business. Our strategy should be such the similar statement will
be repeated for our sales boys also not only in corner each and every
corner which would ultimately gives us very strong grip of the market and
would help us to percolate to the depth of this market ocean. The sales boy
shouldn’t concentrate any particular retailer but should equal on every
retailers so that all round development not only the retailers but also of the
company takes place smoothly.

And last I want to draw the attention towards merchandising its very
weak poster PUP display bored and other print media instrument. It has

79
been sticking on those counters where always it has been giving. Some of
the markets where I’ve visited have no seen any mark of Airtel. When I
asked to the retailers they said “boys come in the evening when they have
no any posters or pamphlets and Boys said you only give me two three
activations in a month always asking for posters, it makes me laugh and
worry when anybody ask about nearer shop on which he can get airtel
recharge or connection.

Market serve of Yamuna Vihar

(1) Are you satisfied with the airtel service ?

Response No of shops %
Yes 46 92%
No 04 08%
Total 50 100%

service

yes
no

Kabeer Nagar

80
Response No of shops %
Yes 39 78%
No 11 22%
Total 50 100%

service

yes
no

Shashtri Park

Response No of shops %

Yes 08 68%

No 17 32%

Total 25 100%

81
 service

yes
no

(2) Which Telecom company products do you keep in your

shops to sell ?

Yamuna vihar

Operator’s name No of shops %

Vodafone 35 70%

Airtel 30 60%

Idea 28 56%

Tata indicom 28 56%

Reliance 26 52%

(3)Do you think that Airtel call rates cheaper than other telecom
servicers?

82
 Response No of shops %
Yes 03 06%
No 47 94%
Total 50 100%

cheaper callrate

yes
no

(4) Salesman comes properly on your shop ?

Response No of shops %
Yes 38 76%
No 12 24%
Total 50 100%

(5) Salesman give all the information to you:

Response No of shops %
Yes 22 44%
No 28 56%
Total 50 100%

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(6)Merchandiser comes regular on your shop and paste pop for increasing
visibility:

Response No of shops %
Yes 31 62%
No 19 38%
Total 50 100%

(7)Visibility affected the sales or not

Response No of shops %
Yes 37 74%
No 13 26%
Total 50 100%

(8)Distributer support to you

Response No of shops %
Yes 17 34%
No 23 66%
Total 50 100%

(9) You got the claim at time

Response No of shops %
Yes 00 0%
No 50 100%
Total 50 100%

84
BIBLIOGRAPHY

www.airtelworld.com

www.bhartiteleventures.com

www.Investmentz.com

www.Bharti Airtel Limited – Result Update ACMIIL

www.researchandmarket.com

www.smartmobs.com

www.Airtel’s reports

www.Airtel pdf.com

www. Airtel ppt.com

QUESTIONAIRES

Name………………………………………….

Age ………………………………………….

Sex……………………………………………..

Address………………………………………

Occupation…………………………………

Mobile no……………………………………

85
(1)Are you satisfied by the Airtel service ?

 Yes
 No

(2)According to their performance give a rank to all providers?

 Airtel
 Vodafone
 Reliance
 Idea
 Etc

(3) Do you think that Airtel call rates cheaper than other telecom
servicers?

 Yes
 No

(4) Salesman comes properly on your shop ?

 Yes
 No

(5) Salesman give all the information to you:

 Yes
 No

(6)Merchandiser comes regular on your shop and paste pop for increasing
visibility:

 Yes

86
  No

(7)Visibility affected the sales or not

 Affected
 Not affected

(8)Distributer support to you

 Yes
 No

(9) You got the claim at time

 Yes
 No

(10) In your point of view who is the nearest competitor of Airtel

 Vodafone
 Reliance
 Idea
 None of these

(11)

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88