A Project Report

On

IMPACT OF COMPETITORS AND NEW TECHNOLOGIES OF AIRTEL

In Partial Fulfillment Of the degree of Bachelor of Business Administration
2006-2009

Sumitted to Mrs. Munija

Faculty Guide (BBA)

Submitted By Opin Kumar Bhati

Roll No.

GIIT, Greater Noida

Batch (2006-2009) B.B.A IV Semester

Global Institute Of Information Technology

Greater Noida

Acknowledgements
I wish to express my deep gratitude to all those whose help whose help and cooperation has enabled me to complete this project.

I am Highly grateful to Mrs. MUNIJA who has continuously guided me on such a challenging Project of Impact of Competitors and New technologies on Airtel. time for me and I am also grateful to Mr. Rohit Singh Callaso ,Asst Manager Airtel, who has given his precious helped me in my work by providing me with various information about cellular Industry. With profound respect, I express my sincere thanks to Mrs. Malini (BBA course coordinator) constant encouragement. . and Mr. Vinod Kumar (Director) of Global Instiute of Information Technology, Greater Noida for their

Executive Summary
In this project Airtel studied relative to its competitors. It has also been found that what are the relative strengths and weaknesses of Airtel vis--vis its competitors. Demographics of the cellular user is also found. In the second part of the project, WLL Technology is studied. And also consumer willingness to shift to WLL Technology from GSM Technology is found. Advantages & disadvantages of GSM with respect to WLL is also found in the Project. After completion of this project I found that in spite of the fact Airtel the market leader in the GSM Technology but still it lagged behind Idea and Hutch as far as customer service and availability is concerned. Maximum number of mobile users are in the age group of 20-28. Which are mostly students and young executives. Maximum number of people are using prepaid cards. WLL is a new technology so people are curious about it. But as far as switching from GSM to WLL is concerned they are adopting the

policy of wait and watch. People are aware more about reliance than Tata. After WLL services would actually become popular then a further study can be conducted for customer service satisfaction of WLL users and then a comparative study of GSM and WLL could be done.

CONTENTS

Chapter 1 : Introduction 1.1 Indian Cellular Market 1.2 Development in the Cellular Industry 1.3 Future Trends and Development 1.4 Regulatory Issues Chapter 2: Objective and Research Methodology 2.1 Objective 2.2 Research Methodology 2.3 Limitations of the Project Chapter 3: Company Profile 3.1 Bhartis vision 3.2 Business 3.3 Competitive Trends 3.4 Brand Architecture Chapter 4: Finding and Analysis Diagrammatic Representation of Findings Chapter 5: Analysis of Competitors 5.1 Hutchison group 5.2 Idea 5.3 BPL Chapter 6: Threat of WLL to Airtels Business 6.1 Concept of WLL 6.2 WLL Market Overview 6.3 Current Scenario in India Chapter 7: Conclusion and Recommendation Bibliography Annexures

Chapter 1

INTRODUCTION

INDUSTRY PROFILE In the early 1990s, the Indian government adopted a new economic policy aimed at improving India's competitiveness in the global markets and the rapid growth of exports. Key to achieving these goals was a world-class telecom infrastructure. In India, the telecom service areas are divided into four metros (New Delhi, Mumbai, Chennai and Kolkatta) and 20 circles, which roughly correspond to the states in India. The circles are further classified under "A," "B" and "C," with the "A" circle being the most attractive and "C" being the least attractive. The regulatory body at that time the Department of Telecommunications (DOT) allocated two cellular licenses for each metro and circle. Thirty-four licenses for GSM900 cellular services were auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra in Kolkatta in August 1995. For the auction, it was stipulated that no firm can win in more than one metro, three circles or both. The circles of Jammu and Kashmir and Andaman and Nicobar had no bidders, while West Bengal and Assam had only one bidder each. In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the Lok Sabha, and the president officially announced the TRAI ordinance on 25 January 1997. The government decided to set up TRAI to separate regulatory functions from policy

formulation, licensing and telecom operations. Prior to the creation of TRAI, these functions were the sole responsibility of the DOT. High license fees and excessive bids for the cellular licenses put tremendous financial burden on the operators, diverting funds away from network development and enhancements. As a result, by 1999 many operators failed to pay their license fees and were in danger of having their licenses withdrawn. In March 1999, a new telecom policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby between 8-12 percent of cellular revenue were to be paid to the government. 1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND THEIR RESOLUTION Indian Cellular market immediately after the first round of licensing in 1994-96 was beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was announced. Some of these roadblocks / current position is tabulated below:

ROADBLOCKS CURRENT POSITION High license fees Migration to revenue sharing mode in 1999 mitigates high initial fund requirements for payment of license fees. Inadequately funded businesses / weak and fragmented promoters Businesses that have since been adequately funded growing at over 60% per annum, while businesses with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5 major groups emerging in the last one/two years. Regulatory authority not in place Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being accepted by all operators; Deptt of Telecommunications (DOT) restructured, with operations and policy making roles vested in different bodies. Issues relating to unfavorable interconnect terms for private operators, pass through income, intra circle long distance, spectrum availability and allocation and the like remained

unresolved for long periods. Interconnect terms since rationalized, risks on pass through income to DOT / MTNL (Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with changes in methodology / revenue sharing, intra circle long distance allowed, spectrum

availability cleared with vacation of frequencies for usage by GSM operators. Problems in Financial closures due to: Licensing tenure of 10 years Large up front cash requirements from promoters due to heavy license fee burden in initial stages of deployment Asset based financing approach by Indian Financial

Institutions. Licensing tenure increased from 10 to 20 years Large up front cash requirements for license fee payments mitigated with migration to revenue sharing mode allowing promoters to deploy more capital for capital expenditure; project financing being considered by most financial

institutions. Foreign ownership / change of partner limitations Foreign ownership norms clarified, and change of partners allowed as a matter of routine allowing ease of entry / exit - paves the way for full control of businesses by foreign companies. Inadequate growth of market / subscribers Roadblocks spelt out earlier resulted in low market / subscriber growth, but with corrective measures taken, market / subscriber base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY The interconnection regime between cellular operators and fixedline operators is still biased against the former. Despite the recent gains of the cellular industry, not everything is rosy. The cellular penetration rate is still very low at 0.8 percent in a nation of over one billion people. In recent years, many foreign companies had pulled out from their cellular joint ventures in India due to the difficult operating environment and bureaucracy. In 1999 alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both the Telecom Organization of Thailand and Jasmine International from JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from Bharti Cellular. Bell South International has also indicated its intention to pull out from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its stake in Spice Communications. First Pacific's (based in Hong Kong) continued commitment to Escotel is uncertain, and the former is reviewing various options. The string of sell-outs notwithstanding, there has been a merger and acquisition wave sweeping across the Indian cellular industry in recent years. Hong Kong-based Hutchison Whampoa, via Hutchison Telecommunications (HK), acquired major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid2000) and Fascel (September 2000). Through a partnership with local company, Kotak Mahindra Finance, Hutchison Whampoa
9

practically

controls

Fascel

and

Usha

Martin

Telecom,

thus

circumventing the 49 percent limit on foreign ownership in Indian cellular operators. Hutchison Whampoa is also the controlling shareholder of Hutchison Max Telecom. Not to be outdone, Bharti Enterprises another major cellular player acquired control of JT Telecom, which was later renamed Bharti Mobile (December 1999), and Skycell Communications renamed Bharti Mobinet (August 2000). Bharti also acquired the Punjab license of Essar and started operations, giving competition to the lone operator there, Spice Communications. Going forward, Bharti is likely to merge all its cellular companies into one entity. Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new licenses, followed by Escotel with four, Hutchison with three, and Reliance and Idea cellular with one each. Bharti and Hutchison have already commenced operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance have not made any headway. MTNL, the third cellular operator for Delhi and Mumbai, started services in March 2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A nationwide launch was scheduled for 2 October 2002. However, this has been postponed until after mid October. Once BSNL rolls out its service, most telecom circles will have four cellular operators. There will be tremendous competitive pressure, which will result in lower tariffs.

10

Future rate cuts are expected, which will drive demand, together with falling handset prices and the introduction of prepaid services. In the midst of declining interest in technology stocks, Bharti came out with its long-awaited initial public offering (IPO) in January 2002. Leveraging on the success of its cellular service, the company got a very good response from the primary market. The total size of the IPO was 185 million shares at a floor price of Rs10. The issue was oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel its investment in longdistance, basic and cellular services. As of October 2002, only BPL Mobile has launched commercial general packet radio service (GPRS) in Mumbai. However, largescale uptake remains elusive. While both Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch the service. With hardly any applications, the success of GPRS remains a question. Building visibility and awareness Deviating from competing on the price platform, cellular operators are actively promoting their brand and service portfolio through high-visibility advertising and promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have been

advertising aggressively on hoardings and kiosks. Public transport like the city rail system and cabs are used widely to carry the message of mobility.

11

Customer-focused activities are gaining traction among cellular operators with the establishment of longstanding consumer benefit programs. Orange in Mumbai offers "Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added benefits like discounts on airfare, food and beverages, among others. Others offer special privileges in retail outlets, cinemas and music shops. Enterprise mobile applications promising revenue stream All along, customer acquisition and the top line have been the focus. Few operators have concentrated on offering differentiated services for businesses. However, as operators realize that offering basic voice and Short Message Service (SMS) will get them the numbers but not the margins, some are now seriously looking at the enterprise segment for provisioning superior services. Cost-centered solutions like closed user group (CUG), value-adds like unified messaging and instant alerts are being offered. A variety of mobile applications are finding takers among the enterprise segment. Bharti is in the process of introducing a facility to fleet management companies so that they can improve the efficiency of trucks or buses by tracking movement and ensuring higher-use, accurate route planning. Premium automakers are also installing a global system for mobile communications inside a vehicle to help trace lost vehicles and track down stolen cars. Corporations can choose enhanced services like user-defined call routing to prevent misuse. Calls can be barred, limiting access to

12

select numbers

and diverting

calls

to one single number.

Broadcasting services are also quite popular, especially among fast food centers that have a central number. Group SMS is quite popular, especially among enterprises both in the service as well as the fast-moving consumer goods (FMCG) segment that have a large field force and need to provide regular updates on inventory status, discount schemes and movement of goods from warehouse to the retail outlet. Banks too find bulk SMS service very useful to forward transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT There will be more competition, forcing operators to constantly focus on differentiations to maintain their lead. The implementation of enhanced networks like 2.5G will enable operators to offer data services. This is an

opportunity to customize and differentiate better. The entry of state-run operators like BSNL and MTNL means that prices will no longer be controlled, thus there is less chance of a cartel being formed. Network coverage in terms of geographic spread and quality of coverage is crucial especially for the business subscriber. The bigger the service provider's national presence, the better it is for businesses. On the roaming front, signing up with a national operator is advantageous.
13

Limited mobility wireless in local-loop services (by fixed network service providers) will be a disadvantage for cellular operators in the short term. Consequently, operators need to streamline their customer relation activities and adopt aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES The operations of this sector are determined as under the Indian Telegraph Act of 1885. A document buried in the sands of time. The next major policy document, which was produced, was the National Telecom Policy of 1994, a consequence of the on going process of liberalization. Year 1851 1943 1985 1986 1991 1994 1994 September 1994 November 1994 December 1994 Event First telephones in India Nationalization of telephone companies DoT was created Creation of MTNL and VSNL Telecom equipment liberalized Licenses for paging Telecom policy announced Guidelines for private sector participation in basic services Cellular licenses issued for metros Tenders for cellular licenses in 19 cities apart from 4 metros

14

January 1995 August 1995 January 1996 November 1998

Tenders for 2nd operator in basic services apart from DoT on circle basis. VSNL launches Internet services TRAI formed Internet policy announced

The National Telecom Policy of 1994 document, which laid out broad policy guidelines rather than a series of action points. Like other policies, it sought to achieve the impossible in finite time like improve quality of service and its availability, wide coverage (a phone in every village), at reasonable rates, etc. The targets in quantifiable terms were installation of 9.5mn additional lines, telephone on demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private operators in value added services. To facilitate licensing, the nation was divided into 20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls in Maharashtra circle and Delhi in itself a circle. The basic premise on which competition has been introduced is that every circle will have one private operator apart from DoT/ MTNL for basic and two operators for cellular. DoT/ MTNL have the option to become the third cellular operator in future. Government did not achieve most of its stated targets. The basic theme, which was broadening the reach of telephony in India, has not been met. Even liberalization policies were not implemented properly. The regulator TRAI was set up after delays and confusion and even after its creation, DoT continued to fight with it in courts. It was also affected by the resource crunch, and financing options
15

like BOT, BOOT and BOLT was not used at all. The major policy direction it showed was to allow private sector entry in both basic and value added services. The intention, though noble failed to achieve its goals because of improper implementation, the economic costs are still borne by the end user. The telecom sector has witnessed some fundamental structural and institutional reforms in the past decade. telecom equipment manufacturing was completely deregulated in 1991. Value-added services (including cellular services) were thrown open to private sector participation in 1992. Basic services were opened to private participation in 1994 by dividing the country into 21 telecom Circles and allowing one private operator per Circle to compete with DoT. An independent telecom regulatory Authority of India was set up in 1997. A new Policy for Internet Service Policy Providers (ISPs) was announced in 1998 allowing independent service providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of DoT, separating policy making function and service provision and corporatization of DoT's operational network are two major institutional reforms, which need to be implemented.

16

Chapter 2

OBJECTIVES AND RESEARCH METHODOLOGY

2.1 Objectives (i) To compare Airtel with already existing players in GSM in particular IDEA AND HUTCH (ii) (iii) To study the Demographics of cellular subscriber. To find the awareness of CDMA/ WLL Technology in Delhi & NCR Region (iv) (v) To find the willingness of GSM users to swtich to WLL To study the threat of WLL in particular to Airtels business.

2.2 Research Methodology Achieving accuracy in any research requires in depth study regarding the subject. As the prime objective of the project is to compare Airtel with the existing competitors in the market and the impact of WLL on Airtel, the research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

17

Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was, the questionnaire method. Further direct interview method, where a face to face formal interview was taken. Lastly observation method as has one been continuous with the the

questionnaire

method,

continuously

observes

surrounding environment he works in. Procedure of research methodology # To conduct this research the target population was the mobile users, Who are using GSM technology. # Target geographic area was Delhi. Sample size of 100 was taken. # To these 100 people a questionnaire was given, the

questionnaire was a combination of both open ended and closed ended questions. # The date during which questionnaires were filled was between 10th Feb. 2003 to 20th Feb. 2003. # Some dealers were also interviewed to know their prospective. Interviews with the managers of GSM service providers were also conducted.

18

# Finally the collected data and information was analysed and compiled to arrive at the conclusion and recommendations given. Sources of secondary data Used to obtain information on, Bhartis history, current issues, policies, procedures etc, wherever required. # Internet # Magazines # Newspapers # Journals # Bharti Circulars # Bharti News Letters

19

2.3 Limitations of the project While compiling the project no such problem can be stated as limitation, as constant help was provided by the faculty members in the effort to bring the project in the shape it is. However a few difficulties cropped up in handling the consumers while conducting the survey, which are the limitations in the project i) ii) The study is restricted to Delhi region only. The sample size is only 100 so nothing conclusive can be derived from this sample size. iii) iv) v) There can be errors in sampling. Time constraints were there. People might give their biased opinion.

20

Chapter 3

COMPANY PROFILE

3.1 Vision "As we spread wings to expand our capabilities and explore new horizons, the fundamental focus remains unchanged: seek out the best technology in the world and put it at the service of our ultimate user: our customer." These are the premise on which Bharti Enterprises has based its entire plan of action. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world-class products and services. Established in 1985, Bharti has been a pioneering force in the telecom sector. With many firsts and innovations to its credit, ranging from being the first mobile service in Delhi, first private basic telephone service provider in the country, first Indian company to provide comprehensive telecom services outside India in Seychelles and first private sector service provider to launch National Long Distance Services in India. As of January 31, 2003, Bharti had approximately 3.21 million total customers nearly 2.88 million mobile and 334,000 fixed line customers. Its services sector businesses include mobile operations in Andhra Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,
21

Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West) circle. In addition, it also has a fixed-line operations in the states of Madhya Pradesh and Chattisgarh, Haryana, Delhi, Karnataka and Tamil Nadu and nationwide broadband and long distance networks. Bharti has recently launched national long distance services by offering data transmission services and voice transmission services for calls originating and terminating on most of India's mobile networks. The Company is also implementing a submarine cable project connecting bandwidth. Bharti Enterprises also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments, it is also the first telecom company to export its products to the USA. Bharti Tele-Ventures' strategic objective is to capitalise on the growth opportunities that the Company believes are available in the Indian telecommunications market and consolidate its position to be the leading integrated Chennai-Singapore for providing international

telecommunications services provider in key markets in India, with a focus on providing mobile services. The Company has developed the following strategies to achieve its strategic objective:

22

Focus on maximizing revenues and margins; Capture maximum telecommunications revenue potential with minimum geographical coverage;

Offer

multiple

telecommunications

services

to

provide

customers with a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer advanced mobile data services;

Focus on satisfying and retaining customers by ensuring high level of customer satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve operational efficiencies.

3.2 Businesses Bharti Tele-Ventures current businesses include

Mobile services Fixed-line National and international long distance services VSAT, Internet services and network solutions

3.3 Competitive Strengths

23

Bharti Tele-Ventures believes that the following elements will contribute to the Company's success as an integrated

telecommunication services provider in India and will provide the Company with a solid foundation to execute its business strategy:

Nationwide Footprint - As of January 31, 2003, approximately 92% of India's total mobile subscribers resided in the Company's fifteen mobile circles. These 15 circles

collectively accounted for approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to better anticipate industry trends and capitalise on new telecommunications-related business opportunities;

The strong brand name recognition and a reputation for offering high quality service to its customers;

Quality management team with vision and proven execution skills; and

The

Company's

strong

relationships

with

international

strategic and financial investors such as SingTel, Warburg Pincus, International Finance Corporation, Asian

Infrastructure Fund Group and New York Life Insurance. 3.4 Brand Architecture: Bharti is working on a complex three-layered branding architecture to: Create specific brands for each service,
24

 Build sub-brands within each of these services and Use Bharti as the mother brand providing the group its corporate identity as well as defining its goal to become a

national builder of telecoms infrastructure.

BHARTI

AIRTEL
(Cellular Operations)

TOUCHTEL
(Basic Service Operations)

INDIA ONE
(National Long Distance)

25

AirTel - The flagship brand for cellular operations all across the country. Touchtel operations. India One - The brand for national long distance (NLD) telephony Though the costs of creating new brands are heavy but the group wants to create distinct independent brands to address different customers and profiles. Brand Strategy: To understand the brand strategy, lets first look at the brand building exercise associated with AirTel a brand that had to be repositioned recently to address new needs in the market. When the brand was launched seven years ago, cellular telephony wasnt a mass market by any means. For the average consumer, owning a cellular phone was expensive as tariff rates (at Rs 8 a minute) as well as instrument prices were steep sometimes as much as buying a second-hand car. Bharti could have addressed the customer by rationally explaining to him the economic advantage of using a mobile phone. But Sachdev says that such a strategy would not have worked for the simple reason that the value from using the phone at the time was not commensurate with the cost. The brand earmarked for basic service

26

Instead of the value-proposition model, we decided to address the sensory benefit it gave to the customer as the main selling tack. The idea was to become a badge value brand, he explains. So the AirTel leadership series campaign was launched showing successful men with their laptops and in their deluxe cars using the mobile phone. In simple terms, it meant AirTel was positioned as an aspirational brand that was meant for leaders, for customers who stood out in a crowd. Did it work? Repeated surveys following the launch showed that there were three core benefits that were clearly associated with the brand leadership, dynamism and performance. These were valuable qualities, but they only took AirTel far enough to establish its presence in the market. As tariffs started dropping, it became necessary for AirTel to appeal to a wider audience. And the various brand-tracking exercises showed that despite all these good things, there was no emotional dimension to the brand it was perceived as cold, distant and efficient. By 2000, Sachdev and his team realized that in a business in which customer relationships were the core this could be a major weakness. The reason? With tariffs identical to competitor Essar and roughly the same level of service and schemes, it had now become important for Bharti to humanize AirTel and use that relationship as a major differentiation. The brand had become something like Lufthansa cold and efficient. What they needed was to become Singapore Airlines,

27

efficient but also human. A change in tack was important because this was a time when the cellular market was changing. The leadership series was okay when you were wooing the crme de la crme of society. Once you reached them you had to expand the market so there was need to address to new customers. By that time, Bharti was already the leading cellular subscriber in Delhi with a base of 3.77 lakh (it now has 1.2 million customers). And with tariffs becoming more affordable as cell companies started cutting prices it was time to expand the market. How could Bharti leverage this leadership position down the value chain? Surveys showed that the concept of leadership in the customers minds was also changing. Leadership did not mean directing subordinates to execute orders but to work along with a team to achieve common objectives it was, again, a relationship game that needed to be reflected in the AirTel brand. Also, a survey showed that 50 per cent of the new customers choose a mobile phone brand mostly through word-of-mouth endorsements from friends, family or colleagues. Thus, existing customers were an important tool for market expansion and Bharti now focused on building closer relationships with them. That is precisely what the brand tried to achieve through its new positioning under the AirTel Touch Tomorrow brand campaign. This set of campaigns portrayed mobile users surrounded by caring family members. Says Sachdev: The new campaign and

28

positioning was designed to highlight the relationship angle and make the brand softer and more sensitive. As it looks to expand its cellular services nationwide to eight new circles apart from the seven in which it already operates Bharti is now realizing that there are new compulsions to rework the AirTel brand, and a new exercise is being launched to this effect. Right now, the company is unwilling to discuss the new positioning in detail. But broadly, the focus is on positioning AirTel as a power brand with numerous regional sub-brands reflecting customer needs in various parts of the country. If AirTel is becoming more humane and more sensitive as a brand, Bharti has also understood that one common brand for all cellular operations might not always work in urban markets that are now getting increasingly saturated. To bring in new customers, the company decided that it needed to segment the market. One such experiment, launched last year, is Youtopia, a brand aimed at the youth in the 14 to 19 age bracket and for those who are young at heart. With its earlier positioning, AirTel was perceived as a brand for the well-heeled older customer; there was nothing for younger people. With Youtopia, AirTel hoped to reverse that. In order to deliver the concept, AirTel offered rock bottom tariff rates (25 paise for 30 seconds) at night to Youtopia customers a time when they make the maximum number of calls. It also set up merchandising exercises around the scheme like a special portal for young people to buy things or bid for goods.
29

The company is now looking at offering other services at affordable prices to this segment which include music downloads on the mobile and bundling SMS rates with normal calls to make it cheaper for young people to use. The other experiment that Bharti has worked on is to go in for product segmentation through the Tango brand name. The brand was created to offer mobile users Internet-interface services or what is known as WAP (Wireless Application Protocol). The idea was to bring Internet and mobile in perfect harmony. The name was chosen from the popular movie title It Takes Two To Tango: basically, you need the two services to tango to offer customers a new choice, says Sachdev. The success of Tango was modest: the number of subscribers around 2,000.(mid- 2002) This, however, had less to do with the branding exercise as with inefficiency of service (accusingly slow download speeds) and the limited utility of WAP services. Subsequently, the ads were withdrawn, but the company reiterated that the branding exercise could be revived because Tango will be the brand to offer GPRS services or permanent Internet connectivity on the mobile phone which AirTel is expected to launch soon. 3.5 The Magic: Perhaps the more ambitious experiment has been with Magic the pre-paid card. The idea was to make the brand affordable,

30

accessible and, most importantly, feasible as a means of expanding the market even faster. PHASE I Magic was aimed at bringing in infrequent users of a mobile phone into the market and assure him that he would have to pay only if he made a call. Such a customer used the phone sparingly mostly for emergencies and was not willing to pick up a normal mobile connection with its relatively high rentals (pre-paid cards do not include rental charges).

31

To achieve its objectives Bharti did three things. One, the product was made available at prices ranging from Rs 300 to Rs 3,000 with no strings attached and was simple to operate. Two, the product was made accessible and distributed through small stores, telephone booths and even kirana shops so that the offering was well within arms reach. Third, to make the product more approachable to the customer, the company came with vernacular ad campaigns like Magic Daalo Se Hello which appealed to local sensibilities. This apart, the company roped in Karisma Kapoor and Shah Rukh Khan for a major ad campaign all across Delhi, a ruse that saw the number of subscribers go up from 5.47 lakh to 12 lakh today, overtaking Essars branded pre-paid card Speed, which was launched much ahead of Magic. The company is now re-working its Magic strategy even further. Earlier, the branding strategy was aimed at roping in only interested customers that is, customers who were already inclined to opt for mobile services. But now, with basic service providers having been allowed limited mobility at far cheaper rates, mobile service providers could find themselves under threat again. That is why the new exercise is aimed at co-opting non-adopters. While the exact strategy is under wraps, insiders say the new

32

branding strategy would be aimed at offering them value which they had not perceived would be available from using a pre-paid card. PHASE II Bharti used AirTel Magic to build a strong value proposition and accelerate market expansion through Indias first national pre-paid card TV brand campaign

First time ever in India - any pre-paid card brand goes on TV A combination of the film genre exposed through the TV medium designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value proposition of AirTel Magic - Mumkin Hai come alive

All elements - user imagery, context, tone & language created to connect the category to the lives of the SEC B & SEC C segment the middle class non-mobile user.

AirTel Magic positions itself on the platform of being excellent for emergency situations - increasing productivity as a part of everyday life.

Sharukh

Khan

makes

everything

in

life

possible

while

romancing pretty Kareena Kapoor with AirTel Magic, Indias leading pre-paid mobile card. AirTel today unveiled its strategy for market expansion with the launch of its new AirTel Magic pre-paid card brand campaign

33

Magic hai to Mumkin hai. The strategy is targeted at the non-user segment defined as young adults, 15-30 years of age; in the Sec B & C segment is aimed at accelerating market expansion. The

value proposition is centered around a persons desire to make all his / her dreams, ambitions & aspirations instantly possible. The new campaign for AirTel Magic is all about empowering millions of Indians to be on top of their lives. The brand is positioned to be relevant to the mass-market who want to make all their dreams, hopes & desires come alive instantly. (At just Rs.300/- per month AirTel Magic is so easy to buy.) Improving productivity, letting you befriend the world and opening up new horizons. It gives you the freedom to control your life in a way never possible before. Indeed, anything that you think is possible is possible with AirTel Magic. The new brand slogan

Magic hai to Mumkin hai has been specially created to capture this effectively. This strategy is designed to help us talk to this segment directly in the tone, manner & language of the masses. The Mumkin hai value proposition will help us expand the market and gain a higher percentage of market share in the process. The brand ambassadors Sharukh Khan and Kareena Kapoor embody this can do or Mumkin Hai spirit (infact that is the reason they were selected as brand ambassadors). Sharukh rose from a TV actor to become Indias top film star and national heartthrob. Kareenas success is due to her attitude, talent, hard work and the sheer ability to make a mark in such a short time.

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Both these stars have said Mumkin hai and made it happen for themselves. The genre of this new strategy & campaign is Hindi cinema led. This genre connects millions across India. The spirit of romance, dancing the Indian cinema, well known to most as Bollywood, holds millions of Indians together as one. The new TV campaign of AirTel Magic crafted in the Hindi film idiom, magnifies the empowering optimism of Mumkin Hai, in the endearing situation of a boy-girl romance. Where Sharukh Khan, sets his eyes on Kareena Kapoor and wins her love with the help of AirTel Magic. (Poignantly conveying that special feeling we all get when a dream is made possible and a victory of the heart is won). The strategy & new brand campaign is targeted at the large untapped base of intending mobile customers from Sec A, B & C. The estimated addressable market of such customers in the next two years is around 25 million in AirTels 16 states. The new

strategy aims at correcting the perception that the mobile category is useful mainly for business or work related scenarios. The new strategy, brand positioning & brand slogan is an outcome of an extensive nationwide research and is an integral part of AirTel Magics new multi-media campaign. The campaign has been created by Percept Advertising.

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The Airtel Re design:-

Old Logo New Logo The new logo for Airtel service was designed after an extensive brand audit across different cities. This smart, contemporary form was in response to the overall brand strategy of creating a younger, more friendly brand persona. The groups marketing effort has been reinforced with the relaunch of the Airtel brand logo, with a new slicker, international and younger look. Under the new brand strategy, Airtel will now become the power brand and sub brands like Tango (for WAP services), Youtopia (for the youth) will be withdrawn. Even the Magic pre-paid brand will be repositioned as Airtel Magic. The idea was to rework the brand so that it is relevant to a larger segment of the population as we are now expanding into the smaller cities and towns. Our studies show that 70 per cent of the new customers in the pre-paid category are youth so their needs

36

had to be addressed. The new brand look will be supported by an over Rs 100 crore advertising budget. The high growth markets are between 15 years and 19 years old, salaries of Rs 6,000 to Rs 10,000 a month and the SEC B and C categories, which include shopkeepers, daily wagers and plumbers, amongst others which the company wants to target efficiently.

Other Brand Building Initiatives:The main idea is to stay ahead of competition for at least six months. Working on the above game plan Bharti is constantly coming up with newer product offerings for the customers.
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The focus, of course, is to offer better quality of service. To make the service simpler for customers using roaming facilities, Airtel has devised common numbers for subscribers across the country for services like customer care, food services and cinema amongst others. It will also launch a unified billing system across circles so, customers moving from one place to another do not have to close and then again open new accounts at another place. To assist customer care personnel to deal with subscriber queries, a storehouse of 40,000 frequently asked questions and their answers have been stored on the computers. Bharti expects that most of its new customers (one estimate is that it would be 60 to 70 per cent of the total new subscriber base) would come from the pre-paid card

segment. So, they must be given value-added products and services which competitors dont provide. Bharti, for the first time for a cellular operator, has decided to offer roaming services even to its pre-paid customers, but the facility would be limited to the region in which they buy the card. To ensure that customers dont migrate to other competing services (which is known as churn and ranges from 10 to 15 per cent of the customer base every month), the company is also working on a loyalty program. This will offer subscribers tangible cash benefits depending upon their usage of the phone.

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The loyalty program will not be only for a badge value, it will provide real benefits to customers. The idea is to create an Airtel community.

Another key area which Bharti is concentrating its attention upon is a new roaming service launched in Delhi under which calls of a roaming subscriber who is visiting the city will be routed directly to his mobile instead of traveling via his home network.

The company also offers multi-media messaging systems under which customers having a specialized phone with a inbuilt camera can take pictures and e-mail it to friends or store it in the phone. The cost per picture is between Rs 5 to Rs 7.

Bharti is also aware that it has to make owning a ready-touse cellular service much easier than it is today. A key area is to increase the number of activation centers. Earlier Bharti had 250 Airtel Connect stores which were exclusive outlets (for its services) and about 250 Airtel Points which were kiosks in larger shops. Now activation can be done by all of them, and not only by Connect outlets, all within 15 to 20 minutes. In comparison, the competition takes two to four hours.

Pre- paid cards are really catching up with the mobile phone users and it is actually helping the market to increase. First, they are easier to obtain and convenient to use. Unlike postpaid, one need not pay security deposits for picking up a prepaid card. It is often available even with paanwalas. As befits
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a fast-moving consumer service, the game is now moving beyond price to expanding distribution reach and servicing a well-spread-out clientele with technology and strategic

alliances. Bharti is focusing on two factors to make pre-paid cards more attractive. Keeping the entry cost low for consumers and making recharging more convenience. Bharti is in the process of launching a new system in alliance with Mumbai-based company Venture Infotech which will enable a pre-paid card user to renew his subscription by just swiping a card. The system will not only save users the hassle of going out and buying a card every time it expires but also enable mobile companies to reduce the cost of printing and distributing cards. Bharti Televentures has tied up with 'Waiter on wheels,' a company delivering food at home, to reach its Magic pre-paid cards to subscribers' doorsteps. The company is also joining hands with local grocery shops which will enable users to recharge their cards by just making a phone call to the shop. Apart from improving the convenience of recharging, mobile operators are beefing up their distribution channels. The company is constantly innovating to enhance the value proposition for its pre-paid service. They are leveraging technology to expand their distribution network and deliver round-the-clock recharge options to its MOTS (Mobile On the Spot) subscribers. Bharti Cellular has also launched a special service,

CareTouch, for high-value, corporate customers, providing them with instant, single-point access for any assistance they
40

require. Customers can dial 777 and enjoy a slew of services, which includes easier payment of bills, service on priority basis, and value-added services without any additional paper work. Bharti Cellular is offering a range of services without going through an interactive voice recorder ensuring that they save time. Dedicated CareTouch executives are expected to assist customers with any service on priority basis. Besides the regular proactive reminder calls for bill payment, customers can also call CareTouch for bill

payments at free of cost. AirTel presented MTV Inbox; the first on-air SMS based interactive music dedication show exclusively for AirTel and AirTel Magic customers. Highly interactive VJ based show with real-time feedback mechanism. Both brands joined hands to target the high growth youth segment. Bhartis View on its Branding strategy:First, brand building efforts in todays context have to be seen in a more holistic manner. Delivering value on a sustained basis is perhaps the most potent key to build a brand that lasts. Unflinching orientation to customer needs is the second key success factor. Customers (be it for industrial products or consumer goods and services) across the world are more informed and, at the same time, becoming more individualistic in their needs and far more demanding with the passage of time. Pro-active tracking of shifts in consumer behavior, anticipating redefined or emerging customer needs, and then reacting in real41

time are essential to attract and retain customer loyalty a key element of creating brand equity in the present situation. Customizing the product (and communication of its benefit) to meet the specific needs of various consumer/customer subsegments is the third element in creating brand appreciation. As far as allocation of time and financial resources are concerned, too many companies mistakenly allocate a disproportionate amount on mere advertising and promotion. This is not to say that advertising and promotion are less relevant. On the contrary, with more choices and higher media clutter, businesses need to budget for an increasingly higher spend on their brand promotion but this has to be undertaken in tandem with enterprise-wide

reengineering of the business philosophy and core design, production, and delivery operations for the product itself. The positive spin to this argument is that by first addressing the fundamentals, the enterprise itself becomes more competitive. This can be the beginning of a virtuous cycle wherein brand equity continues to increase as the enterprise sustains delivery of an appropriate product or service at an ever increasing value. It is, however, crucial to note that in the years to come, not only will the cost of building a regional or a national (or an international) brand will continue to rise but also the time taken to do so will be longer and will need sustained and focused efforts.

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Chapter 4

FINDINGS AND ANALYSIS

Age Group Graph

AGE GROUP
15-21 15%

28-35 20%

21-28 65%

As we can see from the above graph, the people who are in the age group of 21-28 years are the ones who are the maximum users of mobile phones. This segment is the one which gives maximum business to the mobile operators. This segment constitutes the young executives and other office going people. They are 65% of the total people who were interviewed. The next age group are the people who are 28-35 years old. They are 20% of the total. They are those who are at home or have small business units etc. And the next age group is the youngest generation who are 15-21 years old. They are school and college going students and carry

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

OCCUPATION 10% 20% 15%

55% STUDENTS EXECUTIVES HOUSEHOLDS OTHERS

As the above graph shows that 55% of the total people interviewed are working. So, these people are the ones who are the maximum users of mobile phones. They are the young executives, managers, Tele - callers etc. who require mobile for their official purposes. The next category is the households, who are either housewives, small units which operate from their homes etc. They are 20% of the whole . The next segment is the students. They are 15% of the whole. And 10% of the whole is a category who are the professionals.

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Service Provider Graph

SERVICE PROVIDER

5% 15% 30%

50%

IDEA

AIRTEL

HUTCH

OTHERS

The above graph shows a slice of 50%. These are the total no. of people who are using Airtel. It seems that people are more aware of Airtel than any other brand. The next popular brand is Hutch. 305 of the people interviewed had Hutch connections. The next popular brand was Idea. 15% people had Idea connections. As it came very late in the market when Airtel had established it self very well. So, that could be one of the reasons of such a low percentage. The remaining 5% had trump connections.

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Customer Service At Airtel Graph

CUSTOMER SATISFACTION LEVEL

10% 20%

10% 60% FULLY DISSATISFIED PARTIALLY FULLY DISSATISFIED

As the above graph clearly shows that customer services at Airtel seems poor. 60% of the people are dissatisfied with the customer services provided by Airtel. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. 10% of the people were fully dissatisfied with the customer services of Airtel. This could leave an impact on the mind of the consumer. He can even switch over his brand. 20% of the people seemed partially satisfied with the customer services and only 10% seem to be fully satisfied with Airtels customer services, which is a very small amount.

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Type Of Card Graph

TYPES OF CARDS
SIM CARD 15%

CASH CARD 85%

Cash cards seemed quite popular among the people interviewed. 85% of the total mobile users were having cash card connections. This means that the cash cards should be easily and readily available in the local markets. Airtel should make sure that Magic is available in each and every nook and corner of the market. 15% of the people were having sim connections which is the regular bill.

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Monthly expense graph

Monthly Expense

24%

12%

Rs 600 Rs 450 Rs 200

64%

People on an average spend RS 500 per month as their mobile phone expense. 64% people spend this amount. 24% people spend RS 300 per month as their monthly mobile expense. And the remaining 12% had an expense more than RS 1000, they could the ones having sim connections or having cash cards and having a lot of business calls on their mobiles.

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Awareness About WLL Graph

AWARENESS ABOUT WLL

NO 45%

YES 55%

WLL seemed to be a new word for many of the people. 45% of the people were not at all aware of such a technology. So, in order to get the answer for this question they were first explained the concept. Only, 55% people knew what WLL is all about.

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Awareness of WLL Players Graph

AWARENESS OF WLL PLAYERS

TATA INDICOM 15%

RELIANCE 85%

Reliance

was

the

brand

which

was

popular

amongst

the

interviewed people. As Reliance had done so much advertising and has it banners and hoarding spread all over Delhi. So, this could be one the reasons of its popularity. Tata was hardly a known brand in this new field. Possibly, because of less promotions done by them as compared to Reliance.

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On the basis of analysis of the questionnaire I have found that the maximum no. of people who use mobile phones are in the age group of 20 to 28. who are the young executives and other office goers. They spend a maximum of RS. 500 as their mobile expense. There are more no. of prepared cards than post paid cards. The mobile users want to spend money side by side than to spend money at the end of the month on a big bill. Now when I compared Airtel with its competitor from the point of view of the consumer I found that on the basis of Tariff plan, value added services and billing accuracy Airtel is at par or ahead of its competitor but in the case of customer care and availability they lag behind there competitors. As, Airtel has a hold in the market because it has the maximum no. of connections, so it must improve upon it customer services. As far as WLL is concerned

people are aware about it but not many people are aware about Tata. They only Know more about Reliance. People at this point of time are not interested to switch over from GSM to WLL.

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Chapter 5

STRENGTHS AND LIMITATIONS OF MAJOR COMPETITORS

5.1 HUTCHISON GROUP Hutchison Group (Hutchison Max Telecom, Hutchison Essar

Telecom, Hutchison Essar South, Fascel and Usha Martin Telekom) Strengths It has existing operations in three of the four metros (New Delhi, Mumbai and Kolkatta) and has recently started service in Chennai. Hutchison Whampoa, which is controlled by Hong Kong billionaire Li Ka-shing, is cash rich and will be able to finance any capital investments easily. It has a strong brand image (Orange) in Mumbai, and the brand could be leveraged in the other circles. It is also perceived as an innovative service provider. Limitations The 49 percent limit on foreign ownership could pose a problem in Hutchison's plan to expand to other circles. It will face increased competition in New Delhi and Mumbai. MTNL has commenced its cellular offerings there, and Idea and Bharti have also acquired licenses to operate in New Delhi and Mumbai, respectively.
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5 . 2 Idea (Birla-AT&T-Tata and RPG Cellcom) Strengths Idea has service licenses in two of the metros (Mumbai and New Delhi), with extensive retail outlets in Mumbai (over 1,500). It has also managed to secure licenses for a large, contiguous service area covering Southern and Central India. It currently has the largest market share and is able to leverage on economies of scale in its operations. It is backed by large and reputed Indian business house Birla and Tata. It has an experienced foreign partner in AT&T.

Limitations Idea does not have cellular licenses in any Southern states of India except for Andhra Pradesh. With the BPL merger not taking off, it has deprived Idea of a presence in South India. It will face intense competition in its service area from the Bharti Group and Hutchison. It will have to manage cultural differences very carefully. There is little clarity as to who is providing strategic direction to the group Birla, Tata or AT&T.

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Idea has not been able to launch services in Delhi due to technical issues related to spectrum allocation. The delay puts it at a disadvantage.

5.3 GROUP BPL Strengths BPL services some of the most lucrative circles Mumbai, Maharashtra, Tamil Nadu and Kerala. The company has extensive retail outlets in Mumbai (over 1,500). It has also managed to secure licenses for a large, contiguous service area covering Southern and Central India. BPL Mobile has a good understanding of technology and was one of the first to launch GPRS services in the country. The first MMS service was launched in Mumbai by BPL Mobile on October 2002. It also has a good brand name and has a strong consumer franchise. It has an experienced foreign partner in France Telecom.

Limitations BPL will be limited by its lack of coverage. It will face intense competition in its service area from the Bharti Group and Hutchison in Mumbai. With interest in varied areas of consumer electronics, BPL may be strapped for cash to invest in its telecom venture.

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Chapter 6

THREAT OF WLL TO AIRTELS BUSINESS

6.1 Wll Explained? Since the advent of the telephone system, copper wire has traditionally provided the link in the local loop between the telephone subscriber and the local exchange. But copper's heyday in the local loop is coming to an end. Economic imperatives and emerging technologies are opening the door for WLL solutions and WLL uses wireless technology coupled with line interfaces and other circuitry to complete the last mile between the customer premise and the exchange equipment.

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Bill Frezza, president of Wireless Computing Associates, calls WLL "the hot telecom growth industry of the next decade." According to the research firm MTA-EMCI, the worldwide WLL market will reach 202 million subscribers by the year 2005. Herschel Shosteck Associates estimates there will be a demand for WLL service for 172 million to 307 million subscribers but that actual service will be provided for 50 million to 60 million subscribers by the year 2000. The growing demand for high-bandwidth transmission capable of supporting rich-data types places additional requirements on a WLL system. Operators must evaluate the various technologies based on their ability to support data rates up to integrated services digital network (ISDN) speeds. How WLL Is Shaking The Market? The WLL revolution is underway. WLL suppliers and operators are flocking to emerging markets, using whatever available wireless and line interface technologies are at hand to achieve fast time to market. Because there are no definitive WLL standards. Ultimately the appropriate protocol technology will depend on an array of applications considerations, such as size and population density of the geographic area (rural versus urban) and the service needs of the subscriber base . In fact, there are many good reasons why different wireless technologies will serve some applications better than others. The challenge for WLL vendors is to identify the optimal wireless protocol for their unique application needs, then

56

reduce cost per subscriber through silicon and deliver integrated solutions to the marketplace. 6.2 WLL Market Overview. According to the International Telecommunications Union (ITU), worldwide local-loop demand is expected to result in 800 million new lines by the year 2000. Of these, 685 million will be in emerging countries, and 115 million will be in developed countries.

Worldwide Local-Loop Demand

which has been sourced from ITU/AMD, is based on ITU historical data from 1992 to 1994. It assumes the growth rate for each country remains the same as from 1992 to 1994. It also assumes that unserved demand, which represents people on official waiting lists as of 1994 (43 million), will remain a constant percentage of installed lines.

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The WLL market is just entering its infancy. Because of this, projections have been extended out to the year 2002 to show the true potential of this market. By the end of 2002, forecasts indicate that there will be 339 million WLL lines installed throughout the world. The vast majority of these lines will be in emerging countries, with a small percentage in developed countries. The underlying assumption of this forecast is that demand for POTS in emerging countries will outstrip the post telephone & telegraph administration (PTT's) abilities to install copper wire. Also, the costs of WLL will continue to decline, while the cost of copper wire installation will stay flat. The lower cost of WLL (especially in lowdensity population areas) and the ability to install WLL more rapidly than copper wire will motivate the PTTs of the emerging countries to serve excess demand with WLL. Some projections assume that although WLL serves only 5 percent of the current excess POTS demand in emerging countries, it will grow to serve 70 percent of the excess demand by the year 2002. Similarly, it is estimated that WLL will be used for a growing percentage of new lines even in locations where copper-wire service is already available. This forecast assumes that WLL's share of these lines in emerging countries will grow from 5 percent in current years to 35 percent by 2002. The penetration of WLL into developed countries is assumed to be much lower than in emerging countries. The PTTs are able to keep up with the demand for new POTS lines so unserved demand is not an issue. The requirement for WLL in developed countries will come from companies that want to bypass the established local

58

phone companies or customers who want the additional services that WLL can provide. This is a small subset of the total population so it can be assumed that WLL will gain only 5 percent . Worldwide Number of Potential WLL Lines (in millions) 199 8 34 13 47

1997 emerging countries developed countries Total WLL Market Segments 16 7 23

1999 64 21 85

2000 111 31 142

2001 183 37 220

2002 296 43 339

The two basic market segments for WLL are for basic phone service in emerging economies and for wireless bypass in developed economies. The requirements for each of these segments in urban/suburban and rural area. Developed (Bypass) High-speed data Urban/subur ban enhanced services limited mobility high traffic/subscriber densities High-speed data enhanced services Rural limited mobility low subscriber densities wide coverage Emerging (POTS) POTS (voice quality) modem data no (limited) mobility high traffic/subscriber densities POTS (voice quality) modem data no (limited) mobility low subscriber densities

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COMPARISON OF WLL SYSTEMS 6.3 Current Scenario In India Currently there are two major players in India who are providing WLL Services. TATA Indicom was launched in Jan, 2003 and Relaince has just been launched. Initially it was expected that they would pose a major threat to GSM service provider when they were supposedly giving both SMS and Roaming facilities but now as TRAI has refused to allow WLL to give roaming facilities and status of SMS is still not cleared so currently they should not be giving as much of threat to Airtel. Advantages of WLL 1. Less running cost. 2. Better pulse rate. 3. Cheaper STD rate with the same service provider Disadvantages of WLL 1. Roaming facility is not available. 2. SMS is not available. 3. Instrument cost is high. 4. Activation takes time. 5. Once you pay for set for Relaince you are bound to it for three years even after that are not the owner of the set.

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6. It is a new technology in India and people are a bit apprehensive about it. Now considering above advantages and disadvantages of WLL, I think that WLL service provider should not be posing a great threat to Airtel provided if Airtel keep its customer satisfied and keep coming out with innovative and attractive tariff plans.

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Chapter 7

CONCLUSION & RECOMMENDATIONS

After analyzing the findings of the research, I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile are in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spend RS 500 on their connections. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. Although people are aware about the tariff plans offered by WLL service providers, but right now they are not in hurry to adopt it. The public wants to wait and watch their respective performances.

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RECOMMENDATIONS i) Airtel should look into the short comings of its customer care service. ii) Airtel should make sure, that their prepared card should always be readily available with the retailers. iii) iv) Airtel should keep on coming with attractive tariff plans. As maximum no. of users are between 20 to 28 they should specially come out with some plans which are attractive for this segment. v) Main advantage of WLL is its tariff plan. So GSM service providers should try to reduce their tariff plans if possible, at least initially.

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BIBLIOGRAPHY

BOOKS KOTLER PHILIPS, MARKETING MANAGEMENT, PUBLISHED BY PRENTICE HALL OF INDIA PVT.LTD., Ed. 10, 2003. HAWKINS & TULL, MARKETING RESEARCH, PUBLISHED BY PRENTICE HALL OF INDIA PVT.LTD. Ed. 8, 2003. AAKER KUMAR DAY, MARKETING RESEARCH

MAGAZINES BUSINESS INDIA BUSINESS WORLD

WEBSITES: HTTP:// WWW.COAI.COM

HTTP://WWW.TRAI.COM

HTTP://ECONOMICSTIME.COM HTTP://KHOJ.COM

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ANNEXURE

65

QUESTIONNAIRE
NAME: AGE: SEX: M/F OCCUPATION: 1. What mode of communication are you using presently? Telephone Cell phone E-Mail Any other .. 2. Are you using a GSM mobile? Yes No 3. Present GSM service provider: Airtel Idea Hutch other 4. Are you satisfied with the customer service provided by Airtel? Fully Partial Dissatisfied Fully dissatisfied 5. Does your service provider offers schemes time and again? Yes Sometimes Rarely Not at all 6. Good telecom services to you is Very important Some what important Not very important Not at all important
66

67

7. Do you feel that existing service provider listens to your problem? Everytime Sometime Rarely Not at all 8. Do you have: A cash card A sim connection 9. Do you easily get a cash card from the local market? Always Occasionally Not at all 9. Do you understand the concept of WILL ? Yes No 10. Which of the following have you heard about? Tata Infocom Reliance 11. What do you think should be the rent on the usage of cell phones per month? 600 Rs. 450 Rs 200 Rs. 12. Are you waiting and watching the results of reliance? Yes No Doesnt matter

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HUTCH High Dependability Of Connection Ease of getting connection Clarity of sound Reach Roaming facility Caller identification Promotional schemes Price of sim card Medium Low High

AIRTEL Medium Low High

IDEA Medium Low

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