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Program: PGCSMM
Subject:Marketing
Topic: Bharti Enterprises & Airtel

Situation Analysis & Market Environment
MOBILE TELEPHONY AND ITS CHANGING SCENERIO IN INDIA
Exactly ten years ago, Jyoti Basu in Calcutta called Sukh Ram in Delhi in what was the
first mobile phone call in India. Brick sized cell phones used to cost Rs. 45,000 and each
call costed Rs. 16.5/minute. Back then, cell phone was a status symbol. Today, there are
over 60 million mobile connections in India (expected to double in number in next 12
months). A local call costs around Rs 1/min and a cell phone can be purchased for less
than Rs. 2000.
Wireless technology has been a boon for India. In a country where setting up wired
infrastructure is very expensive and time consuming, wireless is the perfect solution to
connect remote villages. The timing was also just right as India escaped the burden of
legacy technology and reaped the benefits of latest GSM technology.
Cell phones have not been just about technology. They have brought about a cultural
change in the country. SMS is the favorite means of communication for everybody today.
The revolution in computing in countries like India will also come through mobile
phones. What PC did to offices and then to masses in developed countries, mobile phones
will do in developing countries.
Time was when it took several years to get a new telephone connection in India. Now,
there is less pressure than ever before for fixed landlines as mobile phone subscribers
appear poised to outnumber those with a fixed line.
By year's end, India may become one of the few countries where the mobile revolution is
complete and the mobile reigns supreme, just ten years after it was first introduced.
Every month, India adds another 1.5 million mobile subscribers to the 28 million mobile
phone users registered last December.
In January 2003, one year before, India had just 10 million mobile subscribers
When mobile telephony was introduced in India in 1994, there were just a few service
providers, such as AirTel.
It was a heavily regulated sector with prohibitive license fees, high call charges of 30
cents per minute, and expensive handsets. Then, only the privileged could use a mobile in
India. But in the last four years, call charges have fallen and license fees have become
more manageable.
The distribution of different Mobile services operating in India with the exact nos. of
mobile users is as mentioned in the Map shown here. We can arrive at the conclusion that
AirTel is PAN INDIA SERVICE PROVIDER with largest user network.
In the next few pages I am going to present the a report about Bharti Business Group and
AirTel in particular about there Vision, Business structure, present situation, future plans,
hierarchy, their working, their Ad campaigns, competitions.
GEOGRAPHICAL DISTRBUTION OF SERVICE PROVIDERS

BHARTI ENTERPRISES
Company Profile
Bharti Airtel is one of India's leading private sector providers of telecommunications
services based on an aggregate of 25,885,709 customers as on July 31, 2006, consisting
of 24,337,837 GSM mobile and 1,547,872 broadband & telephone customers.
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 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.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE).
Partners
The company has a strategic alliance with SingTel. The investment made by SingTel is
one of the largest investments made in the world outside Singapore, in the company.
The company also has a strategic alliance with Vodafone. The investment made by
Vodafone in Bharti is one of the largest single foreign investments made in the Indian
telecom sector.
The company’s mobile network equipment partners include Ericsson and Nokia. In the
case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others. The Company also
has an information technology alliance with IBM for its group-wide information
technology requirements and with Nortel for call center technology requirements. The
call center operations for the mobile services have been outsourced to IBM Daksh,
Hinduja TMT, Teletech & Mphasis.
Bharti Enterprises has successfully focused its strategy on telecom while straddling
diverse fields of business. From the creation of 'Airtel', one of India's finest brands, to
becoming the largest manufacturer and exporter of world class telecom terminals under
its 'Beetel' brand, Bharti has created a significant position for itself in the global
telecommunications sector. Bharti Airtel Limited is today acknowledged as one of India's
finest companies, and its flagship brand 'Airtel', has over 25 million customers across the
length and breadth of India.
While a joint venture with Teletech Inc., USA marked Bharti’s successful foray into the
Customer Management Services business, Bharti Enterprises’ dynamic diversification
has continued with the company venturing into telecom software development. Recently,
Bharti has successfully launched an international venture with EL Rothschild Group
owned ELRO Holdings India Ltd., to export fresh Agri products exclusively to markets
in Europe and USA.
LIST OF SEPARATE ENTITITES OF BHARTI GROUP
Bharti Airtel Ltd
Bharti Airtel Ltd is India's leading provider of telecommunications services. The

company has 4 distinct Business divisions - Mobile & telephone services, broadband
services, long distance services and enterprise services.
Bharti TeleTech Ltd
Bharti Teletech Ltd manufactures and exports world-class telecom equipment under the
brand 'Beetel'.
Telecom Seychelles Ltd
Telecom Seychelles Ltd provides telecom services in Seychelles, under the brand 'Airtel'.
Bharti Telesoft Ltd
Bharti Telesoft Ltd delivers best-in-class, revenue-critical VAS products and services to
telecom carriers.
TeleTech Services (India) Ltd
Teletech Services (India) Ltd is joint venture with Teletech Inc., USA. It offers a range of
Customer Management Services.
FieldFresh Foods Pvt Ltd
FieldFresh Foods Pvt. Ltd. is Bharti's venture with EL Rothschild Group owned ELRO
Holdings India Ltd., to export fresh Agri products exclusively to markets in Europe and
USA.
BHARTI AIRTEL : A FACT FILE
Name: Bharti Airtel Limited
Business Description
Provides mobile, broadband & telephone (fixed line) and enterprise services (carriers &
services to corporate)
Established July 07, 1995, as a Public Limited Company
Highlights for Second Quarter and Half Year Ended September 30, 2006
 Market leader with a market share of all India mobile subscribers at 21.4%
 Highest ever-net addition of 41.1 lakh customers in a single quarter.
 Q2 Total Revenues of Rs.4,357 crore (up 61% Y-o-Y)
 Q2 EBITDA of Rs. 1,702 crore (up 67% Y-o-Y)
 Q2 Cash Profit of Rs. 1,644 crore (up 75% Y-o-Y)

Q2 Net Profit of Rs. 934 crore (up 79% Y-o-Y) and Net Profit crosses 1,600 crores
Market Capitalization
Customer Base 24,337,837 GSM mobile and 1,547,872 broadband & telephone (fixed
line) customers (Status as at month ended July 31, 2006)
Operational Network
Provides GSM mobile services in all the 23-telecom circles in India, and was the first
private operator to have an all India presence.
Provides broadband (DSL) and telephone services (fixed line) in 90 cities in India.
OrganisationStructure
As an outcome of a restructuring exercise conducted within the company; a new
integrated organizational structure has emerged; with realigned roles, responsibilities and
reporting relationships of Bharti’s key team players. With effect from March 01, 2006,
this unified management structure of 'One Airtel' will enable continued improvement in
the delivery of the Group’s strategic vision.
MARKET SHARE OF AIRTEL
Group Company Total Subscribers

Airtel(GSM) 52961289
Reliance (CDMA + GSM) 39069417
Vodafone Essar(GSM) 38562804
BSNL(GSM) 31945006
Tata (CDMA) 21035918
IDEA(GSM) 20222263
Aircel(GSM) 9025593
Spice(GSM) 3661423
MTNL(GSM) 2889726
BPL(GSM) 1220611
HFCL (CDMA) 218947
Shyam (CDMA) 101191
* CDMA figures include WLL services
Buying behavior
IT research firm In-Stat predicts that the global market for wireless handsets
will grow 23 percent to USD 136 billion in 2006, and may exceed USD 250
billion in 2011. In Stat said the wireless market has reached USD 110 billion
in 2005. The firms pointed out that after 2006 the growth rate would be
slower. So depending upon the Market behavior for Handsets the buying
behavior for Service Provider will also be bit slow in the year 2007.
3G is the latest innovation India is goin’ through. Airtel is goin’ to
start its operation soon on 3-G network system where the user will
have the facility of online TV shows etc. on the mobile Phone itself.
In Stat said that the prediction is not preordained. According to the study it
depends upon phone manufacturers continuing to add features that
consumers’ value and the rest of the industry can support. The greatest
challenge is to just add the features different customers want without adding
unneeded cost or complexity from unneeded or unwanted features from the
service provider. The report includes end-user survey results that explore
current customer attitudes as well as how it corresponds to there past buying
behavior.
In Stat said the goal for wireless phone manufacturers and service provider is
to make customers forget they ever tolerated a phone or service without the
new innovations. This has happened as the mobile phone has advanced
dramatically in the past several years.
According to the survey, very few U.S. users, less than 5 percent, do not use
at least one of the technological innovations introduced over this period.
Consumers seem ready to embrace other new features, including location-
based services and Bluetooth connectivity, but only a narrow segment have
interest in multimedia features and camera phones use will see a decline,
predicts In-Stat.
"Big trends over the next five years include adoption of wireless phones as a
mobile wallet that and more users will carry multiple devices," says Bill
Hughes, In-Stat analyst. "The primary changes in phones over the next five
years are that they will become more capable, incorporate beefier security,
and be more targeted as organizations have greater involvement in the
wireless service decisions of their employees. Perhaps more importantly,
they will help us be safer."
The key findings of the research, "The Big Trends for Cell Phones, 2006-
2011” are:
 Worldwide sales of mobile phones will rise from 935 million units in
2006 to more than double that 2011 and with this service providers
will also have a rise.
 Smart Phone sales will surpass 480 million units by 2011and to cash it
on all the service Providers are launching different useful facilities to
cash it on the rising trend of Smart Phone Usage.
 Nokia is by far the most popular phone brand among survey
respondents who obtained their phone through work or for private
uses and Airtel is the most trusted network in which companies like to
operate.
The research covers the worldwide mobile phone market and their service
provider and predicts future developments for wireless phones over the next
five years. The research takes into consideration the entire wireless phone
value chain, which consists of phone manufacturers, supplier ecosystem,
distributors, carriers, and in many cases, the organization to which many
customers belong.
Product promotion strategy and Ad campaign

To understand the product promotion strategy and Ad campaign we have to
look into the vision statement of Airtel
AIRTEL VISION STATEMENT & BRAND POSITIONING

By 2010 Airtel will be the most admired brand in India:
 Loved by more customers
 Targeted by top talent
 Benchmarked by more business
"In a service industry like telecom, people live a brand 24X7. It's all about
experience; and for Airtel 'brand=customer experience," says Rajan Mittal,
joint managing director, Bharti Tele-Ventures Ltd.
That's now, but when mobile telephony began in India a decade ago, the
brand was all about aspiration. That's understandable: a handset cost about
Rs 45,000 - the price of a second-hand Fiat - and call charges hovered
around Rs 16 a minute.
Naturally, the target customer was clearly defined: elite, upmarket

professionals and entrepreneurs. "We positioned Airtel as an aspirational and
lifestyle brand, in a way that trivialised the price in the mind of the
consumer. It was pitched not merely as a mobile service, but as something
that gave him a badge value," recalls Hemant Sachdev, chief marketing
officer (mobility) and director, Bharti Tele-Ventures.
Airtel was on a power trip: the logo was black, uppercase bold lettering; and
the baseline was "the power to keep in touch". "From day one, it was decided
that the brand should always connote leadership - be it in network,
innovations, offerings or services," says Diwan Arun Nanda, CMD,
Rediffusion-DY&R, the agency that has created all Airtel ads over the past
decade. The taglines emphasised that stance: "Airtel celebrates the spirit of
leadership" and "The first choice of the corporate leaders".
This was also a time when customers needed to be educated; interest levels
were high, but customers' exposure to the cellular world was limited. Airtel
took out full and half-page ads in newspapers, answering queries like "what
is roaming?", "what is coverage area?" and "how to make international calls".
In 1999, the rules of the game changed. The New Telecom Policy came into
effect, replacing license fees with a revenue-sharing scheme and extending
the license period from 10 to 20 years. Now, cellular service operators could
drop their prices and target new customer segments. As SEC B became part
of the catchment area, Airtel's communication changed from "power" to
"touch tomorrow".
The focus now was on the endless possibilities of technology to make life
good and advertising became two-pronged: a product-driven communication
that showcased new offerings like the Magic prepaid card, and an emotional
communication that showed younger people.
In 2002, Airtel signed on music composer A R Rahman and changed its tune
to "Live every moment": Rahman's signature tune for Airtel is, perhaps, the
most downloaded ringtone in India. But that was just part of the ongoing
communication.
The following year Airtel adopted the "Express yourself" positioning, which is
also its current tagline. Now, the emotional angle was predominant - and
stark, black and white imagery to stand out in what was becoming a highly
commoditised, crowded market.
The latest campaign continues that thought. Only, mobile telephony is now
extending to even low-income mass categories. So the first TVCs in Hindi and
regional languages are now on air, as are low-priced products, like the Rs
200-recharge coupon.
Communication was just part of the battle: customer service would prove
more critical. "We were very clear that Airtel will be a service-led brand,"
says Mittal.
RELATIONSHIP MANAGEMENT
Accordingly, Airtel was the first cellular service provider to start customer centres (called
Airtel connects), where customers could pay their bills, apply for new connections and
touch and feel new handset models.
The way to the future, though, seems to be through product innovations such as easy
charge (recharging prepaid connection through SMS), hello tunes, the Blackberry option,
stock tickers and M-cheques (mobile credit cards).
The customer care centres, too, are metamorphosing into "relationship centres", one-stop
shops where subscribers can not only pay their bills and have their queries answered, they
can shop for new phones, surf the net and enjoy a cup of coffee. "What matters is what
the customers want," points out Mittal.
Based on there vision statement their product Promotion strategy and Ad Campaign is
based. Airtel is an amazingly successful brand. It has very visible advertising, with a
fairly high share of voice.
As mobile services are an extremely competitive (cutthroat?) category, there are a
number of advertising renditions that happen. One of the most interesting ones for me as
a consumer was the one with A. R. Rahman in Hyde Park, was it, playing with an
assortment of musicians even as an adoring recording artist listens to the music that is
carried through Airtel mobile's service. it was a brilliant track. Airtel had integrated this
piece of communication, making it a fairly popular ring tone. Every second Airtel user
had this ring tone and enthusiastic guys even used it in their cars as they reversed.
 AR Rahman’s SIGNATURE TUNE
 BRAND AMBASSADOR TWO OF INDIA’s BIGGEST CELEBRITIES

SACHIN TENDULKAR & SHAHRUKH KHAN
AIRTEL –EXPRESS YOURSELF

Brands often lose their way when their communication deviates from a tried and tested
property just to be different. This is not a situation that cannot be salvaged, though.
Brands stray when they try to be different for the sake of being different. The desire to be
different is pretty common in advertising. And this desire to be different usually means a
break from the past.
AIRTEL’s Ads are a trend setting Ads and considered a landmark Product promotion,
which they are doing for their Broad Band and telephone services are also a land
mark promotion campaign.
Promotions, whose need is increasingly being felt by the surging services sector, will
click if they realize marketing objectives and reinforce brand values.
Other precautions too need to be taken in the case of promotions. For

instance, too many promotions can be detrimental to the health of a brand. A
brand, which is perpetually on price-off, would not only lose key brand
attributes but also consumer interest. The consumer's reasoning being `if a
product is cheaper now, does it mean I was being overcharged earlier'?
Similarly, if a brand is always doling out freebies, sales would be affected
when there are no freebies on offer.
Marketers agree that no matter the market segment, for any promotion to be
successful it has to be a part of an overall marketing strategy and not a one-
off sales-driving initiative.
COMPERATIVE PRICING OF DIFFERENT MOBILE SERVICE PROVIDERS

THOUGH THE rollout of mobile cellular networks (GSM) in India began only
seven years ago, the industry has already passed through three growth
phases. The initial phase (1995-98), period with the bare minimum network
coverage, catered only to the high-end segment with call charges around
Rs.14 a minute. With the explosion in subscriber volume during 1998-2000
(Phase 2), the rollout spread to metropolitan cities, major highways and
relatively dynamic small cities bringing down call charges to Rs. 9 a minute.
The third phase (2001 and 2005) was a watershed for the Indian mobile
industry; the growth in these two years exceeded all the achievement of the
earlier five years. This pushed the operators to add capacity to their
networks furiously
The low call charges or upfront costs of mobile are only bait to lure
customers and only the QoS can ensure retention capability for a service
provider. An attempt is made here to highlight the current QoS lag of Indian
networks vis-a-vis the international mobile market and the minimum that
companies should do to sustain their subscriber base. There is also a peep
into the billing aspect, which indicates that Indian subscribers are paying
much more than they need to.
The mobile operators have put up the required infrastructure to carry calls on
their networks with capacities determined by the demographic profile of their
respective areas buttressed by market research. However, no guidelines exist
from the regulatory authority (TRAI) for QoS of the networks. Traditionally,
wireless operators have used a number of metrics that collectively provide a
measurement of `network service quality' from the users' perspective. A
combination of the following 4-key performance indicators (KPIs) largely
determines the overall service quality: system coverage; call blockage; voice
quality; and dropped call rate.
Following four is the main area of attention kept in mind by the companies
while providing and deciding pricing
 System coverage
 Call blockage
 Voice quality
 Dropped call rate
Comparison chart between Current Pricing for different cellular service

provider in all the four zones are provided in the link www.india-cellular.com.
COMPETITION AND CHALLENGES AHEAD FOR AIRTEL

The year 2002 was the defining year for the growth of telecom services in
the country. By the end of the year, the country was having eight basic and
12 cellular operators, including state-owned Bharat Sanchar Nigam Ltd.
(BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL), offering services
across the country.The mobile phone market is a rapidly growing and
dynamic one. The strategy for all the companies is to consistently build on
the three pillars of innovative products/services, technology and customer
service and offer relevant value .
With BSNL's launch, are the private players worried All the service providers
are also getting more and more technology savvy to keep a pace with the
changing scenario.
Following is the List of major GSM service provider in the Country.

MAJOR MARKET PLAYERS
The major competitor of AIRTEL is Hutch & BSNL on GSM network.

Telecom are rolling out like never before. And that 100-million mark doesn't
look too far away. The mobile subscriber base crossed 65 million in
September 2005, an over-30 percent increase over the previous year.
AIRTEL
Last quarter, market leader Airtel (22 per cent market share, over 15 million
mobile subscribers, source: Cellular Operators Association of India)
witnessed its highest-ever net addition of 1.8 million mobile customers in a
single quarter. And it's not slowing down; the company's busy rolling out
networks, targeting its presence in over 4,500 towns and locations (from
3,200 in September) in the next three-four months.
HUTCH
Hutch, with over 10 million subscribers (15 per cent market share) may be
No. 4 (behind Reliance and BSNL) at present, but it has the highest average
revenue per user.
With the acquisition of BPL Mobile, its subscriber base is increased to about
13.5 million later this month when the merger is formalized - pushing it up to
the No. 2 slot. Of course, right now, the focus is more on its orange-pink
transformation.
FEW POSITIVE STEPS TAKEN BY BHARTI Group’s AIRTEL TO STAY AHEAD OF
THE CONDITION ARE AS FOLLOWS:
USP’s
According to Sanjay Kapoor, Joint President, Mobility at Bharti the number of
cellular subscribers in India will treble to 300 million in the next three to five
years.
 In the year ended March 2005, Bharti increased its net adds by 67 per
cent, compared with the market’s growth of 55 per cent.
 In the year to March 2006, Bharti’s new subscriber growth was 78
percent, versus 73 per cent in the broader market.
 Instead of funneling huge CAPEX on infrastructure, processes and people,
he tested what he considered a “true utility computing model” by
outsourcing the company’s call center and business IT systems,
 They have plans to outsource content and service delivery systems in the
near term. To carry it out, they partnered with the likes of IBM, Nortel
and Oracle and utilized different payment models from revenue per share
to cost per all, depending on what works for the parties involved.
 AIRTEL has on-demand model, which has effectively supported the
company’s rapid growth curve. Bharti now serves 18 million subscribers
and targets to reach 100 million marks in four to five years’ time.
 The company has also unified its fixed line, ISP, IDD and mobile business
under one brand, Bharti Airtel.
 Now operators could test blended formula that puts into account revenue,
churn rate, customer statistics as part of the equation and decide on
which agreement with work best.
 They have ventured into Broadband for Internet Telephony as well as
landline.
 3G Network is to be started in two months time to make it more user-
friendly and give users more value for their Money by showing Live
streaming on Mobile itself.
AIRTEL IS A PAN INDIA MOBILE SERVISE PROVIDER WITH BEST

INFRASTRUCTURE AND FACILITY AND A WIDE VISION FOR GROWTH.
 Bibliography:
Source 1: www.bharti.com
Source 2: www.bhartiairtel.in
Source 3: www.india-cellular.com
Source 4: www.airtel.in
Source 5: News websites (including Indiainfoline, ndtv, economic times, etc.)
Source 6: Advertisements & Write-ups from Magazines and Articles

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Topic: Bharti Enterprises & Airtel

Situation Analysis & Market Environment

MOBILE TELEPHONY AND ITS CHANGING SCENERIO IN INDIA

GEOGRAPHICAL DISTRBUTION OF SERVICE PROVIDERS

LIST OF SEPARATE ENTITITES OF BHARTI GROUP

Bharti Airtel Ltd

Bharti Airtel Ltd is India's leading provider of telecommunications services. The

Bharti TeleTech Ltd

Telecom Seychelles Ltd

Bharti Telesoft Ltd

TeleTech Services (India) Ltd

FieldFresh Foods Pvt Ltd

BHARTI AIRTEL : A FACT FILE

Name: Bharti Airtel Limited

 Highest ever-net addition of 41.1 lakh customers in a single quarter.

 Q2 Total Revenues of Rs.4,357 crore (up 61% Y-o-Y)

 Q2 EBITDA of Rs. 1,702 crore (up 67% Y-o-Y)

 Q2 Cash Profit of Rs. 1,644 crore (up 75% Y-o-Y)

MARKET SHARE OF AIRTEL

Group Company Total Subscribers

Product promotion strategy and Ad campaign

AIRTEL VISION STATEMENT & BRAND POSITIONING

Naturally, the target customer was clearly defined: elite, upmarket

 BRAND AMBASSADOR TWO OF INDIA’s BIGGEST CELEBRITIES

AIRTEL –EXPRESS YOURSELF

Other precautions too need to be taken in the case of promotions. For

COMPERATIVE PRICING OF DIFFERENT MOBILE SERVICE PROVIDERS

Comparison chart between Current Pricing for different cellular service

COMPETITION AND CHALLENGES AHEAD FOR AIRTEL

Following is the List of major GSM service provider in the Country.

The major competitor of AIRTEL is Hutch & BSNL on GSM network.

AIRTEL IS A PAN INDIA MOBILE SERVISE PROVIDER WITH BEST

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