Table of Content

S. No.

Topic

Chap I

Page NO.

Executive Summar y

Executive Summar y of telecom market

Introduction about the telecom Industr y

Introduction about the company

24

Vision

Mission

Products and services

Factsheet of the Company

25
25
26
26
27

Chap II

Aw ards and Achievements

Organization structure

Air Tel Advantages

30
36

Objective of the project

Sales and Distribution management

42

Product Launch

44

Research Methodology

48

Data Anal ysis

51

SWOT Anal ysis

53

Findings
Recommendation
Conclusion

59
60
61

61

Bibliography

63
1

Annexure

64

PART I

EXECUTIVE SUMMARY
The two month internship project with Bharti AirTel ltd. gave me a platform to
research and analyse all the kind of problems that could be encountered while
handling sales and distribution channel, business growth etc. AirTel also
helped me by providing the two most important skills of sales that are Disaster
Management and Product Launch skills in the field of prepaid mobile services
of one the most prominent and esteemed brand of India.
This study of handling sales and distribution channel and how to launch a new
product was held in 3 stages as follows1.

To identify and manage the bottlenecks and loop holes of the

distribution channel.
2. Launching of a new product ZABARDUS VAS paper voucher.
3. Tracking of response of the launched product in the market and to apply
some strategies to increase the sale.
In the first stage of the study I attempt to deeply understand the structure of
the distribution channel, to identify the key retailers of the market, to identify
the dummy retailers of the market, to identify the areas where there is a
demand and supply gap, to ensure whether the FSEs (Field sales executive)
are doing their job well and with full determination or not and then to take
some actions so that all the identified problems should be corrected.
In the second stage of the study I managed my territory in such a way so that
a new product can be successfully launch here and after few days a new
product ZABARDUS VAS paper voucher has been launched by AirTel in
Nagpur city.
In the third stage of the study, I tracked the response of the product in the
market and identified the areas where the product penetration was low and
then suggested the reporting manager some strategies to overcome the
analysed problems.

Executive Summary of Indian Telecom Market: Lowered call tariffs are a major industry growth driver.
2

 Wireless Subscriber growth will continue around 10m users/year.

India is primarily a low priced handset market (100-150 Euros).
Prepaid will continue to dominate in both GSM and CDMA Segments.
Operators are experiencing low ARPU because of lowered call Tariffs, thus
they are focusing upon content aspect.
Games and content should to be developed keeping local trends and tastes
in mind.
GPRS and MMS are here, but fail to gain subscribers as Compatible
handsets are expensive.
SMS based applications; services are most successful so far.
Internet penetration is low but the industry is growing at a rapid Pace.
Broadband & Wi-Fi are here, but too expensive for general Public.
Dial-in is the most preferred mode for internet access.

INTRODUCTION
Introduction about the Telecommunication Industry
INDIAN TELECOM AND CELLULAR INDUSTRY:The telecom industry is one of the fastest growing industries in India. India
has nearly 200 million telephone lines making it the third largest network in
the world 2cr China and USA. With a growth rate of 45%, Indian telecom
industry has the highest growth rate in the world.
History of Indian Telecommunications started in 1851 when the first
operational land lines were laid by the government near Calcutta (seat of
British power). Telephone services were introduced in India in 1881. In 1883
telephone services were merged with the postal system. Indian Radio
Telegraph Company (WI) was formed in 1923. After independence in 1947, all
the foreign telecommunication companies were nationalized to form the
Posts. Telephone and Telegraph (PTT), a monopoly run by the governments
Ministry of Communications. Telecom sector was considered as a strategic
service and the government considered it best to bring under states control.
The first wind of reforms in telecommunications sector began to flow in 1980s
when the private sector was allowed in telecommunications equipment
manufacturing. in 1 985. Department of Telecommunications (DOT) was
established. It was an exclusive provider of domestic and long distance
service that would be its own regulator (separate from the postal system). In
1986, two wholly government- owned companies were created: the Videsh
Sanchar Nigam Limited (VSNL) for international telecommunications and
Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan
areas.
In l990s, telecommunications sector benefited from the general opening up of
the economy. Also. Examples of telecom revolution in many other countries,
which resulted in better quality of service and lower tariffs, led Indian policy
makers to initiate a change process finally resulting in opening up of telecom
services sector for the private sector. National Telecom Policy (NTP) 1994
was the first attempt to give a comprehensive roadmap for the Indian

telecommunications sector. In 1997. Telecom Regulatory Authority of India

(TRAI) was created. TRAI was formed to act as a

Regulator to facilitate the growth of the telecom sector. New National Telecom
Policy was adopted in 1999 and cellular services were also launched in the
same year.
Telecommunication sector in India can be divided into two segments: Fixed
Service Provider (FSPS), and Cellular Services. Fixed line services consist of
basic services, national or domestic long distance and international long
distance services. The state operators (BSNL and MTNL), account for almost
90 per cent of revenues from basic services. Private sector services are
presently available in selective urban areas, and collectively account for less
than 5 per cent of subscriptions. However, private services focus on the
business/corporate sector, and offer reliable, high-end services, such as
leased lines, ISDN, closed user group and videoconferencing.
Cellular services can be further divided into two categories: Global System for
Mobile Communications (OSM) and Code division Multiple Access (CDMA).
The GSM sector is dominated by Airtel, Vodafone-Hutch, and Idea Cellular,
while the CDMA sector is dominated by Reliance and Tata Indicom. Opening
up of international and domestic long distance telephony services are the
major growth drivers for cellular industry. Cellular operators get substantial
revenue from these services, and compensate them for reduction in tariffs on
airtime, which along with rental was the main source of revenue. The
reduction in tariffs for airtime, national long distance, international long
distance, and handset prices has driven demand.
The telecom sector is also affected by number of restraints. These include
Sluggish pace of reform process.
Lack of infrastructure in semi-rural and rural areas, which makes it difficult to
make inroads into this market segment as service providers have to incur a
huge initial fixed cost.
Limited spectrum availability.
But notwithstanding these constraints, telecom sector has undergone a
revolution in the past decade and has played a major part in bridging the
rural-urban divide.
5

Policies of telecom industry in India:Government of India implemented the unified access licensing regime, which
enables basic and cellular mobile service to use any modern technology. In
1997, Telecom regulatory Authority of India (TRAI) was formed to facilitate the
growth of the telecom sector in India.
Major services and market potentiality of Telecom industry in India
Telecommunication sector in India is primarily subdivided into two segments,
which are Fixed Service Provider (FSPs) and Cellular Services. Telecom
industry in India constitutes some essential telecom services like telephone,
radio, television and Internet. Telecom industry in India is specifically
emphasizing on latest technologies like GSM (Global System for Mobile
Communications), CDMA (Code Division Multiple Access), PMRTS (Public
Mobile Radio Trunking Services), Fixed Line and
WLL(Wireless Local Loop ). India has a prospering market specifically in GSM
mobile service and the number of subscribers is growing very fast.

Economic perspective of telecom industry in India:Telecom industry in India has a major role in Indian economy. The Indian
government is also enforcing some effective telecom policies and regulations
for the infrastructural growth of this industry. Indian telecom market provides a
tele-density of 8.5 percent as registered in the year 2009. A number of leading
multinational telecommunication companies are approaching and showing
their interest to invest for the telecom industry in India. Telecommunication
industry of India ranked sixth among all the Telecommunication Sectors in the
World. In the year 2009, the total number of telephone subscriptions was
US$93.2.
The Indian telecommunications industry is one of the fastest growing in the
world. According to the Telecom Regulatory Authority of India (TRAT), the
number of telecom subscribers in the country reached 621 .28 million as on
March 31, 2010, an increase of 3.38 per cent from 600.9$ million in February
2010. With this the overall telephone density (telephones per 100 people) has
6

touched 52.74. The wireless subscriber base has increased to 584.32 million
at the end of March 2010 from 564.02 million in February 2010, registering a
growth of 3.6 per cent.

Value - Added Services (VAS) Market:Mobile value added services include text or SMS, menu-based services,
downloading of music or ring tones, mobile TV, videos and sophisticated mcommerce placations. According to the Economic Survey 2009-b, prior to
2008 a majority of VAS revenue was attributed to SMS. But with greater
penetration of new services. Availability of relatively inexpensive, feature-rich
handsets and consumer education value-added services other than SMS are
gaining importance. It is expected that over the next few years non-SMS
services will become a dominant contributor to VAS revenue.

Major Investments:The booming domestic telecom market has been attracting huge amounts of
investment which is likely to accelerate with the entry of new players and
launch of new services. According to the Department of Industrial Policy and
Promotion t DIPP), the telecommunications sector which includes radio
paging, mobile services and basic telephone services attracted foreign direct
investment (FDI) worth US$ 2,495 million during April to February 2010. The
cumulative flow of FDI in the sector during April 2000 and February 2010 is
USS 8,872 million.
Norway-based telecom operator Telenor has bought a further 7 per cent in
Unitech Wireless for a little over US$ 431.3 million. Telenor now has 67.25 per
cent hold of the company. Telenor has now completed its four-stage stake buy
and has invested a total of US$ 1.32 billion in Unitech Wireless as agreed on
with the latter last year.
The government has approved the foreign direct investment (FDI) proposal
of the Federal Agency for State Property Management of the Russian
Federation to buy 20 per cent stake in telecom service provider SistemaShyam for USS 660.1 million.

Cellular Industry in India:The Government of India recognizes that the provision of a world-class
telecommunications infrastructure and information is the key to rapid
7

economic and social development of the country. It is critical not only for the
development of the Information Technology industry, but also has widespread
ramifications on the entire economy of the country. It is also anticipated that
going forward, a major part of the GDP of the country would be contributed by
this sector. Accordingly, it is of vital
Importance to the country that there be a comprehensive and forward looking
telecommunications policy which creates an enabling framework for
development of this industry.

New Telecom Policy 1999:Telecommunications is now universally recognized as one of the prime
movers of the modem economy; hence its vital importance for a developing
country like India. The availability of adequate infrastructure facilities is critical
for acceleration of the economic development of any country. In fact
international studies have established that for every 1% increase in teledensity, there is a 3% increase in the growth of GDP.
Accordingly, the Government of India has accorded the highest priority to
investment and development of the telecommunications sector. Telecom
requires very heavy investment and it was not possible for the Indian
Government to organize public funding of this sector on such a massive scale.
In fact the national telecom Policy 1994, estimated a resource gap of
Rs.23,000 crores to meet the telecom targets of the eighth five-year plan of
the Government of India (1992-97).
It was for this reason to bridge the resource gap between government funding
and the total projected funds requirement and to provide the additional
resources to achieve the nations telecom targets that the telecommunications
sector was liberalized in 1992 and the Government invited private sector
participation in telecommunications. Cellular mobile services were one of the
first areas to be opened up to private competition. The whole country was
divided into the 4 metropolitan cities of and 19 telecom circles, which were
roughly analogous with the States of India.
Cellular Licenses were awarded to the private sector - first in the metropolitan
cities of Delhi, Mumbai, Kolkata and Chennai in 1994 and then in the 19telecom circles in 1995. The first metro cellular network started operating in
August 1995 in Calcutta. When cellular mobile services were first introduced
in 1994 it was as a duopoly (that is a maximum of two cellular mobile

operators could be licensed in each telecom circle), under a fixed license fee
regime and for a license period of 10 years.
The initial response of the private sector was very encouraging. The
attractiveness of the Indian market - the low tele density, the high latent
demand and a burgeoning middle class - brought in some of the largest global
telecom players, foreign institutional investors and the major Indian industrial
houses to invest in telecom, especially the Indian cellular industry.
Telecom proved to be a powerful attractor of foreign investment. The
cumulative FDI inflow into telecom since 1993 has exceeded Rs.43,000
Million. Within telecom, the cellular industry has attracted most of the foreign
investment since 1993, accounting for almost 50% of the FDI inflow into
telecom - representing amongst the biggest investments in any one sector in
India.
Annual foreign investment in telecom increased steadily from an insignificant
Rs.20.6 Million in 1993 to Rs.17,756.4 Million in 1998. However, the
attractiveness of the Indian market did not last for very long, as by 1997-98,
the private cellular operators were confronted with a series of problems that
threatened their very viability and survival.
As a result of this, FDI inflow into telecom dropped sharply, declining by
almost 90% to Rs.2126.7 Million in 1999. This dropped further in Year 2000
as until June 2000, only Rs.918 Million had flown into the country.
One of the key factors responsible for the critical state of the telecom sector &
consequently also the cellular industry was that liberalization/deregulation was
undertaken in an inverted manner vis-a-vis international practices and
generally accepted norms. Usually, deregulation is preceded by tariff
rebalancing, institution of a strong and independent regulator and only then is
private sector participation invited.
In India, private sector participation was invited in 1992, the Regulatory
Authority was set up in 1997 and the tariff rebalancing exercise commenced
in 1999 and is still far from complete. Further, even when the regulatory
authority was set up, there was considerable ambiguity on its powers, which
resulted in virtually each and every order of the Authority being challenged by
the Licensor/incumbent. The ambiguities in the jurisdiction of TRAI resulted in
a limbo in the industry. Another important factor was the basic approach of the
Government towards liberalization. Consumer benefit was given the go-by

and the telecom sector was viewed as a revenue generator/cash cow for the
Government exchequer.
NTP 94 was basically a good policy. It clearly identified that the primary
objective of the policy was to make available affordable telecom services.
However, in actual policy implementation, this key/fundamental objective was
disregarded. Licenses were granted through an auction process and the
enthusiastic private sector deluded by the seemingly huge potential of the
Indian market were lured into bidding exorbitant sums of money for cellular
licenses.
The huge license fees paid by the private operators resulted in a high cost
structure leading to un-affordable tariffs and lower growth of the market. By
end- 1998, the cellular industry was on the verge of bankruptcy and at that
time it appeared that the liberalization dream was over & the nightmare had
begun.
It was under the above circumstances that the Government undertook a
review of telecom policy & the role of the regulatory authority. The result was
NTP 99, which was announced in March 1999 & the amendment of the TRAI
Act in January 2000.
NTP 99 is an extremely forward-looking policy. It significantly changed the
dynamics of the Indian telecom industry as it not only replaced the high cost
fixed licensing regime with a lower cost licensing structure through revenue
sharing, but also provides for greater degree of competition and more
flexibility in choice of technologies.
The amendments in the TRAI Act resulted in a considerable strengthening of
the Regulator & greater clarity on its role and powers. It also put in place a
separate dispute settlement mechanism in the form of the Telecom Dispute
Settlement and Appellate Tribunal to expeditiously deal with and resolve
issues relating to the telecom sector.
Existing private cellular operators migrated to the new telecom policy regime
with effect from August 1999. There can be no doubt that migration to a more
beneficial regime translated into tangible consumer benefits - lower tariffs,
greater subscriber uptake & increased coverage.
Cellular tariffs have dropped by over 90% since May 1999 - a feat
unparalleled by any other sector or industry in India. The average airtime tariff

10

in Year 2001 was prevailing around Rs.2 per minute as against the peak
ceiling tariff of Rs.16.80 per minute when NTP 99 was announced.

Parellely, there has also been a significant drop in the cost of mobile
handsets. Cellular handsets that were available for around Rs.25-30,000 in
the initial days of cellular have now dropped significantly, with a base level
handsets being available for as little as Rs.2,000 upwards. This has come
about as a result of increased volumes and some degree of rationalization of
government levies.
As a result of improved affordability, there an increased take-up of the service
and the cellular operators were able to venture into more and more cities &
towns of the country. In fact cellular services are now available in almost 1400
cities & towns of India.
With the lower tariffs and increased coverage, there was also a resultant
increase in the number of cellular subscribers. The point of inflexion for
subscriber take-off is clearly post NTP-99. From 1.2 million subscriber in April
1999, to almost 2 million by April 2000, the number of cellular subscriber have
now grown to almost 6.5 million by the end of March 2002.
By March 2001, the industry had invested nearly Rs.16,000 crores in cellular
infrastructure and it is estimated that these investments will grow to Rs.20,000
crores in the next 4-5 years.
The year 2001 also saw the entry of BSNL and MTNL as the third cellular
operators as had been mandated in NTP 99. Further, in July 2001, cellular
licenses were awarded to the 4th cellular operators in different telecom
circles. With this the number of cellular operators has gone up to 89 licenses.
As of March 2002, the Indian cellular mobile industry had 42 networks on air,
serving over 1400 towns and cities and covering thousands of villages and
serving almost 6.5 million subscribers across the country.
The quality of the service is widely accepted to be of international standards
and till date there has been no waiting period involved in availing of this
service.
The cellular industry has been growing at an average rate of 85% per annum
and it is hoped that the industry will be able to sustain this growth in the
coming years. The Working Group on the Telecom Sector set up by the
11

Government of India for the tenth five-year plan, has estimated that over the
next five years, around 31.55 million cellular subscribers would be added all
over India. To achieve this growth, the Working Group has also estimated that
resources to the tune of about Rs.25,240 crores will be required over the next
five years.
However, to attract foreign investments into India, it is imperative to ensure
the predictability and stability of the policy and regulatory regime of the
Country. Policy flip-flops & regulatory ambiguity have plagued the Indian
telecom sector since the introduction of privatization. This has had the
unhappy result of putting the entire sector into a state of limbo as investors both foreign & domestic await clarity on the final direction that the policy will
take. In the meantime, foreign investors, who have not committed themselves
to the Indian market, will divert their interest & investments to competing and
more attractive FDI destinations.
Further, for the industry to attract the requisite investments and to reach the
growth targets set for the tenth five-year plan, it is imperative that a few crucial
industry issues that have been plaguing the industry be resolved on an urgent
footing. This includes most importantly:
The early resolution of the dispute relating to the recent permission
Granted to fixed operators to offer WLL based mobile services without a
mobile license and under the more advantageous terms of their fixed service
license and
The institution of a formal interconnection agreement between the cellular
operators and the fixed service providers especially the incumbent fixed
service operators - BSNL and MTNL.

Going Global:In March 2010, Bharti Airtel bought the African operations of Kuwait-based
Zain Telecom for US$ 10.7 billion, driving the Indian player into the league of
top ten telecom players globally.
The Reserve Bank has liberalized the investment norms for Indian telecom
Companies by allowing them to invest in international submarine cable
consortia through the automatic route. In April 2010, P131 issued a
notification stating As a assure of further liberalization, it has now been
decided... to allow Indian companies participate in a consortium with other
international operators to construct and zaintain submarine cable systems on
12

co-ownership basis under the automatic route. The notification further added,
Accordingly, banks may allow remittances by Indian companies for overseas
direct investment.

3G Services:The Department of Telecom has taken the pioneering decision of launching of

30 services by BSNL and MTNL and initiation of process for auction of
spectrum for 30 services to private operators. Al location of spectrum for thirdgeneration (30) and broadband wireless access (BWA) services was done
through a controlled simultaneous, ascending c-auction process.
All the 71 blocks that were put up for auction across the 22 service areas in
the country were sold, leaving no unsold lots. Auction for 30 spectrum ended
on May 19, 2010 after 183 rounds of intense bidding over a span of 34 days.
The Government is expected to morph revenue worth USS 14.6 billion. All the
available slots across 22 circles have been sold to seven different operators.
A pan-India hid for third generation spectrum stood at US$ 3,6 billion. The Anil
Ambani-led Reliance Communication bagged the highest number of 13 circles
at a cost of USS 1.9 billion, followed by Bharti Airtel in 12, Idea in 11 and
Vodafone and the Tata in nine circles each, according to the Department of
Telecommunications. MTNL and BSN L will have to pay USS 1.42 billion and
US$ 2.2 billion respectively.

Rural Telephony:According to the Economic Survey 2009-10, rural tele-density has increased
from 1.2 per cent in March 2002 to 15.1 per cent in March 2009 and further to
21.2 per cent at the end of December 2009.Rural telephone connections have
gone up from 12.3 million in March 2009 to 123.5 million in March 2009 and
further to 174.6 million in December 2009. The share of private sector players
in the total telephone connections has steadily increased from around 14 per
cent in 2005 to 31 per cent as on December 31, 2009. During 2008-09, the
growth rate of rural telephones was 61.5 per cent as against 36.7 per cent for
urban telephones. The private sector has contributed significantly to the
growth of rural telephony by providing 81.5, per cent of the rural phones as on
December 31, 2009. It is proposed to achieve rural tele-density of 25 per cent
by means of 200 million rural connections by the end of the Eleventh Five
Year Plan.

Policy Initiatives:13

The government has taken many proactive initiatives to facilitate the rapid
growth of the Indian telecom Industry.
In the area of telecom equipment manufacturing and provision of IT-enabled
services, 100 per cent PDI is permitted.
No cap on the number of access providers in any service area. In 2008, 122
new Unified Access Service CUAS) licenses were granted to 17 companies in
22 services areas of the country.
Revised subscriber based criteria for allocation of Global System of Mobile
Communication (GSM) and Code Division Multiple Access (CDMA) spectra
were issued in January 2008.
To provide infrastructure support for mobile services a scheme has been
launched to provide support for setting up and managing 7,436 infrastructure
sites spread over 500 districts in 27 states. As on December 31, 2009, about
6,956 towers had been set up under the scheme.
According to the Consolidation Foreign Direct investment (F 1)1) Policy
document, the FDI limit in telecom services is 74 per cent subject to the
following conditions:
This is applicable in case of Basic, Cellular, Unified Access Services,
National! international Long Distance, V-Sat, Public Mobile Radio Trunked
Services (.PMRTS), Global Mobile Personal Communications Services
(GMPCS) and other value added Services.
Both direct and indirect foreign investment in the licensee company shall be
counted IBR the purpose of FDI ceiling. Foreign investment shall include
investment by Foreign Institutional Investors (FITs), N on-resident Indians
NRIs), Foreign Currency Convertible Bonds (FCCBs), American Depository
Receipts (ADRs), Global Depository Receipts (GDRs) and convertible
preference shares held by foreign entity. In any case, the Indian shareholding
will not be less than 26 per cent.
FDI up to 49 per cent is on the automatic route and beyond that on the
government route. FD1 in the licensee company/Indian promoters/investment
companies including their holding companies shall require approval of the
Foreign Investment Promotion Board (FIPB) if it has a bearing on the overall
ceiling of 74 per cent. While approving the investment proposals, FIPB shall
take note that investment is not coming from countries of concern and/or
unfriendly entities.
14

 The investment approval by FIPB shall envisage the conditionality that the
Company would adhere to license Agreement.
FDI shall be subject to laws of India and not the laws of the foreign
country/countries.

Contributions of the Cellular Industry to the Indian Economy:1. World Class Infrastructure
The Indian cellular industry has been instrumental in bringing to the Indian
consumer, a world-class telecom infrastructure.
The Indian Cellular Industry is
The flag-bearer of the Indian liberalization process.
The largest recipient of Foreign Direct Investment (around Rs.2200 Crores)A responsible performing sector that has met all its obligations to the GOT.
The Industry would have invested over Rs.25,000 crores to
Set up 69 Networks
Serve over one crore subscribers as of December 2002
Offer Services in over 1575 cities & towns and
Cover over 14,000 villages
2. Reputed Indian Business Houses & International Telecom Majors
The privatization of Indian cellular brought into the arena some of the most
reputed business houses of the country as also biggest names in the
international telecommunications industry. These included:
Reputed Indian Business Houses - Birla, BPL, Escorts, Essar, Reliance, RPG,
Tata, and Thapar.
International Telecom Majors - Singtel, Asia Tech, AT&T, Bell South, Nynex,
Millicom, First Pacific, Hutchison Whampoa, Telecom Italia, New York Life,
Telecom Investments, Tele system International Wireless, Cell Net and others.
3. Increased Connectivity

15

There are presently 42 networks operating in the country covering over 1350
cities and towns and directly servicing over 6.7 million subscribers nationwide. Importantly, the connectivity benefits also extend to over 33.5 Mn PSTN
subscribers of BSNL & MTNL who can now reach the cellular subscribers
anytime and anywhere. In addition the cellular radio waves cover over
28,000 villages, where connectivity can be provided at a very short notice at a
nominal incremental cost.
4. Employment Generation
As the 3rd and 4th Cellular Licensees would start their operations and with 77
networks (42 presently and 35 new networks) on air, the employment
generated by the industry would be promising. In addition to the direct
employment generated by these networks, there is also the multiplier effect of
indirect employment generated down the supply chain comprising vendors,
infrastructure suppliers, contractors, dealers, etc. It is estimated that the total
employment generated by the cellular industry would be in the tune of a few
lakhs once the new networks are rolled in.
5. Increased FDl Flows
The Telecom sector is the largest attractor of Foreign Direct Investment in the
country, accounting for almost a fifth of FDI approvals since 1991.
6. Heavy Investment in Infrastructure
The cellular industry is responsible for the single largest chunk of investment
by any individual industry. The industry has already invested over Rs.20,000
crores and is expected to invest even more in the years to come.
7. Revenue Generation for the Government of India
The cumulative revenues that have flowed to the Government are already
about Rs.10,000 crores from license fee and service-tax alone.
COAI (Cellular Operators Association of India)
COAI (Cellular Operators Association of India) was set up in 1995 as a
registered non- governmental, and non-profit society. The Cellular Operators
Association of India was established with the aim that it would be dedicated to
the advancement of modern communication.

16

COAI encourages the advancement of communication through Services of

Mobile Cellular Telephone. The vision of COAI (Cellular Operators Association
of India) is to set up and sustain cellular infrastructure that is of world class
standard and also to encourage mobile communication services that is
affordable in the country. Cellular Operators Association of India is the official
voice for the cellular industry in India and it interacts on its behalf with the
licensor, the telecom industry associations, the management spectrum
agency, and the policy makers. The chairman of COAT (Cellular Operators
Association of India) is Mr. Sanjeev Aga and the vice- chairman is Mr. Naresh
Gupta. COAI (Cellular Operators Association of India) has many committees
under it such as the Executive Council Committee, Business Development
Committee, Finance and Commercial committee, Regulatory Council
Committee, and Technology Committee.
The various objectives of COAI (Cellular Operators Association of India) are
that it would study the best research and practices of the cellular industry in
India and at the same time analyze the worldwide cellular experience. Further
the various objectives of COAI are to encourage mobile telephony services at
affordable rates for the Indians, to improve the competitiveness and standards
in the Indian cellular industry, and also reach the status of top class
infrastructure. Also the various objectives of Cellular Operators Association of
India are to improve the quality and standards of services by consulting GSM
India that is the Indian chapter of the Association GSM and to help the
authorities that are relevant by giving them information with regard to the
cellular industry in order to help them form suitable polices which would help
in the growth of the industry.
COAI (Cellular Operators Association of India) objectives includes to upgrade
and maintain services such as security, speech transmission, coverage, and
access in order to help in the expansion of the cellular services in the country
and to make continuous efforts to satisfy the customers. Further the various
objectives of COAI are to address the problems of the cellular operators that
relate to financial, operational, licensing, or regulatory by interacting with the
Ministry of Finance, Department of telecommunications, Financial Institutions,
Ministry of Communications & IT, Ministry of Commerce, and Telecom
Regulatory Authority of India. Also the objectives of Cellular Operators
Association of India are to make efforts to achieve the countrys objectives of
better rural access and increased teledensity and also to spread information
and dispense awareness among consumers and operators on issues relating
to the various kinds of services provided by the service operators to their
customers.
17

Future of Mobile Industry in India:The mobile subscriber base is expected to zoom to 893 million by 2012. This
is a 150 million increase of what was projected earlier, as per a report by
Cellular Operators Association of India (COAI). The COAIs earlier estimates
had shown that mobile user base will reach 743 million by 2012. The major
reason stated for the increase is the huge adoption of the mobile services in
the rural areas, reported The Business Line.
India is now the second largest mobile market in the world after China, which
has over 650 million subscribers, with India having 400 million mobile users.
According to COAIs projection, there will be 1.24 billion mobile users in 2015which means one phone for every Indian.

CHANGING FACE OF INDIAN MOBILE CONSUMER

18

Introduction of the organization

Aim and Establishment of the company:
Bharti Airtel Ltd. is one of India's leading private sector providers of
telecommunications services based on an aggregate of 220 million customers
as on March 31,2011, consisting of 167,713,000 GSM mobile, 3,296,000
telemedia and 5,663,000 DTH customers.
Incorporated on July 7, 1995, Bharti Tele-Ventures Ltd is a division of Bharti
Enterprises.
Bharti Enterprises has been at the forefront of technology and has
revolutionized telecommunications with its world class products and services.
Established in 1976, Bharti has been a pioneering force in the telecom sector
with many firsts and innovations to its credit.
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest
private integrated telecom conglomerate, Bharti Enterprises in 2003. Bharti
Tele-Venures has been branded as Airtel in 2003. In it's eight years of pursuit
of greater customer satisfaction, Airtel has redefined the business through
marketing innovations, continuous technological up gradation of the network,
introduction of new generation value added services and the highest standard
of customer care.
Bharti Airtel Limited is a leading global telecommunications company with
operations in 19 countries across Asia and Africa. The businesses of Bharti
Airtel are structured into four main strategic groups Mobility, tele media
services, enterprise service and digital TV. The Mobility business provides
GSM mobile services in all 22 telecommunications circles in India, Srilanka,
Bangladesh and now in 16 countries of Africa, while the telemedia service
offers high-speed broadband internet with the best in class network. With
Landline services in 87 cities. The company offers mobile voice & data
services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom
solutions for enterprises and national & international long distance services to
carriers. Bharti airtel has been ranked among the six best performing
technology companies in the world by Business Week.
The company complements its mobile, broadband, and telephone services
with national and international long-distance services. The company also has
a submarine cable landing station at Chennai, which connects the submarine
cable connecting Chennai and Singapore. Bharti Airtel provides end-to-end
data and enterprise services to corporate customers by leveraging its
nationwide fibre optic backbone, last mile connectivity in fixed-line and mobile
circles, VSATs, ISP and international bandwidth access through the gateways
and landing station.
19

About the Founder:Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (who owns
Airtel), is today, the most celebrated face of the telecom sector in India. He
symbolises the adage that success comes to those who dream big and then
work assiduously to deliver it. Sunil Bharti Mittal began his journey
manufacturing spare parts for bicycles in the late 1970s. His strong
entrepreneurial instincts gave him a unique flair for sensing new business
opportunities. In the early years, Bharti established itself as a supplier of basic
telecom equipment. His true calling came in the mid 1990s when the
government opened up the sector and allowed private players to provide
telecom services. Bharti Enterprises accepted every opportunity provided by
this new policy to evolve into India's largest telecommunications company and
one of India's most respected brands. Airtel was launched in 1995 in Delhi. In
the ensuing years, as the Airtel network expanded to several parts of India,
the brand came to symbolise the very essence of mobile services.

VISION:By 2015 airtel will be the most loved brand, enriching the lives of millions.
Enriching lives means putting the customer at the heart of everything we do.
We will meet their needs based on our deep understanding of their ambitions,
wherever they are. By having this focus we will enrich our own lives and those
of our other key stakeholders. Only then will we be thought of as exciting,
innovation, on their side and a truly world class company."

MISSION:To be globally admired for telecom services that delight customers.

It will be achieved though:

Customer Service Focus

Empowered Employees
Innovative Services
Cost Efficiency
PRODUCT AND SERVICES:

1. GSM mobile and DSL landline connections.

2. DTH (Direct to Home) services.
20

3. Wireless and Broadband Internet connections.

4. Enterprise solutions.
FACTSHEET OF THE COMPANY

21

Type

Public Limited company

Founded

In 1995 as Bharti Tele-Ventures

Founder(s)

Sunil Bharti Mittal

Headquarters

New Delhi, India

Key people

Sunil Bharti Mittal (Chairman)

Industry

Telecommunications

Products

Wireless
Telephone
Internet
Satellite Television

Revenue

Rs 162,654 million(ended march, 2011Audited)

Net income

Rs 54,496 million(ended march, 2011, Audited)

Customer Base

India & South Asia: 167,713,000 GSM mobile,

3,296,000 Telemedia customers and 5,663,000 Digital
TV Services. (status as on March 31, 2011)
Africa: 44,206,000 GSM mobile customers.
(status as on March 31, 2011)

Owner(s)

Bharti Enterprises

Website

www.airtel.in

ACHIEVEMENTS and AWARDS:

First to launch Cellular service on November 1995.

First to introduce push button phone in India.

First to expand its network with the installation for second mobile
switching centre in April, 1997, first to introduce the Intelligent Network
Platform and also first to provide Roaming to its subscribers by forming
an association called World 1 Network.
22

BHARTI announces agreement with VODAFONE marking the entry of

the World's Largest Telecom Operator into India.

It is also the first company to export its products to the USA.

Has completed 100% verification of its subscribers and in the process

disconnected three lakh (300,000) subscribers

Most Preferred Cellular Service Provider Brand award at the CNBC

Awaaz Consumer Awards in Mumbai.

Bharti airtel has received the prestigious Business world-FICCI-SEDF

Corporate Social Responsibility Award 2009-2010.

Sunil Bharti Mittal, the CMD of Airtel, has been conferred one of the
highest civilian award Padma Bhushan.

Bharti Tele-Ventures is the Best Indian Career at the Telecom Asia

Awards 2006.

Bharti Airtel Among the top 10 best performing companies in the world
according to BUSINESSWEEK IT 100 list..

Sunil Bharti Mittal is the CEO OF THE YEAR at the FROST AND
SULLIVAN ASIA PACIFIC AWARDS 2006 and Bharti Airtel Bags
Wireless Service Provider of the Year award.

INNOVATIONS :

23

SERVICE BENCHMARKS

MARKET PENETRATION

24

Market Share of AirTel

Organization Structure

25

DEPARTMENTS OF THE COMPANY

ENTERPRISE SERVICES DEPARTMENT:
Enterprise Services provides a broad portfolio of services to large Enterprise
and Carrier customers. This division comprises of the Carrier and Corporate
business unit. Enterprise Services is regarded as the trusted communications
partner to India's leading organizations, helping them to meet the challenges
of growth. This Department is headed by Mr. Drew Klenton. Airtel Enterprise
Services provides you connectivity where ever you take your business There
Satellite Services bring you the benefits of access in remote locations. Airtel
Enterprise Services is a leading provider of broadband IP satellite services
and DAMA/PAMA services in India. Our solutions support audio, video and
voice applications on demand.

DTH SERVICES DEPARTMENT:

This department takes care of all kinds of products and services related to
Direct to Home service. Airtel DTH Services claims that Discover the magical
experience of digital entertainment with airtel. From HD & DVD quality picture
and sound, the best and widest variety of channels and programmes to the
best on-demand content on airtel Live, your TV viewing experience change
forever with digital TV from airtel.
26

MOBILE SERVICES DEPARTMENT:

The main function of this department is to ensure the proper and flawless
service should be delivered to the customer. This department claims that
Airtels mobile footprint extends across the country in 22 telecom circles. Its
service standards compare with the very best in the world. In fact, thats how
Bharti has managed to win the trust of millions of customers and makes it one
of the top 5 operators in the world, in terms of service and subscriber base.
The company has several Firsts to its credit:

The First to launch full roaming service on pre-paid in the country.

The First to launch 32K SIM cards.
The First in Asia to deploy the multi band feature in a wireless network
for
Efficient usage of spectrum.
The First to deploy Voice Quality Enhancers to improve voice quality
and
Acoustics.
The First telecom company in the world to receive the ISO 9001:2000
Certification from British Standards Institute.

TELEMEDIA SERVICES DEPARTMENT:

This Department has the main function to provide Internet Services to the
customer. Its main function is to stretch their DSL cable to almost all the 22
circles of India and also to increase the range of its wireless Internet
connectivity. This department claims that We offers high-speed broadband
internet with the best in class network. With Landline services in 94 cities, we
27

help you stay in touch with your friends & family and keep you updated round
the clock.

AirTel: Appropriating the value of 'expression'

Over the last couple of years, the market has grown considerably, with deeper
penetration and wider usage of voice and data services, accompanied by
much higher competitive intensity," Atul Bindal, head mobile services, Bharti
AirTel, expands on this. "In this context, differentiating merely on network,
coverage and SMS is just not enough. You need to go beyond all the rational
identifiers - which are prerequisites in any case - and connect at a deeper
level. We needed a strong differentiator in an increasingly commoditized and
crowded market. We found this differentiator in a core human truth that
defines our category - which is that there are moments when you need to
make your point, when you need to be heard. Expressing and communicating
are perhaps two of the most basic emotions. AirTel enables you to make your
point in the most expressive way, anytime, anywhere. The campaign is
towards owning this through 'Express yourself.' We believe 'Express yourself'
allows us to connect at a deeper level and create a long-term platform for the
brand."
For AirTel, the challenge also lay in presenting a unified 'face' to the
consumer. This assumes significance when viewed in the light of the
company's pre- and post-paid communication, which, in the past, had been
treated very differently. Brand image, as a result, was being driven in two
different dimensions. "Brand AirTel is a category leader straddling completely
different market segments such as consumer, business and corporate, as well
as different voice, data and payment platforms," says Bindal. "'Express
yourself' enables the brand to unify and connect across the entire base of our
existing and prospective customers."
One of the most obvious benefits of owning a property such as 'candid
expression' (and 'Express yourself') is the expansive nature of the thought.
"The moment you have as broad a canvas as 'Express yourself', it becomes
easy for anyone working on the brand to come up with new ideas and
executions. That's what makes a good campaign idea," observes Rediff's
Prashant Godbole, who, along with creative partner Zarvan Patel, conceived
the campaign. This is just the proverbial tip of the iceberg, Patel adds. "We
will be taking the idea forward in many different ways in the forthcoming
work," he informs. Patel also credits his creative team for "fleshing out the
idea".
In October 2002, Magic led the market, with 30% of the market share. Bharti
claimed that its strategies were one of the most ambitious experiments ever in
the Indian pre-paid cellular telephony market. However, given the increasing
competitive pressure, doubts were being expressed regarding the ability of
Bharti's marketing initiatives to help Magic retain its 'Magic' in the future.

PROMOTIONAL STRATEGY
28

After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular
market witnessed a surge in cellular services. By 2005, there were a total of
12 players in the market with the five major players being Bharti AirTel, Bharat
Sanchar Nigam Limited (BSNL), Vodafone (Voda), Idea Cellular limited (Idea)
and Reliance India Mobile (RIM), Aircel, Uninor etc.
All the players except RIM offered services based on the Global System for
Mobile (GSM) technology. RIM provided services based on Code Division
Multiple Access (CDMA) technology as well as GSM.
As competition in the telecom arena intensified, service providers took new
initiatives to woo customers. Prominent among these were - celebrity
endorsements, loyalty rewards, discount coupons, business solutions and talk
time schemes. The most important consumer segments in the cellular industry
were the youth segment and the business class segment. The youth segment
was the largest and fastest growing segment and was therefore targeted most
heavily by cellular service providers.
Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional
strategy. By 2004 it emerged the unprecedented leader commanding the
largest market share in the cellular service market. Hutch implemented the
celebrity endorsement strategy partially, relying primarily on its creative
advertising for the promotion of its brand. BSNL, on the other hand, attracted
the consumer through its low cost schemes. Being a state owned player,
BSNL could cover rural areas, and this helped it increase its subscriber base.
Reliance was another player that cashed on its innovative promotional
strategies, which included celebrity endorsements and attractive talk time
schemes. Idea, relied heavily on its creative media advertising sans
celebrities.

BRAND ENDORESMENT STRATEGY

Cellular service provider AirTel seems to have hit the right note with its new
commercial starring musician A R Rahman. The commercial which is currently
on air has a beat which also doubles up as a ringtone which is ostensibly
available only to AirTel users. But the interesting part is that the ringtone is
being flaunted not just by AirTel customers but by customers of rival service
providers like BPL, Orange and Dolphin as well!
We did expect the tune to catch up but this has really exceeded our
expectations, admits Bharti Cellulars chief marketing officer (western region)
Pratik Pota. Overall, he explains, it is a great advertising product for AirTel and
works like a walking, talking brand ambassador.
The ringtone which is also the jingle for AirTels TV commercial, is proving to
be a potent advertising tool for the company. It is not very clear what this
means for the other cellular operators. Cellular users have been forwarding
29

the tune to one another, which according to Mr Pota, has given AirTel a
chance to enter the mind of the user irrespective of which service he opts
for.
It gives the user a chance to go back to the AirTel product and acts as a
strong reminder medium, he explains. Marketing professionals like Samsika
Marketing Consultants managing director Jagdeep Kapoor point to the usage
of an audio celebrity as something that is significant.
The normal practice is to opt for film stars and sportsmen rather than an
audio personality he says.
Rivals, though seemingly unfazed by the phenomenon, seem to be doing their
own homework on this brand of advertising. While none of them commented
on AirTels strategy and its impact on their own subscriber base, one
advertising professional working with a rival service provider opines that the
tune is transient and not likely to have any long term impact as a brand
building tool.
Being the latest entrant in the Mumbai circle, AirTel has had to find ways of
cutting through the clutter.
Says Mr Kapoor, AirTel will have try to find ways to attract new customers
and convert the existing ones. Explaining that the usage of an audio celebrity
was more strategic than tactical, he adds that non-AirTel users will have the
AirTel brand experience inspite of not using the service.
While Mr Pota highlights the fact that the usage of the tune by other operators
means free advertising for AirTel and the users having a positive
disposition towards the product, the nature of reaction from competition
remains unclear.
Competition will not do well to adopt a knee jerk reaction and will have to
come out with advertising that is well thought out explains Mr Kapoor. He
anticipates a situation where the new entrant (AirTel) will continue to be more
aggressive.

30

TENDULKAR & SHAHRUKH

Both Tendulkar and King Khan already share the frame for soft drinks major
PepsiCo India. Tendulkar is not the first cricketer to endorse Bhartis Airtel
brand. Indian captain Saurav Ganguly had done so when Airtel launched its
service in the eastern metropolis of Kolkata in 2001.
Though company executives were mum on the value of the Tendulkar deal,
those in the advertising fraternity peg the signing rate for the three-year deal
anywhere between Rs 8 crore and Rs 10 crore.
Both Sachin and Shah Rukh are two of the most sought after celeb endorsers
in the country, with the former edging out the latter in the celeb endorsement
race. The Master Blasters portfolio includes brands like Colgate Pamolive,
ESPN-STAR Sports, Pepsi, MRF, Boost, TVS, Palio, Visa, Adiddas and
Britannia. The leading brands endorsed by Khan include Hyundai, Pepsi,
Airtel, Tag Huer, Clinic All Clear, Bagpiper and Videocon, among others.
According to company executives, the idea of roping in Tendulkar is in line
with the groups strategy to connect to the mass market through celeb
endorsers from movies, cricket and music. For mass connect, Shah Rukh
and Sachin are the best bet as brand endorsers, says a senior company
executive. Bharti plans to launch a multimedia campaign targetting its service
at the mass market.

AIRTEL ADVANTAGES
31

Here are some of the advantages that New Airtel Prepaid brings to you.

Total Cost Control

You can control your Airtel Prepaid like never before. No more rentals or
deposits simply recharge as much as you need to from as low as Rs. 10, to as
high as Rs. 10,000/-.

Pre activated STD/ISD without deposits or rentals

You can now enjoy a pre-activated STD/ISD on your Airtel Prepaid. No more
paying deposits or having a minimum balance in your account to make an
STD/ISD call. Hassle-free calls are here to stay!

Strong Network Coverage

Enjoy complete clarity when calling with Airtels world-class technology and
unbreakable network coverage that spans over 23 circles across the country.

Instant Balance and Validity Enquiry

Your account balance is updated on the screen of your handset at the end of
each chargeable call. You can also call 123 from your mobile phone and listen
to the voice announcement or simply dial *123#, press 'OK' or 'YES' button
and your account balance will be displayed on the screen of your handset.

Recharge your Airtel Prepaid

Recharging is Easy. The calling value on your card keeps reducing as you
make calls or use any other chargeable service. Choose the Airtel Prepaid
Recharge Coupon thats right for you, from a variety of tailor made recharge
coupons with different denominations, which are available at a number of
outlets across your city. Simply follow the procedure mentioned below, to
recharge your phone.

More Recharge options:

Flexible recharge voucher

This unique recharge voucher gives you the option to choose between validity
or talktime, as per your need.

Easy Recharge
Recharge your Airtel Prepaid Card electronically with value that suits your
needs, starting from Rs. 10 till Rs. 10,000. You can also recharge your Airtel
Prepaid while roaming anywhere in the country.
32

24-hour Recharge via ATM

Recharge your Airtel Prepaid round-the-clock at your nearest ATM. Just walk
up to your nearest ATM, insert the ATM card and enter your ATM PIN number.
Select 'Mobile Recharge / Bill Pay' from the main menu and follow the
prompts to recharge your prepaid. This recharge option is available with all
leading banks.

SMS Recharge
You may also register your mobile number at any of the member bank's ATM
to avail the SMS recharge facility. Upon registration you will receive a
registration PIN number. To recharge your prepaid, type, RC <Recharge
Amount> <Registration PIN> and SMS it to the 3 digit SMS code of your bank.
All future transaction will require this PIN.
The code to which this SMS needs to be sent for various banks is as follows:
Bank of Punjab: 550, Centurion Bank: 565, Citibank: 530, Corporation Bank:
545, DCB: 585, HDFC Bank: 540, ICICI Bank: 575, IDBI Bank: 520, ING
Vysya Bank: 552, SBI: 535, UTI Bank: 525.

Internet Recharge
You may log on to the Internet banking website of your bank and select the
prepaid recharge option to recharge your Airtel prepaid. Many leading banks
provide Internet based recharging.

Validity Extension service

Trade your talk time to extend the validity of your prepaid. Dial *141*001# and
then, press the call button. Your validity would be extended by 1 day for a
charge of Rs.15. You can similarly extend your validity for 5, 10, 15 or 30
days.

Transfer Talk time

Transfer talk time to another prepaid, just dial *143* number# and then press
the calling button. You can transfer Rs.50 per request for which Rs.55 would
be deducted from your balance.
For details call 121.

Prepaid Roaming
Airtel Prepaid comes pre-activated with 'National Roaming', so you stay
connected no matter wherever you are. You can also send or receive MMS,
check your email and access other GPRS services while roaming in India as
you would in your own city. While traveling abroad you can receive calls &
send or receive SMS.

33

More with Airtel Prepaid

Airtel brings you, a wide range of Services that will change the way you
communicate. Try them and discover a whole new world of fun and
excitement.

Call management Services

Call waiting, call hold, call divert and Caller Line Identification Presentation
all with your Airtel prepaid connection.

Voice Mail
When your handset is switched off, or youre too busy to answer the phone,
Airtel Voicemail will answer your calls and record a message. The best part is
that there's no extra monthly cost for setting up Voicemail - you just pay for
the phone call when you use the service.

SMS (Short Messaging Service)

Send messages quickly and easily using text, if it's too noisy to talk or you
don't have much time. It's the way to share those interesting one-liners,
important reminders and rib-tickling jokes, with anyone, anytime, anywhere in
the world.

Subscription Alerts
Get regular alerts on news, jokes, business, health and films on your Airtel
mobile phone with Subscription Services. SMS <SUB NEWS> to 3333 for
News, <SUB JOKE> for Jokes, <SUB BIZ> for Business News, <SUB SPO>
for Sports Alerts & <SUB VAASTU> for Vaastu tips.

MMS (Multi-media Messaging Service)

Jazz up your messages with pictures, images and video clippings, with MMS
from Airtel! To activate MMS on your phone, SMS 'MMS' to 646 and save
service settings.

Airtel Live
Make your mobile the most happening entertainment destination with Airtel
Live! Airtel brings you the latest in entertainment and information services,
right on your phone!

Airtel Live! WAP Services

Download the latest ring tones, games, wallpapers, videos and much more.
You can also get news clips, watch live TV and download full songs on you
34

phone. To get Airtel Live! settings on your phone, SMS 'Live' to 646 and save
the settings that you receive as your preferred connection. Airtel Live! Portal
can be accessed from you GPRS enabled phone, by sending a SMS 'FUN' to
646.

Airtel Live! Voice Services:

Just Dial 646, and name the service. For e.g. say ring tones to download your
favorite ring tones. You can also choose a variety of content options like Live
Cricket Commentary, latest National / International News, Movie Reviews or
Stock Market Updates.

Airtel Live! SIM Services:

Access loads of fun content and exciting services like cricket, stocks, on your
phone at the touch of a few buttons with Airtel Live! SIM based Services on
your SIM card menu. To download new services on your Airtel SIM, choose
the "What's new" option under the "Airtel services" menu.

Airtel Live! SMS Services:

You can enjoy a host of services by sending a keyword as an SMS to 646!
Choose Astrology / Horoscope, Cricket, Bollywood / Hollywood / Indi Pop Ring
tones. In case you need assistance SMS, Help to 646.

Hello Tunes
Tired of that boring old tring tring on your phone? Well now when a friend
calls, you can make them groove to the hottest new tracks burning up the
music charts with Hello Tunes from Airtel! You get a wide choice of songs in
the Popular & New Arrivals categories that are updated regularly. What's more
you can directly call the number for your kind of music, e.g. call 678005 for
English New and 678001 for Hindi New. This would directly take you to your
favorite artist's Hello Tunes listing.

Copy a Hello Tune

Get the tune you want, all you have to do is call 678 and follow the simple
voice instructions to copy your favorite Hello Tunes. Once inside the copy
feature, just key in the 10-digit Airtel mobile number you want to copy the
Hello Tune from and you get the same Hello Tune assigned to your number.

Gift a Hello Tune

35

Forget gifting chocolates, flowers and greeting cards. Say it with a song
instead! Gift a Hello Tune to that special someone. Just call 678 and choose
the song that you want to gift. Follow the simple voice instructions and key in
the 10-digit Airtel mobile number that you want to gift the Hello Tune to. You
will get an SMS notification upon successful receipt of that gift.

Buy Music - Airtel Music Shops

Buying your favorite Hello Tune or Ring tone is as simple as recharging your
phone with talk time. Simply walk into your nearest Airtel Shop and walk out
with your favorite song. Choose from Bollywood Hits to Indipop Remixes,
Hard Rock to Gujrati Garba, Bhajans to Jazz, Bhangra Beats to foot tapping
Tamil Hits from a list of more than 18000 songs.

36

CHAPTER - II

37

OBJECTIVES OF THE PROJECT

The objective of this project is to understand the following points1. Sales and Marketing strategies used by Bharti AirTel Ltd.
2. How distribution channels are designed and operated in Nagpur
city.
3. To identify the problems encountered in day to day business of
AirTel.
4. To calculate the market share of AirTel prepaid in Nagpur city.
5. How to launch a new product in the telecomm market.
6. Disaster and Crisis Management.
7. Management of conflicts between retailers, distributors and
company.
8. How to manage the sales force, etc

Products Of AirTel Prepaid in Nagpur1. LAPU or Flexi Recharge

2. SIM Card
3. Different kinds of paper vouchers for validity, talk time and VAS
(value added services).

PART 1
A) Understanding Telecomm Terminologies and ProductsIn the first week of my internship, I have been taught the telecomm
terminologies used in their day to day operations. They are as
follows:LSO LAPU selling outlets
SSO SIM selling outlets
DSSO Daily SIM selling outlets

38

LSOs are those retailers who sell only LAPU i.e flexi recharge.
These retailers neither sell SIM cards nor the paper recharge
coupons.
The percentage of LSOs in my territory was 8%. They are mostly
those shops who have some business other than the mobile shop
like Kirana stores, book stores etc but just want to increase there
earning and also want more walk-in to their shops.
SSOs are those retailers who sells SIM card also along with paper
recharge coupons and LAPU. They are mainly those shops whose
business is related to mobile services like mobile repairing, mobile
selling and telecomm solutions. The percentage of SSOs in my
territory was 62%.
DSSOs are those retailers who are distinguished from others in
terms of daily SIM selling outlets. These are the key retailers of
each area and they are of prime concern for the company. These
are the retailers who contributes maximum to revenue of the
company because their daily turnover is very high. Companies
provides different lucrative schemes to these retailers in order to
continue the sales of the products from these outlets.

Conditions to be met for being a Registered LAPU retailer1. Minimum 5 transactions/recharge in a month.
2. Minimum Rs. 500 recharge in a month.
If any of the above condition is violated by the retailer, then his
LAPU SIM will be blocked and he will not be able to continue the
recharge from that SIM.

Activation Procedure of SIM Card (Only for AirTel Rest of

Maharashtra circle)Retailer will dial UN*mobile number of SIM* Last 5 digit of SIM
number* Customer Name and he will send it to 59109.
After this, the message for activating SIM card will reach to
distributor point and then the distributor will forward this
message to company by sending on 59110.
Within maximum of two hours the SIM card will be activated.

BILLING PROCEDUREThere are three types of Billing that occurs in AirTel day to day
operations39

1. PRIMARY- Billing between the company and the distributor

is known as primary billing. In this, Distributor pay to the
company through RTGS and then ask for the Stock.
2. SECONDARY Billing between the Distributor and Retailer
is known as secondary billing. In this, Retailer pay to the
FSE(Field sales executive) in cash or cheque and then ask
for stock from him.
3. TERTIARY Billing between the Retailer and Customer is
known as tertiary billing. In this, customer pay to retailer in
cash and then ask for the kind of product he wants to
purchase.
Revenue for the company will be generated, when customer will
consumes the recharge amount or use the product he has
bought.

APEF
APEF stands for AirTel Prepaid Enrolment Form. This form is required to be
filled by the customer and this form should reach the companys head office
with in 7 days of activating SIM card otherwise the activated SIM card will be
blocked by the company.

MARGINS1. On the sale of recharge through LAPU SIM or flexi recharge, following
are the margins available:To Distributor 3.96%
To Retailer 2.30%

2. On the sale of paper recharge vouchers, following are the margins

available:To Distributor 3.80%
To Retailer 2.30%
There are lots of different ways also to earn money, like by commission
to retailers on each SIM activation, through different activation
schemes every month, through promotional offers etc.

B) Sales and Distribution Channel Management40

In this part I had visited the distribution channel of two distributors Anil Sales
and Malewar Group of my territory.
At Anil Sales, there were 10 Field Sales Executive with one beat each and
with 35 to 40 retailers in each beat.
At Malewar Group, there were 5 FSE with 1 beat each and with 35 to 40
retailers in each beat.
I had inspected the distribution channel with FSEs in order to see the
structure of the beats.
My reporting manager told me to go to the Market with a format to record few
informations by taking Informal Interviews with retailers in order to find out the
Market Share of AirTel in each area of my territory one by one.
I have to record the monthly activations of competitors SIM cards at few
selected outlets. My report which I had submitted to the Territory sales
manager is as follows:1. Riya Mobile Accessories
AirTel - 15
Vodafone- dont sell
Reliance 20
Idea 5 to 10
Aircel 12
Uninor dont sell
Docomo dont sell

2. Anand Electronics
AirTel - 10
Vodafone- 10 to 15
Reliance CDMA(30 to 40), GSM(20)
Idea 10
Aircel 10
Uninor dont sell
Docomo In stock but no demand
3. Anand Videos
AirTel - 20
Vodafone- No sale
Reliance CDMA-10, GSM - 20
Idea 10 to 15
Aircel In stock but no demand from customer
41

Uninor 10 to 15
Docomo 5 to 10
4. Mobile Club
AirTel 45 to 50
Vodafone- 20 to 25
Reliance CDMA-30 to 40, GSM - 100
Idea 25 to 30
Aircel dont sell
Uninor dont sell
Docomo 15 to 20
5. KGN Mobile
AirTel 25 to 30
Vodafone- 20 to 25
Reliance CDMA-20 to 30, GSM - 45
Idea 15 to 20
Aircel dont sell
Uninor 10 to 15
Docomo 15 to 20

All of the above 5 shops are in Hansapuri, Nagpur area and after analysing
the report I found that Reliance is the market leader in this area followed by
AirTel at 2nd place.
The reason for which Reliance is the market leader in this area is they are
providing more commission per activation to the retailers as compare to AirTel
and that is why these retailers are preferring Reliance over Airtel in case when
customer ask for giving them any good SIM.
In the second week, I have been told to inspect all the areas of territory that I
was handling with the Field Sales Executive of that area and the assignment
given to me was that I have to visit each and every outlet of a particular beat
of the FSE and have to record all those points which I feels that are against
the reputation and brand Image of AirTel and because of which AirTel may
loose their market share.
On working upon this assignment, I had visited a new beat with a new FSE
everyday for the period of 2 weeks.
At the end of everyday I used to show the prepared report to the reporting
manager along with my recommendations. I am presenting one such report
here which is as follows:Visited Panchpawali Area with FSE Sudhir Karmakar on 8 th may 2011.
1. Manish Video Not even a single poster of Airtels currently running
schemes.
2. Jai Bhawani Mobile Everything at its place.
42

3. Laxmi teleservices This outlet is Airtels key retailer.

4. Gurukripa Mobile Gift of a previous offer has not been provided to the
retailer yet.
5. Sartaj books No display of Airtels currently running schemes.
6. Ahuja stationers No display of Airtel. Retailer doesnt even know
about few new plans launched by airtel in the city a fortnight ago.
7. Karan mobile shop - Everything at its place.
8. Suresh Kirana Store Shop was closed.
9. Vickey pan shop - Everything at its place.
10. Sysnet Marketing No proper display of schemes.
11. Virendra Mobile - Everything at its place.
12. Annapurana kirana store No proper display.
13. Aviral enterprises - Retailer doesnt even know about few new plans
launched by airtel in the city a fortnight ago
14. SJ mobile Everything at its place.
15. One touch sol this is a LSO.
16. Magic world - Everything at its place.
17. Ankit mobile No display of airtel.
18. Sri Krishna prov - Everything at its place.
19. Neelkamal gen store - Everything at its place. Key retailer.
20. Om novelty - Everything at its place.
One more common complaint that has been received by 9 retailers was that
Distributor is running out of stock of Friends SIM cards from last 8 days and
that is why sales are affecting.
Few retailers were also complaining that the FSE is not coming everyday and
that is why they are not able to meet the demand of customers due to
unavailability of products.

After completing all the previously given assignments on time, I have been
given the assignment for 4th week.
This week I have been told to reach at the Distributor point every morning at
10 am and I have to check the stock at the distributor point and also with
FSEs when they leave the distributor point for market. This is to be done in
order to check whether all the products are available with FSEs everyday
when they leave for market or not because in case of unavailability there
occurs Demand and Supply gap which should not be occurred at any cost
otherwise the sales affects which in turn affects the revenue of the company.

43

PART II
PRODUCT LAUNCH
MARKETING MIX

Product:In the second part of internship, I have launched a new product of

AirTel in the product category/product line of VAS (Value Added
Services) paper vouchers at Nagpur city.
Product Name - ZABARDUS
Product Line - Value Added Services paper vouchers.
Validity
- 1 day
ZABARDUS paper voucher was the new launch of AirTel in Nagpur
City. This product has 6 variants and all the six products cost Rs 10
individually with 6 different features.
1.
2.
3.
4.

100 local and STD messages

500 MB Internet
25 STD minutes
500 local A to A night minutes
44

5. Talktime of Rs 9
6. 100 local A to A minutes
All the above 6 variants has been launched by keeping in mind about
the different target customers.
Target Customers of this product are low income groups and those
customers who do not use their mobile phone regularly because of
high recharge amount. Few variants were specially designed for
college students like 500 MB Internet card and night calling minutes.
25 STD minutes coupon was specially designed for labour class
segment that used to call their family members in villages of other
states.
PRICE:The price of ZABARDUS VAS paper vouchers is Rs 10.
PLACE:The product has been launched through out the city. As the Target
Customers of this product are low wage earner customers and
students that is why during the launch of the product, those areas that
are near to the target customers society or from where target
customers shops, has been given special attention so that more and
more number of coupons can be placed in the market to make it a
success.

Hansapuri
Mominpura
KT nagar
Ramdas Peth
Godhni

PROMOTION:Promotional activities have been given special attention because

advertising and promotion are the key factors to make a product
success.
For the promotional activities, different kind of Posters, Buntings,
Stickers, Hanging strips etc were displayed at the shops and at
different locations across the territory.
SMS service was also started to make the customers aware about this
new product.

45

During my Internship period in 38 days 32000 ZABARDUS coupons

were placed at the outlets in the territory where I had launched the
product which was the highest compared to all other territories of
Nagpur City.
During the initial phase of launch, the response was not good. Retailers
were not ready to buy ZABARDUS vouchers because of low margin.
A retailer earns 23 paisa on selling one voucher and that is why they
were not ready to buy that product which in turn was increasing the
pressure on Zonal sales manager and territory sales managers
because this way they were not be able to meet their targets.
In order to eradicate this problem, the focus shifts towards
ZABARDUS placement and penetration into the market. Each
territory sales managers have been given strict orders to increase the
placement of vouchers and this way me too have been told to take
some actions so that more and more number of coupons can be billed
to the retailers otherwise customer will not be able to buy the product
which may result into the failure of product.
From the next day onwards I again started going to the markets along
with the Field Sales Executive in order to boost the sale of
ZABARDUS. I met those retailers who were not ready to buy
ZABARDUS vouchers. I asked them about the problems because of
which they are not buying the product and convinced them how this
product can help them retaining their regular customers and how in
absence of this product they may loose their regular customers.
The results of this strategy were fruitful and on the first day of market
visit regarding ZABARDUS placements, I placed 435 coupons in that
market which was not ready to buy the product as per FSE.

Sample of Branding done at the Outlets

46

RESEARCH METHODOLOGY

47

A research methodology defines the purpose of the research, how it

proceeds, how to measure progress and what constitute success with respect
to the objectives determined for carrying out the research study.
The appropriate research design formulated is detailed below.
EXPLORATORY RESEARCH: this kind of research has the primary objective
of development of insight into the problem. It studies the main area where the
problems have and also try to evaluate some appropriate course of action.
The research methodology for the present study has been adopted to reflect
these realities and help reach the logical conclusion in an objective and
scientific manner.
The present study contemplated an exploratory research.
NATURE OF DATA:
PRIMARY DATA: Data which is collected through direct interviews and by
raising questionnaires to retailers.
SECONDARY DATA: Secondary data is already available and published.
Various internet sites, newspaper, magazines were searched in order to find
information useful for completion of this project.
SAMPLING DESIGN:
Simple random sampling to select the sample.
SOURCE OF DATA: 1. Primary data which included the input received directly
from
the retailers through personal interview.
2 Secondary data from the industry manual, policy
manual,
books and internet etc.

DATA COLLECTION:
PRIMARY DATA: It has been obtained by conducting a survey in the following
Areas of Nagpur.
1.
2.
3.
4.
5.

Itwari
Hansapuri
Momeenpura
Panchpawali
Godhni
48

6. KT Nagar
7. Lalganj
8. Sadar
9. Gandhibagh
10. Vardhmaan nagar
11. Satranji pura
12. Ganga Jamuna road
METHOD: Interview method used with the retailers and asked about which
telecom operator they are preferring and then convinced them o promote
Airtel.

DATA ANALYSIS

GLOW SIGN BOARD:

49

Retailers needed glow sign board and non-lit board in order to make people
aware of their existence in the market. During my survey I found only a few
retailers possess the G.S.B. whereas others need it in order to promote their
sales and to increase profit.
Percentage of GSB working
Total no of sample 150

50

Point of Sale Material (POS)

P.O.S. is known as point of sale material which is supplied to the retailer by
the distributor through FSE. In my survey I found most of the P.O.S. material
is properly supplied to the retailers and they placed it properly in their shops.
Only few shops were found which have not devoted proper place for P.O.S
material because the material was not supplied or delivered at time.
POS is in place or POS not in place
Total no of sample 150

CLAIM:
Airtel has a strong goodwill among its retailers and the retailers are satisfied
with the services and facilities provided to them by Airtel. But sometimes
because of some technical error or as it is not easy to give attention to all its
retailers some problems related to claim is faced by the retailers. In my survey
I found that a small no. of retailers has the problem of claim or their claim was
delayed and very few have the problem of reversal and deactivation.
Retailers having no claim problem

51

Total no of sample 150

Technical
Technically Airtel is at the top as compared to all other companies operating in
that reason. During my survey I found a very few retailers have faced
technical problems like LAPU SIM blockage.
Total number of Samples is 150

52

Network:
Most of the network failure problem and server down etc were found in few
regions especially during mobile Internet usage.

LAPU:
LAPU SIM is used when retailers recharge the customer mobile through his
LAPU number. So sometimes transaction problem occurs.

53

54

MISCELLANEOUS PROBLEMS:
There were numbers of problems which I found were faced by the retailers
are:
1. Lack of knowledge about new schemes.
2. Change in plan is not known to them due to carelessness.
3. Customers SIM card blocked due to APEF not received by the
company
within 7 days.
3. FSE not visiting the area on regular basis resulting into a demandsupply gap.
Total number of samples is 150

55

SWOT ANALYSIS

STRENGTH

Indias most famous and dynamic telecommunication group.

Ability to think big.

Latest technology.

High level of customer satisfaction rate.

A good team of brand ambassador.

Goodwill in market.

WEAKNESS

Delay in claims.

Transaction problems.

Poor connectivity in some parts of rural areas.

OPPORTUNITY

As rural market is growing very fast. So, the future prospect for growth
in rural market is an opportunity for Airtel.

Attractive marketing strategy .

3AS strategy of Airtel is a big success in attracting a large number of

customers.

56

Availability
Accessibility
Affordability

THREATS

Rumours by competitors.

Attractive schemes by other competitors to retailers.

Strong branding campaigns by Vodafone in the city.

Inefficient Distributor Malewar Group

FINDINGS
Some problems faced by the company:

Huge demand of Friends SIM cards but lack of supply on time

destroyed many customers of the company.

Branding and Advertising is not proper in the city.

Vodafone and Reliance are giving tough competition to AirTel by

providing lucrative schemes and offers to retailers.

Few Field Sales Executives were not doing their jobs as per the
directions of the authority and they were also overlooking few very
important parameters, which were resulting into the loss of market
share.

Claim issued by the company to retailers was not accurate and that is
why retailers have some issues with the company.

AirTel has not yet launched 3G services in Nagpur and that is why
GPRS customers are switching to Idea for enjoying the benefits of 3G.
57

RECOMMENDATIONS

Supply chain should be managed properly by the company so that the

problem of Demand-Supply gap should be eliminated.

Weekly meetings should be arranged with Distributors and FSEs so

that loss of market share due to carelessness of FSEs could be
avoided.

3G services should be launched as soon as possible in order to add

and retain customers with AirTel.

Branding and Advertising should be given special attention because

AirTel lags behind their competitors in this area.

Process of calculating Claims of the retailers should be redesigned so

that AirTels image will not get hampered in the market.

Key retailers should be given special schemes in order to keep them

intact with AirTel and also to promote new products.

CONCLUSION

For a telecommunication company like AirTel which is a market leader,

promotional activities are very important in order to promote new
products, to boost sales of existing products and also to come in direct
contact of customers.

The telecommunication industry has lot of scope for more growth by

launching different kind of new and interesting Value Added Services
and these services are the key factors to compete with their
competitors.

Branding and Advertising are the two very critical factors for the
success of any brand in telecommunication industry.
58

Strong distribution channel is the backbone of telecommunication

industry and managing sales and distribution channel effectively is very
important to grow and take lead in the market.

While dealing with retailers, understanding their psychology and

demography is very important, i.e identifying whether they are
converted or not.

Monitoring Field Sales Executives is also very important for any

company to grow in this industry because they are the people who
represent a company in the market.

Innovations and First mover advantage always pays in this industry.

Companies should always be looking forward to come up with new and
innovative products in order to capture the market.

59

BIBLIOGRAPHY
BOOKS REFERRED: Phillip Kotler, Indian edition 2010
India Today, June 2011
WEBSITES:

www.google.com
www.marketingteacher.com
www.airtel.in
www.wikipedia.org
www.timesofindia.com

60

ANNEXURE
QUESTIONNAIRE
Q-1. Are you satisfied with the branding done by airtel at your
shop?
a) Yes
b) No
If Yes, explain
____________________________________________
__
Q-2. Do you have any kind of problem with the supply of
point of
sale material at your shop?
a) Yes
b) No
If Yes, explain
_________________________________________
____
Q-3. Do you have any kind of issues regarding claims
recieved
from AirTel?
a) Yes
b) No
If Yes, explain
_________________________________________
____
Q-4. Do you often face any technical problem while carrying
out
day to day operations?
a) Yes

b) No

If Yes, explain
_________________________________________
____

61

Q-5. Do you recieve any network related complaints from

AirTel
customers?
a) Yes
b) No
If yes, from which area _______________________
Q-6. Do you have any complaints about your LAPU card?
a) Yes

b) No

If Yes, explain
_________________________________________
____
Q-7. Are you satisfied with the services provided to you by
the
FSE on day to day basis?
a) Yes

b) No

If No, explain
_________________________________________
____
Q-8. Do you have any other problem associated with AirTel?
a) Yes

b) No

If Yes, explain
____________________________________________
____

62