A FINAL PROJECT REPORT ON VALUE ADDED SERVICES PENETRATION

A report submitted to Punjab Technical University, Jalandhar As a part fulfillment of MBA (Master of Business Administration).

Director Academics Kumar Delhi business school : 910849001 New Delhi Batch : Winter (09-11) mester : 4
th

Submitted to: -

Submitted by:-

Abhishek Roll. No.

Se

Univ Internal guide: Ms. Kiran Malhotra Delhi business school New Delhi

: Punjab Technical University

B-II/M.C.I.E.,Mathura Road, New Delhi Website: - www.dbs.edu.in

PREFACE
The aim of management course is not to produce readymade managers but rather to develop a habit of thinking rationally based upon the scientific principles of management. The post contents and theory of management endeavors to the scientific in nature while its application and presentation in the real business would remain a target to be developed by the individual. The purpose of introducing the student of management to the business world is to help the student to correlate and integrate the theory practice. The practical training too is essential part of the management course.

STUDENT DECLARATION
I hereby declare that the project report entitled VALUE ADDED SERVICES PENETRATION At Dishnet Wireless Limited Patna Submitted in partial fulfillment of the requirements for the degree of MBA to Punjab Technical University, Jalandhar , India, is my original work and not submitted for the award of any other degree, diploma ,fellowship, or any other similar little or prizes.

Place: New Delhi Date:

[Abhishek Kumar] Roll. NO:910849001

ACKNOWLEDGEMT
It is with real pleasure that, I record my indebtedness to my academic Guide, Ms. Kiran Malhotra for her counsel and guidance during the preparation of this project. I would also like to extend a special thanks to the Customers who gave me their valuable time and suggestions, and Employees of AIRCEL who gave their time out from their busy schedule and shared their valuable thoughts with me and also provide all necessary information which are required in this project. I wish to record my sincere and special thanks to my Office members and my Friends how helped me, support me and cooperated with me during the project.

Place: New Delhi Date: 27th Dec 2010

Name: Abhishek Kumar ROll No.910849001

TABLE OF CONTENTS
1. INTRODUCTION Introduction Executive Summary The Role of VAS The future of VAS in India About telecom sector in India. Basic structure of Indian telecom.
2.

Research Methodology 2.1 Methodology 2.2 2.3 2.4 2.5 2.6 Research design Source of data Sampling Data collection tolls Limitation of the Study

3. Overview of the Indian Telecommunication industry

4. Organization Profile 4.1 4.2 4.3 4.4 4.5 4.6 Company Profile Our Presence Telecom Circles Our Branch Offices Aircel Product Value added services
5

4.7 4.8

Awards & achievements Future Ahead

5. Data analysis 6. Findings 7. Recommendation

INTRODUCTION
Mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the persona of the user. We are witnessing an era when users buy mobile phones not just to be in touch, but to expert, Thus, there exists a vast world beyond voice that needs to be explored and tapped and the entire cellular industry is heading towards it to provide innovative options to their customers. Spoilt by choice, the mobile phone subscribers are beginning to choose their operators on the basis of the value added services they offer. ess themselves, their attitude, feelings & interests. Customers continuously want more from their phone. They use their cellular phones to play games, read news headlines, surf the Internet, keep a tab on astrology, and listen to music, make others listen to their music, or check their bank balance. The increased importance of VAS has also made content developers burn the midnight oil to come up with better and newer concepts and services. To understand that where this industry is at present and where it is headed, IAMAI and IMRB International have jointly prepared the Mobile VAS Report to focus back stage and uncover the trends in the cellular industry,

current market status, value chain, competition, market dynamics & expected roadblocks. This is the first publicly available study on Mobile VAS in India and the insights provided herein can be used by both the mobile operators and the content providers to better address the needs of their customers. A timely and strategic action would help nurture the mobile VAS market in India.

EXECUTIVE SUMMARY
Need for the study
The mobile subscriber base is growing at a scorching pace in India, India is now the 5th country in the world to have crossed the 100 million mark in subscriber base and has in the last two months become the fastest growing mobile market in the world. As average revenue per user decrease from voice drops, and voice becomes commoditized, Telecoms are increasingly looking at data as an additional revenue stream. The end users have also embraced VAS and it contributes between 5-10% of the revenues of different Telecoms. Thus Mobile VAS has become an important element in the growth of mobile telephony in India. Yet it is also equally true that there is little clarity on business issues and growth seems to be driven by more by inherent market momentum than a concentrated effort on the part of the stakeholders; differences exist even on basic issues like definition for Mobile VAS. Thus an understanding into the VAS space is needed to help stakeholders give a direction to this wave of growth

The Road Ahead

We believe that while the mobile VAS space is all set to grow rapidly, all the stakeholders will have to work together and create a self-sustaining ecosystem for this growth to sustain. Similarly it would take a joint effort of all concerned to address the significant roadblocks and thus unlock the true potential of Mobile VAS in India. The key addressable barriers would be to ensure greater rationality in revenue sharing between Telcos & content developers; ensure copyright protection, develop higher quality content which goes beyond Bollywood and cricket and also to have a focused WAP strategy. We also believe that while pure entertainment service would continue to appeal to the younger consumers, the overall focus for Mobile VAS would shift to utility based services like location information & mobile transactions; as security concerns are addressed mobile transactions will also have a good potential in India.

THE ROLE OF VAS

This is where the role of VAS (Value Added Services) comes into focus. Operators are facing cutthroat competition and with the call rates in India being one of the cheapest in the world, the margins are very low. Therefore they are looking at VAS as the next wave for growth. It has become the flywheel of telecom growth and a large chunk of revenue for operators is likely to come from VAS services in the years to come. But it is not only effort from operators which is driving the growth of VAS, there are other factors contributing to it. The growth of VAS in India has been helped both by macro level environmental factors and specific market initiatives to develop this category.

THE FUTURE OF VAS IN INDIA

In India, VAS will see a lot of structural changes, consolidation and emergence of cutting edge services:
Mobile operators will lose prominence in the value chain as the market

for Content Aggregators will consolidate and with their better bargaining power, this will ensure a revenue shift from Operators to Aggregators in the value chain. The VAS market will reflect revenue sharing arrangement in markets like China more closely.
In VAS content, we will see revenue from entertainment VAS come

down from the levels. End users want control and interactivity and therefore the applications to look out for in future will be user generated content and mCommerce. However mobile gaming will continue to grow and will contribute a higher share to the VAS pie.
Regional content is giving a significant boost to the content market

especially in the entertainment category. Regional content is getting popular both in voice and non- voice services. Players have anticipated
10

the trend and this is leading to regional content development. With increasing mobility penetration into the heartland of India, significant VAS revenues will be driven by regional content from B & C class towns.
Internet on mobile will become a more feasible option as leading

players in the internet content space especially configure their sites for access through mobiles; this would be further strengthened by the new trend of mobile domain being set up. Thus GPRS usage should pick up significantly

THE PRESENT STUDY

Market for the Project
The activity has been carried out under AIRCEL. I carried out my project within PATNA of BIHAR state where target segments are working people and new generation boys and girls.

Significance/Needs of the Project

This project was undertaken as a part of organization learning for MBA students to understand assigned in order to analyze the, market scenario of AIRCEL with special reference to PATNA city. This project also helps Aircel in taking their corporate decision. This project would also help AIRCEL to recognize the main strength and weaknesses and would also help to increase its customers base by adopting a better marketing strategy. The findings and recommendation of the project would prove to be very vital from the point of AIRCEL and would help them to increase their sales and better role in their services.
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Scope of the Project

Through the project work AIRCEL can take a better knowledge about the market scenario regarding people perception and preference towards communication sector as compared to other brands.

OBJECTIVE OF THE PROJECT

1. To Study The Value Added Service of Aircel. 2. To Find Out the Better VAS Services Of Aircels Customer. 3. To find out the customer Satisfaction Of Aircel About the VAS. 4. To Know the Customer Demand Of VAS services
5. To Enhance Our Market exposure.

6. To find out the Brand Value of AIRCEL

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METHODOLOGY
Marketing research is the systematic and objective identification, collection analysis, dissemination and use of information for the purpose of improving decision making related to the identification and solution of problem. During the course of conducting the study the information were gathered mainly through the primary source. Conducting field survey by taking to the retailer who is using mobile phone on the methodology used in the survey was personal observation and interview with retailer with the help of questionnaire.

RESEARCH DESIGN
Research design is a framework of blueprint for conducting the marketing research project. It deals the procedure necessary for obtaining the information needed to structure and / or solve the marketing research problem. The two types of research are:1. Exploratory 2. Conclusive

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The objective of exploratory research is to provide insight, into and understanding of the problem conforming the researcher. The objective of conclusive research is to test specific hypothesis and examine specific relationship.

Source of data:Data requires for the research work can be making available from different sources, they could be classified in two groups:a) Primary source:- includes living person, in my survey primary

sources constituted of the retailer who are selling telecom product and FMCG retail outlet.
b) Secondary data: - Includes already collected data whether

published or unpublished, such as officially data base, magazines and journals.

SAMPLING
When a small group is taken as the reprehensive of the whole, the study is called a sampling study. Sampling allows us to concentrate our attention upon a relatively smaller number of items and hence to devote more energy ensure that the information collected from them is accurate. When the whole area or Population person is contacted the method is known as Census method. In my survey it was census method because I was assigned a job to do survey in East Patna Zone and take to feedback of all those retails who are selling RCVs, EASY RECHARGE, SIM etc.

DATA COLLECTION TOOLS

The collection of data is through a (A). Questionnaire (B). Observation
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Questionnaire:o It is a piece of paper with a set of questions related to the purpose Research, which is presented to the respondent. The questionnaire used in my survey had close-end question.

Observation Methods:o When we look at the phenomenon with some objective it is

called Observation. It is the important technique for data collection. This Method was also accompanying survey, to know the exact position or Responses of the respondents.

LIMITATION OF THE STUDY

The scope of the study has been kept restricted due to time and money Constraints. Some question regarding the other company depends on the mood of the respondent and at the time during which they were interviewed

The biased view of the respondents. Some of the respondents were not aware about the facts. Though every possible attempt was made to ensure correct results but there may be changed of sampling error. There is a chance of human error.
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 This report is based on small area of Patna and is true for Patna region only, so this report cannot be generalized. The result is true for the given time period and it may vary with time.

INDIAN TELECOMMUNICATION INDUSTRY

TELECOMMUNICATION
The word telecommunication was adapted from the French word telecommunication. It is a compound of the Greek prefix 'far off', and the Latin communicate, meaning tale- meaning 'to share'.

Telecommunication is the transmission of signals over a distance for the purpose of communication. In modern times, this process almost always involves the sending of electromagnetic waves by electronic transmitters but in earlier years it may have involved the use of smoke signals, drums or semaphore. Today, telecommunication is widespread and devices that assist the process, such as the television, radio and telephone, are common in many parts of the world. There is also a vast array of networks that connect these devices, including computer networks, public telephone networks, radio networks and television networks. Computer communication across the Internet, such as e-mail and instant messaging, is just one of many examples of telecommunication.
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The basic elements of a telecommunication system are:

a transmitter that takes information and converts it to a signal for transmission a transmission medium over which the signal is transmitted a receiver that receives and converts the signal back into usable information

Often telecommunication systems are two-way and devices act as both a transmitter and receiver or transceiver. For example, a mobile phone is a transceiver. Telecommunication over a phone line is called point-to-point communication because it is between one transmitter and one receiver, telecommunication numerous receivers. A collection of transmitters, receivers or transceivers that communicate with each other is known as a network. Digital networks may consist of one or more routers that route data to the correct user. An analogue network may consist of one or more switches that establish a connection between two or more users. For both types of network, a repeater may be necessary to amplify or recreate the signal when it is being transmitted over long distances. This is to combat attenuation that can render the signal indistinguishable from noise. The shaping of a signal to convey information is known as modulation. Modulation is a key concept in telecommunications and is frequently used to impose the information of one signal on another. Modulation is used to represent a digital message as an analogue waveform. This is known as keying and several keying techniques exist these include phase-shift
17

through

radio

broadcasts

is

called

broadcast

communication because it is between one powerful transmitter and

keying, frequency-shift keying, amplitude-shift keying and minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges between devices.

HISTORY OF GSM
The Group Special Mobile (GSM) was created in 1982 by European Conference of postal and Telecommunications Administrations (CEPT) with the objective of developing a standard for a mobile telephone system that could be used across Europe. In 1989, GSM responsibility was transferred to the European Telecommunications Standards Institute (ETSI).The phase I of the GSM specifications were published in 1990. The first GSM network was launched in 1991 by Radiolinja in Finland. By the end of 1993, over a million subscribers were using GSM phone networks The growth of cellular telephone systems started in the early 1980s, particularly in being operated by 70 carriers across 48 countries.

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The Global System for Mobile communications (GSM: originally from Group Special Mobile) is the most popular standard for mobile phones in the world. GSM service is used by over 2 billion people across more than 212 countries and territories. The ubiquity of the GSM standard makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. From the point of view of the consumers, the key advantage of GSM systems has been higher digital voice quality and low cost alternatives to making calls such as the Short Message Service (SMS). The advantage for network operators has been the ability to deploy equipment from different vendors because the open standard allows easy inter-operability. Like other cellular standards GSM allows network operators to offer roaming services which mean subscribers can use their phones all over the world.

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GSM is a cellular network, which means that mobile phones connect to it by searching for cells in the immediate vicinity. GSM networks operate in four different frequency ranges. Most GSM networks operate in the 900 MHz or 1800 MHz bands. Some countries in the Americas (including the United States and Canada) use the 850 MHz and 1900 MHz bands because the 900 and 1800 MHz frequency bands were already allocated.

The GSM logo is used to identify compatible handsets and equipment. There are four different cell sizes in a GSM network macro Micro Pico Umbrella cells.

The coverage area of each cell varies according to the implementation environment. Macro cells can be regarded as cells where the base station antenna is installed on a mast or a building above average roof top level.
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Micro cells are cells whose antenna height is under average roof top level; they are typically used in urban areas. Pico cells are small cells whose diameter is a few dozen meters; they are mainly used indoors. Umbrella cells are used to cover shadowed regions of smaller cells and fill in gaps in coverage between those cells. The network behind the GSM system seen by the customer is large and complicated in order to provide all of the services which are required. It is divided into a number of sections and these are each covered in separate articles.

The Base Station Subsystem (the base stations and their controllers). The Network and Switching Subsystem (the part of the network most similar to a fixed network). This is sometimes also just called the core network. The GPRS Core Network (the optional part which allows packet based Internet connections).

All of the elements in the system combine to produce many GSM services such as voice calls and SMS

SUBSCRIBER IDENTITY MODULE (SIM)

One of the key features of GSM is the Subscriber Identity Module (SIM), commonly known as a SIM card. The SIM is a detachable smart card containing the user's subscription information and phonebook. This allows the user to retain his or her information after switching handsets. Alternatively, the user can also change operators while retaining the handset simply by changing the SIM. Some operators will block this by allowing the phone to use only a single SIM, or only a SIM issued by
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them; this practice is known as SIM locking, and is illegal in some countries. In the United States, Canada, Europe and Australia, many operators lock the mobiles they sell. This is done because the price of the mobile phone is typically subsidized with revenue from subscriptions and operators want to try to avoid subsidizing competitor's mobiles. A subscriber can usually contact the provider to remove the lock for a fee, utilize private services to remove the lock, or make use of ample software and websites available on the Internet to unlock the handset themselves Some providers will unlock the phone for free if the customer has held an account for a certain period. Third party unlocking services exist that are often quicker and lower cost than that of the operator. In most countries removing the lock is legal. In countries like India, Pakistan, Indonesia, Belgium, etc., all phones are sold unlocked. However, in Belgium, it is unlawful for operators there to offer any form of subsidy on the phone's price. This was also the case in Finland until April 1, 2006, when selling subsidized combinations of handsets and accounts became legal though operators have to unlock phone free of charge after a certain period (at most 24 months).

CHANGES WITH THE CHANGING TECHNOLOGY

Technological changes in telecommunications and computers have radically changed the business scenario. In turn, the new demands of business have spurred many telecom-based technological innovations. In order to exploit these innovations for competing in global markets, the business community the world over has been putting pressure on governments to revise the policy, regulation, and structure of the telecom sector. Several
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Countries across the world have responded by restructuring the statecontrolled telecom service provider, increasing private participation, and deregulating service provision. The emergent organizations have attempted to be more responsive to the business needs and have evolved mechanisms to remain competitive even under tremendous pressures. Over the past several years, developing countries have also recognized the important role a responsive, business-oriented, and technologically advanced telecom sector plays in the growth of the economy. Many developing countries now see the constraints of estate monopoly in telecom as standing in the way of a response to the twin challenges of spurring internal growth and competing in an increasingly global economy. Past experience of reform across many countries suggests that the fundamental issue that must be addressed in telecom reform is effective separation of the basic functions of policy making, operational management, and regulation (ITU Report 1989). The Second level of consideration is access to capital and human resources. The third level of concern is the introduction of competition for efficiency. Competitions perhaps more important than right ownership, if ever there was anything like it, in bringing about efficiency. The Indian telecom sector was wholly under government ownership until 1984, and was characterized by underinvestment, outdated equipment, and growth well below the potential of the market. In the mid-1980s, telecom was included by the government as a part of the so-called .Technology Missions a set of dedicated, welfare-oriented, and well focused programmes then implemented at national level.

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The DOT and the Precursor to Reform

In one of the earliest steps towards reforms and boosting indigenization efforts, the government set up the Centre for Development of Telematics (C-DOT) in 1984 with the objective of initiating and managing research in the switching and transmission segments. Subsequently, the government separated the Department of Post and Telegraph in 1985 by setting up the Department of Post and the Department of Telecommunications.
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In 1986 two new public sector corporations. The Mahanagar Telephone Nigam Limited (MTNL) and the Bharat Sanchar Nigam Limited (BSNL).were set up under the Department of Telecommunications (Dot). The MTNL, which was carved out of the Dot, took over the operation, maintenance, and development of telecom services in Bombay and New Delhi. The BSNL was set up to plan, operate, develop, and accelerate international telecom services in India. The government created the corporate organizations in order to allows decision making autonomy and flexibility and facilitates public borrowings that would not have been possible under a government framework. However, policy formulation, regulation, and several key decision areas remained with the DoT. A new organization, the Telecom Commission, was created in 1989 with a wide range of executive, administrative, and financial powers to formulate and regulate policy and prepare the budget for the DoT. The Telecom Commission had four full-time members managing technology, production, services, and finance and four part-time members representing the Planning Commission, Department of Finance, Department of Industry, and Department of Electronics. The creation of the MTNL, its subsequent operations, and the relationship of the personnel employed in the MTNL to their counterparts in the Dot raised questions about the organizational structure most suited for this sector. Therefore, in 1991, upon government initiative, the high-powered Athreya Committee submitted a report on the appropriate organizational structures for this sector. The report recommended:

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 Placing both policy and regulatory mechanisms under the Telecom Commission. Breaking up of the DoT into zonal corporations under the government. Setting up of a corporation, initially in the public sector, to handle the long-distance network. Allowing value-added services (VASs) to be provided by the private sector. Indicating general liberalization in production of equipment giving autonomy to R&D and training institutions. Subsequently, other studies for reforms had been commissioned, but in the absence of public debate, and employee and union concerns regarding the consequences of implementation. The government did not formally adopted any report.. Since 1997, there were several statements in the media by key decision makers and the Communications Minister calling for corporatization of the DoT. However, there was very little public information or debate regarding the sequence of decisions leading to corporatization or the form of corporate structure.
Since 1995, there was increasing pressure from international

organizations such as the WTO to review the monopoly status of the BSNL and the Dots monopoly in international long-distance communication respectively. The government had undertaken to
Review the monopoly status of the BSNL in 2004 and the possibility

of opening of long distance in 1999.

The BSNL continued to have a monopoly over international telecom

and broadcast transmission. It had planned to enter the long-distance market but the DoT hampered its plans. In 1999, the government
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created the Department of Telecom Services (DTS), whos Secretary was appointed from the Indian Telecom Services (ITS) cadre, and the DoT from the erstwhile the DoT, whos Secretary was appointed from the Indian Administrative Services (IAS). This was done ostensibly to separate the service provision component (DTS) from that of policy making (DoT). In reality this was to accommodate the conflict caused by the governments decision to appoint a Secretary to the department from the IAS, as DoT employees wanted the Secretary to be from the ITS. When the DTS Secretary retired, the government appointed an IAS officer in his place, which again led to agitation and further bifurcation of the DTS into the Department of Telecom Operations (DTO) and DTS. The DTS was to be headed by an IAS officer responsible for the MTNL, BSNL, Telecommunications Corporation of India Limited (TCIL), Indian Telephone Industries Ltd. (ITI), and Hindustan Teleprinters Limited (HTL) as well as for formulating the strategy for corporatization. The DTO was responsible for managing the telecom network. The governments view has been that a person from outside the ITS cadre would be better able to oversee the corporatization of the DoT since in the past senior management of the erstwhile DoT, mostly from the ITS, had resisted any kind of change Although an outsider Secretary was ostensibly to facilitate corporatization, it is not clear how, without the requisite mandate from the employees and especially the senior managers, he/she would be able to lead such a major task. This is not to say that the ITS cadre was better equipped to handle this task. What was missing was an overall strategy and an indication of the direction of change to inform the administrative changes. The government seemed to
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view corporatization as an administrative decision rather than a process. The Athreya Committee report as well as subsequent reports on restructuring may be viewed as the initiation of a process of
Examining organizational options. The reports, however, did not

accord due attention to the need for autonomy in financial and Operational decision making. Management incentives that would have allowed these organizations to increase profitability and raise capital from markets had been only very sketchily outlined Thus access to capital would have been a problem. Besides the limitations, the suggested changes were superficial since most .restructured. Organizations showed too much of a Control and rule orientation and continued to work in much the same manner as before. Inability of top management and political executives to address the need to make the DoT more competitive could be cited as a failure. Given the large base of employees who had been entrenched in a typical bureaucratic mode of functioning providing Customer orientation and a commercial approach were, and continue to be, the most difficult tasks. The DoT had no specific training policy in this regard. Though there were several training centers, these were not equipped to provide management training. The restructuring was far more concerned with form than content. Areas like identifying the mechanisms for acquiring new core Capabilities, developing appropriate incentives, and nurturing a climate in which change could take place were lacking.

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Telecommunications Regulatory Authority of India (TRAI)

The Telecommunications Regulatory Authority of India or TRAI (established in 1997) is the independent regulator established by the
29

Government of India to regulate the telecommunications business in India. Notwithstanding anything contained in the Indian Telegraph Act, 1885, the functions of the Authority shall be to(a) Make recommendations, on a request from the licensor, on the following matters, namely: (i) Need and timing for introduction of new service provider; (ii) Terms and conditions of license to a service provider; (iii) Revocation of license for non-compliance of terms and conditions of license: (iv) Measures to facilitate competition and promote efficiency in the operation of such services. (v) Technological improvements in the services provided by the service providers. (vi) Type of equipment to be used by the service providers after inspection of equipment used in the network. (vii)Measures for the development of telecommunication technology and any other matter relatable to telecommunication industry in general; (b) Discharge the following functions, namely:(i) Ensure compliance of terms and conditions of license; (ii) Notwithstanding anything contained in the terms and conditions of the license granted before the commencement of the Telecom
30

telecommunication services so as to facilitate growth in

Regulatory Authority (Amendment) Ordinance,2000, fix the terms and conditions of inter-connectivity between the service providers; (iii) Ensure technical compatibility and effective inter-connection between different service providers. (iv) Regulate arrangement amongst service providers of sharing their revenue derived from providing telecommunication services; (v) lay down the standards of quality of service to be provided by the service providers and ensure the quality of service and conduct the periodical survey of such service provided by the service providers so as to protect interest of the consumers of telecommunication services; (vi) Lay down and ensure the time period for providing local and long distance circuits of telecommunication between different service providers; (vii) Maintain register of interconnect agreements and of all such other matters as may be provided in the regulations; (viii) keep register maintained under clause (viii) open for inspection to any member of public on payment of such fee and compliance of such other requirement as may be provided in the regulations; (ix) Ensure effective compliance of universal service obligations: (c) Levy fees and other charges at such rates and in respect of such services as may be determined by regulations. (d) Perform such other functions including such administrative and financial functions as may be entrusted to it by the Central Government or as may be necessary to carry out the provisions of this act.
31

Provided that the recommendations of the Authority specified in the clause (a) of this sub-section shall not be binding upon the Central Government: Provided further that the Central Government shall seek the recommendations of the Authority in respect of matters specified in subclauses (i) and (ii) of clause (a) of this sub-section in respect of new license to be issued to a service provider and the Authority shall forward its recommendations within a period of sixty days from the date on which that Government sought the recommendations: Provided also that the Authority may request the Central Government to furnish such information or documents as may be necessary for the purpose of making recommendations under sub-clauses (i) and (ii) of clause (a) of this sub-section and that Government shall supply such information within a period of seven days from receipt of such request: Provided also that the Central Government may issue a license to a service provider if no recommendations are received from the Authority within the period of specified in the second provision or within such period as may be mutually agreed upon between the Central Government and the Authority. Provided also that if the Central Government has considered that recommendation of the Authority comes to a prima facie conclusion that such recommendation cannot be accepted or needs modifications, it shall, refer the recommendations back to the Authority for its reconsideration.

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Milestones in Telecom Reforms

1984 Manufacturing of subscriber terminal equipment opened to private sector. 1985 Telecom was constituted into a separate department with a separate board. 1986 MTNL and VSNL created as corporations.
1988 Government introduces in-dialling scheme. PABX services

only within a building, or in adjoining buildings. 1989 Telecom Commission formed.

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 1991 Telecom equipment manufacturing opened to private sector. Major international players like Alcatel, AT&T, Ericsson, Fujitsu, and Siemens entered equipment manufacturing market. 1992 VAS sector opened for private competition. 1993 Private networks allowed in industrial areas. 1994 Licenses for radio paging (27 cities) issued. May 1994 New Telecom Policy announced. September 1994 Broad guidelines for private operator entry into basic services announced. November 1994 Licenses for cellular mobiles for four metros issued. December 1994 Tenders floated for bids in cellular mobile services in 19 circles, excluding the four metros, on a duopoly basis. January 1995 Tenders floated for second operator in basic services on a circle basis. July 1995 Cellular tender bid opened. August 1995 Basic service tender bid opened; the bids caused lot of controversy. A majority of bids were considered low. December 1995 LOIs issued to some operators for cellular mobile operations in circles. January 1996 Rebidding takes place for basic services in thirteen circles. Poor response. The Telecom Regulatory Authority of India (TRAI) formed by ordinance. October 1996 LOIs being issued for basic services. March 1997 The TRAI Act passed in Parliament. June 1998 Several VASs available through private operators. The first private basic service becomes operational.
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 March 1999 Announcement of National Telecom Policy. January 2000 Amendment to the TRAI Act. August 2000 Announcement of Domestic Long Distance Competition Policy. October 2000 Planned Corporatization of DoT.

BASIC STRUCTURE OF INDIAN TELECOM

35

Ministry of Communication & Information Te chnology

Lice nsor Dept of Tele com Unified Lice Ope nse rators Fixed Line Ope tors ra Na tiona Long Dista Operators l nce CDMA Inte tiona Long Distance Ope rna l rators Judiciary Te lecom Dispute Settle nt me Appe te Tribuna lla l Wire Operators less GSM 900 & 1800 1800Mhz

Re tor gula Te com Re tory le gula Authority of India

EVOLUTION OF THE INDIAN TELECOM MARKET 1. Penetration and growth

The Indian cell phone market essentially started in 1992 with the sale of licenses, which enabled the private sector to participate in the industry (COAI, 2006). In 1994, cellular service licenses were granted for the major
36

metropolitan areas. This then expanded to 15 circles in the following year. Services were rolled out in 1995 with Kolkata becoming the first city to get a cellular network in August 1995. However, in December 2000 5 years after launch of cellular licenses penetration was still quite low. In fact, there were only about 3.2 million subscribers, primarily in the major cities and large towns. The major driver for change was the Telecom Regulatory Authority of India (TRAI).TRAI was instituted in 1997, and soon started building policies and regulations to push prices downward and spur competition. By December 2004, there were about 93mn phones in the country, of which 48mn subscribers were cellular (TRAI, Dec. 2005). The number of cellular phone users increased to about 76mn in December 2005 and about 89mn phones in March 2006 (Financial Express, Apr 2006) This trend indicates a CAGR of over 30%. Jorma Ollila, Chairman and CEO of Nokia, recently commented that India is amongst the top 5 telecom markets in the world (Light reading 2006) when he visited the country to reiterate his firms commitment to the market. Indeed, no other country in the world has added 4-5mn mobile phones per month. Exhibit 1 shows the growth of the postpaid and prepaid market in India, including prediction for 2010.

2.

Player

The Indian wireless market has both CDMA and GSM network operators. CDMA operators entered the picture and grew rapidly Reliance, which owns about 70% of the CDMA market currently with ~ 20.44 mn subscriptions, grew at over 114% year-on year in 2002-03 one of the
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most explosive phone launches ever ( TRAI Jun 2003, Financial Express, Apr 2006). The overall CDMA subscriber base, though, is still about 22.2% of the market with Tata Teleservices taking up most of the remaining CDMA share. The GSM players account for the remaining ~78% - with a market that is less dominated by one player. Bharti, state-owned BSNL, and Hutch control the largest parts of this market and have been adding subscribers at an impressive pace. As of April 2006, Bharti was the largest player by far, with 30.37 mn subscribers. BSNL had a subscriber base of 20.44mn, followed closely by Hutch with 22% of the GSM market and an overall share of 15.02%. The Telecom Regulatory Authority of India overseas the evolution of this market. Since its establishment in 1997, this agency has made many key judgments including statements on tariffs, quality of service, next generation networks, etc. TRAI also releases quarterly reports on the state of the telecom industry with special emphasis on tariffs, interoperability between networks, and usage (TRAI). Since Indian regulation makes it difficult for network operators to also sell phones (due to revenue share agreements), there is a completely parallel market for users to buy phones. In the GSM space, users go to handset providers to buy phones and then to network operators to get network services. Most global handset manufacturers are present in India with Nokia leading the pack by far. In 2005, more than 31mn handsets were sold. Of this, Nokia captured about 60% share over 18mn phones in one year. Motorola, which has a smaller share, is seeing growth with the introduction of more advanced phones including its Razr platform. Samsung, LG and Sony Ericcson all have reasonable market share as well
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 with LG catering almost exclusively to the CDMA space through a tieup with Reliance.

THE INDIAN MARKET BASIC DEMAND TRENDS

Demand for cellular services is interesting for a variety of reasons. Before catering to this market, service providers must consider unmet needs, price sensitivity, diversity in consumer profiles, and the skew in urban-rural markets. 1. Unmet needs Current Indian teledensity is 11.43 (i.e. only 11.43 phones both cellular and fixed line exist per 100 people) While that points to a staggering ~ 125mn phones already in the market, it also points to a large unmet demand. Specifically, peer countries have much higher teledensity. China has a mobile teledensity of 28.3 while in Malaysia, that number is 77. If India is to attain Chinas teledensity in 5 years up from its current penetration of ~ 7%, this implies an almost 4x increase in the number of phones. This would lead to demand for about 210mn additional phones in that time. 2. Young, growing, consuming market More than 95% of Indias population is under the age of 65.70% of the countrys citizens are below the age of 36, and half of those are under 18. (Bharadwaj etal, 2005; Wikipedia; Census Maps; Answers.com). Further, the standard of living has been increasing:
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only 26% of the population is below the poverty line now, compared to over 50% in the mid-70s. (Sinha, Jayant, 2005) Thus, the young, mobile segment of the population is quite large and more connected than any previous generation. In addition, it earns more and is more willing to spend on convenience products than previous generations. In fact, in some instances, consumer products like cell phones now have are a symbol of status. Young consumers are willing to buy new phones and are constantly looking for good deals and the opportunity to trade up to better products. 3. Value sensitivity The Indian consumer is also very price sensitive. Product managers have found that consumers in India will not buy products unless there is a clear value proposition at the lowest possible price. For instance, Nokia successfully introduced a customized version of their 1100 phone with features uniquely tailored to India dustresistant body and a built-in flashlight making it very popular among truck drivers (Bharadwaj et al, 2006). The phone itself retails for about $40. Indians also expect a high quality of services at the lowest possible tariff rate. Thus, tariffs in India for voice services are among the lowest in the world. While average American carrier charges about 30-40 cents per minute, the corresponding rate for an Indian carrier is only about 2 cents per minute. (Cingular, TMobile, TRAI Dec 2006). 4) Pre-paid rules Indian consumers choose plans and tariff structures that minimize monthly expenditure. Further, they also choose tariff plans that let
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them switch easily especially since they shop on price. Thus prepaid SIM cards are the dominant method of revenue generation. With this scheme, consumers buy a SIM card to use in their phones with a set amount of money on it (say ~$10). In addition, since receiving calls in India is free, very often consumers will only receive calls on their phones. And almost every cellular company has also introduced free incoming plans for 12years & lifetime free incoming plans. Thus, revenues per user are low, with pre-paid users contributing ~$5.6 per month. While the average post-paid user spends much more contributing ~$19 per month this is a small segment of the market in India. In 2006, for example, over 95% of new phone additions were pre-paid plans. (TRAI Dec 2006) (See Exhibit 1 for potential growth of pre-paid vs. post-paid in India).

5) Rural vs. Urban Market While growth in India is significant, there is a large difference between urban and rural markets. Teledensity varies wildly. For example, cities like Mumbai, Delhi, Chennai, and Kolkata have a teledensity around 49% while Circles B and C (which include farless urban states) see a penetration of 2.6% (See Exhibit 7 for market penetration in India varied by geographical areas). Aslo, service providers pay Access Deficit charges to subsidize the (mainly government run) players that serve the unprofitable rural
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markets. However, as network operators run into an increasingly saturated market in cities, they are slowly turning to rural areas to grow. To enter these markets, carriers will have to make large capital investments, create low introductory pricing, and only offer a basic level of services. Although growth in rural markets will be slower and require a larger investment per customer, with no guarantee of the same amount of revenue, the thirst for communication and poor landline infrastructure makes rural India a unique opportunity for growth. Consequently, operators are dropping prices to ensure they get their hands on the expanding customer pie and the large untapped market means that revenues from the voice market will drive the growth for the next few years. 6. Demographics The expected growth in the Indian GDP, 6-7 percent annually from 2005 to 2007, is a good indicator of the increased purchasing power of the population (Asian Development Bank 2005). A greater percentage of the Indian population has higher levels of disposable income with which to purchase products and services. Along with lower connectivity costs and cheaper handsets, the mobile market in India is seeing a huge influx of subscribers who can now afford basic coverage. India is also experiencing changing demographics that have contributed to the explosion in the mobile market. Approximately 70 percent of Indias 1.1 billion populations are between the ages of 15 and 40 (U.S Census Bureau-International Database, 2003). As a result, telecom players are looking at a young population with increased pay scales and more job opportunities.
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Furthermore, a high percentage of these Indians are still living at home and saving their salaries. Thus, this generation is able to spend a large percentage of their income on the purchase of entertainment and consumer electronics, including cell phones. 7. Role of Government The Indian government has played a significant role in setting the stage for growth in mobile telecommunications. Through the oversight of the Telecom Regulatory Authority of India (TRAI), the government has made many changes to regulations and policies to remove hurdles and spark growth. First, the Indian government introduced the Unified Licensing Regime in 2003. This regime allows operators to offer any service through the technology of their choice, in any area in which they currently operate. Thus, all telecom services (including voice, data, cable TV, and radio broadcasting) can now be delivered through a single medium and are covered by a single license. Unified licensing shifted operator behavior and caused operators to start focusing on converged services and networks for cost efficiency which, in turn, allows them to offer pricing conducive to rapid growth. In addition, the Indian government has raised the maximum foreign direct investment (FDI) limit from 49 percent to 74 percent in Telecom Sector. The government also enacted the Access Deficit Charge (ADC) policy, which requires that a share of call revenue be paid to the government to assist in funding network expansion into rural areas. As of early 2005, several regulations were imminent. First, the launch of an All India license would give operators the right to
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provide all forms of service throughout India with one license. This structure would initiate the next phase of market consolidation, with the result likely being five to six main players. The players would have greater scale which would lead to higher cost efficiency and, ultimately, more flexibility, and allow even fixed line users to switch to mobile services seamlessly possibly increasing competition in the market. Finally, the government needed to decide how to increase spectrum capacity, since 2G networks are nearing full capacity (2G stands for second generation cellular technologies, which are circuit-based, voice technologies deployed in the 1990s. This standard is being replaced around the world with 3G networks that are faster .

GROWTH OF TELECOM NETWORK (2010)

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With a strong population of over 1.1 Billion, India has become one of the most dynamic and promising Telecom markets of the world. In recent times, the country has emerged as one of the fastest growing telecom markets in the world. It has third largest telecom network and the second largest wireless network in the world.

NETWORK EXPANSION
The total number of telephones has reached 653.92 million telephone (landlines and mobile) May 2010 .
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 The Indian Mobile subscriber base has increased in size by a factor of more than one-hundred since 2001 when the number of subscribers in the country was approximately 5 million to 617.53 million in May 2010. The tele density, as given in the following graph, has shown a sustained increase during last few years. It increased from 26.22% in March 2009 to 36.98% in March 2010

Tele density graph

Cellular Service Providers

As on Apr 2007 India has 167 million mobile phone subscribers. Out of this 125 million are GSM users and 41 million CDMA users.

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BSNL, Bharti Airtel, Hutch, Idea, Aircel, Spice and MTL are the main GSM providers in India. Reliance Communications and Tata Indicom are the main CDMA providers in India. Bharti Airtel Airtel is providing cellular services in Delhi, Mumbai, Kolkata, Chennai, Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Goa, Orissa, Punjab, Rajasthan, Tamil Nadu, UP and West Bengal. Airtel is the No.1 cellular service provider in India using GSM technology. Airtel has 23% market share in India with a total subscriber base of 38 million.

Reliance Communications Reliance has both CDMA and GSM networks and total subscriber base of 29 million or 17% market share. It has GSM network in Assam, Bihar, Himachal Pradesh, Kolkata, North East, Madhya Pradesh, Orissa and West Bengal. Reliance has CDMA networks in other states and cities. Bharat Sanchar Nigam Limited (BSNL) BSNL is a state owned telecom company which has GSM presence in almost every cities and towns. BSNL has 27 million subscribers with a market share of 16%. Tata Indicom Tata Indicom is a main CDMA provider in India with 16 million subscribers all over India. Tata Indicom has presence in almost every states and cities in India
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Airtel has more than 100 million subscribers and BSNL has half as much. But, BSNLs revenues was more than Airtels until now. For the first time Airtel has surpassed BSNL to become countrys number one telecom operator in terms of subscribers and revenues. There is a drop of 0.4% in BSNLs revenues when compared with the previous fiscal year. Airtel has increased its revenues by 39.8% - a very impressive growth. BSNL did not face the heat until now as the revenues werent dipping. That doesnt hold good any more and it has to buck up or revamp before it turns into an Air India. BSNL doesnt have the same kind of excuses of Air India as it operates in a lucrative telecom market. The other operator which has seen a drop in revenues is MTNL. This is in spite of all the 3G spectrum and the leg-up both BSNL and MTNL got from the government. Giving subsidies and special treatment doesnt work after all. Reliance saw a decent growth of 23.1% and its revenues are 22341 crores. It is 3rd in line. The best growth in revenues was by IDEA Cellular at 50.7%. Airtel and Reliance are the 2 India based operators to feature in the top 20 telecom operators by subscribers.

Top 10 telecom service providers by revenues :

Operator Rank

Revenues 2006-07

Revenues 2007-08

Revenues 2008-09

Growth %

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1 2 3 4 5 6 7 8 9 10

Bharti Airtel BSNL Reliance Vodafone IDEA Cellular Tata Comm TTSL MTNL Aircel TTML

17888 40135 14468 10565 4413 8857 5178 4923 1507 1422

26436 35296 18638 15477 6720 8263 5993 4729 2528 1730

36962 35167 22341 22224 10125 9963 6739 4487 3425 1323

39.8 -0.4 23.1 43.6 50.7 20.6 12.4 -5.1 35.5 7.8

MARKET STRUCTURE OF TELECOM INDIA

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J a m m u & K a s h m ir

D i v i d e d i n to 22 c i r c l e s

H im a c h a l P r a d e s h P u n ja b U t ta r H a r y a n aP r a d e s h W

4 m e tr o s 19 c i r c l e s

M a r kStr u c tu r e F u r th e r et d i v i d e d i n to A , B a n d C c a te go r y b a se d o n e co n o m i c p a r a m e te r s a n d r e ve n u e p o te n ti a l E a c h c i r c l e h a s a l i ce n se s F o u r o p e r a to r s p e r c i r c l e a r e allo w ed
G u ja r a t M UM BAI

DELHI R a ja s t h a n

U tt a r P r a d e s h E B ih a r

M a d h y a P ra d e s h

W est B en gal

M a h a r a s h tr a

O r is s a

KO LKATA

A n d h ra P rade s h

L i ce n se s a r e sa l e a b l e

K a rn a ta k a

M E T R O C ircles
CHENNAI

A C ircles B C ircles C C ircles

T a m il N a d u K e r a la

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COMPANY PROFILE
51

Type Founded Headquarters Key people Industry Parent Products Website

Private 1999 Chennai, India Gurdeep Singh, CEO Telecom Maxis communications (74%) Apollo Hospital (26%) Mobile Telecommunication operator

http://www.aircel.com

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AIRCEL LOGO

MAXIS LOGO

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COMPANY PROFILE
The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with Maxis Communications holding a majority stake of 74%. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. In December 2003, it launched commercially in Chennai and quickly established itself as a market leader a position it has held since. Aircel began its outward expansion in 2005 and met with unprecedented success in the Eastern frontier circles. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. During this period, the company gained a foothold in 9 circles including Chennai, Tamil Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh and West Bengal. The Company has currently gained a momentum in the space of telecom in India post the allocation of additional spectrum by the Department of Telecom, Govt. of India for 13 new circles across India. These include Delhi (Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West) and UP (East). Aircel has won many awards and recognitions. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Aircel emerged as the top mid-size utility company in Business worlds List of Best Mid-Size Companies in 2007.

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Additionally, Tele.net recognized Aircel as the best regional operator in 2008. Aircel was the largest mobile phone service provider in Tamil Nadu, India, however, it has been recently been overtaken by Airtel and Hutch with better service and in terms of Number of Connections provided. It offers both prepaid and postpaid GSM cellular phone coverage throughout Tamil Nadu, Assam, NE States, Orissa, West Bengal, J&K, and Bihar & HP. It offers only the Basic phone service, and doesnt offer any Data services. Aircel, now part of Maxis Communications Berhad, Malaysia, is Indias seventh largest GSM mobile service provider with a subscriber base of over 6.2 million (over 4 million in Chennai & Tamil Nadu alone) and the fastest growing mobile operator in the country. As on date, Aircel is present in 9 telecom circles (Assam, Bihar, Chennai, Himachal Pradesh, Jammu & Kashmir, North East, Orissa, Tamil Nadu and West Bengal) and with licenses secured for the remaining 14 of the 23 telecom circles, the company is on track to become a pan-India operator. Additionally, Aircel has also obtained the nod from Department of Telecommunications (Dot) to provide International Long Distance (ILD) and National Long Distance (NLD) telephony services. For more information, please log on to www.aircel.com Aircel Business Solutions (ABS), part of Aircel, is headquartered in Chennai and is an ISO 9000 certified company. ABS is a registered member of WINMAX forum both in the Indian and International Chapters. ABS product range includes a host of cutting-edge enterprise solutions such as Multi Protocol Label Switching Virtual Private Networks

55

(MPLS VPNs), Voice over Internet Protocol (VoIP) and Managed Video Services on wireless platform including WiMAX.

56

AIRCEL PRESENCE

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TELECOM CIRCLES
Telecom Circles & Metro districts are responsible for providing service to the customers. There are 24 Telecom Circles and 2 Metro districts. 1. Andaman & Nicobar Telecom Circle 2. Andhra Pradesh Telecom Circle 3. Assam Telecom Circle 4. Bihar Telecom Circle 5. Chhattisgarh Telecom Circle 6. Gujarat Telecom Circle 7. Haryana Telecom Circle 8. Himachal Pradesh Telecom Circle 9. Jammu & Kashmir Telecom Circle 10. Jharkhand Telecom Circle 11. Karnataka Telecom Circle 12. Kerala Telecom Circle 13. Madhya Pradesh Telecom Circle 14. Maharashtra Telecom Circle 15. North East-I Telecom Circle for Meghalaya, Mizoram and Tripura 16. North East-II Telecom Circle for Arunachal Pradesh, and Nagaland. 17. Orissa Telecom Circle 18. Punjab Telecom Circle 19. Rajasthan Telecom Circle 20. Tamil Nadu Telecom Circle 21. Uttar Pradesh (East) Telecom Circle 22. Uttar Pradesh (West) Telecom Circle
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Manipur

23. Uttaranchal Telecom Circle 24. West Bengal Telecom Circle

Metro Districts
1. Kolkata Telecom District 2. Chennai Telecom District

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BRANCH OFFICES
Circle Name Postal Address

Aircel Cellular Limited, Aircel Towers, 301, Poonamalee Chennai Road, Kilpauk, Chennai 600 010 Aircel Limited, no 5, T B Road (Hosur Road) Codissia RoTN Towers, Coimbatore 642028 Dishnet Wireless Ltd. Triveni Commercial Complex, 3rd Assam Floor, G. S. Road, Ulubari, Guwahati-781007 Dishnet Wireless Ltd., Eldorado Building, 3rd Floor, Jail North East Road, Shillong 793001, Meghalaya Dishnet Wireless Ltd. Hall No 105-112 B1, North Block Bahu Plaza Complex, Jammu-180012 Dishnet Wireless Ltd. Near Gurdwara Shaheed Bunga, Jammu & Kashmir Baghat Barzulla, Srinagar-190005 Dishnet Wireless Ltd. 2nd and 3rd Floor, Keonthal HP Complex, Main Bazar, Khalini, Shimla 171002 Dishnet Wireless Ltd. 7th Floor, Block B, Fortune Orissa Towers, Chandrasekharpur, Bhubaneshwar-751023 Dishnet Wireless Ltd. 4th Floor, Office No.415, Maharaja Kameshwar Complex, Fraser Road(Mazharul Haque Bihar & Jharkhand Path), Patna 800001 Dishnet Wireless Ltd. A-201 to 205, A-304, A Block, City West Bengal Centre, Durgapur-713216 Dishnet Wireless Ltd. Globsyn Crystal Building, 3rd floor, Block EP, Plot No.11 & 12, Sec - 5, Salt Lake Electronics Kolkata Complex, Salt Lake City, Kolkata-700091 Aircel Ltd., B-1, Plot No.1&2, Local Shopping Centre, Delhi Vasant Kunj, New Delhi 110070 Dishnet Wireless Ltd., A-4 & A-29, NCPL Web Tower, Uttar PradeshSector 9, Noida, District Gautambudh Nagar, Uttar (West) Pradesh 201 301 Uttar PradeshDishnet Wireless Limited, Ratan Square, 3rd Floor, 20 A, (East) Vidhan Sabha Marg, Lucknow, Uttar Pradesh 226 001 Andhra Pradesh Aircel Ltd., 5th floor, CACHE Properties, Gumidelli Commercial Complex, 1-10-39 to 44, Old Airport Road,
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Begumpet, Hyderabad 560016 Aircel Ltd., Municipal No.66-5-25, HM Vibha Towers, Luskar Hosur Road, Adugodi, Bangalore 560029 Dishnet Wireless Ltd(Aircel), NO.9419/33/2365B, B1,B2,B3 R R Arcade, NH 47 Bypass, Thammana (PO), Cochin-682032 Aircel Ltd., Opus Centre, 47, Central Road, Opp: Hotel Tunga Paradise, M.I.D.C., Andheri (East), Mumbai 400093

Karnataka

Kerala

Mumbai

MISSION STATEMENT
We are conditionally committed to exceeding our customers expectations. we will provide network and services that are
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innovative and reliable, allowing our customers any time anywhere communications. we will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. We will meet the financial expectation of our shareholders.

OUR GOALS AND VALUES

CUSTOMER : Our customers are our most valued assets. We will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. PEOPLE : Our people are our greatest resources. we will attract, train and retain the best. We will challenge them to develop their full potential in the context of our company goals. INTEGRITY : We will maintain and strive for the highest levels of personal and professional integrity and honesty in all ours dealings. We will keep our promises. RESPECT : We will treat with respect & dignity all people we deal with. EXCELLENCE : We are committed to excellence in all what we do. There will be no place for mediocrity. WORK : We will promote a work environment that embraces creativity, promotes empowerment, and encourages team work, innovation, prudent risk taking, honest and open communication and respectful iconoclasm

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QUALITY : The hallmark of our internal and external outputs and

processes will be quality. This will pervade every aspect of our functioning .

Value Added Services

Pocket Internet:-

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Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic Ringtones, MP3 tones, True tones, Music Videos, Movie videos, Themes, Movie Themes and Mobile games only on Aircel pocket internet

Caller ring back tone:-

Aircel introduces Dialer Tunes! Get rid of boring Tring Tring and make your callers listen to latest tunes. Dial 53000, Registration Rs.30, call Rs.3/min. Song Download Charges : Free What is Caller Ring Back Tone?

Caller Ring Back Tone (CRBT) is a special feature through which the calling party can hear a song or music instead of the default "tring tring" tone.

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 Aircel 55500 Service

Aircel introduces 55500 Voice Portal! Dial 55500 to download latest ringtones, listen to latest news, and dedicate songs and your daily horoscopes. Call charges 10 paisa per sec. Total services on portal as follows:

Music Station Astrology Jokes Bollywood News

Music on call:-

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Now listen to music of your choice from the list of hit numbers without any interruption with Aircel's new "Music on Call". No breaks, no unnecessary chatter, just good Music. So stay tuned by just subscribing to the service.

Voice Portals:-

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Aircel 55500 service offers you a host of never before services - from music on your mobile to tit-bits about celebrities. All you need to do is call 55500 from your Aircel mobile and follow the simple instructions to enter a world of information and entertainment. The service recognizes your voice and gives information based on the command given by you.

Music Messaging and Ringtones:-Browse through the rich selection of music across the various categories and languages and listen to your favorites while on the go, also you can dedicate songs with a personal message to any Aircel number. You can download ringtones of these songs. We have wide collection of music based on occasions like birthdays, valentines, Rakhi, Diwali, Holi, New Year and song collections on Latest hits, Classic, Romantic Hits.

Multimedia Messaging Service:-

Multimedia Messaging Service (MMS) is a store and forward messaging service that allows mobile subscriber to exchange multimedia messages with other mobile subscriber. With this facility now start sending picture (images), audio & video clips with MMS. What's more you want just get it registered...

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 Subscription Services:-

Live astrology:-

Astrology service on short code 55315 is a voice based LIVE SERVICE, where AIRCEL customers can call at Rs. 9/min and talk to formally trained & experienced ASTROLOGERS.

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 Job Alerts:-

Aircel now Launches "Job Alert Service on Mobile". Tell us what you are looking for & sit back and relax! We will get your dream jobs to come looking for you. Get Jobs from the best sources like naukri.com, monsterindia.com, clickjobs.com, sulekha.com, timesjobs.com and lot more!

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 Devotional Voice:-

The Devotional Subscription service allows you to listen to full length of all the devotional songs from the Portal. All you need to do is just dial 55508 and subscribe to enjoy the unlimited devotional songs.

Mobile TV:-

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Mobile phone over the period of time has evolved from a basic communication device into a Multi-utility and entertainment device. This evolution of the mobile phone has created varied entertainment needs among consumers. In order to cater to such needs of consumers, we have launched Aircel Mobile TV service wherein subscribers would be able to watch popular TV channels on their mobile phones while on move.

GPRS:-

Now subscribers are empowered with web connectivity on their mobile phone and can enjoy the magic of internet. Subscribers will be able to browse, check emails on the move, view and update blogs, download
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entertainment & infotainment contents from all world wide websites from their GPRS compatible mobile phones.

Aircel Reminder:-

With this new reminder service, you can store important occasions/ events. The events will be reminded to you through SMS. COLOUR SMS

Music Stations: Astrology Jokes Bollywood News Tips

AIRCEL HEALTH SERVICES PLAY SCRABBLE

Search your favorites Ring tone

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Bengali Ring tones Voice Mail Service Save Your Contacts Healthy Living Tips SIM browser services Dictionary Funny Logos and Pictures

SUBSCRIPTION CHARGES
Subscription Send Service Keyword News Headline + SUB NEWS Breaking News Cricket NEWS & SUB CRI SCORES update Once a Jokes Alert SUB JOKES 58000 Rs 7/week SUB ASTRO Astro Pack Stock Alert 58000 Rs 7/week <SUNSIGN> SUB STOCK 58000 Rs 7/week Day Thrice a Day Once a 13:00 10:15 &
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Charges To

Alerts Twice a

Time 10:30 & 16:40

58000 Rs 7/week day Ball by 58000 Rs 7/week Ball

9:00

13:30

13:00 & Day 17:00 Though of the SUB THO Day Alerts Mehfil-ESUB 58000 Rs 7/week Timepass/Shayari SHAYARI Love Express Beauty Tips SUB BTIP Alerts Health Tips SUB HTIP Alerts Receipe Tips SUB RTIP Alerts Fun Unlimited SUB FUN Alerts Regional News SUB RNEWS 58000 Rs 7/week Alerts Ayurvedic Tips SUB ATIP Alerts Amazing Facts SUB AF Alerts Numerlogy Alerts Guru Granth Sahib Alerts Geeta Shloakas SUM NUM1 58000 Rs 7/week TO NUM9 SUB GURU SUB Geeta 58000 Rs 7/week 58000 Rs 7/week Day Once a Day Once a 7:00 6:40
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Once a 58000 Rs 7/week Day Twice A day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a Day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a 13:45 12:30 7:30 14:45 14:50 15:20 10:00 & 17:30 14:00 13:45 9:30 13:00 & 14:55 11:15 &

SUB LOVE

Day Once a Holy Bible Alerts SUB BIBLE 58000 Rs 7/week Day Once a Quran Alerts Ram Charit SUB RAM Manas Alerts Friendship SUB 58000 Rs 7/week Messages Alerts FRIENDS Career Guru Pack SUB CG 58000 Rs 7/week day Twice a Fundoo Pack Super Sports SUB SSP Pack Word-a-Day SUB WORD 58000 Rs 7/week SUB Bihar News NEWSBH SUB News - Bengal NEWSBN SUB News - Kerela News Kernataka News Maharashtra NEWSKER SUB 58000 Rs 7/week NEWSKK SUB 58000 Rs 7/week NEWSMAH Day
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6:40

SUB QUR

58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a

8:45

8:45

14:00 Day Twice a 10:00 & 14:00 11:00 & 16:00 10:00 & 15:00 9:35 Day Once a

SUB FNP

58000 Rs.30/month day Twice a 58000 Rs.30/month day Once a

58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a 58000 Rs 7/week Day Once a

11:40

11:40

11:40

11:40 Day Once a 11:40

SUB News - NCR News - North East News - Punjab NEWSPUN SUB News - Rajasthan NEWSRAJ SUB News - TN NEWSTN SUB News - UP NEWSUP SUB News - Gujrat NEWSGJ SUB News - AP NEWSAP SUB News - J&K NEWSJK Aduilt Jokes SUB AJ 58000 Rs 7/week 58000 Rs 7/week 58000 Rs 7/week 58000 Rs 7/week 58000 Rs 7/week 58000 Rs 7/week 58000 Rs 7/week NEWSNCR SUB 58000 Rs 7/week NEWSNE SUB 58000 Rs 7/week 58000 Rs 7/week

Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 11:40 Day Once a 12:40 Day Once a 10:00 Day

PRODUCT DETAILS
Local Rate Cutters

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1. Rs. 19- Aircel to Aircel call charges in night (11pm to 6 am) is Rs.

0.10/min.
2. Rs. 29- All local calls charges is Rs. 0.50/min. 3. Rs. 49- All local calls charges is Rs. 0.50/min and Aircel to Aircel

call charges in night(11pm to 6 am) is Rs. 0.10/min. Aircel to Aircel call charges in day is Rs. 0.25/min.

STD Rate Cutters

1. Rs.15- STD call rates to Bihar, Punjab and Delhi are Rs. 1/min. 2. Rs. 18- STD call rates to Maharashtra, Goa and Mumbai are Rs.

1/min.
3. Rs. 30- All STD call rates are Rs. 1/min.

ISD Rate Cutters

Rs.70- ISD call rates are as followMalaysia & Singapore: 3.00 Saudi Arabia, Bahrain & Qatar: 7.00 Oman-8.20, Sri Lanka: 5.50 China & South Korea: 4.00 US/CAN (except Alaska, Hawaii & Guam): 2.00 US (Others): 5.00 UK (Fixed): 3.75

SMS Pack
1. Rs. 27- 300 Local and National SMS free.
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2. Rs 60- 2000 Local SMS free.

Minute Packs
1. Rs.11- 25 Local Aircel to Aircel minutes free. 2. Rs.31- 100 Local Aircel to Aircel minutes free. 3. Rs.45- 200 Local Aircel to Aircel minutes free. 4. Rs.55- 100 local minutes free for all network. 5. Rs.65- 65 STD minutes free. 6. Rs.79- 100 Local Aircel to Aircel minutes and 100 local minutes for

all networks.

DATA ANALYSIS
1.Which Mobile service you use?

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Company Name Aircel Airtel Idea BSNL Vodafone Reliance Gsm Total

In Number 14 58 42 33 27 26 200 21%

Percentage 7% 29% 21% 16.5% 13.5% 13% 100%

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60 50 40 30 20 10 0 14 Aircel

58 42 33 27 26

Idea

Vodafone

In Number

Percentage

1. Are you aware of our Pocket Internet? A). Yes B). No

93

Yes

No

80

2. Are you using our Pocket Internet? A). Yes B). No

41

59

Yes

No

3. Are you satisfied with the speed of our Pocket Internet? A). Yes B). No

36

64

Yes

No

81

4. Are you getting information about schemes/offers given by company? A). Mostly B).Sometimes C). Never

9 24

67

Mostly

Sometimes

Never

5.

What is your opinion about call charge of Aircel? A).Satisfied B).Highly satisfied C).Dissatisfied

82

16

21

63

Satisfied
6.

Highly satisfied

Dissatisfied

How do you feel about the schemes offered in Aircel? A).Satisfied B).Highly satisfied C).Dissatisfied

20

54 26

Satisfied

Highly Satisfied

Dissatisfied

7. Do you find mode of recharge easily available? A).Yes B).No

83

93

Yes

No

8. Which features of your service provider you use most? A). Voice calls B).Text Messages C).GPRS D).Others

100 80 60 40 20 0

100

76

68 14
Gprs Others

Voice calls

Text messages

84

9. Are you satisfied with the amount of information provided by your service provider? A).Satisfied B).Highly satisfied C).Dissatisfied

12

26 62

Satisfied

Highly Satisfied

Dissatisfied

10.How is the customer service of call center in terms of response time and hold time?
85

Excellent

Good

Average

Poor

11 18 43

22

Excellent

Good

Average

Poor

SELF ANALYSIS

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1. I promoted the Value Added Services of Aircel by visiting retailers shop with Distributor Sales Manager (DSM) at different places of Patna. 2. Tried to understand and analyze the problems of Retailers and Customers related to Value Added Services. 3. Educated the Retailers and Customers about Value Added Services. 4. Sold new connections and promote the Value Added Services like Pocket Internet, Rate Cutters and SMS packs through Canopy. 5. Tackled the customers problems related to the Pocket Internet during canopy activity. 6. Started new outlets of aircel at different locations of Patna hence generating revenues for the company. 7. Participated in telecalling to customers and convinced them to use our value added services. 8. Took feedback by filling questionnaire and feedback form by customers in Aircel stores.

OBSERVATIONS

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1. The service provided by the AIRCEL related to internet which is available in Recharge of Rs. 98 is very acceptable by customers. 2. Most of the GPRS users use this plan to use internet in their mobile. 3. Customers query related to Pocket Internet were that they have problem in GPRS settings installation in their handsets. 4. Most of the customers are not able to use Internet service with their PC or Laptop. It creates dissatisfaction to customers. 5. The disconnection of the call between callings creates a negative impact on the customers mind; most of customers are facing this problem. 6. Many times it happens when customer calls to Customer Care for solving their problems the phone is not received by any executive.
7. Aircel provides STD Rate Cutter at Rs. 30 which reduces the STD

calls at Rs 1/min. But our competitor like Idea provides the STD Rate Cutter at Rs. 54 in which reduces the STD call rate to Rs. 0.75/min.

SUGGESTIONS
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1. We should cover the rural areas through better network coverage because it has more future customers. 2. We should promote the Rs. 29 of Rate Cutter because other service providers give local rate cutter is more than Rs.29 and call rates are Rs.60/min. 3. We give free local Aircel to Aircel calling and SMS in Rs.225 but our competitor gives this service in just Rs. 199, so we should give some extra talk time with this pack. 4. Aircel is mind only Pocket Internet but we also promote other Value Added Services like our local rate cutters. 5. Complaint should be directly registered by sending SMS to a toll free number provided by the company.

SWOT ANALYSIS
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Strength

Aircel provides Low call rates like Re.1 for first minute, 60p. for next another minute and 40p. for rest of the call duration in a continue call.

Low rate of Rate Cutters vouchers like Rs.29 and Rs. 49. All the rate cutters vouchers works in BIHAR. 300 local and national SMS at just Rs.27 only where other competitors provides only local SMS at this price. Moreover 2000 local SMS at just Rs. 60 only.

Minimum Rate of Internet GPRS service at only Rs.98 (POCKET INTERNET) for 30 days. Aircel provides voucher of Rs.14 of internet voucher for the validity of 3 days in which the customers can access the internet in their handsets and PC and check the service of Aircel.

Unlimited surfing and Downloading are free with PC. Aircel provide unlimited calling and sms on the same network with the recharge of Rs 225 only and also the customers get local calls at 50 paisa only and STD in just 1 Rupee only.

Aircel give 100 local minutes only at Rs. 55 and can use to all network but our other competitors give these minutes to only own network.

Aircel provides 65 minutes in just 65 Rs. Only.

Weakness
Network problem in main Patna City.
90

 There is no network coverage in rural areas. Problem in internet speed on computer.

Service problem like some customers complained that they already recharged with Rs 98 and received GPRS settings but they are not able to access internet.

Opportunity

Indian market is too vast that we can grab this opportunity and we can spread our services to maximum customers.

Can cover the rural area to mature potential from that area. There are so many opportunities in value added services.

If Aircel provide a proper service and speed of GPRS internet for our customers then it will be very beneficial for our good sales.

There are so many opportunities in value added services like 98 and 14.

At this time limited numbers of people are using internet services and we are providing this service at a very low cost in order to increase our customer base we need to improve the quality of the service.

Threats

Customers are facing many problems with the network and unsatisfied with services which could lead to drawbacks of connections.

STD rates are high. We have to reduce STD rates or reduce the rate of STD rate cutter because other competitors like idea are providing STD rate cutter in just Rs 54 and the STD rates is 75 paisa/min.

Customers are facing low speed of internet service of our pocket internet.

91

 Some customers are access the pocket internet with mobile but they are unable to connect it with PC. Aircel is providing our services at very low cost which could be a threat for us if any competitor took advantage and start giving these services at same or low cost then we can loose our present and future customers.

ANNEXURE
92

1.

Which Mobile service you use? A).Aircel D).Vodafone A). Yes A).Yes A).Yes company? A).Mostly B). Sometimes B).highly satisfied B).Highly satisfied B)Highly satisfied C). Never C).Dissatisfied C). Dissatisfied C).Dissatisfied B).Airtel E).BSNL B). No B). No B). No C).Idea F).Reliance GSM

2. Are you aware of our Pocket Internet? 3. Are you using our Pocket Internet?
4. Are you satisfied with the speed of our Pocket Internet?

5. Are you getting information about schemes/offers given by

6.

What is your opinion about call charge of Aircel? A).Satisfied How do you feel about the schemes offered in Aircel? A).Satisfied How do you feel about the schemes offered in Aircel? A).Satisfied 9. Which features of your service provider you use most? A). Voice calls C).GPRS provider? A).Yes B).No B).Text Messages D).Others

7. 8.

10.Are you updated with latest offers & schemes by your service

93

11.Are you satisfied with the amount of information provided by your service provider? A).Satisfied B).Highly satisfied C).Dissatisfied

12. How is the customer service of call centre in terms of response

time and hold time? A).Excellent B) Good C). Average D).Poor

13.Any improvement suggestions regarding Aircel.

94

BIBLIOGRAPHY

www.aircel.in

www.wikipedia.com

www.mobileindia.info

www.mobigyaan.com

www.telecomtalk.info

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Thank You

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