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From starting we came to know about the objective and need which we have done in project.
Then I have given some information of telecom industry in India with literature review and Porter’s five forces and also SWOT analysis.
As per market share I have given some background of all the companies in Indian telecom industry.
Then main project start that I have done comparative study of airtel and Vodafone.
Then I have done some research on telecom industry by forming the questionnaire and then some information of research methodology and then data is been analysis and interprets.
After data analysis I have given some suggestions, recommendations and conclusions for Airtel.
Comparative study of Market Analysis of Airtel and Vodafone
Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Contents NEED OF THE STUDY OBJECTIVE OF THE STUDY OVERVIEW OF TELECOM INDUSTRY LITERATURE REVIEW PORTERS FIVE FORCES TOWARDS TELECOM INDUSTRY SWOT ANALYSIS OF TELECOM INDUSTRY OVERVIEW OF ALL COMPANIES IN TELECOM INDUSTRY AS PER MARKET SHARE. COMPARATIVE STUDY OF AIRTEL AND VODAFONE RESEARCH METHODOLOGY SCOPE OF STUDY DATA ANALYSIS AND INTERPRETATION SUGGESTIONS RECOMMENDATIONS CONCLUSION QUESTIONNAIRE BIBLIOGRAPHY Page No. 5 6 7-14 15-20 21-24 25-26 27-39 40-56 57-59 60 61-67 68 69 70 71-72 73
Comparative study of Market Analysis of Airtel and Vodafone
NEED OF THE STUDY
1. To identify the difference between market performance of Airtel industry and Vodafone. 2. To study the market of Airtel Industry and Vodafone on big scale
telecommunication sector. 3. To compare various parameters of marketing strategies, manufacturing process, technology adopted production policy, advertising, collaboration, export scenario, future prospect for the two companies and government policies. 4. To study the level of customer satisfaction in Airtel & Vodafone. 5. To study customer buying behavior and factors which influence the purchase decision process. 6. To study consumer preferences.
3. This survey research may be also aimed as to estimate potential buyer for the product. export scenario. manufacturing process. To identify the difference between market performance of Airtel industry and Vodafone. The objective of the study is as under:1. 2. 5. future prospect for the two companies and government policies. To know how the company has been successful in encountering the aggressive marketing strategies of competitors. To study customer buying behavior and factors which influence the purchase decision process. 4. Page 4 . technology adopted production policy. collaboration. For this it is very essential for an organization to know about the view of consumers and their competitive products. To study the market of Airtel Industry and Vodafone on big scale telecommunication sector.Comparative study of Market Analysis of Airtel and Vodafone OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals. advertising. To compare various parameters of marketing strategies.
telegraph was popular way of communication. the final judgment limited the Bell System to Common Carrier Communications and Government projects but preserving the long-standing relationships between the manufacturing. AT&T commits to dispose its telegraph stocks and agreed to provide long distance connection to independence telephone system. In 1956. Baltimore to Washington in 1844.Comparative study of Market Analysis of Airtel and Vodafone HISTORY OF TELECOMMUNICATION INDUSTRY The history of telecommunication industry started with the first public demonstration of Morse’s electric telegraph. researches and operating arms of the Page 5 . In 1876 Alexander Graham Bell filed his patent application and the first telephone patent was issued to him on 7th of March. In 1913.
AT&T was requested to divestiture its stock ownership in Western Electric. This final judgment brought to a close the justice departments seven – year-old antitrust suit against AT&T and Western Electric which sought separation of the Bell Systems Manufacturing from its operating and research functions. In 1982 . separation of telephone manufacturing from provision of telephone service and the compulsory licensing of patents owned by AT&T on a non-discriminatory basis.Comparative study of Market Analysis of Airtel and Vodafone Bell System. It was telecommunication act of 1996 that true competition was allowed. In this judgment AT&T retained bell laboratories and Western Electric Company. AT&T was still controlling the telecommunication industry. divestiture by Western Electric of its fifty percent interest in Bell Telephone Laboratories. AT&T ‘s telecommunication research and development facility. termination of exclusive relationship between AT&T and Western Electric. The act of 1996 opened the market to all competitors. is a jointly owned subsidiary in which AT&T and Western Electric each own 50% of the stock. AT&T being the first telecommunication company paved the road for the telecommunication industry as well as set the policy and standards for others to follow. Beginning of telecommunication in India • • • • 1851 First operational land lines were laid by the government near Calcutta 1881Telephone services introduced in India 1883 Merger with postal system 1923 Formation of Indian radio Telegraph Company Page 6 .
Comparative study of Market Analysis of Airtel and Vodafone • 1932 Merger of ETC and IRT into Indian Radio and Cable Communication Company • 1947 Nationalization of all foreign telecommunication companies to form the posts. service providers are the main drivers. Riding on expectations of overall high economic growth and consequent rising income levels. Indian Telecom industry is one of the fastest growing telecom markets in the world. Page 7 . an exclusive provider of domestic and long-distance services that would be its own regulator • 1986 Conversion of dot into two wholly government – owned companies the VSNL for international telecommunication and MTNL for services in metropolitan areas • 1997 Telecom regulatory authority created Telecommunication is important not only because of its role in bringing the benefits of communication to every corner of India but also in serving the new policy objectives of improving the global competitiveness of the Indian economy and stimulating and attracting foreign direct investment. whereas equipment manufacturers are witnessing growth and decline in successive quarters as sales is dependent on order undertaken by the companies. In telecom industry. telephone and telegraph. a monopoly run by the government’s ministry of communications • 1985 Department of telecommunication established . it offers an unprecedented opportunity for foreign investment. TELECOM INDUSTRY SCENARIO IN INDIA The Indian telecommunications market has been displaying sustained high growth rates.
Russia. each having a population of one million or more. Over the past 10 years. tourism etc. The boom in the services sector is slated to come from India. translating into 882 million by year 2020. emerging as a chosen destination for software and other IT enabled services.the BRIC economies. “India could emerge as the world’s third largest economy and of these four countries. over the next fifty years. Population projections from the Planning Commission of India suggest that the share of the working age population (15-64 years) in total population will grow from the current 59 per cent to about 65 per cent. India has the potential to show the fastest growth over the next 30 to 50 years”. The share of the services sector as a percentage of total GDP is also predicted to rise from the current 46 per cent to about 60 per cent by 2020.McKinsey & Co. as local spending patterns change. promising rich returns on investments. India has registered the fastest growth among major democracies. by 2008.could become a much larger force in the world economy. and account for 7 per cent of India’s GDP and 30 per cent of India’s foreign exchange inflows. it’ll employ 4 million people. It reports.According to the Vision 2020 document for the Planning Commission of India. Brazil. The report also states that. It represents the fourth largest economy in terms of Purchasing Power Parity. This profile of Page 8 . This could be an important determinant of demand and pricing patterns for a range of commodities”. the Indian IT software and services sector will account for US$ 70-80 billion in revenues. Study.Future growth is likely to be concentrated in and around 60 to 70 large cities. India and China . having grown at over 7 per cent in four years during the 1990s. the country will witness continued urbanization.Comparative study of Market Analysis of Airtel and Vodafone A combination of factors is driving growth in the telecom market. “Rising incomes may also see these economies move through the ‘sweet spot’ of growth for different kinds of products. According to a Nasscom. The urban population is expected to rise from 28 per cent to 40 per cent of total population by 2020. According to a recent Goldman Sachs report.
58 million in quarter ending March 2009 as compared to 10. 180 million people are expected to move into the consuming and very rich classes. SERVICES PROVIDED BY THE TELECOM INDUSTRY Wire line Services 1 Wire line services subscriber base stood at 37.87 million wireless subscribers were added.90 million in quarter ending December 2008.89 million subscribers in the previous quarter. Over the years. Wireless Services 1 The Wireless subscribers have reached 391.98 million in quarter ending December 2008 to 6. spending power has steadily increased in India. Page 9 . Over the next five years.20 million in quarter ending March 2009.61 lakhs in quarterly ending march 2009 4 Number of Public Call Offices (PCOs) have increased from 5. Between 1995 and 2002.96 million in quarter ending March 2009 as compared to 37. During this quarter 44.39 lakhs in quarter ending December 2008 to 5.Comparative study of Market Analysis of Airtel and Vodafone concentrated urban population will facilitate customized telecom offerings from operators. nearly 100 million people became part of the consuming and rich classes. 2 Rural Wire line Subscriber base stood at 10.68 million in quarter ending December 2008. 3 Number of Village Public Telephones (VPTs) have increased from 5.76 million as on 31st March 2009 as against 346.
26 million in the quarter ending March 2009 as against 258.23 million at the end of the previous quarter.Comparative study of Market Analysis of Airtel and Vodafone 2 Technology-wise Wireless Market Share There are 297.01% at the end of December 2008.54 million Internet subscribers at the end of March 2009 as compared to 12.52 million at the end of December 2008.82 million wireless data subscribers at the end of March 2009 (capable of accessing data services including internet through mobile handsets [GSM/ CDMA]).68%.30%. there are 117. 2) Besides above. CDMA The CDMA subscriber base has reached 94. The growth rate of broadband subscribers in this quarter is 12.22 million at the end of March 2009 as compared to 5.88%) and 94.12%) at the end of March 2009.85 million Internet subscribers at the end of December 2008 registering a growth of 5.The number of Broadband subscribers (with a download speed of 256 Kbps or more) was 6. 3) Broadband Subscriber Growths .66 million at the end of the previous quarter Internet Services (Including Broadband) 1) There are 13.50 million CDMA subscribers (24.50 million in the quarter ending March 2009 as against 88.26 million GSM subscribers (75. This growth rate is higher as compared to the growth rate of 5. ISP Providers In INDIA BSNL % Market Share 54% Page 10 . GSM The GSM subscriber base has reached 297.
0.244 million Ethernet LAN. 0. TIMELINE . 0. 5.020 million Leased Line and 0.002 million use other technologies.364 million are DSL based.Comparative study of Market Analysis of Airtel and Vodafone MTNL Bharti Airtel Reliance Sify Hathway Tata Others Total 16% 8% 7% 2% 2% 2% 8% 100% 4) Broadband Subscribers Share (Technology wise) – Out of total 6.22 million broadband subscribers.474 million Cable Modem.042 million Fiber.EVOLUTION OF INDIAN TELECOM Mid 1980s Department of Telecommunications set up Mar 1986 Apr 1986 VSNL incorporated to provide international telecom services MTNL incorporated to provide fixed-line telephone services in Mumbai and New Delhi Dec 1991 DoT invites bids from Indian companies for cellular licenses in the four metropolitan circles May 1994 Government announces the National Telecom Policy. 0. 0.072 million Wireless. opening up the basic service sector to private players Sep 1994 Nov 1994 Entry guidelines for basic services announced Licenses were issued to cellular operators in the four metros Page 11 .
Comparative study of Market Analysis of Airtel and Vodafone Mar 1995 Oct 1996 Jan 1997 Nov 1998 Mar 1999 Jul 1999 Paging services by private operators commence Licenses for 20 cellular circles issued Telecom Regulatory Authority of India established by government ISP business opened up to operators other than DoT and VSNL Government announces NTP 1999 DoT announces Migration Package for existing operators' costs. with no restriction on the number of players TRAI issues the first tariff order and cuts domestic and international long distance telephone charges. Aug 2007 Subscriber thresholds were revised by TRAI as operators could support more subscribers with lower spectrum as compared to WPC allocation Jan 2008 Govt of India allocated start-up spectrum to all prior licensees awaiting spectrum (does not include LOIs issued in January 2008). subject to compliance with certain conditions Aug 2000 Government announces guidelines for opening up domestic long licensing distance telephony for carrying both inter-circle and intra. Aug 2001 Jan 2002 in tariffs Mar 2007 9 distinct operators had been allocated GSM spectrum.circle traffic. only Bharti has a pan-India presence. Out of these. These include Opening of National Long Distance Service to competition Bharti starts cellular to cellular long distance services with sharp cuts Page 12 . Jan 2001 The Department of Telecom opens up basic services to unlimited competition and allows basic operators to provide WLL services on a restricted basis.
Page 13 . 11617 crore for 9 telecom circle while Reliance Communication paid Rs 8583 crore for 13 telecom circles.3247 crore. Among the major bidders. while India’s largest 2G Mobile service operator Bharti Airtel paid Rs. 2010 and there were nine bidders in the fray for the slots of 3G spectrum on the block.5765 cr for 11 telecom circles. Apr 2010 3G Spectrum Auction TRAI plans to introduce MNP (Mobile Number Portability) on a pan-India LATEST DEVELOPMENT A WIDE LOOK ON INDIA’S 3G AUCTIONS: India’s auction for 3G GSM Service licence ended today with bids for pan-India licence touching Rs 16.Comparative study of Market Analysis of Airtel and Vodafone Aircel (14 circles).3317 crore. Bihar. No single bidder bid for a pan-India 3G license so state operator BSNL would be remain the biggest 3G operator in India. Idea (2 circles). Orissa. The 3G auction had commenced on 9 April. Delhi circle emerged the most valuable circle at Rs. Jun 2009 basis. Idea cellular paid nearly Rs. Jammu and Kashmir and Himachal Pradesh.751 crore which ensures the Government of India a revenue of Rs 67. RComm (14 circles) and Vodafone (6 circles).12290 cr for 13 telecom circles. Vodafone Essar will paid Rs. The government auctioned three slots in 17 telecom service areas and four slots in the remaining five states of Punjab. followed by Mumbai at Rs.719 crore.
It does so by comparing and contrasting the Indian experience with dominant reform strategies elsewhere in the developing world. operator and also arbitrator in disputes between itself and licensed competitors. in its article “Socioeconomic Implications of Telecommunications Liberalization: India in the International Context” says that Telecommunications restructuring have evolved differently in Asia and Latin America. T. The National Telecom Policy 1994 spelt out decent objectives for reform but tragically its implementation was entrusted to the DOT. Latin American nations have implemented radical ownership and market transformations. increased private participation. This created an untenable situation in which the DOT became policymaker.H. universal services. cross-subsidies. Shaped by legislation dating back to the colonial era and post Second World War socialist policies. The choice of a high component of competition. and the possible rise of an information-intensive economy. such as the cost of services. The Indian telecommunications reform falls in between these two general regional trends. by the mid-1980s India realized that its poor telecommunications infrastructure and service needed reform. or demonopolization. While Asian governments have moved cautiously in bringing changes to the sector. networks and services. He discusses the question: ‘Why did India get it so wrong? and What India should do now? Page 14 . regulator. At the heart of the problem lay the monopoly by the government’s Department of Telecommunications (DOT) in equipment. Chowdary (1999) discusses how Telecom reform. employment. in India has been bungled. private investments. and no privatization of the national carrier set conditions that will trigger unique socioeconomic effects. This article identifies and highlights the likely implications of the Indian reform on key economic and social issues. licenser.Comparative study of Market Analysis of Airtel and Vodafone LITERATURE REVIEW Girija (1998). network interconnection.
The global Internet scenario is discussed regarding the phases of the Internet in India. where the cost function has been duly modified to account for the production technology of a public monopoly. Describes the Internet/ISP scene within India and discusses the configuration of local. provides a broad view of the role of an Internet service provider (ISP) and the factors to be considered before entering the ISP market. industry and infrastructure are briefly discussed. The paper aims at isolating agents of change based on international experiences and situates India in the development continuum. Some of this fall under the “economic agenda'' of measures needed to maintain economic growth. In this article. She also identifies the various success factors. in her paper described the Liberalisation of the Indian telecommunications services which started in mid nineties with no change in the existing public monopoly structure. in the wake of a balance of payments crisis. VSNL. competition policy and technology. several challenges remain. The agents of change have been broadly categorized into economic structure. entirely controlled by Department of Telecommunications (DoT). The financial and legal implications are highlighted in the Indian context. Accordingly. impact of the reforms on poverty. STPI. In order to evaluate any proposed industry structure. the researcher estimates a frontier multi-product cost function for DoT. Satyam Infoway and Bharti-BT. As reforms enter a more difficult phase. sectoral issues relating to agriculture.e. Das (2000). it is essential to analyse the production technology of DoT so as to determine the rationale of liberalisation and sustainability of competition. i. in his article named “India's economic policy reforms” says that India was embarked on economic reforms in July 1991. This study implies that the choice of any reform policy should consider the trade-off between the loss of scale and scope economies and cost saving from the reduction in inefficiency of the incumbent monopoly in the event of competition. The study finds that although DoT displays high allocation inefficiency. Many companies entered the nascent ISP Page 15 . The main players are described: ERNET. it is still a natural monopoly with very high degree of sub additively of cost of production. NICNET. Rao (2000). others can be termed the “development agenda'' .of improving human development.Comparative study of Market Analysis of Airtel and Vodafone Anand (1999). pre and post commercialization. Progress with regard to the former is not sufficient to produce results concerning the latter. MTNL. Issues concerning economic policy. an attempt is made to review two books and a set of World Bank reports concerning the progress of these reforms. and the supporting infrastructure. regional and national level ISPs. Bhattacharya (2000) constructs a vision of the Indian telecommunication sector for the year 2020. in her article named “Internet service providers in India”.
foreknowledge of new Internet technologies. Indian economy is agriculture based and employs maximum workforce. The benefits of ICTs have not reached the masses in India due to lack of ICT infrastructure. Adoption of ICT in agriculture will play an increasingly important role in crop production and natural resource management. Building local content. Vrmani (2000) estimates the contribution of telecommunication (or telecom) services to aggregate economic growth in India. etc. However telephony penetration in villages is less than two percent of the rural population and about 15 percent of the villages are still without any telephony service. therefore. and absence of practical applications. Illiteracy in rural areas is as high as 40 percent and in some tribal belts hardly about 20 percent people are literate. must be given the top priority if advantages of ICTs are to be harnessed. Page 16 . in his article “Enhancing Developmental Opportunities by Promoting ICT Use: Vision for Rural India” talks about the foremost benefits of Information and Communication Technologies (ICTs) in developing countries that can be helpful in improving governance including public safety and eradication of illiteracy. as majority of villagers in India cannot afford a separate home connection. where two-third of the population of the country lives. The other critical factor is technological challenges for universal access to ICTs to bring down the network access cost. Improvement in agriculture productivity can help in reducing rural poverty. Even in cities and suburban areas. Estimated contribution is distinguished between public and private sectors to highlight the impact of telecom privatization on economic growth. Education and training. particularly in rural areas. Narinder (2004). price and income determinants of demand for telecom services are estimated by capacity of telephone exchanges Estimation results offer evidence for significant negative own price elasticity and positive income elasticity of demand for telecom services. use of ICTs is not popular due to lack of awareness to its use. India is the largest country in South Asia. There are 35 million children in age group of 6–11 years. many of them are unlikely to survive in the longer term.Comparative study of Market Analysis of Airtel and Vodafone business in India due to deregulation. Knowledge of policy determinants of demand of telecom services is shown to be essential to enhance growth contribution of telecom services. who are out of school and one out of four drops out during primary classes. would help in their sustainability. computer illiteracy. Universal access to ICTs in rural areas has been planned and is being implemented through Public Tele Info Centers having voice data and video. connecting issues. She concludes that though many companies entered the nascent ISP businesses in India due to deregulation. Using a recent sample survey data from Karnataka State in South India. competitiveness. with a population of over one billion people and its telecom sector is presently experiencing fast growth phases.
Communication and Technology (ICT) revolution. the corporate sector. Basically India is building an information society. in his article “The role of technology in the emergence of the information society in India” describes the role that information and communication technologies are playing for Indian society to educate them formally or informally which is ultimately helping India to emerge as an information society. The aim of this paper is to touch upon and highlight some of the areas where. The paper has taken an approach to find the historical situation and present the prevailing scenario as well as the change that are taking place with the application of ICT to the advantage of the society in different areas including daily life. A follow-up paper will outline collections of significant cultural material which. With 1. it certainly has caught up with the West and is ahead in important respects. Second. there have been two notable shifts. In the FCC's discussion with other regulators over the last two years. India is making all out efforts to be counted among the developed nations of the world. First. Dey (2004). The Government. in her article talks about the discussions between the Federal Communications Commission (FCC) and communications policy makers and regulators in other countries and how they have gleaned several clusters of issues where further research would directly benefit them. analyses that changing face of India in bridging the digital device. Tamizhchelvan (2004). the illiteracy rate is also huge in this country. Though India has a huge population. e-learning and egovernance. India and its villages are slowly but steadily getting connected to the cities of the nation and the world beyond. and understanding consumer issues that arise often in the FCC's discussions with other regulators. the overlap of wire line telecom. by using ICT. enforcement. questions regarding process and procedure for regulation are becoming ever more urgent. India is one of the biggest growing economies in the world. Singh (2005). technological change is potentially shifting market definitions. as the acceptance of the competition model over the monopoly model for telecommunications markets takes deep effect in regulators all over the world. development of infrastructure and human resource for meeting national needs. could form part of a digitally preserved national heritage collection. once national IT strategies are fully achieved. The article also describes the considerable attention India is taking for application of technology.Comparative study of Market Analysis of Airtel and Vodafone Nikam. Recently. wireless telecom and cable television has become more pronounced.000 million people and 180 million households. NGOs and educational institutions have supported rural development by encouraging digital libraries. With the advent of the Information. Owing to the late Rajiv Gandhi.“India lives in villages” said the Father of the Nation. Ganesh. He reiterated . Mahatma Gandhi. and though India may have been slow to start. e-business. India is now a powerful knowledge economy. Page 17 . the masses have been reached in this way. This paper discusses current questions regarding decision making.
The paper also enforces that comparisons of India’s telecommunication statistics with those of developed and other emerging economies show that the country is still far behind its contemporaries. Banka (2006) gives an overview of the mergers and acquisitions in the telecommunication industry. The analysis is done in the background of wake of global Page 18 . He foresees a sector that represents humongous opportunity waiting to be tapped by Indian and foreign conglomerates. Ltd. The findings of the paper suggests that public service in telecommunication is a relatively ‘‘new’’ concept in the annals of Indian telecommunications and that a deregulated environment along with the Right to Information movement holds significant hope for making public service telecommunications a real alternative. According to him Governments decision to raise the foreign investment limit to 74% is expected to spur fresh rounds of mergers and takeovers in India. personal correspondence. The article provides a reflexive. and published information as its research material. in his article describes the contribution made by telecommunications in India by the state and civil society to public service. The Indian software sector is being recognized as the single largest contributor to incremental market capitalization in India but the sector is still small in terms of contribution to GDP. critical account of public service telecommunications in India and suggests that it can be strengthened by learning gained from the continual renewal of public service ideals and action by the postal services and a people-based demand model linked to the Right to Information Movement. Mr. (2008). All studies done by the researcher suggests that the right to information movement has contributed to the revitalization of participatory democracy in India and to a strengthening of public service telecommunications. especially when compared to other large sectors in the economy like agriculture and manufacturing. In IT-enabled services too. this article aims to identify the state’s initial reluctance to recognize telecommunications provision as a basic need as against the robust tradition of public service aligned to the postal services and finds hope in the renewal of public service telecommunications via the Right to Information movement.Comparative study of Market Analysis of Airtel and Vodafone Technology has helped society to cut across the traditional boundaries for getting converted into an emerging information society. Similarly. The article follows the methodology of studying the history of telecommunications approach that is conversant with the political economy tradition. in its “Quarterly Performance Analysis of Companies (April-June 2008)” has analysed the Indian telecom industry in the awake of recent global recession and its overall impact on the Indian economy. India has been clearly perceived to be the dominant hub. Cygnus Business Consulting & Research Pvt. the telecommunication sector has contributed a lot but still has a considerable way to go. Thomas (2007). The study concludes that The Indian software and services industry has significantly helped to boost the Indian economy. It uses archival sources.
Anderson (2008). Operations Director. The company has proactively established relationships with individual entrepreneurs. The estimate for the next five to ten years is that the rural market will form 40 % of the subscriber base. and the country is witnessing wild momentum in the telecom industry. Uttar Pradesh. Maheshwari (July-September 2008). and innovate by taking into account the unique institutional context of developing markets. which is an emerging market for the industry. The formation of a Telecom Equipment Export Forum and the announcement of the Indian Semiconductor Policy 2007 are steps in this direction. The telecom industry in India could slowly become an example of the service sector acting as a fillip to the growth of the manufacturing sector. Hutch India” suggests that managers need to go beyond traditional approaches to serving the poor. the Indian telecom industry is expected to maintain the growth trajectory in the next quarter as well. Mani (2008) addresses a number of issues arising from the growth of telecom services in India since the mid-1990s.Comparative study of Market Analysis of Airtel and Vodafone recession and rising inflation. and has seen gaps in local infrastructure or missing services as potential opportunities rather than barriers to growth. and has provided has provided development support to other partners such as distributors. This growing subscriber base is basically created by tapping into rural India. With almost 5-6m subscribers are being added every month. A beginning towards this has been made. The study has analysed the human resource management process of the industry. and specially the latest trends of recruitment of this massively growing industry. Page 19 . His practical implication says that the experience of Hutchison Essar in India provides some important lessons for mobile network operators (MNOs) and other firms in other developing markets who are hoping to serve the rural poor: Hutchison has recognized the value of corporate and non corporate partners. Also this article demonstrates that MNOs can deliver availability and affordability to achieve increased individual or household penetration through business model innovation. Cygnus estimates. The company has seen the rural market as an opportunity – not just an obligation to be served because of universal service obligations. in her report analysed the Indian telecom industry and ascertain that Indian telecommunications has been zooming up the growth curve at an mounting pace. It also discusses a number of spillover effects for the rest of the economy and one of the more important effects is the potential to develop a major manufacturing hub in the country for telecom equipment and for downstream industries such as semiconductor devices. and India is has surpassed US to become the second largest wireless network in the world. in his single executive interview titled “Developing a route to market strategy for mobile communications in rural India An interview with Gurdeep Singh. The company has recognized the value of leveraging existing local institutions.
the article has thoroughly investigated about the intense competitive scenario. The article has also described the cause of being relatively safe of this industry. The study states that the sector is fairly immune from the current economic downturn & does provide a good defensive bet in medium term. better quality doctoral education and incentives to entrepreneurs for start-ups in telecom equipment manufacturing. In a country like India which has a problem of massive unemployment. Knowledge of policy determinants of demand of telecom services is shown to be essential to enhance growth contribution of telecom services. substantially low tariffs & Page 20 . The country is also far behind in R&D spending when compared to other leading countries. In 2006-07. R. no effort should be lost in strengthening the powers of the TRAI. high capital intensity & substantial regulatory uncertainties currently faced by the industry. Only 35% of the total demand for telecom equipment in the country is met by domestic production. declining handset/subscription costs. price and income determinants of demand for telecom services are estimated by capacity of telephone exchanges. which lags behind telecom services. Estimated contribution is distinguished between public and private sectors to highlight the impact of telecom privatization on economic growth. namely Bharti.Comparative study of Market Analysis of Airtel and Vodafone Success crucially depends on the response of the private sector to these incentives. but surely a strong turmoil is going on in the industry. Shah (February. The causes described by Shah are increasing rural coverage. which is basically fuelling the growth of the sector. pricing pressure. Narayana (2008) estimates the contribution of telecommunication (or telecom) services to aggregate economic growth in India.Comm and idea in the background of recent global meltdown. Estimation results offer evidence for significant negative own price elasticity and positive income elasticity of demand for telecom services. rising affordability. 65% of the total consumption of equipment was met through imports. Using a recent sample survey data from Karnataka State in South India. the manufacturing sector should be promoted to create more employment opportunities. This is not favourable to long-term sustained growth of the telecom sector. Given the importance that a regulatory agency can play in this crafting. This trend has far-reaching implications for the economy and should not be allowed to continue for long. India needs to see an increase in R&D investment. The benefits to the Indian economy from having both a strong services and manufacturing segments in the telecom sector cannot be undermined. 2009). While the 3G / Broadband adoption would ensure long term growth momentum. The study suggests that though there is no sign of slowdown in this sector. has analysed Indian telecom industry and studied the sector keeping in mind three companies. industryacademia-government partnership. wireless penetration is expected to increase in the near future. Sharma (2009) deals with the major challenges faced by India’s telecom equipment manufacturing sector. With the help of newer technologies.
. Let us talk about the current scenario. 1. However. Bharti Airtel) Foreign invested companies. (BSNL and MTNL) Private Indian players. A highly competitive market might result from: i) ii) iii) Many players of about the same size. Highly competitive industries generally earn low returns because the cost of competition is high. (Vodafone. Page 21 . PORTERS FIVE FORCES MODEL ON TELECOM SECTOR IN INDIA Porter’s five forces model uses concepts developed by Industrial Organisation economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. the study also cautions the telecom industry that a steeper economic slowdown could start impacting the subscriber usage patterns as well as operator capital investments & thereby could substantially restrict revenue growth rates going forward. Idea cellular) There has been a stiff competition in the telecom market over a period of time. there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth. (Reliance comm. companies can only grow by stealing customers away from competitors There are majorly 3 types of players in the industry… i) ii) iii) State owned players..Comparative study of Market Analysis of Airtel and Vodafone established brand/distribution. COMPETITIVE RIVALRY WITHIN AN THE INDUSTRY This describes the intensity of competition between existing firms in an industry. Tata comm.
Reliance comm. there has been a tough competition between Bharti airtel and Vodafone each having a market share of 30 % and 24% respectively.2010 by a whopping 11 mn. BARGAINING POWER OF CUSTOMERS. The major booster is the wireless mobile subscribers which have crossed 433 million. Indian telecom industry is one of the fastest growing or second largest in the world.2010. Here are a few reasons that customers might have power: i) ii) iii) Small number of buyers Purchases large volumes Customers are price sensitive. service providers are the major drivers. In this industry. Page 22 . There has been a major increase in subscribers in the month of April. BSNL has an edge over private players as it has already started with 3G spectrum services across India. then the customer hold substantial power. BSNL is BSNL dedicatedly performing its work as it drives India into the next league of telecom supremacy by providing technologically advanced services to its discerning customers at an affordable cost On the private side.2. If one customer has a large enough impact to affect a company's margins and volumes.44. and Aircel are also in the race as they lack in the infrastructure when compared with Vodafone and Bharti Airtel 1. Even the growth rate of both the companies for the month of April when compared with March is around +/.47.5% . Both are again in the race to start with the 3G services and cater it all across India and give a tough competition to BSNL who is already in the market. It is expected to grow more after the 3G services starting off from sep1. This is how much pressure customers can place on a business. Idea cellular. 15%.985 with a market share of apron.Comparative study of Market Analysis of Airtel and Vodafone At present has a subscribers base of above 6.
Other important parameter in this can be the software assistance. BARGAINING POWER OF SUPPLIERS This is how much pressure suppliers can place on a business. So the role of suppliers is almost negligible in the industry. Few of the new entrants are Spice. Mobile handset suppliers : There are many handset suppliers in the market. Karbon. There are no substitutes ii) iii) iv) Switching to another (competitive) product is very costly The product is extremely important to buyers . We are trying to analyze that minor role. Here are a few reasons that suppliers might have power: i) There are very few suppliers of a particular product a. Motorola. etc.can't do without it The supplying industry has a higher profitability than the buying industry As far as telecom industry is concerned there are very few suppliers in the market. The major software providers are TCS. If one supplier has a large enough impact to affect a company's margins and volumes. Wipro. etc. Some other suppliers in the industry are the suppliers of Optical fibre and Aluminium. Satyam etc.Comparative study of Market Analysis of Airtel and Vodafone 1. where suppliers can have edge over. Again one thing is noticeable that big giants like Reliance and Tata have their own software solution departments Page 23 . Micromax. Tata Indicom. Reliance Classic. Infosys. then it holds substantial power. Sony Ericsson. 1. Samsung. 2. some of them are Nokia.
There is a cut throat competition and a price war for the tariffs of the service provider.Comparative study of Market Analysis of Airtel and Vodafone 1. II) If substitutes are similar. if the price of coffee rises substantially. internet. Today the difference in the price of the of two products is marginal. etc. The market is witnessing M&A like the Bharti – Zain. For example. Some examples include: i) ii) iii) iv) v) Existing loyalty to major brands High fixed costs Scarcity of resources High costs of switching companies Government restrictions or legislation The Indian telecom sector offers unprecedented opportunities for foreign companies in various areas such as 3G. the more cutthroat competition there will be. value added services. which are leading to consolidations in the industry. Also with the availability of additional services like GPRS. a coffee drinker may switch over to a beverage like tea. Here are a few factors that can affect the threat of substitutes: I) The main issue is the similarity of substitutes. THREAT TO NEW ENTRANTS. video conferencing Page 24 . The easier it is for new companies to enter the industry. international long distance calls. it can be viewed in the same light as a new entrant. 1. Factors that can limit the threat of new entrants are known as barriers to entry. This sector also attracts FDI which has made it the third largest sector attracting FDI in the post liberalization era. SUBSTITUTE TO PRODUCT What is the likelihood that someone will switch to a competitive product or service? If the cost of switching is low. Virtual Private Network. then this poses a serious threat.
Comparative study of Market Analysis of Airtel and Vodafone etc. WEAKNESS: Mobile market is still inclined towards prepaid users. most notably 3G licensing.K. The mobile market plays host to a large number of strategic investors including Singapore’s SingTel. with the market benefiting from healthy degree of competition. OPPURTUNITIES: Page 25 . Demand for mobile Value Added Services is strong and expected to grow. The dominance of prepaid services has contributed to declining mobile average revenue per user (ARPU) levels. Japan’s NTT DoCoMo and Russia’s Sistema. SWOT ANALYSIS OF TELECOM SECTOR STRENGTHS: Strong mobile subscriber’s growth is continuing. In today’s scenario. there are consumers who are ready to change their service providers for a reduction in the tariffs. which poses a major threat to the companies. Etisalat from UAE.. the option of substitutes for the consumer is never ending. Vodafone from U. Disagreement between the regulator TRAI and government ministries has led to delayed policy implementation in a number of areas. Telecom Malaysia.
Comparative study of Market Analysis of Airtel and Vodafone
The government is currently considering recommendations made by TRAI to allow the operations of MVNO’s (Mobile Virtual Network Operator) in the mobile market. The government will cut license fees upto 33% for those operators whose service covers 95% of the residential area in a calling circle. There is an opportunity to cover the vast untapped rural market.
THREATS: Government plans to increase spectrum usage charges for telecom companies. Network capacity, particularly in the mobile market, could struggle to keep up with demand. Stiff competition in the market will make service providers difficult to retain customers.
Comparative study of Market Analysis of Airtel and Vodafone
Overview of Telecom Operators in India as per Market share:-
Comparative study of Market Analysis of Airtel and Vodafone
1. 2. 3. 4. 5.
Bharti Airtel Ltd. Reliance Communications Ltd. Vodafone Essar Ltd. BSNL Idea Cellular + Spice
Page 29 .Comparative study of Market Analysis of Airtel and Vodafone BHARTI AIRTEL LTD. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. Airtel digital TV. of whom 85. Airtel comes from Bharti Airtel Limited. Bharti Airtel is the largest wireless service provider in the country. Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service.619.461 use the Telemedia Services either for voice and/or broadband access delivered through DSL. They also offer an integrated suite of telecom solutions to their enterprise customers. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector. 2008.Mobile Services. All these services are rendered under a unified brand "Airtel". 2008. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) .733 subscribed to GSM services and 2. in addition to providing long distance connectivity both nationally and internationally. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles.270. Airtel Telemedia Services & Enterprise Services. based on the number of subscribers as of December 31. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers. The company served an aggregate of 88.650.194 customers as of December 31. All these services are provided under the Airtel brand. They have recently forayed into media by launching their DTH and IPTV Services.
Bharti Infratel owns 42% of Indus Towers Limited. Company shares are listed on The Stock Exchange. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. Mumbai (BSE) and The National Stock Exchange of India Limited (NSE). owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited.Comparative study of Market Analysis of Airtel and Vodafone The company also deploys. RELIANCE COMMUNICATIONS LTD. Page 30 .
Our constant endeavour is to achieve customer delight by enhancing the productivity of the enterprises and individuals we serve. by bestowing it in the hands of the common man at affordable rates. launched on 28 December 2002. They endeavour to further extend their efforts beyond the traditional value chain by developing and deploying complete telecom solutions for the entire spectrum of society. It marked the auspicious beginning of Dhirubhai’s dream of ushering in a digital revolution in India.000 route kilometers of a panIndia fibre optic backbone with high capacity. convergent (voice. and consulting. It includes broadband. coinciding with the joyous occasion of the late Dhirubhai Ambani’s 70th birthday. Page 31 .Comparative study of Market Analysis of Airtel and Vodafone Reliance Communications is the flagship company of the Anil Dhirubhai Ambani Group (ADAG) of companies. data and video) digital network and to offer services spanning the entire infocomm value chain. Reliance Mobile (formerly Reliance India Mobile). the company can proudly claim that they were instrumental in harnessing the true power of information and communication. it is India’s leading integrated telecommunication company with over 71million customers. Listed on the National Stock Exchange and the Bombay Stock Exchange. was among the initial initiatives of Reliance Communications. including infrastructure and services for enterprises as well as individuals.Reliance Communications started laying 60. It was established in the year 2004 as Reliance Infrastructure Developers Private Limited. applications. integrated (wireless and wireline). Their business encompasses a complete range of telecom services covering mobile and fixed line telephony. Today. national and international long distance services and data services along with an exhaustive range of value-added services and applications. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain.
The group has operations and investments in India. Energy. Vodafone Essar Ltd provides services like 2G. they offers postpaid connections activation. the Middle East. Vodafone has partnered with the Essar Group as its principal joint venture partner for the Indian market. The company is a joint venture of Essar Communication Holdings Ltd and the UK-based Vodafone Group. Vodafone has partnered with the Essar Group as their principal joint venture partner for the Indian market.Comparative study of Market Analysis of Airtel and Vodafone VODAFONE ESSAR LTD. service activation/deactivation.92 million customers**. and Projects. replacement Page 32 . It currently has equity interests in 27 countries across 5 continents and 40 partner networks with over 289 million proportionate customers worldwide. Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced operations in 1994 when its predecessor Hutchison Telecom acquired the cellular license for Mumbai.000 people worldwide. They are in the business of cellular telephony. prepaid SIM cards and recharge coupons customer sale. Vodafone Essar. Essar Global Limited (EGL) is a diversified business group spanning the manufacturing and services sectors of Steel. the Caribbean and South East Asia and employs 30. has been named the ‘Most Respected Telecom Company’. Africa. prepaid/postpaid postpaid SIM card tariff plan change. Communications. Vodafone is the world’s leading international mobile communications company. Power. the ‘Best Mobile Service in the country’ and the‘Most Creative and Most Effective Advertiser of the Year’. Over the years. Canada. Shipping & Logistics. which are based on 1800 Mhz and 900Mhz GSM digital technology. Vodafone Essar now has operations in 22 circles with over 65. under the Hutch brand. They offers voice and data services. In addition. USA. and query resolution.
85 per cent share of the subscriber base and 92 percent share in revenue terms.5 Lakhs villages.Comparative study of Market Analysis of Airtel and Vodafone upgradation. Dial-up.5 million Internet Customers who access Internet through various modes viz. has more than 17. Internet. BSNL is numero uno operator of India in all services in its license area. GSM Mobile. Carrier service. Within a span of five years it has become one of the largest public sector unit in India. Page 33 . Broadband. 480196 Rkm of OFC Cable.1 Million GSM Capacity. BSNL has more than 2.3 million line basic telephone capacity. The company offers vide ranging & most transparent tariff schemes designed to suite every customer. 7330 cities/towns and 5. CDMA mobile. Leased Line.e. IN Services etc. CellOne. It has about 47. and information on and subscription of value added services through stores. BSNL is the only service provider. formed in October. 2000. 4 million WLL capacity.1 million Basic Phone subscribers i. BSNL cellular service. more than 37382 fixed exchanges. mobile number change.8 million cellular customers. In basic services. VSAT. is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline. VoIP services. 63730 Rkm of Microwave Network connecting 602 Districts. 287 Satellite Stations. BSNL is miles ahead of its rivals. In fact there is no telecom operator in the country to beat its reach with its wide network giving services in every nook & corner of country and operates across India except Delhi & Mumbai. garnering 24 percent of all mobile users as its subscribers. with 35. MPLS-VPN. Bharat Sanchar Nigam Ltd. BHARAT SANCHAR NIGAM LTD.5 million WLL subscribers and 2. 20. making focused efforts and planned initiatives to bridge the Rural-Urban Digital Divide ICT sector. 18000 BTS. That means that almost every fourth mobile user in the country has a BSNL connection.
25. It has licenses to operate in 11 circles. The combined holding of the Aditya Birla Group companies in Idea stands at 98. Page 34 . India's first truly multinationalcorporation. The company has a customer base of over 17 million. Idea was the first to launch GPRS and EDGE in the country. The group operates in 25 countries.000 employees belonging to 25 nationalities. Group Talk. multi-protocol convergent IP infrastructure that provides convergent services like voice.6 million DataOne broadband custome IDEA CELLULAR LTD. Idea has received international recognition for its pathbreaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years.A brand known for many firsts. Background Tones. Kumar Mangalam Birla has been named the Chairman of the company. BSNL has set up a world class multi-gigabit. It is the first cellular company to launch music messaging with Cellular Jockey. + SPICE IDEA Cellular is a publicly listed company.Comparative study of Market Analysis of Airtel and Vodafone DIAS. Idea Cellular Ltd. Account Less Internet (CLI). At present there are 0. IDEA Cellular is part of the Aditya Birla Group. Mr. having listed on the Bombay Stock Exchange (BSE and the National Stock Exchange (NSE) in March 2007. and is anchored by over 1. BSNL has been adjudged as the NUMBER ONE ISP in the country. data and video through the same Backbone and Broadband Access Network. is India's leading GSM mobile services operator. a voiceportal with Say IDEA and a complete suite of mobile email Services.3 percent.
does not increasing geographic footprint only. Aircel began its outward expansion in 2005 and met with unprecedented Page 35 . 4.Comparative study of Market Analysis of Airtel and Vodafone The Indian telecommunications market for mobile services is divided into 22 "Service Areas" classified into "Metro". with Maxis Communications holding a majority stake of 74%. then drill deep instead of spreading thin. it also drills deep and successfully attempts to provide excellent network coverage in all its circles of operation BOTTOM FIVE COMPANIES 1. Category "A". the company's footprint idea is to first achieve critical mass. + Dishnet 2. 5. Category "B" and Category "C" service areas by the Government of India. BPL Mobile Communications Ltd. HFCL Infotel Ltd. it launched commercially in Chennai and quickly established itself as a market leader – a position it has held since. Shyam Telecom Ltd. In December 2003. Mahanagar Telephone Nigam Ltd. however. AIRCEL + DISHNET The Aircel Group is a joint venture between Maxis Communications Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India. These classifications are based principally on a Service Area's revenue generating potential Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for their many firsts. Aircel Cellular Ltd. (MTNL) 3. Aircel commenced operations in 1999 and became the leading mobile operator in Tamil Nadu within 18 months. IDEA is the only operator to launch General Packet Radio Service (GPRS) and EDGE in the country. IDEA has seen phenomenal growth since its inception.
of India for 13 new circles across India. Govt. 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. Maharashtra & Goa. expand the telecom network. Gujarat. Tamil Nadu. Delhi (the political capital) and Page 36 .Comparative study of Market Analysis of Airtel and Vodafone success in the Eastern frontier circles. Karnataka. With over 16 million customers in the country. These include Delhi (Metro). Andhra Pradesh. introduce new services and to raise revenue for telecom development needs of India's key metros. has revved up plans to become a full-fledged national operator by end of 2009. Mumbai (Metro). Aircel. MTNL Mahanagar Telephone Nigam Limited (MTNL) was set up in 1st April of the year 1986 by the Government of India to upgrade the quality of telecom services. Haryana. Kerala. UP (West) and UP (East). Aircel has won many awards and recognitions. the fastest growing telecom company in India. the company gained a foothold in 14 circles including Chennai. Andhra Pradesh. Kerala. Orissa. North East. Tele. Voice and Data gave Aircel the highest rating for overall customer satisfaction and network quality in 2006. Kolkata. Himachal Pradesh. Punjab. Bihar. Aircel emerged as the top mid-size utility company in Business world’s ‘List of Best MidSize Companies’in 2007. Assam.net recognized Aircel as the best regional operator in 2008. West Bengal. Rajasthan. Jammu & Kashmir. Additionally. It emerged a market leader in Assam and in the North Eastern provinces within 18 months of operations. Karnataka and Delhi. Madhya Pradesh. Till today.
MTNL as a company. During the year 1992. the company launched GSM Cellular Mobile service under the brand name Dolphin and in the same year MTNL also launched Wireless in Local Loop (WLL) Mobile services under the brand name Garuda. MTNL had introduced the Integrated Services Digital Network (ISDN) services in the period of 1996. the extreme level of information exchange. MTNL launched the country's first toll-free service in Delhi in the period of 1998. MTNL-STPI IT Services Ltd is a 50:50 Joint Venture between Software Technology Parks of India (STPI) and the company. State of the art training centre of the company 'CETTM' was commissioned in the year of 2004. MTNL bagged the award for excellence in cost reduction in the year 2004. over last nineteen years. First digital exchange world technology brought to India by the company during the year 1986. it gives multiplied benefits to telephone users. The company has also been in the forefront of technology induction by converting 100% of its telephone exchange network into the state-of-the-art digital mode. telematic and other like forms of communication (Internet). During the year 1999. grew rapidly by modernizing the network. To facilitate the clientele. During the year 2001. The Company established Wi-Fi & digital certification services in the identical year. wireless. Phone Plus services was offered by the company in the year 1988. and fault booking system ensuring round the clock service. a CD-ROM version of the telephone directory and an on-line directory enquiry through PC was introduced during the year 1997.Comparative study of Market Analysis of Airtel and Vodafone Mumbai (the business capital of India). The Page 37 . Apart from this IVRS (Interactive Voice Response System) like local assistance changed number information. telex. the company introduced Voice Mail Service. The Company introduced the broadband services under the brand name of 'TRI BAND' during the year 2005. data communication. The Company providing various types of telecommunication services including Telephone. MTNL brought in the most widely using service called Internet (Network of Networks). incorporating the State-of-the-art technologies and a customer friendly approach.
BPL Mobile Communications Limited was established in the year 1995 and it is presently operating in only in the city of Mumbai. Superior coverage and optimum sound clarity are the strengths of BPL Mobile. BPL Mobile offers high-class mobile service to its wide pool of Mumbai subscribers. billing performance. voice quality etc and was thus ranked first in the category of Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA) of mobile service providers. BPL Mobile Communications Limited has revolutionized the Indian mobile telecommunication industry. BPL MOBILE COMMUNICATIONS LTD. Further. BPL Mobile Communications Limited popularly known as BPL Mobile is an Indiabased telecommunication service providing company. the company partaking its all efforts in the same business area and MTNL wants to become a global player. Within a short span of time the subscriber base of BPL Mobile Communications Limited has reached the 1 million mark. To remain market leader in providing world class Telecom and IT related services at affordable prices. BPL Mobile Page 38 . it ranks very high on parameters like. BPL Mobile has gained tremendous popularity due to its competitive pricing of tariffs. BPL Mobile Communications Limited is an offshoot of the legendary business conglomerate ESSAR group. This gigantic mobile telecommunication company of India has grown in leaps and bounds and it offers seamless service to its customers spread across Mumbai. Further.Comparative study of Market Analysis of Airtel and Vodafone Company has restructured Millennium Telecom Ltd (MTL) as a Joint Venture company of MTNL and BSNL with 51% and 49% equity participation respectively. operating in Mumbai. customer satisfaction. also find a place in the Fortune 500' companies.
as part of Company's diversification and restructuring programme. CEO of the company. through the use of state-of-the-art technology and network and this includes use of unique network design. The products and services offered by BPL Mobile Communications Limited are as follows · Prepaid Connections · Postpaid Connections · Prepaid Recharge Coupons · Bill Payments · Value Added Services (VAS) · Service Inquiries · SIM Replacements · Handset Sales HFCL INFOTEL LTD. mobile browsing and Java based mobile phone games. Subramaniam. heads this leading telecommunication company of India. During 2002-03 the name of the Company changed to HFCL Infotel Ltd. HFCL Infotel Ltd ('transferor Company') a telecommunication Company operating in the Punjab Circle merged with the Page 39 . The Investment Trust of India (ITI) is managed by chairman and managing director B K Kothari. Camel Phase 2 Intelligent Network (IN) platform and GPRS facilitating ultra modern services like Multimedia Messaging Services (MMS).'46. Incorporated on 2 Aug.Comparative study of Market Analysis of Airtel and Vodafone Communications Limited provides its customers with world class mobile services. the Qualnet. S. Mr.
Finance. A wholly owned subsidiary. US. It has two subsidiaries -. The Company expanded its services to 125 cities/towns with 2. Fixed Line Telephoney.'94. industrial alcohol.47 lacs subscribers in Punjab.72 cr. ITI's business activities include sugar. petrochemicals. During 2003-04. to augment long-term working capital. for the above purpose. ITI Pioneer AMC has promoted Kothari Pioneer Mutual Fund. it came out with a rights issue of 21.Comparative study of Market Analysis of Airtel and Vodafone Company through a Scheme of Amalgamation and decided to hive off the business of Hire Purchase. The Company launched its Prepaid Mobile product and a complete range of innovative value Added Services and Data products were launched in May 2004.The Company's services namely. Page 40 . Connect Broadband Services Limited was formed on July 2004. firms as well as corporate bodies. The company is mainly engaged in hire purchase. Mobile Telephoney. Broadband Internet Access and Data Networking Access are offered under the brand name 'CONNECT'.ITI Pioneer AMC and ITI Capital Markets. by the introduction of DSL-high speed Internet product. Its clients include individuals. ITI Pioneer AMC Limited ceased to be a subsidiary of the company. etc. The company became the first service provider to have launched DSL services in the state of Punjab and Chandigarh. lease financing and investments. During 1997-98. The company is planning a venture into Video and Cable TV Services and making triple play services by an expansion into the neighbouring states of Punjab. During 2004-05. Leasing and Securities Trading by way of an outright sale with effect from 1st September 2002 to its wholly owned subsidiary 'Rajam Finance & Investments Company (India) Ltd' now renamed as 'The Investment Trust of India Ltd' Other group companies are Kothari Sugars and Chemicals and Madras Safe Deposit. During 1995-96. The Company’s holding in ITI Capital Market Ltd was sold to Kothari Pioneer AMC Ltd. In Sep.79 lac shares (premium: Rs 30) aggregating Rs 8. ITI has invested 55% of its capital in ITI Pioneer AMC and the remaining 45% has been subscribed to by Pioneering Management Corporation.
CDMA and CorDect. Shyam Telecom Manufacturing Ltd (formerly known as Shyam Telecom Infrastructure Projects Ltd). Shyam Telecom also took a strategic decision by de-subsidiarise Shyam International Ltd by which Shyam ACeS also got de-subsidiarised. Fiber in local loop. To concentrate mainly on its core activities i. The company currently manufactures Wireless in Local Loop. Africa. Ltd. Subsequently the company will be an investor in Shyam Telecom Manufacturing Limited (developer of wireless product for GSM & CDMA) and Shyam Telelink Ltd (basic telephony services in Rajasthan). Remote Energy Meeting Systems (REMS) & Supervisory control & data accusation systems (SCADA). The company has extended its basic telephony service to Jaipur and Jodhpur.wireline. Shyam's R&D wing is well-equipped with the latest and sophisticated testing instruments. Europe. Indian sub-continent and Asia-Pacific.e.Comparative study of Market Analysis of Airtel and Vodafone SHYAM TELECOM LTD. It has also acquired the entire capital of Shyam Telecom Manufacturing Ltd & Shyam Tel Singapore Pvt. CAD/CAM for design and assembly work besides having highly qualified engineers. Shyam Telecom Limited. The company's service covered all the three technologies in basic telephony . Shyam's R&D which is fully recognized by the Department of Science and Technology has been able to design new products. Digital Loop Carriers (DLC). Incorporated in 1992. investment in Telecom activities. Digital Subscriber Line (DSL) for Internet Access. a leading manufacturer of Telecom Equipment in India is the flagship company of the Shyam Group of India. Digital Radios. The company has an international presence in 27 countries spread over America. Spread Spectrum Radios. The expanding horizon of the telecom sector in India has given Shyam new vistas and avenues for growth and expansion. the company restructured its business and a result it has de-merged its manufacturing business to a wholly owned subsidiary viz. Page 41 .
Comparative study of Market Analysis of Airtel and Vodafone Comparative Study of Airtel and Vodafone in Telecom industry Page 42 .
Mumbai (BSE) and The National Stock Exchange of India Limited (NSE). Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. Bharti Infratel and Indus Towers are the two top providers of passive infrastructure services in India. Airtel Telemedia Services & Enterprise Services.194 customers as of December 31. of whom 85.Mobile Services. Bharti Infratel owns 42% of Indus Towers Limited. All these services are rendered under a unified brand "Airtel". Airtel comes from Bharti Airtel Limited. The company also deploys. Bharti Airtel is the largest wireless service provider in the country. They also offer an integrated suite of telecom solutions to their enterprise customers. The company served an aggregate of 88. The Bharti Group has a diverse business portfolio and has created global brands in the telecommunication sector.270. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) . Page 43 . Company shares are listed on The Stock Exchange.733 subscribed to GSM services and 2. in addition to providing long distance connectivity both nationally and internationally. India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. 2008. All these services are provided under the Airtel brand. owns and manages passive infrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Limited.619. based on the number of subscribers as of December 31.650. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched India's best Direct-to-Home (DTH) service.461 use the Telemedia Services either for voice and/or broadband access delivered through DSL. Airtel digital TV. 2008. The Enterprise services provide end-to-end telecom solutions to corporate customers and national & international long distance services to carriers.Comparative study of Market Analysis of Airtel and Vodafone Airtel Company profile Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. They have recently forayed into media by launching their DTH and IPTV Services.
We will always trust and respect each other.Comparative study of Market Analysis of Airtel and Vodafone Our vision & promise By 2015 airtel will be the most loved brand. " Enriching lives means putting the customer at the heart of everything we do. Innovative products and services. We will work together through a process of continuous improvement . Cost efficiency. Values We will always put our customers first. We will meet their needs based on our deep understanding of their ambitions. innovation. Only then will we be thought of as exciting. We will respect our associates as we respect each other. Page 44 . wherever they are. enriching the lives of millions." Mission We will meet the mobile communication needs of our customers through : Error-free service delivery. on their side and a truly world class company. By having this focus we will enrich our own lives and those of our other key stakeholders.
Comparative study of Market Analysis of Airtel and Vodafone THE KEY PRODUCTS/SERVICES OFFERED BY BHARTI AIRTEL :1. WIRELESS INTERNET : Bharti Airtel has an easy to access Airtel usb modem for an instant internet connection It provides with a wide range of prepaid and postpaid plans available as per customer needs The company has most widespread network in the country Data card is available from Rs.49 to Rs. the company has Shah rukh khan the brand ambassador 2. 4. 3. TELE SERVICES : Bharti Airtel provides Prepaid and postpaid services for both mobile phones and fixed land lines users The company charges Nominal tariff rates to its users in all the circles where it provides service Bharti Airtel also provides gprs services to the gprs unabled handsets Airtel also provides Wireless solution in blackberry and iphone As far as advertising is concerned. DTH SERVICES : Airtel digital TV is a satellite television service It offers additional benefit like TV recorder Page 45 .999/month (installation cost Rs.2999) 3. 2. TELE SERVICES WIRELESS INTERNET DTH SERVICES ENTERPRISE SERVICES 1.
345/month (Installation Rs.Comparative study of Market Analysis of Airtel and Vodafone Tariffs from Rs.1490 – Rs. ENTERPRISE SERVICES : 1st ISP (Internet service provider) in India It provides end to end telecom solutions to corporate customers National and international long distance services to ‘’carriers’’ (A company authorized by regulatory agencies to operate a telecommunication system) Page 46 .4290) Kareena Kapoor and Saif Ali Khan are the brand ambassadors which has helped a lot to the company to generate sales and have a competitive stand in the DTH market 4.145 to Rs.
IT infrastructure.5%+ for FY Mar. Nokia and Sing Tel Pan India presence Strong financials with increase in NP by 22%+ and Sales by 4.Comparative study of Market Analysis of Airtel and Vodafone SWOT ANALYSIS OF BHARTI AIRTEL STRENGTHS More than 130mn customers base Business has access to knowledge and technology as it holds strategic alliance with Sony-Ericsson.density is 52%. still low as compared to developed economies Increase in subscribers base and global wide spread with Bharti – Zain acquisition THREATS Bharti Airtel is India – centric Intense competition among Indian markets Changing pace of global telecommunication industry which impacted the decision of purchase of MTN indirectly opening doors for the rivals (Reliance comm. last mile connectivity of broadband operations. political and regulatory risks OPPURTUNITIES Bharti infratel can cut down cost in vast untapped rural and semi urban areas Current tale . 2010 WEAKNESS Outsourcing of telecom and IT networks. BPO services.) Financial Analysis of Bharti Airtel Page 47 . Inter – city optic fibre cables Risk associated with Zain acquisition like lower profitability.
86 28.272.24 2.893.044.00 13.13 36.024.97 1.13 7.076.74 1.44 7.81 16.36 5.952.86 3.030.81 1.18 5.62 Mar '09 1.36 537.13 27.64 5.56 28.751.92 41.550.82 705.27 266.08 10.21 2.39 0.40 14.54 105.13 0.922.00 19.345.10 Mar '10 12 mths 12 mths 12 mths 12 mths 12 mths Application Of Funds Gross Block Less: Accum.86 2.36 2.98 54.83 Mar '08 1.713.602.44 3.951.443.16 10.86 13.737.437.63 0.811.357.86 9.776.00 34.961.13 11.842.38 1.70 17.25 658.013.12 761.76 62.22 0.616.37 1.103.932.042.898.02 541.777.97 51. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.933.83 1.17 201. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets 17. Cr.91 1.42 6.65 35.8 5 Mar '06 1.67 -5.45 5.509.266.898.773.52 239.115.999.75 12.705.00 12.81 0.09 0.in Rs.61 3.49 5.00 12.08 Mar '07 1.25 719.00 -3.594.93 26.160.8 8 2.276.92 7.Comparative study of Market Analysis of Airtel and Vodafone Balance Sheet of Bharti Airtel Mar '06 ------------------.400.63 0.13 20.43 4.085.46 200.338.00 5.241.49 52.895.00 0.29 12.34 25.895.88 12.44 2.627.00 25.87 0.796.00 6.56 2.65 9.72 1.204.034.754.341.93 30.7 4 4.11 1.42 2.661.466.94 37.418.11 6.643.89 2.91 Page 48 .809.141.24 1.88 1.517.95 14.305. ------------------Mar '07 Mar '08 Mar '09 Mar '10 12 mths 12 mths 12 mths 12 mths 12 mths Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 1.937.650.26 44.375.92 4.566.92 6.77 1.19 2.18 39.104.897.944.187.83 2.24 116.32 27.30 19.82 47.85 56.310.893.84 11.006.822.214.171.124 16.283.93 7.34 26.212.73 7.08 8.09 0.898.776.81 1.00 9.89 -4.05 153.35 5.232.570.765.63 2.13 302.439.15 2.33 -5.515.406.74 15.000.295.253.38 2.00 9.898.735.098.466.897.70 12.77 186.635.362.49 634.80 -3.82 2.93 1.863.91 57.67 11.65 2.038.225.00 18.
50 96.42 1.20 3.07 6.16 0.07 7.14 Mar '07 42.118.09 12 mths 12 mths 12 mths 12 mths 12 mths Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items 4.50 535.00 15.16 282.038.268.54 1.482.28 0.61 0.084.107.272.34 4.00 1.621.51 236.2 2 17.627.70 1.09 35.12 Contingent Liabilities Book Value (Rs) 4.20 26.432.82 8.04 9.260.104.385.68 11.35 14.828.31 21.851.61 105.134.609.30 137.41 10.615.27 4.94 0.46 -34.693.34 15.29 Mar '10 11.00 1.67 13.801.837.00 11.703.761.740.20 34.46 0.80 4.45 393.94 -13.776.99 9.43 10.24 Profit & Loss account of Bharti Airtel Mar '06 ------------------.62 30.890.89 -269.00 34.85 314.662.608.Comparative study of Market Analysis of Airtel and Vodafone Miscellaneous Expenses Total Assets 7.45 3.966.90 0.140.07 17.48 444.409.8 4 2.25 145.66 11.80 283.29 32.048.67 -46.804.401.297.11 0.71 7.in Rs.54 8.754.882.71 Mar '06 52.58 266.065.77 3.1 2 26.00 35.261.00 1.81 3.357.166.1 2 0.215.811.84 11.37 -60.01 5.93 Mar '09 278.048.57 4.13 9.339.75 Mar '08 286. Cr.15 13.84 0.16 11.206.92 10.353.75 5.25 20.141.04 60.084.39 2.00 1.93 434.97 17.206.09 2.766.30 25.32 0.59 106.874.28 178.259.953.00 10.68 1.761.00 25.54 7.62 0.00 41.08 207.94 12.592.86 35. ------------------Mar '07 Mar '08 Mar '09 Mar '10 12 mths 12 mths 12 mths 12 mths 12 mths Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 53.02 3.19 7.519.076.39 -293.940.851.32 -1.00 17.373.72 0.892.95 5.88 7.017.987.66 16.84 10.299.397.41 6.921.609.259.37 0.34 127.11 104.366.53 -50.78 Page 49 .91 36.64 7.00 734.00 7.07 0.54 0.791.01 3.73 2.56 0.856.030.34 38.05 25.
Comparative study of Market Analysis of Airtel and Vodafone PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) 18.53 793.00 -21.43 780.00 69.28 10.71 384.47 502.25 12692.7 9 10.652.16 10.in Rs.00 60.286.61 273.88 341.71 18.15 21.65 64.00 -56.91 566.00 36.979.95 -7975.00 379.00 379.03 307.00 0.43 6.19 15.35 789.00 96.329.68 2.20 -5000.15 0.84 20.79 4.80 4547.00 286.79 64.32 -448.63 -10601.03 -290.153.00 0.13 473.24 2.15 -10894.30 24.00 -38.00 106.982.23 10.743.66 -2539.62 0.34 21.78 7.064.602.53 Key Financial Ratios of Bharti Airtel ------------------.46 6972.00 0.52 10.033.08 10699.37 8107. ------------------- Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) 10.87 9.26 376.00 0.34 18.00 1.65 Page 50 .00 2.41 898. Cr.55 Cash Flow of Bharti Airtel Mar '06 ------------------.90 0.38 -672.40 40.77 503.08 7.426.27 0.568.00 0.in Rs.00 4.00 0.54 10459.01 37.79 20.98 0.959.84 0.975.938.32 10.088.52 321.85 -11648.14 307.00 8.00 6.00 145.177.35 -76.05 340.244.70 632.012.31 790.43 4601.50 5.82 20.879.56 0.00 0. Cr.00 38.75 1.07 32.54 11853. ------------------Mar '07 Mar '08 Mar '09 Mar '10 12 mths 12 mths 12 mths 12 mths 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 2285.551.94 8161.19 18.
37 28.72 0.47 0.33 0.14 0.40 28.06 1.73 0.01 145.45 28.05 23.30 1.43 0.33 0.98 -42.17 60.05 0.69 0.52 0.41 -36.96 22.18 82.31 27.42 10.16 49.99 27.35 14.47 -7.37 121.75 5.83 12.65 0.14 49.73 83.30 1.35 0.74 125.34 106.44 0.77 84.22 16.35 28.29 -6.57 634.25 35.04 28.47 36.77 547.18 29.36 23.33 36.05 15.36 -113.02 29.49 5.03 634.12 35.15 35.83 1.74 29.57 0.23 60.72 1.82 0.03 1.36 10.03 38.75 1.27 0.84 -6.52 12.36 59.45 0.53 179.30 8.68 0.28 453.15 0.47 0.61 135.65 0.77 25.83 41.57 12.307.09 24.26 36.93 26.18 -82.26 22.11 82.93 0.47 0.06 35.57 31.45 0.16 -7.60 46.06 1.94 32.25 24.51 93.Comparative study of Market Analysis of Airtel and Vodafone Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios 0.26 0.79 23.72 -0.86 23.74 27.96 36.47 27.82 0.09 1.15 6.04 106.52 38.27 96.00 1.65 17.25 26.28 0.00 0.00 -0.36 26.64 82.65 453.78 82.14 11.55 0.30 0.99 23.65 27.86 25.78 29.78 547.38 0.95 30.08 28.01 39.06 12.88 -0.12 29.13 34.46 22.24 96.61 0.31 373.08 23.49 Page 51 .64 48.31 0.74 145.80 20.78 -6.307.03 23.47 26.14 31.88 0.75 -1.28 30.35 35.13 33.78 373.88 82.28 0.46 29.76 0.63 85.70 94.80 17.57 17.58 22.36 21.33 27.08 38.58 28.28 40.03 -1.
text.79 145.61 4.48 0. It was the biggest deal in the Indian Page 52 .22 96. picture and video messaging.71 21.62 38. including voice calls.99 95.34 40. the world's largest telecom company in terms of revenue.00 100. and other data services.00 0. internet access. Asia Pacific and the United States through the Company's subsidiary undertakings.00 1.00 100.50 0. Hutchison Essar Ltd.71 3.73 3.78 96. Africa. Vodafone Plc (Vodafone) made a major foray into the Indian telecom market by acquiring a 67 percent stake in the Indian telecom company.Comparative study of Market Analysis of Airtel and Vodafone Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times --100. chosen by the company to "reflect the provision of voice and data services over mobile phones.24 Vodafone Company profile Vodafone is a world leader in providing a wide range of communications services. the Middle East.90 106.27 60.00 0.66 5.82 96. joint ventures.01 24. “The name Vodafone comes from Voice data one.00 100. associated undertakings & investment.19 32. It has significant presence in Europe.82 --100. through a deal with the Hong Kong-based Hutchison Telecommunication International Ltd.” In the year 2007.40 Mar '06 Mar '07 Mar '08 Mar '09 Mar '10 Earnings Per Share Book Value 10.34 --100.28 94.
77 million customers. spend less and always stay connected. PCOs & mobile phones from over 100 countries. helping individuals. helping individuals.Comparative study of Market Analysis of Airtel and Vodafone telecom market. making it the most lucrative market for global telecom companies. The company now has operations across the country with over 113. Vodafone Essar is the Indian subsidiary of Vodafone Group 67% and Essar Group33%. The current CEO of Vodafone is Mr. But it still had low penetration rates. It is the second largest mobile phone operator in terms of revenue behind Bharti Airtel and third largest in terms of customers. Vision: Our Vision is to be the world’s mobile communication leader – enriching customers’ lives. Mission: “The Vodafone mission is to be the communications leader in an increasingly connected world – enriching customers’ lives. So talk more. businesses and communities is more connected by delivering their total communication needs. In 2007. • Home Calling Cards Vodafone Home Calling Card is a Pre-paid calling card that allows one to make calls from landlines. businesses and communities be more connected in a mobile world. Vitoria Colao. And helps save up to 90% as compared to International Roaming charges. India had emerged as the fastest growing telecom market in the world outpacing China.” PRODUCTS AND SERVICES PRODUCTS • Post-paid Services • Pre-paid Services • Magic Box Handsets • World Calling Cards World Calling Card from Vodafone is a Pre-paid long distance calling card that one can use with their Vodafone Prepaid and Post-paid mobile phones to make ISD & STD calls. Vodafone's main motive of going in for the deal was its strategy of expanding into emerging and high growth markets like India. • Handy phone Page 53 .
including low call rates. One can make it theirs for Rs 1999. SERVICES • • • • • • • • • • • • • • Tunes & downloads Entertainment Devotional Sports News & Updates Call Management Services Astrology Finance Travel Mail. messaging & more Dial in Services Bill Info RE-BRANDING STRATEGIES – Hutch to Vodafone mobile services with GSM technology Page 54 . And Vodafone Handy phone isn’t that expensive either.Comparative study of Market Analysis of Airtel and Vodafone Vodafone Handy phone is a landline that’s loaded with all the features of a cell phone .
Sharing of network infrastructure Leading presence in India Brand value built by delivering a superior. Vodafone’s customer strategy endeavors to ensure that customers’ needs are at the core of all products and services.Comparative study of Market Analysis of Airtel and Vodafone • • • • • • • fixed-line telephone services Universal Internetworking VoIP (Voice over Internet Protocol) Interactive Television Visual Communication Broadband Portal Telecommunity SWOT ANALYSIS Strengths • • • • • • • • Strong international presence and brand recognition Well-defined cost reduction initiatives. managed outsourcing Stable operating profit The India operations is backed by its huge expertise and diversified geographical portfolio. consistent and differentiated customer experience. smart phones segment Advertising campaigns do not have the emotional connect to the lower income classes and rural customers Page 55 . Weakness • • • • Benefits of investment in technology are not realized Little penetration in rural market Have not entered broadband services.
data and fixed broadband services through multiple solutions and supporting technologies to deliver on its total communications strategy. messaging. Threats • • • • • • Existing competitive market Entry of many new players in immediate future Government regulations Change in technology Change in consumer preference Adverse macroeconomic conditions like recession and economic slow down Page 56 . handset capabilities and the mobilisation of internet services. The advancements in 3G networks and download speeds.Comparative study of Market Analysis of Airtel and Vodafone • Perception of customers in lower segment that Vodafone is a costly brand Opportunities • • • • • • Focus on capturing rural sector through cost reductions improving returns Research and development of new mobile technologies Mobile Broadband Improve accessibility to wide range of customers Vodafone can offer voice. could contribute to an acceleration of data services usage growth.
0 -14853.0 n/a n/a 2010 2009 2008 2007 2006 Balance Sheet Year Ended 31 March £ millions Intangible Assets 74258.0 -2383.0 n/a n/a 29350.0 -1300.0 -4806.0 -823.0 6756.0 -767.0 4738.0 7171.0 56272.0 n/a n/a 41017.0 70331.0 8618.0 -16512.0 -4292.0 -796.0 2010 2009 2008 2007 2006 Page 57 .0 74938.0 -1624.0 4189.0 1766.0 n/a n/a 31104.0 -17233.0 3080.Comparative study of Market Analysis of Airtel and Vodafone Financial Analysis of Vodafone Profit & Loss Year Ended 31 March £ millions Turnover Operating Profit Net Interest Profit Before Tax Profit After Tax Total Dividend Retained Profit / Loss 44472.0 9001.0 69118.0 n/a n/a 35478.0 8674.
0 429.0 658.84 5.0 -85253.90 49 Page 58 .0 67067.51 21 28 1.11 -6 8.0 -1572.00 12.0 686.0 n/a 1699.50 9.0 19541.0 13660.0 n/a 4153.00 11 2006 -27.0 1053.0 n/a 165829.0 Key Figures Year Ended 31 March Earings Per Share Basic (p) Earings Per Share Diluted (p) Earings Per Share Adjusted (p) Earnings Per Share Growth (%) Total Dividend (p) Operating Margin (%) ROCE (%) Dividend Cover Dividend Yield Price / Earnings Ratio Dividend Per Share Growth (%) 2010 16.0 85312.Comparative study of Market Analysis of Airtel and Vodafone Tangible Assets Fixed Investments Total Fixed Assets Stocks Debtors Cash at Bank and in Hand Total Assets Creditors Amount Within 1 year Creditors Amount After 1 year Total Liabilities Net Assets Net Current Assets Called Up Share Capital Share Premium Account Other Reserves Profit and Loss Account Shareholders Funds Minority Interests 20642.50 12.0 n/a 4182.0 104576.0 29912.30 7.21 6.0 66175.0 n/a 4878.0 n/a 4423.0 13444.0 26102.0 78043.0 43572.0 112907.77 3 10 2.0 118546.0 n/a 7481.36 16.0 29403.56 12.0 25316.66 10.0 -81980.0 412.0 -1385.0 127270.31 11 16 1.0 96804.0 42934.56 12 7.67 5.0 109617.0 43968.40 7 2009 5.0 90381.0 108614.0 417.26 11 6.11 13 6.0 126738.94 -8.0 16735.0 139670.0 90810.00 11.67 5.0 n/a 4172.76 -14 -2 1.0 42324.0 52444.0 1051.0 67922.0 152699.0 -113.0 96172.10 3 2008 12.94 11.0 31535.0 n/a 4165.0 433.0 n/a 4630.81 17.0 86162.66 -27.0 297.0 -79655.0 50799.0 41426.0 226.00 12.17 37 7.0 41775.0 76471.00 11 2007 -8.67 5.94 5.0 85425.07 -56 -32 1.0 84777.0 749.0 n/a 165883.0 19250.0 67293.0 142766.0 31721.0 156985.0 -83820.0 288.0 -67356.0 22903.44 16.0 n/a 4153.
Secondary data has been used to support primary data wherever needed.Comparative study of Market Analysis of Airtel and Vodafone RESEARCH METHODOLOGY Achieving accuracy in any research requires a deep study regarding the subject. The research methodology adopted is basically based on primary data via which the most recent and accurate piece of first hand information could be collected. Type of Research Methodology EXPLORATORY: TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE. The prime objective of the project is to compare Airtel with the existing competitor (Vodafone) in the market and the impact of WLL on Airtel. THE OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF Page 59 .
Lastly observation method has been continuous with the questionnaire method.. INDUSTRY REPORTS. COMPANY’S INTERNET SITE. ARE AS FOLLOW: BOOKS. DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION. SOME OTHER RELEVANT STUDY MATERIAL AND WEBSITES. QUESTIONNAIRE SURVEY: IN THE STUDIES A QUESTIONNAIRE IS PREPARED. WHICH HAS BEEN USED TO CARRY OUT THIS STUDY. Further direct interview method. NEWSPAPERS. PRIMARY DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIRST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER. SECONDARY DATA: SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY COLLECTED . THE QUESTIONNAIRE CONSISTS OF 10 QUESTIONS. JOURNALS.THE SECONDARY DATA. Page 60 . FOR THIS PURPOSE THE INFORMATION PROVED USEFUL FOR GIVING RIGHT SUGGESTION TO THE COMPANY. as one continuously observes the surrounding environment he works in.Comparative study of Market Analysis of Airtel and Vodafone ACTION TO SOLVE IT.face formal interview was taken. MAGAZINES. PRIMARY DATA SECONDARY DATA Primary data was collected using the following techniques Questionnaire Method Direct Interview Method and Observation Method The main tool used was. the questionnaire method. where a face-to.
Allows for employee participation. MARKETS. PERSONAL INTERVIEW THROUGH SELF ADMINISTERED SURVEY WAS DONE TO COLLECT THE DATA. SAMPLE DESIGN CONSISTS OF RANDOM SAMPLING. Does not require trained interviewer. Can get a large amount of information in a short time. CANOPIES. SAMPLE SIZE: . COLD CALLING. ETC. Advantages of questionnaire method: Quick and easy to administer.THE QUESTIONNAIRE WAS FORMULATED BY KEEP IN MIND THE FOLLOWING POINTS: • • • • GIVING THE RESPONDENTS. RESEARCH INSTRUMENT: QUESTIONNAIRE:. GIVING INSTRUCTIONS AS TO WHAT IS NEEDED. INDUCING THE RESPONDENTS TO CO-OPERATE. THAT WAS ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED.103 PEOPLE METHOD OF COLLECTION: FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION IN WHICH THE QUESTIONNAIRES WERE FILED BY THE INTERVIEWER. Page 61 .Comparative study of Market Analysis of Airtel and Vodafone SAMPLE UNIT: . MARKET RESEARCH WAS UNDERTAKEN. CLEAR COMPREHENSION OF THE QUESTION. WHICH INCLUDED. IDENTIFYING THE NEEDS TO BE KNOWN. THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF CUSTOMERS DURING THE ACTIVITIES PERFORMED.Mumbai.
May be difficult to construct. Disadvantages of questionnaire method: Quality of information related to the quality of the questionnaire. the questionnaire was a combination of both open ended and closed ended questions. To these 103 people a questionnaire was given. Scope of the study To conduct this research the target population was the mobile users of Airtel and Vodafone. Responses may be incomplete. Page 62 . Often needs follow-up interview or observation. May have low response rate. Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. Sample size of 103 persons was taken. • • • Targeted geographic area of Mumbai.Comparative study of Market Analysis of Airtel and Vodafone Relatively less expensive. who are using GSM Technology.
2. employee who has aged between 17-25 yrs and having 54%. And second is students who hold 33% in diagram. the Employee hold 50% means employee who are graduate and post graduate and they also have market information about their operators. Page 63 . Occupation:As above diagram show you that the maximum number of mobile as per their Occupation. Educational qualification:3. In which age group do you fall? As above diagram show you that the maximum numbers of mobile is used by students.Comparative study of Market Analysis of Airtel and Vodafone Data Analysis And Interpretation 1.
Which telecom services do you posses? As we can see that maximum numbers of customers are using Vodafone as per my survey and 2nd is others means users of MTNL and BSNL. 7.150-350 on their mobile per month. Which services is more helpful to you while using telecom service? As we can see in diagram that the numbers of customers look for low call rates from their service operator and that why call rates services hold the 49% in the services providing operator. And also 1paise/sms.Comparative study of Market Analysis of Airtel and Vodafone 4. 6. Your monthly expenses on mobile? The maximum customers spent only Rs. And bahrti airtel hold the 3rd position in diagram. And Rs. And then 1-2yrs hold the position in diagram. If you are asked to select among the following as first preference which would you choose? As we can see in diagram that Airtel is lacking to satisfy the customers and Vodafone holds the maximum of first preference from customers as Page 64 . 5. How long you have been using the services of current telecom operator? Customers who are spending more time on mobile is more than two years. 8.350-700 holds 27% & they hold 2nd position in diagram. And low call rates means as now all operator are providing 1paise/second then 10paise/minutes. Means customers are very much clear about their needs and company also satisfying their needs as they used particular operator more than 2 yrs.
Customer satisfaction with service dimensions In your opinion. mms. What factors influences your choice? The customers looks for offers from operators as diagram show.Comparative study of Market Analysis of Airtel and Vodafone they satisfy the needs of them and also providing their services nearby their place. how does the service quality of your network meet your expectation in terms of the following dimensions? Dimensions Reliability and responsiveness R1 R2 Delivery of sms. sales person and others. 9. But as per my survey I came to know that reliance user are influenced by Brand Image. 10. voice messages and other services Customer care and handling compliant Technical qualities T1 Network coverage Economy(how economical is the used of your telecom service in terms of) E1 E2 Recharge voucher Call charge per minute or second. Poor neutral good Page 65 . Who are the persons that influenced you to buy a particular telecom operator? The maximum numbers of people are influenced by friends 51% rather than parents.
Comparative study of Market Analysis of Airtel and Vodafone Reliability and responsiveness Dimensions R1:.Customer care and handling compliant.Delivery of sms. Operators Airtel Vodafone Aircel Tata Docomo Reliance Loop Idea Others(Bsnl And Mtnl) Poor 1 2 2 1 1 4 Neutral 8 9 2 1 4 5 4 8 Good 8 12 1 2 6 6 9 7 Technical Dimensions T1:. mms.Network coverage Operators Airtel Vodafone Aircel Tata Docomo Reliance Loop Idea Others (Bsnl And mtnl) Poor 1 1 2 2 1 3 Neutral 12 4 2 2 1 6 4 6 Good 7 18 1 1 9 7 3 10 Economic dimensions Page 66 . voice messages and other services Operators Airtel Vodafone Aircel Tata Docomo Reliance Loop Idea Others(Bsnl and Mtnl) Poor Neutral 5 4 1 2 5 9 3 7 Good 12 15 2 2 5 13 3 10 1 2 1 1 R2:.
Price should be as competitive as other company maintains as loop has introduced ‘Dus kaa gang’ And hello tunes packages.Recharge voucher Operators Airtel Vodafone Aircel Tata Docomo Reliance Loop Idea Others (Bsnl and Mtnl) Poor 1 1 2 2 2 2 Neutral 5 7 1 3 5 2 4 7 Good 15 15 2 1 5 10 3 8 E2:. in terms of quality. Its demand should be increased. Page 67 . to attract users.Comparative study of Market Analysis of Airtel and Vodafone E1:.Call charge per minute or second. Catalogues should be distributed among customers. Operators Airtel Vodafone Aircel Tata Docomo Reliance Loop Idea Other(Bsnl and Mtnl) Poor 1 1 2 2 Neutral 9 7 2 4 2 5 4 Good 10 16 1 8 9 7 13 Suggestions Modification and innovative things must be brought in AIRTEL. contests and coupons must be given to retailers as well as customers and prospects as Vodafone was Giving offers for post-paid users before like Bags. watches etc. Free samples should be distributed among the prospects. Company must undertake extensive promotional activities like advertisements must be released in different Medias to create brand awareness. Sales promotion tools like gifts.
• • Page 68 . Recommendations • The company should make its marketing strategy flexible enough in order to face competition. The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company.Comparative study of Market Analysis of Airtel and Vodafone Distribution of new connection should be in reach of customer pocket. The company should offers such rate in the market so that it may able to catch a bigger market share and it should be able to compete with the local traders and commission agents while having a brand name.
The network of Airtel is very consents areas for them as the users of Airtel say that Network is not proper sometimes there is connection error. It is the time not only to survive but to sustain in the market for a long time. So it can easily available to customers. The maximum no.Comparative study of Market Analysis of Airtel and Vodafone Conclusion • After analyzing the findings of the research. As they are the market leader in particular industry Airtel should used some new strategy with new products and services and should also market their products at every retailers shops. of people who use the mobile is in the age group of 17 to 25. I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned and also network. From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti Airtel has to more work in every field of communication business. Page 69 • • • .
Very seriously and update its own strategies from time to time and when the need arises.etc. promotion. Airtel has to take Vodafone. Questionnaire Name:Gender:. In which age group do you fall? (a) Below 17 years O (b) 17-25 yrs O (c)25-40 yrs O (d) above 40 yrs O female O 2. Educational qualification:(a) Upto 12th O (b) graduation O (c) post-graduation O (d) others O Page 70 . For this Airtel has to work on its all marketing strategies. brand image.Comparative study of Market Analysis of Airtel and Vodafone • • . marketing.Male O Contact No:_____________________________________________________________________________________ 1.
Occupation:(a)Student Others O O (b) Business O (c) Professional O (d) Employee O (e) 4.Comparative study of Market Analysis of Airtel and Vodafone 3. Which services is more helpful to you while using telecom service? (a)Call rates O O (b) Sms service O (c) Value added service O (d) Network 7. How long you have been using the services of current telecom operator? (a) Less than 2 month yrs O.150-350 O (c) Rs. Who are the persons that influenced you to buy a particular telecom operator? Page 71 . Your monthly expenses on mobile? (a)Less than Rs. O (b) 6-8 month O (c) 1-2 yrs O (d) more than 2 8. Which telecom services do you posses? (a) Airtel O (f)Idea O O (b) Aircel (g) Vodafone O O (c) Tata Docomo ( h)Others O O (d) Reliance O (e)Bpl 5.700 O O (b) Rs.350-700 O (d) Above 6. If you are asked to select among the following as first preference which would you choose? (a)Airtel O (f) Vodafone O (b)Tata Docomo O (g)Idea O O (c)Aircel O O (d)Reliance O (e)Bpl (h) Others 9.150 Rs.
mms. What factors influences your choice? (a) Brand image O (b) Offers (d)Advertisement O O (c) Value added services O Customer satisfaction with service dimensions In your opinion.Comparative study of Market Analysis of Airtel and Vodafone (a) Parents O Others O (b) Friends O (c) Sales Person O (d) You O (e) 10.com Page 72 . Poor neutral good Bibliography www. how does the service quality of your network meet your expectation in terms of the following dimensions? Dimensions Reliability and responsiveness R1 R2 Delivery of sms.vodafone. voice messages and other services Customer care and handling compliant Technical qualities T1 Network coverage Economy(how economical is the used of your telecom service in terms of) E1 E2 Recharge voucher Call charge per minute or second.
com www.money.indianindustry.airtel.com Page 73 .Comparative study of Market Analysis of Airtel and Vodafone www.com www.wikipedheia.control.in www.