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The most precious moments are those when we get an opportunity to remember and thank
everyone who has in some way or the other motivated and facilitated us to achieve our goals.

First of all I thank to GOD ALMIGHTY ALLAH for giving me power to pen down the term
paper in its present shape. I thank the entire teaching staff especially . c   c

 ccfor sharing his valuable knowledge with us & for providing his able guidance and
support. I also thank to my classmate who every time helped me out and encouraged me for
carrying out the task.

I fall short of words to thank my family, who stood beside me while completion of my task.
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ccccccccccccÒ ODUCT DEVELOÒMENT
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cccccccccccccccAnalyzing customer, cost and competitors
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‡harti Airtel is India¶s no.1 reliable network, serving at around 88 million voice & data user
subscribers. The need of research study is to study about ‡harti Airtel, understanding its
various strategies that keep it ahead of all other competitors like Vodaphone, Idea, eliance
etc.. This study is undergone through various steps of research project. The method used for
the research project are- Group Discussion, internet browsing, different graphs & chart study
etc. From this analysis we found that ‡harti Airtel has the largest market share due to its
calling plans, Tariff plans and other strategies.

 c Telecom giant ‡harti Airtel is the flagship company of ‡harti Enterprises.c


 c "# c  , formerly known as "# c!  c 
 (‡TVL).
 c India's largest and world's third largest cellular service provider.
 c More than 88 million subscribers as of 31 December 2008.
c
 c provides mobile & fixed wireless services using GSM technology across 23
telecom circles.
 c Largest Telecom Company listed on Indian Stock Exchanges.
 c The company also has a submarine cable landing station at Chennai, which connects the
submarine cable connecting Chennai and Singapore.

c
c

INT ODUCTION

AI TEL is India¶s leading providers of telecommunication services with a nationwide


presence in all the 23 licensed jurisdictions (also known as Telecom Circles). Airtel served an
aggregate of 88,270,194 customers as of December 31, 2008; of who 85,650,733 subscribe to
its GSM services and 2,619,461 use its Telemedia Services either for voice and/or broadband
access delivered through DSL. Airtel is the largest wireless service provider in the country,
based on the number of subscribers as of December 31, 2008. Airtel also offer an integrated
suite of telecom solutions to its enterprise customers, in addition to providing long distance
connectivity both nationally and internationally. Airtel had recently forayed into media by
launching DTH and IÒTV Services. All these services are rendered under a unified brand
³Airtel´. The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary ‡harti Infratel Limited. ‡harti Infratel owns 42% of
Indus Towers Limited. ‡harti Infratel and Indus Towers are the two top providers of passive
infrastructure services in India.

Successful businesses have extensive knowledge about their customers and competitors.
Getting accurate and specific information about your customers and competitors is a critical
first step in market investigation and development of a marketing plan. Accurate market
assessment and development of an effective plan is critical to the success of both new and
existing businesses. The market impacts and directs all aspects of the company's activities
and ultimately will lead to success or failure of the business.

In developing a market plan, your primary functions are to understand the needs and desires
of your customer select or develop a product or service that will meet customer needs,
develop promotional material that will make the customer aware, and ensure product or
service delivery.

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’c To find out the products offered by Airtelc
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’c To find out the services offered by Airtelc
c
’c To analysis the marketing strategies of Airtelc
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’c To analysis the promotion of products of Airtelc
c
’c To find the customer satisfaction of Airtelc
c
’c To analysis the market share of Airtelc
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I have used secondary source of data in my said study that includes journals, research papers,
websites of Indian Telecom sectors. More over I have searched websites of different private
Telecom industries in India.c
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# c "cc#cc conducted a study titled µCustomer Satisfaction And Quality
Audit eport Of Airtel Mobile Communications Limited¶ and suggested that for maximizing
the service quality in service industries the relationship between the dealers and customers
should be strong and pricing should be constantly reviewed.
c
""#c "#cconducted a study on Consumer Awareness of VAS of Telecom Sector
of India. She analyzed the contribution of the mobile phone services not only at the national
or state level, but also its involvement in an individual's life. She found out that the less
number of users are aware of all the VAS provided by the service providers and thus the
companies should focus on the awareness campaign.
c
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ccconducted a study on Quality of Services in Indian Telecom Sector:
Users¶ Òerception- An Assessment. This study deals with growth, working and types of
services provided by the Telecom circle in macro environment. The findings of the study
reveal that the expectations of the telecom users are high among the subscribers of recent
times because of their sense of time vs. money value and awareness of their rights. The basic
motto of the telecom department is to provide excellent services to its customers against the
present competition from the private sector. In this direction, it is doing its best to acquire and
retain its new and old customers.

The Value of Customer Satisfaction


‡y ³  c., General Manager eGain Communications EMEA

What is the connection between customer satisfaction and the bottom line?
Ever wondered how much customer satisfaction is worth?
We all know and Accept that it is a strategic goal for all organizations involved in the
delivery of customer service. Yet in all my experience as a professional in this arena, I have
never come across a customer services director who could articulate the Financial value of
customer satisfaction to their business. Conversely, I have Never met a customer service
Director Who wasn¶t measured on it. How ‡izarre. ‡ig business is happy to measure it but
doesn¶t know what its worth. One of the reasons for the difficulty in making the connections,
is the Intangibility of customer churn. That is to say, how dissatisfied does a Customers have
to be before they leave and sign with the competition? What Might be an intolerable
experience for one customer may well exceed all Expectations of another. Then there¶s
competition. What if there isn¶t any? ‡efore deregulation how concerned were the large
utility companies with Customer satisfaction or ‡ritish Telecom comes to that. Interesting
therefore That the telecoms sector is where war is being waged on customer Satisfaction
Could it that be high customer satisfaction attracts new customers and helps retain existing
ones? Sounds like that could be worth something.

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‡y 2010 Airtel will be the most admirable brand in India and Asia.

’c Loved by more customers


’c Targeted by top talent
’c ‡enchmarked by more businesses+c
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’c To provide world class State-of-art technology telecom services to its customers on
demand at competitive prices.
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’c To Òrovide world class telecom infrastructure in its area of operation and to contribute
to the growth of the country's economy+cc
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’c To be the Lead Telecom Services Òrovider.

’c To provide quality and reliable fixed telecom service to our customer and there by
increase customer's confidence.

’c To provide mobile telephone service of high quality and become no. 1 GSM operator
in its area of operation.

’c To provide point of interconnection to other service provider as per their requirement


promptly.

’c To facilitate & D activity in the country.

’c Contribute towards:
i. National Òlan Target of 300 million subscriber base for India by 2010.
ii. ‡roadband customers base of 20 million in India by 2010 as per ‡roadband Òolicy
2004.

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iii. Òroviding telephone connection in villages as per government policy.


iv. Implementation of Triple play as a regular commercial proposition.
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There are two kind of environment in the market which affects the new as well as old
product. That is:-

‘c Macro Environment
‘c Micro Environment

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:- which is not controllable.
’c Demography Environmentc
’c Economic Environmentc
’c Culture Environmentc
’c Natural Environmentc
’c Òolitical Environmentc
’c Technological Environmentc

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:-c which is controllable

’c Òublics
’c Supplier
’c Company
’c Costumer
’c Competitors

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When any product lunch in the market so every businessman adopts the following concept
and I will also adopt the following concept:-


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 as we know that Customer needs and wantscare the logical
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place and India has the second highest population country so firstly I got the idea to
develop my product. There six techniques for idea generation.
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product concept. The first question is used who will used this product? Mean to say
who will become the target of the product, The second one is what are the benefits
this product provide to us.
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engineers of my company make the try on my product. They will check is there any
problem in the product. If they find any kind of problem, so before the product is
launching in the market they will remove every kind of problems.c
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Ò  I will make my position in in the market with my quality, help of brand
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1,069,706 outlets. Our network is present in 5,057 census towns and 401,882 non-census
towns and villages in India, thus covering approximately 79% of the country¶s population.
Our network operating centers, which monitor the health of our mobile network are located in
Gurgaon, near Delhi, and Chennai.


 #c  + c We provide broadband (DSL) and telephone services (fixed line) in 95
cities with growing focus on new media and entertainment solutions such as DTH and IÒTV.
We had 2,619,461 customers as on December 31, 2008 of which 37.9% were subscribing to
broadband/internet services. Our product offerings in this segment include supply and
installation of fixed-line telephones providing local, national and international long distance
voice connectivity and broadband Internet access through DSL. We also remain strongly
committed to our focus on Small and Medium ‡usiness enterprises .We provide a range of
customised Telecom/ IT solutions and aim to achieve revenue leadership in this rapidly
growing segment of the ICT market. The strategy of our Telemedia business is to focus on
cities with high revenue potential, except for DTH which is an all- India offering. Airtel
digital TV is available to customers through 23,200 retail points in 120 cities across the
country.

   c  + c - Enterprise Services provides a broad portfolio of services to large


Enterprise and Carrier customers. This division comprises the Carrier and Corporate business
units. Enterprise Services is regarded as the trusted communications partner to India's leading
organizations, helping them to meet the challenges of growth.

#  ccCarrier business unit provides long distance wholesale voice and data services to
carrier customers as well as to other business units of Airtel. It also offers virtual calling card
services in the overseas markets. The business unit owns a state of the art national and
international long distance network infrastructure enabling it to provide connectivity services
both within India and connecting India to the world. The national long distance infrastructure
comprises of 90,205 kms of optical fibre, over 1,500 MÒLS and SDH ÒOÒs and over 1,250
ÒOIs with the local exchanges, providing a pan India reach. The international infrastructure
includes ownership of the i2i submarine cable system connecting Chennai to Singapore,
consortium ownership of the SMW4 submarine cable system and investment in capacities
across a number of diverse submarine cable systems across transatlantic and transpacific
routes. In recent past we have announced investments in new cable systems such as Asia

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1.c Free lifetime sim prvided.


2.c echarges are available from s.10 to s. 10000.
3.c Different STVs are available for reduce the call rate and for free sms as per customer
usage.
4.c Corporate plan for corporate customer e.g. 149 S‡I plan, 199 corporate plan for ICICI
‡ank.
5.c Òospaid monthly bills as customer used it.


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’c Maximize short run profit


’c Increase sales volume
’c Increase market share
’c Obtain target of return of investment
’c Obtain target of return of sales
’c Maintain price leadership
’c Discourage new entrants into society
’c Match competitors prices
’c Survival
’c Enhance image of the firm, product and brand
’c Get competitive advantage.

c.Ò c cÒ


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The top management sets general pricing objectives and policies and often approves
the prices proposed by lower level of management.


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AI TEL sets the price for the first time when it makes the new or when it introduces its
regular product into new geographical area etc. It also sets price according the changing
market and satisfaction of the customers. The first must design where to position its mobile
hand set on quality and price. The firm must consider many factors in setting its price policy.
Its six step procedure:


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The Company first decides where it wants to position its product. The clearer the firm¶s
objective, it is easier to set the price. The company firstly segment the market and then target
a particular segment such as in case, AITTEL segments the consumer according their needs
and preferences or according to their age, status etc. Then the company target the particular
segment and then make the product and set the price accordingly. Marketers use to make
pricing decisions. It includes examination of approaches to setting an initial price, different
price adjustments marketers make before settling on a final selling price, payment options,
and additional issues that affect pricing.There is a five-step process for setting price. We
want to emphasize that while the process serves as a useful guide for making price decisions,
not all marketers follow this step-by-step approach. Additionally it is important to
understand that finding the right price is often a trial-and-error exercise where continual
testing is needed. Like all other marketing decisions, market research is critical to
determining the optimal selling price. Consequently, the process laid out here is intended to
open the marketer¶s eyes to the options to consider when setting price and is in no way
presented as a guide for setting the ³perfect´ price.

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Marketing decisions including price are driven by the objectives set by the management of
the organization. These objectives come at two levels. First, the overall objectives of the
company guide all decisions for all functional areas (e.g., marketing, production, human
resources, finance, etc.). Guided by these objectives the marketing department will set its
own objectives which may include return on investment, cash flow, market share and
maximize profits to name a few. Òricing decisions like all other marketing decisions will be
used to help the department meet its objectives. For instance, if the marketing objective is to
build market share it is likely the marketer will set the product price at a level that is at or
below the price of similar products offered by competitors. Also, the price setting process
looks to whether the decisions made are in line with the decisions made for the other
marketing decisions (i.e., target market, product, distribution, promotion). Thus, if AI TEL
targets high-end consumers with a high quality, full-featured mobile sets, the pricing decision
would follow the marketer¶s desire to have the mobile set be considered a high-end product.
In this case the price would be set high relative to competitors¶ products that do not offer as
many features or do not have an equally strong brand name.


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Each price will lead to a different level of demand and will therefore have a different impact
on a company¶s market objective. The price and demand are inversely related.

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Talk plans and tariffs of AI TEL are relatively simple and easy to understand. An average
user whose bill value is below s.1000 will find Òlan-249 good enough and an average user
who spends around s.2000 will find Òlan-500 attractive for him. All other plans cater to
specific requirements.

ecently AI TEL provided a free extra SIM which they call Jody SIM, and a second free
SIM by name JODY Òlus. All calls between the 3 SIM¶s are free. Also each SIM gets a tariff

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or 20ps/min to one AI TEL mobile and One AI TEL land line. So overall unlimited free
calls between three family members and low cost calls to 6 more dear or near.

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The customer is the most important aspect of marketing decision analysis, without
understanding the customer¶s needs your product satisfies creates unwarranted obstacles.
Make sure you have a clear and concise customer value statement that can be backed by
facts. The best strategy to identify the needs of the customer and make product according to
them and also the pricing is to be done by taking customer into the consideration. For
example what is the lifetime value of our customers? Òaying commission of s 100-200 to
franchisee is not a cost considering the future flow of revenue from the customer. How many
of our decisions are based on scientific analysis of the precious customer data we already
have such as calling pattern, payment habits, usage profile etc? How many surveys we do,
how much customer research we carry out? Net growth in mobile is high but what about
churn? Can¶t we analyze & reduce it? Acquisition cost is usually said to be 5-8 times the
retention cost. It is high time we learn fast, groom ourselves, improve our mindset and act
fast. ‡usiness perspective is equally important as excellence in Telecom operations,
maintenance, and installations & planning. Our core competence should be telecom business
acumen and not just traditional expertise developed over the years. It is usually much easier
to sell additional things to existing customers than to add new customer. Let us try to upgrade
each customer by S 20  S 50 by offering them more add on relevant services.

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while deciding the cost the company must take into consideration its fixed costs and variable
costs. To price intelligently, management need to know how the cost vary with different level
of production.

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After knowing the customer demand schedule, the cost function and the competitor¶s prices
of particular mobile set, the company is ready to select a price. Costs set the floor to the price.
Competitor¶s price and the price of the substitutes provide an orienting point. Customer
assessment of unique feature establishes the price ceiling. There are various methods present
such as mark up pricing, value pricing etc.

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c  c - Airtel gives advertisement on two major print media - magazines and
newspaper. The advertisement on magazines and newspaper gives the features and
knowledge to the different people

 
c   Airtel promotes their product through radio ads to the persons who are living
in the rural areas and villages as they hadn¶t knowledge of these print ads

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c Ò  - Traditional T.V is given on unconventional places such as movies,
airlines and lounges as well as classrooms, sports arenas and hotel elevators and other public
places. ‡illboards type poster ads are showing up everywhere.

Ò cÒ  .   Airtel also promotes through product placement. In the T.V
shows and in films.

  c  -Trade shows is done in every street and roads of the country by these
trade shows people will come to know about the new schemes of Airtel.

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Ò -. Airtel organises different event to sponsor their products such as cricket
tournaments etc.

  c c Airtel also uses internet for the promotion of their products as it is the
cheapest medium to promote products and also different people comes to know about their
products.

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After the liberalization of the Indian Telecom Sector in 1994, the Indian cellular market
witnessed a surge in cellular services. ‡y 2005, there were a total of 12 players in the market
with the five major players being ‡harti Tele-Ventures Limited (‡harti), ‡harat Sanchar
Nigam Limited (‡SNL), Hutchinson-Essar limited (Hutch), Idea Cellular limited (Idea) and
eliance India Mobile ( IM) ( efer Exhibit I).
All the players except IM offered services based on the Global System for Mobile (GSM)
technology. IM provided services based on Code Division Multiple Access (CDMA)
technology as well as GSM.
As competition in the telecom arena intensified, service providers took new initiatives to woo
customers. Òrominent among these were - celebrity endorsements, loyalty rewards, discount
coupons, business solutions and talk time schemes. The most important consumer segments
in the cellular industry were the youth segment and the business class segment. The youth
segment was the largest and fastest growing segment and was therefore targeted most heavily
by cellular service providers.
‡harti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy. ‡y
2004 it emerged the unprecedented leader commanding the largest market share in the
cellular service market. ( efer Exhibit II). Hutch implemented the celebrity endorsement
strategy partially, relying primarily on its creative advertising for the promotion of its brand.

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managing director Jagdeep Kapoor point to the usage of an ³audio celebrity´ as something
that is significant.

³The normal practice is to opt for film stars and sportsmen rather than an audio personality´
he says.

ivals, though seemingly unfazed by the phenomenon, seem to be doing their own
homework on this brand of advertising. While none of them commented on AirTel¶s strategy
and its impact on their own subscriber base, one advertising professional working with a rival
service provider opines that the tune is ³transient´ and not likely to have any long term
impact as a brand building tool.

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Jc The Airtel prepaid Sim are available in almost all small mobile shops, mobile repair
shops and Airtel galleries in every hook and corner.

Jc Airtel postpaid sim are available only in gallery and agencies are appointed for sell
postpaid sim

Jc Airtel have more than 20000000 #c cin the country. Airtel have their own
retail business unit located at all cities. These are: -
HNI (High Network Individuals)
‡ ‡U
E‡S
CM‡U

Jc HNI network is used for selling only postpaid products of Airtel like data cards,
Wireless connections etc.
Jc E‡S (Enterprise ‡usiness Service) : The Enterprise ‡usiness Service function drives
business growth & customer centricity by providing telecom related solutions to
Corporate Entities. The E‡S function also undertakes customer relationship
management and retention along with revenue enhancement and channel
management.

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îc Company can decrease call rates to other subscribers for attracting youngsters
îc Voucher card can provide all the retail shops on time for customer convenience.

îc Sales promotion can be more intense, like television ad showing the price, quality,
and other product related details.
îc Even though the company has some offers or other value added services, it can be
well known by the sales people. So it is better to provide adequate training to the
sales people.
îc Òrovide the tower to all centres for avoiding the network problem.
îc To ensure better customer satisfaction & maintain higher level of Customer
relationship management, the billing department has to be more effective & efficient.
îc User manuals and the plan¶s pamphlets should be given to the staff for clearing the
doubts of the customers.
îc The cancellation mainly occurs in landline connection. So the company can take care
of the following services.

‡illing activities
After sales service
On time delivery of the product after complaint has to be recovered.

îc The employees can call back to customers at least once in a month for getting the
feedback of the services offered.
îc Customers are demanding for affordable price for product and gifts with purchasing.
îc Majority of the customers are not satisfied with the recharge coupons offering by the
company. So the company can increase the talk time to all recharge coupons.
îc Customer relationship managers can keep the records of update details regarding the
customer¶s address change for sending the postpaid billing charges to avoid delay of
payment.
îc All the AI TEL retail hubs can have the complaint grievance box for customers.
îc Employees can inform customer complaint on time to the head of the department.
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India has a mere 1.2 telephones for every 100 of its people. This is way below international
standards and is not becoming of a country aspiring to be major player in the global economy
of the 21st century. This means that opportunities for investment in this sector are immense.
‡asic voice service is the biggest market. Installation of around 25 million direct lines by the
year 2001 will require an investment of US$ 22 billion.

Due to the growing need for mobile phones, it¶s no wonder that service providers are going
all out to capture, as much market space as they can. As the number of mobile phone users
are estimated to rise to about 120 million by 2008,it¶s not surprising that most of the leading
service providers in India have started branding and marketing their services more
aggressively.
Airtel has proved to be the leading Telecom giant in India and is focussing on bigger market
share by providing good services to its customers. In this project I had tried my best efforts to
analyse the marketing plans of Airtel and how they satisfy their customers¶ needs.

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   Òc
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îc Voice & Data.(Dec-µ08)
îc http://www.bhartiairtel.in
îc http://capitaline.com
îc Investors presentation, ‡harti Airtel Limited, November 2008
îc Telecommunication Services, Indian Industry: A Monthly eview, CMIE 
November 2008
îc Analyst eport  ‡harti Airtel, Assist C. Mehta Investments Intermediates Ltd.
îc Telecommunication Sector eport  March 2008, C ISIL
îc Òhilip Kotler and Kevin Lane Keller (2005), Marketing Managementc Twelfth
Edition, Òrentice Hall, Delhi.
îc Martin Tina; Sam Manaberi, Vol 2 [2005] consumer buying behavior, Indian
Journals
îc Singh J,(2002), Customer Satisfaction and Loyalty judgement, Journals of
Academy od
îc Marketing Management, pp.18-35
îc Òayne Adrian (1998) Marketing Òlans For Service ‡usiness
îc Sharma N, Sharp A,(1999), the impact of communication effectivenss and service
quality on relationship commitment in consumer, professional services, The
Journal of Marketing
îc  "# ""#cc³Consumer Awareness of VAS of Telecom Sector of India´,
TheIcfai University Journal of Infrastructure,1-14
îc "##
c !c³Quality of Services in Telecom Sector: Users¶ Òerception-
An Assessment´, Icfai University Journal of Managerial Economics, Volume 3,
Issue 2,Òages77-93
îc .# #c"c c"cc#
 c ³Importance-Òerformance Analysis´,
Journal of Marketing, 77-79
îc The Global Information Technology eport 2008-2009