Marketing Strategy of Airtel

PROJECT REPORT
ON
MARKETING STRATEGIES OF AIRCEL
Submitted In Partial Fulfillment Of The Requirement Of Bachelor Of

Business Administration (BBA)
Jamia Hamdard University, New Delhi
UNDER THE GUIDANCE OF:
SUBMITTED BY
MR. INTSAR ALI
Anmol Arora
SOFTDOT HI-TECH EDUCATIONAL &
ENROLLMENT NO. ODL/12/403/0288
TRAINING INSTITUTE SOUTH EXT-1
BBA 3rd Year
SESSION 2012-2015
DIRECTORATE OF OPEN AND DISTANCE LEARNING
JAMIA HAMDARD UNIVERSITY, NEW DELHI
THROUGH
CENTER CODE- 1010
SOFTDOT HI-TECH EDUCATIONAL & TRAINING
INSTITUTE
i
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project work title MARKETING

STRATEGIES
OF
AIRCEL
by
KRISHN
MURARI
ENROLLMENT NO. ODL/12/403/0288 is an authentic work carried

out by his under my guidance and supervision in the Bachelor of
Business Administration from JAMIA HAMDARD UNIVERSITY
THROUGH SOFT DOT HI-TECH EDUCATION INSTITUTE. The
report submitted has been founded satisfactory for the partial fulfillment
of the degree of B.B.A
----------------------MR. INTSAR ALI

(PROJECT SUPERVISOR)
STUDENT DECLARATION
ii
I hereby declare that this project work entitled MARKETING

STRATEGIES OF AIRCEL submitted in partial fulfilment of the
requirement for the award degree of bachelor in business administration
to Jamia Hamdard, (Deemed University) Delhi India
is my work, and
not submitted or the award of any other degree, diploma, fellowship, or

any other similar title or prizes anywhere else.
KRISHN MURARI
ENROLLMENT NO. ODL/12/403/0288
BBA 3rd Year
iii
A CKNOWLEDGEMENT
I would like to express my gratitude and appreciation towards my friends
working in Bharti Cellular Ltd. (Aircel) and for providing me information
Vodafone to complete the project.
It has been of great learning to be on the job-training and doing the project
simultaneously, which enriched my knowledge and developed my outlook for
becoming a better professional. Anticipating with conviction that I had been of
some help to them. I look forward with hope to work for this organization.
Lastly, I would like to acknowledge my friends & my batch mates for their
generous co-operation and assistance in carrying out this project and all those
peoples who helped me in the preparation of this project. Without you, there
would not be this project.
KRISHN MURARI
PREFACE
Indian cell market has just recently crossed the 2 million mark.and there is more to
happen. With new technological upgradations occurring nearly everyday and the everincreasing demand for easier quicker connectivity, the cell market is expected to race
ahead .
In Delhi, the two cellular service providers, Aircel and Vodafone, have been
competing aggressively for their market shares. With MTNL and a Fourth player
entering into the foray, this tussle will only become more tough. And the one who
will be able to capture the largest part of the pie,
will emerge as the leader.
Till now, Bharti Aircel had enjoyed the lead over its only other competitor in the
region, Vodafone. With these new entrants and fierce competition from Vodafone, will
Aircel be able to retain its market lead?
EXECUTIVE SUMMARY
This Project Marketing Strategy of Aircel, in Delhi has been submitted in partial
fulfillment of the BBA course.
The study was done to know about the present satisfaction level of Vodafone prepaid
customers.
The areas where Vodafone can improve and areas where it leads from the other
private players in the market.
I shall feel rewarded if this project report proves helpful to Vodafone.
India's telecommunications market is amongst the highest-potential markets globally,
marked by deregulation and rapid growth. Its cellular market alone is growing at 60%
annually. This demand will only accelerate as new technologies emerge to make new
services possible. Idea plans to grow its telecom business both in terms of
geographical reach and in terms of the products and services we will offer.
Value added services
Almost all the respondents are in for value added services. They would like to
have more information available on the cell phone. They wanted services like
local information on the cell phone.
While completing this project I found out that word of mouth was also an
important factor for choosing mobile service providers.
. For the study, both primary data and secondary data were required. The primary
data was collected based on a survey research, using a structured questionnaire with
both open and closed end questions. The sampling procedure was probability
sampling. Since the sample units were to be cell phone subscribers, a stratified
random sample was used. The mode of survey was of personal interview, where the
respondents filled up the questionnaires. The secondary data was collected from
business newspapers, magazines, company brochures, journals and the internet.
TABLE OF CONTENTS
S. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
TOPIC
INTRODUCTION TO THE INDUSTRY

INTRODUCTION TO THE COMPANY
MARKETING STRATEGY OF AIRCEL
RESEARCH METHODOLOGY
a.
Title
b.
Objective
c.
Scope of the Study
d.
Significance of the Study
e.
Research Design
f.
Sampling Methodology
g. Limitation
FACTS & FINDING
DATA ANALYSIS AND INTERPRETATION
CONCLUSION & RECOMMENDATION
BIBLIOGRAPHY
ANNEXURE
Page. No
1-28
29-56
57-63
64-67
68-70
71-81
82-85
86
87-89
INTRODUCTION TO THE INDUSTRY

Industry Profile
The year 1995 has been a watershed year for the Indian cellular industry. It started
with the Department of Telecommunications (DoT) inviting tenders for 40 GSM
cellular licences in January and ended with issuance of nearly 34 licences in
December. Metros were first licensed in 1994 and subsequently circlewise licenses
were issued in 1996.
India was one of the last mobile markets to be liberalised in Asia and that resulted in
the tremendous international interest in the GSM tenders. Indias late liberalisation of
its mobile market has led to a number of surprising bonuses. The most evident one is
its choice of cellular standard. By mandatory licences to operate on the 900 MHz
GSM standard, India has leapfrogged straight into the digital age. Most countries
started celluar telephony with different analog technology based on standards like
AMPS, NMT, and TACS. Today, all these analog technologies are fast being replaced
by digital standard. Now, the so-called third generation or 3G wireless network
promise a leap ahead in speed and capacity for mass wireless networks. But that is the
future of the wireless world. 3G networks are the high stakes gamble that may make
mobile commerce possible.
Six years back, mobile phones were highly associated as a lifestyle product,
but they changed the dynamics of the way the market functioned. India is today,
among the fastest adapting celluar nation in the Asia region after China. The total
number of subscribers in India was 3.58 million at the end of March 2002, according
to the figures compiled by the Cellular Operators Association of India (COAI) (ET,
May 1, 2002). The increase in the number of subscribers is only a rough proxy for the
total size of the cellular phone market since some subscribers buy second-hand
phones. Indias cellular phone subscriber base is currently growing by 1.5 lakhs per
month.
Among the metros, Delhi has overtaken Mumbai as the metro with the maximum
number of cellular subscribers in the country
(ET, March 20, 2002). The capital
city recorded a 6.6% growth at 5.19 lakh subscribers in February, 2002 as against 4.8
lakhs units in January, 2002 (COAI). Mumbai had 5.12 lakh celluar subscribers. The
latest ICRA study (ET, April 12, 2002) on the Indian telecommunications industry has
8
projected a five fold increase in the number of celluar mobile connections it the
country to around 20 million by March 2005 against the estimated 3.6 million
subscription by end of March 2002. It also says by July 2002, the cellular penetration
level in India is expected to reach 0.55% of the total population (compared to 3.9%
for fixed lines) and 12.5 - 13% of the total telephone lines. The pre-paid boom is
expected to cross the 50% barrier and there will be more pre-paid users then post
paid by 2003.
The cellular industry was one service that had escaped unlimited competition. The
government has sought to correct this by subjecting the duopolistic cellular services
market to competition from the state owned companies MTNL / BSNL and a fourth
private operator. Further competition is to be induced by allowing basic operators to
provide limited mobility by Wireless in Local Loop (WiLL) using Code Division
Multiple Access (CDMA) technology. The cellular industry, in spite of the
exponential increase in cellphone subscribers due to the tariff cuts, is in for testing
times ahead.
Mobile History in India

In the early 1990s, the Indian government adopted a new economic policy aimed at
improving India's competitiveness in the global markets and the rapid growth of
exports. Key to achieving these goals was a world-class telecom infrastructure.
In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,
Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.
The circles are further classified under "A," "B" and "C," with the "A" circle being the
most attractive and "C" being the least attractive. The regulatory body at that time
the Department of Telecommunications (DOT) allocated two cellular licenses for
each metro and circle. Thirty-four licenses for GSM900 cellular services were
auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra
in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in
more than one metro, three circles or both. The circles of Jammu and Kashmir and
Andaman and Nicobar had no bidders, while West Bengal and Assam had only one
bidder each.
In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the
Lok Sabha, and the president officially announced the TRAI ordinance on 25 January
1997. The government decided to set up TRAI to separate regulatory functions from
policy formulation, licensing and telecom operations. Prior to the creation of TRAI,
these functions were the sole responsibility of the DOT.
High license fees and excessive bids for the cellular licenses put tremendous financial
burden on the operators, diverting funds away from network development and
enhancements. As a result, by 1999 many operators failed to pay their license fees and
were in danger of having their licenses withdrawn. In March 1999, a new telecom
policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy, the
old fixed-licensing regime was to be replaced by a revenue-sharing scheme whereby
between 8-12 percent of cellular revenue were to be paid to the government.
Over 3.6 cr people are using mobile phones in India today. More than 150% growth
over last fiscal, being attributed to increased competition and sharp fall in tariffs
during the past 12-15 months. Of the total mobile subscriber base, GSM cellular
industry - led by Bharti, BSNL, unTra lai em niem vui khi duoc gan ben em, tra lai em
loi yeu thuong em dem, tra lai em niem tin thang nam qua ta dap xay. Gio day chi la
nhung ky niem buon... http://nhatquanglan6.t35.com and IDEA - showed impressive
growth of 106%. There
Tra lai em niem vui khi duoc gan ben em, tra lai em loi yeu thuong em dem, tra lai em
niem tin thang nam qua ta dap xay. Gio day chi la nhung ky niem buon...
http://nhatquanglan6.t35.com CDMA was 71.5 lakh at the end of March, 2004 with
Reliance accounting for over 6.4 million subscribers, followed by Tata Teleservices
having 6.2 lakh customers. 15 lakh subscribers joined the GSM base last month and
over 4 lakh opted for CDMA mobile phones.
Of the total mobile subscriber base, GSM cellular industry - led by Bharti, BSNL and
Vodafone - showed impressive growth of 106 per cent. There were 26.1 million GSM
subscribers at the end of March 2006, up from 13.4 million last March.CDMA was
7.1 million at the end of March, 2004 with Reliance accounting for over 6.4 million
subscribers, followed by Tata Teleservices (Indicom), way behind at 620,000
customers.
Now with the launch of the Chinese mobile brand Kejian has been launched in India.
The company plans to spend close to Rs.40-crore in marketing promotions this year to
establish the brand's identity. Kejian has tied-up with the newly floated Trust Telecom
10
Technologies (part of Rs.600-crore Rajgarhia Group) for sales, marketing and service
of the mobile handsets in India and SAARC region. To start with, the company has
launched four GSM models in the price range of Rs.4, 905 to Rs.16, 650 offering
latest features like high resolution colour screens, video cameras and sleek looks.
Of the total mobile subscriber base, GSM cellular industry - led by Bharti, BSNL and
Idea - showed impressive growth of 106 per cent. There were 26.1 million GSM
subscribers at the end of March 2004, up from 13.4 million last March.CDMA was
7.1 million at the end of March, 2004 with Reliance accounting for over 6.4 million
subscribers, followed by Tata Teleservices (Indicom), way behind at 620,000
customers.
So far the youth and upper middle class has led the growth and bought into mobile
lifestyle. But the ever cheaper pricing plans are coming to make mobile a commodity
like shampoos and soap. Can you hear me now, no you dont because soon there will
be a billion Indians talking.
Indian Cellular Market - Earlier Roadblocks and Their Resolution

Indian Cellular market immediately after the first round of licensing in 1994-96 was
beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was
announced. Some of these roadblocks / current position is tabulated below:
An overview of Indian Telecom industry

The Indian telecom industry is the eighth largest in the world and the second largest
among emerging economies. The industry has witnessed an explosive growth in
recent years. Teledensity has more than doubled from 2.3 percent in 1999 to 4.8
percent in 2002. The Indian telecom market size of over US$8 bn is expected to
increase three fold by 2012.
Telecom Industry in India

At A Glance
In so-called developed countries, growth in telecoms is in value added services, but
in developing countries like India, the priority is on providing basic telephony and
using telecom to improve peoples lives.
The Indian Economy is on a path of resurgence. The gradual opening of the economy
has ensured steady growth even at the time when other countries were in the grip of a
11
massive slow down. Progressive reforms such as removal of restrictions on foreign

investment and industrial delicensing are responsible for this growth
Such structural changes have had a positive impact on the telecom sector and a
compounded annual growth rate of 13.43% is estimated for 2002-2006 (Frost &
Sullivan). The future of the industry lies in mainline and cellular segments and
constant technological innovations such as Internet Protocol (IP)- based services.
Revenues from voice and data services are expected to increase sharply due to surge
in usage. Listed below is the present scenario and progress of the Telecom sector in
India:
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 a major
player in the global economy of the 21st century. This means that
opportunities for investment in this sector are immense.
Basic voice services, is the biggest market. Installation of around 25 million

direct exchange lines requires an investment of US$ 22 billion.
The cumulative investment up to the year 2006 to meet demand for cellular
mobile and radio paging services is estimated at US$ 8 billion and US$ 1
billion respectively.
Investment in Value Added Services (VAS), up to 2006, is estimated at US$

3.5 billion.
VSAT services have not taken off in India. Demand for electronic mail,
videoconferencing is not strong enough to justify investment. Besides, licence
fees to be paid to the Department of Telecommunications (DoT) are too high
given the size of demand.
The telecom sector has witnessed the presence of many leading foreign
companies including US companies: AT&T, Motorola, Nynex, US West,
Hughes, Harris, Qualcomm, Sprint, Telstra, NTT, Singapore Telecom,
Philippine Telecom, Bezeq, Siemens, Ericsson, Nokia, Fujitsu, Alcatel, and
Bell Canada among others.
The pre paid market is thoroughly voice driven hence companies like Pre-Paid India
(with brand Oxigen) and E-charge Tech are trying to en-cash this phenomenon by
12
voucher free charging through electronic re-charging of pre-paid mobile customers.

One must not forget electronic "top-ups" through bank ATMs. These facilities were
introduced for aiding voice telephony. A similar trend is prevalent worldwide, too
A survey of cellular users conducted in Delhi sometime back, reveals that talking
consumes over 85 per cent of the pre-paid card value and over 70 per cent usage value
of post paid users. As per TRAI (Telecom Regulatory Authority of India) data, 80 per
cent of new mobile subscriber additions every month is still in the pre-paid category
only. In its performance Indicators of Telecom Services released last June the average
monthly minutes of usage (MoU) for cellular services have been shown as steadily
growing from 210-222 minutes in FE 2003-2004 to 301-322 in FE 2004-2005.
Though SMS applications are quite popular in the youth segment, but ask any
collegian whether she would fancy a device with text messaging data capability alone
she would snap back "SMS / MMS is cool but voice is hot."
GSM Players Clock Higher Quarter One Income
Private GSM mobile operators recorded 5.7% rise in the first quarter of the current
fiscal. Because during March gross revenue was 3557 crore which has increased
by 3760 crore for the quarter ending June 2005. Previous quarter witnessed a 43%
rise in the revenue if we compare this figure with the previous quarter of April 05.
However the average revenue per user (ARPU) has declined by 2.89%about Rs
11 per subscriber from Rs 401for the quarter ending march 2005to Rs 390 for the
quarter ending June 2005.
Source Business line 10 Aug 2005

Private basic phone firms call for number probability
Private basic operators have asked the telecom regulatory authority of India
(Trai) to implement number portability in fixed line telephony. Under number
portability a subscriber can retain his /her number even while switching to a
new service provider. Trai is currently working on bringing number portability
in mobile telephone services.
13
Source Business line 21 Aug 2005

Vodafone buys Maxs 3.16% in Vodafone for Rs 657 crore
On 18th October Vodafone Teleholdings signed an agreement with Max Televentures to acquire the latters 3.16 % stake in Vodafoneison Vodafone for Rs 657
crore crore. The all cash deal is priced at Rs 607 per share. Remarkably max has
made 3.16% stake then when it sold a 41% stake over seven years ago. In April
1998 max India had sold its 41 % equity in the mumbai circle to Vodafoneison for
Rs 561 crore
Source Business line 18 Oct 2005
What is the state of the telecom industry in India?
According to an Ernst & Young study, the telecom subscriber base is expected to
reach 203 million by 2007 and revenues are expected to touch $23-25 billion by
2007. The mobile phone sector in 2004-05 registered three times higher growth in
2004-05 than what was reported in 2003-04. The industry added 21 million
mobile connections2004-05.
However, the growth in fixed lines has been negligible, merely 3%, from 41.48
million connections in March 2004 to 42.58 connections in March 2005
74% telecom FDI hike is transparent but conditions apply
Communications minister Dayanidhi Maran flags off a new move that will see
Indian CEOs and directors ruling over foreign investors in the telecom sector.
On February 4 the cabinet eased the ceiling on foreign direct investment (FDI) in the
telecom sector to 74 per cent from 49 per cent. FDI will be allowed in basic, cellular,
unified access services, STD, ISD, VSAT, public mobile radio trunked services,
global mobile personal communication services and other value-added services.
"We need at least $20 billion (Rs86, 740 crore) of investment and part of this has to
come as foreign direct investment," said Maran. The increase in the FDI limit is
expected to usher in a 20 per cent jump in foreign investments in the telecom sector
within the next two years from the current Rs10, 000 crore
Source http://infotech.indiatimes.com/articleshow/msid-1014557, curpg-4.cms
How will this FDI cap hike affect the Market?
According to an Economic Times report, the FDI hike could also impact the
sponsored ADR issue planned by Bharti to help Warburg Pincus, one of the early
14
investors, to exit the company. Bharti had earlier mentioned that they were looking at
an overseas listing. It is possible now that Bharti might opt for a fresh ADR issue
where existing investors could offload part oftheirstakes.
Cell phone companies such as Vodafoneison Vodafone and Idea Cellular have been
waiting in the wings, preparing to go public for sometime now.
Bharti And Ibm To Offer Managed Services
New Delhi:
Bharti Tele-Ventures Ltd and IBM Global India on Thursday have
announced the launch of managed services under their `Joint Go-To-Market'

programmed that the companies signed a year back
The two companies will jointly develop and market telecom and IT solution to the
enterprise market in India. The initial offering portfolio will include managed hosting
services and business resiliency and continuity services
New telecom policy on the anvil Our Corporate Bureau
18 August 2005
Chennai: In order to sort out the various issues bogging down the country's telecom
sector, the government is drafting a new telecom policy. Announcing this in Chennai,
the union minister for communications, information and technology, said, "The policy
will be announced soon. We would like to remove all the artificial barriers that hinder
the sector." According to him the new policy will also address whether net telephony
would be allowed within India.
Trai Directs Telecom Firms To Make Tariffs Transparent
Our Corporate Bureau
The Telecom Regulatory Authority of India (TRAI) has asked operators to provide
customers with details of their tariff plans within a week of activating the service. The
regulator has also directed the operators to intimate any changes in tariff of the chosen
package in writing to subscribers.
1) Comprises the circles of Delhi and Himachal Pradesh.
2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh.
3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and
Chennai.
4) Comprises the sixteen operational circles of Bharti Tele-Ventures.
15
5) Based on data released by the COAI on the total number of persons subscribing to
mobile services in our licensed areas.
Mobile Strategy
Capture maximum telecommunications revenue potential with minimum

geographical
coverage
to
maximise
its
revenues
and
margins.
Build high quality mobile networks by deploying state-of-the-art technology

to offer superior services.
Use the experience it has gained from operating its existing mobile networks
to develop and operate other mobile networks in India and to share the
expertise across all of its existing and new circles.
Attract and retain high revenue generating customers by providing competitive

tariffs, offering high quality customer support, proactive retention programs
and roaming packages across all of its mobile circles.
Provide affordable tariff plans to suit each segment of the market with a view
to expand the reach, thereby increasing the mobile customer base rapidly.
The Current Cell-Market Scenario

Current Position
High license fees
Migration to revenue sharing mode in 2005 mitigates high initial fund requirements
for payment of license fees.
Inadequately funded businesses / weak and fragmented promoters
Businesses that have since been adequately funded growing at over 60% per annum,
while businesses with weak promoters continuing to languish - spate of acquisitions /
mergers, with 4/5 major groups emerging in the last one/two years.
Regulatory authority not in place
Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being
accepted by all operators; Deptt of Telecommunications (DOT) restructured, with
operations and policy making roles vested in different bodies.
Issues relating to unfavorable interconnect terms for private operators, pass through
income, intra circle long distance, spectrum availability and allocation and the like
remained unresolved for long periods.
16
Interconnect terms since rationalized, risks on pass through income to DOT / MTNL
(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with
changes in methodology / revenue sharing, intra circle long distance allowed,
spectrum availability cleared with vacation of frequencies for usage by GSM
operators.
Problems in Financial closures due to:
Licensing tenure of 10 years
Large up front cash requirements from promoters due to heavy license fee
burden in initial stages of deployment Asset based financing approach by
Indian Financial Institutions.
Licensing tenure increased from 10 to 20 years
Large up front cash requirements for license fee payments mitigated with
migration to revenue sharing mode allowing promoters to deploy more capital
for capital expenditure; project financing being considered by most financial
institutions.
Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed as a matter of
routine allowing ease of entry / exit - paves the way for full control of businesses by
foreign companies.
Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber growth, but with
corrective measures taken, market / subscriber base expected to zoom
17
Developments in the Cellular Industry

The interconnection regime between cellular operators and fixed-line operators is still
biased against the former.
Despite the recent gains of the cellular industry, not everything is rosy. The cellular
penetration rate is still very low at 0.8 percent in a nation of over one billion people.
In recent years, many foreign companies had pulled out from their cellular joint
ventures in India due to the difficult operating environment and bureaucracy. In 1999
alone, Swisscom pulled out from Sterling Cellular, Telstra from Modi Telstra and both
the Telecom Organization of Thailand and Jasmine International from JT Mobile. In
2000, Telecom Malaysia sold its stake in Usha Martin Telecom, and both Shinawatra
of Thailand and Bezeq exited from Fascel. In June 2001, British Telecom exited from
Bharti Cellular. Bell South International has also indicated its intention to pull out
from Skycell Communications, and Hong Kong-based Distacom is seeking to sell its
stake in Spice Communications. First Pacific's (based in Hong Kong) continued
commitment to Escotel is uncertain, and the former is reviewing various options.
The string of sell-outs notwithstanding, there has been a merger and acquisition wave
sweeping across the Indian cellular industry in recent years. Hong Kong-based
Vodafoneison Whampoa, via Vodafoneison Telecommunications (HK), acquired
major stakes in Sterling Cellular (December 1999), Usha Martin Telecom (mid-2000)
and Fascel (September 2000). Through a partnership with local company, Kotak
Mahindra Finance, Vodafoneison Whampoa practically controls Fascel and Usha
Martin Telecom, thus circumventing the 49 percent limit on foreign ownership in
Indian cellular operators. Vodafoneison Whampoa is also the controlling shareholder
of Vodafoneison Max Telecom. Not to be outdone, Bharti Enterprises another
major cellular player acquired control of JT Telecom, which was later renamed
Bharti Mobile (December 1999), and Skycell Communications renamed Bharti
Mobinet (August 2000). Bharti also acquired the Punjab license of Vodafone and
started operations, giving competition to the lone operator there, Spice
Communications. Going forward, Bharti is likely to merge all its cellular companies
into one entity.
Five companies together bid Rs16.3 billion to bag the licenses for the fourth operator
slots in four metros and 13 circles. Bharti emerged as the No. 1 bidder with eight new
18
licenses, followed by Escotel with four, Vodafoneison with three, and Reliance and
Idea cellular with one each. Bharti and Vodafoneison have already commenced
operations in all the circles while Idea is set to launch in Delhi. Escotel and Reliance
have not made any headway.
MTNL, the third cellular operator for Delhi and Mumbai, started services in March
2001. BSNL, as the third nationwide cellular operator, launched services in Kolkatta
and Bihar in January 2002. This was followed by Tamil Nadu in July 2002. A
nationwide launch was scheduled for 2 October 2002. However, this has been
postponed until after mid October. Once BSNL rolls out its service, most telecom
circles will have four cellular operators. There will be tremendous competitive
pressure, which will result in lower tariffs. Future rate cuts are expected, which will
drive demand, together with falling handset prices and the introduction of prepaid
services.
In the midst of declining interest in technology stocks, Bharti came out with its longawaited initial public offering (IPO) in January 2002. Leveraging on the success of its
cellular service, the company got a very good response from the primary market. The
total size of the IPO was 185 million shares at a floor price of Rs10. The issue was
oversubscribed by more than 2.5 times, netting Rs8.3 billion. This will be used to fuel
its investment in long-distance, basic and cellular services.
As of October 2002, only BPL Mobile has launched commercial general packet radio
service (GPRS) in Mumbai. However, large-scale uptake remains elusive. While both
Bharti and Idea have GPRS-enabled networks, there is caution on their part to launch
the service. With hardly any applications, the success of GPRS remains a question.
Building visibility and awareness

Deviating from competing on the price platform, cellular operators are actively
promoting their brand and service portfolio through high-visibility advertising and
promotional campaigns. Cellular operators like Bharti, Orange and BPL Mobile have
been advertising aggressively on hoardings and kiosks. Public transport like the city
rail system and cabs are used widely to carry the message of mobility.
Customer-focused activities are gaining traction among cellular operators with the
establishment of longstanding consumer benefit programs. Orange in Mumbai offers
"Orange Holidays" and "Orange Monsoon Offers" at very attractive rates and added
19
benefits like discounts on airfare, food and beverages, among others. Others offer
special privileges in retail outlets, cinemas and music shops.
Enterprise Mobile Applications Promising Revenue Stream

All along, customer acquisition and the top line have been the focus. Few operators
have concentrated on offering differentiated services for businesses. However, as
operators realize that offering basic voice and Short Message Service (SMS) will get
them the numbers but not the margins, some are now seriously looking at the
enterprise segment for provisioning superior services.
Cost-centered solutions like closed user group (CUG), value-adds like unified
messaging and instant alerts are being offered.
A variety of mobile applications are finding takers among the enterprise segment.
Bharti is in the process of introducing a facility to fleet management companies so
that they can improve the efficiency of trucks or buses by tracking movement and
ensuring higher-use, accurate route planning. Premium automakers are also installing
a global system for mobile communications inside a vehicle to help trace lost vehicles
and track down stolen cars.
Corporations can choose enhanced services like user-defined call routing to prevent
misuse. Calls can be barred, limiting access to select numbers and diverting calls to
one single number. Broadcasting services are also quite popular, especially among fast
food centers that have a central number. Group SMS is quite popular, especially
among enterprises both in the service as well as the fast-moving consumer goods
(FMCG) segment that have a large field force and need to provide regular updates on
inventory status, discount schemes and movement of goods from warehouse to the
retail outlet. Banks too find bulk SMS service very useful to forward transactional
alerts to their customers.
20
Future Trends and Development

There will be more competition, forcing operators to constantly focus on
differentiations to maintain their lead.
The implementation of enhanced networks like 2.5G will enable operators to

offer data services. This is an opportunity to customize and differentiate better.
The entry of state-run operators like BSNL and MTNL means that prices will
no longer be controlled, thus there is less chance of a cartel being formed.
Network coverage in terms of geographic spread and quality of coverage is

crucial especially for the business subscriber.
The bigger the service provider's national presence, the better it is for
businesses. On the roaming front, signing up with a national operator is
advantageous.
Limited mobility wireless in local-loop services (by fixed network service

providers) will be a disadvantage for cellular operators in the short term.
Consequently, operators need to streamline their customer relation activities
and adopt aggressive subscriber acquisition and retention strategies.
Regulatory Issues
The operations of this sector are determined as under the Indian Telegraph Act of
1885. A document buried in the sands of time. The next major policy document,
which was produced, was the National Telecom Policy of 1994, a consequence of the
on going process of liberalization.
Year
1851
1943
1985
1986
1991
1994
1994
September 1994
November 1994
December 1994
January 1995
Event
First telephones in India
Nationalization of telephone companies
DoT was created
Creation of MTNL and VSNL
Telecom equipment liberalized
Licenses for paging
Telecom policy announced
Guidelines for private sector participation in basic services
Cellular licenses issued for metros
Tenders for cellular licenses in 19 cities apart from 4 metros
Tenders for 2nd operator in basic services apart from DoT on
21
circle basis.
August 1995
VSNL launches Internet services
January 1996
TRAI formed
November 1998
Internet policy announced
The National Telecom Policy of 1994 document, which laid out broad policy
guidelines rather than a series of action points. Like other policies, it sought to
achieve the impossible in finite time like improve quality of service and its
availability, wide coverage (a phone in every village), at reasonable rates, etc. The
targets in quantifiable terms were installation of 9.5mn additional lines, telephone on
demand by 1997, and a PCO pop of 500. The Eighth Plan had also allowed private
operators in value added services. To facilitate licensing, the nation was divided into
20 circles (akin to a state) for basic and 21 circles for cellular telephony. Mumbai falls
in Maharashtra circle and Delhi in itself a circle.
The basic premise on which competition has been introduced is that every circle will
have one private operator apart from DoT/ MTNL for basic and two operators for
cellular. DoT/ MTNL have the option to become the third cellular operator in future.
Government did not achieve most of its stated targets. The basic theme, which was
broadening the reach of telephony in India, has not been met. Even liberalization
policies were not implemented properly. The regulator TRAI was set up after delays
and confusion and even after its creation, DoT continued to fight with it in courts. It
was also affected by the resource crunch, and financing options like BOT, BOOT and
BOLT was not used at all. The major policy direction it showed was to allow private
sector entry in both basic and value added services. The intention, though noble failed
to achieve its goals because of improper implementation, the economic costs are still
borne by the end user.
The telecom sector has witnessed some fundamental structural and institutional
reforms in the past decade. telecom equipment manufacturing was completely
deregulated in 1991. Value-added services (including cellular services) were thrown
open to private sector participation in 1992. Basic services were opened to private
participation in 1994 by dividing the country into 21 telecom Circles and allowing
one private operator per Circle to compete with DoT. An independent telecom
regulatory Authority of India was set up in 1997. A new Policy for Internet Service
Policy Providers (ISPs) was announced in 1998 allowing independent service
22
providers to enter the sector ending the earlier monopoly of VSNL. Reorganization of
DoT, separating policy making function and service provision and corporatization of
DoT's operational network are two major institutional reforms, which need to be
implemented.
India has a fast-growing cellular services market with excellent potential for the
future. With almost half a million subscribers amassed in less than two years of
operation, India's growth tempo has far exceeded that of numerous other markets,
such as China and Thailand, which have taken more than five years to reach the
figures India currently holds. The number of mobile phone subscribers in the country
would exceed 50 million by 2005 and cross 300 million by 2010, according to
Cellular Operators Association of India (COAI) According to recent strategic research
by Frost & Sullivan, Indian Cellular Services Market, such growth rates can be
greatly attributed to the drastically falling price of cellular handsets, with price
playing a fundamental role in Indian subscriber requirements. Subscribers in certain
regions can acquire the handset at almost no cost, thanks to the mass-market stage
these technologies have reached internationally. The Indian consumer can buy a
handset for $300 or less. This should lead to increased subscribership. By 2003,
revenues are expected to reach $1.7 billion.
All India Cellular Subscribers
3000000
2500000
2000000
1500000
1000000
500000
0
All India Cellular

Subscribers
May Jun Jul Aug Sep Oct
Months
New Telecom Policy

Cellular Mobile Service Providers
23
The Cellular Mobile Service Providers (CMSP) shall be permitted to provide mobile
telephony services including permission to carry its own long distance traffic within
their service area without seeking an additional licence. Direct interconnectivity
between licenced CMSPs and any other type of service provider (including another
CMSP) in their area of operation including sharing of infrastructure with any other
type of service provider shall be permitted. Interconnectivity between service
providers in different service areas shall be reviewed in consultation with TRAI and
the same would be announced by August 15, 1999 as a part of the structure for
opening up national long distance. The CMSP shall be allowed to directly
interconnect with the VSNL after opening of national long distance from January 1,
2000. The CMSP shall be free to provide, in its service area of operation, all types of
mobile services including voice and non-voice messages, data services and PCOs
utilizing any type of network equipment, including circuit and/or packet switches, that
meet
the
relevant
International
Telecommunication Union (ITU) / Telecommunication Engineering Center (TEC)

standards.CMSP would be granted separate licence, for each service area. Licences
would be awarded for an initial period of twenty years and would be extendible by
additional periods of ten years thereafter. For this purpose, service areas would be
categorized into the four metro circles and Telecom circles as per the existing policy.
CMSP would be eligible to obtain
licences for any number of service areas.
Availability of adequate frequency spectrum is essential not only for providing

optimal bandwidth to every operator but also for entry of additional operators. Based
on the immediately available frequency spectrum band, apart from the two private
operators already licenced, DOT / MTNL would be licenced to be the third operator in
each service area in case they want to enter, in a time bound manner. In order to
ensure level playing field between different service providers in similar situations,
licence fee would be payable by DoT also. However, as DoT is the national service
provider having immense rural and social obligations, the Government will reimburse
full licence fee to the DoT
It is proposed to review the spectrum utilisation from time to time keeping in view the
emerging scenario of spectrum availability, optimal use of spectrum, requirements of
market, competition and other interest of public. The entry of more operators in a
24
service area shall be based on the recommendation of the TRAI who will review this
as required and no later than every two years.
CMSP operators would be required to pay a one-time entry fee. The basis for
determining the entry fee and the basis for selection of additional operators would be
recommended by the TRAI. Apart from the one time entry fee, CMSP operators
would also be required to pay licence fee based on a revenue share. It is proposed that
the appropriate level of entry fee and percentage of revenue share arrangement for
different service areas would be recommended by TRAI in a time-bound manner,
keeping in view the objectives of the New Telecom Policy.
Bharti Aircel
Telecom giant Bharti Aircel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti
Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has
successfully launched an international venture with EL Rothschild Group to export
fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Aircel comes to you from Bharti Aircel Limited, Indias largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Aircel 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.
The businesses at Bharti Aircel have been structured into three individual strategic
business units (SBUs) - mobile services, broadband & telephone services (B&T) &
enterprise services. The mobile business provides mobile & fixed wireless services
using GSM technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities. The Enterprise services provide end-toend telecom solutions to corporate customers and national & international long
distance services to carriers. All these services are provided under the Aircel brand.
Business Divisions
Bharti Aircel offers GSM mobile services in all the 23-telecom circles of India and is
the largest mobile service provider in the country, based on the number of customers.
25
The group focuses on delivering telecommunications services as an integrated

offering including mobile, broadband & telephone, national and international long
distance and data connectivity services to corporate, small and medium scale
enterprises.
The group offers high speed broadband internet with a best in class network. With
Landline services in 94 cities we help you stay in touch with your friends & family
and the world.
The Company compliments its mobile and broadband & telephone services with
national and international long distance services. It has over 35,016 route kilometers
of optic fibre on its national long distance network. For international connectivity to
east, it has a submarine cable landing station at. For international connectivity to the
west, the Company is a member of the South East Asia-Middle East-Western Europe
4 (SEA-ME-WE-4) consortium along with 15 other global telecom operators.
26
Our Brand
Aircel was born free, a force unleashed into the market with a relentless and
unwavering determination to succeed. A spirit charged with energy, creativity and a
team driven to seize the day with an ambition to become the most globally admired
telecom service. Aircel, after just ten years, has risen to the pinnacle of achievement.
As India's leading telecommunications company Aircel brand has played the role as a
major catalyst in India's reforms, contributing to its economic resurgence.
Today we touch peoples lives with our Mobile services, Broadband services, to
connecting India's leading 1000+ corporates. We also connect Indians living in USA
with our callhome service.
Our Vision & promise
By 2010 Aircel will be the most admired brand in India:
Loved by more customers
Targeted by top talent
Benchmarked by more businesses
We at Aircel always think in fresh and innovative ways about the needs of our
customers and how we want them to feel. We deliver what we promise and go out of
our way to delight the customer with a little bit more
Corporate Responsibility at Bharti Aircel

Overview
At Bharti, CSR is a way of life. Each department and employee strives to be sensitive
to the stakeholders and environment within their work context. Bharti encourages
employees to take decisions and design business-linked processes that are sensitive to
communities and environment.
Corporate Social Responsibility (CSR) in Bharti encompasses much more than only
social outreach programs. It is an integral part of the way Bharti conducts its business.
The essence of Bhartis commitment to Corporate Social Responsibility is embedded
in the Corporate Values, which stem from its deepest held beliefs. These Values are:
To be responsive to the needs of our customers
To trust and respect our employees
To continuously improve our services innovatively and expeditiously
27
To be transparent and sensitive in our dealings with all stakeholders

We encourage our employees to take decisions and design business processes,
keeping in mind the following:
Ethics, fairness and being correct
Meeting and going beyond compliances and legal requirements
Showing respect and sensitivity towards stakeholders and communities, and
Nurturing the environment
We practice our CSR beliefs and commitments through a threepronged approach:

Engaging with stakeholders
Ensuring stakeholder sensitive policies and practices
Undertaking programs for our employees, community and environment
Bharti Aircel sensitizes its employees towards CSR issues at various forums. We feel
that it is important that each employee should understand the importance of
environmental, social and economical aspects while taking business decisions. At
Bharti, each employee is sensitized towards CSR issues and thus operations at the
ground level are influenced. Such sensitization exercises have resulted in many
socially and environmentally sensitive decisions on the ground. For example,
Confidence Plan for hearing impaired people, covers noise-making DG sets at extra
cost, investing in consumer awareness campaigns to ensure safe use of mobile are
some examples of the above.
Employees
Overview
We believe that one of the most important drivers of growth and success for any
organization is its people. At Bharti Aircel, our Mantra for employee delight focuses
on 5 Ps People, Pride, Passion, Processes and Performance.
Bharti Aircel has been recognized among the Best Employers in the Country for two
successive years being 14th in 2003 & jumping ahead of several other large
conglomerates to an enviable position of the 2nd Best Employer in the Country in
2004. This is a clear demonstration & acknowledgement of the robust, progressive,
28
people as well as business aligned Human Resource practices, which the organization
has developed and implemented remarkably in a very short span of time.
Bharti Aircel follows an open door policy to approach the management, which
helps resolve issues with mutual agreements. We encourage people to stand up against
any unfair treatment for which we have the Office of the Ombudsman, where
employees can raise any issues regarding business and workplace conduct. Bharti
ensures transparency through the various communication policies, strategies and
plans. . Regular Employee Communication Forums provides a platform for the
employees to raise issues that require resolution.
Our leaders strongly believe in facilitating and initiating activities that help employees
manage their health and well-being. Our focus always remains to redefine leadership;
we develop leaders who enable performance and inspire their people to unleash their
potential. Our people orientation reflects in our vision of being targeted by top
talent, and a key aspect of our business focus building a best-in-class leadership
team that nurtures talent at every level.
Employee friendly HR policies have been put in place, which amply reflect the
organizations concern for its people. Some typical examples of these policies and
practices include a family-day at office, half day leave for birthdays, gifts for
anniversaries, compulsory 10 days off, festival celebration with family, no official
meetings on weekends, five day weeks, concierge services, call center engagement
programs etc. These care policies and practices are applied across the organizational
levels without any discrimination.
From self-management workshops to aerobics sessions, yoga classes to provision of
relaxation/meditation rooms, we ensure that every employee keeps a check on his/her
fitness. Tie-ups with leading health service organizations enable our employees to
undertake periodical health check-ups depending upon their age. This facility is also
extended to employee family members at discounted rates. The company provides
Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses,
accidents and hospital coverage for serious ailments. Apart from these specific
engagements, we regularly organize health check up camps, eye check-up camps and
stress management sessions. Some of our offices have opened gymnasiums/fitness
facilities to ensure that the fitness fanatics do not have to worry about time constraints
29
to remain fit. At many of our locations, we have hired psychologists who undertake
personal counseling sessions for employees.
Bharti Aircel offers a flexible compensation structure to its employees wherein the
employees have the flexibility to structure their fixed component of their
compensation according to their requirements within the ambit of legislation.
Environment, Health and Safety

Overview
At Bharti we believe in the philosophy to refuse, reduce, reuse and recycle. The
company has taken many initiatives in this regard, both within the offices for the
benefit of our employees; and for outside world for the convenience of the people
Few examples of the initiatives taken are mentioned below:

(a) Most of the new Aircel buildings recycle waste water for sanitary and cooling of
equipment purposes e.g. DG sets and AC systems. These buildings also have rain
water harvesting systems for ground water replenishment where appropriate.
(b) All Aircel offices have energy efficient light fittings and DG sets. We also ensure
automation that enables energy savings in our buildings. Building Management
System (BMS) Intelligent Building concept is being followed in all the new Aircel
building and campuses that are coming up. The
BMS controls The Heating,
Ventilation and Airconditioning (HVAC) system,, electricity load management, water

management, parking management, security and safety systems to ensure an
efficiently run building on optimal resources.
(c) New buildings also incorporate the concept of and Energy Wheel which optimises
energy efficiency in buildings. The AC system in our buildings adds a certain amount
of fresh air periodically; In the process of adding this fresh air the cool air within the
building vents out which may result into higher usage of energy to bring the cooling/
temperature back. The Energy Wheel concept ensures that as we bring the fresh air in
it is pre-cooled thereby optimizing energy efficiency.
(d) Air quality is checked periodically in all Bharti Aircel offices, and based on the
results, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken.
Water quality is also monitored in cooling towers for DG sets and Air Conditioner
systems so that water born diseases such as legionella, etc. are avoided.
30
(e) Use of air curtains on major office exits and double glazing also results in
significant energy saving.
(f)At the time of oil change in DG sets etc. the discarded oil for disposal is only sent
to companies/ vendors approved by the Central Pollution Control Board (CPCB) for
proper disposal as per CPCB approved processes. All Bharti Aircel offices follow the
basic requirements specified by the Pollution Control Board) and ensure statutory
compliance.
(g) All Bharti Aircel offices have fire alarm systems. Periodic fire drills are carried out
in Bharti Aircel offices as a practice. All Aircel offices are provided with First Aid
boxes and have identified people as First Aid specialists..
Bharti Aircel takes all its equipment from its key vendors, namely Nokia and
Ericsson, who comply with all the required health and safety norms. Each contract
with the supplier has a clause that they will comply with our code of conduct and each
year suppliers have to give Bharti Aircel a certificate that they are compliant. There is
an induction manual for sub-contractors to ensure that they follow all the safety and
statutory compliances as well as Bharti Standard Operating Procedures.
Bharti Aircel is in the process of finalizing its Environment/ Health & Safety Policy
(EHS) and will apply for ISO 14001 compliance within the next 3 years for each of its
facilities.
For outside world

Reduce Paper usage: Due to technological innovations such as e-bills and electronic
recharging, Bharti Aircel customers are given a chance to help save the environment.
This has led to the major achievement of paper savings of approximately 32,500 sq
meter every month. This leads to the saving of 96 trees every year. In addition, as per
calculations during 2005-06, and is continuously improving since then. We save
49,000 sq meter in plastic monthly as the reduced usage of paper coupons and bills.
These results are all the more remarkable, as these paper savings were achieved
despite our customer base increasing.
Sharing Infrastructure: We promote and believe in sharing of infrastructure (passive)
with other telecom operators. This ensures that we can continue to serve our
31
customers while utilizing minimum resources. This is of great help in nation like ours
where we have a huge burden on our natural resources
At present, we share around a quarter of our mobile cell sites across the country, with
other service providers.
We have extended our approach of sharing even for the rural areas, where it makes
lesser business sense for operators to roll out. Our efforts have been well
acknowledged by the regulator and the government, who have initiated efforts for
shared rural roll out .
Reducing Fuel Consumption due to travel: Bharti, having grown to be a large
company on many counts, faces the key issue of operations coordination. While one
would usually coordinate with others through face-to-face meetings, Bharti has
institutionalized the habit of using videoconferencing and intranet facilities to interact.
This significantly reduces the need for transport and thereby fuel consumption, it
saves on time and generally creates a much more efficient working atmosphere.
Bhartis earnings calls, i.e. sharing the results with our stakeholders, also happen via
audio-bridge. This enables investors and analysts world-wide to link in to the call and
raise queries. Bharti does not stop at providing these facilities for internal use though.
By offering our services, we enable people across the country to follow the same path
and cut down on transport. This is not only convenient; it also saves tremendous fossil
fuel consumption.
Green-Shelters: Another key initiative has been the deployment of environmental
friendly green-shelters at around 7,000 sites. These green-shelters use high insulation
material and Passive Cooling techniques like PCM, a thermal salt, for indoor Base
Transceiver Stations (BTS). Due to its high freezing point, PCM provides cooling for
4 to 5 hours without any Air conditioning, thus negating any need of electrical power
or diesel generator during that time. This not only saves cost but also minimizes
pollution. These green-shelters also keep noise at a minimum. Bharti is the first
company in India to initiate such a measure, and is well ahead of governmental
regulations on the matter.
Our Green shelter initiative has been appreciated by operators across the world and is
being studied for mass deployment in many countries.
32
Free-Cooling is another technique that we use to maintain temperature level during

night hours by circulating cooler natural air from outside to inside the shelter by
reworking air conditioner flows. This has reduced air conditioner consumption by
almost 30%.
Bharti Aircel is also working with its suppliers and experimenting with alternate
sources of energy like solar, wind, bio-fuel/ hydrogen to further reduce environmental
impact. We are very keen to look at the viability of these technologies once
experiments are being found to be successful like in the case of Green Shelters.
Advertisement Material: Bharti Aircel uses aqua-based ink for all its in-shop
branding, in spite of its cost being three times the cost of ink which is normally used.
The aqua-based ink is environment friendly and does not emit any fumes and hazard.
Sometimes flex materials are used for hoardings, but since they are not disposable
these hoardings are donated to poor people so that they can use it as roof-material on
their huts.
Community Initiatives
Overview
Corporate Social Responsibility is embedded in, and built upon, the stated values of
Bharti the institution. These values guide all our activities and each employee is
encouraged to take decisions and design business-linked processes that are sensitive
to communities and environment.
We have an obligation to fulfill to society and the communities in which we operate,
and help improve the quality of life for everyone, today and in the future.
Based on the basic guidelines and direction provided in the Code of Conduct, Bharti
has undertaken many community programs.
33
Bhartis contribution to society is structured through two channels,

namely,
(a) Bhartis Corporate Social Responsibility (CSR) Initiatives, including initiatives
undertaken by way of employee mobilization as well as running environment related
programs; and
(b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda
of Bharti Group of Companies
(a) CSR Initiatives @ Bharti Aircel

Bharti Aircel has a nation-wide presence that has grown at an exponential rate in the
recent years. Each local office undertakes special programs for the local community,
thereby reaching out to people. Many projects like material collection drive and blood
donation camps are organized for the welfare of the underprivileged community.
Bharti constantly searches for new, innovative ways of reducing the consumption of
resources, with the aim of leaving a better and greener earth for future generations.
Response to Disaster
Bharti Aircels response to Tsunami Disaster: Bharti Aircel undertook the following
initiatives for immediate relief and rehabilitation to Tsunami victims:
Built a mobile network in Andaman & Nicobar islands in less than 3 months to aid
rapid rehabilitation of the island
Donated Rs. 1 Crore to the Prime Ministers Relief Fund, in addition to contributions
from employees
Created 29 Aircel Crisis Communications centres in Tamil Nadu
Raised resources for Tsunami victims by initiatives such as a Benefit Cricket Match
Employees of Bharti Aircel also contributed through a Donation Collection Drive,
with a difference. All employees were not only given the freedom to choose the
amount they wished to donate, but also the agency they wished to donate to.
One if the most memorable actions was the heroic way in which a Bharti employee
re-established connections after Tsunami hit Tamil Nadu. After being washed away by
the wave, this employee went back to work on restoring connectivity for the struck
region. Word of his dedication spread within Bharti and he received tremendous
34
response from his fellow Bhartians. Over 80 emails addressed to him were and
presented to him in recognition.
Bharti Aircels response to Assam, Bihar and West Bengal floods: Bharti Aircel also
partnered with an NGO to provide relief to the flood victims in the flood hit areas of
Assam, Bihar and West Bengal. A Material Collection Drive was undertaken across
Bharti offices, for collection of material such as clothes, utensils, footwear, blankets,
dry ration and monetary donations. 55 cartons of clothes and 65 kilos of ration were
dispatched, in addition to monetary contributions.
35
INTRODUCTION TO THE COMPANY

AIRCEL
Bharti Aircel
Telecom giant Bharti Aircel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti
Retail Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has
successfully launched an international venture with EL Rothschild Group to export
fresh agri products exclusively to markets in Europe and USA and has launched
Bharti AXA Life Insurance Company Ltd under a joint venture with AXA, world
leader in financial protection and wealth management.
Aircel comes to you from Bharti Aircel Limited, Indias largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Aircel 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.
enterprise services. The mobile business provides mobile & fixed wireless services
using GSM technology across 23 telecom circles while the B&T business offers
broadband & telephone services in 94 cities. The Enterprise services provide end-toend telecom solutions to corporate customers and national & international long
distance services to carriers. All these services are provided under the Aircel brand.
Business Divisions
Bharti Aircel offers GSM mobile services in all the 23-telecom circles of India and is
the largest mobile service provider in the country, based on the number of customers.
36
The group focuses on delivering telecommunications services as an integrated

offering including mobile, broadband & telephone, national and international long
distance and data connectivity services to corporate, small and medium scale
enterprises.
The group offers high speed broadband internet with a best in class network. With
Landline services in 94 cities we help you stay in touch with your friends & family
and the world.
The Company compliments its mobile and broadband & telephone services with
national and international long distance services. It has over 35,016 route kilometers
of optic fibre on its national long distance network. For international connectivity to
east, it has a submarine cable landing station at. For international connectivity to the
west, the Company is a member of the South East Asia-Middle East-Western Europe
4 (SEA-ME-WE-4) consortium along with 15 other global telecom operators.
http://bhartiaircel.in/index.php?id=14
Bharti Aircel Limited

(A Bharti Enterprise)
Qutab Ambience (at Qutab Minar), Mehrauli Road,
New Delhi 110030
Tel. No. : +91 11 4166 6000
Fax No. : +91 11 4166 6011/12
http://www.bhartiaircel.in/index.php?id=8
37
Bharti Aircel is one of India's leading private sector providers of telecommunications

services based on an aggregate of 42,685,530 customers as on May 31, 2007,
consisting of 40,743,725 GSM mobile and 1,941,805 broadband & telephone
customers.
enterprise services. The mobile services group provides GSM mobile services across
India in 23 telecom circles, while the B&T business group provides broadband &
telephone services in 94 cities. The enterprise services group has two sub-units carriers (long distance services) and services to corporates. All these services are
provided under the Aircel brand.
Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National
Stock Exchange of India Limited (NSE).
Partners
The company has a strategic alliance with SingTel. The investment made by SingTel
is one of the largest investments made in the world outside Singapore, in the
company.
The companys mobile network equipment partners include Ericsson and Nokia. In
the case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others. The Company
also has an information technology alliance with IBM for its group-wide information
technology requirements and with Nortel for call center technology requirements. The
call center operations for the mobile services have been outsourced to IBM Daksh,
Hinduja TMT, Teletech & Mphasis.
The company's unique strategic outsourcing model has been studied and documented
by Harvard Business School as a case study which is available for download at:
www.hbsp.harvard.edu.
Factsheet At-a-glance guide to Bharti Aircel
Organization Structure Organisation chart depicting the Senior

Management positions
Shareholding Structure Details on the latest shareholding structure and

major shareholders, as on March 31, 2007
38
Awards & Recognitions Laurels recognising Bharti's consistent efforts.
Factsheet
Name
Bharti Aircel Limited.
Business
Provides mobile, broadband & telephone (fixed line) and
Description
enterprise services (carriers & services to corporates)
Established
July 07, 1995, as a Public Limited Company
Proportionate
Revenue
Proportionate
EBITDA
Shares in Issue
Listings
Rs. 184,202 million (year ended March 31, 2007-Audited)

As per Indian GAAP Accounts

As per Indian GAAP Accounts
1,895,934,157 as at March 31, 2007
The Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)
Market
Capitalisation
Customer Base
Operational
40,743,725 GSM mobile and 1,941,805 broadband & telephone

(fixed line) customers (Status as at month ended May 31, 2007)
Provides GSM mobile services in all the 23 telecom circles in
39
India, and was the first private operator to have an all India
Network
presence.
Provides broadband (DSL) and telephone services (fixed line) in
94 cities in India.

Registered Office

New Delhi - 110 030
Tel. No.: +91 11 4166 6000
Fax No.: +91 11 4166 6011/12
Organisation Structure
As an outcome of a restructuring exercise conducted within the company; a
new integrated organizational structure has emerged; with realigned roles,
responsibilities and reporting relationships of Bhartis key team players. With effect
from March 01, 2006, this unified management structure of 'One Aircel' will enable
continued improvement in the delivery of the Groups strategic vision.
40
Bharti Aircel - Organization Structure
Bharti Enterprises - Organization Structure
41
Bharti Enterprises - Organization Structure

Management Profiles
To view profile click on name:
Sunil Bharti Mittal
Rajan Bharti Mittal
Akhil Gupta
Manoj Kohli
Sarvjit S. Dhillon
Daljit Singh
Viresh Dayal
Senjam Raj Sekhar
Ashok Juneja
Dr. Jai Menon
Hemant Sachdev
Narender Gupta
Norman Donald Price IV
Tina Uneken
Vijaya Sampath
Harish Dua
Sanjay Kapoor
Sanjay Nandrajog
Atul Bindal
Jayant Khosla
K.Srinivas
N. Arjun
S. Asokan
Carol Borghesi
Gopal Vittal
S. L. Narayanan
http://www.bhartiaircel.in/index.php?id=191
42
Shares
The equity shares of Bharti Aircel are currently listed on National Stock Exchange of
India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Aircel offered
185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15
million through this process. The shares were over subscribed 2.56 times.
With this IPO, Bharti Aircel established certain important landmarks in the history of
the Indian capital market. Together with being the first 100% book building process
that this country has seen, the listing was completed within a record time of ten
working days. of the close of the issue. Moreover the process of allotment and issue
of shares was also completed within one day of the last day of pay-in.
The book running lead managers for the IPO were JM Morgan Stanley and DSP
Merrill Lynch and the registrars to the issue was Karvy Consultants Limited.
Share price data is delayed by approximately 15 minutes on BSE 1 and 5 minutes on
NSE2.
BSE1
Currency : Rupees
Code : 532454
Price
View Chart
824.65
Day High
828.45
Bid
821.60
Day Low
814.05
Offer
823.50
52 Week High
899.00
Change On Day
11.90
52 Week Low
343.00
Percentage Change
1.46%
Last Trade
20-06-2007
Opening Price
822.50
Prev. Closing
812.75
4:01PM
Daily Volume
NSE2
106,552
43
Currency : Rupees
Code
BHARTIARTLEQ
View Chart
Price
824.95
Day High
835.00
Bid
0.00
Day Low
814.00
Offer
824.95
52 Week High
882.05
Change On Day
13.10
52 Week Low
341.00
Percentage Change
1.61%
Last Trade
20-06-2007
Opening Price
835.00
Prev. Closing
811.85
3:57PM
Daily Volume
1,593,072
Corporate Governance
Bharti Aircel Limited firmly believes in the principles of Corporate Governance and
is committed to conduct its business in a manner, which will ensure sustainable,
capital-efficient and long-term growth thereby maximising value for its shareholders,
customers, employees and society at large. Companys policies are in line with
Corporate Governance guidelines prescribed under Listing Agreement/s with Stock
Exchanges and the Company ensures that various disclosures requirements are
complied in letter and spirit for effective Corporate Governance.
During the financial year 2003-04, your Company was assigned highest Governance
and Value Creation (GVC) rating viz. Level 1 rating by CRISIL, which indicates that
the companys capability with respect to creating wealth for all its stakeholders is the
highest, while adopting sound Corporate Governance practices.This rating was reaffirmed by CRISIL on April 20,2006.
Board of Directors
Audit Committee
Human Resource (HR)/ Remuneration Committee
ESOP Compensation Committee
Investors Grievance Committee
44
Memorandum of Association
Article of Association
Board of Directors
The Board of Directors of the Company has an optimum mix of Executive and NonExecutive Directors, which consists of three Executive and fifteen Non-Executive
Directors.
The Chairman and Managing Director, Mr. Sunil Bharti Mittal, is an Executive
Director and the number of Independent Directors on the Board is 50% of the total
Board strength. The independence of a Director is determined on the basis that such
director does not have any material pecuniary relationship with the Company, its
promoters or its management, which may affect the independence of the judgment of
a Director.
The Board members possess requisite skills, experience and expertise required to take
decisions, which are in the best interest of the Company.
The composition of the Board is as under:
Sunil Bharti Mittal
Rajan Bharti Mittal
Akhil Gupta
Rakesh Bharti Mittal
Chua Sock Koong
N. Kumar
Kurt Hellstrom
Donald Cameron
Paul O'Sullivan
Professor V.S Raju
Pulak Chandan Prasad
Bashir Abdulla Currimjee
Syeda Imam
Ajay Lal
Arun Bharat Ram
45
Francis Heng
Audit Committee
Composition of Audit Committee
The Audit Committee of Bharti Aircel Limited comprises of following 9 members,
two-third of which are independent directors.
S. No.
Member Director
Category
1.
N.Kumar (Chairman)
Independent Director
2.
Akhil Gupta
Executive Director
3.
Gavin John Darby
Non-executive director
4.
Francis Heng
Non-Executive Director
5.
Arun Bharat Ram
6.
Ajay Lal
7.
Bashir Currimjee
8.
Pulak Chandan Prasad
9.
Syeda Imam
Secretary
The Company Secretary or his/her nominee act as the Secretary of the

Committee.
46
Meetings
The Committee shall meet at least four times a year. The time gap between any
two meetings shall be less than 4 months.
Annual General Meeting
The Committee Chairman shall attend the Annual General Meeting.
Key Functions
The key functions of the Audit Committee include the following:
Oversight of the Companys financial reporting process and the disclosure of

its financial information, to ensure that the financial statements are true and
accurate and provide sufficient information.
Recommending to the Board, the appointment, re-appointment and, if

required, the replacement or removal of the statutory auditor and the fixation
of their audit fees.
Approval of payment to statutory auditors for any other services rendered by

the statutory auditors.
Reviewing, with the management, the annual financial statements before

submission to the Board for approval, with particular reference to:
i.
Matters required to be included in the Directors Responsibility

Statement, which forms part of the Boards report in terms of
clause (2AA) of section 217 of the Companies Act, 1956.
ii.
Changes, if any, in accounting policies and practices and reasons

for the same.
iii.
Major accounting entries involving estimates based on the

exercise of judgment by management.
iv.
Significant adjustments made in the financial statements arising

out of audit findings.
v.
Compliance with listing and other legal requirements relating to

financial statements.
vi.
Disclosure of any related party transactions.
vii.
Qualifications in the draft audit report.
Reviewing, with the management, the quarterly financial statements before

submission to the Board for approval.
47
Reviewing, with the management, performance of statutory and internal

auditors, adequacy of the internal control systems.
Reviewing the adequacy of internal audit function including the structure of

the internal audit department, staffing and seniority of the official heading the
department, availability and deployment of resources to complete their
responsibilities and the performance of the out-sourced audit activity.
Discussion with internal auditors with respect to the coverage and frequency
of internal audits as per the annual audit plan, nature of significant findings
and follow up thereof.
Reviewing the findings of any internal investigations by the internal auditors

into matters where there is suspected fraud or irregularity or a failure of
internal control systems of a material nature and reporting the matter to the
Board.
Obtaining an update on the Risks Management Framework and the manner in

which risks are being addressed.
Discussion with statutory auditors before the audit commences, about the
nature and scope of audit as well as post-audit discussion to ascertain any area
of concern.
Review the reasons for substantial defaults in the payment to the depositors,
debenture holders, shareholders (in case of non payment of declared
dividends) and creditors, if any.
To review the functioning of the Whistle Blower mechanism and the nature of
complaints received by the Ombudsman.
Carrying out any other function as is mentioned in the terms of reference of

the Audit Committee.
The un-audited/ audited quarterly financial results of the Company are also
specifically reviewed by the Audit Committee before these are submitted to the Board
for approval. Minutes of each Audit Committee meeting are placed before the Board
for noting.
The Audit Committee is empowered, pursuant to its terms of reference, to:
Investigate any activity within its terms of reference and to seek any
information it requires from any employee.
48
Obtain legal or other independent professional advice and to secure the

attendance of outsiders with relevant experience and expertise, when
considered necVodafoney.
Bharti Aircel Limited has instituted internal processes and systems to insure that the
Audit Committee has access to all the material information, and reviews on a regular
basis the following:
Management discussion and analysis of financial condition and results of

operations.
Statement of significant related party transactions (as defined by the audit

committee), submitted by management.
Management Certificates on Internal Controls and Compliance with laws &

regulations, including any exceptions to these.
Management letters / letters of internal control weaknesses issued by the

statutory auditors.
Internal audit reports relating to internal control weaknesses.
The appointment, removal and terms of remuneration of the Chief Internal

Auditor.
The financial statements, in particular the investments, if any made by the

unlisted subsidiary companies.
The Audit Committee is also presented with the following information on related
party transactions (whenever applicable):
A statement in summary form of transactions with related parties in the

ordinary course of business.
Details of material transactions with related parties, which are not in the
normal course of business.
Details of material transactions with related parties or others, which are not on
an arms length basis along with managements justification for the same.

New Delhi - 110 030
Tel. No.: +91 11 4166 6000
49
Fax No.: +91 11 4166 6011/12

Email: ir@bharti.in
Bharti Aircel to Observe Silent period from June 29, 2007
Category: Recent Highlights, FY2007-08, Press Releases
15.06.07
New Delhi, June 15, 2007- Bharti Aircel, Indias leading private telecom services
provider would observe a 'Silent Period' from the close of business (6:30 p.m.) on
June 29, 2007 (Friday) till the declaration of results for the first quarter ended June
30, 2007, as a commitment towards highest level of corporate governance. Details
about the quarterly results announcement and the earnings call will be made available
on
the
website.
The practice of silent period does not refrain the company and its representatives from
any press conference & public dissemination of information. The observation of silent
period is only a practice and hence does not imply any legal obligation for the
company under any circumstances.

Bharti Aircel Limited is one of Indias leading private sector providers of
telecommunications services with an aggregate of 42.68 million customers as of end
of May07, consisting of 40.74 million mobile customers. Bharti Aircel has been rated
among 10 best performing companies in the world in the Business Week IT 100 list.
Bharti Aircel is structured into three strategic business units - Mobile services,
Broadband & Telephone (B&T) services and Enterprise services. The mobile business
provides mobile & fixed wireless services using GSM technology across 23 telecom
circles. The B&T business provides broadband & telephone services in 94 cities. The
Enterprise services provide end-to-end telecom solutions to corporate customers and
national & international long distance services to carriers. All these services are
provided under the Aircel brand. Aircels high-speed optic fiber network currently
spans over 40,000 kms covering all the major cities in the country. The company has
two international landing stations in Chennai that connects two submarine cable
systems - i2i to Singapore and SEA-ME-WE-4 to Europe. For more information,
Aircel comes to you from Bharti Cellular Ltd. A consortium of giants in the
telecommunication business - Singtel, Singapore, Telecom Italia, Italy, and Bharti
50
Enterprises India. British Telecom, UK had been one of the key partners in Aircel
with 44% stake but has recently backed out of all its Asian operations, leading to the
recent JV between Singtel and Bharti Telecom. Aircel launched it's services in Delhi
on November 14,1995. It has at present over two lac twenty thousand subscribers. In
it's five years of pursuit of greater customer satisfaction, Aircel has redefined the
business through marketing innovations, continuous technological upgradation of the
network, introduction of new generation value added services and the highest standard
of customer care.
Aircel has consistently set the benchmarks for the Indian cellular
industry to follow. Aircel has taken the lead on many occasions. It has
been the first
to launch Cellular service in Delhi on November, 1995.
operator to revolutionalize the concept of retailing with the inauguration of

Aircel Connect (exclusive showrooms)in 1995. Today Aircel has 17 Customer
Care Touch Points and over 300 dealers in Delhi and NCR towns.
to expand it's network with the installation for second mobile switching center
in April, 1997 and the first in Delhi to introduce the Intelligent Network
Platform First to provide Roaming to its subscribers by forming an association
called World 1 Network. First to provide roaming facility in USA. Aircel has
the largest automatic roaming service "SMART ROAM"- National in 350
cities in India and "SMART ROAM" - International in over 60 countries and
95 networks all over the world.
Consecutively for four years 1997,1998,1999 and 2000, Aircel
has been voted as the Best Cellular Service in the country and
won the coveted Techies award.
Aircel has consistently strived hard to, not only deliver as per
customer expectation, but also go beyond that. According to its those at Aircel, their
vision, mission and values are as follows.
51
VISION
To make mobile communications a way of life and be the customers' first choice
MISSION
We will meet the mobile communication needs of our customers through :
Error-free service delivery
Innovative products and services
Cost efficiency
VALUES
We will always put our customers first. We will always trust and respect each other.
We will respect our associates as we respect each other. We will work together
through a process of continuous improvement
Coverage of Aircel
Aircel cellular service covers whole of Delhi and the adjoining satellite cities as
shown in the map. It boost that the coverage is uninterrupted and covers the widest
area. Vodafone which more or less covers the same area will give Aircel a toss in the
future when its partner Vodafoneison which is planning to consolidate all its Indian
operation and give its customers a wider reach in term of autoroam. Player who
provides a better service in this respect will have a edge in the future as we can see the
way people and business is moving out of Delhi.
PRODUCTS
Post Paid Card
Pre Paid Cash Card
Post Paid Card
Business Lifestyle Plan
Aircel Standard
Leisure Plan
Aircel Easy
How much does it cost

52
Security Deposit (Refundable)

Activation Charges
Total
Rs. 2000
Rs. 1260
Rs. 3260
Note: The above are one time entry cost. The deposit is completely refundable.
Airtime Rates
Business Lifestyle Plan
Monthly Rental
Outgoing Rates(applicable 24 hours)
Incoming Rates(applicable 24 hours)
The rates are valid 24 hours a day/ 7 days a week
Rs. 625 per month

Rs. 8 per minute
Rs. 1 per minute
Aircel Standard Plan

Monthly Rental
Rs. 475 per month

Rs. 4 per minute(Outgoing and
Standard Hours(10 am to 9 pm)

Concession Hrs-I(8 am to 10 am & 9 pm to 12 midnight)
Concession Hrs-II(12 midnight to 8 am)
Incoming)
Rs. 3.90 per minute(Outgoing and
Incoming)
Rs. 2.90 per minute(Outgoing and
Incoming)
Billing pulse is of 30 seconds. On Sundays and National Holidays (15th Aug, 26th Jan
& 2nd Oct) the tariff rates are of Rs. 2.90 per minute (midnight to 8 am) & Rs. 3.90
per minute (8 am to midnight).
Aircel Leisure Plan
Monthly Rental
Rs. 525 per month
Incoming & Outgoing Rates
8 pm to 8 am (Weekdays)
50 paisa per 30 seconds
8 am to 8 pm (Weekdays)
Rs. 3 per 30 seconds
Sundays & National Holidays (all 24 hours)
50 paisa per 30 seconds
Weekdays are Monday to Saturday. National Holidays are 15th Aug, 26th Jan & 2nd
Oct. The billing pulse is 30 seconds on all days.
Aircel Easy
Monthly Rental
Rs. 525 per month

Outgoing
Incoming
Rs. 6.00 per
Rs. 2.00 per
Peak Rate
minute
53
minute
Standard Rate
Off Peak Rate
Rs. 6.00 per
Rs. 2.00 per
minute
Rs. 6.00 per
minute
Rs. 2.00 per
minute
minute
Pre Paid Cash Card

Magic Pre Paid Connection
What is Magic?
Magic Ready Cellular Card is your ready-to-use, no-hassle cellular connection. It
comes pre-activated with STD/ISD calling facility. Backed by Aircel, the leading
cellular operator in India, it gives you crystal clear communication in entire Delhi,
Ghaziabad, NOIDA, Gurgaon, Faridabad and Ballabhgarh.
Highlights
MAGIC... the simplest way to go cellular
Wide Availability
Magic Ready Cellular Card and Magic Recharge Cards are available widely all over
the city at over 1800 outlets.
No applying
Magic is available across the counter. You do not need to apply in advance or go
through complicated formalities to get connected.
54
Instant Connectivity
Magic Ready Cellular Card can be used as soon as it's bought. Your connection is preactivated with a host of other services.
Compatible with all Handsets
With only Magic, you are assured that it would work with all models of GSM cellular
handsets.
No Bills
No more keeping track of bills every month. With Magic, you pay when you want and
as much as you need.
Total Cost Control
Magic gives you complete control over your cellular expenses every month. The
friendly IVR service tells you your balance, free of cost, whenever you desire.
Convenient Recharging
Recharging your Magic card is very simple. Whenever your balance is running low,
just buy a recharge card of value most suitable or recharge on-line.
Free Home Delivery
Just call "Dial-a-Magic' at 333 (toll free) from your Magic to place the order, and get
the card delivered at your preferred address at no extra cost. Currently this service is
available in Delhi and Gurgaon only.
How does it work?
When you buy a Magic Ready Cellular Card pack you get a SIM card and a recharge
card in the pack. Your Magic SIM card is already activated and just needs to be loaded
with calling value, which you can do by using the Magic Recharge Card.
This calling value is valid for a pre-defined period called the validity period.
You can make and receive calls only during this validity period. As and when
you make or receive calls the calling value balance on your Magic Card
account keeps reducing as per the applicable airtime rates. You must get your
Magic Card recharged before the calling value is over or the validity period
ends. Magic Recharge Cards are widely available at over 2400 outlets spread
across the city in convenient denominations of Rs.500, Rs.1000, Rs.2000 and
Rs.3000.
55
Every time you recharge your Magic Card you get a credit of calling value
which has a new validity period attached to it. The validity period is followed
by a grace period of 15 days during which no calls can be made or received,
but the Magic Card Account can be recharged. During the grace period you
can also order for a Magic Recharge Card to be delivered at your doorstep,
absolutely free of cost, by simply dialing 333 from your Magic.
MAGIC ... the most affordable cellular
No Rentals
No Security Deposits
Pre-activated STD/ISD
Free CLI
Cost Package
Sadasdasd
Magic "Regular" pack
MRP
Inclusive of :
Calling Value
Rs. 1525
Activation Fee
Rs. 500
Processing Fee
Rs. 166.67
Service Tax
Rs. 72.62
Rs. 785.71
Recharging Magic Card

One can either recharge Magic online or purchase a recharge card from any of our
outlets spread across the city. Recharge cards are available in four convenient
denominations of Rs.500, Rs. 1000, Rs. 2000 and Rs 3000.
56
Technology:
In no other service or business is technology such a major factor. Sales and marketing
are futile without a sound technological base. Hence we analyze Aircel on the basis
of this parameter.
Technological facets in cellular services are explained and the level of expertise of
both players stated.
Call set up time:
This is the time that it takes a user to get connected after the completion of the dialing
process.
Presently 8-30 seconds is considered normal set-up time.
Aircels call set up time is generally within this range.
Capacity Call congestion:
This is the quality of getting calls through even in high user density areas.
Aircel provides better customer satisfaction.
This will enable them to increase their customer base leading to increased revenues
in the future.
Voice Quality and Coverage
It is the clarity of transmission. In city centers this quality is not difficult to maintain.
However it becomes very important when the transmission is being directed to or
from
under ground locations, from behind tall
building and structures , narrow and
congested city interiors.

Aircel provides better quality in the above mentioned. The reason for this is the
better infrastructure and technology.
Customer care
In one of the market researches, consumers described MOBILE TELEPHONY as the
Dil Ka Rishta. And always taking notice were the 2 giants AIRCEL and
VODAFONE. As the passage of time has added importance to the above concept,
both these organizations have tried getting the upper hand at providing their clientele
with customer care and services that wireless technology can bring to them
57
Our foray into deciding the leader in this quest has left us with extremely close
results.
We looked at this competition at 2 different stages:
Customer care at the point of making the sale:-
For both these concerns, this translated into providing smoothness of transaction
for the customer AIRCEL had been established to posses 3 core
values.Leadership, Performance and Dynamism. In its quest for customer care, it
embarked upon a campaign intended to add warmth to these core values. It was
felt that the creative should reflect humane yet aspirational, family-centric yet
reachable and softer brand values.
After-sales service: The aspect of comfort should continue even after a customer has made an
initial purchase, and both corporations have made it a locus point of their
strategies. AIRCEL and VODAFONE both have in their arsenal an impressive
number of after sales service stations. AIRCEL is planning to build a network
of over a dozen AIRCEL CUSTOMER CENTRES from the present number
of 2. VODAFONE too has an extremely strong sense of reassurance
emanating from it`s after sales back-up. AIRCEL TOUCH POINTS
Created to serve as lifestyle style establishments, their number is expected to
go up to about 50 in Delhi itself.
SWOT ANALYSIS
Strength:
Technology
Both the facets of technology i.e. backbone as well as value added services
have already been mentioned earlier. Aircel is performing up to the mark in
both areas and hence it is strength but in the future it shall have to upgrade at
even faster as more players especially multinationals enter the fray.
Customer care
Aircel prides itself on being really close to its customers, it is as explained

earlier
58
investing heavily in this area.
Market share
Since Aircel was a first cellular provider it has always had the highest market
share as far as customer base is concerned.
Brand & promotions
Aircel as a brand in more prevalent in the customers mind than that of

Vodafone. Its promotion has always been of connectivity and a good live than
promoting cellphones. It has a strong brand image and always uses
promotional strategies that are used to communicate to a mass of people, one
being hoardings at the bus stops.
Weakness
Losing lead on technical expertise

Though Aircel has managed to keep its nose ahead on basic technical
aspects of telecommunication, Vodafone backed by Hutchison & MTNL are
bridging the gap.
Susceptible to a price war

A price war is a distinct possibility since Orange may choose this as a
strategy to Upstage Aircel. MTNL is also likely to make a strong bid to
fight on the price front. Bharti can ill-afford to wage a price war as it has
already investment heavily on the telecommunication infrastructure front.
Outer Delhi range inadequate

On and around the outskirts of Delhi the voice and signal quality of Aircels
services tends to deteriorate. This is a source of irritation and hence
customer dissatisfaction.
Opportunities
Change in customer profile

it has been observed that the customer profile has shifted from rich
businessmen
to youngsters, traders, executives, working women etc.
This is a segment, which is yet to be tapped.

The lower middle class is yet another segment to be targeted as first
time users
59
Technical manpower dearth at VODAFONE
An exodus of lower level technical staff has weakened VODAFONEs

maintenance and technical support base. This could lead to a fall in quality
of their systems. It is a good time for Aircel to score over VODAFONE on
this front.
Growth of cell users
The past couple of years has seen a nearly exponential growth in cell
subscribers. This is because of the drop in handset prices and tariff rates.
These two prices are likely to go down further in the future due to
technological breakthroughs and Government policies. Hence a huge customer
base is to open up.
Threats:
Vodafone is gaining technologically

Vodafone has now acquired outsourcing for all its new projects.
Motorola is the company, which provides this outsourcing. This though
expensive has greatly increased the efficiency and speed of Vodafones
projects. It is a big challenge for Aircel; as its technological superiority
could be challenged which would seriously affect its status as market
leader of cellular services.
Vodafone: deeper pockets!!

Hutchison, the cellular giant has started giving Vodafone technological
and financial support. As a result it has made it possible for Vodafone
to expand and improve all its operations be it on the services,
promotion, advertising or marketing fronts. This is a cause of worry for
Aircel as Vodafone would be a greater force to reckon with, given the
advantages cited.
Third and Fourth players
60
MTNL is to be the third player in the Delhi circle. It has already got
most of the Infrastructure in place for commencement of operations.
They have put the infrastructure in place by acquiring the expertise
from LUCENT Technologies. MTNL also has control of the landline
systems, which exist.
Another advantage is the government backing that MTNL will always
enjoy.
61
MARKETING STRATEGY OF AIRCEL

AIRCEL'S STRATEGY TO PENETRATE NEW SEGMENTS
By Our Staff Reporter
The Vice President, Marketing, Bharti Tele-Ventures, Prtik Pota (left), with the
Director Mobility, Bharti Cellular, Atul Binda, at a press conference in New
Delhi on Tuesday. Photo: Kamal Narang
NEW DELHI, DEC. 21. Focusing its attention towards youth, women and senior
citizens, cellular service provider Aircel today unveiled its new market segmentation
strategy by introducing new pre-paid and post-paid plans. The new plans offer lower
call rates, more value-added services and attractive payment plans.
Hoping that the new plan would add to its revenue and further increase its penetration
in new segments of mobile users, the company said while "Friendz" pre-paid plan was
62
focused at younger generation, the two new post-paid plans were for women and
senior citizens with tailor-made features as per their specific requirements.
According to Atul Bindal, Chief Marketing Officer and Director (Mobility), Bharti
Cellular Ltd., the new offerings were being introduced in 20 circles.
Mr. Bindal said "Friendz" pre-paid connection would attract those between 15-19
years of age that had several interesting features.
Similarly, the "Ladies Special" plan was to allow more and more women to use
mobile phones that had become a necessity today, said Mr. Bindal, adding that the
new scheme would give them special discounts. The plan also offers women the
option to club the monthly bills with that of their spouses. And for those who are
above 60 years of age, Aircel has new post-paid plan, Seniors, where subscribers get
discount on one STD number and one local Aircel number. Besides, subscribers of
this plan would get special discounts for health check-ups and would have a facility to
club bills with that of their children, Mr. Bindal added.
Strategies for Future to retain its market share
Target markets
Lower middle class

This segment has not yet been tapped by any of the cellular service providers.
Since these would be first time users in the lower income group the price will
be a major factor. Aircel will have to model its price structure to accommodate
this segment of customers. Prepaid SIM card may thus be a good strategy to
start off with.
Youth
Already Aircels magic brand is synonymous with youth. Aircel will have to
lay greater emphasis on this a segment of consumers because with greater
disposable income youngsters can contribute greatly to the revenues.
63
Working women
This segment has not yet been tapped. Aircel can thus concentrate on this
segment by introducing schemes aimed at women. This can be done by
providing them specific value added services.
Opponent's share:
By aggressively marketing their products and taking advantage of the fact that as
mentioned before Vodafone is facing problems with its technical manpower at the
services level. Sooner or later this is bound to result in dissatisfaction of their
clients. Aircel can absorb these users
Increased competition from the third and fourth player

MTNL will enter the cellular services market in a big way. Aircel will have to pay
off their attack by
New tariff plans.
More value added services.
Better network quality.
Intensification of marketing and advertising effort aimed at highlighting

the strengths of the brand and their continuous ability to provide good
quality service.
Minding own turf
Increase in visibility and coverage

Aircel will have to go in for further image enhancement of the Aircel brand with a
care and family message and the magic brand with emphasis on targeting the
youth. Also, their retail outlets and franchises will have to be increased further by
64
50%. This is infact a strategy that Aircel is implementing and the results will show
soon. Such reach and visibility once attained will have to be complemented with
excellent peoples services that Aircel is known for. Once achieved this level of
services will be hard new or established player to match.
In the long run this could be the vital factor, which keeps Aircel No. 1 in the
industry.
The first come advantage
Value added services are the norm of the day. The service providers can gain a long
term advantage by consistently introducing new incentives in value added services
or tariff structures. Every time a new scheme is launched it provides temporary
edge to the service provider over its counterpart. This temporary advantage is in
terms of the new clients it acquires who have been attracted by the offer. However
after some time this advantage is neutralized by the other player offering
something similar. Thus it important to innovate before the competition time and
again so that one can make the short term advantage cumulatively long term and
help increase mind share as well as market share.
Corporate clientele
Since this a target market by itself its marketing methodology itself would be
different. Most organizations prefer to take services for their employees in groups.
Hence, this order becomes very big for the service provider. Personalised selling
would be the order of the day for these users. The presence in the various business
and corporate circles would also enhance Aircels brand image. Special incentives
can be given to these employees for maintaining their loyalty to the Aircel brand.
The Aircel - Aircel advantage
Aircel could lure more customers by introducing schemes in which calls from one
Aircel user to another would be possible at a reduced tariff. This would encourage
65
a group of users who need to communicate frequently to opt for this service only.
Also it would help in promoting bondage between the users and thus further
promote loyalty.
New innovative packages
Aircel has to come up with new innovative packages like the CALL HOME
scheme offered by Vodafone. Such schemes launched at regular intervals will help
in maintaining customer loyalty and also attract new customers.
Collaborative schemes with other companies
Aircel can collaborate with companies like Nokia or any other hardware provider
and launch schemes like providing free airtime with every hardware instrument
bought. Exposing the customer to the brand increases the chances of the customer
being hooked on to the brand. The companies can ensure this by offering the
option of renewal of the account at the expiry of the free airtime.
66
Discounted products
The company has to offer more discount schemes like reducing the activation
charges or reducing the security fees. This will provide the company a competitive
edge. However this may lead to a price war. Hence the trade offs of indulging in
this exercise must be considered.
Regular freebees
Aircel can offer at regular intervals and specially at festivals schemes like free
airtime to its users, free coupons for shopping, free entry to shows etc. this would
keep the customers interested in the brand and ensure that they remain loyal to the
brand. The other competitor will also be indulging in the same hence the
effectiveness of these would depend on the timing of these offers.
Special offers
Aircel may offer special incentives and rewards to the frequent and regular users
by offering them free maintenance checks.
Free or minimal cost upgradation to a category of users who use the service over a
specified limit of airtime
More of the e-factor
The future belongs to the net. The players who will be able to integrate the net in
their operations will lead the market. This would mean advertising over the net,
allowing an interface of the net with the cellular service. Aircel is already on the
right track as far as this is concerned. They have introduced the concept of being
able to send messages to the user like a pager message. This can be done from the
Aircel site.
67
Consolidate WAP
Aircel has the advantage of having introduced the WAP before its competitor
Vodafone has. They can use this as platform for taking a lead when this technology
becomes widespread. Till then it will act as bait for status conscious users who
want the latest innovations irrespective of its present application.
Finally, to cell well.
..and remain in position..
NUMERO UNO
To retain its position of the No. 1 player in the market Bhartis Aircel has to not only
implement the strategies mentioned but also time their moves perfectly.
Only high level R&D complemented with sound technical services can provide the
backbone for the aggressive marketing that we have suggested for Aircel.
68
RESEARCH METHODOLOGY
a. Title Justification
This Project Marketing Strategy of Aircel, in Delhi has been submitted in
partial fulfillment of the BBA course.
b. objective
i objective
The objective of the study is to understand the marketing strategy of different
cellular service provider in India. The market trend is also one of the study.
How have the they sustained in the market with so much competition. About
the growth of the industry and a study on the growth of the companies. The
future strategies that will be implemented..
ii objective
To know the present satisfaction level of Aircel users.
To know customers expectations from Aircel.
To know about the perception of customers regarding other players in the

industry.
Image of Aircel in customers mindset, regarding tariff and other

promotional factors.
iii objective
For the achievement of the objective of the project, data was collected through
two modes of data collection i.e. through questionnaire and the newspaper and
websites. The questionnaire was needed to get the first hand information about
the perception and the satisfaction level of the customers.
69
c. Scope of the Study

The study was done to know about the present satisfaction level of Aircel
prepaid customers.
The sample technique adopted for the study of the project is Stratified Simple
Random Sampling. The reason for selecting such a technique is that this
technique matches with the data available to me of NCR region
d. Significance of the Study

i Significance of the Industry
History of Cellular Telephone In India
The technology that gives a person the power to communicate anytime,
anywhere - has spawned an entire industry in mobile telecommunication.
Mobile telephones have become an integral part of the growth, success and
efficiency of any business / economy.
Overview of Telecom Sector
The Indian Telecommunication network with 45 million telephone
connections is the sixth largest in the world and the second largest among the
emerging economies of Asia. The present tele-density is 4.4 per hundred and
the targets are to achieve 15 per hundred by 2012. Accordingly, India's 10th 5
year plan 2006-7 projects Rs 1,750 billion worth of investments in 50 million
fixed lines, 30 million cellular lines and 20 million Internet connections..
ii Significance for the Researcher

In the present telecommunication sector scenario, when Aircel is launching
new tariff plans every fortnight. It is quite difficult for other private players to
keep their customers happy.
70
e. Research Design
i Probability / Non- probability
The sampling design for this study was non- probability sampling. Under this
design, the method of sampling used was quota sampling. In quota sampling,
interviewers are simply given quotas to be filled from different stratas, with
some restrictions on how they are to be filled.
ii Exploratory/ descriptive/ experimental Research etc.

The adopted research methodology is based upon the collected primary data
through which the most recent and accurate piece of first hand information
could be collected. Secondary data is used to support primary data wherever
needed.
f. Sampling Methodology
i Sampling unit
It refers to the technique or the procedure adopted in selecting the item from
the sample I have used both random.
ii Sampling Technique
It is very difficult to collect information from every member of a
population .As time and costs are the major limitation that the researcher
faces.
Bar Diagram.
Pie- Chart.
Line Graph.
71
iii Sampling Area

The research is concentrated in DELHI-NCR,. All the branches in the targeted
area were contacted to be a part of the study.
iv Sampling Size
In the present telecommunication sector scenario, when Aircel is launching
new tariff plans every fortnight. It is quite difficult for other private players to
keep their customers happy My project sample was 100 respondents.
g Limitation
I have to work under time constraint due to my present job, so I have got a less
time to complete the project.
The respondents were mostly college going students; low understanding of
knowledge was there.
The respondents were discussing the questions prior to reply thus their could
be biasness.
Different promotional schemes offered by different companies were not
known by the respondents.
72
FACTS & FINDING
16-20
21-25
26-30
31-35
abv
36yrs
15
33
49
1) AGE
2) SEX
MALE
FEMALE
62
42
3) DO YOU HAVE A MOBILE PHONE ?

YES
NO
103
01
4) WHICH MOBILE CONNECTION DO YOU HAVE ?

VODAF
AIRCEL
IDEA
RELIANCE
OTHERS
ONE
53
30
17
5. DO YOU HAVE A POST PAID OR A PRE PAID CONNECTION ?
73
PRE-PAID
POST- PAID
98
6. WHY HAVE YOU
CHOSEN
IDEA AS YOUR
CONECTION
PROVIDER?
BETTER
GOOD
SERVICE
CONNECTIVITY
28
EASY
AVAILABILITY
59
LOW
OTHERS
TARIFFS
30
21
11
7) ARE YOU SATISFIED WITH YOUR CONNECTION ?

a
SATISFIED
45
DIS - SATISFIED
8) DOES IDEA OFFERS BETTER SERVIC ETHAN OTHERS ?

a
YES
53
NO
0
74
9) RATING OF DIFFERENT PARAMETERS

CONNECTIVITY 1
TARIFF 2
ROAMING 5
SERVICES 4
OTHERS 3
17
11
11
10) RATE THE FOLLLOWING SERVICE PROVIDERS

VODAF
AIRCE
ONE
IDEA
RELIANCE
OTHERS
59
11)
32
WILL
YOU
10
RECOMMEND
OTHERS
2
TO
SWITCH
TO
IDEA
CONNECTION?
a
YES
47
NO
02
12) WILL YOU SWITCH TO IDEA ?
YES
85
NO
18
75
DATA ANALYSIS AND INTERPRETATION

1) AGE
a
16-20
21-25
26-30
31-35
abv
36yrs
11
33
49
AGE WISE RESPONDENTS
d; 7%
a; 11%
a
b
c; 47%
b; 32%
c
d
From the above pie chart we can see that most of the respondents falls within the age
group of 25- 30 yrs , closely followed by the 21- 25 yrs segment. There were no
respondents in the age group of above 36 years.
76
2) SEX WISE
MALE
FEMALE
60
40
SEX WISE BRESK UP OF

RESPONDENTS
b
40%
a
a
60%
The above diagram depicts that there were 60 male respondents and 40 female
respondents for my sample questionnaire. Out of the 62 male respondents only one
respondent of the age group16- 20 yrs said that he does not possesses a mobile phone.
77
3) DO YOU HAVE A MOBILE PHONE?
YES
NO
100
DO YOU HAVE A MOBILE

150
100
50
0
b
a
100
Of all the respondents only one person did not had a mobile phone , where as all other
respondents had a mobile phone. The person not having a mobile phone was a male
respondents and was within the 16-20 yrs of age group
78
AIRCEL
a VODAF
IDEA
RELIANCE
OTHERS
ONE
50
30
17
WHICH CONNECTION DO YOU HAVE

60
a
40
20
c
d
Out of the total 100 respondents who possessed a mobile phone, 50 respondents had
Idea connection, followed by Aircel with 30 respondents. Only 2 of the respondents
had a Dolphin connection which is owned by MTNL.
79
4) DO YOU HAVE A POST PAID OR A PRE PAID CONNECTION ?

PRE-PAID
POST- PAID
98
WHICH TYPE OF CONNECTION
a
b
98
From the sample respondents it was found that all that of 98 respondents out of total
100 respondents had a prepaid connection. While only 2 people said to have a post
paid connection, out of which 1 said that the post paid connection was provided by
their office.
80
5) WHY HAS YOU CHOSEN IDEA AS YOUR CONECTION PROVIDER?
BETTER
a GOOD
b EASY
c LOW
SERVICE
CONNECTIVITY
AVAILABILITY
TARIFFS
10
50
10
20
d OTHERS
10
From the above line graph we see that the respondents has rated ``good connectivity
``as the most important factor which has urged them to take them Idea connection,
followed by low tariffs, and better service. Also quite a number of persons have said
100
b
50
a
0
d
d
e
e
10 50 10 20 10
that they took Idea connection because of no hidden cost and they get connectivity
anywhere and also great coverage on roaming.
81
82
7) ARE YOU SATISFIED WITH YOUR CONNECTION?
SATISFIED
75
DIS - SATISFIED
25
ARE U SATISFIED
25
a
b
75
Out of total 100 Idea customers 75 of the respondents said that they are totally
satisfied with their present Idea connection. While only 25 respondents said they are
not satisfied because of the talk time value they get. Some said they want to try out
Aircel `` Aise Azadi Aur Kahan ``.
83
9) DOES IDEA OFFER BETTER SERVIC ETHAN OTHERS?
YES
75
NO
25
DOES IDEA OFFERS YOU WITH

BETTER SERVICE
100
75
50
0
25
75
25
Though 25 respondents were unhappy with the Idea connection, but surprisingly they
too cannot come across the fact that Idea provides better service than other service
providers.
84
10) RATE THE FOLLLOWING SERVICE PROVIDERS
AIRCE
VODAF
ONE
60
32
IDEA
RELIANCE 4
OTHERS 5
The respondents have rated Idea most number of times, i.e. 59 times as the number 1
service provider, while Reliance comes last with 2 respondents saying it to be good
with such low tariff charges.
85
11)
WILL YOU
RECOMMEND
OTHERS TO SWITCH TO IDEA
CONNECTION?
a
YES
97
NO
03
Over and all 47 respondents said they will recommend others to switch to Idea, while
quite a few respondents did not respond to this question.
86
12) WILL YOU SWITCH TO IDEA ?
YES
85
NO
15
WILL YOU SWITCH TO AIRTEL

15
a
b
85
Total 85 respondents said that they will switch to Idea for the kind of service provided
by them, while merely 18 respondents said that they are satisfied with their present
service connection.
87
CONCLUSION & RECOMMENDATION

Strategies for Future to retain its market share
Target markets
Lower middle class

This segment has not yet been tapped by any of the cellular service providers.
Since these would be first time users in the lower income group the price will
be a major factor. Aircel will have to model its price structure to accommodate
this segment of customers. Prepaid SIM card may thus be a good strategy to
start off with.
Youth
Already Aircels magic brand is synonymous with youth. Aircel will have to
lay greater emphasis on this a segment of consumers because with greater
disposable income youngsters can contribute greatly to the revenues.
Working women
This segment has not yet been tapped. Aircel can thus concentrate on this
segment by introducing schemes aimed at women. This can be done by
providing them specific value added services.
Opponent's share:
By aggressively marketing their products and taking advantage of the fact that as
mentioned before Vodafone is facing problems with its technical manpower at the
services level. Sooner or later this is bound to result in dissatisfaction of their
clients. Aircel can absorb these users
Increased competition from the third and fourth player

MTNL will enter the cellular services market in a big way. Aircel will have to pay
off their attack by
New tariff plans.
More value added services.
Better network quality.
88
Intensification of marketing and advertising effort aimed at highlighting

the strengths of the brand and their continuous ability to provide good
quality service.
Minding own turf
Increase in visibility and coverage

Aircel will have to go in for further image enhancement of the Aircel brand with a
care and family message and the magic brand with emphasis on targeting the
youth. Also, their retail outlets and franchises will have to be increased further by
50%. This is infact a strategy that Aircel is implementing and the results will show
soon. Such reach and visibility once attained will have to be complemented with
excellent peoples services that Aircel is known for. Once achieved this level of
services will be hard new or established player to match.
In the long run this could be the vital factor, which keeps Aircel No. 1 in the
industry.
The first come advantage
Value added services are the norm of the day. The service providers can gain a long
term advantage by consistently introducing new incentives in value added services
or tariff structures. Every time a new scheme is launched it provides temporary
edge to the service provider over its counterpart. This temporary advantage is in
terms of the new clients it acquires who have been attracted by the offer. However
after some time this advantage is neutralized by the other player offering
something similar. Thus it important to innovate before the competition time and
again so that one can make the short term advantage cumulatively long term and
help increase mind share as well as market share.
Corporate clientele
Since this a target market by itself its marketing methodology itself would be
different. Most organizations prefer to take services for their employees in groups.
Hence, this order becomes very big for the service provider. Personalised selling
would be the order of the day for these users. The presence in the various business
and corporate circles would also enhance Aircels brand image. Special incentives
can be given to these employees for maintaining their loyalty to the Aircel brand.
The Aircel - Aircel advantage

89
Aircel could lure more customers by introducing schemes in which calls from one
Aircel user to another would be possible at a reduced tariff. This would encourage
a group of users who need to communicate frequently to opt for this service only.
Also it would help in promoting bondage between the users and thus further
promote loyalty.
New innovative packages
Aircel has to come up with new innovative packages like the CALL HOME
scheme offered by Vodafone. Such schemes launched at regular intervals will help
in maintaining customer loyalty and also attract new customers.
Collaborative schemes with other companies
Aircel can collaborate with companies like Nokia or any other hardware provider
and launch schemes like providing free airtime with every hardware instrument
bought. Exposing the customer to the brand increases the chances of the customer
being hooked on to the brand. The companies can ensure this by offering the
option of renewal of the account at the expiry of the free airtime.
Discounted products
The company has to offer more discount schemes like reducing the activation
charges or reducing the security fees. This will provide the company a competitive
edge. However this may lead to a price war. Hence the trade offs of indulging in
this exercise must be considered.
Regular freebees
Aircel can offer at regular intervals and specially at festivals schemes like free
airtime to its users, free coupons for shopping, free entry to shows etc. this would
keep the customers interested in the brand and ensure that they remain loyal to the
brand. The other competitor will also be indulging in the same hence the
effectiveness of these would depend on the timing of these offers.
Special offers
Aircel may offer special incentives and rewards to the frequent and regular users
by offering them free maintenance checks.
Free or minimal cost upgradation to a category of users who use the service over a
specified limit of airtime
90
More of the e-factor
The future belongs to the net. The players who will be able to integrate the net in
their operations will lead the market. This would mean advertising over the net,
allowing an interface of the net with the cellular service. Aircel is already on the
right track as far as this is concerned. They have introduced the concept of being
able to send messages to the user like a pager message. This can be done from the
Aircel site.
Consolidate WAP
Aircel has the advantage of having introduced the WAP before its competitor
Vodafone has. They can use this as platform for taking a lead when this technology
becomes widespread. Till then it will act as bait for status conscious users who
want the latest innovations irrespective of its present application.
91
BIBLIOGRAPHY
BOOKS
AIRCEL UPDATES
How Advertising works in today's Marketplace: The Morill Study McGraw-Hill,
1991
Marketing Management, Philip Kotler
INTERNET
www.aircelindia.com
http://www.hinduonnet.com/2004/12/22/stories/2004122202441700.htm
http://bhartiaircel.in/index.php?id=company_profile
92

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Marketing Strategy of Airtel

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PROJECT REPORT

Submitted In Partial Fulfillment Of The Requirement Of Bachelor Of

MR. INTSAR ALI

SOFTDOT HI-TECH EDUCATIONAL &

ENROLLMENT NO. ODL/12/403/0288

TRAINING INSTITUTE SOUTH EXT-1

BBA 3rd Year

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work title MARKETING

ENROLLMENT NO. ODL/12/403/0288 is an authentic work carried

----------------------MR. INTSAR ALI

I hereby declare that this project work entitled MARKETING

not submitted or the award of any other degree, diploma, fellowship, or

INTRODUCTION TO THE INDUSTRY

Scope of the Study

Significance of the Study

INTRODUCTION TO THE INDUSTRY

(ET, March 20, 2002). The capital

Mobile History in India

Indian Cellular Market - Earlier Roadblocks and Their Resolution

An overview of Indian Telecom industry

Telecom Industry in India

massive slow down. Progressive reforms such as removal of restrictions on foreign

Basic voice services, is the biggest market. Installation of around 25 million

Investment in Value Added Services (VAS), up to 2006, is estimated at US$

voucher free charging through electronic re-charging of pre-paid mobile customers.

Source Business line 10 Aug 2005

Source Business line 21 Aug 2005

Bharti Tele-Ventures Ltd and IBM Global India on Thursday have

announced the launch of managed services under their `Joint Go-To-Market'

Capture maximum telecommunications revenue potential with minimum

Build high quality mobile networks by deploying state-of-the-art technology

Attract and retain high revenue generating customers by providing competitive

The Current Cell-Market Scenario

Problems in Financial closures due to:

Licensing tenure of 10 years

Licensing tenure increased from 10 to 20 years

Foreign ownership / change of partner limitations

Inadequate growth of market / subscribers

Developments in the Cellular Industry

Building visibility and awareness

Enterprise Mobile Applications Promising Revenue Stream

Future Trends and Development

The implementation of enhanced networks like 2.5G will enable operators to

Network coverage in terms of geographic spread and quality of coverage is

Limited mobility wireless in local-loop services (by fixed network service

All India Cellular

New Telecom Policy

Telecommunication Union (ITU) / Telecommunication Engineering Center (TEC)

licences for any number of service areas.

Availability of adequate frequency spectrum is essential not only for providing

The group focuses on delivering telecommunications services as an integrated

Corporate Responsibility at Bharti Aircel

To be transparent and sensitive in our dealings with all stakeholders

We practice our CSR beliefs and commitments through a threepronged approach:

Environment, Health and Safety

Few examples of the initiatives taken are mentioned below:

BMS controls The Heating,

Ventilation and Airconditioning (HVAC) system,, electricity load management, water

For outside world

Free-Cooling is another technique that we use to maintain temperature level during

Bhartis contribution to society is structured through two channels,

(a) CSR Initiatives @ Bharti Aircel