COMPANY PROFILE

Airtel comes to you from Bharti Cellular Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones. Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Bharti is the leading cellular service provider, with a footprint in 15 states covering all four metros and more than 7 million satisfied customers.

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 • Unified Messaging Solutions

CORE VALUE:
We will delight our customer with our simplicity, speed & innovation. We will honour our commitment. We will follow the highest standard of professional integrity & behaviour. We will respect individual, build winning teams and lead by example. We will create a fun filled and friendly workplace.

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AIRTEL MOBILE COMMUNICATIONS LIMITED:
Bharti Tele-Ventures Limited was incorporated on July 7, 1995 for promoting investments in telecommunications services. Its subsidiaries operate telecom services across India. Bharti Tele-Ventures is India's leading private sector provider of telecommunications services based on a strong customer base consisting of 7.42 million total customers, which constitute, 6.76 million mobile and 657,000 fixed line customers, as of April 30, 2004.

Bharti Tele-Ventures vision for its mobile business is “To make mobile communications a way of life and be the customers first choice”. The mission is to meet the mobile communication needs of the customer through 1) error free service 2) Innovative products and services and 3) cost efficiency. The Company’s strategic objective is to consolidate its leadership position amongst the mobile service providers in India. The Indian mobile market, according to the COAI, has increased from approximately 1.2 million subscribers as of March 31, 1999 to approximately 29.21 million subscribers as of June 30, 2004. Despite this rapid growth, the mobile penetration rate in India, at approximately 2.8% as of June 30, 2004, is significantly lower than the average mobile penetration rate in other Asian and international markets. The number of mobile subscribers in India is expected to show rapid growth over the next four years. By 2006 it is projected at 50 million by COAI and 44 million by Gartner. Bharti Tele-Ventures believes that the demand for mobile services in India will continue to grow rapidly as a result of the following factors: ⇏ ⇏ 2 Lower tariffs and handset prices over time; Growth in pre-paid customer category;

⇏ ⇏ ⇏

Greater economic growth and continued development of India's economy; Higher quality mobile networks and services; and Greater variety and usage of value added services.

Bharti Tele-Ventures, through its subsidiary has the licenses to provide GSM services in all the twenty-two telecom circles in India. It proposes to consolidate all its subsidiaries providing mobile services under Bharti Cellular Limited.

Type

Public, Listed on BSE 1985
New Delhi, India

Founded Headquarters Key people
Industry Products

Sunil Mittal Telecom Mobile

and Fixed-Line Telecommunication operator

Revenue Slogan

$60 Billion Express Yourself

History of Pre-Paid : 1986 Main GSM radio transmission techniques were chosen.

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1987 September - 13 operators and administrators from 12 areas in the CEPT GSM advisory
group signed the charter GSM (Grouped Spéciale Mobile) MoU "Club" agreement, with a launch date of 1 July 1991. The original French name Groupe Spéciale Mobile was changed to Global System for Mobile communications; but the original GSM acronym remains. In 1989, GSM responsibility was transferred to the European Telecommunication Standards Institute (ETSI), and phase I of the GSM specifications was published in 1990. Commercial services started in mid 1991, and by 1993 there were 36 GSM networks in 22 countries, with 25 additional countries like South Africa, Australia and many Middle and Far East countries opting for GSM. By the beginning of 1994, there were 1.3 million subscribers worldwide. The developers of GSM chose an unproven (at that time) digital system, as opposed to the then standard analog cellular systems like AMPS in the United States and TACS in the United Kingdom. They had faith in the advancements in compression algorithms and digital signal processors to allow the fulfillment of the original criteria and the continual improvement of the system in terms of quality and cost. The European Telecommunications Standards Institute (ETSI) defined GSM as the internationally accepted digital cellular telephony standard. GSM MOU was formally registered as an association registered in Switzerland with 156 members from 86 areas.

Pre-Paid Users:

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In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid. service differentiation and customer retention. has been looking to MVAS to provide its next wave of growth. One of the majors. A well demarcated value chain of MVAS seem to have evolved. MVAS could be the way out. Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation. MVAS is now considered as a major tool for additional revenue. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry. first private basic telephone service provider in the country. 5 . first Indian company to provide comprehensive telecom services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India. Bharti Airtel.Airtel Pre-Paid service Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit. ranging from being the first mobile service in Delhi.

. Airtel recently launched its own movie library.1% in the previous fiscal to 6%. Thiruvananthapuram. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid. 6 . and followed it up with another product with pre-release audio promos of films. entertainment and games.000 have taken the lead. 5. Bharti Airtel.8%. SMS revenues had risen from 4. Venkatesh V. This shift in consumer behavior. “Then came The Japanese Wife and the initiative has been extremely successful. Surat. CEO. While 25% of the apps are free to download.8% of its total revenues as on March 31. Other popular categories included books. Karnataka Circle. For Bharti Airtel. Mobile Services. which often costs less and does not require contracts. downloads from Airtel App Central are being led by feature phones and not smart phones. a prepaid mobile phone is not used solely for communication. it is a cost-effective option that is available for entertainment. which are considered to be the core MVAS category.According to industry estimates. Non-voice revenues. Director of Marketing and Communications at Airtel.5% to 11. said. Airtel Talkies.” This year. VAS accounted for 11. Airtel pre –paid mobile customers in smaller cities like Mangalore. starting with My Name Is Khan. the top five are subscription-based. has ensured that service providers are actively announcing various value-added services that will help retain customers. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service. 2010. Pune and Udaipur with basic phones priced at less than Rs. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. “Today. where subscribers expect more than just connectivity.” commented Shireesh Mukund Joshi. had increased from 9. Social networking and utility apps ranked highest on the popularity charts. Occupying an average of not more than 2% of available space on the customer’s handset per app. for news and for any other information that one may require. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one.

attracted about 3. customers pay an average of $11 per month. Airtel Pre-paid : 7 .half of what it costs a customer with a contract on Verizon Wireless. prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each.. so he tacks on an unlimited-texting option for $20 per month. because he talks no more than 15 to 20 minutes on the phone each month. Prepaid service. The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used. That costs him $5 per month.Now prepaid service looks like it will get even more attractive.000 text messages. Finlay uses prepaid service from Airtel Mobile. At Tracfone. Now it's possible to make unlimited calls and text messages on a prepaid plan for Rs.000 people in the first quarter. For years. wireless carriers expanded their contract subscribers by just 230. He sends and receives up to 2. Unlike contract plans that bill subscribers each month for the services they used the previous month. the seven largest U. the largest independent provider of prepaid service. according to the New Millennium Research Council.S. About one-fifth of Americans with cell phones are on prepaid. people "refill" their accounts as needed. meanwhile. a Washington-based think tank.45 a month . Together. with further price cuts. But as the recession forced more people to cut costs. prepaid service appealed to a broader slice of the market. That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. When the minutes are used up. and prepaid services responded by offering better deals.1 million new subscribers to the seven largest carriers in the quarter.

Once that money gets exhausted you can buy another recharge coupon for the same or different denomination depending on your future need. For e. That’s because almost every one of us wants to be in control of our cellular expense. Prepaid allows you to be in control of your cellular expenses even while you are spending. 8 .Are you wary of committing yourself to a date for making your bill payments? Is it too much of a bother for you to remember dates for bill payments? Do you often end up paying late fees against your monthly utility services bills? Do you end up spending too much if you have the option to pay the bill later? Think over for if one of these represents you. Advantages of Pre-Paid: Some of the many advantages that you enjoy with Airtel Pre-Paid. Start thinking prepaid is our advice! So what exactly is this prepaid! It is simply a way of going cellular by paying for the talk time in advance.g. You will be surprised that today In India. Prepaid connections account for almost 60 to 70 percent of the total new entrants into cellular telephony. 300 worth of talk time for a month.. we have a solution for you. you can buy a recharge coupon which gives you that much talk time on your cell phone.. if you feel that you need Rs.

anywhere!  Caller Line Identification: Call Line Identification gives you the power to know the phone number of the calling party even before you answer the call. recharge you Airtel prepaid card anytime. thus giving you the choice to either reject or take the call.  STD/ISD facility till the last rupee Now experience complete freedom like never before with Airtel! Our STD/ISD facility allows you to make long distance calls in India and Overseas from your cellular phone!  Instant Balance Inquiry Check your talk-time instantly by calling our toll-free number!  60 second pulse Airtel provides you with a 60-second pulse rate! Freedom for you to experience like never before!  Instant Recharge Avail of instant recharge on your Airtel prepaid card with just a few simple steps!  24-hour recharge facility With our round-the-clock recharge facility. Total Cost Control Enjoy the liberty of total cost control with your Airtel Pre-paid! Re-charge as much as you feel the need to! Now that's what we call complete freedom!  No Rentals Buy an Airtel prepaid card without having to pay any rentals!  No deposits Your Airtel prepaid card comes without you having to pay hefty deposits. It provides the added advantage of saving 9 .

with each message of two-minute duration. Call Hold and Call Wait Avail of special services like call waiting.the incoming number directly in the Handset Phone Book. send messages and jokes to your friends and colleagues.  Call Divert. So that the next time you want to call the same person. You can listen to your messages whenever you feel like. order flowers as well as send couriers or check your daily horoscope!  Voice Mail service Voice Mail lets you receive messages even when your handset is switched off or when you are outside the coverage area. Airtel Out of Home Circle Service: We have established one of the most extensive roaming tie-ups . simply use your phone book. anytime anywhere!  SMS based Information Services With Airtel's SMS based information services. from anywhere in the world.with the best service providers in the respective regions to ensure that you get uninterrupted coverage throughout. Voice Mail can store up to 75 messages. We currently provide roaming coverage in more than 10 . you can get up to-the-minute cricket scores. call hold and call divert – all with your Airtel prepaid card!  Short Messaging Service (SMS) With Airtel’s Short Messaging Service (SMS). you don't need to retype his number.both national and international.

Airtel Pre-Paid User 30 25 20 15 10 5 0 preferen… When the preferences for mobile phone connections were asked. then Airtel is only 25% but there is very high recommendation for its better connectivity. results drawn that 40% of persons prefer to take BSNL because they believe in BSNL’s better coverage & cheaper rates after BSNL. Airtel is rich in attractive schemes and plans for business persons and persons related to corporate world. National Roaming: Our national roaming coverage currently spans across more than a 1000 cities across India. Aalamcomm. We also provide international roaming in 56 countries across 101 networks. 20% of people opt Reliance services because of its cheaper rate and flexible schemes. Tone & melodies Milan comm.1000 cities and major highways across India. Final Touch Naaz photo comm. Airtel Competitor's Airtel market % market% market% 40% 67% 36% 45% 38% 45% 60% 33% 64% 55% 63% 55% 45% 45% 42% 43% 43% 57% Competitor's Airtel Lapu Competitor's Market% % Lapu % 55% 55% 58% 57% 57% 43% 41% 45% 43% 40% 38% 29% 59% 55% 57% 60% 63% 71% 11 . Survay of Airtel Pre-Paid market –Noida Outlet Name Careter’s meeting Pt.

TOTAL 38% 42% 43% 45% 62% 58% 57% 55% 38% 40% 29% 43% 63% 60% 71% 57% 38% 38% 29% 37% 62% 62% 71% 63% Outlet name A 2 Z communication B.67% 72.52% 72.97% 64. Rose comm. Khar Internationals Saif business Unique telecomm.Vijay electronics Aman comm.K.00% 70.47% 66.50% 76. Antique Airtel market % 55% 50% 63% 44% 26% 43% 54% Competitor's market% 45% 50% 38% 56% 74% 57% 46% Airtel market% 45% 44% 42% 33% 47% 36% 54% Competitor's market% 55% 56% 58% 67% 53% 64% 46% Airtel Competitor's Lapu % Lapu % 33% 43% 42% 31% 40% 67% 43% 67% 57% 58% 69% 60% 33% 57% 12 .27% 25% 25% 29% 35% 27% 25% 38% 24% 33% 28% 53% 45% 56% 57% 55% 45% 52% 48% 50% 49% Competitor's market% 47% 55% 44% 43% 45% 55% 48% 52% 50% 51% Airtel Competitor's Lapu % Lapu % 60% 45% 56% 48% 48% 44% 56% 60% 43% 54% 40% 55% 44% 52% 52% 56% 44% 40% 57% 46% Outlet Name Nair Gallery Poonam Art Gallery Aman comm.Marketing Santacruz mart Mobile villa Vakola Mall Matrix telecom Gupta Telecom Moon contacts Mobile city Konkan electronics TOTAL Airtel market Competitor's % market% 43% 64% 61% 68% 80% 37% 58% 74% 44% 58% 61% 57% 36% 39% 32% 20% 63% 42% 26% 56% 42% 39% Airtel market% 40% 50% 9% 27% 40% 50% 38% 42% 33% 38% 24% Competitor's market% 60% 50% 91% 73% 60% 50% 62% 58% 67% 62% 76% Airtel Competitor's Lapu % Lapu % 33% 40% 41% 44% 44% 30% 45% 53% 45% 43% 43% 67% 60% 59% 56% 56% 70% 55% 47% 55% 57% 57% Outlet Name Gala & sons Bharat telecom Praveen & sons Zarina general store Ravi communication Sai communication Quality inn Nirmals shop Andheri Shop Total Airtel Competitor's Airtel market % market% market% 75.73% 75.00% 62.00% 75.

10% of the people were fully dissatisfied with the customer services of Airtel. As the above graph clearly shows that customer services at Airtel Seems poor.. They are the ones who have the maximum share in the market but they are lagging behind in the customer services. This could leave an impact on the mind of the consumer. 10% of the people seemed partially satisfied with the customer services and only 45% seem to be fully satisfied with Airtel’s customer services. which is a very small amount. These are the total no. He can even switch over his brand. Orpat watches Sindhi Mobiles TOTAL 56% 56% 45% 50% 44% 44% 55% 50% 42% 56% 40% 43% 58% 44% 60% 57% 43% 29% 38% 40% 57% 71% 62% 60% CUSTOMER SATISFACTION LEVEL: The above graph shows a slice of 50%. of People who are using Airtel. It seems that people are more aware of Airtel than any other brand.Communications Harmain Entp. 35% of the people are dissatisfied with the customer services provided by Airtel. Airtel Pre-Paid-GSM Growth In India 13 .

MILESTONE OF COMPANY 14 .

” said Bharti Airtel president and CEO.200 census towns and over five lakh villages. Bharti has doubled its user base in the past 14 months alone. It is a tribute to our commitment to provide best-in-class services to our customers and lead the market with exciting innovations. Akhil Gupta. became the first Indian telecom company to serve 50 million customers last month. Going forward. and is now the world’s tenth largest wireless carrier. “This is a very proud moment for us and I would like to thank our 50 million customers for believing in Airtel. India’s leading telecommunication services provider. today announced that it had crossed the 50 million customer mark. Mr. it crossed the 25 million customer mark.” 15 . 5 Bharti Airtel. The 50 million customer base covers mobile as well as broadband & telephone customers. With this.1 2 3 4 Mobile phone operator. As the market gets ready for the next wave of growth. This is amongst the fastest rate of customer additions by any telecom company in the world. we are committed to expanding our telecom networks wider and deeper across the country and partner India’s growth story. Bharti Airtel said. It underlines the strength of our unique business model and our vision to provide affordable services like lifetime prepaid to customers across the length and breadth of the country. we believe this growth momentum will remain intact and we are gearing towards the 100 million customers mark. This milestone highlights the emergence of India as one of the top telecom markets in the world and we are proud to have been at the forefront of this growth. according to company executives. and hopes to reach 100 million subscribers by 2010. 6 Commenting on this major global landmark. We are committed to create a world-class organization and benchmark it with the best in the world. Mr. Manoj Kohli. In July last year. covering 96 per cent of the Indian population. “Our next 50 million will largely come from rural India as our plan is to reach 5. Manoj Kohli.within 143 months of start of operations. which puts Bharti Airtel amongst the top telecom companies in the world.” 7 8 9 Bharti Airtel crossed the 10 million customer mark in November 2004. Bharti Airtel. The company added the next 25 million customers in just 14 months. Bharti Airtel has achieved the distinction of becoming the fastest private telecom company in world to achieve this landmark in a single country . President & CEO. Joint Managing Director. “We are delighted to have achieved this major landmark. at a news conference this week. I would like to thank our partners for having shared our vision. Bharti Airtel added.

It has been the first: • • • To launch Cellular service in Delhi on November. AirTel has the largest automatic roaming service "SMART ROAM".National in 400 cities in India and "SMART ROAM" International in over 60 countries and 95 networks all over the world. It is also strengthening the corporate business towards becoming a preferred managed services partner for the top 2000 corporations. The company’s strategic focus will be on further strengthening the Airtel brand through best-in-class customer service. which is backed by wide national distribution. Operator to revolutionalize the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms)in 1995. 11 In the Enterprise business. • It is also the first company to export its products to the US. It is readying to offer triple play to its customers with the launch of its IPTV service. 1995. • First to provide roaming facility in USA. ORGANIZATION STRUCTURE 16 . 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.  Bharti airtel among the top 10 best performing Companies in the world according to Business week it 100 lists. Awards:  Bharti airtel draws top honours at the miss Asia It excellence awards 2006. Airtel has taken the lead on many occasions.000 villages across India by 2010. Bharti Airtel will initiate large-scale deployments of broadband network infrastructure in 94 towns. thereby covering 95% of the country’s total population. To expand it's network with the installation for second mobile switching centre in April. with a sharp focus on the home and SME segments. Bharti Airtel will invest substantially in the long distance business to achieve the scale of a global carrier within next 2-3 years. In Broadband & Telephone SBU.10 In the mobile business. Bharti Airtel plans to make considerable investments in Network expansion to establish presence in all census towns and over 500.

equipment suppliers include Siemens. employees and society at large. while adopting sound Corporate Governance practices. ‘Level 1’ rating by CRISIL. PROMOTIONAL STRATEGY 17 . The investment made by SingTel is one of the largest investments made in the world outside Singapore. capitalefficient and long-term growth thereby maximising value for its shareholders. and Teletech & Mphasis. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call centre technology requirements. The company’s mobile network equipment partners include Ericsson and Nokia. During the financial year 2003-04. In the case of the broadband and telephone services and enterprise services (carriers). your Company was assigned highest Governance and Value Creation (GVC) rating viz. Hinduja TMT. Nortel. Corporate Governance Bharti Airtel Limited firmly believes in the principles of Corporate Governance and is committed to conduct its business in a manner. Company’s 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. in the company. Corning. The call centre operations for the mobile services have been outsourced to IBM Daksh. This rating was reaffirmed by CRISIL on April 20. 2006. which will ensure sustainable.Partners The company has a strategic alliance with SingTel. which indicates that the company’s capability with respect to creating wealth for all its stakeholders is the highest. among others. customers.

loyalty rewards. anywhere. on the other hand. The youth segment was the largest and fastest growing segment and was therefore targeted most heavily by cellular service providers. relying primarily on its creative advertising for the promotion of its brand. discount coupons. As competition in the telecom arena intensified. By 2004 it emerged the unprecedented leader commanding the largest market share in the cellular service market. the market has grown considerably. We needed a strong differentiator in an increasingly commoditized and crowded market. All the players except RIM offered services based on the Global System for Mobile (GSM) technology. Being a state owned player. which included celebrity endorsements and attractive talk time schemes. anytime. Expressing and communicating are perhaps two of the most basic emotions. coverage and SMS is just not enough. Idea Cellular limited (Idea) and Reliance India Mobile (RIM) (Refer Exhibit I). Prominent among these were . The most important consumer segments in the cellular industry were the youth segment and the business class segment. (Refer Exhibit II). the Indian cellular market witnessed a surge in cellular services.which are prerequisites in any. attracted the consumer through its low cost schemes. Bharat Sanchar Nigam Limited (BSNL)." Atul Bindal. Reliance was another player that cashed on its innovative promotional strategies.which is that there are moments when you need to make your point. You need to go beyond all the rational identifiers .After the liberalization of the Indian Telecom Sector in 1994. Hutch implemented the celebrity endorsement strategy partially. Over the last couple of years. accompanied by much higher competitive intensity. Bharti Tele-Ventures adopted celebrity endorsement as its chief promotional strategy.and connect at a deeper level. business solutions and talk time schemes. when you need to be heard. service providers took new initiatives to woo customers. Bharti TeleVentures. case . We found this differentiator in a core human truth that defines our category . AirTel enables you to make your point in the most expressive way. By 2005. expands on this. The 18 . "In this context. chief marketing officer. there were a total of 12 players in the market with the five major players being Bharti Tele-Ventures Limited (Bharti). BSNL. BSNL could cover rural areas. with deeper penetration and wider usage of voice and data services.celebrity endorsements. differentiating merely on network. Idea relied heavily on its creative media advertising sans celebrities. Hutchinson-Essar limited (Hutch). and this helped it increase its subscriber base.

in the past. 19 . However. as a result. That's what makes a good campaign idea.and post-paid communication. Magic led the market. world leaders in Voice Quality technology. "The moment you have as broad a canvas as 'Express yourself'. as well as different voice. wherever you may be speaking from. conceived the campaign. Bharti claimed that its strategies were one of the most ambitious experiments ever in the Indian pre-paid cellular telephony market. was being driven in two different dimensions." he informs." One of the most obvious benefits of owning a property such as 'candid expression' (and 'Express yourself') is the expansive nature of the thought. given the increasing competitive pressure. doubts were being expressed regarding the ability of Bharti's marketing initiatives to help Magic retain its 'Magic' in the future AirTel launches VQE (Voice Quality Enhancer) for the first time in Kolkata Introducing VQE (Voice Quality Enhancer) for the first time in Kolkata." says Bindal. Brand image. " In October 2002.' We believe 'Express yourself' allows us to connect at a deeper level and create a long-term platform for the brand. "We will be taking the idea forward in many different ways in the forthcoming work." observes Rediff's Prashant Godbole. "Brand AirTel is a category leader straddling completely different market segments such as consumer. it becomes easy for anyone working on the brand to come up with new ideas and executions. data and payment platforms. which. It eliminates acoustic echo. adjusts speech levels in both directions and does away with low or distorted speech so that every word of your's can be heard clearly. Patel adds. This assumes significance when viewed in the light of the company's pre. The VQE technology has been sourced from Tellabs of USA." For AirTel. with 30% of the market share. had been treated very differently. who. AIRTEL NEWS • : Bharti Airtel inks USD 400 million network expansion contract with NOKIA. "'Express yourself' enables the brand to unify and connect across the entire base of our existing and prospective customers.campaign is towards owning this through 'Express yourself. along with creative partner Zarvan Patel. the challenge also lay in presenting a unified 'face' to the consumer. VQE is a revolutionary new system that spectrally reduces background noise. business and corporate. This is just the proverbial tip of the iceberg.

Notice of postal ballot for seeking consent of the shareholders on scheme of amalgamation of Satcom Broadband Equipments Limited and Bharti Broadband Limited with Bharti Airtel Limited. “The normal practice is to opt for film stars and sportsmen rather than an audio personality” he says. It is not very clear what this means for the other cellular operators. 20 .600 crores. But the interesting part is that the ringtone is being flaunted not just by AirTel customers but by customers of rival service providers like BPL. which according to Mr Pota. 1. Marketing professionals like Samsika Marketing Consultants’ managing director Jagdeep Kapoor point to the usage of an “audio celebrity” as something that is significant. Orange and Dolphin as well! “We did expect the tune to catch up but this has really exceeded our expectations. • • • • Bharti Airtel to Observe Silent period from October 1. Cellular users have been “forwarding” the tune to one another. “It gives the user a chance to go back to the AirTel product and acts as a strong reminder medium. Overall. Bharti Airtel is amongst India’s Most Admired Knowledge enterprises in 2006. 1. is proving to be a potent advertising tool for the company.” admits Bharti Cellular’s chief marketing officer (western region) Pratik Pota. it is a great advertising product for AirTel and works like a “walking.000 crores.• Bharti Airtel limited: Q2 cash profit exceeds Rs. Sunil Bharti Mittal receives ‘The Honorary Fellowship’ from IETE. PBT crosses Rs. Cellular service provider AirTel seems to have hit the right note with its new commercial starring musician A R Rahman.” he explains. 2006.” The ringtone which is also the jingle for AirTel’s TV commercial. The commercial which is currently on air has a beat which also doubles up as a ringtone which is ostensibly available only to AirTel users. has given AirTel a chance to enter the “mind of the user” irrespective of which service he opts for. talking brand ambassador. he explains.

” Explaining that the usage of an audio celebrity was more “strategic than tactical”. seem to be doing their own homework on this brand of advertising. “Competition will not do well to adopt a knee jerk reaction and will have to come out with advertising that is well thought out” explains Mr. Kapoor. Kapoor. While none of them commented on AirTel’s strategy and its impact on their own subscriber base. He anticipates a situation where the new entrant (AirTel) will continue to be more aggressive.” AirTel will have try to find ways to attract new customers and convert the existing ones. LITERATURE REVIEW: Airtel has been a pioneering force in the telecom sector with many firsts and innovations to its credit. ranging from being the first mobile service in Delhi. though seemingly unfazed by the phenomenon. the nature of reaction from competition remains unclear.Rivals. one advertising professional working with a rival service provider opines that the tune is “transient” and not likely to have any long term impact as a brand building tool. AirTel has had to find ways of cutting through the clutter. Being the latest entrant in the Mumbai circle. first Indian company to provide comprehensive telecom 21 . he adds that non-AirTel users will have the AirTel “brand experience” in spite of not using the service. first private basic telephone service provider in the country. Pota highlights the fact that the usage of the tune by other operators means “free advertising” for AirTel and the users having a positive disposition towards the product. Says Mr. While Mr.

A well demarcated value chain of MVAS seem to have evolved. SMS revenues had risen from 4. Director of Marketing and Communications at Airtel. Pune and Udaipur with basic phones priced at less than Rs. Airtel pre –paid mobile customers in smaller cities like Mangalore. According to industry estimates. starting with My Name Is Khan. which are considered to be the core MVAS category. The downloads from Airtel App Central have indicated that the Indian mobile applications model will be different from the global one. Non-voice revenues. 2010. “Then came The Japanese Wife and the initiative has been extremely successful. has been looking to MVAS to provide its next wave of growth. Occupying an average of not more than 2% of available space on the customer’s handset per app. Surat. and followed it up with another product with pre-release audio promos of films. Other popular categories included books. Airtel recently launched its own movie library.1% in the previous fiscal to 6%. One of the majors. the top five are subscription-based. For Bharti Airtel. Airtel Talkies. The evolution of the MVAS market has come in parallel with the changes and advances that have taken place in the telecom industry. entertainment and games. While 25% of the apps are free to download. MVAS could be the way out. 5. Mobile value-added services (MVAS) have led to the emergence of a fresh business ecosystem giving rise to supporting industries such as content development and aggregation. had increased from 9. service differentiation and customer retention. Thiruvananthapuram. Mobile VAS in India would account for 18% of the total revenues generated by operators from mobile services by end 2010. In a scenario where Telco ARPUs have been squeezed down to rock bottom and most users prefer to go prepaid.8% of its total revenues as on March 31.” commented Shireesh Mukund Joshi.services outside in India in Seychelles and first private sector service provider to launch National Long Distance Services in India.000 have taken the lead.5% to 11. VAS accounted for 11. Bharti Airtel. MVAS is now considered as a major tool for additional revenue. 22 . downloads from Airtel App Central are being led by feature phones and not Smartphone’s.8%. Social networking and utility apps ranked highest on the popularity charts.

I just can't swallow the $70 or more bill that would come with it. such plans were marketed primarily to people who did not have the credit to qualify for plans with contracts. a prepaid mobile phone is not used solely for communication.. Unlike contract plans that bill subscribers each month for the services they used the previous month. Karnataka Circle. 23 . Now prepaid service looks like it will get even more attractive. by subhankar kundu). That's because wireless carriers have hit a wall when it comes to finding new customers who will sign contracts. This year. for news and for any other information that one may require. said. customers have been making a big shift away from two-year contracts toward "prepaid" cell phone service. This is happening even though contracts are needed to get popular phones such as the iPhone and the Droid. But as the recession forced more people to cut costs. customers pay an average of $11 per month. prepaid services traditionally let subscribers buy minutes in advance for around 10 to 20 cents each. This shift in consumer behavior. CEO. Now it's possible to make unlimited calls and text messages on a prepaid plan for $45 a month .” (daily express. according to the New Millennium Research Council. which often costs less and does not require contracts. with further price cuts. a Washington-based think tank. For years. a 45-year-old stay-at-home dad in San Antonio who uses a prepaid plan. the largest independent provider of prepaid service. When the minutes are used up.half of what it costs a customer with a contract on Verizon Wireless.Venkatesh V. and prepaid services responded by offering better deals. it is a cost-effective option that is available for entertainment. prepaid service appealed to a broader slice of the market. Mobile Services. At Trachoma. Bharti Airtel. “Today. has ensured that service providers are actively announcing various value-added services that will help retain customers. people "refill" their accounts as needed. About one-fifth of Americans with cell phones are on prepaid. "I would love to have an iPhone." said Jeff Finlay. where subscribers expect more than just connectivity.

15 may 2010) Customer satisfaction: Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency.( Lubbock Avalanche-Journal. so he tacks on an unlimited-texting option for $20 per month. meanwhile. Prepaid service. That costs him $5 per month.000 text messages. So a study on customer 24 . . Finlay uses prepaid service from Airtel Mobile. by Peter Svensson. wireless carriers expanded their contract subscribers by just 230.1 million new subscribers to the seven largest carriers in the quarter. the seven largest U. because he talks no more than 15 to 20 minutes on the phone each month.The popularity of text messaging is also making some people move away from contract plans that provide a big bucket of monthly minutes that may not get used. He sends and receives up to 2. Every organization tries to know the customer satisfaction about their products. Customer satisfaction is one of the main objectives of any organization. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer’s expectations. attracted about 3.000 people in the first quarter. Together.S..

If the performance falls short of expectations. the customer is satisfied. Customers are recognized as key partners in shaping service. satisfaction is a function of perceived performance and expectations. If the performance exceeds expectations. To study and understand the consumer behavior of Airtel pre. the customer is dissatisfied. Why is it important? There are a number of reasons why customer satisfaction is important in Airtel: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations.satisfaction helps the organization as well as me to gain a vast knowledge over the real world tastes and preferences of customer. Those who are highly satisfied are much less ready to switch. • • Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector. High satisfaction or delight creates an emotional bond with the brand. Customers have a right to quality services that deliver outcomes. 25 . not just a rational preference. 2. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along.paid mobile users in noida and their satisfaction level. Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer’s expectations. If the performance matches the expectations. What factors influence the consumer for opting airtel pre-paid mobile. Objective of the study 1. In general satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectations. The result is high customer loyalty. As this definition makes clear. the customer is highly satisfied or delighted.

It may be understand as a science of studying how research is done scientifically. Research Methodology is a step by step study of a problem.3. What are various motivation factors involved? 4. RESEARCH METHODOLOGY Methodology is a way to systematically solve the research problem. Physical activities involved in the study are: 26 . What is the perception and learning of those customers towards airtel pre-paid mobile which are not using this service.

 Get the questionnaire filled by the customers in the place through personal interaction. The questionnaire method was applied for this exercise. The questionnaire designed had closed question to find the respondents actual feeling as well as their opinion rating about the satisfaction regarding the product. The Research exercise has been accomplished with the sample size of 100 customers. Where. The Research design was a blend of descriptive and exploratory research design. The Chi-Square test which shows the magnitude of discrepancy between observed and expected frequency can be expressed symbolically as. data collection and statistical tools used for analyzing the collected data. In this research questionnaire is framed in such a way management wants to know how the customers are taking things that they had done to them and to find out the expectation of the customers thus it will impact in policy making of the firm in the current fiscal year. The respondents have been selected through Random sampling method. O= Observed set of frequencies E= Expected set of frequencies 27 . sample design. Chi-square test The Chi-Square test has been taken up as the selection criteria for the above mentioned data. Optimum respondents as a sample size are chosen for the activity to resemble the entire population. The methodology followed for conducting the study includes the specification of research design. questionnaire design.

The sampling design used in this study is probability sampling. Sampling technique used is Simple Random sampling. Descriptive research This study is descriptive in nature where the data is collected through well structured questionnaire and from the information taken from the customers. so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements. Data Collection Methods: Collection of data includes both primary and secondary data. The data collected constitutes both primary and secondary data. measurement and analysis of data. Sampling Design/Techniques: Sampling is the process of selecting a sufficient number of elements from the population. Sampling design is to clearly define set of objects. technically called the universe to be studied. Sample size: The research was conducted in noida with 100 respondents. The researcher has collected both of the above data. Primary data: 28 . Population: Population for this research is set as costumers who are using AIRTEL pre paid mobile. It constitutes the blueprint for the collection.RESEARCH DESIGN: The research design is the conceptual structure within which research is conducted.

Data Analysis and Interpretation: 29 . Secondary Data: Secondary datum is collected from the official record to obtain information’s regarding the rate of absenteeism and the various reasons for absenteeism. and finally by distributing questionnaire to the employees using Random sampling technique the employees are selected to fill the questionnaire. direct communication with respondent.Primary datum are collected through observation.

So customer’s satisfaction level is more than dissatisfaction level.Table showing the satisfaction level of consumer towards service of airtel pre paid mobile Satisfaction level Number Respondents Yes of 87 No 13 Total 100 100% 80% 60% 40% 20% 0% Num of ber R pondents es Y es No tota l Interpretation : From this I interpret that 87% customers of airtel pre paid mobile are satisfied with their service and 13% customers are not satisfied. Table showing the view on airtel pre paid connection 30 .

Some 19 % has ranked it as very good.Ranking Poor Fair Good Very good Excellent Total No. Only 3% has ranked it as poor. 25% of the customers have ranked it as fair. So we can say that most of the customers are in positive view. of respondents 3 25 45 19 8 100 Percentage 3 25 45 19 8 100 Very good 19% Excellent 8% Poor 3% fair 25% Poor fair Good Very good Excellent Good 45% Interpretation :The interpretation is that 45 % of the customer has ranked Airtel pre paid connection as good. Table showing how Promotional schemes affect the consumers Ranking Strongly agree 31 No. of respondents (%) 55 .

No.Agree neither Partially agree Don’t agree at all. Total 100 80 60 40 20 0 21 6 16 2 100 S trong ag ly ree ag ree neither P artially ag ree D on’t ag at ree all. Table showing about those consumers who collect information before purchase Information Number Respondents Yes of 74 No 26 Total 100 32 . of res pondents Total Interpretation: This analysis shows that the promotional schemes are very good tool to attract the customer. neither 6% and those who are not agreed at all are 2%. 55% customers are strongly agreed on this statement. So we can see that the customers give the importance to promotional schemes. 21% agree. Partially agree 16%.

So the information about the product is important factor in consumer buying decision. 26% customer neglecting it.100 90 80 70 60 50 40 30 20 10 0 Y es No Total Num of ber R espondents Interpretation: In this graph we can see that 74% of the customer always collects the information about the airtel pre paid mobile before their purchase decision.  Set up a suitable significance level. Hypothesis testing: Procedure in hypothesis testing: Formulation of a hypothesis.  Selection of criterion  Computation  33 Decision making . Some of customers are not giving the importance of information about the product.

At 5% level of significance we test the above mentioned hypothesis as per the results obtained. value added services.Formulation of hypothesis: The conventional approach to hypothesis testing is not to construct a single hypothesis about the population. These hypotheses must be so constructed that if one hypothesis is accepted. H (a) Alternative Hypothesis: . but rather to set up two different hypotheses. implies that researcher is running the risk of being wrong in accepting or rejecting the hypothesis is 1 out of every 100 occasions.: These are the factors which significantly influencing the customers for opting airtel pre paid mobile. A significance level of. a 1 per cent. the other is rejected and vice-versa these two hypotheses are: Assuming a null hypothesis to be H (o) and the alternative hypothesis as H (a). say 5 per cent. the risk of making the wrong decision is about 5 out of every 100 occasions. 34 . say 1 per cent. We formulate the hypothesis as following: H(o) Null Hypothesis: : Factors which are not significantly influencing the customers for opting airtel pre paid mobile are brand image. Selection of test criterion: We can easily test our hypothesis through Chi-square test. significance level provides greater confidence to the decision than a 5 per cent significance level. low entry cost and strong connectivity. means that in the long run. Thus. Set up a suitable significance level: The confidence with which a null hypothesis is rejected or accepted depends upon the significance level used for the purpose. A significance level of.

we take the significance level of: 5 per cent. Chi Square = Where.For our calculations. = Chi-square O = Observed value E = Expected value : 35 .

COMPUTATION: Summary of Observed Data: Factors Connectivity Cost Brand image Service package Discount schemes Value added services Total Agree 87 90 72 90 89 92 520 Disagree 13 10 28 10 11 8 80 total 100 100 100 100 100 100 600 Degree of Freedom= (c-1) (r-1)= (2-1) (6-1)= 5 Expected value (agreed) = 520*100/600= 69.3 36 .3 Expected value (disagree)= 80*100/600= 13.

8 79.3 Disagree 13.6 69.Summary of Expected Data: Factors Connectivity Cost Agree 69.3 13.3 82.6 69.3 82.3 total 82.3 82.3 13.6 37 .6 69.6 Brand image Service package Discount schemes Value added services Total 69.3 13.3 13.3 82.6 415.3 82.3 13.6 69.8 495.

40 34.8 52.3 14.3 69.7 20.3 69.8 515.15 3.0 (O-E)^2/E 4.3 13.0 10.3 -3.3 13.20 38 .3 69.3 -5.97 7.7 20.43 .3 (O-E)^2 313.3 -2.8 216.4 136.3 13.2 428.001 0.2 .15 0.4 7.3 13.51 6.7 -0.3 69.09 10.3 (O-E) 17.18 0.3 13.3 69.11 0.7 2.9 28.29 428.18 1.7 11.7 22.7 -3.Calculation of chi square value: O 87 90 72 90 81 92 13 10 28 10 11 8 E 69.76 0.3 13.10 6.

39 .= 34. value added services.05 is 11. Hence H(o) was rejected and H(a) was accepted.20 is more than the table chi-square value 11.070 .070. Decision making Thus it is clear from test of hypothesis with the help of chi-square test that “: Factors which influencing the customers for purchasing the airtel pre paid mobile are brand image. Since the calculated chi-square value 34. low entry cost and strong connectivity. It falls in the rejection region.20 The table chi-square value with5 [(2-1)(6-1)] degree of freedom at the significance level of 0.

In this I came to know about the consumers need and expectation levels regarding airtel pre paid mobile and ascertainable levels of consumer satisfaction. In this I have tried to find out consumer’s cost association with the product. I came to know about the how much they give the importance of brand image. • • • • • Most of the people are satisfied with the services of airtel pre paid mobile.FINDINGS • Consumer research deals with consumer and their problems and solution to the problems. The perception of consumers towards the airtel pre paid mobile is very good. 40 . Promotional schemes affect the consumer in purchasing decision.

 They should focus on their value added services to retain most of the customers. 41 .  People are unsatisfied with the cost and service packages of airtel pre paid mobile so companies should concentrate in this regard also.SUGGESTIONS AND RECOMMENDATIONS  Company should concentrate more on promotional schemes.  Focus on discount schemes because consumer always attracted through discount schemes. because mostly people get attracted through promotional schemes.

42 .Limitations  The study is restricted only to Airtel pre paid mobile.  Since the researcher selected 100 sample sizes it is not sufficient to cover opinion of entire population.  Time duration in conducting the research is very low. The view of their other areas is not taken  Respondents concentrated where the customers of Airtel pre paid mobile only. noida respondents.

So the consumer perception and learning towards the airtel pre paid mobile is in positive view. cost and service packages.Conclusion The main objective of my analysis was to find whether the customers are satisfied with the airtel pre paid services or not. 43 . There are various factors involved which influence the consumer for opting the airtel pre paid mobile. The consumers are highly associated with brand image. How the promotional schemes affect the consumer buying behaviour. So I find out here that the consumers of airtel pre paid mobile are highly satisfied with their services and promotional schemes are very attractive to retain the customers. strong connectivity.

in/wps/wcm/connect/airtel. marketing management.org/customer/satisfy. (Pearson education.H.Bibliography Books: ► Kotler Philip. & bitta delia consumer behavior ( tata Mc. 4th edition ) ► Satish K Batra And S. 12th edition).wikipedia.com http://managementhelp.customersatisfaction. Web sites: www.in/Home http://www. Graw hill.htm http://airtelprepaid.com/ Magazines: 44 .H Kazmi. ► Louden D.in/airtel.L.

• • Business world Business today 45 .

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