Executive Summary The Indian telecom sector is characterized by stiff competition among 10 national level players and two

government owned firms, falling APRU (Average Revenue per User), innovative tariff plans and shrinking profits. The addition of two more firms (Sistema-Russian and Telenor-Norway based firms) in Indian market will further drive down the tariffs and consequently corporate profits as well. In spite of a difficult pricing environment, we believe Indian telecom sector is attractive. The key reason is vast population of India of over 1 Billion which makes it as one of the biggest telecom market in the world. After USA and China, India is third biggest telecom market in the world currently. As the fastest growing telecommunications industry in the world, it is projected that India will have 1.159 billion mobile subscribers which will exceed the total subscriber count in the China by 2013. Indian mobile subscriber base grew by 9.07% in second quarter of 2009 reaching to total 427.29million subscribers. Bharti Airtel is a clear market leader with 23% of market share, Reliance and Vodafone are gaining market share on a continuous basis and has 19% and 18% market share respectively. TATA has recently launched new service in GSM space and lower tariff plan (per second plan) in a bid to win additional market share but still it is lagging behind with 8% market share. A large population, low telephony penetration levels, and a rise in consumers' income and spending owing to strong economic growth have helped make India the fastest-growing telecom market in the world. Bharti Airtel now is the largest telecom company in India.

Introduction to Industries in India Ind ia is de velop ing into an open- market econo my, yet traces of its past autarkic po lic ies re ma in. Ec ono mic libera lizatio n, includ ing reduced contro ls on fore ign trade and invest me nt, began in t he early 1990s and has served to accelerate the country's growt h, whic h has averaged more t ha n 7% per year s ince 1997. India 's d iverse econo my enco mpasses traditio nal villa ge farming, modern agricult ure,

ha nd icrafts, a wide range of modern ind ustries, and a mult it ude o f services. Slight ly more t ha n ha lf o f the work force is in agric ult ure, but services are the major so urce of econo mic growth, account ing fo r more t ha n half o f Ind ia 's o utp ut, wit h o nly o ne-t hird o f its labour force. Ind ia has capitalized on its large educated Englis h-speaking populatio n to beco me a major e xp orter of informat io n techno lo gy services and so ftware workers. An ind ustrial slowdow n early in 2008, followed by t he globa l financ ia l cris is, led annua l GDP growt h to slow to 6.5% in 2009, still t he second highest growt h in t he world a mo ng major econo mies. Ind ia e scaped the brunt o f the globa l fina ncia l crisis because of cautio us bank ing po lic ies and a relative ly low depende nce on expo rts for gro wth. Do mestic de ma nd, driven b y purc hases of consumer durables and auto mob iles, has re-emerged as a key driver of growt h, as exports ha ve fa llen since the globa l cris is started. Ind ia 's fiscal de fic it increased substantially in 2008 d ue to fue l a nd fe rt ilizer subsid ies, a debt waiver pro gra m for fa rme rs, a job guarantee pro gra m fo r rura l workers, and stimulus e xpend it ures. The go vernment abando ned its de fic it t arget a nd a llowed t he de ficit to reach 6.8% o f GDP in FY10. Neve rthe less, as shares of GDP, bot h

go vernment spend ing a nd ta xat io n a re a mo ng the lowest in t he world. The go vernment has expressed a co mmit me nt to fiscal sti mulus in FY10, and to defic it reduct io n t he fo llowing two years. It has increased the pace of privat izatio n of go vernme nt -owned co mpanies, partly to o ffset t he de ficit. Ind ia 's lo ng term c ha lle nges inc lude widespread poverty, inadequate physica l and social infrastructure, limited e mp loy me nt opport unit ies, and insuffic ie nt access to basic and higher ed ucatio n. Over t he lo ng-term, a grow ing pop ulat ion a nd changing de mo graphics will o nly exacerbate social, econo mic, and enviro nmenta l prob le ms.

0 per cent. These relate to macro-economy. The annual rate of growth in Broad Money .5 per cent in 1995-96 and 5.Macro Economic View of Indian Economy Emerging Concerns and Indian Economy: There are five major areas of concern today. and the current year's position would not be very different. I will Address clearly identifiable areas currently being looked at by market participants and the present status of Indian economy in respect of each of these. An investment as a percentage of GDP has also been reasonably steady in the period at around 26 per cent on the average. A) Macro-Economy The annual growth rate of Gross Domestic Product has been in the range of 7 to 7. The current account deficit as a per cent of GDP has been consistently in the range of 1 to 1.0 per cent in 1996-97. regulation of the financial sector. Fiscal deficit of Government of India as a percentage of GDP had come down gradually from 6. it is hoped that there would be no directional change. the state of corporate sector and the broader issue of transparency in the system.. Without entering into a debate on the appropriateness of such concerns or the differences about what should be a concern or what magnitude should engage attention. fiscal years 1994-95 to 1996-97). and has averaged 1. external sector management. whenever one analyses an emerging economy. estimates range between 5. Though there are some fiscal strains.8 Per cent.0 to 6. More important.1 per cent in 1994-95 to 5.e.5 per cent during the last three years (i. For the current year.3 per cent. the specific aspects of concern in each are different now compared to say a year ago.

3 per cent and in the current year it should be around 15. This year.3 per cent in 1994-95.15 per cent of GDP at market prices.6 per cent and 16.1 per cent and that of imports 13.0 and 23.9 billion for the entire 1996-97. both in SDR terms. The Foreign Direct Investment flows continue to rise and are USD 2.6 per cent. in SDR terms. (1996-97) there has been a deceleration to 9.4 per cent between 1994-95 and 1996-97 and the wholesale Price Index this year is estimated to be around 6 per cent.5 per cent. the latest CSO estimate places GDP growth of 1996-97 at 7. exports have grown at 13. More important.5 per cent and net capital inflow from abroad for the last two years has been placed at 1.7 per cent during 1994-95 and 1995-96 while imports have grown at 18. non-food credit growth has averaged 21 per cent per annum in the last three years and this year it is expected to be around 20 per cent including investments in PSU and corporate bonds. which averaged 7. respectively. As you may be aware. debentures and CP. B) External Sector On the external front.6 and 10.(M3) was 22. FII investments during the current year so far are less compared to $ 1. less than last year's 6.7 billion during the whole of 1996-97.December 1997-98 as against $ 2. Last year. it is expected that it would be at least $1 billion during this year. Finally.5 per cent. during April-December.7 per cent.86 and 1. but. There is a similar pattern in regard to inflation. The flows on . but dropped subsequently. pulling down the annual average growth rate between 1994-95 and 1996-97 to 17.5 billion during April.9 per cent. growth of exports was 9. the policy framework and the procedures ensure that most of the value of FDI flows to infrastructure And productive sectors.

Of course. In fact. there is no rigid rule. a micro level productive use of such external debt is ensured during the approval process.4 billion at the beginning of the financial year.4 billion compared to $ 22. Our short-term debt as a per cent of our reserves is around 27 per cent. commercial borrowings and non-resident deposits are positive on a net basis. some mention about external debt management and magnitudes would be in order.6 billion. We observe great prudence in these matters while exercising flexibility. the foreign currency reserves as on February 6. including trade related credit beyond 180 days. We have been very cautious by generally limiting such aggregate outstanding liabilities and rarely does it exceed 10 per cent of reserves. has to be approved by the Government/RBI. 1998 are higher at $ 24. Each external commercial borrowing.. our volume of external debt has been generally on the decline and during 1993-97 total external debt was reduced by one billion US Dollar. The invisibles have also been on track and as a result. We publish all such operations from time to time. Sometimes. Finally. it is about seven per cent. In fact. More important. The RBI controls by a process of approval of each case. strict control over external debt is the cornerstone of our external sector liberalisation.Account of external aid last year. including maturity. Indeed. . while there was accretion to reserves of the order of US $ 16. interest terms etc. and broadly as per expectations at the beginning of the year. while as a per cent of total external debt. the exchange rate is flexible but volatility has been and is being checked by the Reserve Bank of India. the issue of forward liabilities of the central bank is raised. the total short term debt.

our banks' total exposure to assets of Asian and East Asian countries was less than US $ 500 million.9 per cent in 1995-96. are closely monitored. Sixthly. First. I would like to emphasise some major features. In particular.5 per cent of the extent of equity in 1993-94 and it has come down to 57. as a percentage of total debt. Fifthly. lending to stocks is also severely restricted and there is a ceiling of 5 per cent of incremental deposits for this purpose. open positions etc. Actually. Second.(C) Financial Sector As most of you may be aware. we have adopted international standards of capital adequacy for banks.. off balance sheet items of banks are minimal and closely monitored. Also. very little of this facility has been used. and foreign liabilities are well below 10 per cent of total liabilities. the banks are permitted to borrow or invest abroad only up to 15 per cent of their net unimpaired capital. on the basis of annual surveys audited by the RBI indicates that corporate debt of 1730 selected non-financial public limited companies was 76. regulatory and prudential framework recently. and their non-performing assets are closely monitored with a view to bringing them down. external debt was about 10 per cent in respect of large corporates and less than 2 per cent in respect of all corporates covered by the study in respect of 756 selected . lending to property is frowned upon and is generally restricted to housing finance. whose exposures. the non banking financial companies have been brought under tight legislative. Fourthly. Third. (D) Corporate Sector The debt of corporates as a percentage of equity. by virtue of close monitoring and approvals required and in the absence of derivatives etc. The authorised dealers (apart from a few money changers) on foreign exchange are almost always banks.

The Reserve Bank releases a weekly statistical supplement which is virtually a balance sheet of the RBI and captures monetary. (E)Transparency On all areas of public interest involving RBI's operations. corporate sector of India as a whole is not overexposed to external liabilities. The Parliamentary oversight and occasional recourse to judiciary by affected parties ensure that an acceptable degree of transparency is maintained. including for instance forex operations of the Reserve Bank. including outstanding forward liabilities in the monthly bulletin. press releases on a daily basis are common. fiscal and external sector developments. The formal statements of Governor. At the present juncture. In addition. especially on monetary and credit policy developments clearly express a view of monetary and Credit developments. therefore.companies. One can note all the forex transactions of the RBI. . the monthly bulletin of the RBI gives a wide array of information. The Annual Report in Trends in Banking contains a wealth of authentic information and the latest issue gives bank-wise ratios relating to performance.

Social T.PESTLE ANALYSIS OF INDIAN ECONOMY PESTLE Analysis in Business Environment In business PESTLE analysis role is very important. Originally designed as a business environmental scan. business or strategy planning. PESTLE means: P. this is the followings: A company looking at its market  A product looking at its market  A brand in relation to its market  A local business unit or function in a business  A strategic option. the PESTLE analysis is an analysis of the external macro environment in which a business operates. however are important to be aware of when doing product development.Political E.Economical S. such as entering a new market  A potential acquisition  A potential partnership . These are factors which are beyond the control or influence of a business.Technological L.Legal E-Environmental The PESTLE subject should be a clear definition of the market being addressed.

the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. In the 2009 Indian elections. State politics dominated by several national parties including the INC. The political Situation in the India is more or less stable. Overall India currently has a coalition led government and both major political parties the UPA and BJP. Most of its democratic history. the federal Government of India has been led by the (INC) Indian National Congress. The government type is federal republic. and Hindus. whichever comes in power. separate personal law codes apply to Muslims. supported by various left-leaning parties and members opposed to the BJP. Christians. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce. and various regional parties. The Bharatiya Janata Party (BJP). accepts compulsory ICJ jurisdiction with reservations. Based on English common law. . the INC won the biggest number of Lok Sabha seats and formed a government with an alliance called the United Progressive Alliance (UPA). judicial review of legislative acts. India is the biggest democracy in the World. the Communist Party of India (CPI). An investment opportunity Details of PESTLE factors/Impact in India are discussed in brief POLTICAL These refer to government policy such as the degree of intervention in the economy.

Central Excise and Sales Tax and Service Tax. personal interest on politicians. influence of party forums etc. These are the major factors those affect on political environment:(i) Taxation policy India has a well developed tax structure with a three-tier federal structure. . The power to levy taxes and duties are distributed among the three tiers of Governments. Political pressures in ruling government and vote bank problems. (ii) Privatisation Reduce the political interface in the management of enterprises. The Local Bodies are empowered to levy tax on properties. Ideological inclination of political parties. Octroi Tax on Markets and Tax/User Charges for utilities like water supply. leading to improved efficiency and productivity. In India this time do many govt company Good performance but some time later there are facing many problems so the go for privatisation. For example. in accordance with the provisions of the Indian Constitution. Bangalore established itself as the most important IT centre of India mainly because of political support. In India many political factors those effect in business environment. The main taxes/duties that the Union Government is empowered to levy are Income Tax income.It comprises political stability and the policies of the government. and Duty on Entertainment and Tax on Professions & Callings. The principal taxes levied by the State Governments are Sales. Land Revenue. create political environment. the State Governments and the Urban & Rural Local Bodies. etc. Customs duties. State Excise. drainage. Stamp Duty. comprising the Union Government.

If govt stability not market is not improve and no one come here for investment.(iii) Deregulation India Govt makes some Act to freely do business in India. inflation and exchange rates. taxation changes. (i) International trade regulations International trade regulation day by day India makes it flexi able for foreign trade. (iii) Government stability In India past 10 years govt is stable. ECONOMICAL It includes interest rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behaviour. Before 10 years India facing govt stability. (iv) International stability No wars. For example: y higher interest rates may deter investment because it costs more to borrow y a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency y inflation may provoke higher wage demands from employees and raise costs . economic growth. (ii) General initiatives Some policy to first Political initiates for the business environment in India. and no any type of war like Iraq they make uncertainty in market. no any country home problems.

the Government of India announced a new industrial policy in July 1991.y higher national income growth may boost demand for a firm's products In order to solve economic problems of our country. The broad features of this policy as follows: y The Government reduced the number of industries under compulsory licensing to six. reduce unemployment and poverty. y Become self-reliant and set up a strong industrial base with emphasis on heavy and basic industries. y Reduce inequalities of income and wealth. . the government took several steps including control by the State of certain industries. The main objectives of India¶s development plans were: y Initiate rapid economic growth to raise the standard of living. central planning and reduced importance of the private sector. y Policy towards foreign capital was liberalized. As a part of economic reforms. y Adopt a socialist pattern of development ² based on equality and prevent exploitation of man by man. y Disinvestment was carried out in case of many public sector industrial enterprises. The share of foreign equity participation was increased and in many activities 100 per cent Foreign Direct Investment (FDI) was permitted.

demographic features and mobility of population are part o the social environment. There is a continuous growth in per capita income. SOCIAL Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. The economic factors in India are improving continuously. values. In the India.5. dollars in the year 2009. beliefs.965 trillion U. Today India reserve Us dollar in Good condition. This will lead to higher buying power in the Hands of the Indian consumers. 33283 by the end of 2009-2010. and China. It also means some firms have started to recruit older employees to tap into this growing labour pool. Literacy rate. customs.real growth rate in 2009 was 6%.S. for example. lifestyle. Foreign direct investment rose in the fiscal year ended September 2009 to about US$ 10.532 billion. The GDP. India has the third highest GDP in terms of purchasing power parity just ahead Japan and behind U. y Foreign Investment Promotion Board (FIPB) was set up to promote and channelize foreign investment in India. It describes the characteristics of the society in which the organization exists. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. The GDP (Purchasing Power Parity) is estimated at about 3.y Automatic permission was now granted for technology agreements with foreign companies. the population has been ageing.S. India¶s per capita income is expected to reach Rs. India GDP is now 6. It is important for managers to notice the direction in which the society is moving and formulate progressive policies according to the changing social scenario .

There has a (i)Mobility (ii)Income distribution (iii)Population demographics (iv)Attitude to work and leisure (v)Standard of education and skills (vi)Working conditions TECHNOLOGICAL New technologies create new products and new processes. Today India is a big market in mobile sector here 5-6 player operators and new operators launch their services soon. A heavy infrastructure for bandwidth. This population is divided in the following age structure: 0-14 years ± 31. bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs. Online shopping.8%. Today in India 3G technology starts.1billion people.1% and 65 years and above ± 5. India have many Technological Projects. improve quality and lead to innovation. Infosys and many more. Good Service provider in IT sector ex TCS. 15-64 years ± 63. computer games.1%.India is the second most populous nation in the world with an approximate population of over 1. These developments can benefit consumers as well as the organisations providing the products. BSNL and Reliance have more covered city by optical fibre. IT Development . online gambling and high definition TVs are all new markets created by technological advances. MP3 players.

In recent years in the India There have been many significant legal changes that have affected firms' behaviour. an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Essential Commodities Act 1955. The introduction of discrimination and disability discrimination legislation. copyright permission. In India take many type of permission to the sate govt or central govt. (i)Employment law (ii)Trade and product restrictions (iii)Health and safety regulations (iv)EU and international laws (v)Monopolies commission .(ii)New Materials and processes (iii)Government technology funding (iv)Speed of technology transfer (v)Software upgrades LEGAL These are related to the legal environment in which firms operate. This consists of legislation that is passed by the parliament and state legislatures. Legal changes can affect a firm's costs and demand. and many types of other permission. In India many type of act like license permission. Standards of Weights and Measures Act 1969 and Consumer Protection Act 196. Examples of such legislation specifically aimed at business operations include the Trade mark Act 1969.

Changes in temperature can impact on many industries including farming. (i)Pollution problems (ii)Planning permissions (iii)Waste disposal (iv)Noise controls (v)Environmental pressure industrial activity i.e. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example. In India we know that many types of environmental problems this are basic things but more important for our environment. pollution free necessary condition of industrial organization.abiotic factors and their interaction with one another. the highest number are assessed to occur in India. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. Of the 3 million premature deaths in the world that occur each year due to outdoor and indoor air pollution. more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. is .ENVIORNMENTAL Environmental factors include the weather and climate change. tourism and insurance. Industrialization and urbanization have resulted in a profound deterioration of India's air quality. also biotic factors .

most notably 3G licensing. Etisalat from UAE. . Japan¶s NTT DoCoMo and Russia¶s Sistema. OPPURTUNITIES: The government is currently considering recommendations made by TRAI to allow the operations of MVNO¶s (Mobile Virtual Network Operator) in the mobile market. Telecom Malaysia.SWOT ANALSIS OF TELECOM SECTOR STRENGTHS: Strong mobile subscriber¶s growth is continuing. Demand for mobile Value Added Services is strong and expected to grow.K. WEAKNESS: Mobile market is still inclined towards prepaid users. with the market benefiting from healthy degree of competition. Vodafone from U. The dominance of prepaid services has contributed to declining mobile average revenue per user (ARPU) levels. Disagreement between the regulator TRAI and government ministries has led to delayed policy implementation in a number of areas. The mobile market plays host to a large number of strategic investors including Singapore¶s SingTel.

The government will cut license fees upto 33% for those operators whose service covers 95% of the residential area in a calling circle. THREATS: Government plans to increase spectrum usage charges for telecom companies. Network capacity. Stiff competition in the market will make service providers difficult to retain customers. could struggle to keep up with demand. particularly in the mobile market. There is an opportunity to cover the vast untapped rural market. CURRENT STATISTICS OF MACRO ECONOMIC INDICATORS OF INDIA .

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Over the past 10 years. promising rich returns on investments. India has registered the fastest growth among major democracies. A combination of factors is driving growth in the telecom market. as local spending patterns change. Russia. ³India could emerge as the world¶s third largest economy and of these four countries. It reports. Riding on expectations of overall high economic growth and consequent rising income levels. According to a recent Goldman Sachs report. .could become a much larger force in the world economy. According to a NasscomMcKinsey & Co. It represents the fourth largest economy in terms of Purchasing Power Parity.the BRIC economies. Study. The share of the services sector as a percentage of total GDP is also predicted to rise from the current 46 per cent to about 60 per cent by 2020.TELECOM INDUSTRY SCENARIO IN INDIA The Indian telecommunications market has been displaying sustained high growth rates. India has the potential to show the fastest growth over the next 30 to 50 years´. India and China . ³Rising incomes may also see these economies move through the µsweet spot¶ of growth for different kinds of products. having grown at over 7 per cent in four years during the 1990s. by 2008. it offers an unprecedented opportunity for foreign investment. The boom in the services sector is slated to come from India. the Indian IT software and services sector will account for US$ 70-80 billion in revenues. This could be an important determinant of demand and pricing patterns for a range of commodities´. it¶ll employ 4 million people. The report also states that. over the next fifty years. and account for 7 per cent of India¶s GDP and 30 per cent of India¶s foreign exchange inflows. emerging as a chosen destination for software and other IT enabled services. tourism etc. Brazil.

According to the Vision 2020 document for the Planning Commission of India. translating into 882 million by year 2020.90 million in quarter ending December 2008. Over the years.68 million in quarter ending December 2008.61 lakhs in quarterly ending march 2009 . the country will witness continued urbanization.39 lakhs in quarter ending December 2008 to 5. each having a population of one million or more.96 million in quarter ending March 2009 as compared to 37. SERVICES PROVIDED BY THE TELECOM INDUSTRY Wire line Services 1 Wire line services subscriber base stood at 37. Over the next five years. 180 million people are expected to move into the consuming and very rich classes. Between 1995 and 2002. nearly 100 million people became part of the consuming and rich classes. This profile of concentrated urban population will facilitate customized telecom offerings from operators.Population projections from the Planning Commission of India suggest that the share of the working age population (15-64 years) in total population will grow from the current 59 per cent to about 65 per cent. The urban population is expected to rise from 28 per cent to 40 per cent of total population by 2020.58 million in quarter ending March 2009 as compared to 10. spending power has steadily increased in India. 3 Number of Village Public Telephones (VPTs) have increased from 5. 2 Rural Wire line Subscriber base stood at 10.Future growth is likely to be concentrated in and around 60 to 70 large cities.

928.306.261 Reliance the Communications 1.76 31st as 346.85%) MTNL 3.454 on 2009 391.003. Teleservices Ltd 95.4 Number of Public Call Offices (PCOs) have increased from 5.446.87 wireless were All India 37. The breakup of wire line subscriber base in India as of September 2010 is given below.254(7. quarter million subscribers added.978 Tata Teleservices 1.514.181 HFCL Infotel 165.152.969 Wireless have subscribers reached million as March against million in quarter.334 .237 Bharti Airtel 2.98 million in quarter ending December 2008 to 6. Wireless Operator Subscriber base Services 1 The BSNL 28.89 subscribers previous During this 44.20 million in quarter ending March 2009.

CDMA The CDMA subscriber base has reached 94.864.88%) and 94.26 million in the quarter ending March 2009 as against 258.12%) at the end of March 2009.23 million at the end of the previous quarter.26 million GSM subscribers (75. GSM The GSM subscriber base has reached 297.795.031 Reliance Communications 93.50 million in the quarter ending March 2009 as against 88.66 million at the end of the previous quarter The breakup of wireless subscriber base in India as of September 2009 is given below Operator Subscriber base Bharti Airtel 118.613 .50 million CDMA subscribers (24.2 Technology-wise Wireless Market Share There are 297.

329.130 .611.023.861.649.214 Idea Cellular 57.872 Tata Teleservices 57.730 Uninor 1.042.959 BSNL 62.875.913 MTS India 3.997 MTNL 4.449 Aircel 31.401.208.741 Loop Mobile India 2.Vodafone Essar 91.

The growth rate of broadband subscribers in this quarter is 12.54 million Internet subscribers at the end of March 2009 as compared to 12.411 Services 525.22 million at the end of March 2009 as compared to 5. there are 117. 3) Broadband Subscriber Growths .The number of Broadband subscribers (with a download speed of 256 Kbps or more) was 6.82 million wireless data subscribers at the end of March 2009 (capable of accessing data services including internet through mobile handsets [GSM/ CDMA]).52 million at the end of December 2008. This growth rate is higher as compared to the growth rate of 5.01% at the end of December 2008.68%.862 Stel Internet (Including Broadband) All India 141.147. ISP Providers In INDIA BSNL MTNL Bharti Airtel Reliance Sify Hathway Tata % Market Share 54% 16% 8% 7% 2% 2% 2% .922 1) There are 13.30%.85 million Internet subscribers at the end of December 2008 registering a growth of 5. 2) Besides above.HFCL Infotel 341.

.244 million Ethernet LAN. 0.22 million broadband subscribers. 0.072 million Wireless. 0.020 million Leased Line and 0. 0.002 million use other technologies.474 million Cable Modem.Others Total 8% 100% 4) Broadband Subscribers Share (Technology wise) ± Out of total 6.042 million Fiber.364 million are DSL based. 0. 5.

2010 and there were nine bidders in the fray for the slots of 3G spectrum on the block. Among the major bidders. The government auctioned three slots in 17 telecom service areas and four slots in the remaining five states of Punjab.5765 cr for 11 telecom circles.12290 cr for 13 telecom circles. Jammu and Kashmir and Himachal Pradesh. Vodafone. while India¶s largest 2G Mobile service operator Bharti Airtel paid Rs. Idea cellular. Bihar. Reliance Communications at Rs 3316.3247 crore.93 cr y Mumbai: Reliance. followed by Mumbai at Rs.LATEST DEVELOPMENT A WIDE LOOK ON INDIA¶S 3G AUCTIONS: India¶s auction for 3G GSM Service licence ended today with bids for pan-India licence touching Rs 16.751 crore which ensures the Government of India a revenue of Rs 67.3317 crore. Vodafone Essar will paid Rs.07 cr y Maharashtra & Goa: Tata Com. Bharti Airtel at Rs. The List of 3G Winners (Private Operators) : y Delhi & NCR: Vodafone. 11617 crore for 9 telecom circle while Reliance Communication paid Rs 8583 crore for 13 telecom circles.82 cr . Vodafone at Rs.719 crore. Bharti.1257.3247. Delhi circle emerged the most valuable circle at Rs. No single bidder bid for a pan-India 3G license so state operator BSNL would be remain the biggest 3G operator in India. Orissa. Idea cellular paid nearly Rs. The 3G auction had commenced on 9 April.

Tata Telecommunications at Rs.P (East): Aircel. Aircel at Rs.01cr y Haryana: y Madhya Idea Cellular. Tata Telecommunications at Rs. Tata Telecommunications at Rs. Idea.1579. Vodafone.364. Tata Telecommunications. Idea Cellular.312. Reliance Communications.P. Aircel at Rs. Tata Telecommunications. Aircel at Rs.94 cr y Kolkata: Vodafone. Idea at Rs.06 cr y Andhra Pradesh: Bharti Airtel.1464. Aircel.258.y Gujarat: Tata Com.91 cr y Tamil Nadu: Bharti. Idea Cellular.14 cr y Karnataka: Tata Telecommunication. Aircel at Rs. Vodafone at Rs.6 cr .1076. Reliance Communications at Rs. Tata Telecommunications.4 cr y Rajasthan: Reliance Communications. Aircel. Bharti at Rs.58 cr Pradesh & Chhattisgarh: Idea Cellular. (West): Bharti.26 cr y Kerala: Idea cellular.321 cr y U. Vodafone at Rs.544.322.48 cr y Punjab: Idea Cellular. 514 cr y U. Vodafone. Reliance Communications. Bharti.1373. 222.

Telco¶s were looking at a rationalisation of tax and levies.46 cr y Orissa : Stel.36 cr y Himachal Pradesh: Bharti. Idea cellular.30 cr y Jammu & Kashmir : Idea. Aircel at Rs.Reliance Telecom. Aircel.41. but the bidding price would be determined by the auction price. Telco¶s wanted a re-look at direct tax. Bharti. a re-look at licenses and indirect taxes .23 cr. Aircel at Rs. uniform license fee of one per cent of the AGR. Aircel at Rs. Bharti.203. Reliance at Rs.123.30. tax holidays and section 81 (A).30 cr State telecom operator BSNL and MTNL already received 3G spectrum outside the auction process. Aircel. Bharti. STel. Reliance at Rs. Reliance at Rs. Vodafone.98 cr y Assam: Reliance.96.42. Reliance at Rs. Telecom Sector and Union Budget 2010: The union Budget 2010-11 neglected the telecom industry's special demands. Bharti.y West Bengal:Bharti. y Bihar & Jharkhand : Stel.48 cr y North East: Aircel.37. and launched 3G mobile services in more than 430 cities across India. Reliance.

The continuation of exemption from basic. He further added that the increase in Central excise duty from 8% to 10% is another area of concern and will lead to an increase in cost of service. components and accessories of mobile phones is a welcome step and would help towards penetration of affordable mobile service especially to rural areas. Dua said that while the reduction in Corporate Surcharge would provide a minor relief. . CVD and special additional duties (SAD) granted to their parts. but at the same time the increase in MAT from 15% to 18% is a major area of concern. COAI welcomed the impetus given by the Finance Minister to the use of clean/ alternate energy.As far as the telecom sector is concerned.

the cellular services provider in Karnataka and Andhra Pradesh circles in 1999 Bharti Telesonic entered into a joint venture. Bharti Aquanet. 1995 for promoting investments in telecommunications services.36% equity interest in Bharti Mobile (formerly JT Mobiles). Bharti Telecom and British Telecom formed a 51%:49% joint venture. With SingTel for establishing a submarine cable landing station at Chennai in 2001 A 50:50 joint venture between Bharti and SingTel. to undertake the largest infrastructure project between Singapore and Indian companies in 2001 Bharti Airtel acquires Zain Telecom making itself first Indian MNC to have Global Footprint Acquisitions / Strategic Alliances . Its subsidiaries operate telecom services across India. Bharti BT Internet for providing Internet services.73 billion (Turnover) FY09-10 Global Presence/ Marketing Network The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 94 cities. 1. Sales/Revenues/Turnover Rs. in 1998 Bharti Tele-Ventures acquired an effective 32. Bharti¶s operations are broadly handled by two companies: the Mobility group and the Infotel group.OVERVIEW OF 2 PLAYERS IN TELECOM INDUSTRY 1) BHARTI AIRTEL Name Year of Establishment Company Profile Bharti 1985 Bharti Tele-Ventures Limited was incorporated on July 7.

the US. national and international long distance services.000 kilometres of Marketing fibrotic cable systems in India. ("Yipes"). mobile data services through its R-World mobile portal. FLAG Telecom amalgamates with Reliance Gateway. Name Year of Establishment Company Profile Acquisitions / Strategic Alliances International wholesale telecommunications service provider. Reliance Infocomm also offered for the first time in India. the leading provider of managed Ethernet services in 2007 . Sales/Revenues/Turnover USD 767 million (Revenue) FY09-10 Reliance Communications has IP-enabled connectivity Global Presence/ infrastructure comprising over 150. a wholly owned subsidiary of Reliance Infocomm in 2004 Reliance Communication acquired a US based Yipes Holdings. Europe. Middle Network East. and the Asia Pacific region. data services and a wide range of value added services and applications aimed at enhancing productivity of enterprises and individuals. Reliance Infocomm offers a complete range of telecom services covering mobile and fixed line telephony including broadband.Future Prospect Bharti Airtel company is planning to set up 3000 more towers as part of enhancing their rural coverage and will now focus on rural and semi-urban areas. This portal leverages the data capability of the CDMA 1X network. Inc. 2 RELIANCE COMMUNICATIONS Reliance Communications 1999 Reliance Telecom's cellular services are available in 340 towns within its eight-circle footprint.

500 towns from the present 2. . South Korea.000 towns and expansion of its GSM operations. The company also plans to launch international data roaming facility in Canada. followed by Latin America and then to Asian countries like Japan. It also plans to spend Rs 5 billion every year for the next three years. China and other countries. This CAPEX will be used for network expansion of its CDMA business to over 4.Future Prospect The company plans to concentrate on mobile content services other than voice.

This survey research may be also aimed as to estimate potential buyer for the product. For this it is very essential for an organization to know about the view of consumers and their competitive products. The objective of the study is as under:. To suggest the steps for the sales promotion of the product . To find out solution of customers problems. .OBJECTIVE OF THE STUDY Every organization has to achieve its organization goals. To know about customer acceptance of the product . To study the requirement regarding to the future of the product To analysis the consumer perception about the quality of the services . To know how the company has been successful in encountering the aggressive marketing strategies of competitors .

. THE OBJECTIVE OF SUCH RESEARCH IS TO DETERMINE THE APPROXIMATE AREA WHERE THE DRAWBACK OF THE COMPANY LIES AND ALSO TO IDENTIFY THE COURSE OF ACTION TO SOLVE IT. FOR THIS PURPOSE THE INFORMATION PROVED USEFUL .TYPE OF RESEARCH METHODLOGY EXPLORATORY: TYPE OF RESEARCH CARRIED OUT WAS EXPLORATORY IN NATURE. FOR GIVING RIGHT SUGGESTION TO THE COMPANY.

JOURNALS. PRIMARY DATA: PRIMARY DATA IS THAT WHICH IS THE COLLECTED FOR THE FIST TIME AND THUS HAPPEN TO BE ORIGINATED IN CHARACTER. ‡ PRIMARY DATA ‡ SECONDARY DATA DATA USED FOR THE RESEARCH WORK WAS PRIMARY IN NATURE. IN THE STUDIES A QUESTIONNAIRE IS PREPARED. NEWSPAPERS ‡INDUSTRY REPORTS ‡COMPANY¶S INTERNET SITE ‡OTHER RELEVANT STUDIES MATERIAL AND WEBSITES. WHICH HAS BEEN USED TO CARRY OUT THIS STUDY. . ARE AS FOLLOW: ‡BOOKS. MAGAZINES.THE SECONDARY DATA. THE QUESTIONNAIRE CONSISTS OF 20 QUESTIONS SECONDARY DATA: SECONDARY DATA REFER TO THE DATA THAT HAS BEEN ALREADY COLLECTED . ‡ QUESTIONNAIRE SURVEY: .DATA COLLECTION METHOD THERE TWO TYPE OF METHOD OF DATA COLLECTION.

Customer Response towards Questionnaire Q. prefer most? Airtel Vodafone Reliance TATA Idea Ans. ETC. CANOPIES.SAMPLE UNIT: . PERSONAL INTERVIEWS THROUGH SELF ADMINISTERED SURVEY WAS DONE TO COLLECT THE DATA. 14% Reliance. 42% people say Airtel. MARKET RESEARCH WAS UNDERTAKEN. SAMPLE SIZE: . WHICH INCLUDED.50 PEOPLE METHOD OF COLLECTION: FIELD PROCEDURE FOR GATHERING PRIMARY DATA INCLUDED OBSERVATION AND INTERVIEW SCHEDULE IN WHICH THE QUESTIONNAIRES WERE FILED BY THE INTERVIEWER. 10% Tata & 6% Idea . MARKETS. Which Brand you. COLD CALLING. SAMPLE DESIGN CONSISTS OF RANDOM SAMPLING.MUMBAI THE RESEARCH PROCESS WAS DONE BY INTERACTING WITH NUMBER OF CUSTOMERS DURING THE ACTIVITIES PERFORMED. THAT WAS ACCOMPLISHED BY PERFORMING VARIOUS ACTIVITIES DESIGNED. 28% Vodafone.

30% people say 2-5 years. Are you using other product with Airtel? Yes No Ans. 15% people say 510 years . & 5% people say More than 10 years.Q. Here are the customer responses about the use of the Airtel product and other product rather than Airtel. 50% people say for 0-2 years. How long you have been using this Product? 0-2 Years 2-5 Years 5-10 Years More than 10 years Ans. . Q. in this segment of survey 67 % of customer are aspire with Airtel and 33 % shown interest in other telecom products in urban areas.

. Do you collect any information search before making purchase? YES NO Ans. 66% people say yes that they are search information before making purchace. Q.Nearly 95% of people says that Good Network will attract them while purchasing any connection. Which of these marketing / sales schemes attracts you while purchasing any connection? Good Network Discount scheme Service package Any other Ans.Q.

. # Target geographic area. # Finally the collected data and information was analyzed and compiled to arrive at the conclusion and recommendations given. # To these 50 people a questionnaire was given. Who are using GSM technology. Bharti¶s history. current issues. Sample size of 50 was taken. It belongs to the Telecommunications industry. # Internet # Magazines # Newspapers # Journals # Bharti Circulars # Bharti News Letters COMPANY PROFILE OF BHARTI AIRTEL The name of the company is Bharti Airtel. Sources of secondary data Used to obtain information on. procedures etc. wherever required. the questionnaire was a combination of both open ended Questions.Scope of the study # To conduct this research the target population was the mobile users. policies.

THE KEY PRODUCTS/SERVICES OFFERED BY BHARTI AIRTEL :1. Only then will we be thought of as exciting. Values We will always put our customers first. Key people of the company are : y y Sunil Mittal (Chairman & MD) Sanjay Kapoor (CEO) Our vision & promise By 2015 airtel will be the most loved brand. We will work together through a process of continuous improvement . " Enriching lives means putting the customer at the heart of everything we do. wherever they are. We will always trust and respect each other. We will meet their needs based on our deep understanding of their ambitions. on their side and a truly world class company. Innovative products and services.The company was founded on July 07. By having this focus we will enrich our own lives and those of our other key stakeholders. 2. 1995 by Sunil Bharti Mittal. enriching the lives of millions. TELE SERVICES WIRELESS INTERNET . India." Mission We will meet the mobile communication needs of our customers through :    Error-free service delivery. Cost efficiency. innovation. We will respect our associates as we respect each other. The headquarters of the company are located in New Delhi.

4.345/month (Installation Rs.3. the company has Shah rukh khan the brand ambassador 2. DTH SERVICES ENTERPRISE SERVICES 1.999/month (installation cost Rs.49 to Rs. DTH SERVICES : Airtel digital TV is a satellite television service It offers additional benefit like TV recorder Tariffs from Rs. TELE SERVICES : Bharti Airtel provides Prepaid and postpaid services for both mobile phones and fixed land lines users The company charges Nominal tariff rates to its users in all the circles where it provides service Bharti Airtel also provides gprs services to the gprs unabled handsets Airtel also provides Wireless solution in blackberry and iphone As far as advertising is concerned. WIRELESS INTERNET : Bharti Airtel has an easy to access Airtel usb modem for an instant internet connection It provides with a wide range of prepaid and postpaid plans available as per customer needs The company has most widespread network in the country Data card is available from Rs.145 to Rs.2999) 3.4290) Kareena Kapoor and Saif Ali Khan are the brand ambassadors which has helped a lot to the company to generate sales and have a competitive stand in the DTH market KEY POSITIVES: .1490 ± Rs.

WB.30 . Karnataka.Bharti Airtel is presently the no. Delhi. Rajasthan. AP.60 O. HP. TN.38 0.01 0. UP. There is a high amount of business risk involved due to the macroeconomic and political risk associated as well as lower profitability of Zain¶s Africa operations Share price currently trading at 9 months low Bharti Airtel is India centric.1mn subscribers to its present data base Bharti has paid Rs. 12295 crore for the license of 3G spectrum which will help the company to cover Mumbai. It has of lately started to spread its wings in the international market BASIC FINANCIALS OF BHARTI AIRTEL MAR 03 MAR 04 MAR 05 MAR 06 MAR 07 MAR 08 MAR09 DEBT EQUITY : 0.07 0.1 telecom operator in India It holds the largest market share of 30%+ being a market leader The network is spread across all 19 telecom circles and 4 metro cities which gives it a PAN (Presence Across Nation) India presence Bharti ± Zain acquisition would add access to 15 more countries in Africa adding 40.54 0. Bihar and Jammu & Kashmir Acquiring 70% stake in Warid telecom of Bangladesh RISK ASSOCIATED: There will be a significant deterioration in company¶s cash flow protection measure as due to a high amount of debt raised for obtaining 3G license and acquiring Zain Africa.83 0.

82 43.69% NET PROFIT (Rs.37 1210.19 7743.72% AVERAGE REVENUE PER USER (ARPU) QUARTER ended 2010 Q1 Q2 Q3 Q4 ARPU 278 252 230 220 ARPU facts of Bharti Airtel Average APRU for FY 2010 is ARPU of Bharti Airtel for Mar 2010 was ARPU of Telecom Sector for Mar 2010 was Rs.35 INCREASE IN MAR 09 MAR 10 PERCENTAGE (%) SALES (Rs.ROCE (%) PAT (Rs.220 Rs.22 0.245 Rs.46 32.47 0. IN Cr) 7744 9426 4. IN Cr) 0.23 6244.67 2012.17 0.27 23.04 39.16 23.96 22.17 0. 124 .55 34. IN Cr) 34014 35610 21.88 31.08 4033.83 33.84 RONW (%) 0.07 34.

The ARPU of Zain in Africa is Rs.52 to Rs.450 The estimated ARPU after the launch of 3G is to be estimated at Rs. Inter ± city optic fibre cables Risk associated with Zain acquisition like lower profitability. last mile connectivity of broadband operations. political and regulatory risks . BPO services. IT infrastructure. Nokia and Sing Tel Pan India presence Strong financials with increase in NP by 22%+ and Sales by 4. 200 per subscriber. 360 to Rs. than they will have to add on 90mn 3G subscribers to Break Even the cost incurred for the licensing of 3G spectrum.5%+ for FY Mar.0.47 as compared with last Quarter The below table shows the ARPU per subscriber and the number of 3G subscribers required to have a BEP The above table states that if Bharti Airtel wants an ARPU of Rs.350 ARPU = Average minutes of use per user * Average rate per minute Average minute of use per user of Bharti Airtel grew from 446 minutes to 468 minutes as compared with last Quarter Average rate per minute declined from Rs. SWOT ANALYSIS OF BHARTI AIRTEL STRENGTHS More than 130mn customers base Business has access to knowledge and technology as it holds strategic alliance with Sony-Ericsson. 2010 WEAKNESS Outsourcing of telecom and IT networks.0.

) 7 P¶s Of BHARTI AIRTEL I) PRODUCT:  Airtel Pre-paid  Airtel Post-paid  Blackberry Wireless Handheld  Value Added Services (VAS) The different value added services provided by Airtel are       Instant Balance Enquiry 24Hr recharge Facility Caller line identification Call divert. Call wait & Call Hold Multimedia messaging service (MMS) Airtel Live Portal SMS based Information Service . still low as compared to developed economies Increase in subscribers base and global wide spread with Bharti ± Zain acquisition THREATS Bharti Airtel is India ± centric Intense competition among Indian markets Changing pace of global telecommunication industry which impacted the decision of purchase of MTN indirectly opening doors for the rivals (Reliance comm.density is 52%.OPPURTUNITIES Bharti infratel can cut down cost in vast untapped rural and semi urban areas Current tale .

    

Hello Tunes & Ring Tones Voice Mail Service Easy Post-paid bill collection Gifting of Ring Tones & Hello Tunes GPRS 

Business Solutions

II) y y y III) y y y

PRICE: Customer based pricing strategies. Flexible pricing mechanism Controlled by TRAI. PLACE It has wide and extensive presence even in the remotest areas Airtel Customer Care Touch Points Distributors like E.g. Pan shops, grocery stores, chemists, outlet etc.

IV)

PROMOTION

y Large scale print and video advertising. y Big celebrities like SRK and Sachem ,Saif and Kareena are roped in to endorse the product. y In 2002 Airtel got its Signature tune from A.R. Redman, this signature tune is the most downloaded tune in India. y Provides innovations such as Hollywood movie premiers, music services such as ring back tones & many more.

V) y

PEOPLE

Bharti Airtel, our µMantra¶ for employee delight focuses on 5 Ps ± People, Pride, Passion, Processes and Performance.

y

Bharti Airtel 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.

y y y VI) y y

Dedicate and passionate workforce. One of the best customer support. Total Employs : 18,345

PROCESS Process for services is very easy and customer can avail it very easily. 121 is the customer support no. which can be dialed from anywhere in India.

VII)

PHYSICAL EVIDENCE
Physical Evidence is the material part of a service.. So a consumer tends to rely on material cues.

Factors Helping Airtel y y y y The Brand ³AIRTEL´ is itself a reason for their success. Their policy of retaining existing customers instead of just acquiring new customers. The services company is providing to the customers are better than its competitors. The network and services that the company is providing in mobility is also helping in inducing the customer. Factors could prove to be obstacles in their way y In landline and broadband services Airtel is having a limited network coverage and it is still to reach every part of the country unlike BSNL and MTNL. y Company¶s competitors are coming up with very lucrative plans, so the company needs to cut down on its prices. Suggestions y The USP (Unique Selling Proposition) of Airtel is its service so it should be made maintained in order to increase the market share.

y

The company can also work on acquiring the customers of its competitors more aggressively than what they are doing at present.

y

Among high end users there is maximum usage of local and STD calls. Hence more flexible plans separately for local and for STD calls can be workout to gain extra market share.

RELIANCE COMMUNCIATION
Reliance Communication (R Com) is the second largest Telecom company in India in terms of customers. The Company has a customer base of 105 million including over 2.5 million individual overseas retail customers. It ranks among the Top 5 Telecom companies in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. A pan-India network, covering over 24,000 towns and 600,000 villages has been established by Reliance Communications. Reliance Communications owns and operates the next generation IP enabled connectivity infrastructure comprising over 190,000 kilometres of fibber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region. Reliance Globalcom serves over 2,100 enterprises, 200 carriers and 2.5 million retail customers in 163 countries across 6 continents[2] Reliance Communication has acquired 3G license in 13 circles out of total 22 circles.

Vision:
By 2015, be amongst the top 3 most valued Indian companies, providing Information, Communication & Entertainment services, and being the industry benchmark in Customer Experience, Employee Centricity and Innovation.

Mission:
We will create world-class benchmarks by: y y y y Meeting and exceeding Customer expectations with a segmented approach Establishing, re-engineering and automating Processes to make them customer centric, efficient and effective Incessant offering of Products and Services that are value for money and excite customers Providing a Network experience that is best in the industry

Delhi and Kolkata and in also all those circles in which we are GSM incumbents. we are now the only player in the country offering both GSM and CDMA (dual technology) services on a nationwide basis. in the ownership. We are among the top two providers of wireless communication services in the country. we provide connectivity for devices such as point of sale terminals. the highest circle coverage for any existing player. fixed wireless phones/terminals. 85. we offer total telecom solutions to our corporate. 2010 representing a market share of 17. We won in all the 3 metros namely Mumbai. at a price of Rs. SME & Soho customers. operation and development of telecom infrastructure. We are among the only 3 operators who won in 13 circles. with a wireless subscriber base of over 117. Our portfolio of products includes mobile handsets. Our primary brands are Reliance Mobile for the mobile portfolio of services. as an Integrated Telecom Service Provider. Wireless We offer CDMA and GSM based wireless services on a nationwide basis. Reliance Hello for the fixed wireless portfolio of services and Reliance Net connect for wireless data services. We are also in talks with like-minded operators to offer nation-wide 3G services to our subscribers We not only provide telecom connectivity to the mass market consumer segment but also. nurtures talent and propagates RCOM Values by personal example 1) Strategic Business Units The business of Reliance Communications is organized into three strategic customer facing business units: Wireless. data. and value added services for individual consumers and enterprises.3 million as of September 30. such as wireless communications sites and towers. We . lottery terminals. state-of-theatre network and operations platform and by the largest retail distribution and customer service facilities of any communications service provider in India. We also offer public calling office (³PCO´) services over our wireless network through `independent retail operators of such facilities.2%.y y Building Reliance into an iconic Brand which is benchmarked by others and leads industry in Intention to Purchase and Loyalty Developing a professional Leadership team that inspires. Additionally. and Broadband. Following the roll-out of our GSM network. high-speed internet data cards and Blackberry services. including mobile and fixed wireless voice. Global.850 million. We offer a unique wireless multimedia experience under the brand Reliance Mobile World. subsidiaries of Reliance Communications are engaged. In addition. inter alia. Our strategic business units are supported by our fully integrated. We have pioneered rural telephony initiatives that are supported by the Government of India¶s Universal Services Obligation (USO) Fund. We have been awarded 3G spectrum in 13 out of 22 circles. and ATM terminals.

Voice. on an inter segment basis. WiMAX and NLD. we provide long distance business services including wholesale voice. In NLD. We have 2. we offer ILD carriage and termination to other carriers as well as. we provide carrier¶s carrier voice. Our business segments comprise Data. we offer NLD carriage and termination to other carriers as well as. internet bandwidth. to other business units of Reliance Communications.5 million customers for our Reliance Global Call service. enterprise data and consumer voice services. In addition.S. Hong Kong and Malaysia. rebranded as Reliance Enterprise Solutions in 2007 has made us among the top 10 Managed Ethernet services providers in the U. South and East Asia. We are further expanding our global network with implementation of the FLAG Next Generation Network cable system and by becoming a part of the Singapore-HK-Japan (SJC) consortium cable system. As part of wholesale offering. In India. ISPs. on an inter segment basis. the United Kingdom. we offer national and international (submarine cable) network infrastructure on both an Indefeasible Right of Use (³IRU´) and leased circuit basis. directly connecting 40 countries from the East coast of the United States. In Voice. Reliance Mobile has been rated as "India's Most Trusted Service Brand" amongst all service brand categories in the most reputed pan-India consumer survey conducted by "The Economic Times". In Voice. we are the largest PCO operator in the private sector. to other business units of Reliance Communications as part of the wholesale product offering. Canada. Globally.000 route Kilometres fibre optic cables within India. the Middle East. content providers and enterprises globally. India. We entered the long distance market in India in mid-2003 and are one of the largest carriers of international voice minutes with a market share of 30% for ILD wholesale inbound traffic. Global We offer comprehensive national and international long distance voice. video and data network services on an integrated and highly scalable platform. through to Japan. IPLC to carriers. We have a very strong and rapidly growing enterprise business segment outside India. We have wholesale. we have nearly 60% market share of the data card and USB modem market for laptops and PCs. The network seamlessly interconnects with our 190. . and the largest service provider engaged in this activity. Our retail services are available to customers in eight countries including the United States. carrier¶s carrier bandwidth. We also offer bandwidth and infrastructure services to other operators. Our acquisition of Yipes Holdings Inc. Due to our unique strength in high speed wireless data transmission. Our acquisition of Vance Group Limited.are also the second largest seller of mobile handsets/devices in the country. New Zealand. to Europe. bandwidth and infrastructure services. enterprise and retail product offerings in each business segment.. as part of our retail offering we offer virtual international calling services to retail customers for calls to 200 international destinations including India under the brand Reliance Global Call. Australia. Our international Data business is underpinned by our ownership of the largest private submarine cable system in the world. Usage of Reliance Global Call accounts for 40% of total retail market calls from the United States to India.

We are the clear market leader in IDC services (Reliance Data Centre) with more than 60% market share. These services are available on the Direct To Home (DTH) format to consumers in India. broadband internet access. 2008 under our wholly owned subsidiary Reliance Big TV Limited. as compared with all of our competitors who operate on predominantly copper networks. Reliance Big TV We launched nationwide satellite TV services on 19th August. toll-free services voice services for offices. medium and small enterprises for their communications. Centrex. In cities where we are not currently providing wire line direct building connectivity.000 Indian enterprises and MNCs. These services include: national and international private leased circuits. has strengthened our position in the global enterprise data market. we have selectively deployed wireless LMDS to access targeted buildings in accordance with our customers¶ requirements. We have over 1. we have augmented building connectivity program through deployment of WiMAX 802. We are also expanding our enterprise subscriber base rapidly in the SME segment. Singapore and Australia. France. Broadband We offer the most comprehensive portfolio of enterprise voice. We have a product range of more than 38 products to suit the needs of all customer segments.16d technology.rebranded as Reliance Global Enterprise Solutions. remote access VPN. We offer unique. We launched our enterprise broadband services in the first half of 2005. We continue to maintain leadership in other high growth segments of the market such as MPLS-VPN and Centrex solutions. and IT infrastructure needs across the country. MPLS-VPN. In the top 10 cities of India. UK.065. Our Metro Ethernet LAN technology gives us a significant edge in delivering high bandwidth data services. value-added products and services to large. more than any other service provider in India. We are leveraging our existing metro fibre optic networks to establish direct building connectivity on-net. Reliance Big TV uses state-of-the-art MPEG 4 technology to deliver over 200 broadcast channels and over 30 exclusive movie channels to its subscribers. Our primary building access technology is metro Ethernet technology with ring based fibber uplinks. Currently we are operating in 44 cities in India with close to 1. Our WiMAX business segment is currently focused on acquiring licenses in several emerging markets. Benelux. in 2008.48 million access lines. networking. audio and video conferencing. video. We will also deliver high definition content and Dolby digital voice quality to our . internet and IT infrastructure services. We have established an enterprise customer base that includes over 850 of the Top 1. voice VPN for corporates and managed internet data centre (³IDC´) services. Germany. data.400 enterprise customers globally in developed markets of the US. which offers performance and cost advantages versus other access technologies in areas with high service potential.243 buildings connected directly to our network serving close to 1.

.9 million subscribers. This is a world class product offering 200 hrs of recording. Reliance Big TV currently has 2. have been leveraged to expand our DTH presence.500 towns in the country.viewers on this platform to create a highly personalized video experience. about 11% of the DTH market in India within a short span of launch. The retail and distribution reach. Reliance Big TV is available at more than 100.000 outlets across 6. We launched India's first High definition cum Advanced Digital Video recorder (HD DVR). trick play functions & universal remote for operating three devices. as well as other elements of infrastructure established for our wireless network.

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2) SWOT ANALYSIS OF RCOM Strength y y y y Low Entry Cost Commission Structure Fast Activation Process Network Weakness y y y y Branding Image Distribution problem Limited product portfolio.Only Mobile Lack of Competitive Strength .

A product with many different features provides customers with opportunities to chat. price and place remain but three additional variables ± people. Horizontal Competitors` Vulnerabilities Threat y y y y y Political destabilization. physical evidence and process within the original-Ps framework (for example people can be considered part of the product offering) the extension allows a more thorough analysis of the marketing ingredients necessary for successful services marketing. The essential elements of product. The need for the extension is due to the high degree of direct contact between the CE providers and the customers. promotion. Reliance World provides on-the-move information services. send and receive pictures. New Entrants IT Development Market Demand Seasonality. and the simultaneity of the production and consumption. Vertical. While it is possible to discuss people. receive information about travel and sporting events. change ring tones.and soon view video clips and send video messages. Some of the products of Reliance Communication are: y y y y y y Prepaid Cell phone connection Prepaid recharge card Top . the highly visible nature of the service process. Product :. physical evidence and process ± are included to 7±Ps mix. play games. Weather Effects Services Marketing Mix [7 P¶s] The services marketing mix is an extension of the 4-Ps framework. obtain billing information .ups RIM Postpaid Calling Cards RIM PCO .y y Connectivity Data GPRS y Limited Budget Opportunity y y y y y Preference of GSM over CDMA New Specialist application Rural Telephony New Market.

promotions and point of sale posters to attract those inside the stores to buy. text messages. An important marketing task is to set standards to improve quality of services provided by employees and monitor . Radio. Reliance's stores. on billboards. picture messages and ring tones. Reliance¶s advertising campaign y y y y y y y y y y Promotional mix Advertisements ± TVC. Phone users can top up their phone on line. People: ± Because of the simultaneity of production and consumption in services the CE staff occupy the key position in influencing customer¶s perceptions of product quality. Print. Sales Promotions ± Special prepaid bundle for Denali. VAS is considered a cash cow for cellular companies.y y y y RIM Handy phone I-Phone 3G Magic box Handset World Calling Cards Price: . y y Monthly price plans are available as well as prepay options.Reliance Communication wants to make its services accessible to as many people as possible: from the young. Above the line  Advertising on TV. IPL season 2 had lot of scope to be taken advantage. to the more mature users. Promotion: . In fact the service quality is inseparable from the quality of service provider. through apprentices and high powered business executives. in magazines and in other media outlets reaches large audiences and spreads the brand image and the message very effectively.Reliance works with icons such as Hither Rosh and to communicate its brand values. its products and its staff all project the brand image. hoardings Value added services ads ± Visual ads supported by Print ads Events/programs ± IPL Matches and Big TV.. Below the line  Stores have special offers. It offers various pricing structures to suit different customer groups. This is known as above the line promotion. Reliance UK gives NECTAR reward points for every £1 spent on calls. Value Added Services of Reliance needed more promotion 'Go For It' says Reliance GSM with Hither Rosh an .was the perfect way to spread awareness.

Customers look for clues to the likely quality of a service also by inspecting the tangible evidence.their performance. Without training and control employees tend to be variable in their performance leading to variable service quality. y y y y It also sells through independent retailers e. or to take up new service products There is set up of a quick response facility to customer problems and complaints They employ new technology to provide better services at lower costs They use branding to clearly differentiate service offering from the competition in the minds of target customers. Process decisions radically affect how a service is delivered to customers. mechanism and flow of activities by which a service is acquired. People are on hand to ensure customers' needs are matched with the right product and to explain the different options available. Car phone Warehouse. Training is crucial so that employees understand the appropriate forms of behaviour and trainees adopt the best practises of the andragogy.g. Reliance actively develops good public relations by sending press releases to national newspapers and magazines to explain new products and ideas. Reliance recruits high quality staff treat them . Physical evidence: ± This is the environment in which the service is delivered and any tangible goods that facilitate the performance and communication of the service. well and communicate clearly to them: y y y y y Their attitudes and behaviour are the key to service quality and differentiations They attempt to market to existing customers to increase their use of the service. Customers are able to see and handle products they are considering buying. Process: ± This means procedures.

Reliance Infocomm is the second largest player and share holder in Communication sector. Reliance Info. The comparison shows how both of the companies have been Challenging each other to gain market shares. With a different technology cdma Reliance creates it own market. Since its launch Reliance info. Reliance has been giving tough competition to Bharti Airtel. However. Captured 22% market share in One month of its first launch of postpaid subscription in 2002.AD. The sub main purpose of this report is to compare the marketing Strategies adopted by Bharti Airtel and its rival Reliance Infocomm. has been adopting aggressive marketing Strategies. The comparison shows how reliance info. today deals in every business of communication sector. making and changing the strategies to capture the market shares .Comparison of marketing strategies between Bharti Airtel and RelianceCommunication. Bharti Airtel holds the lion share of market of communication sector. Why comparison with Reliance Infocomm? Bharti Airtel is the leader in telecommunication sector.

Youngsters in big cities. Poor and middle income groups. Businessmen Positioning Creating brands (Sharukh khan & Sachin Tendulker) Ads and promotions Marketing mix Price : low price strategy Place : maximum outlets and service centers Product : verities available for various groups Promotion: various schemes for pre-paid and post-paid .middle income groups People age group of 20 to 28 year Target marketing People living cities and towns.Brand positioning by Bharti Airtel Market segmentation Geographical segment (metropolitans & cities India) Demographic segment .

Strong logistics and supply chain Rim has a strong logistict and supply all over India. Free support and services In every district and big towns rim opens its service centers to provide better support and services.MAR KETING STRATEGIES OF RELIANCE INDIA MOBILE.(RIM) Rim target the rural India The main targeted customers of Rim are from rural India. Businessmen Positioning Creating brands . Brand positioning by Rim Market segmentation Geographical segment (rural India) Demographic segment . Youngsters in big cities.middle income groups Target marketing People living in small towns and villages. Targeting youngsters in metropolitans Rim attracts youngsters by offering colorful handset at very low prices. Poor and middle income groups. By offering cheap and light mobile sets Rim attracts most of the customers Of small villages and towns. The cost for Rs-700\set and onward. Offering cheap handsets Rim offers cheap and free connections to all costumers. In every small town the potential costumers can easily purchase the rim sets.

mobile services with CDMA & GSM technology fixed-line telephone services Universal Internetworking VoIP (Voice over Internet Protocol) Interactive Television Visual Communication Broadband Portal .Ads and promotions Marketing mix Price : low price strategy Place : maximum outlets and service centres Product : varities available for various groups Promotion:various schemes for pre-paid and post-paid Services provided by Bharti Airtel ‡ Mobile services with GSM technology ‡ Fixed-line connections ‡ National and international long distance services ‡ VSAT. Internet services and network solutions ‡ Broadband services Services provided by Reliance Infocomm.

‡ The company rate policy must be flexible enough to catch new customers because if company offers lower price to a new customer then he may continue buy the goods and can be a permanent customer for the company. as it has been recommended by exporters to make the deliveryon time. ‡ The company should keep an eye on the proper delivery of the goods to exporter on time. The company should take the opinion of exporters from time to time to know what problems they are facing from the company¶s side? And if any change they require in present supplying condition? . ‡ The company should offers such rate in the market so that it may able to catch a biger market share and it should be able to compete with the local traders and commission agents while having a brand name. only target the cash ‡ The company should makes its marketing strategy flexible enough in order to face competition.Telecommuting RECOMMENDATIONS I have made following recommendation to the company : ‡ The company should modify its credit policy as they paying customers who are not easy to trace.

As we know that now Airtel has already launched its product with logo ³¶ Aisi azaadi aur kahan´¶ has already became popular in market. Cash cards are the most popular type of mobile connections. For this Airtel has to work on its all marketing strategies. as they are consumer friendly and recharging the connection is not a problem. So we can say that in spite of so many competitor in the market Airtel is having a good position just because every time.C O N C L U S I O N After analyzing the findings of the research. it tries its best to understand the need of its important customers. The maximum no. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. Maximum no. of people who use the mobile is in the age group of 20 to 28. of people spends RS 500 on their connections. I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned.marketing.brand .promotion. From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti airtel has to more work in every field of communication business. It is the time not only to survive but to sustain in the market for a long time.

Very seriously and update its own strategies from time to time and when the need arises.co. With aggressive marketing strategies airtel has to target rural India as 70% of population of India live in these areas.google.D.com .in www.in www.rcom. Kothari Websites: www.india.airtel.etc. Airtel has to take Reliance info.R.co. BIBLIOGRAPHY Books : Principles of Marketing ±Philip Kotler & Kevin keller edi.image.com www. Sharma Research Methodology ± C. 12 Market Research ± D.

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