PROJECT REPORT

ON

RECRUITMENT & SELECTION IN BHARTI AIRTEL SERVICES LTD

 

 

SUBMITTED BY:

MR. NEERAJ KUMAR

REGISTRATION NO.510914656

SIKKIM MANIPAL UNIVERSITY

(DISTANCE EDUCATION)

CENTRE CODE: 02780

i

ACKNOWLEDGMENT

I have had considerable help and support in making this project report a reality.

First and foremost gratitude goes to Mr. Abhishk Khurana (Manager HR), who

provided me all the guidance and support in realizing the dissertation.

I must thank the employees of the Bharti Airtel Services Ltd.

I am grateful to all those who obliged me with their support and helped me in

converting my collection of data and information into a research study.

At the end I would like to thank God who was always there with me & will always be

supporting me in our work.

Mr. Neeraj Kumar

Roll No.510914656

ii

PREFACESuccessful human resource planning should identify organization's own human

resource needs.

Recruiting is discovering of potential candidates for actual anticipated organizational

vacancies. Or, from another perspective, it is a linking activity - bringing together

those with jobs to fill and those seeking jobs.

Recruiting is the discovering of potential candidates for actual or

anticipated organizational vacancies.

The ideal recruitment effort will attract a large number of qualified

applicants who will take the job if it is offered.

Factors Influencing Recruiting Efforts

An organization with one hundred thousand employees will find

itself recruiting potential applicants much more often than will an

organization with one hundred employees.

he personnel dept. people were considered responsible for carrying

out thankless errand-type jobs. Personnel as a job were considered

necessary but unimportant.

WHY WE CHOSE RECRUITMENT AND SELECTION FOR OUR STUDY -

JUSTIFICATION

It is important to study Recruitment and Selection because through

it we can identify our human resource needs.

The ideal recruitment effort will attract a large number of qualified

applicants who will take the job if it is offered.

There are internal and external sources as well as employee

referrals/recommendation.

In this project we are studying recruitment and selection process of.

To find out actual recruitment and selection process of Software

Company is our main objective of study.

We also have the picture of Selection cost of the company

RECRUITMENT AND SELECTION PROCESS

Recruiting is the discovering of potential applicants for actual or

anticipated organizational vacancies.

iii

The internal factors are:

(i) Recruiting policy of the organization;

(ii) Human resource planning strategy of the company;

(iii) Size of the organization and the number of employees employed;

(iv) Cost involved in recruiting employees, and finally;

(v) Growth and expansion plans of the organization.

RECRUITMENT POLICY

It may embrace several issues such as extent of promotion from

within, attitudes of enterprise in recruiting its old employees,

handicaps, minority groups, women employees, part-time

employees, friends and relatives of present employees. It may also

involve the organization system to be developed for implementing

recruitment program and procedures to the employed.”

A good recruitment policy must contain these elements:

(a) Organization’s objectives - both in the short-term and long-term -must be taken

into consideration as a basic parameter for recruitment decisions and needs of the

personnel -area-wise, job-family-wise.

(b) To find and employ the best qualified persons for: each job;

(c) To retain the best and most promising of those hired;

(d) To offer promising opportunities for life-time working careers; and

(e) To provide programmes and facilities for personal growth on the job.”

(f) To provide individual employees with the maximum of employment security,

avoiding, frequent lay-off or lost time;

(g) To provide each employee with an open road and encouragement in the

continuing development of his talents and skills;

(h) To assure each employee of the organization interest in his personal goals and

employment objectives;

(i) To assure employees of fairness in all employment relationships, including

promotions and transfers;

iv

TABLE OF CONTENTS

S.No TOPIC Page. No

1. CHAPTER-I INTRODUCTION

OVERVIEW OF INDUSTRY AS A WHOLE

PROFILE OF THE ORGANISATION

PROBLEMS OF THE ORGANISATION

COMPETITION INFORMATION

S.W.O.T ANALYSIS OF THE ORGANISATION

1-50

1

25

48

49

50

2. CHAPTER-II OBJECTIVES AND METHODOLOGY

OBJECTIVES

SCOPE OF THE STUDY

MANAGERIAL USEFULNESS OF THE STUDY

METHODOLOGY

LIMITATIONS

51-53

51

51

51

52

52

3. CHAPTER-III CONCEPTUAL DISCUSSION 54-70

4. CHAPTER-IV DATA ANALYSIS 71-87

5. CHAPTER-V CONCLUSIONS & SUGGESTIONS 88-90

6. APPENDICES 91-92

7. BIBLIOGRAPHY 93

v

Chapter-1.O

INTRODUCTION

OVERVIEW OF INDUSTRY AS A WHOLE

Telecommunication Market in India

Technological changes in the telecom and computers have radically changed the

business scenario. In turn, the new demands of business have spurred many telecom

based technological innovations. In order to exploit these innovations for competing

in global markets, business community the world over has been putting pressure on

governments to revise the policy, regulation and structure of the telecom sector.

Several countries across the world have responded by restructuring the state

controlled telecom service provider, increasing private participation, and deregulating

service provision. The emergent organizations have attempted to be more responsive

to the business needs and have evolved mechanisms to remain competitive even under

tremendous pressures.

Over the past several years, developing countries have also recognized the important

role a responsive, business oriented and technologically advanced telecom sector

plays in the growth of the economy. Many developing countries now accept the

limitations of a monolith state monopoly in responding to the twin challenges of

spurring internal growth and competing in an increasingly global economy.

Past experience of reform across many countries suggests that the fundamental

underlying issue that must be addressed in telecom reform is introduction of

competition for efficiency. Competition is considered to be an important factor than

ownership in introducing efficiency.

India's 21.59 million-line telephone network is one of the largest in the world and the

3rd largest among emerging economies (after China and Republic of Korea). Given

the low telephone penetration rate India offers vast scope for growth. It is therefore

not surprising that India has one of the fastest growing telecommunication systems in

the world with system size (total connections) growing at an average of more than 20

percent over the last 4 years.

The industry is considered as having the highest potential for investment in India. The

growth in demand for telecom services in India is not limited to basic telephone

services. India has witnessed rapid growth in cellular, radio paging, value-added

1

services, internet and global mobile communication by satellite (GMPCS) services.

This is expected to soar in the next few years.

Recognizing that the telecom sector is one of the prime movers of the economy, the

Government's regulatory and policy initiatives have also been directed towards

establishing a world class telecommunications infrastructure in India. The telecom

sector in India therefore offers an Airtell environment for investment.

The telecommunications initiative in the country is lead by Ministry of

Communications through the Department of Telecommunication & Department

Telecom Services and its undertakings for provision of basic telephone services,

national and international long distance communications, manufacture of complete

range of telecom equipment, research and development, and consultancy services.

The Telecom Commission performs the Executive and Policy making functions. The

Telecom Regulatory Authority of India performs the functions of an independent

regulatory body.

Indian Telecom Sector to Be Most Vibrant In 2010

In 2010 we believe that Indian Telecom industry expects to continue with its fast pace

of subscriber additions, at least 11 million per month, launch of 3G and Wi MAX

spectrum, while tariff would continue to slide during the year.

The industry having crossed the 500 million subscriber mark earlier in September

2009 itself, the next milestone would be 750 million. (Global research and analysis

firm Gartner, in a recent study, estimates Indian mobile users to touch 771 million by

2013).

However, this would be a long way off, even though subscriber addition is expected

to continue at fast pace in 2010 as companies expand networks to rural areas and new

firms commence operations.

3G

One of the main catalysts for growth would be the launch of 3G and WiMAX

spectrum, expected to take place by mid-January. 3G, or third generation telecom

services, would result in addition or more subscribers as they would bring in a host of

data-enabled services to the industry, and growth would come in from both voice and

data.

Wi MAX

Additionally, Department of Telecommunications (DoT) had announced the

simultaneous auction of WiMax spectrum that would result in adding of additional

2

data-enabled customers on telecom networks. A host of telecom operators are

expected to join the bandwagon for WiMax spectrum.

Tariffs

Cheap call tariffs and mobile handsets were other factors that drove demand in 2009,

and telecom companies are expected to continue price was both in call rates and

instruments in 2010. This, according to industry analysts, will result in telecom

sector’s exponential growth.

The industry also expects launching of innovative and customer friendly schemes like

the one second billing in 2010. These schemes would continue to help in improving

tele-density and penetration of telecom services in rural and semi-urban areas in the

country.

Infrastructure operators

The year 2010 would be that of the infrastructure players. Apart from an expected

consolidation in the sector, the infrastructure majors will increase the pace of tower

rollout across all the 22 circles in the country.

Bandwidth

An expected increase in bandwidth landing in the country, with telecom companies

are laying more submarine cables, would also benefit the industry. This would be

beneficial to bandwidth-intensive sectors like BPO, IT and banking.

The industry expects telecom companies to launch terrestrial cables with 50 GB

capacities each, to be hiked depending on demand. This coupled with a planned

increase by operators this year and next year, would also result in an increase in

capacity landing at Indian shores.

Group Overview

Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer

of bicycle parts to one of the largest and most respected business groups in India.

With its entrepreneurial spirit and passion to undertake business projects that are

transformational in nature, Bharti has created world-class businesses in telecom,

financial services, retail, and foods.

Bharti started its telecom services business by launching mobile services in Delhi

(India) in 1995. Since then there has been no looking back and Bharti Airtel, the

group's' flagship company, has emerged as one of the top telecom companies in the

world and is amongst the top five wireless operators in the world.

3

Through its global telecom operations Bharti group has presence in 21 countries

across Asia, Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey,

Seychelles, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo,

Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania,

Uganda, and Zambia.

Over the past few years, the group has diversified into emerging business areas in the

fast expanding Indian economy. With a vision to build India's finest conglomerate by

2020 the group has forayed into the retail sector by opening retail stores in multiple

formats - small and medium - as well establishing large scale cash & carry stores to

serve institutional customers and other retailers. The group offers a complete portfolio

of financial services - life insurance, general insurance and asset management - to

customers across India. Bharti also serves customers through its fresh and processed

foods business. The group has growing interests in other areas such as telecom

software, real estate, training and capacity building, and distribution of telecom/IT

products.

What sets Bharti apart from the rest is its ability to forge strong partnerships. Over the

years some of biggest names in international business have partnered Bharti.

Currently, Singtel, IBM, Ericsson, Nokia Siemens and Alcatel-Lucent are key

partners in telecom. Walmart is Bharti's partner for its cash & carry venture. Axa

Group is the partner for the financial services business and Del Monte Pacific for the

processed foods division.

Bharti strongly believes in giving back to the society and through its philanthropic

arm the Bharti Foundation it is reaching out to over 30,000 underprivileged children

and youth in India.

Mobile Strategy

 Capture maximum telecommunications revenue potential with minimum

geographical coverage to maximise its revenues and margins.

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

to offer superior services.

Use the experience it has gained from operating its existing mobile networks

to develop and operate other mobile networks in India and to share the

expertise across all of its existing and new circles.

4

Attract and retain high revenue generating customers by providing competitive

tariffs, offering high quality customer support, proactive retention programs

and roaming packages across all of its mobile circles. 

Provide affordable tariff plans to suit each segment of the market with a view

to expand the reach, thereby increasing the mobile customer base rapidly.

The Indian telecommunications Network with 250m telephone connections is the fifth

largest in the world and is the second largest among the emerging economies of Asia.

Today it is the fastest growing market in the world and represents unique

opportunities for UK companies in the stagnant global scenario. Accordingly, India

requires incremental investments of USD 20-25 bln for the next five years.

Private operators have made mobile telephony the fastest growing (over 164% p.a.) in

India. With more than 33 million users (both CDMA and GSM), wireless is the

principal growth engine of the Indian telecom industry. Given the current growth

trends, cellular connections in India will surpass fixed line by late 2004/early 2005.

Intense competition between the four main private groups - Bharti, Vodafone, Tata

and Reliance and with the State sector incumbents-BSNL and MTNL has brought

about a significant drop in tariffs. There has been almost 74% in cell phone charges,

70% in ILD calls and 25% drop in NLD charges, resulting in a boom time for the

consumers.

The Government has played a key enabling role by deregulating and liberalizing the

industry, ushering in competition and paving the way for growth. While there were

regulatory irregularities earlier, resulting in litigation, these have all been addressed

now. Customs duties on hardware and mobile handsets have been reduced from 14

percent to 5 percent.

The Indian government has merged the IT and Telecom Ministries to speed up

reforms and decision on the Communication Convergence Bill to enable the common

regulation of the Internet, broadcasting and telecoms will be taken after the new

Government assumes responsibilities in may this year. An independent regulatory

body (TRAI) and dispute settlement body (TDSAT) is fully functional.

INDIAN CELLULAR MARKET

The Bharti Group, which operates in 23 circles, continues to be the country's largest

cellular operator, with 50 lakh subscribers. BSNL, which operates in 22 circles, has a

subscriber base of 37 lakh subscribers. Thus BSNL stands second largest cellular

5

operator in terms of subscriber base at the end of the fiscal ending March 31, 2007,

displacing Vodafone from the second position. Vodafone, which operates in only

eighteen circles, is the third largest operator with a subscriber base of 32 lakh. Unlike

fellow public sector undertaking, MTNL, which operates in Mumbai and Delhi,

BSNL has been a very aggressive player in the market. "Cellular operators who

expected BSNL to go the MTNL way, were taken by surprise and did not take

effective steps to counter it, till it was too late in the day," said a telecom analyst.

The cellular subscriber club expanded by 21.31 lakh last month. Airtel, which

operates in Seven circles, is the fourth largest operator with a

subscriber base of 17.80 lakh, higher than BPL's 11.31 lakh subscribers across four

circles. The subscriber numbers per operator drop sharply with the sixth largest

operator, Spice Communications, having a subscriber base of 9.40 lakh, followed by

Reliance Telecom's 8.9 lakh subscribers. MTNL is the ninth largest operator, with a

base of 8.32 lakh subscribers.

GSM MARKET IN INDIA

Regional Interest Groups - GSM India

With a population of around 1.1 billion growing at roughly 1.7 per cent a year, India

is potentially one of the most exciting GSM markets in the world. After two rather

difficult years, the past 12 months have seen the region's promise beginning to come

to fruition. Much of this success can be attributed to the stabilisation of the licensing

and regulatory environment.

India's telecommunications have undergone a steady liberalisation since 1994 when

the Indian government first sought private investment in the sector. More significant

liberalisation followed in 1996 with the licensing of new local fixed line and mobile

service providers. However, it has been the government's New Telecom Policy (1999)

that has had the most radical impact on the development of GSM services. 'The

policy's mission statement is 'affordable communications for all', There is a genuine

commitment to creating a modern and efficient communications infrastructure that

takes account of the convergence of telecom, IT and media. In addition, the policy

places significant emphasis on greater competition for both fixed and mobile

services.'

Competition in the mobile sector has already had a visible impact on prices with calls

currently costing less than 9 cents per minute. This means that service costs have

fallen by 60 per cent since the first GSM networks became live in 1995. It also helps

6

explain why a recent Telecom Asia survey revealed that more than 70 per cent of

Indian mobile subscribers felt that prices were now at a reasonable level.

One of the challenges facing GSM operators in India is the diversity of the coverage

regions -from remote rural regions to some of the most densely populated

metropolitan areas in the world. India has more than 40 networks, which cover the

seven largest cities, over 7000 towns and several Lacs villages. Such depth of

coverage has required enormous investment from India's operators. It is estimated that

more than Rs200 billion had been invested in India's GSM industry by mid-2000, a

figure that is set to be supplemented by a further Rs. 300 billion over the next five

years.

The good news is that subscriber growth is beginning to look healthy. With India's

low PC penetration and high average Internet usage -at 14-20 hours a month per user

it is comparable to the US -the market for mobile data and m-commerce looks

extremely promising. WAP services have already been launched in the subcontinent

and the first GPRS networks are in the process of being rolled out. In the year ahead,

GSM India will work with its members to realize the potential of early packet services

in anticipation of the award of 3GSM licenses.

INDIA FASTEST GROWING GSM MART

India is expected to have 145 million GSM (global system for mobile

communications) customers by 2009-10 compared to 26 million subscribers as on

March 2005, according to the Global Mobile Suppliers Association. "For GSM, India

is a success story. It is one of the fastest growing markets with its subscriber base

doubling in 2005. At this pace, the target of 150 million subscribers by 2007-2008 is

definitely achievable," Alan Hadden, president of GSA, said at a news conference in

New Delhi. Globally, the GSM market reached 1 billion users in February 2005, he

said, adding GSM accounted for 80 per cent of the new subscriber growth in

2005."Almost every Latin American operator has chosen GSM. In North America

GSM growth is bigger than CDMA (code division multiple access)," he said.

Commenting on the raging debate over GSM versus CDMA in mobile services arena,

Hadden said: "GSM is the world's most successful mobile standard with over 1 billion

users, and is an open mobile standard. It also supports automatic international

roaming, which is a major contributor to business plans."

7

DOES GSM HAVE THE EDGE?

GSM operators are not the only ones who are worried about the rapid strides made by

CDMA mobile players Reliance Infocomm and Tata Indicom in the Indian cellular

market?

The GSM suppliers – both handset and equipment - who incidentally also have their

other foot firmly placed in the CDMA pie, are beginning to lose some sleep over

what was earlier termed as `niche’ and `minuscule’ data carriage market by the

operators

Apart from the strong success of the two CDMA operators whose networks are based

on code division multiple access (CDMA), the miserable showing of the four global

standard for mobile (GSM) based networks that launched general packet radio service

(GPRS) service for data connectivity in last three years, has the vendors worried.

Global mobile Suppliers Association (GSA) now believes that even though India will

primarily remain a voice traffic-led market in next two-three years, the data traffic

component will grow by 25-30 per cent, an optimism that it’s trying to make GSM

operators feel as well.

THE CDMA CHALLENGE

CDMA players had launched their services with CDMA 2000 1X-based networks,

which can give hi-speed, always-on connectivity to the Internet, and other data

services. GSM operators, on the other hand, have had to migrate from the frustrating

experience of WAP (wireless application protocol) to GPRS, which has not

significantly improved the subscriber’s experience of surfing the Net on/from mobile.

The top brass of GSA, an organisation comprising Nokia, Siemens, Ericsson, Alcatel

and Lucent Technologies - met on Tuesday in the capital to persuade the operators to

adopt EDGE (Enhanced Data rates for GSM Evolution) and leave GPRS behind as a

dream gone sour.

Only Airtel, Vodafone, BPL Mobile and Airtel Cellular had launched GPRS, but the

data transfer speeds of GPRS have been abysmal. The field trials gave a speed of

around 54 kbps, but the actual speeds have not exceeded 14-18 kbps, a major reason

why GPRS growth has been so slow. As against the total GSM cellular base of 5.61

crore, the country has between 2,80,000 lakh GPRS users only. In comparison, the

two CDMA operators have about 120 lakh connections. All these sets are data

8

compliant. Though no figures are available as to how many use these for data

services, the figure is believed to be respectable as a percentage ratio for CDMA.

BHARTI IS ALMOST THERE

But first, the EDGE! Bharti Cellular is close to commercially launching its EDGE

service in Delhi and Mumbai by end May or early June, sources said. The company

was the first to conduct field trials in November with its equipment supplier Ericsson.

Airtel too held EDGE field trials in February this year with its vendor Nokia.

Vodafone and BPL are yet to hold the trials. The two companies would eventually

migrate to EDGE, but perhaps after seeing the response to Bharti’s service.

EDGE holds the promise of delivering data speeds of around 170-180 kbps (as

against the theoretical speed of around 380 kbps) which, if achieved, promises the

launch of many data applications. The scalable cost of migrating from GPRS to

EDGE is not too high and mainly comprises software upgrades in case of a modern

network such as Bharti and Hutch, claimed chairman of GSA India chapter Rakesh

Malik.  

WILL GSM MAINTAIN ITS HEADSTART?

At the GSM Evolution Forum held in New Delhi, GSA president Alan Hadden

predicted that GSM growth will far outstrip CDMA as was happening globally. He

felt India could have as many as 200 million GSM subscribers by 2007-2008, up from

nine million in December 2004. According to GSA, there are over 1.1 billion GSM

subscribers worldwide as against 250 million CDMA customers. The revenue of top

25 global operators from data averages 18 per cent and 22 of these operators run GSM

networks. Overall, there are 76 operators in 50 countries that have committed to

deploy EDGE.

Almost every country has a GSM-based network and even those US operators, which

operated on now-defunct TDMA technology, were migrating gradually to GSM, not

CDMA, pointed out Hadden at the GSM Evolution Forum. The Forum is a global

GSA program to assist the operators for evolution to third generation (3G)

technologies. “People are using their phones for much more than voice. Fifteen

networks have commercially launched EDGE as it can run 3G like services in the

existing spectrum for the operators without needing a 3G license. Even the migration

to a full-fledged 3G level of Wideband CDMA (WCDMA) will be smooth with

EDGE,” said Hadden.

9

 “Besides, the automatic roaming provided by GSM networks in almost 200 countries

is a power that CDMA doesn’t give you. We know for sure that almost 20-25 per cent

of the revenue for some GSM operators comes from roaming customers,” he added.

But CDMA is no pushover with Korea and Philippines as the shining jewels in its

crown. The first CDMA 2000 1X was commercially deployed in October 2000.

 Already, 81 operators have launched 77 CDMA 2000 1X networks whereas nine

have launched services based on 1xEV-DO platform across Asia, the Americas and

Europe. At least, 16 new 1X and six 1xEV-DO networks are scheduled to be deployed

in 2004, according to CDMA Development Group. EV-DO and EV-DV are the next

level of evolution on the CDMA 2000 1X platform, capable of delivering services

comparable to 3G WCDMA.

END SUM GAME

When the networks deploy EDGE, subscribers can expect the delivery of advanced

mobile services such as easy downloading of video and music clips, full multimedia

messaging, besides high-speed Internet and e-mail access, provided their handset

supports all this.

But the real cruncher will be the migration at a later stage to 3G technologies such as

WCDMA, EV-DO or EV-DA as and when the government decides what to do with

the 3G licences. WCDMA for example promises delivery of a phenomenal 2

megabytes per second (mbps), equivalent to what a leased line in many middle level

corporate gives.

More importantly, WCDMA will spawn a whole new range of full motion audio-

video applications, including video telephony. GSM lobby may continue to remain

gung ho over the future of their technologies over that boosted by the American firms

Qualcomm

and Motorola, but Indian market could well throw an interesting scenario that industry

experts will do well to watch. In the coming months, Reliance plans to offer its

CDMA subscribers much more than what GSM players intend to deliver through their

EDGE for their subscribers.

MOBILE HISTORY IN INDIA

In the early 1990s, the Indian government adopted a new economic policy aimed at

improving India's competitiveness in the global markets and the rapid growth of

exports. Key to achieving these goals was a world-class telecom infrastructure.

10

In India, the telecom service areas are divided into four metros (New Delhi, Mumbai,

Chennai and Kolkata) and 20 circles, which roughly correspond to the states in India.

The circles are further classified under "A," "B" and "C," with the "A" circle being the

most attractive and "C" being the least attractive. The regulatory body at that time —

the Department of Telecommunications (DOT) — allocated two cellular licenses for

each metro and circle. Thirty-four licenses for GSM900 cellular services were

auctioned to 22 firms in 1995. The first cellular service was provided by, Modi Telstra

in Kolkata in August 1995. For the auction, it was stipulated that no firm can win in

more than one metro, three circles or both. The circles of Jammu and Kashmir and

Andaman and Nicobar had no bidders, while West Bengal and Assam had only one

bidder each.

In 1996, the Telecom Regulatory Authority of India (TRAI) bill was introduced in the

Lok Sabha, and the president officially announced the TRAI ordinance on 25 January

1997. The government decided to set up TRAI to separate regulatory functions from

policy formulation, licensing and telecom operations. Prior to the creation of TRAI,

these functions were the sole responsibility of the DOT.

High license fees and excessive bids for the cellular licenses put tremendous financial

burden on the operators, diverting funds away from network development and

enhancements. As a result, by 1999 many operators failed to pay their license fees and

were in danger of having their licenses withdrawn. In March 1999, a new telecom

policy was put in place (New Telecom Policy [NTP] 1999). Under this new policy,

the old fixed-licensing regime was to be replaced by a revenue-sharing scheme

whereby between 8-12 percent of cellular revenue were to be paid to the government.

Over 3.6 cr people are using mobile phones in India today. More than 150% growth

over last fiscal, being attributed to increased competition and sharp fall in tariffs

during the past 12-15 months. Of the total mobile subscriber base, GSM cellular

industry - led by Bharti, BSNL, unTra lai em niem vui khi duoc gan ben em, tra lai

em loi yeu thuong em dem, tra lai em niem tin thang nam qua ta dap xay. Gio day chi

la nhung ky niem buon... http://nhatquanglan6.t35.com and AIRTEL - showed

impressive growth of 106%. There

Tra lai em niem vui khi duoc gan ben em, tra lai em loi yeu thuong em dem, tra lai em

niem tin thang nam qua ta dap xay. Gio day chi la nhung ky niem buon...

http://nhatquanglan6.t35.com CDMA was 71.5 lakh at the end of March, 2007 with

Reliance accounting for over 6.4 million subscribers, followed by Tata Teleservices

11

having 6.2 lakh customers. 15 lakh subscribers joined the GSM base last month and

over 4 lakh opted for CDMA mobile phones.

Of the total mobile subscriber base, GSM cellular industry - led by Bharti, BSNL and

Vodafone - showed impressive growth of 106 per cent. There were 26.1 million GSM

subscribers at the end of March 2006, up from 13.4 million last March.CDMA was

7.1 million at the end of March, 2007 with Reliance accounting for over 6.4 million

subscribers, followed by Tata Teleservices (Indicom), way behind at 620,000

customers.

Now with the launch of the Chinese mobile brand Kejian has been launched in India.

The company plans to spend close to Rs.40-crore in marketing promotions this year to

establish the brand's identity. Kejian has tied-up with the newly floated Trust Telecom

Technologies (part of Rs.600-crore Rajgarhia Group) for sales, marketing and service

of the mobile handsets in India and SAARC region. To start with, the company has

launched four GSM models in the price range of Rs.4, 905 to Rs.16, 650 offering

latest features like high resolution colour screens, video cameras and sleek looks.

Of the total mobile subscriber base, GSM cellular industry - led by Bharti, BSNL and

Airtel - showed impressive growth of 106 per cent. There were 26.1 million GSM

subscribers at the end of March 2007, up from 13.4 million last March.CDMA was

7.1 million at the end of March, 2007 with Reliance accounting for over 6.4 million

subscribers, followed by Tata Teleservices (Indicom), way behind at 620,000

customers.

So far the youth and upper middle class has led the growth and bought into mobile

lifestyle. But the ever cheaper pricing plans are coming to make mobile a commodity

like shampoos and soap. Can you hear me now, no you don’t because soon there will

be a billion Indians talking.

INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS AND

THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing in 1994-96 was

beset by several problems for 3 - 4 years till the New Telecom Policy of 1999 was

announced. Some of these roadblocks / current position is tabulated below:

AN OVERVIEW OF INDIAN TELECOM INDUSTRY

The Indian telecom industry is the eighth largest in the world and the second largest

among emerging economies. The industry has witnessed an explosive growth in

12

recent years. Teledensity has more than doubled from 2.3 percent in 1999 to 4.8

percent in 2008. The Indian telecom market size of over US$8 bn is expected to

increase three fold by 2020.

Telecom Industry in India

At A Glance

In so-called “developed” countries, growth in telecoms is in value added services, but

in “developing” countries like India, the priority is on providing basic telephony and

using telecom to improve people’s lives.

The Indian Economy is on a path of resurgence. The gradual opening of the economy

has ensured steady growth even at the time when other countries were in the grip of a

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

investment and industrial delicensing are responsible for this growth

Such structural changes have had a positive impact on the telecom sector and a

compounded annual growth rate of 13.43% is estimated for 2007-2008(Frost &

Sullivan). The future of the industry lies in mainline and cellular segments and

constant technological innovations such as Internet Protocol (IP)- based services.

Revenues from voice and data services are expected to increase sharply due to surge

in usage. Listed below is the present scenario and progress of the Telecom sector in

India:

India has a mere 1.2 telephones for every 100 of its people. This is way below

international standards and is not becoming of a country aspiring to be a major

player in the global economy of the 21st century. This means that

opportunities for investment in this sector are immense.

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

direct exchange lines requires an investment of US$ 22 billion.

The cumulative investment up to the year 2006 to meet demand for cellular

mobile and radio paging services is estimated at US$ 8 billion and US$ 1

billion respectively.

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

3.5 billion.

VSAT services have not taken off in India. Demand for electronic mail,

videoconferencing is not strong enough to justify investment. Besides, licence

13

fees to be paid to the Department of Telecommunications (DoT) are too high

given the size of demand.

The telecom sector has witnessed the presence of many leading foreign

companies including US companies: AT&T, Motorola, Nynex, US West,

Hughes, Harris, Qualcomm, Sprint, Telstra, NTT, Singapore Telecom,

Philippine Telecom, Bezeq, Siemens, Ericsson, Nokia, Fujitsu, Alcatel, and

Bell Canada among others.

The pre paid market is thoroughly voice driven hence companies like Pre-Paid India

(with brand Oxigen) and E-charge Tech are trying to en-cash this phenomenon by

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

One must not forget electronic "top-ups" through bank ATMs. These facilities were

introduced for aiding voice telephony. A similar trend is prevalent worldwide, too

A survey of cellular users conducted in Delhi sometime back, reveals that talking

consumes over 85 per cent of the pre-paid card value and over 70 per cent usage value

of post paid users. As per TRAI (Telecom Regulatory Authority of India) data, 80 per

cent of new mobile subscriber additions every month is still in the pre-paid category

only. In its performance Indicators of Telecom Services released last June the average

monthly minutes of usage (MoU) for cellular services have been shown as steadily

growing from 210-222 minutes in FE 2006-2007 to 301-322 in FE 2007-2008.

Though SMS applications are quite popular in the youth segment, but ask any

collegian whether she would fancy a device with text messaging data capability alone

she would snap back "SMS / MMS is cool but voice is hot."

Though SMS applications are quite popular in the youth segment, but ask any

collegian whether she would fancy a device with text messaging data capability alone

she would snap back "SMS / MMS is cool but voice is hot."

GSM PLAYERS CLOCK HIGHER QUARTER ONE INCOME

Private GSM mobile operators recorded 5.7% rise in the first quarter of the current

fiscal. Because during March gross revenue was 3557 crore which has increased

by 3760 crore for the quarter ending June 2008. Previous quarter witnessed a 43%

rise in the revenue if we compare this figure with the previous quarter of April 05.

However the average revenue per user (ARPU) has declined by 2.89%about Rs 11

per subscriber from Rs 401for the quarter ending march 2008to Rs 390 for the

quarter ending June 2008.

14

Source Business line 10 Aug 2010

Private basic phone firms call for number probability

Private basic operators have asked the telecom regulatory authority of India

(Trai) to implement number portability in fixed line telephony. Under number

portability a subscriber can retain his /her number even while switching to a

new service provider. Trai is currently working on bringing number portability

in mobile telephone services.

Source Business line 21 Aug 2010

Airtel buys Max’s 3.16% in Vodafone for Rs 657

crore

On 18th October Vodafone Teleholdings signed an agreement with Max Tele-

ventures to acquire the latter’s 3.16 % stake in Vodafone son Vodafone for Rs 657

crore. The all cash deal is priced at Rs 607 per share. Remarkably max has made

3.16% stake then when it sold a 41% stake over seven years ago. In April 1998

max India had sold its 41 % equity in the Mumbai circle to Vodafone son for Rs

561 crore

What is the state of the telecom industry in India?

According to an Ernst & Young study, the telecom subscriber base is expected to

reach 203 million by 2009 and revenues are expected to touch $23-25 billion by

2009. The mobile phone sector in 2009-10 registered three times higher growth in

2009-10 than what was reported in 2008-09. The industry added 21 million

mobile connections 2009-10. However, the growth in fixed lines has been

negligible, merely 3%, from 41.48 million connections in March 2009 to 42.58

connections in March 2010

74% telecom FDI hike is transparent but

conditions apply…

Communications minister Dayanidhi Maran flags off a new move that will see Indian

CEOs and directors ruling over foreign investors in the telecom sector. On February 4

the cabinet eased the ceiling on foreign direct investment (FDI) in the telecom sector

to 74 per cent from 49 per cent. FDI will be allowed in basic, cellular, unified access

services, STD, ISD, VSAT, public mobile radio trunked services, global mobile

personal communication services and other value-added services. "We need at least

$20 billion (Rs86, 740 crore) of investment and part of this has to come as foreign

15

direct investment," said Maran. The increase in the FDI limit is expected to usher in a

20 per cent jump in foreign investments in the telecom sector within the next two

years from the current Rs10, 000 crore

Source http://infotech.indiatimes.com/articleshow/msid-1014557, curpg-4.cms

How will this FDI cap hike affect the

Market?

According to an Economic Times report, the FDI hike could also impact the

sponsored ADR issue planned by Bharti to help Warburg Pincus, one of the early

investors, to exit the company. Bharti had earlier mentioned that they were looking at

an overseas listing. It is possible now that Bharti might opt for a fresh ADR issue

where existing investors could offload part oftheirstakes.

Cell phone companies such as Vodafoneison Vodafone and Airtel Cellular have been

waiting in the wings, preparing to go public for sometime now.

Bharti And IBM To Offer Managed Services

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

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

programmed that the companies signed a year back

The two companies will jointly develop and market telecom and IT solution to the

enterprise market in India. The initial offering portfolio will include managed hosting

services and business resiliency and continuity services

New telecom policy on the anvil Our

Corporate Bureau

18 August 2010

Chennai: In order to sort out the various issues bogging down the country's telecom

sector, the government is drafting a new telecom policy. Announcing this in Chennai,

the union minister for communications, information and technology, said, "The policy

will be announced soon. We would like to remove all the artificial barriers that hinder

the sector." According to him the new policy will also address whether net telephony

would be allowed within India.

Trai Directs Telecom Firms To Make Tariffs

Transparent

Our Corporate Bureau

16

The Telecom Regulatory Authority of India (TRAI) has asked operators to provide

customers with details of their tariff plans within a week of activating the service. The

regulator has also directed the operators to intimate any changes in tariff of the chosen

package in writing to subscribers.

1) Comprises the circles of Delhi and Himachal Pradesh.

2) Comprises the circles of Delhi, Himachal Pradesh, Karnataka and Andhra Pradesh.

3) Comprises the circles of Delhi, Himachal Pradesh, Karnataka, Andhra Pradesh and

Chennai.

4) Comprises the sixteen operational circles of Bharti Tele-Ventures.

5) Based on data released by the COAI on the total number of persons subscribing to

mobile services in our licensed areas. 

Mobile Strategy

 Capture maximum telecommunications revenue potential with minimum

geographical coverage to maximise its revenues and margins.

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

to offer superior services.

Use the experience it has gained from operating its existing mobile networks

to develop and operate other mobile networks in India and to share the

expertise across all of its existing and new circles.

Attract and retain high revenue generating customers by providing competitive

tariffs, offering high quality customer support, proactive retention programs

and roaming packages across all of its mobile circles. 

Provide affordable tariff plans to suit each segment of the market with a view

to expand the reach, thereby increasing the mobile customer base rapidly.

The Current Cell-Market Scenario

Current Position

High license fees

Migration to revenue sharing mode in 2008 mitigates high initial fund

requirements for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters Businesses that

have since been adequately funded growing at over 60% per annum, while businesses

with weak promoters continuing to languish - spate of acquisitions / mergers, with 4/5

major groups emerging in the last one/two years.

17

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its role being

accepted by all operators; Deptt of Telecommunications (DOT) restructured, with

operations and policy making roles vested in different bodies.

Issues relating to unfavorable interconnect terms for private operators, pass through

income, intra circle long distance, spectrum availability and allocation and the like

remained unresolved for long periods.

Interconnect terms since rationalized, risks on pass through income to DOT / MTNL

(Mahanagar Telecom Nigam Ltd.) resolved to the satisfaction of all parties with

changes in methodology / revenue sharing, intra circle long distance allowed,

spectrum availability cleared with vacation of frequencies for usage by GSM

operators.

Services Offered

Telephone Services, NSD/ISD Services, Computerized Trunk Services, Pay Phones,

National & International Leased Lines Circuits, Telex, Telegraph Services (Manual &

Automatic), X-25 based Packet Switched Data Network (INET), Gateway Packet

Switched Data Services (GPSS), Gateway Electronic Data Interchange Service

(GEDIS), Gateway E-Mail and Store & Forward FAX Service (GEMS-400), Concert

Packet Service (CPS), Satellite-based Remote Area Business Message Network,

Electronic Mail, Voice Mail, Audio-Text, Radio Paging, Cellular Mobile Telephone,

Public Mobile Radio Trunked Service, Video-Tex, Video Conferencing, V-SAT,

Internet, ISDN, INMARSAT Mobile Service , INMARSAT Data Service, Home

Country Direct Service, Intelligent Network (IN) Services

History of Indian Telecom Sector

Telecom sector was a state monopoly until the mid eighties when the liberalization

process started. The department of telecommunication (DoT), under the Ministry of

Communication administered telecom services. The planning commission, an apex

level body, allocated funds for telecom development from government resources. The

telecom sector, therefore, competed with other developmental priorities of the

government for a share in resource allocation. Planning, engineering, installation,

maintenance, management, and operations of telecom services for the whole of India

was managed by the DoT, which also lay down and monitored adherence to technical

standards and managed frequency usage.

18

The DoT was a monolithic entity, with a huge work force managing the telecom

operations of the entire country. The bureaucratic approach and the slow acceptance

and induction of new technologies with very little customer orientation were

perceived as barriers to growth. Consequently, two new public sector corporations-

Mahanagar Telephone Nigam Limited (MTNL) and Videsh Sanchar Nigam Limited

(VSNL)—were set up under the DoT. MTNL was carved out of the DoT and took

over the operation, maintenance, and development of telecom services in Mumbai and

New Delhi. VSNL was set up to plan, operate, develop, and accelerate international

telecom services in India. The government created the corporate organizations in

order to allow decision making autonomy and flexibility and facilitate public

borrowings which would not have been possible under a government framework.

However, policy formulation, regulation and several key decision areas remained with

the DoT. A new organization, the Telecom Commission, was created with a wide

range of executive, administrative and financial powers to formulate and regulate

policy and prepare the budget for the DoT. The Telecom Commission had four full

time members managing technology, production, services, and finance and four part

time members representing the planning commission, department of finance,

department of industry, and department of electronics.

The key driver for change in the sector was the National Telecom Policy announced

in May 1994. It boldly specified its major objectives as telephone on demand,

achievement of universal service obligation and ensuring world class service to

subscribers. This policy also paved the way for private sector participation in telecom

services. Objectives of NTP (1994) were

Telecom for all and telephone in reach of all.

Provision for certain basic telecom service at affordable and reasonable price.

World class quality of telecom service.

India to emerge as a major manufacturing base and exporter of telecom

equipment.

Telecom services were categorized into domestic basic (which included basic

telephony, telex and fax), domestic value-added services (VAS) which covered all

other services such as paging, cellular, data services, VSAT and international basic

and VAS. Telecom service liberalization started in 1984, with private sector being

allowed to manufacture customer premise equipment. In 1992, service provision was

opened for private sector. At this stage government also unbundled basic and VAS.

19

Private operators were allowed to participate in provision of VAS such as cellular and

paging services. Subsequently, basic services in the local loop were opened for private

operators. Basic service provision had been planned as a duopoly between the DoT

and a selected service provider. Several service providers, one for each of the twenty

“circles” into which the entire country had been divided would compete with the DoT

for basic services. The bidders were evaluated both on financial and technical

parameters. Permissible network technologies were specified and basic service

providers were required to base their services on fiber-optic cable and wireless in the

local loop as far as possible. Licenses had been granted for an initial period of 15

years and could be extended by another 10 years. Private Service operators were

allowed to provide intra-circle long distance service which contributed to almost 60%

of the total calls.

The government had mandated that all private basic service operators had to provide

10% of all new lines in rural areas. A weight age of 15% for service provision in rural

areas was given at the time of bid selection. A penalty on a per day basis for each

telephone not installed sought to prevent companies from delaying meeting rural

targets. At the same time, the government encouraged new emerging technologies

including local loop wireless, cellular telephony and satellite based communication

systems that could help develops rural telecom in a cost effective manner.

Inter-circle communication remained under the DoT. VSNL maintained an exclusive

license for international services for at least until 2007 advanced communication

services like cellular, paging, email, fax, data transmission over telephone and leased

circuits were increasingly being made available by private operators. However,

Electronic Data Interchange standards and its adoption had not made much progress

largely due to the problems in long distance communication, lack of coordination for

adopting standards, and unclear policies in the various departments involved in

national implementation.

Highlights

The telecom muddle is growing murkier and murkier by the day. In addition,

so are the claims of the great Indian telecom revolution.

5th largest network in the world, second largest among emerging economies

(after China).

20

Annual growth rate of 22% in basic telephone service and over 100% for

cellular and Internet services.

Private participation allowed in all types of telecom and IT enabled services.

License granted on non-exclusive basis for basic, national long distance,

international long distance, Internet, V-Sat services, etc.

Foreign equity participation permitted in the telecom service sector.

Huge market for all types of telecom equipments for both wire line and

wireless, Internet, radio trunking, call centers, etc

Foreign direct investment of up to 100% permitted for the manufacturing of

telecom equipment.

Investments potential across a wide spectrum of telecom service

Telecom statistics

November’08 December’09 January’10

Total subscribers 119.9mn 123.85mn 129.82mn

Tele-density 11.00 11.43 12.00

Fixed line 48.47mn 48.93mn 49.21mn

Additions during the month 0.28mn 0.46mn 0.28mn

Mobile 71.46mn 75.92mn 80.61mn

Total additions during the month 3.51mn 4.46mn 4.69mn

GSM additions 2.32mn 3.19mn 3.52mn

CDMA additions 1.18mn 1.17mn 1.17mn

Strong Growth Continues

Growth in telephony continued in May as the subscriber base reached the 102.5mn

mark. Teledensity in May 2010 improved to 9.46% from 9.26% in April 2009 During

May 2010 31mn subscribers were added as against 2.03mn subscribers in April 2007n

the fixed segment, a total of 0.61mn subscribers were added during May 2009 taking

the subscriber base of fixed line services to 47.11mn. In the mobile segment, total

additions during the month summed up to 1.7mn out of which 1.225mn subscribers

were added in the GSM segment and the remaining 0.475mn were added in the

CDMA segment.

Mobile telephone subscriber base witnessed a healthy growth of 1.7mn in May 2007 a

strong start to the new financial year. The segment subscriber base grew 3.22% mom

21

to 55.38mn. Bharti remained the overall market leader in both the CDMA and the

GSM segments.

COMPANY CIRCLES

Aircel Digilink

India Limited

Haryana, Rajasthan, U.P. ( East)

Aircel Limited Chennai, Tamil Nadu

Bharti Airtel

Limited

Delhi (Metro), Mumbai (Metro), Kolkata (Metro), Chennai

(Metro), Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh,

Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh,

Maharashtra & Goa, Orissa, Punjab, Rajasthan, Tamil Nadu,

UP (West), UP (East), West Bengal

BPL Cellular

Limited

Mumbai (Metro), Kerala, Maharashtra & Goa, Tamil Nadu

Vodafone Group Mumbai, Delhi, Kolkata, Chennai, Gujarat, Andhra Pradesh,

Karnataka, Punjab

Idea Cellular

Limited

Andhra Pradesh, Maharashtra, Gujarat, Madhya Pradesh,

Kerala, Haryana, U.P.(W), Madhya Pradesh

Reliance Telecom

Limited

Assam, Bihar, Himachal Pradesh, Kolkata, Madhya Pradesh,

North East, Orissa, West Bengal

Spice

Communications

Limited

Karnataka, Punjab

Market Share of Fixed line

During January 2010, 0.40mn subscribers were added in the fixed line segment and

the total subscriber base stood at 49.21mn. During the first 10 months of FY08 about

3.5mn subscribers have been added. Growth in fixed line segment continues to be

driven by the fixed wireless terminals.

Fixed Wireless Terminals (FWT)

FWT continues to be one of the fastest growing segments with 3.7% mom growth.

Tata maintained it leadership position in FWT segment with 57.9% market share

amongst private players. In net additions, Reliance led with 90% share. However,

Dot’s latest ruling removing FWT service from the ambit of basic service and instead

22

terming it a ‘limited mobile service’ liable to ADC levy may be a serious blow to the

growth of this segment.

23

Subscriber data of private players in FWT

Group

Company

Subscribers as of

December'09

Additions

In Jan

Subscribers as of

January'10 (%)Growth

Tata 3,636,051 21,049 3,657,100 0.6

Reliance 2,363,667 197,724 2,561,391 8.4

Bharti 22,858 15 22,873 0.1

HFCL 41,594 4,511 46,105 10.8

Shyam 27,412 856 28,268 3.1

Total 6,091,582 224,155 6,315,737 3.7

Source: AUTSPI

Market share of private players in FWT Share of net additions of private players

Source: AUTSPI

Fixed wire line segment

The subscriber base of private operators in fixed wire line segment crossed the 2.1mn

mark with the segment witnessing 3.2% mom growth. Bharti continued with its top

position among private players with a 55.9% market share. Last month witnessed

Bharti starting its operations in Mumbai. It has a subscriber base of 12,361

subscribers in Mumbai.

Subscriber data for private fixed wire line players

Group

Company

Subscribers as of

December'09

Additions

In Jan

Subscribers as of

January'10 (%)Growth

Bharti 1,176,655 44,017 1,220,672 3.7

Tata 406,916 4,598 411,514 1.1

HFCL 197,773 1,665 199,438 0.8

Shyam 140,009 794 140,803 0.6

24

Reliance 204,040 6,500 210,540 3.2

Total 2,125,393 57,574 2,182,967 2.7

Source: AUTSPI

Market share of private players in FWT Share of net additions of private players

MARKET SHARE OF PCO DIVISION IN UP WEST

Parameters AIRTEL IDEA BSNL TATA RELIANCE TOTAL

Channel

Partners

36 24 12 32

PCO Base 12322 6700 41800 8050 32800 101672

CCB 13600 4400

Market

Share –

PCO

12.22 6.59 41.11 7.92 32.26

Average

Billing

1660 1850 2150 1780 1620

Monthly

Recharge

Revenue –

Rs. Million

18 10.2 90 13 48 179.2

Revenue –

Market

Share

10.04 5.69 50.22 7.25 26.79

Months in

Operation

5 7 12 22

25

PROFILE OF THE ORGANISATION

Bharti Airtel Limited

Bharti Airtel to Observe Silent period from June 30, 2010

New Delhi June 25, 2010 : Bharti Airtel, India’s leading private telecom services

provider would observe a 'Silent Period' from the close of business on June 30, 2010

(Wednesday), till the declaration of results for the first quarter ending June 30, 2010,

as a commitment towards highest level of corporate governance.

Details about the quarterly and annual results announcement and the earnings call will

be made available on the website.

The practice of silent period does not refrain the company and its representatives from

any press conference & public dissemination of information. The observation of silent

period is only a practice and hence does not imply any legal obligation for the

company under any circumstances.

About Bharti Airtel Limited : Bharti Airtel Limited, a group company of Bharti

Enterprises, is among Asia’s leading integrated telecom services providers with

operations in India, Sri Lanka and Bangladesh. The company has an aggregate of

around 138 million customers across its operations. Bharti Airtel has been ranked

among the six best performing technology companies in the world by Business Week.

Bharti Airtel is structured as four strategic business units - Mobile, Telemedia,

Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka

and Bangladesh. The Telemedia business provides broadband, IPTV and telephone

services in 89 Indian cities. The Enterprise business provides end-to-end telecom

solutions to corporate customers and national and international long distance services

to carriers. The Digital TV business provides DTH Airtel’s national high-speed optic

fiber network currently spans over 126,357 Rkms across India. Airtel's international

network infrastructure includes ownership of the i2i submarine cable system and

consortium ownership in five global undersea cable systems, SEA-ME-WE 4, EIG, I-

ME-WE, AAG and UNITY.For more information, visit www.airtel.in

26

Bharti Airtel

Airtel comes to you from Bharti Airtel Limited, one of Asia’s leading integrated

telecom services providers with operations in 19 countries across Asia and Africa.

Bharti Airtel since its inception, has been at the forefront of technology and has

pioneered several innovations in the telecom sector.

The company is structured into four strategic business units - Mobile, Telemedia,

Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and

Bangladesh. The Telemedia business provides broadband, IPTV and telephone

services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV

services across India. The Enterprise business provides end-to-end telecom solutions

to corporate customers and national and international long distance services to telcos.

Vision and Values

Our vision

By 2020 we will build India's finest conglomerate by:

Always empowering and backing our people

Being loved and admired by our customers and -respected by our partners

Transforming millions of lives and making a positive impact on society

Being brave and unbounded in realizing our dreams

Our values

Empowerment

We respect the opinions and decisions of others. We encourage and back people to do

their best

Entrepreneurship

We always strive to change the status quo. We Innovate with new ideas and energise

with a strong passion and entrepreneurial spirit.

Transparency

We believe we must work with honesty, trust and the innate desire to do good.

Impact

Are driven by the desire to create a meaningful difference in society

Flexibility

We are ever willing to learn and adapt to the environment, our partners and the

customer's evolving needs.

Bharti Airtel Limited (BSE: 532454) formerly known as Bharti Tele-Ventures LTD

(BTVL) is an Indian company offering telecommunication services in 19 countries. It

27

is the largest cellular service provider in India, with more than 141 million

subscriptions as of August 2010[update] Bharti Airtel is the world's third largest,

single-country mobile operator and fifth largest telecom operator in the world with a

subscriber base of over 180 million It also offers fixed line services and broadband

services. It offers its telecom services under the Airtel brand and is headed by Sunil

Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve this

Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet

rigorous standards for networking competency, service, support and customer

satisfaction set forth by Cisco. The company also provides land-line telephone

services and broadband Internet access (DSL) in over 96 cities in India. It also acts as

a carrier for national and international long distance communication services. The

company has a submarine cable landing station at Chennai, which connects the

submarine cable connecting Chennai and Singapore.

It is known for being the first mobile phone company in the world to outsource

everything except marketing and sales and finance. Its network (base stations,

microwave links, etc.) is maintained by Ericsson and Nokia Siemens Network,

business support by IBM and transmission towers by another company. Ericsson

agreed for the first time, to be paid by the minute for installation and maintenance of

their equipment rather than being paid up front. This enables the company to provide

pan-India phone call rates of Rs. 1/minute (U$0.02/minute). During the last financial

year [2009-10], Bharti has roped in a strategic partner Alcatel-Lucent to manage the

network infrastructure for the Telemedia Business.

The company is structured into four strategic business units - Mobile, Telemedia,

Enterprise and Digital TV. The mobile business offers services in 18 countries across

the Indian Subcontinent and Africa. The Telemedia business provides broadband,

IPTV and telephone services in 89 Indian cities. The Digital TV business provides

Direct-to-Home TV services across India. The Enterprise business provides end-to-

end telecom solutions to corporate customers and national and international long

distance services to telcos.

Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber

base, behind China Mobile and China Unicom. In India, the company has a 30.7%

share of the wireless services market. In January 2010, company announced that

Manoj Kohli, Joint Managing Director and current Chief Executive Officer of Indian

and South Asian operations, will become the Chief Executive Officer of the

28

International Business Group from 1 April 2010. He will be overseeing Bharti's

overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj Kohli and

will be the CEO, effective from 1 April 2010.

Airtel digital TV launches two attractive offers for new customers this festive

season

- Offer 1: Now get 4 month free subscription to Economy Pack with all new Airtel

digital connections @Rs.1690

- Offer 2: Purchase a new Airtel digital TV connection for just Rs. 999

New Delhi, October 7, 2010 : Airtel digital TV, the DTH arm of Bharti Airtel, today

announced two powerful combos on new subscriptions for customers across India.

The Limited Period Offers come on the eve of the festival season.

Offer 1: Customers purchasing a new Airtel digital TV connection @ Rs.1690 need

not recharge their Airtel digital TV accounts for the next 4 months. They would be

entitled to 4 months free subscription to the Economy Pack (around 150 popular

channels, worth Rs.200+taxes) thereby enabling them to make the move to the next

generation DTH technology on Airtel, for an effective price of just Rs.806!

Offer 2: New customers who purchase a new Airtel digital TV connection for Rs.999

and get started with an initial recharge of just Rs.200.

Announcing the offers, Sugato Banerji, CMO-DTH Services, Bharti Airtel, said "We

believe that these two new entry offers will provide yet another compelling reason for

customers to join the growing Airtel digital TV family. By significantly bring down

the Total Cost of Ownership these offers will make it more easier for more customers,

to move to the next generation home entertainment options like Airtel digital TV."

Airtel digital TV – the DTH service from Bharti Airtel – has 3.8 million customers

and is one of the leading national level DTH service in the country which offers its

customers MPEG 4 with DVBS 2 – currently the most advanced digital broadcasting

technologies available in the world after HD broadcasting. Additionally, Airtel digital

TV was the first to bring many firsts to the DTH segment in India including a

Universal Remote which operates both the Set Top Box and TV set as well as several

unique Interactive Applications. Airtel digital TV recorder was the first to offer the

capability to record live television, anytime, anywhere and recently added HD

services to its portfolio. Users can also update themselves on the latest stock news. All

this is backed by 24x7 customer care. Airtel digital TV launched its services in

October 2010.

29

About Bharti Airtel Limited : Bharti Airtel Limited is a leading global

telecommunications company with operations in 19 countries across Asia and Africa.

The company offers mobile voice & data services, fixed line, high speed broadband,

IPTV, DTH, turnkey telecom solutions for enterprises and national & international

long distance services to carriers. Bharti Airtel has been ranked among the six best

performing technology companies in the world by BusinessWeek. Bharti Airtel had

over 188 million customers across its operations at the end of August 2010. To know

more visit www.airtel.in

Services

Mobile Services

Airtel is the name of the company's mobile services brand. It operates in 19 countries

and the Channel Islands. It is the 5th largest mobile operator in the world in terms of

subscriber base. Airtel's network consists of 3G and 2G services depending on the

country of operation.

Airtel

In India, the company's mobile service is branded as Airtel. It has nationwide

presence and is the market leader with a market share of 30.07% (as of May 2010).

On 19 October 2004, Airtel announced the launch of a BlackBerry Wireless Solution

in India. The launch is a result of a tie-up between Bharti Tele-Ventures Limited and

Research In Motion (RIM).

The Apple iPhone 3G was rolled out in India on 22 August 2010 by Airtel &

Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in

the first quarter of 2010. However, high prices and contract bonds discouraged

consumers and it was not as successful for both the service providers as much as the

iPhone is successful in other markets of the world.

On May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the

Indian government Rs. 12,295 crores for spectrum in 13 circles, the most amount

spent by an operator in this auction. Airtel won 3G licences in 13 telecom circles of

India: Delhi, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu, Uttar Pradesh

(West), Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East,

Jammu & Kashmir. Bharti is expecting to launch its 3G service by December 2010.

On 20 September 2010, Bharti Airtel said that it has given contracts to Ericsson India,

Nokia Siemens Networks (NSN) and Huawei Technologies to set up infrastructure for

providing 3G services in the country. These vendors will plan, design, deploy and

30

maintain 3G-HSPA (third generation, high speed packet access) networks in 13

telecom circles where the company has won 3G licences. While Bharti Airtel has

awarded network contracts for seven 3G circles to Ericsson India, NSN would

manage networks in three circles. Chinese telecom equipment vendor Huawei

Technologies has been introduced as the third partner for three circles.

Subscriber base in India

The Airtel subscriber base according to Cellular Operators Association of India

(COAI) as of August 2010 was:

Metros

Chennai - 2,877,029

Delhi - 6,950,079

Mumbai - 3,201,916

Kolkata - 2,947,042

"A" Circle

Andhra Pradesh - 14,240,429

Gujarat - 5,980,024

Karnataka - 13,434,418

Maharashtra - 7,209,072

Tamil Nadu - 8,744,937

"B" Circle

Haryana - 1,580,398

Kerala - 3,332,095

Madhya Pradesh - 7,496,236

Punjab - 5,171,278

Rajasthan - 11,004,105

Uttar Pradesh (East) - 8,534,334

Uttar Pradesh (West) - 4,923,409

West Bengal - 6,644,688

"C" Circle

Assam - 2,683,243

Bihar - 12,600,521

Himachal Pradesh - 1,452,709

Jammu and Kashmir - 1,751,239

North Eastern States - 1,612,005

31

Orissa - 4,840,243

Airtel is the market leader in India with about 31.18% market share of 481 million

GSM mobile connections as of August 2010.

Criticism

There has been lot of criticism about Airtel for its unauthorised VAS activation. Many

of its services were activated automatically according to a complaint forum. In return

Airtel launched STOP/START 121 services for such issues.

Airtel-Vodafone (Jersey and Guernsey)

On 1 May 2007, Jersey Airtel and Guernsey Airtel, both wholly owned subsidiaries of

the Bharti Group, announced they would launch mobile services in the British Crown

Dependency islands of Jersey and Guernsey under the brand name Airtel-Vodafone

after signing an agreement with Vodafone.

Airtel Lanka

In December 2008, Bharti Airtel rolled out 3.5G services in Sri Lanka in association

with Singapore Telecommunications. Airtel's operation in Sri Lanka, known as Airtel

Lanka, commenced operations on 12 January 2009. Airtel Lanka has 1.4 million

mobile customers in Sri Lanka, across 20 administrative districts.

Airtel in Bangladesh

In January 2010, it was announced that the Bangladesh Telecommuncations

Regulatory Commission (BTRC) had given Bharti Airtel the go ahead to acquire a

70% stake in the Bangladesh business of Abu Dhabi based Warid Telcom. The latter

had till date invested a total of $600 million, with plans to bring their Bangladesh

investments to the $1 billion mark. Airtel's 70% stake in the company is said to be at a

cost of an initial $300 million. The service is being operated under the brand name

Warid Telecom.

Warid Telecom covers the entire country and has over 2.5 million customers.

Airtel in Africa

On 14, February 2010 a statement issued by Zain Ghana, said "the Board of Directors

of Kuwait's Zain Group, after its meeting on February 14, 2010, issued a resolution to

accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive

discussions until 25 March 2010, regarding the sale of its African unit, Zain Africa

BV." The offer was for $10.7 billion. The deal would provide Bharti access to 15

more countries in the region, adding around 40.1 million subscribers to its already 125

32

million-plus user base. The combined revenue of the two entities would be around

$12 billion.

The deal ran into hurdles after the government of the of Gabon had come out against

the deal, but later approved the sale. The government of Congo Republic had also said

Bharti-Zain deal broke law. There was also a dispute about minority ownership of

Zain's operations in Nigeria, the biggest market in the deal. Minority shareholder

Econet was seeking to overturn a 2006 deal by Zain - then called Celtel - in which it

bought a majority stake in Nigerian mobile operator Vee Networks Ltd, now Zain

Nigeria. On 8, June 2010, Bharti said the Nigeria ownership dispute had been settled.

On 8, June 2010, Bharti Airtel, in the largest ever telecom takeover by an Indian firm,

completed a deal to buy Kuwait-based Zain Telecom's businesses in 15 African

countries for $10.7 billion. The transaction is the largest ever cross-border deal in an

emerging market and will result in combined revenues of about $13 billion."The

overall integration should be complete by the end of this financial year.

On September 1, 2010, Chairman and Managing Director Sunil Bharti Mittal said that

Bharti Airtel Ltd would change its Africa operations brand from Zain to Airtel by 15

October 2010.

Airtel Seychelles

On August 11, 2010, Bharti Airtel announced that it would acquire 100% stake in

Telecom Seychelles for US$62 million taking its global presence to 19 countries.

Telecom Seychelles began operations in 1998 and operates 3G, Fixed Line, ship to

shore services satellite telephony, among value added services like VSAT and

Gateways for International Traffic across the Seychelles under the Airtel brand. The

company has over 57 percent share of the mobile market of Seychelles.

Airtel announced plans to invest US$10 million in its fixed and mobile telecoms

network in the Seychelles over three years , whilst also participating in the Seychelles

East Africa submarine cable (SEAS) project. The US$34 million SEAS project is

aimed at improving the Seychelles’ global connectivity by building a 2,000 km

undersea high speed link to Dar es Salaam in Tanzania.

Telemedia

The Telemedia business provides services in 89 Indian cities and consists of two

brands.

33

Airtel Broadband provides broadband and IPTV services. Airtel provides both capped

as well as unlimited download plans. The maximum speed available for home users is

16Mbps.

Airtel Fixed Line which provides fixed line services.

Airtel has about 3.15 million wireline customers, of which 42.6% are

broadband/internet subscribers as of August 2010. Until September 18, 2004, Bharti

provided fixed-line telephony and broadband services under the Touchtel brand.

Bharti now provides all telecom services including fixed-line services under a

common brand "Airtel".

Digital Televison

Main article: Airtel Digital TV

The Digital TV business provides Direct-to-Home (DTH) TV services across India

under the brand name Airtel Digital TV. It started services on 9 October 2008 and has

about 32.44 million customers as of August 2010.

Enterprise

The Enterprise business provides end-to-end telecom solutions to corporate customers

and national and international long distance services to telcos through its nationwide

fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs,

ISP and international bandwidth access through the gateways and landing stations.

Merger talks

In May 2008, it emerged that Bharti Airtel was exploring the possibility of buying the

MTN Group, a South Africa-based telecommunications company with coverage in 21

countries in Africa and the Middle East. The Financial Times reported that Bharti was

considering offering US$45 billion for a 100% stake in MTN, which would be the

largest overseas acquisition ever by an Indian firm. However, both sides emphasize

the tentative nature of the talks, while The Economist magazine noted, "If anything,

Bharti would be marrying up," as MTN has more subscribers, higher revenues and

broader geographic coverage. However, the talks fell apart as MTN group tried to

reverse the negotiations by making Bharti almost a subsidiary of the new company.

In May 2010, Bharti Airtel again confirmed that it is in Talks with MTN and

companies have now agreed discuss the potential transaction exclusively by July 31,

2010. Bharti Airtel said in a statement "Bharti Airtel Ltd is pleased to announce that it

has renewed its effort for a significant partnership with MTN Group".

34

Talks eventually ended without agreement, due to the South African government

opposition

Consecutively for four years 1997,1998,1999 and 2000, AirTel has been voted as the

Best Cellular Service in the country and won the coveted

Techies award.

AirTel has consistently strived hard to, not only deliver as per

customer expectation, but also go beyond that. According to its

those at AirTel, their vision, mission and values are as follows….

VISION

To make mobile communications a way of life and be the customers' first choice

MISSION

We will meet the mobile communication needs of our customers through :

Error-free service delivery

Innovative products and services

Cost efficiency

VALUES

We will always put our customers first. We will always trust and respect each other.

We will respect our associates as we respect each other. We will work together

through a process of continuous improvement

Airtel (Bharti Airtel Ltd.)

Bharti Airtel Limited was incorporated on July 7, 1995 for promoting investments in

telecommunications services. Its subsidiaries operate telecom services across India.

Bharti Airtel is India's leading private sector provider of telecommunications services

based on a strong customer base consisting of 50 million total customers, which

constitute, 44.6 million mobile and 5.4 million fixed line customers, as of March 31,

2009.

Airtel comes to us from Bharti Airtel 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 has also put its

35

footsteps into Insurance and Retail segment in collaboration with Multi- National

giants. Bharti is the leading cellular service provider, with a footprint in 23 states

covering all four metros and more than 50 million satisfied customers.

36

SERVICES

Airtel Prepaid

Strong Network Coverage

Other Services

Voice Mail

SMS (Short Messaging Service)

Subscription Alerts

Airtel Live!

Airtel Live! WAP Services: Airtel Live! Voice Services:

Airtel Live! SIM Services.

Airtel Live! SMS Services

Hello Tunes

121@airtelindia.com .

Airtel Postpaid

Easy Billing

Easy Payment Options. Anytime Anywhere

Long Distance Calling Facility

Widest Roaming - National and International

GPRS - Roaming

Say it. In more than just words, with Services from Airtel

Conference call

Missed call alert

Subscription Alerts

Airtel Live!

GPRS (General Packet Radio Services)

Get the EDGE

Business Divisions

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is

the largest mobile service provider in the country, based on the number of customers.

The group focuses on delivering telecommunications services as an integrated

offering including mobile, broadband & telephone, national and international long

distance and data connectivity services to corporate, small and medium scale

enterprises.

37

The group offers high speed broadband internet with a best in class network. With

Landline services in 94 cities we help you stay in touch with your friends & family

and the world.

The Company compliments its mobile and broadband & telephone services with

national and international long distance services. It has over 35,016 route kilometers

of optic fibre on its national long distance network. For international connectivity to

east, it has a submarine cable landing station at.

Bharti Airtel Limited

(A Bharti Enterprise)

Bharti Airtel is one of India's leading private sector providers of telecommunications

services based on an aggregate of 42,685,530 customers as on May 31, 2008,

consisting of 40,743,725 GSM mobile and 1,941,805 broadband & telephone

customers.

The businesses at Bharti Airtel have been structured into three individual strategic

business units (SBU’s) - mobile services, broadband & telephone services (B&T) &

enterprise services. The mobile services group provides GSM mobile services across

India in 23 telecom circles, while the B&T business group provides broadband &

telephone services in 94 cities. The enterprise services group has two sub-units -

carriers (long distance services) and services to corporates. All these services are

provided under the Airtel brand.

Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National

Stock Exchange of India Limited (NSE).

Partners

The company has a strategic alliance with SingTel. The investment made by SingTel

is one of the largest investments made in the world outside Singapore, in the

company.

The company’s mobile network equipment partners include Ericsson and Nokia. In

the case of the broadband and telephone services and enterprise services (carriers),

equipment suppliers include Siemens, Nortel, Corning, among others. The Company

also has an information technology alliance with IBM for its group-wide information

technology requirements and with Nortel for call center technology requirements. The

call center operations for the mobile services have been outsourced to IBM Daksh,

Hinduja TMT, Teletech & Mphasis.

38

The company's unique strategic outsourcing model has been studied and documented

by Harvard

Factsheet At-a-glance guide to Bharti Airtel

Organization Structure Organisation chart depicting the Senior Management

positions

Shareholding Structure Details on the latest shareholding structure and

major shareholders, as on March 31, 2009

Awards & Recognitions Laurels recognising Bharti's consistent efforts.

Factsheet

Name Bharti Airtel Limited.

Business

Description

Provides mobile, broadband & telephone (fixed line) and

enterprise services (carriers & services to corporates)

Established July 07, 1995, as a Public Limited Company

Proportionate

Revenue

Rs. 184,202 million (year ended March 31, 2008-Audited)

Rs. 117,255 million (year ended March 31, 2007-Audited)

As per Indian GAAP Accounts

Proportionate

EBITDA

Rs. 74,407 million (year ended March 31, 2008-Audited)

Rs. 42,250 million (year ended March 31, 2007-Audited)

As per Indian GAAP Accounts

Shares in Issue 1,895,934,157 as at March 31, 2008

ListingsThe Stock Exchange, Mumbai (BSE)

The National Stock Exchange of India Limited (NSE)

39

Market

Capitalisation

Customer Base

40,743,725 GSM mobile and 1,941,805 broadband &

telephone (fixed line) customers (Status as at month ended

May 31, 2008)

Operational

Network

Provides GSM mobile services in all the 23 telecom circles in

India, and was the first private operator to have an all India

presence.

Provides broadband (DSL) and telephone services (fixed line)

in 94 cities in India.

Registered Office

Bharti Airtel Limited

(A Bharti Enterprise)

Qutab Ambience (at Qutab Minar), Mehrauli Road,

New Delhi - 110 030

Tel. No.: +91 11 4166 6000

Fax No.: +91 11 4166 6011/12

Organisation Structure

As an outcome of a restructuring exercise conducted within the company; a

new integrated organizational structure has emerged; with realigned roles,

responsibilities and reporting relationships of Bharti’s key team players. With effect

from March 01, 2007, this unified management structure of 'One Airtel' will enable

continued improvement in the delivery of the Group’s strategic vision.

40

Bharti Airtel - Organization Structure

Bharti Enterprises - Organization Structure

41

Organisation Structure

As an outcome of a restructuring exercise conducted within the company; a

new integrated organizational structure has emerged; with realigned roles,

responsibilities and reporting relationships of Bharti’s key team players. With effect

from March 01, 2007, this unified management structure of 'One Airtel' will enable

continued improvement in the delivery of the Group’s strategic vision.

Bharti Enterprises - Organization Structure

The equity shares of Bharti Airtel are currently listed on National Stock Exchange of

India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Airtel offered

185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15

million through this process. The shares were over subscribed 2.56 times.

With this IPO, Bharti Airtel established certain important landmarks in the history of

the Indian capital market. Together with being the first 100% book building process

that this country has seen, the listing was completed within a record time of ten

working days. of the close of the issue. Moreover the process of allotment and issue

of shares was also completed within one day of the last day of pay-in.

The book running lead managers for the IPO were JM Morgan Stanley and DSP

Merrill Lynch and the registrars to the issue was Karvy Consultants Limited.

Share price data is delayed by approximately 15 minutes

VISION

To make mobile communications a way of life and be the customers' first choice

MISSION

We will meet the mobile communication needs of our customers through :

Error-free service delivery

Innovative products and services

Cost efficiency

VALUES

We will always put our customers first. We will always trust and respect each other.

We will respect our associates as we respect each other. We will work together

through a process of continuous improvement

42

Coverage of AirTel

AirTel cellular service covers whole of Delhi and the adjoining satellite cities as

shown in the map. It boost that the coverage is uninterrupted and covers the widest

area. Vodafone which more or less covers the same area will give AirTel a toss in the

future when its partner Vodafoneison which is planning to consolidate all its Indian

operation and give its customers a wider reach in term of autoroam. Player who

provides a better service in this respect will have a edge in the future as we can see the

way people and business is moving out of Delhi.

How much does it cost

Security Deposit (Refundable) Rs. 2001

Activation Charges Rs. 1260

Total Rs. 3260

Note: The above are one time entry cost. The deposit is completely refundable.

Airtime Rates

Business Lifestyle Plan

Monthly Rental Rs. 625 per month

Outgoing Rates(applicable 24 hours) Rs. 8 per minute

Incoming Rates(applicable 24 hours) Rs. 1 per minute

The rates are valid 24 hours a day/ 7 days a week

AirTel Standard Plan

Monthly Rental Rs. 475 per month

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

Incoming)

Concession Hrs-I(8 am to 10 am & 9 pm to 12 midnight)Rs. 3.90 per minute(Outgoing and

Incoming)

Concession Hrs-II(12 midnight to 8 am)Rs. 2.90 per minute(Outgoing and

Incoming)

Billing pulse is of 30 seconds. On Sundays and National Holidays (15th Aug, 26th Jan

& 2nd Oct) the tariff rates are of Rs. 2.90 per minute (midnight to 8 am) & Rs. 3.90

per minute (8 am to midnight).

AirTel Leisure Plan

Monthly Rental Rs. 525 per month

43

Incoming & Outgoing Rates

8 pm to 8 am (Weekdays) 50 paisa per 30 seconds

8 am to 8 pm (Weekdays) Rs. 3 per 30 seconds

Sundays & National Holidays (all 24 hours) 50 paisa per 30 seconds

Weekdays are Monday to Saturday. National Holidays are 15th Aug, 26th Jan & 2nd

Oct. The billing pulse is 30 seconds on all days.

AirTel Easy

Monthly Rental Rs. 525 per month

Outgoing Incoming

Peak Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Standard Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Off Peak Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Coverage of AirTel

AirTel cellular service covers whole of Delhi and the adjoining satellite cities as

shown in the map. It boost that the coverage is uninterrupted and covers the widest

area. Vodafone which more or less covers the same area will give AirTel a toss in the

future when its partner Vodafone son which is planning to consolidate all its Indian

operation and give its customers a wider reach in term of autoroam. Player who

provides a better service in this respect will have a edge in the future as we can see the

way people and business is moving out of Delhi.

PRODUCTS

Post Paid Card

Pre Paid Cash Card

Post Paid Card

Business Lifestyle Plan  

AirTel Standard

Leisure Plan

AirTel Easy

44

How much does it cost

Security Deposit (Refundable) Rs. 2000

Activation Charges Rs. 1260

Total Rs. 3260

Note: The above are one time entry cost. The deposit is completely refundable.

Airtime Rates

Business Lifestyle Plan

Monthly Rental Rs. 625 per month

Outgoing Rates(applicable 24 hours) Rs. 8 per minute

Incoming Rates(applicable 24 hours) Rs. 1 per minute

The rates are valid 24 hours a day/ 7 days a week

AirTel Standard Plan

Monthly Rental Rs. 475 per month

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

Incoming)

Concession Hrs-I(8 am to 10 am & 9 pm to 12 midnight)Rs. 3.90 per minute(Outgoing and

Incoming)

Concession Hrs-II(12 midnight to 8 am)Rs. 2.90 per minute(Outgoing and

Incoming)

Billing pulse is of 30 seconds. On Sundays and National Holidays (15th Aug, 26th Jan

& 2nd Oct) the tariff rates are of Rs. 2.90 per minute (midnight to 8 am) & Rs. 3.90

per minute (8 am to midnight).

AirTel Leisure Plan

Monthly Rental Rs. 525 per month

Incoming & Outgoing Rates

8 pm to 8 am (Weekdays) 50 paisa per 30 seconds

8 am to 8 pm (Weekdays) Rs. 3 per 30 seconds

Sundays & National Holidays (all 24 hours) 50 paisa per 30 seconds

Weekdays are Monday to Saturday. National Holidays are 15th Aug, 26th Jan & 2nd

Oct. The billing pulse is 30 seconds on all days.

45

AirTel Easy

Monthly Rental Rs. 525 per month

Outgoing Incoming

Peak Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Standard Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Off Peak Rate Rs. 6.00 per

minute

Rs. 2.00 per

minute

Pre Paid Cash Card

Magic Pre Paid Connection

What is Magic?

Magic Ready Cellular Card is your ready-to-use, no-hassle cellular connection. It

comes pre-activated with STD/ISD calling facility. Backed by AirTel, the leading

cellular operator in India, it gives you crystal clear communication in entire Delhi,

Ghaziabad, NOIDA, Gurgaon, Faridabad and Ballabhgarh.

Highlights

MAGIC... the simplest way to go cellular

Wide Availability

Magic Ready Cellular Card and Magic Recharge Cards are available widely all over

the city at over 1800 outlets.

No applying

Magic is available across the counter. You do not need to apply in advance or go

through complicated formalities to get connected.

Instant Connectivity

Magic Ready Cellular Card can be used as soon as it's bought. Your connection is

pre-activated with a host of other services.

Compatible with all Handsets

With only Magic, you are assured that it would work with all models of GSM cellular

handsets.

46

No Bills

No more keeping track of bills every month. With Magic, you pay when you want and

as much as you need.

Total Cost Control

Magic gives you complete control over your cellular expenses every month. The

friendly IVR service tells you your balance, free of cost, whenever you desire.

Convenient Recharging

Recharging your Magic card is very simple. Whenever your balance is running low,

just buy a recharge card of value most suitable or recharge on-line.

Free Home Delivery

Just call "Dial-a-Magic' at 333 (toll free) from your Magic to place the order, and get

the card delivered at your preferred address at no extra cost. Currently this service is

available in Delhi and Gurgaon only.

How does it work?

When you buy a Magic Ready Cellular Card pack you get a SIM card and a recharge

card in the pack. Your Magic SIM card is already activated and just needs to be

loaded with calling value, which you can do by using the Magic Recharge Card.

This calling value is valid for a pre-defined period called the validity period.

You can make and receive calls only during this validity period. As and when

you make or receive calls the calling value balance on your Magic Card

account keeps reducing as per the applicable airtime rates. You must get your

Magic Card recharged before the calling value is over or the validity period

ends. Magic Recharge Cards are widely available at over 2400 outlets spread

across the city in convenient denominations of Rs.500, Rs.1000, Rs.2000 and

Rs.3000.

Every time you recharge your Magic Card you get a credit of calling value

which has a new validity period attached to it. The validity period is followed

by a grace period of 15 days during which no calls can be made or received,

but the Magic Card Account can be recharged. During the grace period you

can also order for a Magic Recharge Card to be delivered at your doorstep,

absolutely free of cost, by simply dialing 333 from your Magic.

MAGIC ... the most affordable cellular

No Rentals

No Security Deposits

47

Pre-activated STD/ISD

Free CLI

Cost Package

Sadasdasd Magic "Regular" pack

MRP Rs. 1525

Inclusive of :

Calling Value Rs. 785.71

Activation Fee Rs. 500

Processing Fee Rs. 166.67

Service Tax Rs. 72.62

Recharging Magic Card

One can either recharge Magic online or purchase a recharge card from any of our

outlets spread across the city. Recharge cards are available in four convenient

denominations of Rs.500, Rs. 1000, Rs. 2000 and Rs 3000.

Technology:

In no other service or business is technology such a major factor. Sales and marketing

are futile without a sound technological base. Hence we analyze AirTel on the basis

of this parameter.

Technological facets in cellular services are explained and the level of expertise of

both players stated.

Call set up time:

This is the time that it takes a user to get connected after the completion of the dialing

process.

Presently 8-30 seconds is considered normal set-up time.

AirTels’ call set up time is generally within this range.

Capacity Call congestion:

This is the quality of getting calls through even in high user density areas.

AirTel provides better customer satisfaction.

48

This will enable them to increase their customer base leading to increased revenues

in the future.

Voice Quality and Coverage

It is the clarity of transmission. In city centers this quality is not difficult to maintain.

However it becomes very important when the transmission is being directed to or

from

under ground locations, from behind tall building and structures , narrow and

congested city interiors.

AirTel provides better quality in the above mentioned. The reason for this is the

better infrastructure and technology.

Customer care

In one of the market researches, consumers described Mobile Telephony as the Dil

Ka Rishta. And always taking notice were the 2 giants – AIRTEL and Vodafone.

As the passage of time has added importance to the above concept, both these

organizations have tried getting the upper hand at providing their clientele with

customer care and services that wireless technology can bring to them

Our foray into deciding the leader in this quest has left us with extremely close

results.

We looked at this competition at 2 different stages:

Customer care at the point of making the sale:-

For both these concerns, this translated into providing smoothness of transaction

for the customer AIRTEL had been established to posses 3 core

values–.Leadership, Performance and Dynamism. In its quest for customer care, it

embarked upon a campaign intended to add “warmth” to these core values. It was

felt that the creative should reflect humane yet aspirational, family-centric yet

reachable and softer brand values.

After-sales service: -

The aspect of comfort should continue even after a customer has made an

initial purchase, and both corporations have made it a locus point of their

strategies. AIRTEL and VODAFONE both have in their arsenal an impressive

number of after sales service stations. AIRTEL is planning to build a network

of over a dozen AIRTEL CUSTOMER CENTRES from the present number

of 2. VODAFONE too has an extremely strong sense of reassurance

49

emanating from it`s after sales back-up. AIRTEL TOUCH POINTS –

Created to serve as lifestyle style establishments, their number is expected to

go up to about 50 in Delhi itself.

PROBLEMS OF THE ORGANISATION

Recruitment & Selection is needed in organizations or not, to what extent Recruitment

& Selection should be done and how can it made be effective to increase the

productivity of employees in the organizations. Bharti Airtel, formerly known as

Bharti Tele-Ventures Limited (BTVL) is among India's largest mobile phone and

Fixed Network operators. With more than 50 million subscriptions as of 1st October

2010, the company is one of the world's fastest growing telecom companies. Many

smart organizations work to develop and nurture engagement. An organization’s

capacity to manage Recruitment & Selection is closely related to its ability to achieve

high performance levels and superior business results. Engaged employees also

normally perform better and are more motivated.

How will you know to what degree your employees are engaged? The first step is to

determine the current level of Recruitment & Selection. Customizable employee

surveys will provide you with a starting point towards your efforts to optimize

Recruitment & Selection. Nothing is more discouraging to employees than to be

asked for their feedback and see no movement toward resolution of their issues. When

leaders listen, employees respond by becoming more engaged. Conditions that

prevent Recruitment & Selection seldom alleviate themselves. They should be

assessed and addressed as soon as possible. Listen to your employees and remember

that this is a continuous process.

In the current business scenario securing employee commitment is being recognized

as the critical consideration, if an organization is to make the most of its investment in

people. But this is not the price that is one easily, and in order to embed and sustain

engagement commitment, a different approach design need to be adopted. There are

strong co-relations between compensations, benefits, plans and employee

commitment.

The project throws light on measuring Recruitment & Selection, the tools used and

the elements of engagement. It elucidates the evolution of engagement, the goal and

characteristic tools used for measuring Recruitment & Selection for the prediction of

50

organizational success – as general index for HR effectiveness in an organization, for

benchmarking the work climate, need analysis etc.

The higher needs in this hierarchy only come into focus when the lower needs in the

pyramid are satisfied. Once an individual has moved upwards to the next level, needs

in the lower level will no longer be prioritized. This is very true like even in Airtel

those who earned low income preferred financial incentives like bonus, etc. over non-

financial incentives .

Human Resource in Airtel was to measure the current Recruitment & Selection level

and suggest ways to improve it. For which I conducted a survey. The company is keen

on to find out that if any gap exists in its policies for this it conducts time to time

surveys to find out what the employees expects from their organization.

Organization should effectively recruit and select employees who are more likely to

be engaged and also on performance management techniques to help maintain and

improve the engagement level of current employees. If one concentrates on some of

the core and basic HR practices, one will end up with engaged and high performing

employees as a by-product.

COMPETITION INFORMATION

VODAFONE

IDEA CELLULAR LIMITED

BSNL

TATA INDICOM

RELIANCE COMMUNICATIONS

MTS

MAHANAGAR TELEPHONE NIGAM LTD

51

S.W.O.T ANALYSIS OF THE AIRTEL

Strengths

Right products, quality and

reliability.

Superior product performance vs.

competitors.

Brand Image

Products have required

accreditations.

High degree of customer satisfaction.

Good place to work

Lower response time with efficient

and effective service.

Dedicated workforce aiming at

making a long-term career in the

field.

Weaknesses

Some gaps in range for certain

sectors.

Not popular in the international

market

Delivery-staff need training.

Customer service staff needs

training.

Processes and systems, etc

Management cover insufficient.

Sectoral growth is constrained by

low unemployment levels and

competition for staff

Opportunities

Profit margins will be good.

End-users respond to new ideas.

Could extend to overseas.

New specialist applications.

Could seek better supplier deals.

Fast-track career development

opportunities on an industry-wide

basis.

An applied research centre to create

opportunities for developing

techniques to provide added-value

services

Threats

Legislation could impact.

Existing core business distribution

risk.

Retention of CSD staff critical.

Vulnerable to reactive attack by

major competitors.

The cost of telecom and network

infrastructure is much higher in

India.

Lack of infrastructure in rural areas

could constrain investment.

High volume/low cost market is

intensely competitive.

52

Chapter-2.0

OBJECTIVES AND METHODOLOGY

OBJECTIVES

To study that whether Recruitment & Selection is needed in

organizations.

To what extent Recruitment & Selection should be done and how can it

made be effective to increase the productivity of employees in Bharti

Airtel.

To determine the level of job Recruitment.

To study the attitude of employees towards their jobs.

To analyze opportunities that is provided to employees for their

development.

To find out that if any gap exist in its policies for this it conducts time

to time surveys to find out what the employees expects from their

organization.

SCOPE OF THE STUDY

The scope is limited to the employees of Bharti Airtel because the

survey was conducted to find out their current Recruitment & Selection

level and suggest ways to improve it.

New thoughts would be brought.

Importance of Recruitment & Selection would be known.

MANAGERIAL USEFULNESS OF THE STUDY

In today’s globally competitive environment where work pressures are on the rise,

especially in the Bharti Airtel, the imminent cause of worry has been the growing rate

of attrition.

A detailed study on the various retention strategies adopted by the Bharti Airtel

industries has been conducted keeping in mind objectives.

The sample comprised companies with different size of operations, headquarters at

different tiers and locations across the country. These companies offer Voice & non-

voice services to their clients.

53

It is successfully servicing ebookers group, Europe's leading Online Travel Business

and its group companies across 11 European countries in 9 different languages

(English, French, German, Swiss, Dutch, Finnish, Swedish, Norwegian, and Spanish).

The Survey reveled that most of the Bharti Airtel companies are trying to complement

their hiring strategies with brand-building activities in order to increase their chances

of hiring the best talent.

METHODOLOGY

i Sampling unit

This refers of the number of items that were selected for the surveys. For this

survey 100 respondents were chosen randomly

ii Sampling Technique

The main statistical tools used for the collection and analyses of data in this

project are:

Questionnaire

Pie Charts

Tables

iii Sampling Area

Delhi & Gurgaon

iv Sampling Size

The total sample consisted of employee Recruitment & Selection of Bharti

Airtel companies

LIMITATIONS

One of the major problems faced was to get the questionnaire filled.

Since the call centre employees work in shifts and they don’t have

much of free time on the floor, it was difficult for me to get enough

time with them.

Since most of the call centre employees are not on the payrolls of

Bharti, I could cover a sample size of only 30 employees.

During the benchmark study on retention practices, I was not allowed

to meet the employees of other call centres during the shift timings

inside the office.

54

Since Attrition is a sensitive and furtive issue for the Company, I was

not given access to all the data related to attrition.

Workstation and PCs were not available which led to increased time

and effort in completion of project.

Associate Audit was done and we had to depend upon the information

provided by the associates for some information which was a part of

the questionnaire and that information could not be received from

elsewhere.

Time was also a constraint for the second phase as due to specified

time period a time line was decided as the research was to be

completed by then.

55

Chapter-3.0

CONCEPTUAL DISCUSSION

RECRUITMENT AND SELECTION

Employees well selected and well placed would not only contribute to the efficient

running of the orgnaisation but also offer significant potential for future replacement.

Recruitment is concerned with both engaging the required number of people, and

measuring their quality. It is not only a matter of satisfying a company’s needs; it is

also an activity, which influences the shape of the company’s future. It is a process

that not only helps to select and fill a vacancy physically, mentally, and

temperamentally but also helps to develop an employee into a desirable employee.

Selection process searches persons with potential who would grow in the

organisation.

The organisational practices in selection in India vary considerably. The private and

public sector organisations differ in their selection practices. Selection for public

sector undertakings is governed by the principles laid down in 1961 (Prasad, 1973)

and are operationalised by Public Enterprises Selection Board, Union Public Service

Commission, National Institute of Bank Management, Subordinate Services

Commission, etc.

The process of selection begins with the understanding and definition of the job to be

performed by those involved in selection. These are then converted into job

specifications (qualifications), which are made public. Job opportunities should be

publicized in such a way that they enable the organisation to draw upon prospective

candidates from a wide cross- section of the society.

Systematic and planned selection helps the organisation to derive the following

advantages.

It helps to generate only relevant applicants through a self- selection process on the

part of the potential applicants. It thus saves time and money.

Careful selection is functional in choosing highly motivated employees and thus

develops a culture of a committed way of work life. Pareek and Rao (1981) suggest

that through proper selection of new entrants it is possible to build a desirable culture

56

and desirable norms in the organisation. Once such a culture is established it also

influence the new entrants orientation.

Proper selection also ensure high degree of satisfaction among the employees by

letting them know that their capabilities are being properly utilised and that they are

now wasting their time and talent. This feeling is likely to raise the morale of the

employees and may result in higher levels of commitment and productivity.

It ensures supply of the right type of personnel in a short duration of time.

In any selection there are chances of selecting a wrong person and also chances of

losing a right person. Both are equally costly to the orgnaisation. Systematic selection

ensures minimisation of such errors:-

Error of omission

Error of commission

It helps build the image of the organisaiton. It ensures purely objective, merit- related

selection and hence establishes an image of impartiality. This attracts more qualified

and better candidates tot he organisation.

Systematic selection is a tremendous blessing for human resources information

systems. It provides a useful data bank for personnel audit and research, and potential

for upward mobility in the organisation.

The process of Selection consists of three stages:- Recruitment, Screening and

Selection

Recruitment

The first stage in selection is to make the vacancies known to a large number of

people and the opportunities that the organisation offers. The process of attracting

people to apply is called recruitment. Recruitment is also defined as a process of

searching for prospective employees and stimulating them to apply for jobs. It is

different from selection, which begins after recruitment has ended. While recruitment,

is a process of attracting people selection is a process of choosing a few among those

who have been attracted.

57

The need for recruitment may arise our of the following situations.

Vacancies due to transfer, promotion, retirement, termination, permanent disability, or

death. Creation of vacancies due to expansion, diversification, growth, or job re-

specification.

Recruitment is done by using a number of methods.

1. Employment Agencies

There are a number of private employment agencies like Ferguson Associates, ABC

Consultants, SB Billimoria, who register for employment and can furnish a list of

suitable candidates when sought by employers from their data bank. Generally, these

agencies, these agencies also recruit on behalf of the organisation without necessarily

disclosing the identity of the organisation. They go as far as short-listing the

candidates for organisation but the final decision is taken by the representatives of the

organisation.

In terms of cost this might turn out to be cheaper than the organisations doing it

themselves. The time and manhours saved by the company executives in processing

and short-listing the candidates could perhaps be utilised elsewhere by the

organistaion.

Up to a certain point the organisations identity remains unknown.

On the other hand, there is always the risk of losing out in screening some person

whom the representatives of the orgnaisation would have liked to meet.

2. Advertisement

It is the most widely used method for generating applications. Its reach is very wide.

Different mass media could be used to make people aware of the opportunities. There

are special journals and magazines that cater to different market segments and putting

an advertisement in them may generate a large number of relevant applications.

However, in preparing and advertisement, lot of care has to be taken to ensure that

some self-selection among applicants takes place. In other words, only qualified

people should think of responding to advertisements.

A good advertisement has to be specific and clear-cut in what it is looking for.

Subramuniam and Devi (1984) studied 496 advertisements published in the Hindu

during 1981. Public sector enterprise inserted as many as 125 out of 496

advertisements. Their results revealed that public sector enterprises provided better

58

job descriptions, job specifications, compensation details, qualifications, age and

selection procedures as compared to private sector enterprises.

A good, carefully worded advertisement can also help in building the image of the

organisation.

3. Campus Recruitment

While campus recruitment is a common phenomenon in the West, in India it has made

its mark rather recently. Many organisations send their representatives every year to

national institutes of higher learning like Indian Institutes of Management Indian

Institutes of Technology and similar others. I In fact many institutes have regular

placement offices which not only send out the profiles of graduating students, but also

help the visiting company representatives in administrative details. The organisations

have definite advantages through campus recruitment. First, the cost is low; second,

they can arrange interviews at short notice,; third, they can meet the teaching faculty;

fourth, it gives them an opportunity to ‘sell’ the organisation to a large student body

who would be graduating later, as well as establish a goodwill through presentations

and distribution of company material. One of the drawbacks of campus recruitment

for employing organisations is that they interview candidates who have similar

experience and education.

4. Deputation

Deputation refers to sending an employee to another orgnaisation for a short duration

of two to three years. Deputation is a pretty common method of recruitment in the

public sector organisations and government agencies in India. It also takes place in

the private sector when an employee is sent to another unit of the same group for

some time. However, deputation in Indian context is generally, seen with reference to

public sector organisations and government agencies. Deputation is useful because it

provides ready expertise and the organisation does not have to incur the initial cost of

induction and training. Since the deputation period is generally limited to two to three

years, it is often a handicap.

5. Professional Association

Very often, for certain professional and technical positions it may be useful to go to

professional associations (e.g. All India Management Association). An application

routed through these associations would, perhaps, be better in terms of qualification as

59

some of these association themselves do a preliminary screening. In India, this is not a

very common practice and those few that do provide this kind of service have not

been able to generate a large number of applications.

6. Word of Mouth

Sometimes it may be more economic, both in terms of time and money, to pass the

word around about the possible opening. This could be done either through individual

employees or unions. It often serves the purpose of keeping the union involved in

recruitment and ensuring industrial harmony.

7. Casual Applications

Often the organisation receives self- solicited applications seeking suitable

opportunities. Many organizations I keep a live file of such casual unsolicited

applications and whenever a befitting position opens, invite them to apply through

formal channel. One major problem with this method is that such people apply to a

number of organizations, and when they are needed by the organisation, either they

are absorbed by other organizations or are not interested in the position.

8. Raiding

Raiding is a technical term used when employees working elsewhere are attracted to

joint organisations. The organisations are always on the lookout for qualified

professionals, and are willing to offer them a better deal if they make the switch.

There are always some employees who are professionally very competent, but

dissatisfied with something or the other in the organisation. They form the ‘easy’

group to attract. The other group is formed of those who are equally competent but are

quite satisfied with their present position. To attract them, the organisation has to

offer a very lucrative package of perquisites. Whatever may be the means used to

attract, often it is seen as an unethical practice and not openly talked about.

60

PERSONNEL/ HUMAN RESOURCE MANAGEMENT MODEL

Economic

Forces

Labor Markets Laws and

Regulations

Labour Unions

EXTERNAL INFLUENCES

PERSNNEL/HUMAN

RESOURCE

ACTIVITES

PERSONNEL / HUMAN

RESOURCE

OUTCOMES

Support Activities

Analyzing Individuals

and jobs

Assessing Outcomes Attraction

Human Resource

Planning

Performance

Functional Activities Retention

External Staffing Attendance

Internal Staffing and

Development

Satisfaction

Compensation Other

Labour Relations

Work Environment

INDIVIDUALS

Ability Motivation

JOBS Requirement Rewards

61

THE TWO FACE OF SEARCHING AND SCREENING

Closed internal Recruitment System

Under a closed internal recruitment system, employees are not made aware

of job vacancies. The only people made aware of promotion or transfer

opportunities are those who oversee placement in the human resource

department, line managers with vacancies, and contacted employees. The

way a vacancy is typically filled under a closed system is shown below.

CLOSED INTERNAL RECRUITMENT SYSTEM

Organisation

Activate search

Communicate job openings and attributes

Applicant 600Make inquiries

and apply

Activate search

Individual

Screen applicants

Reject

Continued interest

Potential hires

Continued interest

Screen opportunities

Reject

Manager notifies human resources of vacancy

Human resources searches filed for candidates

List of candidates given by human resources to manager

Position filled by manager

62

Open internal recruitment system

Under an open internal recruitment system, employees are made aware of job

vacancies. Usually this is accomplished by a job posting and bidding system.

An open system gives employees a chance to measure their qualifications against

those required for advancement. It helps minimize the possibility of supervisors

selecting only their favourite employees for promotion or transfer. Hidden talent s

often uncovered.

OPEN INTERNAL RECRUITMENT SYSTEM

An open system may, however, create unwanted competition among employees for

limited advancement opportunities. It is a very lengthy and time- consuming process

to screen all candidates and provide them with feedback. Employee morale may be

decreased among those who are not advanced.

Targeted system of internal recruitment

Manager notifies human resources of vacancy

Human resource posts job opening

Human resources receives bids from interested applicants

Human resources screens candidates

List of candidates given by human resources to managers

Manager interviews candidates

Manager fills position

63

Under a targeted system, but open and closed steps are followed at the same time.

Jobs are posted, and the human resources department conducts a search outside the

job posting system. Both systems are used to cast as wide a net as possible. The large

applicant pool is then narrowed down by KSAOs. Seniority eligibility, demographics,

and availability of pplicants.

A targeted system has three advantages; a thorough search is conducted, people

have equal opportunity to apply for postings, and hidden talent is uncovered.

SCREENING

In the overall process of selection, screening comes after the recruitment is complete.

Screening is a process of reducing the number of applicants to a few who have better

chances of selection than those screened out. Screening is generally done on two

counts- eligibility and suitability.

Eligibility is to see if the applicants fulfil the minimum qualifications stipulated n the

recruitment announcement. Those who do not qualify are straight away eliminated

from the selection. It is difficult to decide on the criteria suitability. One can choose

only those with a high percentage of marks, but that is not always a guarantee for

good performance. A judgement has to be made looking at the job specifications. In

general, those distant from job specifications are screened out in the first round itself.

Screening can be done by using a variety of methods. Some of these method are

discussed below:

1. Preliminary applications

On the basis of minimum information in a preliminary or self- prepared application,

screening could be done. Only those who qualify at this stage are sent a

comprehensive application blank. If this facility is not available, then the information

provided in the comprehensive application blank itself becomes the basis for

screening.

2. Tests of Deselection

Many organisations in India are now using psychological tests to deselect a number

of applicants. If the number of applicants is large, higher cut- off scores are set to

reduce the number to a manageable size. These are generally tests of intelligence and

environmental awareness. In many academic institutions, banks, etc., this is a

common practice. The cut- off point is determined by a general formula of a number

of vacancies multiplied by four. The idea is to get four times the number of vacancies,

call them for interviews, group discussions, or any other subsequent methods of

64

selection. Research has shown that 1:4 ratio for selection gives enough margin for

choice. Although this ratio is not always strictly adhered to , it is a common practice.

3. Screening interviews

Another method of screening is to have a short duration interview with all the

candidates and then decide who should be asked for a comprehensive interview at a

late date. This is a good technique, provided the number is not large. Many

companies in campus interviews use this technique.

While screening does help to reduce large numbers to manageable proportions, it also

has the possibility of losing some applicants who could have performed well in the

subsequent selection. With more clear understanding of job description, however, this

risk could be reduced.

SELECTION

Managing Recruitment and Selection System

ATTRACT

ENGAGE

TRANSACT

SATISFY

RETAIN

65

Selection is choosing a few from those who applied. Some selection are:

1. Application Banks

This is one of the most common methods used for collecting information from the

applicants. The general purpose of application blanks, according to Athreya (1968),

is to “secure desired factual information from an applicant in a form convenient for

evaluating the applicant’s qualifications”.

Purpose of Applications Blanks: Lipsett, Rodgers and Kenter (1964) have identified

three purposes of application blanks: preliminary screening, aid in interview, and a

selection device in its own right. A wider application shows that the application blank

serves the following purpose.

The provide the candidates first formal introduction to the company. Prior to

receiving the application, the company knows nothing about him/her.

They generate data in uniform formats and hence make it easy to make cross

comparison of the applicants.

They generate data that can serve as abasis to initiate a dialogue in the interview. This

may be true for both preliminary and final interviews. Areas that need to be further

explored are identified on the basis of blank also provide leads for subsequent

interviews.

Data in the application blank can be used for purpose of analysis and research in

personnel. In addition, some minimum data on employees selected have to be stored

for subsequent use.

Since the major part of the application blank is structured, the responses could be pre-

coded for computersation. This is particularly useful when a large number of

applications are generated and there are time and resource constraints.

Often application blanks require the applicants to provide information in an

unstructured way (i.e. “anything else you would like to mention” or “state in your

own handwriting why you wish to be considered for this post”, etc.). This gives a

very useful clue to the organising and presentation abilities of the applicant.

66

Sometimes the application blanks are designed with weightages assigned to various

items in the applicants blanks based on past experience. These are called weighted

application blanks.

Contents of application blanks: Though the information sought in applicant blanks

may vary according to the level of the position and the organisation, most application

blanks seem to contain the following kinds of information.

Personal data- name, date and place of birth, address sex and other identification

marks.

Marital data- whether married, number of children, whether spouse is working,

education of the spouse and children, other dependents, etc.

Physical data- height, weight, general health condition, whether physically

handicapped, etc.

Educational data- various levels of formal education, years, marks obtained,

distinctions, subjects taken, merit awards, scholarships, etc.

Employment data- past experience, years, position, company, salary, promotions,

professional courses attended, nature of duties, reasons for leaving previous jobs,

membership of professional bodies and associations.

Extra academic data- sports and games, NSS, NCC, level of efficiency achieved in

extra academic activities, prizes, hobbies and interest, pastime activities etc.

References- names of two or more people who can credentials by way of the

suitability of the candidate to the announced position.

Generally, they are ex-employees or ex-teachers, and the references consists of a

free-floating letter.

2. Interview

Interview is, perhaps, one of the most widely used method of selection. A survey by

Spriegeland James (1958) conducted on 236 firms in USA in 1930 and a second

survey by the same authors conducted on 852 firms in 1957 showed that 94 per cent

and 99 per cent organisations, respectively, used interview as a method of selection.

Unfortunately we do not seem to find a similar survey in the Indian context, but if

67

one talks to the representatives of ten organisations, chances are that nine out of ten

would be using interview as a method of selection.

Interview is one of the few situation where a candidate comes face-to-face with the

representatives of the organisation. It is, thus, seen as an interaction between the

interviewer and the applicant and a situation in which both participate. Tharp (1983)

explains the rationale of the interview process when he says, “Only through the

interview process can a manager gather sufficient data to be able to predict whether a

candidate will be successful in the position for which he or she is being considered.

A face-to-face interview has several advantages which are not otherwise available.

To an organisation it may provide a situation to verify certain information given in the

application blank.

There are certain areas where information can be sought only through interview. For

example. How does one evaluate the motivation and commitment. Or hopes and

aspirations.

In an interview setting the applicant also gets an opportunity to explain certain things

which he may not like to put on paper. Additionally, he can seek information on the

organisation, its future plans, his own growth prospects in the organization so as to

help him take a well informed decision.

Interview, provides an opportunity of two-way interaction facilitating the gathering

of complete information to take meaningful decisions.

Interview provides an overall picture of the applicant which comes as piecemeal when

other methods are used. A well conducted interview that puts the applicant at case and

provides an environment where the applicant can talk freely about himself, helps

generate information that would provide useful insight into the personality of the

applicant as a whole.

There are different methods of interviewing applicants. These methods vary according

to the purpose of interview and the nature of position for which the applicants are

interviewed.

3. Business Games

For positions where decision-making is the most important components, some

techniques are developed to assess the decision- making ability of the applicants.

68

These are called business games. Applicants for supervisory or managerial positions

are put in a simulated exercise of actual decision- making. A problem is provided to

them along with all the necessary information and constraints. The applicant is

asked to make a decision and the quality of this decision is judged by how well the

applicant has processed the information provided to him. One example of business

games is the “in-basket” techniques.

IN-basket technique for selecting managers was developed by Lopez (1966). It

consists of providing the applicant with background material on the organisation such

as its history, orgnaisation structure, operating procedurs, roles, financial data,

targets, and past achievement, etc. It helps to set the applicant in a more of less

realistic situation. Along with this information a set of problems are provided. In

basket is like an in-treay in an office where the incoming papers are placed. The

problems contained in the in-tray by way of memos, letters, and reports are related to

each other in some way and are also related to a master plan. The idea is that the

decision taken should be in consonance with the overall reality of the orgnaisaition

and should not be an isolated case (Jaffee, 1971_. Once the exercise is over the

applicants judgement and performance is evaluated. The applicant explains the

decisions that he took and why he took those decisions.

It is a powerful technique for selection, particularly for the managerial cadre and

provide insight into the applicant’s abilities and behaviour. However, the development

of such an exercise is time consuming. Often the exercise may not be taken seriously

by the participants; hence the behaviour may not be very spontaneous.

In the Indian context this excise is quite often practised but as part of interview. Here

the interviewer may provide a situation to the applicant and ask him to indicate what

he would do and why. However, as an independent selection tool its use has been

nominal.

4. Group Discussion

Another frequently used technique for the selection of supervisory and management

staff and particularly for management trainees in India is known as leaderless group

discussion or just group discussion. Before the individual, face-to-face, interview

takes place a group of applicants ranging from six to ten are either provided a

company situation or a topic on which they are allowed some times to discuss among

69

themselves. The discussion is preceded by a preparation time which provides an

opportunity to the applicants to think of the subject matter and evolve strategy of

making their contribution.

Group discussion are generally unstructured. There are no predetermined

expectations of who will perform what role seen is how the group takes its shape,

what is this shape, and who has contributed most to this. Depending upon the job

expectation a variety of things could be examined. Generally, the quality of content,

its delivery time management, interpersonal competence, and behaviour in the group

are assessed. The assessment is done by more than one person who are also members

of the interview panel. These assessments are done independently.

Since the assess are also members of the interview panel, it provides them an

opportunity to follow up certain points during the face-to-face interview. This

method is extremely useful as its generates some very useful data on the behaviour,

personality, and leadership qualities in the group . It is time saving as six to ten

applicants can be observed simultaneously. However, the assessors have to be careful

because vocal applicants with better schooling may score better because of their

delivery. Hence emphasis should be placed on content and general behaviour.

Physical Examination

This, as a method of selection, is most useful where physical strength is most

important or where physically handicapped are employed. Other than providing a

sound, hygienic environment and legally protecting the organisation, there does not

seem to be any other reason why physical examination should be undertaken.

SELECTION DECISION

Calhoon (1967) defines selection as a two-way decision making process in which both

the organisation and the applicant match talent with requirements of the job. While we

may not be so much concerned with the decision-making process of the applicant, a

closer look has to be taken to see how and why an organisation takes the final

selection decision.Monappa and Saiyadain (1979) have identified four methods of

taking selection decision when multiple methods are involved.

70

1. Multiple Hurdle

As the name suggests the decision is sequentially taken. Each method of selection is

sequenced as a scale of importance and in each case a minimum performance is

predetermined. All the methods of selection are hurdles that have to be crossed till the

applicant competes the last hurdle. An applicant must score above the minimum

score in the first hurdle before he goes to the second. Similarly, he must get the

minimum score before he goes to the third and so on till he has crossed all the hurdles.

One significant advantage of this technique is that at every stage the number of

applicants is reduced. In other worlds, there is a progressive reduction in the number

of applicants and this also reduces the cost of selection. However, it has the danger of

losing some capable applicants on earlier hurdles because either the cut-off on these

hurdles was arbitrarily set or due to psychological factors the applicants could not

perform well.

2. Profile matching

This method has elements of multiple hurdles because first, a profile of a successful

employee has to be developed. The technique to develop such a profile is the same as

identifying the cut-off score. Once the cut-0off score of the average successful

employee is ready this can be used against fresh applicants to see who comes closest

to the profile. The most important point in this technique of taking selection decision

is the proximity with the ideal profile. A is the ideal profile on a variety of selection

methods, B and C are the profiles of two applicants.

The proximity in case of B and C with A is calculated by s using the statistical

technique of correlation of coefficient. If we calculate the coefficient, we will find a

higher relationship between A and B than A and C, although the profile of C

happens to be on much higher levels than the ideal profile. In terms of decision B

would be the most suited applicant than C despite the fact B has scored less on

interview and application rating when compared to the ideal. C scored better on all

counts and yet would not be selected. The logic is simple. A successful employee

does not have to be the one who has done exceptionally well on all the selection than

another. Hence, his contribution may be good to begin with but may not sustain long.

This is true of all high fliers in the organisation. They soon start believing that every

rule, instruction, policy, etc. is designed to frustrate them and hence lose motivation.

71

3. Multiple cut off

The multiple cut off technique the applicant has to score above the ideal on all the

methods of selection. Unless an applicant scores above the ideal on all the

components of selection he cannot be considered for selection.

The major problem of this technique is that a simple addition of all the scores above

the ideal does not help in ranking the applicants. One may score better than the other

on a given segment and yet it is possible to get the same total as the other because of

variations elsewhere. Sometimes this problem is solved by giving weightages to each

segment, multiplying weightages with the raw scores for each segment, and then

adding them to get a single total. To some extent this takes care of the intersegment

variations. However, developing weightages for each segment is a time consuming

exercise and requires a number of statistical exercises in advance.

4. Multiple Regression

An efficient way of taking care of the problem discussed in multiple cut- off is to use

multiple regression model which has a built-in facility of taking into consideration the

relative contribution of all the segments. Readymade computer packages are already

available and all one needs to do is to feed the selection data in the computer. This

technique assumes that each score on the selection method is linearly related to the

performance score and that selection scores have compensatory power. In other

words, high score in one makes up for the low score in the other. This technique is

mathematically very elegant but unfortunately is not practised quite often in selection.

C

A

C

A

Application Rating Score

Test

Score

Group Discussion Interview

Score

72

Chapter-4.0

DATA ANALYSIS

Ql ) . Do you think service working conditions in the corporation are?

a) Excellent b) Very Good

c) Good d) Poor

73

Q2). Chances of career upliftment in the corporation?

a)Excellent b)Very Good

c) Good d)Poor

74

Q3). Would you like to switch over to the other organization n the near future, if

offered?

a) Yes b) No

75

Q4). Are you satisfied with the transfer/promotion Policy in the Corporation?

a) Yes b) No

76

Q5). Do you think promotion chances are equal in all cadres & at all levels?

a) Yes b) No

77

Q6) .Pay & allowances & other benefits including Perks in the corporation as

compared to other public undertakings?

a) Excellent b) Very Good

c) Good d) Poor

78

Q7).What is your major concern when considering transfer on promotion or

otherwise ?

a Age

b. Family Obligation

c. Financial burden due to double base

d. Job Satisfaction

e Promotion prospects

79

Q8.Number of Promotions &transfer availed during service?

Promotion Transfer

1 1

2 2

3 3

4 4

5 5

80

Q9) Do you think VRS should be offered once again in the corporation?

a) Yes b) No

81

Ql0) Do you think VRS is another form of downsizing?

a) Yes b) No

82

Q11) Would you like to opt for VRS if offered in the future?

a) Yes b) No

83

Q12)Work distribution among employees is according to their skill & job

knowledge?

a) Yes b)No

84

Q13)Do you feel Job Satisfaction with your present working conditions?

a) Yes b)No

85

Q14) Do you feel there is excess man power in the corporation?

a) Yes b)No

86

Q15).Have you ever experienced any lacuna .inconsistency or anomaly in the

service rules in the corporation?

a) Yes b)No

87

Ql 6)All employees are treated at par by management while granting

benefits/perks?

a) Yes b)No

88

Q17) Is Union association in the corporation to watch interest of the employees?

a) Yes b)No

89

Chapter-5.0

CONCLUSIONS & SUGGESTIONS

Conclusions

The employees are generally satisfied with the working conditions in the

Corporation

Chances of career growth are low in the corporation.

The employees of the Corporation are not satisfied with the HR policies and

their implementation in practice at different hierarchical levels and feel a need

for the policies to be changed with time

Most of the employees have expressed discontent over the functioning and

role of the existing trade unions in protecting the interests and working for the

welfare of the employees of the corporation and in encouraging the active

participation of employees in the activities of the management in general.

The employees are generally satisfied with the transfer policies in the Param

Switch and Gear Ltd.

The level of motivation in the employees regarding work is low.

.The above information is based on the analysis of the questionnaires filled by

a sample of employees in the Corporation Headquarters’ various departments.

Getting high quality job performance from your employees depends on giving

employees opportunities for their personal growth, achievement,

responsibility, recognition, and reward.

Once the compensation (pay and benefits) is established properly, it is

necessary to use other means to further motivate and improve your work

force's output. The basis of all job enhancement efforts is your recognition of

employees' desire to do good work, to assume responsibility, to achieve and to

succeed.

The tailoring of benefits to satisfy specific needs is part of the quality of work

life technique. It is a way to maximize the amount of labor costs going to the

employee and to maximize your return on these costs without increasing

across-the-board expenses. By making a special effort to satisfy individual

employee needs, you reinforce the motivational value of the flexible benefit.

At the same time you have improved the worker's skills and shown

recognition of the worker's value and aspiration. A tailored benefit can be

90

worth as much to an employee as a pay raise. Such a benefit is practical

because

(1) it probably costs no more than worker unrest and diminished productivity

and

(2) it is probably less costly than a comparable pay increase.

Suggestions

Offer rewards and recognition to employees who earn degrees or job related

certifications along with the job. Also Promotion to be based on performance

and education both.

Increase support of education benefits, including more tuition reimbursement.

Cab routing is one of the major problems faced by the employees especially

female employees. Hence there should a proper working help line for cabs and

the routing should not be such that it takes more than the required time.

In order to reduce the stress level, various on-the-floor activities should be

introduced. The nature of work being a team effort special consideration

should be given to team building games & role plays which will not only act

as a stress buster but will also help in building relationship with supervisors.

There need to be some changes in the non-monetary incentives, which are

provided to employees. Since the workforce comprises mostly of age group

between 20-30, thus the incentives like movie tickets, gift vouchers, discount

coupons, pizza party etc should be introduced.

Loyalty bonus or incentives can be introduced for those employees who stay

with the company for 2 years or more. Moreover, if introduced, these should

be given quarterly.

Operation and Floor Managers should be asked to ensure that:

Adequate resources and workstations are made available so that agents

can complete the pending work and solve cases.

Breaks should be included in the roster so that no workstation remains

vacant during shift hours.Focus more attention on orientation,

including providing realistic job previews for candidates for high

turnover jobs like the CSR. Develop follow-up meetings six months

after initial orientation.

91

Hold managers accountable for retention efforts by making it part of their

performance plans.

Since the exit interviews do not show the true picture of the reasons for

attrition, this job can be outsourced so that actual reasons can be known.

Timely performance appraisal should be done.

Reimbursement of official expenses particularly Phone Bills.

Supervisors’ involvement in career development in synchronization of

interests and temperaments of employees.

Apart from company sponsored training and seminars some other educational

courses or seminars to be conducted so as to help them in their future career,

which is at the same time supported by their qualification. This will not be

beneficial for the career development but will also be a tool to prevent

employee attrition.

92

APPENDICES

QUESTIONNAIRE

Name:

Designa

tion

Phone

no:

Ql ). Do you think service working conditions in the corporation are:

a)Excellent b)Very Good

c) Good d) Poor

Q2). Chances of career upliftment in the corporation?

a)Excellent b)Very Good

c) Good d)Poor

Q3). Would you like to switch over to the other organization n the near future, if

offered?

a) Yes b) No

Q4). Are you satisfied with the transfer/promotion Policy in the Corporation?

a) Yes b) No

Q5). Do you think promotion chances are equal in all cadres & at all levels?

a) Yes b) No

Q6). Pay & allowances & other benefits including Perks in the corporation as

compared to other public undertakings?

a) Excellent b) Very Good

c) Good d) Poor e) Equal

Q7). What is your major concern when considering transfer on promotion or

otherwise?

a Age b. .Family Obligation

c. .Financial burden due to double base d. Job Satisfaction

e Promotion prospects

93

Q8 Number of Promotions &transfer availed during service?

Promotion Transfer

1 1

2 2

3 3

4 4

5 5

Q9) Do you think VRS should be offered once again in the corporation?

a) Yes b) No

Ql 0) Do you think VRS is another form of downsizing?

a) Yes b) No

Q11) Would you like to opt for VRS if offered in the future?

a) Yes b) No

Q12) Work distribution among employees is according to their skill & job

knowledge?

a) Yes b)No

Q13) Do you feel Job Satisfaction with your present working conditions?

a) Yes b)No

Q14) Do you feel there is excess man power in the corporation?

a) Yes b)No

Q15). Have you ever experienced any lacuna .inconsistency or anomaly in the

service rules in the corporation?

a) Yes b)No

Ql 6) All employees are treated at par by management while granting

benefits/perks?

a) Yes b)No

Q17) Is Union association in the corporation to watch interest of the employees?

a) Yes b)No

94

BIBLIOGRAPHY

Newspaper clippings (Regular Articles on Current HR Trends in HT Power

Jobs section of Hindustan Times)

The Business Today experimental guide to Managing Workforce (special

fourth anniversary issue of Business Today)

Reference Books:

DeCENZO A. DAVID & ROBBINS P. STEPHEN, Personnel/ Human

Resource Management, Third Edition, Prentice-Hall India

Kandula R. Srinivas, Human Resource Management in Practice (with 300

Models, techniques and tools), Prentice-Hall India

Armstrong Michael, Murlis Helen – Reward Management: A Handbook of

Remuneration strategy and Practice (Fifth Edition), Published by Kogan Page,

Page No: 3, 9, And 27.

Jacobs Barry – People, Performance, Profit, Published by Montogomery Research

(June 1, 2005), Page No: 28, 42, 48, 56

Martin Graeme, Hetrick Susan – Corporate Reputations, Branding and People

Management: A Strategic Approach to HR, Published by Butterworth –

Heinemann (August 18, 2006), Page No: 28, 30, 36, 37, 112

WEB:

http://www.employment-studies.co.uk/summary/summary.php?id=408

http://www.isrinsight.com/Solutions/engagement.aspx

http://www.ndplonline.com/home/people.html

http://www.standardchartered.com/in/

http://www.airtelcellular.com

http://www.conferenceboard.ca/documents.asp?rnext=1831

ARTICLES:

Masarech Ann Mary, Enthused and in gear ... Ingredients for employee

engagement, Canadian Manager, Published by Canadian Institute of

Management dated on December 22, 2004, Page No: 18

95