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1 INTRODUCTION
1.1 Company Profile
Bharti Airtel was formerly known as Bharti Tele-venture Limited (BTVL) is India’s largest GSM
mobile operator with more than 100 million mobile subscribers as of 1-06 -2012. It also offers fixed line
services and broadband services. It offers its mobile services under the Airtel brand and is headed by
Sunil Mittal. It has submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. It is called I2I.
Airtel is the third largest mobile operator in the world in terms of subscriber base and has a commercial
presence in 20 countries and the Channel Island.
Industry recognitions
Airtel was ranked the number 1 service brand and number 3 in the overall ranking in the annual brand
equity’s most trusted brands survey 2011.Airtel has been consistently awarded for its world class
network infrastructure and services. Airtel’s achievements- “best carrier India award” ,”best global
wholesale carrier” and “best telecommunication transformation award by telecom world and Asia
awards.
Airtel owns globally renowned recognitions for quality, processes and information security management
system (isms). Certifications: TL9000, ISO 9001-2000, ISO 27001, ISO20000 ITMS
Airtel is the first GOLD CERTIFIED CISCO TELECOM PARTNERS AND ONE OF THE LARGEST
MSCP PARTNER.
Its area of operations includes:
The Indian Subcontinent:
o Airtel Bangla, in Bangladesho Airtel, in Indiao Airtel Sri Lanka, in Sri Lanka
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o Airtel Africa which operates in 17 African countries:
Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia.
The British Crown Dependency islands of Jersey and Guernsey, under the brand name Airtel - Vodafone, through an agreement with Vodafone.
Airtel operates in the following countries:
Country Site Remarks
BangladeshAirtel Bangladesh
Airtel Bangladesh had about 5.1 million customers at the end of June 2011
Burkina Faso
Airtel Burkina Faso
Airtel Burkina Faso is the dominant player with 1,433,000 customers representing 50% market share
Chad Airtel ChadAirtel Chad is the #1 operator with 69% market share.
Democratic Republic of the Congo
Airtel DRCAirtel is the market leader with almost 5 million customers at the end of 2010.
Gabon Airtel GabonAirtel Gabon has 829,000 customers and its market share stood at 61%.
Ghana Airtel GhanaAirtel Ghana had about 1.76 million customers at the end of 2010.
India AirtelAirtel is the market leader with almost 152.5 million customers at the end of 2010.
Kenya Airtel KenyaAirtel Kenya is the second largest operator and has 4 million customers.
MadagascarAirtel Madagascar
Airtel holds second place in the mobile telecom market in Madagascar, has a 39% market share and over 1.4 million customers.
Malawi Airtel MalawiAirtel Malawi is the market leader with a market share of 72%.
Niger Airtel NigerAirtel Niger is the market leader with a 68% market share.
Rep of Congo Airtel Congo Airtel Congo is the leader with a 55%market share.
Rwanda Airtel Rwanda Airtel launched services in Rwanda on 30 March 2012.
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Seychelles
Airtel Seychelles
Airtel is the leading comprehensive telecommunications services providers with over
55% market share of mobile market in Seychelles.
Sri Lanka
Airtel Sri Lanka
Airtel Sri Lanka commenced operations on 12 January 2009. It had about 1.8 million mobile customers at the end of 2010.
TanzaniaAirtel Tanzania
Airtel Tanzania is the market leader with a 38% market share.
Uganda Airtel UgandaAirtel Uganda stands as the #2 operator with a market share of 38%.
Zambia Airtel ZambiaChannel Islands : Jersey and
Guernsey†
Airtel Vodafone
Airtel operates in the Channel Islands under the brand name Airtel–Vodafone through an
agreement with Vodafone.
Jersey and Guernsey are British Crown Dependencies. They are not independent countries. Therefore, Airtel’s country of operation is considered to be 19.
Mobile
Airtel has nationwide presence, and is the 6th most valued brand according to an annual survey
conducted by Brand Finance and The Economic Times in 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 in 2008 by Airtel and Vodafone. However, high prices and
contract bonds discouraged consumers and it was not as successful as the iPhone is in other markets of
the world. The Apple iPhone 4 was introduced on May 27, 2011 by Airtel and Aircel.
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3G
On May 18, 2010, 3G spectrum auction was completed and Airtel will have to pay the Indian
government 122.95 billion (US$ 2.45 billion) 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 (east), Rajasthan, West Bengal, Himachal Pradesh,
Bihar, Assam, North East, and Jammu & Kashmir Airtel also operates 3G services in Maharashtra, Goa,
Kanpur and Kolkata through an agreement with Vodafone and in Gujarat through an agreement with
Idea This gives Airtel a 3G presence in 15 out of 22 circles in India.
On September 20, 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 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.
On January 24, 2011, Airtel launched 3G services in Bangalore Karnataka its largest circle by revenue.
With this launch, Airtel became the third private operator (fifth overall) to launch its 3G services in the
country following Reliance Communications and Tata ( Docomo).On January 27, 2011, Airtel launched
3G in Chennai and Coimbatore.
On July 27, 2011 Airtel launched 3G in three major cities in Kerala (Trivandrum, Cochin and Calicut).
Airtel plans to cover 1,500 cities across 13 circles by the end of March 2012. The company, which has
3G licences for 13 circles, is also in talks with other service providers to roll out the services in the
remaining 10 circles as part of its roaming offerings.
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4G
On 19 May 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Airtel
paid 33.1436 billion for spectrum in 4 circles: Maharashtra, Karnataka, Punjab and Kolkata. The
company was allocated 20 MHz of BWA spectrum in 2.3 GHz frequency band.
Airtel's TD-LTE network is built and operated by ZTE in Kolkata, Huawei in Karnataka, Ericsson in
Punjab and Nokia Siemens Networks in Maharashtra.
On 10 April 2012, Airtel launched 4G services using TD-LTE technology in Kolkata, becoming the first
company in India to offer 4G services. Airtel launched 4G in Bangalore on 7 May 2012. It will launch
services next in Pune and Chandigarh.
Airtel Money
Airtel has started a new m-commerce platform called Airtel Money with collaboration with Infosys. It is
launched on April 5th 2012, in Infosys Campus of Bangalore. Now with the help of Airtel money, users
can transfer money, pay bills and other financial transactions using mobile phone.
1.2 Definition and purpose of the project
The purpose of this project is to find out the various B2B target audience for the data products Manage
ILP (Internet Lease Port) and pitch them a sales call regarding the same which ultimately lead to sell
along with collecting information of their current Internet plan to which they are subscribe to.
1.3 Scope and objectives of the project :
The company wants to know that by adding value added services to existing services one can improve
customer satisfaction and customer loyalty. The study also brings out the clear picture of customers
perception regarding Manage ILP. The objective of company is to make its products and services visible
to B2B customers and gather information of post-paid services used by company for non-Airtel plan.
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1.4 Salient Contributions of the project:
If are successful in finding potential customer of our product during our project than it will contribute
to company income.
1.5 Product line which we were told to cover in project:
ILP :( Internet lease Port)
ILP is simple, private and dedicated high speed internet connectivity to customer premise, ensuring
high up times and low latency. Internet bandwidth is delivered to our customer through wired/wireless
last mile access. Airtel Point of Presence (POP) is connected to the customer’s premise over Airtel
owned and operated wired lease line last mile. In case wired medium is not feasible at a particular
location the bandwidth can also be delivered through WI-Max) (wireless last mile).The SLA
commitments are on the end link which ensures the desired levels of service availability to the
customers at all time. Symmetric bandwidth means equal upload and download capacity of the link. If
the customers buy 1 Mbps symmetric Internet Bandwidth he gets 1 Mbps Upload and 1Mbps download
capacity. In case of asymmetric bandwidth the customer can get cost advantage by changing the 1:1
ratio between upload and download capacities.
Why Airtel internet?
Largest integrated private class a telecom service provider with pan India footprint.
Fully integrated player offering end to end solutions
Comprehensive service portfolio across voice (fixed line and mobility), data and enterprise solutions.
Extensive international optical fibres network, connecting over 50 countries and 5 continents with POP’s in USA, Europe, India & APAC for full control on IP traffic.
24*7 customer care & support.
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Wireless data –internet MPLS, NLD IPLC, VSAT ,Clod Computing
3G Dongles & Black berry services
Audio video conferencing.
Features
ILP enables organizations to connect users on their LAN, simultaneously to internet.
Symmetric internet access: ILP delivers guaranteed bandwidth 100% uplink and downlink
Highly secure internet access medium.
Supports application such as e-commerce, web application, ERP and video conferencing solutions.
Useful for businesses that use internet servers for commercial and business activities.
ILP can also be utilized to transfer large amount of data over the internet. Duly signed service level agreements to ensure high performance
Airtel Advantage: reliability
Class A ISP having PAN India presence offers direct connectivity across geographies.
Multiple output interface options available, fast Ethernet G.703 and V.35
International connectivity through two different routes: transatlantic and Trans – pacific, for best route provisioning ensures high uptimes and lower latency.
Reach
More than 120 POPs in strategic business locations
Local loop agnostic (lease line/radio/V-sat/ Wi-Max)
Manage ILP :( Internet Lease Port)
Manage ILP is a pro active network in which we provide customer Cisco routers and which 24/7
communicate with Airtel ISP about user experience as per SLA promised if any packet loss, bandwidth
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related problem or internet connecting wire from outside i.e. outside customers premises is damage is
detected than Airtel comes to know about the problem first before customers facing the problem itself.
We have response time of 2 hour.
Leased Line:
Leased lines (or private lines) are point-to point dedicated circuits, provided on Airtel National
Long Distance Backbone.
In today’s communication dependents environment, it is not enough to be connected but also to stay
connected. Business continuity is fast becoming a must have for every Enterprise client. A permanent
telephone connection between two points set up by a telecommunications common carrier. Typically,
leased lines are used by businesses to connect geographically distant offices. Unlike normal dial-up
connections, a leased line is always active. The fee for the connection is a fixed monthly rate. The
primary factors affecting the monthly fee are distance between end points and the speed of the circuit.
Because the connection doesn't carry anybody else's communications, the carrier can assure a given
level of quality.
For example, a T-1 channel is a type of leased line that provides a maximum transmission speed of
1.544 Mbps. You can divide the connection into different lines for data and voice communication or use
the channel for one high speed data circuit. Dividing the connection is called multiplexing.
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PRI:
The Integrated Services Digital Network (ISDN) prescribes two levels of service, the Basic Rate
Interface (BRI), intended for the homes and small enterprises, and the Primary Rate Interface (PRI), for
larger applications. Both rates include a number of B-channels and a D-channel. Each B-channel carries
data, voice, and other services. The D-channel carries control and signaling information. The Basic Rate
Interface consists of two 64-kbit/s B-channels and one 16-kbit/s D-channel.
The Primary Rate Interface (PRI) consists of 23 64-kbit/s B-channels and one 64-kbit/s D-channel using
a T1 line, often referred to as "23B + D", (North American and Japanese standard) or 30 B-channels and
one D-channel using an E1 line (Europe/rest of world). A T1 Primary Rate Interface user would have
access to a 1.472-Mbit/s data service. An E1 Primary Rate Interface user would have access to a 1.920
Mbit/s data service Larger connections are possible using PRI pairing. A dual PRI could have 24+23=
47 B-channels and 1 D-channel (often called "47B + D"), but more commonly has 46 B-channels and 2
D-channels thus providing a backup signaling channel. The concept applies to E1s as well and both can
include more than 2 PRIs. Normally, no more than 2 D-channels are provisioned as additional PRIs are
added to the group.
Increasingly, leased lines are being used by companies, and even individuals, for Internet access because
they afford faster data transfer rates and are cost-effective if the Internet is used heavily.
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2 LITERATURE REVIEW
Online journal for Bharti Airtel performance
July 23, 2009,
Bharti Airtel's results tell a different story, based on whether you compare it with the previous quarter or
June 2008. Its performance seems to have improved compared to March but has deteriorated when
compared to a year ago. It does appear that Bharti's operating performance in 2009-10 will be lower,
compared to the previous year.
Bharti Airtel's cost of doing business went up sharply, lowering its operating profitability during the
quarter. If the telecom major still reported a sharp jump in its net profits, it was primarily due to non-
operating income. But its core business of providing mobile services is doing extremely well, with the
other businesses like telemedia, enterprise services and others like DTH
.
Highlights
Comparisons has been done with June 2008 quarter, using US GAAP Financials. Wherever previous
quarter financials have been used, it is mentioned separately .
Bharti Airtel’s sales during the June 2009 quarter rose by 17.2% to Rs 9,942 crore, with services income
rising by 16%. Overall sales grew by 1.2% over the previous quarter. Net profit increased by 25% to Rs
2,565 corer.
The telecom company's operating expenditure has undergone change, chiefly due to higher license fees
(up 19%), sharply higher network costs (up by 47.4%) and employee costs (up by 17%), thereby
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nullifying the effect of lower access charges (down by 8%). On the positive side, while expenses are up
by 19% over last year's level, it is down by 4% compared to the previous quarter. Depreciation has also
shot up sharply, up by 40%, due to higher capital expenditure. During June 2009, capex was Rs 2,709
crore and the balance sheet figure of property and equipment has increased by 22% as of June 2009,
over last year.
Revenues from mobile services have increased by 19% while segment profit increased by 23%. This is
the biggest segment, contributing to 83% of sales. But revenues from the second biggest segment,
enterprise services grew by only 8% but still managed to grow segment profit by 18%. In telemedia
services, revenues grew by 7% but segment profits declined by 10%.
But among segments, its new businesses have been running up losses, mainly on the DTH front. It
incurred a segment loss of Rs 278 crore in 'others', which pulled down margins.
On the business front, net additions to mobile subscribers grew by 2% over the March 2009 quarter. But
the mobile subscriber base has increased by 9% on a sequential basis. In line with past trends, Bharti's
average revenue per user has been going down. The decline is quite severe in the June 2009 quarter, at
Rs 278 per user compared to Rs 305 in the previous quarter and Rs 350 a year ago. The composition of
Bharti's incremental subscriber base is largely coming from non-census towns, which could explain why
the per user revenue is headed down. The company's non voice revenue in mobile services contributed
9.3% to revenues, same as the previous quarter.
The company has been pointing towards strong volume growth as an indicator of the strength of its
business. Mobile minutes grew by 34% during the quarter while total minutes billed grew by 31%.
Telemedia services saw a decline in volumes.
In sum, Bharti's profitability during the quarter has been affected by higher costs and depreciation
though this was visible in the March 2009 quarter too. Its operating profit grew by 17% but depreciation
costs took away nearly 9 percentage points off that growth. Still, a sharp jump in interest income (as
defined by Bharti) due to derivative income and exchange fluctuations, contributed to a 25% increase in
net profit.
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The market was not sure of how to react to its results. The stock went down from its previous close of
Rs 814, to a low of Rs 795 and from there settled higher at Rs 823, down 1%. The company had
indicated a capex plan of $2.2bn for 2009-10, and that will keep up the pressure on its depreciation
outgo. If the derivative income and exchange fluctuations are not around, the pressure will reflect in its
net profits as well
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Competitor
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Reliance: Reliance’s end to end leased line is delivered through its state of the art optical fibre network
with its unique self- healing survivable architecture. Unlike Airtel reliance do not use Semewe 4 it uses
flag which have its own advantage and dis-advantage. Advantage is that flag is fully owned by reliance
and reliance do not have to share with other ISP. Disadvantage is that if flag fails than reliance do not
have any other alternative connection .In case of any problem with Semewe 4 there is a bake up of
Semewe 3.
Tata: It is Airtel ‘s largest competitor and have high market share it has some tie up with BSNL so
while doing sales pitch they try to convince customer that some of their line is used by BSNL is of
Tata. They are aggressive competitor.
Tata own and operate its own network of globe-spanning terrestrial and subsea cables. Tata reach
the major business and financial canters worldwide, as well as over 100 locations in India and counting.
Customer gets a seamless network from a single global service provider, with the capacity and
flexibility to meet customers’ needs.
Tata will work with customer to develop an access package that can grow seamlessly as your
business evolves. Tata partnership capabilities include fast provisioning, end-to-end or customized
SLAs, and an active build plan that increases our coverage every week.
MTNL: Mtnl customer are loyal to Mtnl those who are not facing any problem with it. Main advantage
of Mtnl is that it’s locally present of telecom engineer. If any problem associated with Mtnl happens
than they have their contact number of that local engineer, so a sense of trust is developed in
organization using DSL of Mtnl.
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TELECOM INDUSTRY
The telecom sector has been one of the fastest growing sectors in the Indian economy in the past 4
years. This has been witnessed due to strong competition that has brought down tariffs as well as
simplification of policy environment that has promoted healthy competition among various players.
The mobile sector alone has been growing rapidly and has emerged as the fastest growing market in
the whole worlds. Currently of a size nearing 70 million (GSM and CDMA), this sector is expected to
reach a size of nearly 200 million subscribers by financial year 2008.
The government has eased the rules regarding inter circle and intra circle mergers. This has led to a
slew of mergers and acquisitions in the recent past. Also as the sector is moving closer to maturity,
further consolidation is a reality and this will lead to the survival of more profitable players in this
segment
In order to further promote the use of Internet in the country the government is taking proactive
steps to develop this sector with the help of the various players in this segment.
For this purpose, the use of broadband technology is being mooted and this will go a long way in
improving the productivity of the Indian economy as well as turn out to be the next big opportunity for
telecom companies after the mobile communications segment Non-voice services and VAS are the gold
mines. The big takeoff is expected with the rollout of 3G services in early 2007, once the spectrum
issues are sorted out.
Internet users base fast reaching near the English speaking population base. Local language and
content required for further growth. Infrastructure equipment cost is down to a fraction of what
prevailed just a few years ago.
Operators can plan better expansion plan now Increased viability for the operators to expand to
semi-urban and rural markets, hence, accelerate growth further. It’s not without reason that India is
tipped to be the world’s third-largest economy by 2050! No wonder if it happens much earlier. Investors
can look to capture the gains of the Indian telecom boom and diversify their operations outside
developed economies that are marked by saturated telecom markets and lower GDP growth rates.
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At a time when global telecom majors are struggling to cope with their losses and the rollout of 3G
networks, which has been a non-starter for close to a year now; India, with its telecom success story,
represents an attractive and lucrative destination for investment.
Indian Telecom Sector
The telecom services have been recognized the world-over as an important tool for socio-
economic development for a nation. It is one of the prime support services needed for rapid growth and
modernization of various sectors of the economy. Indian telecommunication sector has undergone a
major process of transformation through significant policy reforms, particularly beginning with the
announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999.
Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in
the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a
big leap in the future also.
Status of Telecom Sector
The Indian Telecommunications network with 621 million connections (as on March 2010) is the third
largest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growth
is possible due to various proactive and positive decisions of the Government and contribution of both
by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by
liberal policies of the Government that provides easy market access for telecom equipment and a fair
regulatory framework for offering telecom services to the Indian consumers at affordable prices.
Presently, all the telecom services have been opened for private participation. The Government has
taken following main initiatives for the growth of the Telecom Sector:
Liberalization
The process of liberalization in the country began in the right earnest with the announcement of the New
Economic Policy in July 1991. Telecom equipment manufacturing was de-licensed in 1991 and value
added services were declared open to the private sector in 1992, following which radio paging, cellular
mobile and other value added services were opened gradually to the private sector. This has resulted in
16
large number of manufacturing units been set up in the country. As a result most of the equipment used
in telecom area is being manufactured within the country. A major breakthrough was the clear
enunciation of the government’s intention of liberalizing the telecom sector in the National Telecom
Policy resolution of 13th May 1994.
National Telecom Policy 1994
In 1994, the Government announced the National Telecom Policy which defined certain important
objectives, including availability of telephone on demand, provision of world class services at
reasonable prices, improving India’s competitiveness in global market and promoting exports, attractive
FDI and stimulating domestic investment, ensuring India’s emergence as major manufacturing / export
base of telecom equipment and universal availability of basic telecom services to all villages. It also
announced a series of specific targets to be achieved by 1997.
Telecom Regulatory Authority of India (TRAI)
The entry of private service providers brought with it the inevitable need for independent regulation.
The Telecom Regulatory Authority of India (TRAI) was, thus, established with effect from 20th
February 1997 by an Act of Parliament, called the Telecom Regulatory Authority of India Act, 1997, to
regulate telecom services, including fixation/revision of tariffs for telecom services which were earlier
vested in the Central Government.
TRAIs mission is to create and nurture conditions for growth of telecommunications in the country in
manner and at a pace, which will enable India to play a leading role in emerging global information
society. One of the main objectives of TRAI is to provide a fair and transparent policy environment,
which promotes a level playing field and facilitates fair competition. In pursuance of above objective
TRAI has issued from time to time a large number of regulations, orders and directives to deal with
issues coming before it and provided the required direction to the evolution of Indian telecom market
from a Government owned monopoly to a multi operator multi service open competitive market. The
directions, orders and regulations issued cover a wide range of subjects including tariff, interconnection
and quality of service as well as governance of the Authority.
The TRAI Act was amended by an ordinance, effective from 24 January 2000, establishing a
Telecommunications Dispute Settlement and Appellate Tribunal (TDSAT) to take over the adjudicatory
and disputes functions from TRAI. TDSAT was set up to adjudicate any dispute between a licensor and
17
a licensee, between two or more service providers, between a service provider and a group of
consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI.
New Telecom Policy 1999
The most important milestone and instrument of telecom reforms in India is the New Telecom Policy
1999 (NTP 99). The New Telecom Policy, 1999 (NTP-99) was approved on 26th March 1999, to
become effective from 1st April 1999. NTP-99 laid down a clear roadmap for future reforms,
contemplating the opening up of all the segments of the telecom sector for private sector participation. It
clearly recognized the need for strengthening the regulatory regime as well as restructuring the
departmental telecom services to that of a public sector corporation so as to separate the licensing and
policy functions of the Government from that of being an operator. It also recognized the need for
resolving the prevailing problems faced by the operators so as to restore their confidence and improve
the investment climate.
Key features of the NTP 99 include:
Strengthening of Regulator.
National long distance services opened to private operators.
International Long Distance Services opened to private sectors.
Private telecom operators licensed on a revenue sharing basis, plus a one-time entry fee. Resolution of
problems of existing operators envisaged.
Direct interconnectivity and sharing of network with other telecom operators within the service area
was permitted.
Department of Telecommunication Services (DTS) corporatized in 2000.
Spectrum Management made transparent and more efficient.
All the commitments made under NTP 99 have been fulfilled; each one of them, in letter and spirit,
some even ahead of schedule, and the reform process is now complete with all the sectors in
telecommunications opened for private competition.
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National Long Distance
National Long Distance opened for private participation. The Government announced on 13.08.2000 the
guidelines for entry of private sector in National Long Distance Services without any restriction on the
number of operators. The DOT guidelines of license for the National Long Distance operations were
also issued.
Highlights - NLD Guidelines
Total foreign equity (including equity of NRIs and international funding agencies) must not exceed
74%. Promoters must have a combined net worth of Rs.25 million.
Private operators will have to enter into an arrangement with fixed-service providers within a circle for
traffic between long-distance and short-distance charging centers.
Seven years time frame set for rollout of network, spread over four phases. Any shortfall in network
coverage would result in encashment and forfeiture of bank guarantee of that phase.
Private operators to pay one-time entry fee of Rs.25 million plus a Financial Bank Guarantee (FBG) of
Rs.200 million. The revenue sharing agreement would be to the extent of 6%.
Private operators allowed to set up landing facilities that access submarine cables and use excess
bandwidth available.
License period would be for 20 years and extendable by 10 years.
International Long Distance
In the field of international telephony, India had agreed under the GATS to review its opening up in
2004. However, open competition in this sector was allowed with effect from April 2002 itself. There is
now no limit on the number of service providers in this sector. The licence for ILD service is issued
initially for a period of 20 years, with automatic extension of the licence by a period of 5 years. The
applicant company pays one-time non-refundable entry fee of Rs.25 million plus a bank guarantee of
Rs.250 million, which will be released on fulfillment of the roll out obligations. The annual license fee
including USO contribution is @ 6% of the Adjusted Gross Revenue and the fee/royalty for the use of
19
spectrum and possession of wireless telegraphy equipment are payable separately. At present 24 ILD
service providers (22 Private and 2 Public Sector Undertaking) are there. As per current roll out
obligations under ILD license, the licensee undertakes to fulfill the minimum network roll out
obligations for installing at least one Gateway Switch having appropriate interconnections with at least
one National Long Distance service licensee. There is no bar in setting up of Point of Presence (PoP) or
Gateway switches in remaining location of Level I. Preferably, these PoPs should conform to Open
Network Architecture (ONA) i.e. should be based on internationally accepted standards to ensure
seamless working with other Carriers Network.
Universal Service Obligation Fund
Another major step was to set up the Universal Service Obligation Fund with effect from April 1, 2002.
An administrator was appointed for this purpose. Subsequently, the Indian Telegraph (Amendment) Act,
2003 giving statutory status to the Universal Service Obligation Fund (USOF) was passed by both
Houses of Parliament in December 2003. The Fund is to be utilized exclusively for meeting the
Universal Service Obligation and the balance to the credit of the Fund will not lapse at the end of the
financial year. Credits to the Fund shall be through Parliamentary approvals. The Rules for
administration of the Fund known as Indian Telegraph (Amendment) Rules, 2004 were notified on
26.03.2004.
The resources for implementation of USO are raised through a Universal Service Levy (USL) which has
presently been fixed at 5% of the Adjusted Gross Revenue (AGR) of all Telecom Service Providers
except the pure value added service providers like Internet, Voice Mail, E-Mail service providers etc. In
addition, the Central Govt. may also give grants and loans. An Ordinance was promulgated on
30.10.2006 as the Indian Telegraph (Amendment) Ordinance 2006 to amend the Indian Telegraph Act,
1885 in order to enable support for mobile services, broadband connectivity, general infrastructure and
pilot project for new technological developments in rural and remote areas of the country. Subsequently,
an Act has been passed on 29.12.2006 as the Indian Telegraph (Amendment) Act 2006 to amend the
Indian Telegraph Act, 1885.
USFO has initiated action to bring mobile services within the ambit of Universal Service Obligation
Fund (USOF) activities. Under this initiative, 7387 mobile infrastructure sites are being rolled out, in the
first phase, across 500 districts and 27 states of India. This scheme will provide mobile services to
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approximately 0.2 million villages which where hitherto deprived of the same. As on 30th June 2010,
7183 shared towers have been set up under the First Phase of the scheme. The USOF of DOT has
proposed to set up about 10,128 additional towers in order to extend the mobile coverage in other
uncovered areas under the Second Phase of the Scheme.
Unified Access Services
Unified access license regime was introduced in November 2003. Unified Access Services operators are
free to provide, within their area of operation, services, which cover collection, carriage, transmission
and delivery of voice and/or non-voice messages over Licensees network by deploying circuit, and/or
packet switched equipment. Further, the Licensee can also provide Voice Mail, AudioNet services,
Video Conferencing, Videotext, E-Mail, Closed User Group (CUG) as Value Added Services over its
network to the subscribers falling within its service area on non-discriminatory basis. The country is
divided into 23 Service Areas consisting of 19 Telecom Circle and 4 Metro Service Areas for providing
Unified Access Services (UAS). The licence for Unified Access Services is issued on non-exclusive
basis, for a period of 20 years, extendable by 10 years at one time within the territorial jurisdiction of a
licensed Service Area. The licence Fee is 10%, 8% & 6% of Adjusted Gross Revenue (AGR) for Metro
and Category `A, Category `B and Category `C Service Areas, respectively. Revenue and the fee/royalty
for the use of spectrum and possession of wireless telegraphy equipment are payable separately. The
frequencies are assigned by WPC wing of the Department of Telecommunications from the frequency
bands earmarked in the applicable National Frequency Allocation Plan and in coordination with various
users subject to availability of scarce spectrum.
Internet Service Providers (ISPs)
Internet service was opened for private participation in 1998 with a view to encourage growth of
Internet and increase its penetration. The sector has seen tremendous technological advancement for a
period of time and has necessitated taking steps to facilitate technological ingenuity and provision of
various services. The Government in the public interest in general and consumer interest in particular,
and for proper conduct of telegraph and telecom services has decided to issue the new guidelines for
21
grant of licence of Internet services on non-exclusive basis. Any Indian company with a maximum
foreign equity of 74% is eligible for grant of licence.
Broadband Policy 2004 onwards
Recognizing the potential of ubiquitous Broadband service in growth of GDP and enhancement in
quality of life through societal applications including tele-education, tele-medicine, e-governance,
entertainment as well as employment generation by way of high-speed access to information and web
based communication; Government has announced Broadband Policy in October 2004. The main
emphasis is on the creation of infrastructure through various technologies that can contribute to the
growth of broadband services. These technologies include optical fibre, Asymmetric Digital Subscriber
Lines (ADSL), cable TV network; DTH etc. Broadband connectivity has been defined as Always On
with the minimum speed of 256 kbps. It is estimated that the number of broadband subscribers would be
20 million by 2010. With a view to encourage Broadband Connectivity, both outdoor and indoor usage
of low power Wi-Fi and Wi-Max systems in 2.4 GHz-2.4835 GHz band has been de-licensed. The use
of low power indoor systems in 5.15-5.35 GHz and 5.725-5.875 GHz bands has also been de-licensed in
January 05. The SACFA/WPC clearance has been simplified. The setting up of National Internet
Exchange of India (NIXI) would enable bringing down the international bandwidth cost substantially,
thus making the broadband connectivity more affordable.
The prime consideration guiding the Policy includes affordability and reliability of Broadband services,
incentives for creation of additional infrastructure, employment opportunities, induction of latest
technologies, national security and brings in competitive environment so as to reduce regulatory
interventions.
By this new policy, the Government intends to make available transponder capacity for VSAT services
at competitive rates after taking into consideration the security requirements. The service providers
permitted to enter into franchisee agreement with cable TV network operators. However, the Licensee
shall be responsible for compliance of the terms and conditions of the licence. Further in the case of
DTH services, the service providers permitted to provide Receive-Only-Internet Service. The role of
other facilitators such as electricity authorities, Departments of ITs of various State Governments,
Departments of Local Self Governments, Panchayats, Departments of Health and Family Welfare,
22
Departments of Education are very important to carry the advantage of broadband services to the users
particularly in rural areas.
Target has been set for 20 million broadband connections by 2010 and providing Broadband
connectivity to all secondary and higher secondary schools, public health institutions and panchayats by
2010.
In rural areas, connectivity of 512 KBPS with ADSL 2 plus technology (on wire) will be provided from
about 20,000 existing exchanges in rural areas having optical fiber connectivity. Community Service
Centers, secondary schools, banks, health centers, Panchayats, police stations etc. can be provided with
this connectivity in the vicinity of above-mentioned 20,000 exchanges in rural areas. DOT will be
subsidizing the infrastructure cost of Broadband network through support from USO Fund to ensure that
Broadband services are available to users at affordable tariffs.
Tariff Changes
The Indian Telecom Sector has witnessed major changes in the tariff structure. The Telecommunication
Tariff Order (TTO) 1999, issued by regulator (TRAI), had begun the process of tariff balancing with a
view to bring them closer to the costs. This supplemented by Calling Party Pay (CPP), reduction in
ADC and the increased competition, has resulted in a dramatic fall in the tariffs. ADC has been
abolished for all calls from1st October 2008.
The peak National Long Distance tariff for above 1000 Kms. in 2000 has come down from US$ 0.67
per minute to US$ 0.02 per minute in 2009. The International Long Distance tariff from US$ 1.36 per
minute in 2000 to US$ 0.16 per minute in 2009 for USA, Canada & UK. The mobile tariff for local calls
has reduced from US$0.36 per minute in 1999 to US$ 0.009 - US$ 0.04 per minute in 2009.The
Average Revenue per User of mobile is between US$ 5.06 - US$ 7.82 per month
Foreign Direct Investment (FDI)
In Basic, Cellular Mobile, Paging and Value Added Service, and Global Mobile Personal
Communications by Satellite, Composite FDI permitted is 74% (49% under automatic route) subject to
grant of license from Department of Telecommunications subject to security and license conditions.
(para 5.38.1 to 5.38.4 of consolidate FDI Policy circular 1/2010 of DIPP)
23
FDI up to 74% (49% under automatic route) is also permitted for the following: -
Radio Paging Service
Internet Service Providers (ISP's)
FDI up to 100% permitted in respect of the following telecom services: -
Infrastructure Providers providing dark fiber (IP Category I);
Electronic Mail; and
Voice Mail
Subject to the conditions that such companies would divest 26% of their equity in favor of Indian public
in 5 years, if these companies were listed in other parts of the world. In telecom manufacturing sector
100% FDI is permitted under automatic route.
The Government has modified method of calculation of Direct and Indirect Foreign Investment in
sector with caps (p 4.1 of consolidate FDI Policy circular 1/2010 of DIPP) and have also issued
guidelines on downstream investment by Indian Companies. (4.6 of consolidate FDI Policy circular
1/2010 of DIPP)
Guidelines for transfer of ownership or control of Indian companies in sectors with caps from
resident Indian citizens to non-resident entities have been issued (4.2.3 of consolidate FDI Policy
circular 1/2010 of DIPP)
Investment Opportunities and Incentives
An attractive trade and investment policy and lucrative incentives for foreign collaborations have made
India one of the world’s most attractive markets for the telecom equipment suppliers and service
providers.
No industrial license required for setting up manufacturing units for telecom equipment.
24
100% Foreign Direct Investment (FDI) is allowed through automatic route for manufacturing of
telecom equipments.
Payments for royalty, lump sum fee for transfer of technology and payments for use of
trademark/brand name on the automatic route.
Foreign equity of 74% (49 % under automatic route) permitted for telecom services - basic, cellular
mobile, paging, value added services, NLD, ILD, ISPs - and global mobile personal communications by
satellite.
Full reparability of dividend income and capital invested in the telecom sector.
Network Expansion
The telecom sector has shown robust growth during the past few years. It has also undergone a
substantial change in terms of mobile versus fixed phones and public versus private participation. The
following table shows the growth trend of telecom sector from last five years:
The number of telephones has increased from 54.63 million as on 31.03.2003 to 621.28 million as on
31.03.2010. Wireless subscribers increased from 13.3 million as on 31.03.2003 to 584.32 million as on
31.03.2010. Whereas, the fixed line subscribers decreased from 41.33 million in 31.03.2003 to 36.95
million in 31.03.2010. The broadband subscribers grew from a meagre 0.18 million to 8.76 million as
on 31.03.2010.
Trend in Tele-density
Tele-density in the country increased from 5.11% in 2003 to 52.74 % in March 2010. In the rural area
Tele-density increased from 1.49% in Mar 2003 to 24.31% in March 2010 and in the urban areas it is
increased from 14.32% in Mar 2003 to119.45% in March 2010.This indicates a rising trend of Indian
telecom subscribers.
Rural Telephony
Apart from the 200.77million fixed and WLL on March 2010 provided in the rural areas, 570000
uncovered VPTs have been provided as on March 2010. Thus, 96% of the villages in India have been
covered by the VPTs. More than 3 lakh PCOs are also providing community access in the rural areas.
25
Further, Mobile Gramin Sanchar Sewak Scheme (GSS) a mobile Public Call Office (PCO) service is
provided at the doorstep of villagers. At present, 2772 GSSs are covering 12043 villages. Also, to
provide Internet service, Sanchar Dhabas (Internet Kiosks) have been provided in more than 3500 Block
Headquarters out of the total 6337 Blocks in the country. The target of 80 million rural connections by
2010 have already met during year 2008 itself. USOF subsidy support scheme is also being utilized for
sharing wireless infrastructure in rural areas with about 19,000 towers by 2010.
Performance of telecom equipment manufacturing sector
As a result of Government policy, progress has been achieved in the manufacturing of telecom
equipment in the country. There is a significant telecom equipment-manufacturing base in the country
and there has been steady growth of the manufacturing sector during the past few years. The figures for
production and export of telecom equipment are shown in table given below:
(Rs. in crore)
Ye
ar
Produ
ction
Expor
t
20
02-
03 14400 402
20
03-
04
14000
250
20
04-
05 16090 400
20
05-
06 17833 1500
20
06-
07 23656 1898
20 41270 8131
26
07-
08
20
09-
10
48800 11000
20
01
2-
13
60000
(proje
cted
19500
(proje
cted)
Rising demand for a wide range of telecom equipment, particularly in the area of mobile
telecommunication, has provided excellent opportunities to domestic and foreign investors in the
manufacturing sector. The last two years saw many renowned telecom companies setting up their
manufacturing base in India. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur.
Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens Networks have
set up their manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile
phones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ in
Chennai. Other major companies like Foxcom, Aspcom, and Solectron etc have decided to set up their
manufacturing bases in India.
The Government has already set up Telecom Equipment and Services Export Promotion Council and
Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel,
Cisco have also shown interest in setting up their R&D centers in India. With above initiatives India is
expected to be a manufacturing hub for the telecom equipment.
Opportunities
India offers an unprecedented opportunity for telecom service operators, infrastructure vendors,
manufacturers and associated services companies. A host of factors are contributing to enlarged
opportunities for growth and investment in telecom sector:
27
An expanding Indian economy with increased focus on the services sector
Population mix moving favorably towards a younger age profile
Urbanization with increasing incomes
Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside
developed economies that are marked by saturated telecom markets and lower GDP growth rates.
Inflow of FDI into India’s telecom sector during April 2000 to Feb. 2010 was about Rs 405,460 million.
Also, more than 8 per cent of the approved FDI in the country is related to the telecom sector.
28
TCOEs Centers
29
Sr.
No.
Associate
InstituteSponsor
Work
Assigned
1IIT
Kharagpur
Vodafone Essar
& Texas
Instruments
Next
Generation
Network
(NGN) &
Network
Technology
2 IIT Delhi Bharti Airtel
Telecom
Technology &
Management
3
IISC
(Indian
Institute of
Science),
Bangalore
Aircel & Texas
instrument
Information
Security &
Disaster
Management
of
Infrastructure
4 IIT KanpurBSNL &
Alphion
Technology
Integration,
Multimedia &
Computational
Mathematics
5 IIT ChennaiReliance
Communication
Telecom
Infrastructure
& Energy
6IIT
Mumbai
Tata
Teleservices
Rural
Applications
7IIM
AhmedabadIdea Cellular
Policy,
Regulation,
Governance,
Research & Development
India has proven its dominance as a technology solution provider. Efforts are being continuously made
to develop affordable technology for masses, as also comprehensive security infrastructure for telecom
network. Research is on for the preparation of tested infrastructure for enabling interoperability in Next
Generation Network. It is expected that the telecom equipment R & D shall be doubled by 2010 from
present level of 15%. Modern technologies inductions are being promoted. Pilot projects on the existing
and emerging technologies have been undertaken including WiMax, 3G etc. Emphasis is being given to
technologies having potential to improve rural connectivity. Also to beef up R&D infrastructure in the
telecom sector and bridge the digital divide, cellular operators, top academic institutes and the
Government of India together set up the Telecom Centers of Excellence (COEs). The main objectives of
the COEs are as follows:
Achieve Telecom Vision 2010 that stipulates a definite growth model and take it beyond.
Secure Information Infrastructure that is vital for countries security
Capacity Building through Knowledge for a sustained growth.
Support Planned Predictive Growth for stability.
Reduce Rural Urban Digital Divide to reach out to masses.
Utilize available talent pool and create environment for innovation.
Management of National Information Infrastructure (NII) during Disaster
Cater the requirement of South East Asia as Regional Telecom Leader
To achieve these objectives seven Centre of Excellences in various field of Telecom have been set
up with the support of Government and the participation of private/public telecom operators as
sponsors, at the selected academic institutions of India. The details of COEs are enumerated
below: -
30
3G & Broadband Wireless Services (BWA)
The government has in a pioneering decision, decided to auction 3G & BWA spectrum. The broad
policy guidelines for 3G & BWA have already been issued on 1stAugust 2008 and allotment of spectrum
has been planned through simultaneously ascending e-auction process by a specialized agency. New
players would also be able to bid thus leading to technology innovation, more competition, faster roll
out and ultimately greater choice for customers at competitive tariffs.
The 3G will allow telecom companies to offer additional value added services such as high resolution
video and multi media services in addition to voice, fax and conventional data services with high data
rate transmission capabilities. BWA will become a predominant platform for broadband roll out
services. It is also an effective tool for undertaking social initiatives of the Government such as e-
education, telemedicine, e-health and e-Governance. Providing affordable broadband, especially to the
suburban and rural communities is the next focus area of the Department.
BSNL & MTNL have already been allotted 3G & BWA spectrum with a view to ensuring early roll out
of 3G & WiMax services in the country. They will pay the same price for the spectrum as discovered
through the auction. While, honourable Prime Minister launched the MTNLs 3G mobile services on the
inaugural function of India Telecom 2008 held on 11th December 2008, BSNL launched its countrywide
3G services from Chennai, in the southern Tamil Nadu state on 22nd February 2009.
Mobile Number Portability (MNP)
Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number when
they switch from one access service provider to another irrespective of mobile technology or from one
technology to another of the same or any other access service provider. The Government has announced
the guidelines for Mobile Number Portability (MNP) Service Licence in the country on 1 st August 2008
and has issued a separate Licence for MNP service on 20.03.2009. The Department of
Telecommunication (DoT) has already issued licences to two global companies (M/s Syniverse
31
Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India Pvt. Ltd.). For
implementing the service. MNP is to be implemented in whole country in one go by 31.10.2010
New Targets Set By the Government
1. Network expansion
900 million connections by the year 2020
2. Rural telephony
200 million rural subscribers by 2020
Reduce urban-rural digital divide from present 25:1 to 5:1 by 2015.
3. Broadband
20 million Broadband connections by 2020.
Broadband with minimum speed of 1 mbps.
Broadband coverage for all secondary & higher secondary schools and public health care centres by
the end of year 2020.
Broadband coverage for all Grampanchayats by the year 2020.
Broadband on demand is every village by 2020.
4. Manufacturing
Making India a hub for telecom manufacturing by facilitating more and more telecom specific SEZs.
Quadrupling production in 2020.
Achieving exports of 10 billion during 11th Five year plan.
5. Research & Development
Pre-eminence of India as a technology solution provider.
Comprehensive security infrastructure for telecom network.
32
8. International Bandwidth
Facilitating availability of adequate international bandwidth at competitive prices to drive ITES sector at faster growth.
Nature of Field Work
(Interviews face to face, including sample size for now is area are allocated by Airtel to each user.)
Target dates
There is no target date we have to send daily report of our field work to our project guide via email and
a weekly meeting with project mentor.
33
3 RESEARCH METHODOLOGIES
3.1.1 Research Design:
As we need to find out the scope of Manage ILP (Data Product) for SME target audience in
Mumbai town and Suburbs so the research design is exploratory in nature. The data collected is
qualitative and descriptive in nature by using survey .The study is done by following steps given below.
1.To make understand the new product of Airtel called as managed ILP to
potential customers’ was our primary objective.
2 Find out other requirement of customer such as 3G Dongles, MPLS, PRI, DSL, point to point line,
simple ILP, postpaid.DTH etc.
3 Finding out current operator from which they are taking service & detail information related to same.
4 Differentiating the market segments i.e. by Corporate, SME to potential user of Manage ILP/ILP,
DSL, for data products.
3.1.2 Data Collection Sources:
All data collected was primary data that is by on field data.
3.1.3 Data Collection Methods:
Through questionnaire and personal interview with IT Manager & Directors or proprietor of
different organization.
34
3.1.4 Data Collection Instrument (Questionnaire)
We have prepared questionnaire to find out which plan of internet does the organisation uses,
Lease internet port or Digital subscriber links along with any issue faced by them. We also gathered
name of internet service provider, and try to understand there internet setup.
3.1.5 Sampling Plan:
Nodes of building which have Airtel connection feasibility was given to us by Airtel and we were
told to cover all commercial building within one kilometre radius to that of the node & for any doubt
occurred before taking samples we were given telephone number of channel partner.
3.1.6 Sampling:
We need to fill the questionnaire from the person who deals with internet connection of his
organization that is from a person like IT Manager. or from Admin person in absents of IT Manager. So
sampling here is Judgmental Sampling Techniques. Sample size was about 15 or more a day.
3.2. Classification of Data:
Classification of data mainly done on basis of DSL/ILP user, SME Corporate, Airtel & Non Airtel
users.
35
3.3 Processing and Analysis of Data
1) Do you use internet?(Purpose: This is basic question to know about company internet use)
Internet use N.o of Org %Yes 180 90No 20 10Total 200 100
36
Manag ILP,3gDongals
PRI,GSM,Landlinee
ILP,DSL,LL
YesNo
2) Name of the internet service provider for your organizations?(Purpose: This is a question to know about competitor market present as well as to know Airtel stand in market)
Internet service provider
N.o of Org
%
Airtel45
25
Tata38
21.1
Reliance 30
16.6
Tulip 2
1.1
Mtnl55
30.5
other cable10
5.5
Total
180
100
37
AirtelTataReliance TulipMtnlother cable
3) In internet do you use broadband DSL or Lease Line or something else?(Purpose: To know target audience belonging of which segment DSL or ILP or other)
Internet used
N.o of Org
%
DSL
146
81.3
ILP31
17.5
Other 3
1.8
Total 18
10
38
0 0
DSLILPOther
4) Number of PC are you using?(Purpose: This helps us to know about the background of the company like about its employee strength)
Number of PC
N.o of Org
%
1 to 20
120
66.7
21 to 5050
27.8
greater 5010
5.6
Total
180
100
39
1 to 2021 to 50greater 50
5) Are you aware of a new product in internet lease line port called Manage internet lease port?(Purpose: To know how much customers are aware about Airtels new product?)
Awareness of Manage Internet lease port
N.o of Org
%
Yes22
12.2
No
158
87.8
Total
180
100
40
YesNo
6) Do you yourself manage internet in your organization or have outsource it to someone else? (Purpose: To understand how company deals with internet related management)
Management of internet
No. Of Org
%
Not outsource
170
94.5
Outsouce10
5.5
Total
180
100
41
Not outsourceOutsouce
7) What is the speed of your connection?(Purpose: This is technical information that helps to know what is requirement of the company like which speed have most demand for internet)
Speed of your connection
DSL
Internet Lease Port
DSL%
ILP%
512kbps 0 0 0 0
1mbps 6 9
4.1
29.1
2mbp90 7
61.1
23
greater tham 2mbps50 15
34.8
48.1
Total
146 31
100
100
42
DSL
512kbps1mbps2mbpgreater tham 2mbps
Internet Lease Line
512kbps1mbps2mbpgreater tham 2mbps
8) Any problem you are facing with your current service provider?
Problem facing with current service provider
No. of Org
%
Yes15
8.3
No 16
91
43
5.7
total
180
100
yesno
9) Problems with?(Purpose:To understand pain area of coustomer using internet)
Problems
No. of Org
%
payment and billing 3 20
connection 9 60
after sales service 3 20
Total 15 100
payment and billingconnectionafter sales service
44
4 RESULTS & INTERPRETATION:
The target audience for DSL is larger than form ILP.
DSL customers are concerned for commercial pricing than for the quality service
provided like in ILP so it is difficult to convert them into user of Manage ILP.
Mostly customers in DSL are preferring 2mbps plan which is mostly Mtnl users.
The organization depending upon third party for maintenance of its connection can be
major client for manage ILP.
45
Porter’s 5 Force Model.
Bargaining power of Buyers:
Lack of differentiation among Service Providers
Low switching costs for post-paid with availability of mobile number portability.
Bargaining power of Suppliers:
Network maintenance: Alcatel lucent, Information Technology: IBM
Call Center: Telecaller are outsourced
Threat of New Entrants
Rapid change in Technology, High Infrastructure Setup cost
Spectrum Availability issues
Huge License Fees paid to government.
Threats from substitution:
Landline, for post-paid mobile phone, but Land line dominated by MTNL.
DSL taking market for ILP, Using two service ILP provider instead of Manage ILP
Social Networking site and messenger for post & prepaid.
46
Rivalry among competitors
Cut throat Competition. There is high fix cost for Manage ILP which needs to be recover
5 CONCLUSIONS Thus we can conclude from the above data that most organization requiring speed greater than 2mbps
(i.e. around 35% from above) uses DSL as a substitute for ILP which may be due to the cost of ILP. For
example suppose an organization wants speed of 1mbps they opt for DSL 4mbps so that they can get
speed around 1mbps, which is more cost saving than going for 1mbps ILP.
5.1 Salient conclusions from the work.
Product awareness was created by us for Airtel. with that we find out what more value added service
does Airtel need which the customers’ demanded.
We have contributed in generating leads to Airtel business along with our research project and never the
less we also generated contact detail of IT Manager of the organizations we visited for Airtel data base.
47
6 LIMITATION OF THE PROJECT
1. Most of cooperate using two service provider for internet one as primary use and other as
secondary use in which our product fail them to convince about management of non Airtel service
provider.
2. Corporate giving 3rd party contract in annual maintenance of internet connection are not
interested in product.
3. Corporate using IP address for years are not willing to change their IP address due to lacking
in IP address portability.
4. In organization where there is no IT Manager only Admin person is likely to give bias
information.
5. Time constraint as in most case IT manager was available with prior appointment which use to
take time thus reducing our contact covered.
48
7 RECOMMENDATIONS
7.1 Procedure for implementation:
First we were given a corporate training for understanding the product from technical team. Then we
were given training from sales team for how to make a cold call, and make a pitch for manage ILP. But
for first few day Airtel should have send us with their sales team to get practical experience so that our
efficiency would have increase future in less time period.
7.2 Industry Recommendation:
Airtel have pan India reach but, areas which are not falling under Airtel feasibility, Airtel provide
wireless support to such remote area. We came across clients who use Airtel DSL Pan India but where
there is no feasibility of Airtel there they use some other operator for the same instead of going for
wireless. So these client faces problem of one point billing, one point compliant registration new
product called as Manage DSL. This Manage DSL can be useful to those cooperates which have pan
India need for DSL. Airtel can provide wire connection to those areas where Airtel has no feasibility by
having bilateral relation with local operator of that area and charging extra to client for this new value
added service. More research have to be done to find out the number of such target audience, than only
we can decided to launch this new product.
7.3 Expected outcome from the recommendations:
While conducting same projects next time our recommendation send to them are
expected to be implemented.
49
APPENDIX
1) Name :__________________
2) Designation :___________________
3) Contact of concerne person along with email address :_______________
4) Do you use internet?
5) Name of the internet service provider for your organizations?
6) In internet do you use broadband DSL or Lease Line or something else?
7) Number of PC’s are you using?
8) Are you aware of a new product in internet lease line port called Manage internet lease port?
9) Do you yourself manage internet in your organization or have outsource it to someone else?
10) What is the speed of your connection?
11) Any problem you are facing with your current service provider?
50
BIBLIOGRAPHY
Google was a great help in knowing about organization branches and employee strength.
Map My India & Google Map Channel Partner: was great help in locating building
Airtel site is the site where I come to know about the basic of the company and know
more about the company.
Philip Kotler The Principal of Marketing was the book helped me clearing my basics
about the marketing and make this report more value added.
51
