A

PROJECT REPORT

ON

“Retail Visibility of AIRCEL With Respect to Competitors”

A report submitted to Delhi Business School, New DelhiAs a part fulfillment of

MBA+PGP Graduate program (industry integrated) in entrepreneurship and business.

Submitted to: - Submitted by:- Director Academics Abhishek Kumar Delhi business school Roll. No. : 01 New Delhi Batch : Winter (09-11)

Semester : 3rd Internal guide: - University : Punjab Technical Ms. Kiran Malhotra University Delhi business school New Delhi

B-II/M.C.I.E.,Mathura Road, New DelhiWebsite: - www.dbs.edu.in

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PREFACE

Training, as we know, is essential to supplement theoretical knowledge with

practical one and to inculcate efficiency. Due to this reason project training in

professionally managed organization has been made an integral part of the

syllabus of MBA course.

In the above mentioned context I had the privilege of getting this practical

training at Aircel. Patna. The training was in the field of marketing

management, involving to find out market potential, market share and

recommendations for Aircel confectionery particularly in Patna.

In order to gather required information surveyed almost every nook and

corner of the markets of Patna and compiled the data.

This project report is hereby submitted for the partial fulfillment for the

award of Master in Business Administration, which will presumably prove

useful to the management of the Aircel too.

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ACKNOWLEDGEMENT

I would like to thank Mr. Amit Raj (HR Manager), Mr. Rohit Narayana

(Marketing Head), Mr. Abhishek Gupta (Marcom Head), Mr. Laxmikant

(Senior executive, Marketing), Mr. Avinish, and Mr. Pankaj Kumar for their

guidance and giving me his valuable time, support, suggestion & the

opportunity to excel and work in the field of Marketing Communication

(Marcom) which motivated me to complete my training successfully.

A well combination of theory and practice helped us in compiling this

report on “Retail visibility of Aircel with respect to competitors”.

Last but not the least I wish to thank all the Merchandiser for their

support and encouragement during the long weekends and evening that went

into completion of my project successfully.

Abhishek Kumar

MBA 3Rd SEM

Delhi Business School

3

STUDENT DECLARATION

I hereby declare that the project report entitled

“Retail visibility of AIRCEL with respect to competitors ” At “Dishnet

Wireless Limited ” Patna Submitted in partial fulfillment of the requirements

for the degree of “MBA+PGP” to Delhi business School, New Delhi , India, is

my original work and not submitted for the award of any other degree,

diploma ,fellowship, or any other similar little or prizes.

Place: New Delhi [Abhishek Kumar]

Date: Roll. NO:01

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TABLE OF CONTENTS

Executive Summary

1. Introduction

1.1 Retail visibility

1.2 Objective of the study

1.3 Scope of the study

2. Research Methodology2.1 Methodology2.2 Research design2.3 Source of data2.4 Sampling2.5 Data collection tolls2.6 Limitation of the Study

3. Overview of the Indian Telecommunication industry 4. Organization Profile

4.1 Company Profile

4.2 Our Presence

4.3 Telecom Circles

4.4 Our Branch Offices

4.5 Aircel Product

4.6 Value added services

4.7 Awards & achievements

4.8 Future Ahead

5. Data analysis

6. Findings

7. Recommendation

5

7.1 Recommendation & Suggestions

7.2 SWOT analysis For Aircel

7.3 Bibliography

7.4 Annexure

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EXECUTIVE SUMMARY

The project titled “Retail visibilty of Aircel with respect to competitors” has

been carried out for AIRCEL, Patna, Bihar. The main objective of this project

is to know the Status of the company with the competitor and how to regenerate

their confidence in the prevailing market condition. The whole summer

internship period with Dishnet Wireless Ltd (Aircel) has been full of learning

and sense of contribution towards the organization. In this project the great

emphasis is given to find out the retail visibility of Aircel with respect to

competitors, whether its better than other competitors or not?

Dishnet Wireless Ltd. (Aircel) is a telecom network providing company. The

main objective of this company is to provide the best services to their customer

in low cost as compared to their competitor. They offer more value added

service in marginal cost. Occasionally they give some offers for the benefit of

the customers and retailer and distributor. According to the study of the

markets, it is being observed that there are many players available in the

markets and some of them are really doing well but if we talk about retail

visibility of these companies, Aircel’s retail visibility is less effective than other

companies. The needs and wants of the client taken into consideration.

I hope Dishnet Wireless Ltd (Aircel), Patna, Bihar will recognize this as well

as take more references from this project report. HR department has been given

more emphasis for the study of the project because it is the only sector where all

type of Age group, Income class and different level of people are represented.

According to the market study, Patna is one of the potential markets for the

telecom service because a single person uses many SIM(network services).Due

to some drawback in the service they do like this ,If the company removes their

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drawbacks then it’s sure that the company will get great response from the

customer.

The main objective of this project is to know the drawbacks of their visibility &

services and the need and wants of the retailers of Patna. Patna is one of the

potential markets for customer but company has to give special emphasis on

retailer’s demands for merchandising.

This project will provide me the better platform to understand the History,

Growth and various other aspects of telecom companies. It will also help me to

understand the behavior of retailers, customers and distributers, regarding retail

visibility.

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Chapter-1Introduction

1.1 Introduction1.2 Objective of the Study

1.3 Scope of the study

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INTRODUCTION

Telecommunication :-

The word telecommunication was adapted from the French word

telecommunication. It is a compound of the Greek prefix tele-, meaning 'far off',

and the Latin communicates, meaning 'to share'. Telecommunication is the

transmission of signals over a distance for the purpose of communication. In

modern times, this process almost always involves the sending of

electromagnetic waves by electronic transmitters but in earlier years it may have

involved the use of smoke signals, drums or semaphore. Today,

telecommunication is widespread and devices that assist the process, such as the

television, radio and telephone, are common in many parts of the world. There

is also a vast array of networks that connect these devices, including computer

networks, public telephone networks, radio networks and television networks.

Computer communication across the Internet, such as e-mail and instant

messaging, is just one of many examples of telecommunication.

The basic elements of a telecommunication system are:

a transmitter that takes information and converts it to a signal for

transmission

a transmission medium over which the signal is transmitted

a receiver that receives and converts the signal back into usable

information

Often telecommunication systems are two-way and devices act as both a

transmitter and receiver or transceiver. For example, a mobile phone is a

transceiver. Telecommunication over a phone line is called point-to-point

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communication because it is between one transmitter and one receiver,

telecommunication through radio broadcasts is called broadcast communication

because it is between one powerful transmitter and numerous receivers.

A collection of transmitters, receivers or transceivers that communicate with

each other is known as a network. Digital networks may consist of one or more

routers that route data to the correct user. An analogue network may consist of

one or more switches that establish a connection between two or more users.

For both types of network, a repeater may be necessary to amplify or recreate

the signal when it is being transmitted over long distances. This is to combat

attenuation that can render the signal indistinguishable from noise.

The shaping of a signal to convey information is known as modulation.

Modulation is a key concept in telecommunications and is frequently used to

impose the information of one signal on another. Modulation is used to

represent a digital message as an analogue waveform. This is known as keying

and several keying techniques exist — these include phase-shift keying,

frequency-shift keying, amplitude-shift keying and minimum-shift keying.

Bluetooth, for example, uses phase-shift keying for exchanges between devices.

Retail visibility:-

Retail visibility is an important part of the marketing plan, and should have a

reasonable budget allocated - even for a retailer operating on a shoestring.

In today's competitive retail environment a retailer cannot afford to consider

merchandising as a 'frill'. Everyone is competing for the customers' dollar.

There are more choices out there for consumers than ever before.

Merchandising is more than simply the arrangement of products on the shelf. It

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is an integral component of the business image. It should be considered when

you design your logo, business cards, brochures, letterhead, packaging, and

product mix.

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OBJECTIVE OF THE STUDY

1. To identify the retail visibility of Aircel in Comparison to its

Competitors.

2. To find out the market presence of AIRCEL products in retail

outlets of, Patna and measures to improve it.

3. To find out the replacement cycle of Pop in which AIRCEL is

available.

4. To find out who take cares of POP activity.

5. To find out retailers opinion in related to the life of POP Material

and life of hard visibility.

6. To assess the distribution on the basis of number of outlets

covered, supply, Merchandiser.

7. To find out retailers opinion in relation to company specific like

replacement of POP, GSB, NON-LIT board etc.

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SCOPE OF THE STUDY

The scope of the study for management student gets to apply all their theoretical

knowledge in the company’s summer training. During training they solve the

particular problem given by the company and come to know the various things

practically

The company could take appropriate steps to increase Retail Visibility of

AIRCEL Products thus increasing the sales in Patna. The study was conducted

among Retailer outlets of Patna, Patna only and it was conducted only for a

period of two Months.

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Chapter-2

RESEACH METHODOLOGY2.1 Methodology2.2 Research design2.3 Source of data2.4 Sampling2.5 Data collection tolls2.6 Limitation of the Study

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METHODOLOGY

“Marketing research is the systematic and objective identification,

collection analysis, dissemination and use of information for the purpose of

improving decision making related to the identification and solution of

problem”.

During the course of conducting the study the information were gathered

mainly through the primary source.

Conducting field survey by taking to the retailer who is using mobile phone on

the methodology used in the survey was personal observation and interview

with retailer with the help of questionnaire.

RESEARCH DESIGN

Research design is a framework of blueprint for conducting the marketing

research project. It deals the procedure necessary for obtaining the information

needed to structure and / or solve the marketing research problem.

The two types of research are:-

1. Exploratory

2. Conclusive

The objective of exploratory research is to provide insight, into and

understanding of the problem conforming the researcher.

The objective of conclusive research is to test specific hypothesis and examine

specific relationship.

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Source of data:-

Data requires for the research work can be making available from different

sources, they could be classified in two groups:-

a) Primary source:- includes living person, in my survey primary sources

constituted of the retailer who are selling telecom product and FMCG

retail outlet.

b) Secondary data: - Includes already collected data whether published or

unpublished, such as officially data base, magazines and journals.

SAMPLING

When a small group is taken as the reprehensive of the whole, the study is

called a sampling study. Sampling allows us to concentrate our attention upon a

relatively smaller number of items and hence to devote more energy ensure that

the information collected from them is accurate. When the whole area or

Population person is contacted the method is known as Census method. In my

survey it was census method because I was assigned a job to do survey in East

Patna Zone and take to feedback of all those retails who are selling RCV’s,

EASY RECHARGE, SIM etc.

DATA COLLECTION TOOLS

The collection of data is through a

(A). Questionnaire

(B). Observation

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Questionnaire:-

o It is a piece of paper with a set of questions related to the purpose

Research, which is presented to the respondent. The questionnaire

used in my survey had close-end question.

O bservation Methods:-

o When we look at the phenomenon with some objective it is called

Observation. It is the important technique for data collection. This

Method was also accompanying survey, to know the exact position

or Responses of the respondents.

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LIMITATION OF THE STUDY

The scope of the study has been kept restricted due to time and money

Constraints.

Some question regarding the other company depends on the mood of the

respondent and at the time during which they were interviewed

The biased view of the respondents.

Some of the respondents were not aware about the facts.

Though every possible attempt was made to ensure correct results but

there may be changed of sampling error.

There is a chance of human error.

This report is based on small area of Patna and is true for Patna region

only, so this report cannot be generalized.

The result is true for the given time period and it may vary with time.

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Chapter-3

Overview of the Indian Telecommunication industry

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THE TELECOM INDUSTRY

Introduction

The Indian telecommunication industry, with about 600.69 million

mobile phone connections as of February 2010, is the third largest

telecommunication network in the world and the second largest in terms of

number of wireless connections of 563.73 million. The Indian telecom industry

is one of the fastest growing in the world and is projected that India will have

'billion plus' mobile users by 2015. Projection by several leading global

consultancies is that India’s telecom network will overtake China’s in the next

10 years. For the past decade or so, telecommunication activities have gained

momentum in India. Efforts have been made from both governmental and non-

governmental platforms to enhance the infrastructure. The idea is to help

modern telecommunication technologies to serve all segments of India’s

culturally diverse society, and to transform it into a country of technologically

aware people.

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EVALUTION OF THE INDUSTRY AND MILESTONES

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WIRELESS SERVICES IN INDIA

The Mobile telecommunications system in India is the second largest in

the world and it was thrown open to private players in the 1990s. The country is

divided into multiple zones, called circles (roughly along state boundaries).

Government and several private players run local and long distance telephone

services. Competition has caused prices to drop and calls across India are one of

the cheapest in the world. The rates are supposed to go down further with new

measures to be taken by the Information Ministry. The mobile service has seen

phenomenal growth since 2000. In September 2004, the numbers of mobile

phone connections have crossed fixed-line connections. India primarily follows

the GSM mobile system, in the 900 MHz band. Recent operators also operate in

the 1800 MHz band. The dominant players are Airtel, Aircel Uninor, Reliance

Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller

players, with operations in only a few states. International roaming agreements

exist between most operators and many foreign carriers.

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MAJOR PLAYERS AND THEIR MARKET SHARE

WIRELINE SERVICES IN INDIA

Landline service in India is primarily run by BSNL/MTNL and Reliance Info

comm though there are several other private players too, such as Touchtel and

Tata Teleservices. Landlines are facing stiff competition from mobile

telephones. The competition has forced the landline services to become more

efficient. The landline network quality has improved and landline connections

are now usually available on demand, even in high density urban areas. The

breakup of wire line market share in India as of February 2010 is given below.

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MAJOR PLAYER IN THE TELECOM INDUSTRY

BSNL

Bharat Sanchar Nigam Limited (known as BSNL, India Communications

Corporation Limited) is a state-owned telecommunication company in India.

BSNL is the sixth largest cellular service provider, with over 57.22 million

customers as of December 2009 and the largest land line telephone provider in

India. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur

Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to

reputed public sector companies in India.

BSNL is India's oldest and largest Communication Service Provider (CSP).

Currently has a customer base of 90 million as of June 2008. It has footprints

throughout India except for the metropolitan cities of Mumbai and New Delhi

which are managed by MTNL. As on March 31, 2008 BSNL commanded a

customer base of 31.55 million Wireline, 4.58 million CDMA-WLL and 54.21

million GSM Mobile subscribers. BSNL's earnings for the Financial Year

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ending March 31, 2009 stood at INR 397.15b (US$7.03 billion) with net profit

of INR 78.06b (US$ 1.90 billion). BSNL has an estimated market value of $

100 Billion. The company is planning an IPO within 6 months to offload 10%

to public in the Rs 300-400 range valuing the company at over $100 billion.

BHARTI

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is

the largest cellular service provider in India, with more than 124 million

subscribtions as of February 2010. With this, Bharti is now world’s third-

largest, single-country mobile operator and sixth-largest integrated telecom

operator. 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. The company also provides telephone services and broadband Internet

access (DSL) in top 95 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. Its network operations are provided by

Ericsson, 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).

The businesses at Bharti Airtel have always been structured into three

individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia

26

Services & Enterprise Services. The mobile business provides mobile & fixed

wireless services using GSM technology across 23 telecom circles while the

Airtel Telemedia Services business offers broadband & telephone services in 95

cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital

TV.

VODAFONE

Vodafone Essar, formally known as Hutchison Essar is a cellular operator

in India that covers 23 telecom circles in India based in Mumbai. Vodafone

Essar is owned by Vodafone 67% and Essar Group 33%. It is the second largest

mobile phone operator in terms of revenue behind Bharti Airtel, and third

largest in terms of customers.

On February 11, 2007, Vodafone agreed to acquire the controlling interest of

67% held by Li Ka Shing Holdings in Hutch-Essar for US$11.1 billion, pipping

Reliance Communications, Hinduja Group, and Essar Group, which is the

owner of the remaining 33%. The whole company was valued at USD 18.8

billion. The transaction closed on May 8, 2007. Despite the official name being

Vodafone Essar, its products are simply branded Vodafone. It offers both

prepaid and postpaid GSM cellular phone coverage throughout India with good

presence in the metros.

Vodafone Essar provides 2.75G services based on 900 MHz and 1800 MHz

digital GSM technology, offering voice and data services in 23 of the country's

23 license areas. It is among the top three GSM mobile operators of India.

27

RELIANCE

Reliance Communications, formerly known as Reliance Infocomm, along

with Reliance Telecom and Flag Telecom, is part of Reliance Communications

Ventures (RCoVL). Reliance Communications Limited founded by the late

Shri Dhiru bhai Ambani (1932-2002) is the flagship company of the Reliance

Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group

currently has a net worth in excess of Rs. 64,000 crore (US$ 13.6 billion), cash

flows of Rs. 13,000 crore (US$ 2.8 billion), net profit of Rs. 8,400 crore (US$

1.8 billion).The Equity Shares of RCOM are listed on Bombay Stock Exchange

Limited and National Stock Exchange Limited. The Global Depository Receipts

and Foreign Currency Convertible Bonds are listed on Luxembourg Stock

Exchange and Singapore Stock Exchange respectively.

TATA TELESERVICES

Tata Teleservices is part of the Tata Group. Tata Teleservices spearheads

the Group’s presence in the telecom sector. Incorporated in 1996, Tata

Teleservices was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle.

The company acquired Hughes Telecom (India) Limited [now renamed Tata

Teleservices (Maharashtra) Limited] in December 2002. With a total Investment

of Rs 19,924 Crore, Tata Teleservices has created a Pan India presence spread

across 20 circles that includes Andhra Pradesh, Chennai, Gujarat, J & K,

Karnataka, Delhi, Maharashtra, Mumbai, North East, Tamil Nadu, Orissa,

Bihar, Rajasthan, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh (E), Uttar

Pradesh (W), Kerala, Kolkata, Madhya Pradesh and West Bengal.

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Having pioneered the CDMA 3G1x technology platform in India, Tata

Teleservices has established 3G ready telecom infrastructure. It partnered with

Motorola, Ericsson, Lucent and ECI Telecom for the deployment of its telecom

network.

The company is the market leader in the fixed wireless telephony market with a

total customer base of over 3.8 million.

Tata Teleservices’ bouquet of telephony services includes Mobile services,

Wireless Desktop Phones, Public Booth Telephony and Wireline services. Other

services include value added services like voice portal, roaming, post-paid

Internet services, 3-way conferencing, group calling, Wi-Fi Internet, USB

Modem, data cards, calling card services and enterprise services. Some of the

other products launched by the company include prepaid wireless desktop

phones, public phone booths, new mobile handsets and new voice & data

services such as BREW games, Voice Portal, picture messaging, polyphonic

ring tones, interactive applications like news, cricket, astrology, etc.

Tata Indicom "Non Stop Mobile" allow pre-paid cellular customers to receive

free incoming calls.

Tata Teleservices Limited along with Tata Teleservices (Maharashtra) Limited

have a subscriber base of 36 million customers (as of April 2009) in more than

5,000 towns. Tata Teleservices has also acquired GSM licenses for specific

circles in India.

Tata Telelservices is an unlisted entity. Tata Group and group firms own the

majority of the company; NTT docomo holds 26% while investor C.

Sivasankaran holds 8%.

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IDEA

Idea Cellular is a wireless telephony company operating in all the 22

telecom circles in India based in Mumbai. It is the 3rd largest GSM Company in

India behind Airtel and Vodafone and ahead of state run player BSNL.

In 2000, Tata Cellular was a company providing mobile services in AP. When

Birla-AT&T brought Maharashtra and Gujarat to the table, the merger of these

two entities was a reality. Thus Birla-Tata-AT&T, popularly known as Batata,

was born. In 2001, the Batata triumvirate agreed to merge its operations with

the Rajeev Chandrasekhar promoted BPL Communications. The merger could

have brought in regions like Mumbai, Maharashtra, Kerala and Tamil Nadu,

which seemed to be a perfect accompaniment to what it already had. This was

critical with the bid for the fourth operator licence round the corner. However,

the engagement with BPL was broken. Then Idea set sights on RPG’s

operations in Madhya Pradesh which was successfully acquired, helping Batata

have a million subscribers, and the licence to be the fourth operator in Delhi

was clinched. In 2004, Idea (the company had by then been rechristened)

bought over the Escorts group’s Escotel gaining Haryana, Uttar Pradesh (West)

and Kerala — and licences for three more — UP (East), Rajasthan and

Himachal Pradesh. By the end of that year, four million Indians were on the

company’s network. In 2005, AT&T sold its investment in Idea, and the year

after Tatas also bid good bye to pursue an independent telecom business. And

Idea was left only with one promoter, the AV Birla group when the company’s

stock listed on the bourses in March 2007, its subscriber base was 13 million

with presence in 11 circles. In less than three years, the subscriber numbers

have more than quadrupled. The public issue was oversubscribed 50 times and

raised Rs 2,450 crore. In June 2008, Idea Cellular bought out BK Modi’s stake

30

in Spice Communications for Rs 2,700 crore adding Punjab and Karnataka

circles. Modi’s joint venture partner, Telekom Malaysia, invested Rs 7,000

crore for a 14.99% stake in Idea. Just around then, Idea’s subsidiary, Aditya

Birla Telecom sold a 20% stake to US-based Providence Equity Partners for

over Rs 2,000 crore.

The company has its retail outlets under the "Idea n' U" banner. The company

has also been the first to offer flexible tariff plans for prepaid customers. It also

offers GPRS services in urban areas.

Idea Cellular won the GSM Association Award for "Best Billing and Customer

Care Solution" for 2 consecutive years.

AIRCEL

Aircel is a mobile phone service provider in India. It offers both prepaid

and postpaid GSM cellular phone coverage throughout India. Aircel is a joint

venture between Maxis Communications of Malaysia and Apollo Hospital

Enterprise Ltd of India. Maxis has a 74% stake in Aircel and the remaining 26%

is with Apollo Hospitals. It is India’s fifth largest GSM mobile service provider

with a subscriber base of over 27.7 million, as of October 31, 2009. It has a

market share of 12.8% among the GSM operators in the country. As on date,

Aircel is present in 18 of the total 23 telecom circles (including Andhra Pradesh,

Assam, Bihar & Jharkhand, Chennai, Delhi & NCR, Himachal Pradesh, Jammu

& Kashmir, Karnataka, Kerala, Kolkata, Mumbai, North East, Orissa, Rest of

Maharashtra & Goa, Rest of Tamil Nadu, Rest of West Bengal, Uttar Pradesh

East, Uttar Pradesh West) and with licences secured for the remaining 5 telecom

circles, the company plans to become a pan-India operator by 2010.

Additionally, Aircel has also obtained permission from Department of

31

Telecommunications (DoT) to provide International Long Distance (ILD) and

National Long Distance (NLD) telephony services. It is also a category A ISP.

It is also having the largest service in Tamil Nadu.

MTS INDIA

MTS India, is a brand owned by Sistema Shyam TeleServices (SSTL).

SSTL is a joint venture company between Sistema {LSE-SSA} of Russia and

Shyam Group of India. System is the majority share holder in this joint venture

with a 73.71% equity stake, along with the Shyam Group, holding a 23.79%

stake and the rest 2.5% being public partake. SSTL has the spectrum to provide

mobile telephony services in all the 48 circles across the country. Presently

SSTL offers mobile telephony services in the Bihar-Jharkhand, Delhi, Haryana,

Karnataka, Kerala, Kolkata

Maharashtra (Pune), Mumbai, Rajasthan, Tamil Nadu and West Bengal circles.

In a recent development, SSTL tied up with Mobile TeleSystems OJSC of

Russia to bring the globally acclaimed telecom brand-MTS-to India. MTS is the

8th largest telecom brand in the world and has recently been voted the 71st

ranked brand out of the 100 top global brands in the world by Millward Brown.

32

TELECOM POLICY ENIVIRONMENT IN INDIA

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 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.

33

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.

TRAI’s 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 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.34

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) corporatised in

2000.

Spectrum Management made transparent and more efficient.

35

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.

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 (Details) for 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

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

36

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

delicensed. The use of low power indoor systems in 5.15-5.35 GHz and 5.725-

5.875 GHz bands has also been delicensed 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, Departments of Education is 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.

37

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 w.e.f. 1st 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)

38

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.

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 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 and have also issued guidelines on

downstream investment by Indian Companies.

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

Investment Opportunities and Incentives

39

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.

Automatic approval of 100 percent foreign equity, technology fee up to US $

2 million, royalty up to 5 percent for domestic sales and 8 percent for exports

in telecom manufacturing projects.

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.

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:

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.

40

Inflow of FDI into India’s telecom sector during April 2000 to March 2009 was

about Rs 275,444 million. Also, more than 8 per cent of the approved FDI in the

country is related to the telecom sector.

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 1st August 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 multimedia 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,

Honbl’e Prime Minister launched the MTNL’s 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.

41

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

License in the country on 1st August 2008 and has issued a separate License for

MNP service w.e.f. 20.03.2009. The Department of Telecommunication (Dot)

has already issued licenses to two global companies (M/s Syniverse

Technologies Pvt. Ltd. and M/s MNP Interconnection Telecom Solutions India

Pvt. Ltd.) for implementing the service.

MNP is to be implemented in Delhi, Mumbai, Maharashtra & Gujarat service

areas of Zone – 1 and Kolkata, Tamil Nadu including Chennai, Andhra Pradesh

& Karnataka service areas of Zone - 2 within six months of the award of the

license i.e. by 20.09.2009 and in rest of the service areas within one year of the

award of the license i.e. by 20.03.2010.

Quadrupling production in 2010.

Achieving exports of 10 billion during 11th Five year plan.

7. Research & Development

Pre-eminence of India as a technology solution provider.

Comprehensive security infrastructure for telecom network.

Tested infrastructure for enabling interoperability in Next Generation

Network.

Doubling the telecom equipment R&D by 2010 from present level of

15%. 42

43

Chapter-3

Organization profile

1. Company Profile

2. Aircel Presence

3. Telecom Circles

4. Our Branch Offices

5. Aircel Product

6. Value added services

7. Awards & achievements

8. Future Ahead

44

45

COMPANY PROFILE

Type Private

Founded 1999

Headquarters Chennai, India

Key people Gurdeep Singh, CEO

Industry Telecom

Parent Maxis communications (74%)

Apollo Hospital (26%)

Products Mobile Telecommunication operator

Website http://www.aircel.com

46

AIRCEL LOGO

MAXIS LOGO

47

COMPANY PROFILE

The Aircel Group is a joint venture between Maxis Communications

Berhad of Malaysia and Apollo Hospital Enterprise Ltd of India, with

Maxis Communications holding a majority stake of 74%.

Aircel commenced operations in 1999 and became the leading mobile

operator in Tamil Nadu within 18 months. In December 2003, it launched

commercially in Chennai and quickly established itself as a market leader – a

position it has held since.

Aircel began its outward expansion in 2005 and met with unprecedented

success in the Eastern frontier circles. It emerged a market leader in Assam and

in the North Eastern provinces within 18 months of operations. During this

period, the company gained a foothold in 9 circles including Chennai, Tamil

Nadu, Assam, North East, Orissa, Bihar, Jammu & Kashmir, Himachal Pradesh

and West Bengal.

The Company has currently gained a momentum in the space of telecom

in India post the allocation of additional spectrum by the Department of

Telecom, Govt. of India for 13 new circles across India. These include Delhi

(Metro), Mumbai (Metro), Andhra Pradesh, Gujarat, Haryana, Karnataka,

Kerala, Madhya Pradesh, Maharashtra & Goa, Rajasthan, Punjab, UP (West)

and UP (East).

Aircel has won many awards and recognitions. Voice and Data gave

Aircel the highest rating for overall customer satisfaction and network quality in

2006. Aircel emerged as the top mid-size utility company in Business world’s

48

‘List of Best Mid-Size Companies’ in 2007. Additionally, Tele.net recognized

Aircel as the best regional operator in 2008.

Aircel was the largest mobile phone service provider in Tamil Nadu,

India, however, it has been recently been overtaken by Airtel and Hutch with

better service and in terms of Number of Connections provided. It offers both

prepaid and postpaid GSM cellular phone coverage throughout Tamil Nadu,

Assam, NE States, Orissa, West Bengal, J&K, and Bihar & HP. It offers only

the Basic phone service, and doesn’t offer any Data services.

Aircel, now part of Maxis Communications Berhad, Malaysia, is India’s

seventh largest GSM mobile service provider with a subscriber base of over 6.2

million (over 4 million in Chennai & Tamil Nadu alone) and the fastest growing

mobile operator in the country. As on date, Aircel is present in 9 telecom circles

(Assam, Bihar, Chennai, Himachal Pradesh, Jammu & Kashmir, North East,

Orissa, Tamil Nadu and West Bengal) and with licenses secured for the

remaining 14 of the 23 telecom circles, the company is on track to become a

pan-India operator. Additionally, Aircel has also obtained the nod from

Department of Telecommunications (Dot) to provide International Long

Distance (ILD) and National Long Distance (NLD) telephony services. For

more information, please log on to www.aircel.com

Aircel Business Solutions (ABS), part of Aircel, is headquartered in

Chennai and is an ISO 9000 certified company. ABS is a registered member of

WINMAX forum – both in the Indian and International Chapters. ABS’ product

range includes a host of cutting-edge enterprise solutions such as Multi Protocol

Label Switching Virtual Private Networks (MPLS VPNs), Voice over Internet

49

Protocol (VoIP) and Managed Video Services on wireless platform including

WiMAX.

50

AIRCEL PRESENCE

51

TELECOM CIRCLES

Telecom Circles & Metro districts are responsible for providing service to

the customers. There are 24 Telecom Circles and 3 Metro districts.

1. Andaman & Nicobar Telecom Circle

2. Andhra Pradesh Telecom Circle

3. Assam Telecom Circle

4. Bihar Telecom Circle

5. Chhattisgarh Telecom Circle

6. Gujarat Telecom Circle

7. Haryana Telecom Circle

8. Himachal Pradesh Telecom Circle

9. Jammu & Kashmir Telecom Circle

10. Jharkhand Telecom Circle

11. Karnataka Telecom Circle

12. Kerala Telecom Circle

13. Madhya Pradesh Telecom Circle

14. Maharashtra Telecom Circle

15. North East-I Telecom Circle for Meghalaya, Mizoram and Tripura

16. North East-II Telecom Circle for Arunachal Pradesh, Manipur and

Nagaland.

17. Orissa Telecom Circle

18. Punjab Telecom Circle

19. Rajasthan Telecom Circle

20. Tamil Nadu Telecom Circle

21. Uttar Pradesh (East) Telecom Circle

52

22. Uttar Pradesh (West) Telecom Circle

23. Uttaranchal Telecom Circle

24. West Bengal Telecom Circle

Metro Districts

1. Kolkata Telecom District

2. Chennai Telecom District

3. Delhi telecom district

53

BRANCH OFFICES

Circle Name Postal Address

Chennai

Aircel Cellular Limited, Aircel Towers, 301, Poonamalee

Road, Kilpauk, Chennai 600 010

RoTN

Aircel Limited, no 5, T B Road (Hosur Road) Codissia

Towers, Coimbatore 642028

Assam

Dishnet Wireless Ltd. Triveni Commercial Complex, 3rd

Floor, G. S. Road, Ulubari, Guwahati-781007

North East

Dishnet Wireless Ltd., Eldorado Building, 3rd Floor, Jail

Road, Shillong 793001, Meghalaya

Jammu & Kashmir

Dishnet Wireless Ltd. Hall No 105-112 B1, North Block

Bahu Plaza Complex, Jammu-180012

Dishnet Wireless Ltd. Near Gurdwara Shaheed Bunga,

Baghat Barzulla, Srinagar-190005

HP

Dishnet Wireless Ltd. 2nd and 3rd Floor, Keonthal

Complex, Main Bazar, Khalini, Shimla – 171002

Orissa

Dishnet Wireless Ltd. 7th Floor, Block B, Fortune

Towers, Chandrasekharpur, Bhubaneshwar-751023

Bihar & Jharkhand

Dishnet Wireless Ltd. 4th Floor, Office No.415, Maharaja

Kameshwar Complex, Fraser Road(Mazharul Haque

Path), Patna – 800001

West Bengal

Dishnet Wireless Ltd. A-201 to 205, A-304, A Block, City

Centre, Durgapur-713216

Kolkata

Dishnet Wireless Ltd. Globsyn Crystal Building, 3rd

floor, Block EP, Plot No.11 & 12, Sec - 5, Salt Lake

Electronics Complex, Salt Lake City, Kolkata-700091

Delhi

Aircel Ltd., B-1, Plot No.1&2, Local Shopping Centre,

Vasant Kunj, New Delhi – 110070

Uttar Pradesh

(West)

Dishnet Wireless Ltd., A-4 & A-29, NCPL Web Tower,

Sector 9, Noida, District Gautambudh Nagar, Uttar

54

Pradesh – 201 301  

Uttar Pradesh

(East)

Dishnet Wireless Limited, Ratan Square, 3rd Floor, 20 A,

Vidhan Sabha Marg, Lucknow, Uttar Pradesh – 226 001

Andhra Pradesh

Aircel Ltd., 5th floor, CACHE Properties, Gumidelli

Commercial Complex, 1-10-39 to 44, Old Airport Road,

Begumpet, Hyderabad – 560016

Karnataka

Aircel Ltd., Municipal No.66-5-25, HM Vibha Towers,

Luskar Hosur Road, Adugodi, Bangalore – 560029

Kerala

Dishnet Wireless Ltd(Aircel), NO.9419/33/2365B,

B1,B2,B3 R R Arcade, NH 47 Bypass, Thammana (PO),

Cochin-682032

Mumbai

Aircel Ltd., Opus Centre, 47, Central Road, Opp: Hotel

Tunga Paradise, M.I.D.C., Andheri (East), Mumbai –

400093

55

AIRCEL PRODUCT

Any service provider companies provide two types of facility for the usages

1. PRE-PAID

2. POST-PAID

PRE-PAID:-PRE-PAID Define as a pre paid and then use. In this type

customer purchases the recharge coupons’ and other value added services card

from retail shops and then that can use. In the PRE-PAID if we have no

sufficient balance then we cannot make a call.

POST-PAID: POST-PAID Define as a post means first use and then paid. In

this type of facility we can make a call unlimited till the credit limit.

There are many types of facility who divert my opinion to use the Post-paid

Facility.

VALUE ADDED SERVICES

56

SERVICE

POST-PAID PRE-PAID

Pocket Internet:-

Non-stop downloads of your favorite stars' Wallpaper, latest Polyphonic

Ringtones, MP3 tones, True tones, Music Videos, Movie videos, Themes,

Movie Themes and Mobile games only on Aircel pocket internet

Caller ring back tone:-

57

Aircel introduces Dialer Tunes! Get rid of boring Tring Tring and make your callers listen to latest tunes. Dial 53000, Registration Rs.30, call Rs.3/min. Song Download Charges : Free

What is Caller Ring Back Tone?Caller Ring Back Tone (CRBT) is a special feature through which the calling party can hear a song or music instead of the default "tring tring" tone.

Aircel 55500 Service

Aircel introduces 55500 Voice Portal! Dial 55500 to download latest

ringtones, listen to latest news, and dedicate songs and your daily

horoscopes. Call charges 10 paisa per sec.

Total services on portal as follows:

Music Station

Astrology 58

Jokes

Bollywood

News

Music on call:-

Now listen to music of your choice from the list of hit numbers without any

interruption with Aircel's new "Music on Call".

No breaks, no unnecessary chatter, just good Music. So stay tuned by just

subscribing to the service.

Voice Portals:-

59

Aircel 55500 service offers you a host of never before services - from music on

your mobile to tit-bits about celebrities. All you need to do is call 55500 from

your Aircel mobile and follow the simple instructions to enter a world of

information and entertainment. The service recognizes your voice and gives

information based on the command given by you.

Music Messaging and Ringtones:-Browse through the rich selection of

music across the various categories and languages and listen to your

favorites while on the go, also you can dedicate songs with a personal

message to any Aircel number. You can download ringtones of these

songs.

We have wide collection of music based on occasions like birthdays,

valentines, Rakhi, Diwali, Holi, New Year and song collections on Latest

hits, Classic, Romantic Hits.

Multimedia Messaging Service:-

60

Multimedia Messaging Service (MMS) is a store and forward messaging

service that allows mobile subscriber to exchange multimedia messages with

other mobile subscriber. With this facility now start sending picture

(images), audio & video clips with MMS. What's more you want just get it

registered...

Subscription Services:-

61

Live astrology:-

Astrology service on short code 55315 is a voice based LIVE SERVICE,

where AIRCEL customers can call at Rs. 9/min and talk to formally

trained & experienced ASTROLOGERS.

Job Alerts:-

62

Aircel now Launches "Job Alert Service on Mobile". Tell us what you are

looking for & sit back and relax!

We will get your dream jobs to come looking for you.

Get Jobs from the best sources like naukri.com, monsterindia.com,

clickjobs.com, sulekha.com, timesjobs.com and lot more!

Devotional Voice:-

63

The Devotional Subscription service allows you to listen to full length of all the

devotional songs from the Portal. All you need to do is just dial 55508 and

subscribe to enjoy the unlimited devotional songs.

Mobile TV:-

Mobile phone over the period of time has evolved from a basic

communication device into a Multi-utility and entertainment device. This

64

evolution of the mobile phone has created varied entertainment needs

among consumers. In order to cater to such needs of consumers, we have

launched Aircel Mobile TV service wherein subscribers would be able to

watch popular TV channels on their mobile phones while on move.

GPRS:-

Now subscribers are empowered with web connectivity on their mobile phone

and can enjoy the magic of internet. Subscribers will be able to browse, check

emails on the move, view and update blogs, download entertainment &

infotainment contents from all world wide websites from their GPRS

compatible mobile phones.

Aircel Reminder:-

65

With this new reminder service, you can store important occasions/ events. The

events will be reminded to you through SMS.

COLOUR SMS

Music Stations:

Astrology

Jokes

Bollywood

News

Tips

AIRCEL HEALTH SERVICES

PLAY SCRABBLE

Search your favorites Ring tone

Bengali Ring tones

66

Voice Mail Service

Save Your Contacts

Healthy Living Tips

SIM browser services

Dictionary

Funny Logos and Pictures

AWARDS AND ACHIEVEMENTS67

Since its foundation in 1999 and the company has gone from strength to

strength and by late 2006, company served some 4 million subscribers in

Chennai, Tamil Nadu and Northern and Eastern India.

Aircel network cover more than 135 towns and over 1500 Kms of state

and national highways in the Bihar circle and the network is being rolled

out with 2-MSCs, 7-BSCs and 750 –BTS to ensure the seamless

connectivity.

Aircel also established a world class 24*7 Soft Switch / IP Based Call

Center at Patna.

Aircel has recently been honored as the No.1 operator across all metro

circles for customer satisfaction by Voice and Data magazine’s survey in

2008.

Currently, Aircel has a marked presence in the North and North East

circles of the country including Rest of West Bengal, Orissa, Sikkim,

Manipur, Jammu and Kashmir, Himachal Pradesh and Bihar.

68

Aircel had acquired RPG Cellular in the Chennai circle in December,

2003, and since then the cellular service provider has registered a

whopping 117.8% growth in its subscriber base.

Overall Mobile satisfaction survey 2007-IDC

2008 Best Regional operator Award- Tele.net Publication.

Overall Mobile satisfaction survey 2006- Voice and Data

FUTURE AHEAD

Aircel has a good future ahead, being one of the most dominant operators in

South India. The company has planned for investing a handsome amount of

money for developing the infrastructure in the near future. But the future ahead

is not going to be cakes walk for Aircel because telecom giants like BSNL,

Airtel, Vodafone, etc. are in front of it. The company needs to think and take

appropriate action for betterment. With the pool of talented and hard working

employees, it is not that tough for Aircel to become one of the major players in

telecom in the coming future.

69

Chapter-4

DATA ANALYSIS

70

DATA ANALYSIS

Q1. What is the replacement cycle of all operators?

Day/ Brand (a)Aircel (b)

Idea

(c)

Voda

(d)

Airtel

(e)

Reliance

(f)

Uninor

(a) 2 days 37 35 16 23 42 27

(b)3 days 67 53 47 62 73 63

(c) 4- 5 days 33 42 54 49 25 42

(d) More than

5 days

12 20 33 16 10 18

A) AIRCEL B)IDEA C) VODA D) AIRTEL E) RELIANCE F) UNINOR0

10

20

30

40

50

60

70

80

(A) 2 daysb) 3 daysc). 4 -5 daysd). More than 5 days

Analysis:- It was observed that Reliance dominated in terms of replacement

cycle of POP.

Q2. What is the minimum quantity displayed by each company?

71

Quantity/Brand (a)Aircel (b)

Idea

(c)

Voda

(d)

Airtel

(e)

Reliance

(f)

Uninor

(a) 1 9 25 23 32 7 5

(b) 2 81 80 72 86 92 58

(c) 3 60 37 32 21 29 73

(d) More

than 3

0 8 33 11 22 14

A) AIRCEL B)IDEA C) VODA D) AIRTEL E) RELIANCE F) UNINOR0

10

20

30

40

50

60

70

80

90

100

a) 1b) 2c) 3d) More than 3

Analysis:- :- It was observed that Uninor dominated in terms of minimum

quantity display for retail visibility but it was also seen that the retail visibility

was being dominated by the presence of Aircel followed by the Airtel And

Vodafone.

Q3. What is the life of pop material?

72

Day/Brand (a)Aircel (b)

Idea

(c)

Voda

(d)

Airtel

(e)

Reliance

(f)

Uninor

(a) 2 Days 54 45 43 43 25 14

(b) 3 days 78 63 68 70 64 38

(c) 4 days 12 22 25 23 43 62

(d) More

than 4

days

6 10 14 14 18 36

A) AIRCEL B)IDEA C) VODA D) AIRTEL E) RELIANCE F) UNINOR0

10

20

30

40

50

60

70

80

a) 2 daysb) 3 daysc) 4 daysd) more than 4 days

Analysis:- According to the below table, It can be seen that the life of Uninor

and reliance’s POP are more better than Aircel.

Q4. Who takes care of POP activities?

(a) Merchandiser (b)FOSNo of Outlets 141 9

73

94%

6%

No of outlets

a) merchandiserb) FOS

Analysis:- According to the below table, It can be seen that 94% outlet

Merchandiser take care of Pop activities And only 6% Fos take care of Pop

activities.

Q5. What is the life of hard visibility?

Timing/Brand (a)Aircel (b)

Idea

(c)

Voda

(d)

Airtel

(e)

Reliance

(f)

Uninor74

(a) Not

available

45 43 51 29 78 30

(b) Less than 6

months

6 25 33 21 23 82

(c) 6-12 Months 67 78 59 51 25 38

(d) More than 1

Year

22 8 7 49 14 0

A) AIRCEL B)IDEA C) VODA D) AIRTEL E) RELIANCE F) UNINOR0

10

20

30

40

50

60

70

80

90

a) Not availableb) less than 6 monthsc) 6-12 monthd) More than 1 year

Analysis:- According to the below table, It can be seen that Aircel’s life of hard

visibility is less than Airtel but more than other competitor.

Q6. Which display of retail visibility is most durable?

75

a) POPs b) Sinages c) OthersNo Of Retailers 32 80 38

21%

53%

25%

No of Retailersa) Pops b) Sinages c) Others

Analysis:- According to table 54% retailers believe in singage,25% retailers

believe in Pops and 21 % retailers believe in Others like Wall painting for

display of retail visibility is most durable.

Q7. In your view which brands retail visibility is better (Rank them)?

76

Figure7:- Showing the Brand retail visibility of the various telecom service providers according to Retailer opinions.

Rank1 Rank2 rank3 rank4 rank5 rank6 rank7 rank80

5

10

15

20

25

30

35

40

45

50

A) AIRCELB) IDEAC) VODAFONED) AIRTELE) RELIANCEF) UNINORg) DOCOMOH) Others

Analysis:- it was observed that Uninor and reliance dominated in terms of

Retail visibility of the market under survey was covered with logos, banners,

hoardings and other outdoor/indoor advertising media provided by the

company.

Q8. According to you, how company can make its presence better on retail outlet?

(a) On

shop

(b) In shop

Brandi

(c) Both

(a)

(d)Neither(a) or

77

Brand

ing

ng and

(b)

nor (b)

No of

Outlets

70 20 60

Figure 8:-

a). On shop branding47%

b) Inshop branding13%

c) both (a) and (b)40%

No. of Outlet

Analysis:- According to the below table, we can see that 47% Retailers are

liking On shop branding, Only 13 % retailers are liking In shop branding and $0

% retailers are liking On shop and in shop branding.

78

Chapter-5

FINDINGS

SUMMARY OF FINDINGS: 79

The retail Visibility of Aircel was not up to the level. It lacked

significantly Reliance and Uninor In terms of Visibility at the retail

Outlets.

Some of the Merchandisers are not working their level best due to the

absence of proper incentives for them and frequent changes in their

BEAT plans often irritated them.

The products are easily available in the market for consumers

Marketing materials (posters, danglers, pamphlets, etc...) being provided

to Merchandiser is not distributed properly.

There had been a lot of biasness and irregularity in the distribution of

Non-lit and Glow sign Boards to the retailers.

Retailers are not interesting in retail visibility of Aircel Due to proper gift

or Incentive because some companies are providing Gift or incentive for

the Own retail visibility.

I observed that most retailers are not satisfied with the marcom.

80

Chapter -6

Recommendation

6.1 Recommendation & suggestions

6.2 SWOT analysis For Aircel

6.3 Bibliography

6.4 Annexure

RECOMMENDATIONS AND SUGGESTIONS: 81

Company should get involved in forceful advertisement policy like Uninor

and Reliance.

The distributor should get involved in the hiring and recruitment of

Merchandiser.

The Merchandiser visit should be regularly checked by the company.

Advertising should be done on television and radios also specially on those

channels which are being watched regularly by customers.

Proper remuneration should be provided to the Merchandiser from behalf of

company to those who are working well.

The company should always keep in mind the kind of competitors it is facing

and construct its product in the similar fashion to satisfy its customers.

Marcom department should make more effective & efficient in ground level

The company should advertise its products and services on a regular basis.

There should must be better visibility for awareness of tariff plan and new

scheme of company.

Regular meets should be organized with the distributors as well as the

retailers so that all the complaints or grievances of both the parties can be

resolved and proper feedback can be obtained from them.

Company should provide gift or Incentive to the retailer for creating Good

retail visibility.

SWOT ANALYSIS FOR AIRCEL

82

AIRCEL is emerging as one of the Fastest expanding mobile service

provider in india.bit if we have look at the circulation figures of different

service providers, it can be observed that there isn’t huge difference in their

sale and advertisement..More or Less, these entire telecom service providers

enjoy a comfortable position and have a good stronghold on the cellular

industry.

So if the company wants to have a major portion of the market and emerge

as a leading telecom service provider of India, It should identify is internal

strength telecom service provider of India, it should identify its internal

strengths and weakness and match them with the opportunities and threats of

the external environment.

Strengths:-

Strong presence in the cellular industry, rapidly emerging as a market

leader

Fast expanding distribution network

use of latest technology in providing the service

Highly skilled and committed personnel with strong team work.

Present in all the metropolitan cities and other important cities of the

country.

Weakness:-

83

Lees penetration in small towns and villages where maximum number of

potential customer lives

Comparatively high priced products/service than its competitors.

Lack of aggressive advertising.

Opportunities:-

Unique opportunity to tap into one of the world’s fastest growing

economics and mobiles telecommunications market space.

Ability to expand into other parts of the country and subsequently acquire

new licenses to operate on the all circles.

Tap the other telecommunication service market like landline facilities &

broadband d internet.

Threats:-

Competitive operating landscape with the large and mid-size players

having advantage of

Market Leadership

Economies of scale and

stronger network capacity

regulatory hurdles, such as future allocation of spectrum and license,

which may not favor the foreign partner Maxis communication berhad

of Malaysia

84

Network capacity expansion to consume sizeable amount of profit at the

initial stages, with high financing costs.

Bibliography

85

BOOKS:

1) Research Methodology

Author: Pratap Keshari Khatoi

C.R. Kothari

2) Marketing Management

Author: C.N Sontakki

Philip Kotler

3) Essentials of marketing

Author: B.A.V Sharma

Magazine and Journals

(1) Business and Management chronicles

(2) The Times of India

(3) Economics Times

(4) Business World

WEBSITES :-

(1) www.google.co.in

(2) www.aircel.co.cin

Annexure

86

Sample of the questionnaire as provide by the company for the purpose of market survey:

Comprehensive study of retail visibility of Aircel vs. competitors

Owner Name. ______________________

Outlet Name & Add.__________________

Contact no. ______________________ ______________________

Q1. What is the replenishment cycle of all operators?

a). Aircel b). Idea c). Voda d). Airtel e).Reliance f).Uninor

Q2. What is the minimum quantity displayed by each company

a). Aircel b). Idea c ). Voda d ). Airtel e).Reliance f).Uninor

Q3. What is the life of POP MATERIAL?

a). Aircel b). Idea c ). Voda d ). Airtel e).Reliance f).Uninor

Q4. Who takes care of pop activities?

a). Merchandiser b). FOS

Q5. What is the life of hard visibility?

a). Aircel b). Idea c ). Voda d ). Airtel e).Reliance f).Uninor

Q6. Which display of retail visibility is most durable?

a). Pops b). Sinages c). Others

Q7. In your view which brands retail visibility is better? (Rank them)

87

a).Aircel b). Airtel c). Vodafone d). Docomo e). Uninor

f). Reliance g). Idea h). Others

……. ..…... ..….. ..….. ..….. ..….. ..….. ..…..

Q8. According to you, how company can make its presence better on retail outlet?

a). Through better on shop branding, b). Through better in shop branding,

c). Both (a) and (b), d). Neither (a) nor (b).

Q6. Do the visibility tools of Aircel needs innovation?

____________________________________________________________________________________________

Merchandiser Retail Visibility

S.N. Company Name Poster Leaflet

A4 Sheeter Dangler Others G.S.B/In shop

Non- lit Flenge Others

1. Aircel

2. Airtel

3. Reliance

4. Vodafone

5. Docomo

6. Uninor

7. Idea

8. Others

88

89

90