SUMMER PROJECT REPORT On New retailer mapping for airtel in Bhopal city. FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION 2009-2011 Contents Introduction Corporate structure Objective Methodology Airtel services Objectives Refrences [pic] INTRODUCTION Incorporated on July 7, 1995, Bharti Airtel Ltd is a division of Bharti Enterprises. The businesses of Bharti Airtel are structured into two main strategic groups – Mobility and Infotel.
The Mobility business provides GSM mobile services in all 23 telecommunications circles in India, while the Infotel business group provides telephone services and Internet access over DSL in 15 circles. The company complements its mobile, broadband, and telephone services with national and international long-distance services. The company also has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.
Bharti Tele-Ventures provides end-to-end data and enterprise services to corporate customers by leveraging its nationwide fibre-optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station. All of Bharti Tele-Ventures’ services are provided under the Airtel brand. As of September 2005, Bharti Tele-Ventures was the only company to provide mobile services in all 23 telecom circles in India. By the end of October 2005, Bharti Tele-Ventures was serving more than 14. 4 million GSM mobile subscribers and 1. 10 million broadband and telephone (fixed line) customers. The equity shares of Bharti Tele-Ventures are currently listed on the National Stock Exchange of India Ltd (NSE) and the Stock Exchange, Mumbai (BSE). As of September 30, 2005, the main shareholders of Bharti Tele-Ventures were: Bharti Telecom Ltd (45. 65%), a subsidiary of Bharti Enterprises; Singapore Telecom (15. 69%), through its investment division Pastel Ltd; and, Warburg [pic] Pincus (5. 65%), through its investment company Brentwood Investment Holdings Ltd).
Other shareholders with more than a 1% stake were: Citi Group Global Markets Mauritius Pvt Ltd (2. 99%); Europacific Growth Fund (2. 04%); Morgan Stanley & Co International Ltd (1. 93%); CLSA Merchant Bankers Ltd A/C Calyon (1. 33%); Life Insurance Corporation of India (1. 34%); and, The Growth Fund of America Inc (1. 11%). Sunil Bharti Mittal, the founder-chairman of Bharti Enterprises (which owns Airtel), is today, the most celebrated face of the telecom sector in India. He symbolizes the adage that success comes to those who dream big and then work assiduously to deliver it.
Sunil Bharti Mittal began his journey manufacturing spare parts for bicycles in the late 1970s. His strong entrepreneurial instincts gave him a unique flair for sensing new business opportunities. In the early years, Bharti established itself as a supplier of basic telecom equipment. His true calling came in the mid 1990s when the government opened up the sector and allowed private players to provide telecom services. Bharti Enterprises accepted every opportunity provided by this new policy to evolve into India’s largest telecommunications company and one of India’s most respected brands.
Airtel was launched in 1995 in Delhi. In the ensuing years, as the Airtel network expanded to several parts of India, the brand came to symbolise the very essence of mobile services. Product Airtel provides a host of voice and data products and services, including high-speed GPRS services. Airtel also offers a wide array of ‘postpaid’ and ‘prepaid’ mobile offers, with a range of tariff plans that target different segments. A comprehensive range of value-added, customized services are part of the unique package from Airtel. The company’s products reflect a desire to constantly innovate.
Some of these are reflected in the fact that Airtel was the first to develop a ‘single integrated billing system’ [pic] Airtel comes to you from Bharti Airtel Limited – a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 21 million satisfied customers. Bharti Enterprises has been at the forefront of technology and has revolutionized telecommunications with its world class products and services.
Established in 1976, Bharti has been a pioneering force in the telecom sector with many firsts and innovations to its credit. Bharti has many joint ventures with world leaders like Singtel (Singapore Telecom); Warburg Pincus, USA; Telia, Sweden; Asian infrastructure find, Mauritius; International Finance Corporation, USA and New York Life International, USA. Bharti provides a range of telecom services, which include Cellular, Basic, Internet and recently introduced National Long Distance. Bharti also manufactures and exports telephone terminals and cordless phones.
Apart from being the largest manufacturer of telephone instruments in India, it is also the first company to export its products to the USA. Airtel’s journey to leadership began in Delhi in 1995. Since then, Airtel has established itself across India in sixteen states covering a population of over 600 million people. Airtel will soon cover the entire country through a process of acquisitions and green field projects. With a presence in over 1,400 towns, Airtel today has the largest network capacity in the country.
In the last nine years Airtel has achieved many firsts and unique records: it was the first to launch nationwide roaming operations, it was the first to cross the one million and the five million customer marks. It was also the first to launch services overseas. There are other ‘firsts’ credited to Airtel – many of them in the area of innovative products and services. Today, Airtel innovates in almost everything that it presents to the market. [pic] An excellent example is Easy Charge – India’s first paperless electronic recharging facility for prepaid customers.
As evidence of its fine record, Airtel has also been conferred with numerous awards. It won the prestigious Techies Award for ‘being the best cellular services provider’ for four consecutive years between 1997 and 2000 – a record that is still unmatched. And in 2003, it received the Voice & Data Award for being ‘India’s largest cellular service provider’, amongst others. As part of its continuing expansion, Airtel has invested over Rs. 1,065 billion in creating a new telecom infrastructure. In 2003/04, Bharti Tele-Ventures earned a gross profit of Rs. 16 billion on revenues of Rs. 50 billion.
Corporate Structure [pic] [pic] [pic] OBJECTIVE The Indian communications scenario has transformed into a multiplayer, multi product market with varied market size and segments. Within the basic phone service the value chain has split into domestic/local calls, long distance players, and international long distance players. Apart from having to cope with the change in structure and culture (government to corporate), Airtel has had to gear itself to meet competition in various segments – basic services, long distance(LD), International Long Distance (ILD), and Internet Service Provision (ISP).
It has forayed into mobile service provision as well. Objective of study are: ? To open new outlets for Airtel in respected areas. ? New area mapping for Airtel in Bhopal city. [pic] METHODOLOGY PRIMARY DATA SOURCES ? Experiment ? Observation SECONDARY SOURCE ? Internet ? Newspaper ? Magazines ? Others [pic] Airtel Services Enterprise Services is India’s leading provider of communications services to large Enterprise and Carrier customers.
We own a state-of-the-art national and international long distance network infrastructure, enabling us to provide connectivity services both within India and connecting India to the world. Our national long distance infrastructure comprises of 126,357 Route km’s of optical fibre, with over 4,488 Points of Presence. We have over 1,700 Points of Interconnect (POIs) with the local exchanges, providing a pan India reach. We have made significant investments in new submarine cable systems, extending our reach all across the globe with over 225,000 Route km’s, covering 50 countries across 5 Continents.
We serve as the single point of contact for all telecommunication needs for corporate customers by providing a full suite of communication services across data, voice, network integration, and managed services. We are regarded as the trusted communications partner to India’s leading organizations, helping them to meet the challenges of growth. In order to enhance Internet user experience in the Internet market space we have strategically partnered with Limelight Networks for Global Content Delivery Networks.
The Partnership offers our business customer access to Limelight Networks 25 Delivery Centres and 900 last mile networks across the globe. We have also forayed into the Media & Entertainment industry with the launch of Digital Media Business, enabling a clear demand for secure digital distribution medium across multiple platforms, positioning India as an innovation hub for global content and format delivery. [pic] Digital TV Services Airtel Digital TV has a base of over 2. 5 million customers, adding a sizeable number to this base every month and growing from strength to strength.
Our distribution reach spans the length and breadth of the country. We are present in all four regions across the country, available in over 5,000 towns and 15,000 villages. Our Distribution & Customer Service expertise helps us to serve customers in even the most remote parts of the country. This coupled with our State of the art technology & constant product innovation makes us the first choice for any prospective customer, further substantiated by the fact that Airtel Digital TV has been acquiring one out of every four new customer additions in the DTH Industry in the last 3 quarters.
Apart from a superior viewer experience we offer exciting pay per view content and interactive services. Recently we have launched Airtel digital TV Recorder wherein, for the first time in India, customers will be able to record live TV through their mobile phones. This is the first true convergence of TV Screen with Mobile screen in India. Passive Infrastructure Services Bharti Infratel provides passive infrastructure services on a non-discriminatory basis to all telecom operators in India. Bharti Infratel deploys, owns and manages passive infrastructure in 11 circles of India.
Infratel also holds 42% share in Indus Towers (a Joint Venture between Bharti Infratel, Vodafone and Idea Cellular). Indus operates in 16 circles (4 circles common with Infratel, 12 circles on exclusive basis) Bharti Infratel has 30,568 towers in 11 circles, excluding the 35,066 towers in 12 circles for which the right of use has been assigned to Indus with effect from January 1, 2009. Indus Towers has a portfolio of 102,938 towers including the towers under right of use [pic].
Airtel is committed to bring Seychelles the best in telecommunications. The strength behind Airtel is its parent company Bharti Enterprises. Bharti Enterprises is one of India’s leading business groups with interests in telecom, agri business, insurance and retail. Bharti Airtel, India’s leading integrated telecom company has been at the forefront of the telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has been a pioneering force in the telecom sector and today enjoys a strong nationwide presence.
The other businesses in the group are Beetle, communication and media devices, Bharti AXA, a financial services JV with AXA of France, and Bharti Del Monte India, a joint venture with Del Monte to offer fresh and processed fruits and vegetables in the domestic as well as international markets. Bharti has recently forayed into the retail sector with its subsidiary Bharti Retail. It has also entered into a joint venture with Wal-Mart for setting up the supply chain, logistics and cash and carry to support the burgeoning retail market in India. Telecom Seychelles Limited
Telecom Seychelles Limited was incorporated on October 24, 1997. Granted a license by the Government of Seychelles, Telecom Seychelles provides comprehensive telecommunications services such as Fixed Line Telephone, GSM Mobile telephony, Internet Services, Ship to Shore Services Satellite telephony and a host of value added services including VSAT Services and International Gateway for International Traffic. [pic] Telecom Seychelles (Limited) also known as “Airtel” is the leading comprehensive telecommunications services providers with over 55% market share of mobile market in Seychelles.
Airtel is the only operator to provide 3G HSDPA mobile services in selected area and high speed EDGE mobile network all over main islands of Seychelles. It complements its mobile, mobile broadband & telephone services with national and international long distance services. Airtel also offers high speed Internet access over its 3G HSDPA/ EDGE mobile network anywhere in Seychelles instantly. The company also has latest wire line core network supplied by Ericsson to offer ISDN/DSL services along with digital / IP PABX’s to cater wire line/VPN communication need of our client)(s).
Airtel provides reliable end-to-end data and enterprise services to the corporate customers by leveraging its nationwide fiber optic/SHD microwave backbone, last mile connectivity in fixed-line and mobile circles, VSATs, and international bandwidth access through the gateways and landing station. Business Divisions Mobile Services -We offer mobile services using GSM technology in India, Sri Lanka and now in Bangladesh. We have the largest customer base in India in the wireless segment. We had 127,619,314 mobile customers with a Customer Market Share (CMS) of 21. % in India, as on March 31, 2010. We offer post-paid, pre-paid, roaming and value added services through our extensive sales and distribution channel covering 1. 47 million outlets. Our network is present in 5,091 census towns and 438,933 non-census towns and villages in India, thus covering approximately 84. 2% of the country’s population. [pic] Airtel Sri Lanka has over a million customers, having a presence in 16 administrative districts of Sri Lanka. The company has launched 3. G services in the major towns and has created a wide distribution network comprising of 23 distributors and 15,000 retailers across the country. Airtel has started telecom operations in Bangladesh with the acquisition of a 70% stake in Warid Telecom, Bangladesh. It offers mobile services across 64 districts of Bangladesh with a distribution network of 124 distributors and 34,000 retailers across the country, catering to a sizeable customer base. Bangladesh, with a population of over 160 million and teledensity of 32% is a very promising market for telecom services.
Telemedia Services – We provide broadband (DSL), data and telephone services (fixed line) in 89 cities with growing focus on the various data solutions for the Small & Medium Business (SMB) segment. We had 3,066,858 customers of which 42. 3% were subscribing to broadband / internet services, as on March 31, 2010. Our product offerings in this segment include installation of fixed-line telephones providing local, national and international long distance voice connectivity and broadband Internet access through DSL.
We remain strongly committed to our focus on the SMB segment by providing a range of customised Telecom/IT solutions and aim to achieve revenue leadership in this rapidly growing segment of the ICT market. The strategy of our Telemedia Services business unit is to focus on cities with high revenue potential. [pic] Enterprise Services is India’s leading provider of communications services to large Enterprise and Carrier customers.
We own a state-of-the-art national and international long distance network infrastructure, enabling us to provide connectivity services both within India and connecting India to the world. Our national long distance infrastructure comprises of 126,357 Route km’s of optical fibre, with over 4,488 Points of Presence. We have over 1,700 Points of Interconnect (POIs) with the local exchanges, providing a pan India reach. We have made significant investments in new submarine cable systems, extending our reach all across the globe with over 225,000 Route km’s, covering 50 countries across 5 Continents.
We serve as the single point of contact for all telecommunication needs for corporate customers by providing a full suite of communication services across data, voice, network integration, and managed services. We are regarded as the trusted communications partner to India’s leading organizations, helping them to meet the challenges of growth. In order to enhance Internet user experience in the Internet market space we have strategically partnered with Limelight Networks for Global Content Delivery Networks.
The Partnership offers our business customer access to Limelight Networks 25 Delivery Centres and 900 last mile networks across the globe. We have also forayed into the Media & Entertainment industry with the launch of Digital Media Business, enabling a clear demand for secure digital distribution medium across multiple platforms, positioning India as an innovation hub for global content and format delivery. [pic] Airtel Digital TV has a base of over 2. 5 million customers, adding a sizeable number to this base every month and growing from strength to strength.
Our distribution reach spans the length and breadth of the country. We are present in all four regions across the country, available in over 5,000 towns and 15,000 villages. Our Distribution & Customer Service expertise helps us to serve customers in even the most remote parts of the country. This coupled with our State of the art technology & constant product innovation makes us the first choice for any prospective customer, further substantiated by the fact that Airtel Digital TV has been acquiring one out of every four new customer additions in the DTH Industry in the last 3 quarters. pic] [pic] Survey Questionnaire NAME: ADDRESS: OCCUPATION: Cellular services used: 1. How many AIRTEL users in your phone book? a) Less than 30% or 30% – 70% b) More than 70% 2. Do you keep Airtel recharge vouchers? a) Yes b) No 3. Would you like to sell Airtel recharge vouchers? a) Yes b) No 4. Why you don’t want to sell Airtel recharge vouchers? a) Yes b) No 5. Are you satisfied with Airtel services? a) Less than 30% or 30% – 70% b) More than 70% [pic] SWOT Analysis Strengths Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular provider in India, and also supplies broadband and telephone services – as well as many other telecommunications services to both domestic and corporate customers. • Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia – and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world. • The company has covered the entire Indian nation with its network.
This has underpinned its large and rising customer base. Weakness • An often cited original weakness is that when the business was started by Sunil Bharti Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field. • Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally. The fact that the Airtel has not pulled off a deal with South Africa’s MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature. [pic] Opportunities • The company possesses a customized version of the Google search engine which will enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google. • Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market.
The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions. • Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices – for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns. The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable – using its ‘Matchbox’ strategy. • Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers.
This new business will control more than 60% of India’s network towers. IPTV is another potential new service that could underpin the company’s long-term strategy. [pic] Threat • Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a 5. 6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors. The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa’s MTN in May 2008. This opened the door for talks between Reliance Communication’s Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market. Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market. [pic] SUGGETIONS 1. Provide adequate training to the sales man. 2. User manuals and the plan’s pamphlets should be printed in Hindi. 3. Sales promotion should be more intense. 4. Issue identity cards to the salesman. Introduce higher denomination RCV. Truly dedicated & Motivated sales man should be selected [pic] Refrences WEBSITE: http://www. airtel. in www. google. com www. wikipedia. com [pic] Express yourself
